Federal Reserve Bulletin, 2000-03
Volume 86 • Number 3 • March 2000 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 161 MONETARY POLICY REPORT TO THE and the modified methods affect data beginning CONGRESS in 1992. The production index for the third quarter of The U.S. economy posted another exceptional 1999 is at 137.7 percent of output in 1992, performance in 1999. The ongoing expansion compared with 135.2 percent reported before appears to have maintained strength into early the annual revision, and the capacity index is 2000 as it set a record for longevity, and—aside 170.7 percent of output in 1992, compared with from the direct effects of higher crude oil 167.9 percent reported previously. As a result, prices—inflation has remained subdued, in the rate of industrial capacity utilization was marked contrast to the typical experience during revised up 0.1 percentage point, to 80.7 percent previous expansions. The past year brought for the third quarter of 1999. additional evidence that productivity growth has improved substantially since the mid-1990s, boosting living standards while helping to hold 206 TREASURY AND FEDERAL RESERVE down increases in costs and prices despite very FOREIGN EXCHANGE OPERATIONS tight labor markets. During the fourth quarter of 1999, the dollar To maintain the low inflation environment depreciated 3.7 percent against the yen and that has been so important to the sustained health appreciated 6.2 percent against the euro. On an of the current expansion, the Federal Open Mareffective trade-weighted basis, the dollar appreket Committee has implemented four quarterciated 0.8 percent. The U.S. monetary authoripoint increases in the intended federal funds rate ties did not intervene in the foreign exchange since mid-1999; the most recent of these came at markets during the quarter. the beginning of February 2000. In total, the federal funds rate has been raised 1 percentage point, although, at 53A percent, it stands only 212 INDUSTRIAL PRODUCTION AND CAPACITY LA point above its level just before the autumn UTILIZATION FOR JANUARY 2000 1998 financial market turmoil. At its most recent Industrial production increased 1.0 percent in meeting, the FOMC indicated that risks appear January, to 141.5 percent of its 1992 average, to remain on the side of heightened inflation after advances of 0.3 percent in November and pressures, so it will need to remain especially 0.4 percent in December. The rate of capacity attentive to developments in this regard. utilization for total industry rose 0.5 percentage point, to 81.6 percent, more than 1 percentage point above its level in January 1999. 188 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION: RECENT DEVELOPMENTS AND THE 1999 REVISION 215 STATEMENT TO THE CONGRESS In late 1999, the Federal Reserve published Alan Greenspan, Chairman, Board of Governors revised measures of industrial production, of the Federal Reserve System, testifies in the capacity, and capacity utilization for the period hearing on his renomi nation as Chairman that January 1992 through October 1999. The the Federal Reserve faces considerable chalupdated measures reflect both the incorporation lenges in carrying out its responsibilities for of newly available, more comprehensive source both the financial system and the overall econdata typical of annual revisions and the intro- omy and that what success it has had in carrying duction of improved methods for compiling a out its legislated responsibilities in recent few series, including computer and office equip- decades derives from many sources. He further ment and motor vehicles. The new source data testifies that the Federal Reserve's ability to are for recent years, primarily from 1997 on, meet the legislative mandates of the Congress Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
rests ultimately on the strength of the institu- A1 FINANCIAL AND BUSINESS STATISTICS tions of the Federal Reserve and the people who These tables reflect data available as of inhabit them (Testimony before the Senate Com- January 26, 2000. mittee on Banking, Housing, and Urban Affairs, January 26, 2000). A3 GUIDE TO TABULAR PRESENTATION 217 ANNOUNCEMENTS A4 Domestic Financial Statistics Action by the Federal Open Market Committee A42 Domestic Nonfinancial Statistics and an increase in the discount rate. A50 International Statistics Modifications to the disclosure procedures of the Federal Open Market Committee. A63 GUIDE TO STATISTICAL RELEASES AND SPECIAL TABLES Appointments of new members to the Consumer Advisory Council and designation of a new chair A64 INDEX TO STATISTICAL TABLES and vice chair for 2000. Adoption of an interim rule for procedures for A66 BOARD OF GOVERNORS AND STAFF electing to become a financial holding company. Proposed regulation implementing the privacy A68 FEDERAL OPEN MARKET COMMITTEE AND provisions of the Gramm-Leach-Bliley Act. STAFF; ADVISORY COUNCILS Approval of fee schedules for priced services of the Federal Reserve Banks. A70 FEDERAL RESERVE BOARD PUBLICATIONS Preliminary figures available on operating income of the Federal Reserve Banks. A72 MAPS OF THE FEDERAL RESERVE SYSTEM Enforcement actions. A74 FEDERAL RESERVE BANKS, BRANCHES, Change in Board staff. AND OFFICES 223 LEGAL DEVELOPMENTS Various bank holding company, bank service corporation, and bank merger orders; and pending cases. 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
Monetary Policy Report to the Congress Report submitted to the Congress on February 17, its tightest in three decades and becoming tighter, the 2000, pursuant to the Full Employment and Balanced risk that pressures on costs and prices would eventu- Growth Act of 1978 ally emerge mounted over the course of the year. To maintain the low-inflation environment that has been so important to the sustained health of the current MONETARY POLICY AND THE expansion, the FOMC ultimately implemented four ECONOMIC OUTLOOK quarter-point increases in the intended federal funds rate, the most recent of which came at the beginning The U.S. economy posted another exceptional perfor- of this month. In total, the federal funds rate has been mance in 1999. The ongoing expansion appears to raised 1 percentage point, although, at 53/4 percent, it have maintained strength into early 2000 as it set a stands only LA point above its level just before the record for longevity, and—aside from the direct autumn-1998 financial market turmoil. At its most effects of higher crude oil prices—inflation has recent meeting, the FOMC indicated that risks appear remained subdued, in marked contrast to the typical to remain on the side of heightened inflation presexperience during previous expansions. The past year sures, so it will need to remain especially attentive to brought additional evidence that productivity growth developments in this regard. has improved substantially since the mid-1990s, boosting living standards while helping to hold down increases in costs and prices despite very tight labor Monetary Policy, Financial Markets, markets. and the Economy over 1999 and Early 2000 The Federal Open Market Committee's pursuit of financial conditions consistent with sustained expan- The first quarter of 1999 saw a further unwinding of sion and low inflation has required some adjustments the heightened levels of perceived risk and risk averto the settings of monetary policy instruments over sion that had afflicted financial markets in the autumn the past two years. In late 1998, to cushion the U.S. of 1998; investors became much more willing to economy from the effects of disruptions in world advance funds, securities issuance picked up, and risk financial markets and to ameliorate some of the spreads fell further—though not back to the unusuresulting strains, money market conditions were ally low levels of the first half of 1998. At the same eased. By the middle of last year, however, with time, domestic demand remained quite strong, and financial markets resuming normal functioning, for- foreign economies showed signs of rebounding. The eign economies recovering, and domestic demand FOMC concluded at its February and March meetcontinuing to outpace increases in productive poten- ings that, if these trends were to persist, the risks of tial, the Committee began to reverse that easing. the eventual emergence of somewhat greater inflation As the year progressed, foreign economies, in pressures would increase, and it noted that a case general, recovered more quickly and displayed could be made for unwinding part of the easing greater vigor than had seemed likely at the start of actions of the preceding fall. However, the Committhe year. Domestically, the rapid productivity growth tee hesitated to adjust policy before having greater raised expectations of future incomes and profits and assurance that the recoveries in domestic financial thereby helped keep spending moving up at a faster markets and foreign economies were on firm footing. clip than current productive capacity. Meanwhile, By the May meeting, these recoveries were solidiprices of most internationally traded materials fying, and the pace of domestic spending appeared to rebounded from their earlier declines; this turn- be outstripping the growth of the economy's potenaround, together with a flattening of the exchange tial, even allowing for an appreciable acceleration value of the dollar after its earlier appreciation, trans- in productivity. The Committee still expected some lated into an easing of downward pressure on the slowing in the expansion of aggregate demand, but prices of imports in general. Core inflation measures the timing and extent of any moderation remained generally remained low, but with the labor market at uncertain. Against this backdrop, the FOMC main- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
162 Federal Reserve Bulletin • March 2000 tained an unchanged policy stance but announced the Manager of the System Open Market Account to immediately after the meeting that it had chosen a counter potential liquidity strains in the period around directive tilted toward the possibility of a firming of the century date change and that would also help rates. This announcement implemented the disclosure ensure the effective implementation of the Commitpolicy adopted in December 1998, whereby major tee's monetary policy objectives. Although members shifts in the Committee's views about the balance of believed that efforts to prepare computer systems for risks or the likely direction of future policy would be the century date change had made the probability of made public immediately. Members expected that, by significant disruptions quite small, some aversion to making the FOMC's concerns public earlier, such Y2K risk exposure was already evident in the marannouncements would encourage financial market kets, and the costs that might stem from a dysfuncreactions to subsequent information that would help tional financing market at year-end were deemed to stabilize the economy. In practice, however, those be unacceptably high. The FOMC agreed to authoreactions seemed to be exaggerated and to focus even rize, temporarily, (1) a widening of the pool of collatmore than usual on possible near-term Committee eral that could be accepted in System open market action. transactions, (2) the use of reverse repurchase agree- Over subsequent weeks, economic activity contin- ment accounting in addition to the currently availued to expand vigorously, labor markets remained able matched sale-purchase transactions to absorb very tight, and oil and other commodity prices rose reserves temporarily, and (3) the auction of options further. In this environment, the FOMC saw an on repurchase agreements, reverse repurchase agreeupdrift in inflation as a significant risk in the absence ments, and matched sale-purchase transactions that of some policy firming, and at the June meeting it could be exercised in the period around year-end. raised the intended level of the federal funds rate The Committee also authorized a permanent exten- LA percentage point. The Committee also announced sion of the maximum maturity on regular repurchase a symmetric directive, noting that the marked degree and matched sale-purchase transactions from sixty to of uncertainty about the extent and timing of prospec- ninety days. tive inflationary pressures meant that further firming The broader range of collateral approved for repurof policy might not be undertaken in the near term, chase transactions—mainly pass-through mortgage but that the Committee would need to be especially securities of government-sponsored enterprises and alert to emerging inflation pressures. Markets rallied STRIP securities of the U.S. Treasury—would facilion the symmetric-directive announcement, and the tate the Manager's task of addressing what could be strength of this response together with market com- very large needs to supply reserves in the succeeding mentary suggested uncertainty about the interpreta- months, primarily in response to rapid increases in tion of the language used to characterize possible the demand for currency, at a time of potentially future developments and about the time period to heightened demand in various markets for U.S. govwhich the directive applied. ernment securities. The standby financing facility, In the period between the June and August meet- authorizing the Federal Reserve Bank of New York ings, the ongoing strength of domestic demand and to auction the above-mentioned options to the govfurther expansion abroad suggested that at least part ernment securities dealers that are regular counterof the remaining easing put in place the previous fall parties in the System's open market operations, to deal with financial market stresses was no longer would encourage marketmaking and the maintenance needed. Consequently, at the August meeting the of liquid financing markets essential to effective open FOMC raised the intended level of the federal funds market operations. The standby facility was also rate a further lA percentage point, to 5XA percent. The viewed as a useful complement to the special liquid- Committee agreed that this action, along with that ity facility, which was to provide sound depository taken in June, would substantially reduce inflation institutions with unrestricted access to the discount risks and again announced a symmetric directive. In a window, at a penalty rate, between October 1999 and related action, the Board of Governors approved an April 2000. Finally, the decision to extend the maxiincrease in the discount rate to 43A percent. At this mum maturity on repurchase and matched salemeeting the Committee also established a working purchase transactions was intended to bring the terms group to assess the FOMC's approach to disclosing of such transactions into conformance with market its view about prospective developments and to pro- practice and to enhance the Manager's ability over pose procedural modifications. the following months to implement the unusually large reserve operations expected to be required At its August meeting, the FOMC took a number around the turn of the year. of actions that were aimed at enhancing the ability of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 163 Selected interest rates 11/16 12/21 2/2 2000 NOTE. The data are daily. Vertical lines indicate the days on which the tal axis are those on which either the FOMC held a scheduled meeting or a Federal Reserve announced a monetary policy action. The dates on the horizon- policy action was announced. Last observations are for February 11, 2000. Incoming information during the period leading up Governors approved an increase in the discount rate to the FOMC's October meeting suggested that the of Vk percentage point, to 5 percent. growth of domestic economic activity had picked up At the December meeting, FOMC members held from the second quarter's pace, and foreign econo- the stance of policy unchanged and, to avoid any mies appeared to be strengthening more than had misinterpretation of policy intentions that might been anticipated, potentially adding pressure to unsettle financial markets around the century date already-taut labor markets and possibly creating change, announced a symmetric directive. But the inflationary imbalances that would undermine eco- statement issued after the meeting also highlighted nomic performance. But the FOMC viewed the risk members' continuing concern about inflation risks of a significant increase in inflation in the near term going forward and indicated the Committee's intenas small and decided to await more evidence on how tion to evaluate, as soon as its next meeting, whether the economy was responding to its previous tighten- those risks suggested that further tightening was ings before changing its policy stance. However, the appropriate. Committee anticipated that the evidence might well The FOMC also decided on some modifications signal the need for additional tightening, and it again to its disclosure procedures at the December meetannounced a directive that was biased toward ing, at which the working group mentioned above restraint. transmitted its final report and proposals. These Information available through mid-November modifications, announced in January 2000, consisted pointed toward robust growth in overall economic primarily of a plan to issue a statement after every activity and a further depletion of the pool of unem- FOMC meeting that not only would convey the ployed workers willing to take a job. Although higher current stance of policy but also would categorize real interest rates appeared to have induced some risks to the outlook as either weighted mainly toward softening in interest-sensitive sectors of the economy, conditions that may generate heightened inflation the anticipated moderation in the growth of aggregate pressures, weighted mainly toward conditions that demand did not appear sufficient to avoid added may generate economic weakness, or balanced with pressures on resources, predominantly labor. These respect to the goals of maximum employment and conditions, along with further increases in oil and stable prices over the foreseeable future. The changes other commodity prices, suggested a significant risk eliminated uncertainty about the circumstances that inflation would pick up over time, given prevail- under which an announcement would be made; ing financial conditions. Against this backdrop, the they clarified that the Committee's statement about FOMC raised the target for the federal funds rate an future prospects extended beyond the intermeeting additional VA percentage point in November. At that period; and they characterized the Committee's views time, a symmetric directive was adopted, consistent about future developments in a way that reflected with the Committee's expectation that no further policy discussions and that members hoped would policy move was likely to be considered before the be more helpful to the public and to financial February meeting. In a related action, the Board of markets. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
164 Federal Reserve Bulletin • March 2000 Financial markets and the economy came through 1. Economic projections for 2000 the century date change smoothly. By the February Percent 2000 meeting, there was little evidence that demand Federal Reserve governors was coming into line with potential supply, and the and Reserve Bank presidents MMeemmoo:: IInnddiiccaattoorr risks of inflationary imbalances appeared to have 11999999 aaccttuuaall „„„ „„ Central risen. At the meeting, the FOMC raised its target RanSe tendency for the federal funds rate VA percentage point to Change, fourth quarter 53/ percent, and characterized the risks as remain- to fourth quarter1 4 Nominal GDP 5555....9999 5555----6666 5555''''////4444----5555''''////2222 ing on the side of higher inflation pressures. In a Real GDP2 4444....2222 3333''''AAAA----4444''''////4444 3333>>>>////2222----33333333AAAA PCE chain-type price index .. 2222....0000 1111 VVVViiii----VVVV////2222 PPPP////4444----2222 related action, the Board of Governors approved a Average level, VA percentage point increase in the discount rate, to fourth quarter 5'/ percent. Civilian unemployment 4 4444....1111 4444----4444 VVVViiii 4444----4444 >>>>////4444 1. Change from average for fourth quarter of 1999 to average for fourth quarter of 2000. Economic Projections for 2000 2. Chain-weighted. The members of the Board of Governors and the by a combination of factors, including reduced Federal Reserve Bank presidents, all of whom partici- restraint from non-oil import prices, wage and price pate in the deliberations of the FOMC, expect to see pressures associated with lagged effects of the past another year of favorable economic performance in year's oil price rise, and larger increases in costs that 2000, although the risk of higher inflation will need might be forthcoming in another year of tight labor to be watched especially carefully. The central ten- markets. dency of the FOMC participants' forecasts of real The performance of the economy—both the rate of GDP growth from the fourth quarter of 1999 to the real growth and the rate of inflation—will depend fourth quarter of 2000 is 3'/2 percent to 33/4 per- importantly on the course of productivity. Typically, cent. A substantial part of the gain in output will in past business expansions, gains in labor productivlikely come from further increases in productivity. ity eventually slowed as rising demand placed Nonetheless, economic expansion at the pace that is increased pressure on plant capacity and on the workanticipated should create enough new jobs to keep force, and a similar slowdown from the recent rapid the unemployment rate in a range of 4 percent pace of productivity gain cannot be ruled out. But to 4VA percent, close to its recent average. The central with many firms still in the process of implementing tendency of the FOMC participants' inflation fore- technologies that have proved effective in reorganizcasts for 2000—as measured by the chain-type price ing internal operations or in gaining speedier access index for personal consumption expenditures—is to outside resources and markets, and with the techl3/4 percent to 2 percent, a range that runs a little to nologies themselves still advancing rapidly, a further the low side of the energy-led 2 percent rise posted in rise in productivity growth from the average pace of 1999.1 Even though futures markets suggest that recent years also is possible. To the extent that rapid energy prices may turn down later this year, prices productivity growth can be maintained, aggregate elsewhere in the economy could be pushed upward supply can grow faster than would otherwise be possible. However, the economic processes that are giving rise to faster productivity growth not only are lifting 1. In past Monetary Policy Reports to the Congress, the FOMC has aggregate supply but also are influencing the growth framed its inflation forecasts in terms of the consumer price index. of aggregate spending. With firms perceiving abun- The chain-type price index for PCE draws extensively on data from dant profit opportunities in productivity-enhancing the consumer price index but, while not entirely free of measurement problems, has several advantages relative to the CPI. The PCE chain- high-tech applications, investment in new equipment type index is constructed from a formula that reflects the changing has been surging and could well continue to rise composition of spending and thereby avoids some of the upward bias rapidly for some time. Moreover, expectations that associated with the fixed-weight nature of the CPI. In addition, the weights are based on a more comprehensive measure of expenditures. the investment in new technologies will generate Finally, historical data used in the PCE price index can be revised to high returns have been lifting the stock market and, account for newly available information and for improvements in in turn, helping to maintain consumer spending at a measurement techniques, including those that affect source data from the CPI; the result is a more consistent series over time. This switch in pace in excess of the current growth of real dispospresentation notwithstanding, the FOMC will continue to rely on a able income. Impetus to demand from this source variety of aggregate price measures, as well as other information on also could persist for a while longer, given the current prices and costs, in assessing the path of inflation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 165 high levels of consumer confidence and the likely serious inflationary consequences because they have lagged effects of the large increments to household been offset by the advances in labor productivity, wealth registered to date. The boost to aggregate which have held unit labor costs in check. But the demand from the marked pickup in productivity pool of available workers cannot continue to shrink growth implies that the level of interest rates needed without at some point touching off cost pressures that to align demand with potential supply may have even a favorable productivity trend might not be able increased substantially. Although the recent rise in to counter. Although the governors and Reserve Bank interest rates may lead to some slowing of spending, presidents expect productivity gains to be substantial aggregate demand may well continue to outpace again this year, incoming data on costs, prices, and gains in potential output over the near term, an imbal- price expectations will be examined carefully to make ance that contains the seeds of rising inflationary sure a pickup of inflation does not start to become and financial pressures that could undermine the embedded in the economy. expansion. The FOMC forecasts are more optimistic than the In recent years, domestic spending has been able to economic predictions that the Administration recently grow faster than production without engendering released, but the Administration has noted that it is inflation partly because the external sector has pro- being conservative in regard to its assumptions about vided a safety valve, helping to relieve the pressures productivity growth and the potential expansion of on domestic resources. In particular, the rapid growth the economy. Relative to the Administration's foreof demand has been met in part by huge increases in cast, the FOMC is predicting a somewhat larger rise imports of goods and services, and sluggishness in in real GDP in 2000 and a slightly lower unemployforeign economies has restrained the growth of ment rate. The inflation forecasts are fairly similar, exports. However, foreign economies have been firm- once account is taken of the tendency for the coning, and if recovery of these economies stays on sumer price index to rise more rapidly than the course, U.S. exports should increase faster than they chain-type price index for personal consumption have in the past couple of years. Moreover, the rapid expenditures. rise of the real exchange value of the dollar through mid-1998 has since given way to greater stability, on average, and the tendency of the earlier appreciation to limit export growth and boost import growth is Money and Debt Ranges for 2000 now diminishing. From one perspective, these external adjustments are welcome because they will help At its most recent meeting, the FOMC reaffirmed the slow the recent rapid rates of decline in net exports monetary growth ranges for 2000 that were chosen and the current account. They also should give a on a provisional basis last July: 1 percent to 5 percent boost to industries that have been hurt by the export for M2, and 2 percent to 6 percent for M3. As has slump, such as agriculture and some parts of been the case for some time, these ranges were manufacturing. At the same time, however, the chosen to encompass money growth under conditions adjustments are likely to add to the risk of an upturn of price stability and historical velocity relationships, in the inflation trend, because a strengthening of rather than to center on the expected growth of money exports will add to the pressures on U.S. resources over the coming year or serve as guides to policy. and a firming of the prices of non-oil imports Given continued uncertainty about movements in will raise costs directly and also reduce to some the velocities of M2 and M3 (the ratios of nominal degree the competitive restraints on the prices of U.S. GDP to the aggregates), the Committee still has little producers. confidence that money growth within any particular range selected for the year would be associated with Domestically, substantial plant capacity is still the economic performance it expected or desired. available in some manufacturing industries and could continue to exert restraint on firms' pricing decisions, even with a diminution of competitive pressures from 2. Ranges for growth of monetary and debt aggregates abroad. However, an already tight domestic labor Percent market has tightened still further in recent months, and bidding for workers, together with further Aggregate 1998 1999 2000 increases in health insurance costs that appear to be M2 1111----5555 1111----5555 1111----5555 coming, seems likely to keep nominal hourly com- M3 2222----6666 2222----6666 2222----6666 Debt 3333----7777 3333----7777 3333----7777 pensation costs moving up at a relatively brisk pace. To date, the increases in compensation have not had NOTE. Change from average for fourth quarter of preceding year to average for fourth quarter of year indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
166 Federal Reserve Bulletin • March 2000 Nonetheless, the Committee believes that money ECONOMIC AND FINANCIAL DEVELOPMENTS growth has some value as an economic indicator, and IN 1999 AND EARLY 2000 it will continue to monitor the monetary aggregates among a wide variety of economic and financial data The U.S. economy retained considerable strength to inform its policy deliberations. in 1999. According to the Commerce Department's M2 increased 6LA percent last year. With nominal advance estimate, the rise in real gross domestic GDP rising 6 percent, M2 velocity fell a bit overall, product over the four quarters of the year exceeded although it rose in the final two quarters of the year as 4 percent for the fourth consecutive year. The growth market interest rates climbed relative to yields on M2 of household expenditures was bolstered by further assets. Further increases in market interest rates early substantial gains in real income, favorable borrowing this year could continue to elevate M2 velocity. Nev- terms, and a soaring stock market. Businesses seekertheless, given the Committee's expectations for ing to maintain their competitiveness and profitability nominal GDP growth, M2 could still be above the continued to invest heavily in high-tech equipment; upper end of its range in 2000. external financing conditions in both debt and equity M3 expanded IV2 percent last year, and its velocity markets were quite supportive. In the public sector, fell about VA percent, a much smaller drop than in further strong growth of revenues was accompanied the previous year. Non-M2 components again exhib- by a step-up in the growth of government consumpited double-digit growth, with some of the strength tion and investment expenditures, the part of govattributable to long-term trends and some to pre- ernment spending that enters directly into real GDP. cautionary buildups of liquidity in advance of the The rapid growth of domestic demand gave rise to a century date change. One important trend is the shift further huge increase in real imports of goods and by nonfinancial businesses from direct holdings services in 1999. Exports picked up as foreign econoof money market instruments to indirect holdings mies strengthened, but the gain fell short of that for through institution-only money funds; such shifts imports by a large margin. Available economic indiboost M3 at the same time they enhance liquidity for cators for January of this year show the U.S. economy businesses. Money market funds and large certifi- continuing to expand, with labor demand robust and cates of deposit also ballooned late in the year as a the unemployment rate edging down to its lowest result of a substantial demand for liquidity around the level in thirty years. century date change. Adjustments from the tempo- The combination of a strong U.S. economy and rarily elevated level of M3 at the end of 1999 are improving economic conditions abroad led to firmer likely to trim that aggregate's fourth-quarter-to- prices in some markets this past year. Industrial comfourth-quarter growth this year, but not sufficiently to modity prices turned up—sharply in some cases— offset the downward trend in velocity. That trend, after having dropped appreciably in 1998. Oil prices, together with the Committee's expectation for nomi- responding both to OPEC production restraint and to nal GDP growth, will probably keep M3 above the the growth of world demand, more than doubled over top end of its range again this year. the course of the year, and the prices of non-oil Domestic nonfinancial debt grew 6V2 percent in 1999, near the upper end of the 3 percent to 7 percent growth range the Committee established last Feb- Change in real GDP ruary. This robust growth reflected large increases Percent, Q4 to Q4 in the debt of businesses and households that were due to substantial advances in spending as well as to debt-financed mergers and acquisitions. However, the increase in private-sector debt was partly offset by a substantial decline in federal debt. The Committee left the range for debt growth in 2000 unchanged at 3 percent to 7 percent. After an aberrant period in the 1980s during which debt expanded much more rapidly than nominal GDP, the growth of debt has returned to its historical pattern of about matching the growth of nominal GDP over the past decade, and the Committee members expect debt to remain within its range again this year. 1991 1993 1995 1997 1999 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 167 Change in PCE chain-type price index Change in real income and consumption Percent, Q4 to Q4 ij^j/ Disposable personal income • Personal consumption expenditures U L 1991 1993 1995 1997 1999 imports declined less rapidly than in previous years, the past five years, a period during which yearly when a rising dollar, as well as sluggish conditions gains in household net worth have averaged more abroad, had pulled them lower. The higher oil prices than 10 percent in nominal terms and the ratio of of 1999 translated into sharp increases in retail energy household wealth to disposable personal income has prices and gave a noticeable boost to consumer prices moved up sharply. overall; the chain-type price index for personal The strength of consumer spending this past consumption expenditures rose 2 percent, double the year extended across a broad front. Appreciable gains increase of 1998. Outside the energy sector, however, were reported for most types of durable goods. consumer prices increased at about the same low rate Spending on motor vehicles, which had surged about as in the previous year, even as the unemployment 13!/2 percent in 1998, moved up another 5L/I perrate continued to edge down. Rapid gains in pro- cent in 1999. The inflation-adjusted increases for ductivity enabled businesses to offset a substantial furniture, appliances, electronic equipment, and other portion of the increases in nominal compensation, household durables also were quite large, supported thereby holding the rise of unit labor costs in check, in part by a strong housing market. Spending on serand business pricing policies continued to be driven vices advanced about AV2 percent in real terms, led by to a large extent by the desire to maintain or increase sizable increases for recreation and personal business market share at the expense of some slippage in unit services. Outlays for nondurables, such as food and profits, albeit from a high level. clothing, also rose rapidly. Exceptional strength in Wealth and saving The Household Sector Percent Ratio Personal consumption expenditures increased about 5'/ percent in real terms in 1999, a second year of Wealth-to-income ratio1 2 12 — . ^ -J 6.0 exceptionally rapid advance. As in other recent years, the strength of consumption in 1999 reflected sus- 10 — n \ l\ /— 5.5 tained increases in employment and real hourly pay, 8 fficf-t which bolstered the growth of real disposable per- w Vi / — 50 sonal income. Added impetus came from another 6 — mA f' VI — 45 year of rapid growth in net worth, which, coming on top of the big gains of previous years, led households 4 __ VT 4 0 in the aggregate to spend a larger portion of their Personal saving rate2 ^ ^ ^ 2 — current income than they would have otherwise. The personal saving rate, as measured in the national 1 1 1 1 1 1 M I NI 1 1 1 1 1 11 I 1 1 II 1 1 1 1 1 1 1 1 1 1 1 II 1 1 1 1 income and product accounts, dropped further, to an 1962 1968 1974 1980 1986 1992 1998 average of about 2 percent in the final quarter of 1. Ratio of net worth of households to disposable personal income. The data extend through 1999:Q3. 1999; it has fallen about AV2 percentage points over 2. The data extend through 1999:Q4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
168 Federal Reserve Bulletin • March 2000 Change in real residential investment multifamily units also were started, about the same number as in each of the two previous years. House Percent, Q4 to Q4 prices rose appreciably and, together with the new investment, further boosted household net worth in residential real estate. — 20 The increases in consumption and residential investment in 1999 were, in part, financed by an expansion of household debt estimated at 9LA percent, the largest increase in more than a decade. Mortgage debt, which includes the borrowing against owner equity that may be used for purposes other than residential investment, grew a whopping 10V4 percent. Higher interest rates led to a sharp drop in refinancing activity and prompted a shift toward 1991 1993 1995 1997 1999 the use of adjustable-rate mortgages, which over the year rose from 10 percent to 30 percent of originations. Consumer credit advanced 7V4 percent, boosted the purchases of some nondurables toward the end by heavy demand for consumer durables and other of the year may have reflected precautionary buying big-ticket purchases. Credit supply conditions were by consumers in anticipation of the century date also favorable; commercial banks reported in Federal change; it is notable in this regard that grocery store Reserve surveys that they were more willing than in sales were up sharply in December and then fell back the previous year or two to make consumer installin January, according to the latest report on retail ment loans and that they remained quite willing to sales. make mortgage loans. Households also continued to boost their expendi- The household sector's debt-service burden edged tures on residential structures. After having surged up to its highest level since the late 1980s; however, 11 percent in 1998, residential investment rose about with employment rising rapidly and asset values 3V percent over the four quarters of 1999, according escalating, measures of credit quality for household 4 to the advance estimate from the Commerce Depart- debt generally improved in 1999. Delinquency rates ment. Moderate declines in investment in the second on home mortgages and credit cards declined a bit, half of the year offset only part of the increases and those on auto loans fell more noticeably. Perrecorded in the first half. As with consumption expen- sonal bankruptcy filings fell sharply after having ditures, investment in housing was supported by the risen for several years to 1997 and remaining elesizable advances in real income and household net vated in 1998. worth, but this spending category was also tempered a little by a rise in mortgage interest rates, which likely was an important factor in the second-half Delinquency rates on household loans downturn. Nearly all the indicators of housing activity showed Percent upbeat results for the year. Annual sales of new and existing homes reached new peaks in 1999, surpassing the previous highs set in 1998. Although sales dropped back a touch in the second half of the year, their level through year-end remained quite high by historical standards. Builders' backlogs also were at high levels and helped support new construction activity even as sales eased. Late in the year, reports that shortages of skilled workers were delaying construction became less frequent as building activity wound down seasonally, but builders also continued I 1 1 1 1 1 1 1 1 i i T - "J to express concern about potential worker shortages 1988 1990 1992 1994 1996 1998 in 2000. For 1999 in total, construction began on NOTE. The data are quarterly. Data on credit-card delinquencies are from more than 1.3 million single-family dwellings, the bank Call Reports; data on auto loan delinquencies are from the Big Three most since the late 1970s; approximately 330,000 automakers; data on mortgage delinquencies are from the Mortgage Bankers Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 169 The Business Sector nesses wanting to stand pat with existing systems until after the turn of the year. Growth in computer Private nonresidential fixed investment increased investment in the final quarter of 1999, just before the 7 percent during 1999, extending by another year a century rollover, was the smallest in several quarters. long run of rapid growth in real investment outlays. Spending on other types of equipment rose moder- Strength in capital investment has been underpinned ately, on balance, in 1999. Outlays for transportation in recent years by the vigor of the business expan- equipment increased substantially, led by advances sion, by the advance and spread of computer tech- in business purchases of motor vehicles and aircraft. nologies, and by the ability of most businesses to By contrast, a sharp decline in spending on industrial readily obtain funding through the credit and equity machinery early in the year held the yearly gain for markets. that category to about 2 percent; over the final three quarters of the year, however, outlays picked up Investment in high-tech equipment continued to sharply as industrial production strengthened. soar in 1999. Outlays for communications equipment rose about 25 percent over the course of the year, Private investment in nonresidential structures fell boosted by a number of factors, including the expan- 5 percent in 1999 according to the advance estimate sion of wireless communications, competition in tele- from the Commerce Department. Spending on strucphone markets, the continued spread of the Internet, tures had increased in each of the previous seven and the demand of Internet users for faster access to years, rather briskly at times, and the level of investit. Computer outlays rose nearly 40 percent in real ment, though down this past year, remained relatively terms, and the purchases of computer software, which high and likely raised the real stock of capital in the national accounts are now counted as part of invested in structures appreciably further. Real expenprivate fixed investment, rose about 13 percent; for ditures on office buildings, which have been climbing both computers and software the increases were rapidly for several years, moved up further in 1999, roughly in line with the annual average gains during to the highest level since the peak of the building previous years of the expansion. boom of the 1980s. In contrast, investment in other types of commercial structures, which had already The timing of investment in high-tech equipment regained its earlier peak, slipped back a little, on net, over the past couple of years was likely affected to this past year. Spending on industrial structures, some degree by business preparations for the century which accounts for roughly 10 percent of total real date change. Many large businesses reportedly inoutlays on structures, fell for a third consecutive year. vested most heavily in new computer equipment be- Outlays for the main types of institutional structures fore the start of 1999 to leave sufficient time for their also were down, according to the initial estimates. systems to be tested well before the start of 2000; a Revisions to the data on nonresidential structures very steep rise in computer investment in 1998— often are sizable, and the estimates for each of the roughly 60 percent in real terms—is consistent with three years preceding 1999 have eventually shown a those reports. Some of the purchases in preparation good bit more strength than was initially reported. for Y2K most likely spilled over into 1999, but the past year also brought numerous reports of busi- After increasing for two years at a rate of about 6 percent, nonfarm business inventories expanded more slowly this past year—about 3 LA percent Change in real nonresidential fixed investment according to the advance GDP report. During the year, some businesses indicated that they planned to Percent, Q4 to Q4 carry heavier stocks toward year-end to protect them- I I Structures selves against possible Y2K disruptions, and the rate H Equipment and software of accumulation did in fact pick up appreciably in the — — 20 fall. But business final sales remained strong, and the ratio of nonfarm stocks to final sales changed little, holding toward the lower end of the range of the past decade. With the ratio so low, businesses likely did not enter the new year with excess stocks. After slowing to a 1 percent rise in 1998, the economic profits of U.S. corporations—that is, book profits with inventory valuation and capital consumption adjustments—picked up in 1999. Economic prof- 1991 1993 1995 1997 1999 its over the first three quarters of the year averaged Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
170 Federal Reserve Bulletin • March 2000 Change in real private nonfarm inventories Before-tax profits as a share of GDP NOTE. Profits from domestic operations, with inventory valuation and capital consumption adjustments, divided by gross domestic product of nonfinancial corporate sector. The data extend through 1999:Q3. about 3Vi percent above the level of a year earlier. The earnings of corporations from their operations outside the United States rebounded in 1999 from a ume substantially further over the past two years, but brief but steep decline in the second half of 1998, profits per unit of output have dropped back somewhen financial market disruptions were affecting the what from their 1997 peak. As of the third quarter world economy. The profits earned by financial cor- of last year, economic profits of nonfinancial corpoporations on their domestic operations also picked up rations amounted to slightly less than 1IV2 percent after having been slowed in 1998 by the financial of the nominal output of these companies, compared turmoil; growth of these profits in 1999 would have with a quarterly peak of about 123A percent two years been greater but for a large payout by insurance earlier. companies to cover damage from Hurricane Floyd. The borrowing needs of nonfinancial corporations The profits that nonfinancial corporations earned on remained sizable in 1999. Capital spending outtheir domestic operations in the first three quarters of stripped internal cash flow, and equity retirements 1999 were about 2Vi percent above the level of a year that resulted from stock repurchases and a blockearlier; growth of these earnings, which account for buster pace of merger activity more than offset record about two-thirds of all economic profits, had slowed volumes of both seasoned and initial public equity to just over 2 percent in 1998 after averaging 13 per- offerings. Overall, the debt of nonfinancial businesses cent at a compound annual rate in the previous six grew 10^2 percent, down only a touch from its years. Nonfinancial corporations have boosted vol- decade-high 1998 pace. Gross corporate bond issuance Billions of dollars • High yield Bi Investment grade J J A S O N DJ F M A MJ J A S O ND J 1998 1999 2000 NOTE. Excludes unrated issues and issues sold abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 171 The strength in business borrowing was wide- in particular, exhibited upward pressure at this time. spread across funding sources. Corporate bond The likelihood of year-end difficulties seemed to issuance was robust, particularly in the first half of diminish in the fall, and spreads again retreated, the year, though the markets' increased preference ending the year down on balance but generally above for liquidity and quality, amid an appreciable rise the levels that had prevailed over the several years up in defaults on junk bonds, left issuance of below- to mid-1998. investment-grade securities down more than a quarter Federal Reserve surveys indicated that banks from their record pace in 1998. The receptiveness of firmed terms and standards for commercial and industhe capital markets helped firms to pay down loans at trial loans a bit further, on balance, in 1999. In the banks—which had been boosted to an \l3A percent syndicated loan market, spreads for lower-rated borgain in 1998 by the financial market turmoil that rowers also ended the year higher, on balance, after year—and growth in these loans slowed to a more rising substantially in 1998. Spreads for higher-rated moderate 5LA percent pace in 1999. The commercial borrowers were fairly steady through 1998 and early paper market continued to expand rapidly, with 1999, widened a bit around midyear, and then fell domestic nonfinancial outstandings rising 18 percent back to end the year about where they had started. on top of the 14 percent gain in 1998. The ratio of net interest payments to cash flow for Commercial mortgage borrowing was strong again nonfinancial firms remained in the low range it has as well, as real estate prices generally continued occupied for the past few years, but many measures to rise, albeit at a slower pace than in 1998, and of credit quality nonetheless deteriorated in 1999. vacancy rates generally remained near historical Moody's Investors Service downgraded more nonlows. The mix of lending shifted back to banks and financial debt issuers than it upgraded over the year, life insurance companies from commercial mortgage- affecting a net $78 billion of debt. The problems that backed securities, as conditions in the CMBS market, emerged in the bond market were concentrated especially investor appetites for lower-rated tranches, mostly among borrowers in the junk sector, and partly remained less favorable than they had been before the reflected a fallout from the large volume of issuance credit market disruptions in the fall of 1998. and the generous terms available in 1997 and early Risk spreads on corporate bonds seesawed during 1998; default rates on junk bonds rose to levels not 1999. Over the early part of the year, spreads reversed seen since the recession of 1990-91. Delinquency part of the 1998 run-up as markets recovered. During rates on C&I loans at commercial banks ticked up in the summer, they rose again in response to concerns 1999, albeit from very low levels, while the chargeabout market liquidity, expectations of a surge in off rate for those loans continued on its upward trend financing before the century date change, and of the past several years. Business failures edged up anticipated firming of monetary policy. Swap spreads, last year but remained in a historically low range. Spreads of corporate bond yields over Treasury security yields Percentage points Net interest payments of nonfinancial corporations relative to cash flow High yield Percent NOTE. The data are daily. The spread of high-yield bonds compares the yield on the Merrill Lynch 175 index with that on a seven-year Treasury; the other two spreads compare yields on the appropriate Merrill Lynch indexes with that on a ten-year Treasury. Last observations are for February 11, 2000. NOTE. The data are quarterly and extend through 1999:Q3. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
172 Federal Reserve Bulletin • March 2000 Annual change in real government expenditures growth of these outlays has picked up appreciably as on consumption and investment the expansion has lengthened. At the federal level, expenditures in the unified Percent budget rose 3 percent in fiscal 1999, just a touch less than the 3 LA percent rise of the preceding fiscal year. Faster growth of nominal spending on items that are included in consumption and investment was offset in the most recent fiscal year by a deceleration in other categories. Net interest outlays fell more than 5 percent—enough to trim total spending growth about 3A percentage point—and only small increases were 2 recorded in expenditures for social insurance and income security, categories that together account for nearly half of total federal outlays. In contrast, fed- L_J 1 1 i I I I I I L-J eral expenditures on Medicaid, after having slowed 1991 1993 1995 1997 1999 in 1996 and 1997, picked up again in the past two fiscal years. Spending on agriculture doubled in fiscal 1999; the increase resulted both from a step-up in The Government Sector payments under farm safety net programs that were retained in the "freedom to farm" legislation of 1996 Buoyed by rapid increases in receipts and favorable and from more recent emergency farm legislation. budget balances, the combined real expenditures of federal, state, and local governments on consumption Federal receipts grew 6 percent in fiscal 1999 after and investment rose about 43A percent from the fourth increases that averaged close to 9 percent in the two quarter of 1998 to the fourth quarter of 1999. Annual previous fiscal years. Net receipts from taxes on data, which smooth through some of the quarterly individuals continued to outpace the growth of pernoise that is often evident in government outlays, sonal income, but by less than in other recent years, showed a gain in real spending of more than 3Vi per- and receipts from corporate income taxes fell modercent this past year, the largest increase of the expan- ately. Nonetheless, with total receipts growing faster sion. Federal expenditures on consumption and than spending, the surplus in the unified budget coninvestment were up nearly 3 percent in annual terms; tinued to rise, moving from $69 billion in fiscal 1998 real defense expenditures, which had trended lower to $124 billion this past fiscal year. Excluding net through most of the 1990s, rose moderately, and interest payments—a charge resulting from past outlays for nondefense consumption and investment deficits—the federal government recorded a surplus increased sharply. Meanwhile, the consumption and of more than $350 billion in fiscal 1999. investment expenditures of state and local govern- Federal saving, a measure that results from a transments rose more than 4 percent in annual terms; lation of the federal budget surplus into terms consistent with the national income and product accounts, amounted to 2 LA percent of nominal GDP in the first Federal receipts and expenditures three quarters of 1999, up from IV2 percent in 1998 Percent of nominal GDP and V2 percent in 1997. Before 1997, federal saving had been negative for seventeen consecutive years, by amounts exceeding 3 percent of nominal GDP in Total expenditures several years—most recently in 1992. The change in * — 22 the federal government's saving position from 1992 to 1999 more than offset the sharp drop in the per- Excluding net interest \ . sonal saving rate and helped lift national saving from —N 19 less than 16 percent of nominal GDP in 1992 and 1993 to a range of about 18V2 percent to 19 percent Total receipts over the past several quarters. " 16 Federal debt growth has mirrored the turnabout in the government's saving position. In the 1980s and 1 1 1 1 1 1 t 1 1 1 1 1 1 1 1 1 t 1 1 1 early 1990s, borrowing resulted in large additions 1984 1987 1990 1993 1996 1999 to the volume of outstanding government debt. In NOTE. The data are from the unified budget and are for the fiscal year ended contrast, with the budget in surplus the past two in September. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 173 National saving large volumes of debt. Alternate quarterly refunding auctions of five- and ten-year notes and semiannual Percent of nominal GDP auctions of thirty-year bonds will now be smaller reopenings of existing issues rather than new issues. Thirty-year TIIS will now be auctioned once a year rather than twice, and the two auctions of ten-year TIIS will be modestly reduced. Auctions of one-year Treasury bills will drop from thirteen a year to four, while weekly bill volumes will rise somewhat. Finally, the Treasury plans to enter the market to buy back in "reverse auctions" as much as $30 billion of outstanding securities this year, beginning in March or April. State and local government debt expanded 4XA per- I I I I I I I I I I I I I I I I I I I 1983 1987 1991 1995 1999 cent in 1999, well off the previous year's elevated NOTE. National saving includes the gross saving of households, businesses, pace. Borrowing for new capital investment edged and governments. The data extend through 1999:Q3. up, but the roughly full-percentage-point rise in municipal bond yields over the year led to a sharp years, the Treasury has been paying down debt. With- drop in advance refundings, which in turn pulled out the rise in federal saving and the reversal in gross issuance below the 1998 level. Tax revenues borrowing, interest rates in recent years likely would continued to grow at a robust rate, improving the have been higher than they have been, and private financial condition of states and localities, as reflected capital formation, a key element in the vigorous in a ratio of debt rating upgrades to downgrades of economic expansion, would have been lower, per- more than three to one over the year. The surplus in haps appreciably. the current account of state and local governments in The Treasury responded to its lower borrowing the first three quarters of 1999 amounted to about requirements in 1999 primarily by reducing the num- Vi percent of nominal GDP, about the same as in ber of auctions of thirty-year bonds from three to two 1998 but otherwise the largest of the past several and by trimming auction sizes for notes and Treasury years. inflation-indexed securities (TIIS). Weekly bill volumes were increased from 1998 levels, however, to The External Sector help build up cash holdings as a Y2K precaution. For 2000, the Treasury plans major changes in debt man- Trade and the Current Account agement in an attempt to keep down the average maturity of the debt and maintain sufficient auction U.S. external balances deteriorated in 1999 largely sizes to support the liquidity and benchmark status of because of continued declines in net exports of goods its most recently issued securities, while still retiring and services and some further weakening of net investment income. The nominal trade deficit for goods and services widened more than $100 billion Federal government debt held by the public in 1999, to an estimated $270 billion, as imports Percent of nominal GDP expanded faster than exports. For the first three quarters of the year, the current account deficit increased — 50 more than one-third, reaching $320 billion at an annual rate, or 3Vi percent of GDP. In 1998, the / \— 45 current account deficit was 2VI percent of GDP. — \ ' \ 40 Real imports of goods and services expanded strongly in 1999—about 13 percent according to — — 35 preliminary estimates—as the rapid import growth during the first half of the year was extended through — — 30 the second half. The expansion of real imports was — — 25 fueled by the continued strong growth of U.S. domestic expenditures. Declines in non-oil import prices 1 1 1 1 11 11 1 11 1 II 11 I1 1 1 1 1 I1f 1 II 1 1 1 II 1 11 1 1 1 11 1 through most of the year, partly reflecting previous 1959 1969 1979 1989 1999 dollar appreciation, contributed as well. All major NOTE. The data are annual. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
174 Federal Reserve Bulletin • March 2000 U.S. current account Capital Account Percent of nominal GDP U.S. capital flows in 1999 reflected the relatively strong cyclical position of the U.S. economy and the global wave of corporate mergers. Foreign purchases of U.S. securities remained brisk—near the level of the previous two years, in which they had been elevated by the global financial unrest. The composition of foreign securities purchases in 1999 showed a continued shift away from Treasuries, in part because of the U.S. budget surplus and the decline in the supply of Treasuries relative to other securities and, perhaps, to a general increased tolerance of foreign investors for risk as markets calmed after their tur- I I I I I I I 1 I I 1 1 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 moil of late 1998. Available data indicate that private foreigners sold on net about $20 billion in Trea- NOTE. The observation for 1999 is the average for the first three quarters of the year. suries, compared with net purchases of $50 billion in 1998 and $150 billion in 1997. These sales of Treaimport categories other than aircraft and oil recorded suries were more than offset by a pickup in foreign strong increases. While U.S. consumption of oil rose purchases of their nearest substitute—government about 4 percent in 1999, the quantity of oil imported agency bonds—as well as corporate bonds and was about unchanged, and inventories were drawn equities. down. Foreign direct investment flows into the United Real exports of goods and services rose an esti- States were also robust in 1999, with the pace of mated 4 percent in 1999, a somewhat faster pace than inflows in the first three quarters only slightly below in 1998. Economic activity abroad picked up, par- the record inflow set in 1998. As in 1998, direct ticularly in Canada, Mexico, and Asian developing investment inflows last year were elevated by several economies. However, the lagged effects of relative large mergers, which left their imprint on other parts prices owing to past dollar appreciation held down of the capital account as well. In the past two years, exports. An upturn in U.S. exports to Canada, many of the largest mergers have been financed by Mexico, and key Asian emerging markets contrasted a swap of equity in the foreign acquiring firm for with a much flatter pace of exports to Europe, Japan, equity in the U.S. firm being acquired. The Bureau and South America. Capital equipment composed of Economic Analysis estimates that U.S. residents about 45 percent of U.S. goods exports, industrial acquired more than $100 billion of foreign equity supplies were 20 percent, and agricultural, automo- through this mechanism in the first three quarters of tive, and consumer goods were each roughly 1999. Separate data on market transactions indicate 10 percent. that U.S. residents made net purchases of Japanese equities. They also sold European equities, probably in an attempt to rebalance portfolios in light of the Change in real imports and exports of goods and services equity acquired through stock swaps. U.S. residents on net purchased a small volume of foreign bonds in Percent, Q4 to Q4 1999. U.S. direct investment in foreign economies also reflected the global wave of merger activity in 1999 and will likely total something near its record level of 1998. Available data indicate a return to sizable capital inflows from foreign official sources in 1999, following a modest outflow in 1998. The decline in foreign official assets in the United States in 1998 was fairly widespread, as many countries found their currencies under unwanted downward pressure during the turmoil. By contrast, the increase in foreign official reserves in the United States in 1999 was fairly 1991 1993 1995 1997 1999 concentrated in a relatively few countries that experi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 175 enced unwanted upward pressure on their currencies Change in payroll employment vis-a-vis the U.S. dollar. Thousands of jobs, monthly average Total nonfarm The Labor Market Jan. — 400 As in other recent years, the rapid growth of aggregate output in 1999 was associated with both strong growth of productivity and brisk gains in employment. According to the initial estimate for 1999, output per hour in the nonfarm business sector rose 3V percent over the four quarters of the year, and 4 historical data were revised this past year to show stronger gains than previously reported in the years 1991 1993 1995 1997 1999 preceding 1999. As the data stand currently, the average rate of rise in output per hour over the past four years is about 23A percent—up from an average of IV2 percent from the mid-1970s to the end of 1995. by many of the same categories that had been strong Some of the step-up in productivity growth since in previous years—transportation and communica- 1995 can be traced to high levels of capital spending tions, computer services, engineering and manageand an accompanying faster rate of increase in the ment, recreation, and personnel supply. In the conamount of capital per worker. Beyond that, the causes struction sector, employment growth remained quite are more difficult to pin down quantitatively but brisk—more than 4 percent from the final quarter of are apparently related to increased technological 1998 to the final quarter of 1999. Manufacturing and organizational efficiencies. Firms are not only employment, influenced by spillover from the disrupexpanding the stock of capital but are also discover- tions in foreign economies, continued to decline ing many new uses for the technologies embodied in sharply in the first half of the year, but losses therethat capital, and workers are becoming more skilled after were small as factory production strengthened. at employing the new technologies. Since the start of the expansion in 1991, the job count The number of jobs on nonfarm payrolls rose in manufacturing has changed little, on net, but with slightly more than 2 percent from the end of 1998 to factory productivity rising rapidly, manufacturing the end of 1999, a net increase of 2.7 million. Annual output has trended up at a brisk pace. job gains had ranged between 2LA percent and 23A percent over the 1996-98 period. Once again in 1999, the private service-producing sector accounted Measures of labor utilization for most of the total rise in payroll employment, led Percent Change in output per hour Percent, Q4 to Q4 1 I M I I 1 I 1 I I I I I 1 I I I I I 1 I I I 1 I 1 I I I I I 1970 1975 1980 1985 1990 1995 2000 NOTE. The augmented unemployment rate is the number of unemployed plus those who are not in the labor force and want a job, divided by the civilian labor force plus those who are not in the labor force and want a job. The break in data 1991 1993 1995 1997 1999 at January 1994 marks the introduction of a redesigned survey; data from that point on are not directly comparable with those of earlier periods. The data NOTE. Nonfarm business sector. extend through January 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
176 Federal Reserve Bulletin • March 2000 In 1999, employers continued to face a tight labor Change in unit labor costs market. Some increase in the workforce came from the pool of the unemployed, and the jobless rate declined to an average of 4.1 percent in the fourth quarter. In January 2000, the rate edged down to 4.0 percent, the lowest monthly reading since the start of the 1970s. Because the unemployment rate is a reflection only of the number of persons who are available for work and actively looking, it does not capture potential labor supply that is one step removed—namely those individuals who are interested in working but are not actively seeking work at the current time. However, like the unemployment rate itself, an augmented rate that includes these interested nonparticipants also has declined to a low level, as more individuals have taken advantage NOTE. Nonfarm business sector. of expanding opportunities to work. Although the supply-demand balance in the labor about 4 percent in each of the two previous years. market tightened further in 1999, the added pressure The hourly cost to employers of the nonwage benefits did not translate into bigger increases in nominal provided to employees also rose 3>Vi percent in 1999, hourly compensation. The employment cost index for but this increase was considerably larger than those hourly compensation of workers in private nonfarm of the past few years. Much of the pickup in benefit industries rose 3.4 percent in nominal terms during costs came from a faster rate of rise in the costs of 1999, little changed from the increase of the previous health insurance, which were reportedly driven up by year, and an alternative measure of hourly compensa- several factors: a moderate acceleration in the price tion from the nonfarm productivity and cost data of medical care, the efforts of some insurers to rebuild slowed from a 5LA percent increase in 1998 to a profit margins, and the recognition by employers that AVi percent rise this past year. Compensation gains in an attractive health benefits package was helpful 1999 probably were influenced, in part, by the very in hiring and retaining workers in a tight labor low inflation rate of 1998, which resulted in unex- market. pectedly large increases in inflation-adjusted pay in Because the employment cost index does not capthat year and probably damped wage increments last ture some forms of compensation that employers year. According to the employment cost index, the have been using more extensively—for example, hourly wages of workers in private industry rose stock options, signing bonuses, and employee price 31/2 percent in nominal terms after having increased discounts on in-store purchases—it has likely been understating the true size of workers' gains. The productivity and cost measure of hourly compensation captures at least some of the labor costs that the Change in employment cost index employment cost index omits, and this broader coverage may explain why the productivity and cost measure has been rising faster. However, it, too, is Hourly compensation affected by problems of measurement, some of which would lead to overstatement of the rate of rise in hourly compensation. With the rise in output per hour in the nonfarm business sector in 1999 offsetting about three-fourths of the rise in the productivity and cost measure of nominal hourly compensation, nonfarm unit labor costs were up just a shade more than 1 percent. Unit labor costs had increased slightly more than 2 percent in both 1997 and 1998 and less than 1 percent in 1996. Because labor costs are by far the most impor- 1991 1993 1995 1997 1999 tant item in total unit costs, these small increases NOTE. Change from one year earlier. Private industry, excluding farm and have been crucial to keeping inflation low. household workers. Data extend through December 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 21 3. Alternative measures of price change but it rose 3 percent in 1999. A big swing in oil Percent prices—down in 1998 but up sharply in 1999— accounted for a large part of this turnaround. Exclud- Price measure 1998 1999 ing oil, the prices of imported goods continued to fall Chain-type in 1999 but, according to the initial estimate, less Gross domestic product 1.1 1.6 Gross domestic purchases .7 1.9 rapidly than over the three previous years, when Personal consumption expenditures ... 1.0 2.0 downward pressure from appreciation of the dollar Excluding food and energy 1.4 1.5 had been considerable. The prices of imported mate- Fixed-weight Consumer price index 1.5 2.6 rials and supplies rebounded, but the prices of im- Excluding food and energy 2.3 2.0 ported capital goods fell sharply further. Meanwhile, NOTE. Changes are based on quarterly averages and are measured to the the chain-type price index for exports increased 1 perfourth quarter of the year indicated from the fourth quarter of the preceding year. cent in the latest year, reversing a portion of the 2VI percent drop of 1998, when the sluggishness of Prices foreign economies and the strength of the dollar had pressured U.S. producers to mark down the prices Rates of increase in the broader measures of aggre- charged to foreign buyers. gate prices in 1999 were somewhat larger than those Prices of domestically produced primary materials, of 1998. The chain-type price index for GDP—which which tend to be especially sensitive to developments measures inflation for goods and services produced in world markets, rebounded sharply in 1999. The domestically—moved up about 1 Vi percent, a pickup producer price index for crude materials excluding of x/i percentage point from the increase of 1998. In food and energy advanced about 10 percent after comparison, acceleration in various price measures having fallen about 15 percent in 1998, and the PPI for goods and services purchased amounted to 1 per- for intermediate materials excluding food and energy centage point or more: The chain-type price index for increased about \ Vz percent, reversing a 1998 decline personal consumption expenditures increased 2 per- of about that same size. But further along in the chain cent, twice as much as in the previous year, and the of processing and distribution, the effects of these chain-type price index for gross domestic purchases, increases were not very visible. The producer price which measures prices of the aggregate purchases of index for finished goods excluding food and energy consumers, businesses, and governments, moved up rose slightly less rapidly in 1999 than in 1998, and close to 2 percent after an increase of just 3A percent the consumer price index for goods excluding food in 1998. The consumer price index rose more than and energy rose at about the same low rate that it had 2Vi percent over the four quarters of the year after in 1998. Large gains in productivity and a margin of having increased IV2 percent in 1998. excess capacity in the industrial sector helped keep The acceleration in the prices of goods and ser- prices of goods in check, even as growth of domestic vices purchased was driven in part by a reversal in demand remained exceptionally strong. import prices. In 1998, the chain-type price index for "Core" inflation at the consumer level—which imports of goods and services had fallen 5 percent, takes account of the prices of services as well as the prices of goods and excludes food and energy Change in consumer prices prices—changed little in 1999. The increase in the core index for personal consumption expenditures, Percent. Q4 to Q4 1 !/2 percent over the four quarters of the year, was Q Consumer price index about the same as the increase in 1998. As measured • Chain-type price index for PCE by the CPI, core inflation was 2 percent this past year, about 1/4 percentage point lower than in 1998, but the — — 4 deceleration was a reflection of a change in CPI methodology that had taken place at the start of last year; on a methodologically consistent basis, the rise in the core CPI was about the same in both years. In the national accounts, the chain-type price index for private fixed investment edged up LA percent in 1999 after having fallen about 3A percent in 1998. With construction costs rising, the index for residential investment increased 33/4 percent, its largest 1991 1993 1995 1997 1999 advance in several years. By contrast, the price index NOTE. Consumer price index for all urban consumers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
178 Federal Reserve Bulletin • March 2000 Change in consumer prices excluding food and energy Selected Treasury rates, daily data Percent, Q4 to Q4 Percent O Consumer price index Thirty-year — • Chain-type price index for PCE — 6 ffVV-- 66..55 Treasury — 6.0 — — 5 5.5 jI fl Five-year Jk J W' Treasury jN \ — 5.0 — A. ICLMT — 4.5 * Three-month Treasury —— 44..00 — 3.5 1 i i i i i t i i i i i I i i i i i i i i i t i 11 , i J FMAM J JASONDJ FMAMJ JASOND J F 1998 1999 2000 NOTE. Consumer price index for all urban consumers. NOTE. Last observations are for February 11, 2000. for nonresidential investment declined moderately, as a result of another drop in the index for equipment likelihood of outsized demands for credit and liquidand software. Falling equipment prices are one chan- ity over the year-end subsided, causing spreads to nel through which faster productivity gains have been narrow, and stock prices surged once again. After reshaping the economy in recent years; the drop in the century date change passed without disruptions, prices has contributed to high levels of investment, liquidity improved and trading volumes grew, rapid expansion of the capital stock, and a step-up in although both bond and equity prices have remained the growth of potential output. quite volatile so far this year. Interest Rates U.S. Financial Markets Over the first few months of 1999, short-term Trea- Financial markets were somewhat unsettled as 1999 sury rates moved in a narrow range, anchored by began, with the disruptions of the previous autumn an unchanged stance of monetary policy. Yields on still unwinding and the devaluation of the Brazilian intermediate- and long-term Treasury securities rose, real causing some jitters around mid-January. How- however, as the flight to quality and liquidity of the ever, market conditions improved into the spring, preceding fall unwound, and incoming data pointed evidenced in part by increased trading volumes and narrowed bid-asked and credit spreads, as it became increasingly evident that strong growth was continu- Selected Treasury rates, quarterly data ing in the United States, and that economies abroad Percent were rebounding. In this environment, market participants began to anticipate that the Federal Reserve — Ik — 14 would reverse the policy easings of the preceding fall, and interest rates rose. Nevertheless, improved — 12 If I profit expectations apparently more than offset the Thirty-year J1 interest rate increases, and equity prices continued to Treasury — 10 climb until late spring. From May into the fall, both • J. — 8 equity prices and longer-term interest rates moved in a choppy fashion, while short-term interest rates — J f yn \k f K/ 6 moved up with monetary policy tightenings in June, Five-year x August, and November. Worries about Y2K became Y Mr Three-month Treasury — 4 Treasury pronounced after midyear, and expectations of an 1 1 1 1 1 11 1 1 1 1 1 1 I II 1 1 1 M I N IM 11 II II •J acceleration of borrowing ahead of the fourth quarter 1964 1969 1974 1979 1984 1989 1994 1999 prompted a resurgence in liquidity and credit premi- NOTE. The twenty-year Treasury bond rate is shown until the first issuance of the thirty-year Treasury bond in February 1977. The data extend through the ums. In the closing months of the year, however, the fourth quarter of 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 179 to continued robust economic growth and likely Fed- measured as the implied forward rate for a monthlong eral Reserve tightening. Over most of the rest of the period spanning the turn relative to the rate for a year, short-term Treasury rates moved broadly in line neighboring period—rose earlier and reached much with the three quarter-point increases in the target higher levels than in recent years. federal funds rate; longer-term yields rose less, as Those year-end premiums peaked in late October markets had already anticipated some of those policy and then declined substantially, as markets reflected actions. increased confidence in technical readiness and spe- Bond and note yields moved sharply higher from cial assurances from central banks that sufficient early November 1999 to mid-January 2000, as Y2K liquidity would be available around the century date fears diminished, incoming data indicated surprising change. Important among these assurances were seveconomic vitality, and the century date change was eral of the Federal Reserve initiatives described in the negotiated without significant technical problems. first section of this report. Securities dealers took In recent weeks, long-term Treasury yields have particular advantage of the widened pools of acceptretraced a good portion of that rise on expectations able collateral for open market operations and used of reduced supply stemming from the Treasury's new large volumes of federal agency debt and mortgagebuyback program and reductions in the amount of backed securities in repurchase agreements with the bonds to be auctioned. This rally has been mostly Open Market Desk in the closing weeks of the year, confined to the long end of the Treasury market; which helped to relieve a potential scarcity of Trealong-term corporate bond yields have fallen only sury collateral over the turn. Market participants also slightly, and yields are largely unchanged or have purchased options on nearly $500 billion worth of risen a little further at maturities of ten years or less, repurchase agreements under the standby financing where most private borrowing is concentrated. facility and pledged more than $650 billion of collat- Concerns about liquidity and credit risk around the eral for borrowing at the discount window. With the century date change led to large premiums in private smooth rollover, however, none of the RP options money market rates in the second half of 1999. were exercised, and borrowing at the discount win- During the summer, this "safe haven" demand held dow turned out to be fairly light. down rates on Treasury bills maturing early in the new year, until the announcement in August that the Treasury was targeting an unusually large year-end Equity Prices cash balance, implying that it would issue a substantial volume of January-dated cash management bills. Nearly all major stock indexes ended 1999 in record Year-end premiums in eurodollar, commercial paper, territory. The Nasdaq composite index paced the term federal funds, and other money markets— advance by soaring 86 percent over the year, and the S&P 500 and Dow Jones Industrial Average posted still-impressive gains of 20 percent and 25 percent. Eurodollar deposit forward premium over year-end Basis points Major stock price indexes 1999 Index (January 4, 1999 = 100) — Nasdaq 7 200 — 180 — J — 160 J — 140 Russell 2000 120 100 Oct. Nov. Dec. — 80 NOTE. The data are daily. For October the forward premiums are one-month \ r forward rates two months ahead less one-month forward rates one month ahead; i i i t i i i i i i 1 i i i i i i i t i i i I i I for November they are one-month forward rates one month ahead less one- J FMAM J J A S ON D J FMAMJ JASONDJ F month deposit rates; and for December they are three-week forward rates one 1998 1999 2000 week ahead less one-week deposit rates. The December forward premiums extend into the third week of December. NOTE. The data are daily. Last observations are for February 11, 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
180 Federal Reserve Bulletin • March 2000 Equity valuation and long-term real interest rate Domestic nonfinancial debt: Annual range and actual level Percent Trillions of dollars 7% ^^ — nf| — 15 — 17.3 — 13 — — 17.1 — \/ Vl S&P 500 earnings-price ratio — 11 — — 16.9 — 9 — — 16.7 If] — 7 — — 16.5 — 5 — — 16.3 r— 3 — 16.1 Ten-year real interest rate V 1 1 t 1 1 I I 1 1 1 1 1 1 1 1 1 1 1 1 1 i i 1 1 1 l 1 I l l t l l l i i 1L J 1980 1984 1988 1992 1996 2000 o N D J F M A MJ J A S O N DJ NOTE. The data are monthly and extend through January 2000. The earnings- 1998 1999 2000 price ratio is based on the I/B/E/S International, Inc., consensus estimate of earnings over the coming twelve months. The real interest rate is the yield on the ten-year Treasury note less the ten-year inflation expectations from the Federal Reserve Bank of Philadelphia Survey of Professional Forecasters. from an already-slim 1 LA percent to VI percent, suggesting that investors are pricing in expectations of tremendous earnings growth at technology firms rela- Last year was the fifth consecutive year that all three tive to historical norms. indexes posted double-digit returns. Most stock indexes moved up sharply over the first few months of the year and were about flat on net from May through August; they then declined into October Debt and the Monetary Aggregates before surging in the final months of the year. The Nasdaq index, in particular, achieved most of its Debt and Depository Intermediation annual gains in November and December. Stock price advances in 1999 were not very broad-based, how- The debt of domestic nonfinancial sectors is estiever: More than half of the S&P 500 issues lost value mated to have grown 6V2 percent in 1999 on a over the year. So far in 2000, stock prices have been fourth-quarter-to-fourth-quarter basis, near the upper volatile and mixed; major indexes currently span a end of the FOMC's 3 percent to 7 percent range and range from the Dow's nearly 10 percent drop to the about a percentage point faster than nominal GDP. As Nasdaq's 8 percent advance. was the case in 1998, robust outlays on consumer durable goods, housing, and business investment, Almost all key industry groups performed well. as well as substantial net equity retirements, helped One exception was shares of financial firms, which sustain nonfederal sector debt growth at rates above were flat, on balance. Investor perceptions that rising interest rates would hurt earnings and, possibly, concern over loan quality apparently offset the boost Domestic nonfinancial debt as a percentage of nominal GDP resulting from passage in the fall of legislation reforming the depression-era Glass-Steagall con- Percent Percent straints on combining commercial banking with insurance and investment banking. Small-cap stocks, 195 - - 160 Total which had lagged in 1998, also performed well; the 190 - "XT - 155 Russell 2000 index climbed 20 percent over the year and finally surpassed its April 1998 peak in late 185 -" ~ 150 December. 180 - / - 145 At large firms, stock price gains about kept pace 175 - / - 140 with expected earnings growth in 1999, and the S&P 500 one-year-ahead earnings-price ratio fluc- 170 - Non-federal — 135 —• tuated around the historically low level of 4 per- 165 - - 130 cent even as real interest rates rose. Meanwhile, the 1 1 i i i 1 1 1 1 1 1 1 1 Nasdaq composite index's earnings-price ratio (using 1989 1991 1993 1995 1997 1999 actual twelve-month trailing earnings) plummeted NOTE. The data are annual. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 181 9 percent. Meanwhile, the dramatically increased M3: Annual range and actual level federal budget surplus allowed the Treasury to reduce Trillions of dollars its outstanding debt about 2 percent. These movements follow the pattern of recent years whereby increases in the debt of households, businesses, and state and local governments relative to GDP have come close to matching declines in the federal government share, consistent with reduced pressure on available savings from the federal sector facilitating private borrowing. After increasing for several years, the share of total credit accounted for by depository institutions leveled out in 1999. Growth in credit extended by those institutions edged down to 6V2 percent from 63A per- I I I I I I I I I I I I I I I I cent in 1998. Adjusted for mark-to-market account- O N DJ F M A MJ J A S O N DJ ing rules, bank credit growth retreated from 10XA per- 1998 1999 2000 cent in 1998 to 5XA percent last year, with a considerable portion of the slowdown attributable to an unwinding of the surge in holdings of non-U.S. The Monetary Aggregates government securities, business loans, and security loans that had been built up during the market disrup- Growth of the broad monetary aggregates moderated tions in the fall of 1998. Real estate loans constituted significantly last year. Nevertheless, as was expected one of the few categories of bank credit that acceler- by the FOMC last February and July, both M2 ated in 1999. By contrast, thrift credit swelled 9 per- and M3 finished the year above their annual pricecent, up from a AV2 percent gain in 1998, as rising stability ranges. M3 rose IV2 percent in 1999, somemortgage interest rates led borrowers to opt more what outside the Committee's range of 2 percent frequently for adjustable-rate mortgages, which to 6 percent but far below the nearly 11 percent thrifts tend to keep on their books. The trend toward pace of 1998. M3 growth retreated early in 1999, as securitization of consumer loans continued in 1999: the surge in depository credit in the final quarter of Bank originations of consumer loans were up about 1998 unwound and depository institutions curbed 5 percent, while holdings ran off at a VA percent their issuance of the managed liabilities included pace. in that aggregate. At that time, the expansion of 4. Growth of money and debt Percent Domestic Period Ml M2 M3 nonfinancial debt Annual1 1989 .6 5.2 4.1 7.4 1990 4.2 4.2 1.9 6.7 1991 7.9 3.1 1.1 4.5 1992 14.4 1.8 .6 4.5 1993 10.6 1.4 1.0 4.9 1994 2.5 .6 1.7 4.9 1995 -1.5 3.9 6.1 5.5 1996 -4.5 4.5 6.8 5.4 1997 -1.2 5.6 8.9 5.2 1998 2.2 8.5 10.9 6.7 1999 1.9 6.2 7.5 6.6 Quarterly (annual rate)2 1999:1 1.9 7.5 8.2 6.7 2 2.2 6.0 6.0 6.9 3 -2.0 5.5 5.1 6.0 4 5.3 5.4 10.0 6.2 NOTE. Ml consists of currency, travelers checks, demand deposits, and other standing credit market debt of the U.S. government, state and local governcheckable deposits. M2 consists of M1 plus savings deposits (including money ments, households and nonprofit organizations, nonfinancial businesses, and market deposit accounts), small-denomination time deposits, and balances in farms. retail money market funds. M3 consists of M2 plus large-denomination time 1. From average for fourth quarter of preceding year to average for fourth deposits, balances in institutional money market funds, RP liabilities (overnight quarter of year indicated. and term), and eurodollars (overnight and term). Debt consists of the out- 2. From average for preceding quarter to average for quarter indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
182 Federal Reserve Bulletin • March 2000 M2: Annual range and actual level in the year. Early in 2000, these effects began to unwind. Trillions of dollars M2 increased 6XA percent in 1999, somewhat above Dec. the FOMC's range of 1 percent to 5 percent. Both the easing of elevated demands for liquid assets that had boosted M2 in the fourth quarter of 1998 and a rise in its opportunity cost (the difference between interest rates on short-term market instruments and the rates available on M2 assets) tended to bring down M2 growth in 1999. That rise in opportunity cost also helped to halt the decline in M2 velocity that had begun in mid-1997, although the 13A percent (annual rate) rise in velocity over the second half of 1999 was not enough to offset the drop in the first half of the year. Within M2, currency demand grew briskly over O N D J F M A MJ J A S O N DJ the year as a whole, reflecting booming retail sales 1998 1999 2000 and, late in the year, some precautionary buildup for Y2K. Money stock currency grew at an annualized institution-only money funds also slowed with the rate of 28 percent in December and then ran off in the ebbing of heightened preferences for liquid assets. weeks after the turn of the year. However, M3 bulged again in the fourth quarter In anticipation of a surge in the public's demand of 1999, as loan growth picked up and banks for currency, depository institutions vastly expanded funded the increase mainly with large time deposits their holdings of vault cash, beginning in the fall and other managed liabilities in M3. U.S. bran- to avoid potential constraints in the ability of the ches and agencies of foreign banks stepped up issu- armored car industry to accommodate large currency ance of large certificates of deposit, in part to aug- shipments late in the year. Depositories' cash drawment the liquidity of their head offices over the ings reduced their Federal Reserve balances and century date change, apparently because it was drained substantial volumes of reserves, and, in midcheaper to fund in U.S. markets. Domestic banks December, large precautionary increases in the Treaneeded the additional funding because of strong loan sury's cash balance and in foreign central banks' growth and a buildup in vault cash for Y2K contin- liquid investments at the Federal Reserve did as well. gencies. Corporations apparently built up year-end The magnitude of these flows was largely anticipated precautionary liquidity in institution-only money by the System, and, to replace the lost reserves, funds, which provided a further boost to M3 late during the fourth quarter the Desk entered into a number of longer-maturity repurchase agreements timed to mature early in 2000. The Desk also M2 velocity and the opportunity cost of holding M2 executed a large number of short-term repurchase transactions for over the turn of the year, including Ratio scale Percentage points, ratio scale some in the forward market, to provide sufficient reserves and support market liquidity. 2.1 — M2 velocity V. The public's demand for currency through year- / ^ 25 2.0 - end, though appreciable, remained well below the level for which the banking system was prepared, and / M2 - 10 1.9 — vault cash at the beginning of January stood about / / coopspot rtunity A $38 billion above its year-ago level. This excess vault 1.8 - / /V / yv - 3 cash, and other century date change effects in money and reserve markets, unwound quickly after the >J / ^ 2 1.7 L 1 smooth transition into the new year. \ / ~~ i 1 ! 1 1 I I I !! t 1 M 1 11 1 M M 1 1979 1984 1989 1994 1999 International Developments NOTE. The data are quarterly and extend through 1999:Q4. The velocity of M2 is the ratio of nominal gross domestic product to the stock of M2. The opportunity cost of M2 is a two-quarter moving average of the difference Global economic conditions improved in 1999 after a between the three-month Treasury bill rate and the weighted average return on year of depressed growth and heightened financial assets included in M2. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 183 market instability. Financial markets in developing was maintained only at the cost of continued high countries, which had been hit hard by crises in Asia real interest rates that contributed to the decline in and Russia in recent years, recovered last year. The real GDP in 1999. In contrast, real GDP in Mexico pace of activity in developing countries increased, rose an estimated 6 percent in 1999, aided by higher with Asian emerging-market economies in particular oil prices and strong export growth to the United bouncing back strongly from the output declines of States. The peso appreciated against the dollar for the the preceding year. Real growth improved in almost year as a whole, despite a Mexican inflation rate all the major industrial economies as well. This about 10 percentage points higher than in the United strengthening of activity contributed to a general rise States. in equity prices and a widespread increase in interest The recovery of activity last year in Asian develrates. Despite stronger activity and higher prices for oping countries was earlier, more widespread, and oil and other commodities, average foreign inflation sharper than in Latin America, just as the downturn was lower in 1999 than in 1998, as output remained had been the previous year. After a steep drop in below potential in most countries. activity in the immediate wake of the financial crises Although the general theme in emerging financial that hit several Asian emerging-market economies in markets in 1999 was a return to stability, the year late 1997, the preconditions for a revival in activity began with heightened tension as a result of a finan- were set by measures initiated to stabilize shaky cial crisis in Brazil. With the effects of the August financial markets and banking sectors, often in con- 1998 collapse of the ruble and the default on Russian junction with International Monetary Fund programs government debt still reverberating, Brazil was that provided financial support. Once financial condiforced to abandon its exchange-rate-based stabiliza- tions had been stabilized, monetary policies turned tion program in January 1999. The real, allowed to accommodative in 1998, and this stimulus, along float, soon fell nearly 50 percent against the dollar, with the shift toward fiscal deficits and an ongoing generating fears of a depreciation-inflation spiral that boost to net exports provided by the sharp depreciacould return Brazil to its high-inflation past. In addi- tions of their currencies, laid the foundation for last tion, there were concerns that the government might year's strong revival in activity. Korea's recovery default on its domestic-currency and dollar-indexed was the most robust, with real GDP estimated to have debt, the latter totaling more than $50 billion. In the increased more than 10 percent in 1999 after falling event, these fears proved unfounded. The turning 5 percent the previous year. The government continpoint appears to have come in March when a new ued to make progress toward needed financial and central bank governor announced that fighting infla- corporate sector reform. However, significant weaktion was a top priority and interest rates were substan- nesses remained, as evidenced by the near collapse of tially raised to support the real. Over the remainder Daewoo, Korea's second largest conglomerate. Other of the year, Brazilian financial markets stabilized Asian developing countries that experienced financial on balance, despite continuing concerns about the difficulties in late 1997 (Thailand, Malaysia, Indonegovernment's ability to reduce the fiscal deficit. Infla- sia, and the Philippines) also recorded increases in tion, although accelerating from the previous year, real GDP in 1999 after declines the previous year. remained under 10 percent. Brazilian economic activ- Indonesian financial markets were buffeted severely ity also recovered somewhat in 1999, after declining at times during 1999 by concerns about political in 1998, as the return of confidence allowed officials instability, but the rupiah ended the year with a to lower short-term interest rates substantially from modest net appreciation against the dollar. The other their crisis-related peak levels of early in the year. former crisis countries also saw their currencies stabilize or slightly appreciate against the dollar. Inflation The Brazilian crisis triggered some renewed finanrates in these countries generally declined, despite the cial stress in other Latin American economies, and pickup in activity and higher prices for oil and other domestic interest rates and Brady bond yield spreads commodities. Inflation was held down by the eleincreased sharply from levels already elevated by vated, if diminishing, levels of excess capacity and the Russian crisis. However, as the situation in unemployment and by a waning of the inflationary Brazil improved, financial conditions in the rest of impact of previous exchange rate depreciations. the region stabilized relatively rapidly. Even so, the combination of elevated risk premiums and dimin- In China, real growth slowed moderately in 1999. ished access to international credit markets tended to Given China's exchange rate peg to the dollar, the depress activity in much of the region in the first half sizable depreciations elsewhere in Asia in 1997 and of 1999. Probably the most strongly affected was 1998 led to a sharp appreciation of China's real Argentina, where the exchange rate peg to the dollar effective exchange rate, and there was speculation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
184 Federal Reserve Bulletin • March 2000 last year that the renminbi might be devalued. How- further rise in U.S. external deficits—with the U.S. ever, with China's trade balance continuing in sub- current account deficit moving up toward 4 percent of stantial, though reduced, surplus, Chinese officials GDP by the end of the year—may have tended to maintained the exchange rate peg to the dollar last hold down the dollar because of investor concerns year and stated their intention of extending it through that the associated strong net demand for dollar assets at least this year. After the onset of the Asian finan- might prove unsustainable. So far this year, the dolcial crisis, continuance of Hong Kong's currency- lar's average exchange value has increased slightly, board-maintained peg to the U.S. dollar was also boosted by new evidence of strong U.S. growth. questioned. In the event, the tie to the dollar was Against the currencies of the major foreign industrial sustained, but only at the cost of high real interest countries, the dollar's most notable movements in rates, which contributed to a decrease in output in 1999 were a substantial depreciation against the Japa- Hong Kong in 1998 and early 1999 and a decline of nese yen and a significant appreciation relative to the consumer prices over this period. However, real GDP euro. started to move up again later in the year, reflecting in The dollar depreciated 10 percent on balance part the strong revival of activity in the rest of Asia. against the yen over the course of 1999. In the first In Russia, economic activity increased last year half of the year, the dollar strengthened slightly reladespite persistent and severe structural problems. tive to the yen, as growth in Japan appeared to remain Real GDP, which had dropped nearly 10 percent in sluggish and Japanese monetary authorities reduced 1998 as a result of the domestic financial crisis, short-term interest rates to near zero in an effort to recovered about half the loss last year. Net exports jumpstart the economy. However, around midyear, rose strongly, boosted by the lagged effect of the several signs of a revival of activity—particularly the substantial real depreciation of the ruble in late 1998 announcement of unanticipated strong growth in real and by higher oil prices. The inflation rate moderated GDP in the first quarter—triggered a depreciation of to about 50 percent, somewhat greater than the depre- the dollar relative to the yen amid reports of large ciation of the ruble over the course of the year. inflows of foreign capital into the Japanese stock The dollar's average foreign exchange value, mea- market. Data releases showing that the U.S. current sured on a trade-weighted basis against the currencies account deficit had reached record levels in both the of a broad group of important U.S. trading partners, second and third quarters of the year also appeared to ended 1999 little changed from its level at the begin- be associated with depreciations of the dollar against ning of the year. There appeared to be two main, the yen. Concerned that a stronger yen could harm roughly offsetting, pressures on the dollar last year. the fledgling recovery, Japanese monetary authorities On the one hand, the continued very strong growth of intervened heavily to weaken the yen on numerous the U.S. economy relative to foreign economies occasions. So far this year, the dollar has firmed tended to support the dollar. On the other hand, the U.S. dollar exchange rate against the Japanese yen Nominal dollar exchange rate indexes and the euro Index, January 1997 = 100 Index, January 1997 = 100 Euro / _ Restated J\ 120 German mark f \ / 1 110 \ / \ 100 Japanese yen \ , 90 1 1 t 1 1 1997 1998 1999 1997 1998 1999 NOTE. The data are monthly. Indexes are trade-weighted averages of the NOTE. The data are monthly. Restated German mark is the dollar-mark exchange value of the dollar against major currencies and against the currencies exchange rate rescaled by the official conversion factor between the mark and of a broad group of important U.S. trading partners. Last observations are for the the euro, 1.95583, through December 1998. Euro exchange rate as of January first two weeks of February 2000. 1999. Last observations are for the first two weeks of February 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 185 about 7 percent against the yen. Japanese real GDP 25 basis points earlier this month. The euro-area increased somewhat in 1999, following two consecu- inflation rate edged up in 1999, boosted by higher oil tive years of decline. Growth was concentrated in the prices, but still remained below the 2 percent target first half of the year, when domestic demand surged, ceiling. led by fiscal stimulus. Later in the year, domestic Growth in the United Kingdom also moved higher demand slumped, as the pace of fiscal expansion on balance in 1999, with growth picking up over the flagged. Net exports made virtually no contribution course of the year. Along with the strengthening of to growth for the year as a whole. Japanese consumer global demand, the recovery was stimulated by a prices declined slightly on balance over the course of series of official interest rate reductions, totaling the year. 250 basis points, undertaken by the Bank of England The new European currency, the euro, came into over the last half of 1998 and the first half of 1999. operation at the start of 1999, marking the beginning Later in 1999 and early this year, the policy rate was of stage three of European economic and monetary raised four times for a total of 100 basis points, with union. The rates of exchange between the euro and officials citing the need to keep inflation below its the currencies of the eleven countries adopting the 2l/z percent target level in light of the strength of new currency were set at the end of 1998; based on consumption and the housing market and continuing these rates, the value of the euro at its creation was tight conditions in the labor market. On balance, the just under $1.17. From a technical perspective, the dollar appreciated slightly against the pound over the introduction of the euro went smoothly, and on its course of 1999. first day of trading its value moved higher. However, In Canada, real growth recovered in 1999 after the euro soon started to weaken against the dollar, slumping the previous year in response to the global influenced by indications that euro-area growth slowdown and the related drop in the prices of Canawould remain very slow. After approaching parity dian commodity exports. Last year, strong demand with the dollar in early July, the euro rebounded, from the United States spurred Canadian exports partly on gathering signs of European recovery. How- while rising consumer and business confidence supever, the currency weakened again in the fall, and in ported domestic demand. In the spring, the Bank of early December it reached parity with the dollar, Canada lowered its official interest rate twice for a about where it closed the year. The euro's weakness total of 50 basis points in an effort to stimulate late in the year was attributed in part to concerns activity in the context of a rising Canadian dollar. about the pace of market-oriented structural reforms This decline was reversed by 25-basis-point increases in continental Europe and to a political wrangle over near the end of the year and earlier this month, as the proposed imposition of a withholding tax on Canadian inflation moved above the midpoint of its investment income. On balance, the dollar appreci- target range, the pace of output growth increased, and ated 16 percent relative to the euro over 1999. So U.S. interest rates moved higher. Over the course of far this year, the dollar has strengthened 2 percent 1999, the U.S. dollar depreciated 6 percent on balfurther against the euro. Although the euro's for- ance against the Canadian dollar. eign exchange value weakened in its first year Concerns about liquidity and credit risk related to of operation, the volume of euro-denominated the century date change generated a temporary bulge transactions—particularly the issuance of debt in year-end premiums in money market rates in the securities—expanded rapidly. second half of the year in some countries. For the In the eleven European countries that now fix their euro, borrowing costs for short-term interbank fundcurrencies to the euro, real GDP growth remained ing over the year changeover—as measured by the weak early in 1999 but strengthened subsequently interest rate implied by the forward market for a and averaged an estimated 3 percent rate for the year one-month loan spanning the year-end relative to the as a whole. Net exports made a significant positive rates for neighboring months—started to rise in late contribution to growth, supported by a revival of summer but then reversed nearly all of this increase demand in Asia and Eastern Europe and by the in late October and early November before moveffects of the euro's depreciation. The areawide ing up more moderately in December. The sharp unemployment rate declined, albeit to a still-high rate October-November decline in the year-changeover of nearly 10 percent. In the spring, the European funding premium came in response to a series of central bank lowered its policy rate 50 basis points, to announcements by major central banks that outlined 2VI percent. This decline was reversed later in the and clarified the measures these institutions were year in reaction to accumulating evidence of a pickup prepared to undertake to alleviate potential liquidity in activity, and the rate was raised an additional problems related to the century date change. For yen Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
186 Federal Reserve Bulletin • March 2000 Forward premium for deposits over year-end Foreign ten-year interest rates Basis points Percent Euro LIBOR -•v United Kingdom Canada 120 — 6 90 — 4 60 Germany 30 -* Japan J 1 I I I J_ 1 1 1 11 1 1997 1998 1999 Yen LIBOR NOTE. The data are monthly. Last observation is for the first two weeks of February 2000. 500 Equity prices showed strong and widespread 300 increases in 1999, as the pace of global activity quickened and the threat from emerging-market financial crises appeared to recede. In the industrial 100 countries equity prices on average rose sharply, extending the general upward trend of recent years. The average percentage increase of equity prices in developing countries was even larger, as prices recov- June July Aug. Sept. Oct. Nov. Dec. ered from their crisis-related declines of the previ- 1999 ous year. The fact that emerging Latin American and NOTE. The data are daily. Year-end premium measured by the interest rate on a one-month instrument spanning the year-end relative to the rates for neighbor- Asian equity markets outperformed those in indusing months. Last observation is for December 29, 1999. trial countries lends some support to the view that global investors increased their risk tolerance, espefunding, the century date change premium moved in cially during the last months of the year. a different pattern, fluctuating around a relatively low Oil prices increased dramatically during 1999, fully level before spiking sharply for several days just reversing the declines in the previous two years. The before the year-end. The late-December jump in the average spot price for West Texas intermediate, the yen funding premium was partly in response to date change-related illiquidity in the Japanese government bond repo market that emerged in early December Foreign equity indexes and persisted into early January. To counter these conditions, toward the end of the year the Bank of Index, January 1997 = 100 Japan infused huge amounts of liquidity into its domestic banking system, which soon brought short- 200 term yen funding costs back down to near zero. Bond yields in the major foreign industrial coun- Europe / tries generally moved higher on balance in 1999. y —^ > 160 Long-term interest rates were boosted by mounting v Latin America / evidence that economic recovery was taking hold A V -/ 120 abroad and by rising expectations of monetary tightening in the United States and, later, in other indus- Japan V S ^ — 80 trial countries. Over the course of the year, long-term Developing Asia interest rates increased on balance by more than 100 basis points in nearly all the major industrial 1 1 ' \ 1 1 1997 1998 1999 countries. The notable exception was Japan, where NOTE. The data are monthly. Last observation is for the first two weeks of long-term rates were little changed. February 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Monetary Policy Report to the Congress 187 U.S. benchmark crude, more than doubled, from further on speculation over a possible extension of around $12 per barrel at the beginning of the year to current OPEC production targets and the onset of more than $26 per barrel in December. This rebound unexpectedly cold weather in key consuming regions. in oil prices was driven by a combination of strength- The price of gold fluctuated substantially in 1999. ening world demand and constrained world supply. The price declined to near a twenty-year low of about The strong U.S. economy, combined with a recovery $250 per ounce at midyear as several central banks, of economic activity abroad and a somewhat more including the Bank of England and the Swiss normal weather pattern, led to a 2 percent increase National Bank, announced plans to sell a sizable in world oil consumption. Oil production, on the portion of their reserves. The September announceother hand, declined 2 percent, primarily because of ment that fifteen European central banks, including reduced supplies from OPEC and other key produc- the two just mentioned, would limit their aggregate ers. Starting last spring, OPEC consistently held pro- sales of bullion and curtail leasing activities, saw the duction near targeted levels, in marked contrast to the price of gold briefly rise above $320 per ounce before widespread lack of compliance that characterized ear- turning down later in the year. Recently, the price has lier agreements. So far this year, oil prices have risen moved back up, to above $300 per ounce. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
188 Industrial Production and Capacity Utilization: Recent Developments and the 1999 Revision Charles Gilbert, Norman Morin, and Richard of computers, semiconductors, and communications Raddock, of the Board's Division of Research and equipment accounted for more than half the growth. Statistics, prepared this article. Matt Wilson provided The rate of increase in the output and capacity of research assistance. these industries is now estimated to have been more rapid than previously shown, especially in 1998. In late 1999, the Federal Reserve published revised Apart from computers and semiconductors, industrial measures of industrial production (IP), capacity, and production increased about 2 percent annually over capacity utilization for the period January 1992 the period, with little change in 1998 and a gain of through October 1999. The production index for the 1.8 percent in 1999 (table A.3). third quarter of 1999 is now at 137.7 percent of The updated measures reflect both the incorporaoutput in 1992, compared with 135.2 percent reported tion of newly available, more comprehensive source before the annual revision, and the capacity index data typical of annual revisions and the introduction is 170.7 percent of output in 1992, compared with of improved methods for compiling a few series. The 167.9 percent reported previously. The rate of indus- new source data are for recent years, primarily from trial capacity utilization—the ratio of production to 1997 on, and the modified methods affect data begincapacity—was revised up 0.1 percentage point, to ning in 1992. In addition, the supplementary series on 80.7 percent for the third quarter of 1999. See chart 1. the gross value of products are now expressed in (Summary data as of January 14, 2000, for total 1996 dollars; these series begin in 1977. industry and manufacturing are shown in appendix The updated IP measures included annual data tables A.l and A.2.) from selected editions of the 1998 Current Industrial Total industrial output increased at an annual rate Reports of the Bureau of the Census and available of 4.5 percent, on average, over 1995-99. The output preliminary data for about 15 percent of manufacturing from the 1997 Census of Manufactures. Annual data from the U.S. Geological Survey on metallic NOTE. Other contributors to the revision and this article include the following: Ana Aizcorbe, Cynthia Bansak, William Cleveland, Carol and nonmetallic minerals (except fuels) for 1997 and Corrado, Mark Doms, Maura Doyle, Marcello Estevao, Gloria 1998 were also introduced. The updating included Fennell, Meredith Krug, Marc Lanoue, Susan Polatz, and Dixon Tranum. revisions to the monthly indicator for each industry 1. Industrial production, capacity, and utilization Ratio scale, 1992 output = 100 Percent of capacity Revised Earlier 160 Capacity — 140 — 85 — 120 ^r Production » Utilization — 80 100 ' 1 1 1 1 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 t i ll I 1 1 1 1988 1990 1992 1994 1996 1998 2000 1988 1990 1992 1994 1996 1998 2000 NOTE. The production indexes and utilization rates are seasonally adjusted. All the revised measures extend through December 1999; the earlier measures extend through October 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
189 (physical product data, production-worker hours, or ter of the year, suggested that manufacturing utilielectric power usage) and revised seasonal factors. zation rates were generally in line with previous The revision introduced improved methods for Federal Reserve estimates. However, dividing the measuring the production of computer and office upwardly revised industrial production indexes for equipment and of motor vehicles. The new monthly the computer, semiconductor, and communications production measure for computers is derived from equipment industries by the Census utilization rates detailed information on the major products produced yielded a noticeable upward revision of capacity in by the industry. The new measures of motor vehicle those industries. production incorporate price weights for the different The capacity utilization rate for mining was models of light vehicles; previously, all models of revised very little; the rate of utilization in electric autos were weighted equally and all light trucks were utilities was revised downward by 1.5 percentage weighted equally in compiling an aggregate figure, points for the third quarter of 1999. which was eventually benchmarked to comprehensive Census data. PRODUCTION BY MARKET GROUPS The updated capacity and capacity utilization measures incorporated preliminary data on industry utili- The rate of increase of industrial production accelerzation rates from the 1998 Survey of Plant Capacity ated in 1996 and 1997 and then slowed between of the Bureau of the Census, which covers manu- 1998:Q1 and 1999:Q1 (table A.l). The slowing facturing. Also included were updated data on capac- reflected the effects of the economic turmoil in Asia ity, expressed in physical units, from the U.S. Geo- on a number of industries, particularly within busilogical Survey, the Department of Energy, and other ness equipment, nondurable consumer goods, and organizations. materials (chart 2). As Asian economies began to The Survey of Plant Capacity is the source of recover in 1999, the economic outlook for some of utilization rates for most manufacturing industries. the weakened U.S. industries brightened as well. The preliminary results of the 1998 survey, which Among major market groups, the revised producprovided industry utilization rates for the fourth quar- tion index for consumer durable goods has advanced 2. Industrial production, market groups, 1989-99 Ratio scale, 1992 = 100 Ratio scale, 1992; = 100 _ Consumer goods Intermediate products 155 — 155 — uAl 145 — — 145 r y — 135 ' — 135 Durable - a_ / » Construction supplies f* — W — 125 — / r — 125 — J — 115 — .A A// ' — 115 — 105 — 105 " \Vnv,|» Business supplies VViTi^ / w N o n d u r a b le 95 95 1 1 r 1 1 1 1 1 1 i l l! 1 1 1 1 1 1 1 1 1 1 1 1 I Equipment Materials ^r — 190 — 190 — 170 — — 170 — 150 — jS — 150 Business Durable goods -y — 130 — 130 — 110 ' — 110 — N o n d u r a b le goods and energy — Defense and space — 90 — 90 1 1 t 1 1 1 1 1 1 i i I I 1 1 1 1 1 1 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
190 Federal Reserve Bulletin • March 2000 strongly in recent years, as the low rate of unemploy- output of energy materials fell about 1 percent in ment and rising income have bolstered the demand 1998 and had regained only a portion of that decrease for consumer goods. The index, which had risen at by the end of 1999. an annual rate of 5 percent or more during 1997 and 1998, rose at an annual rate of 7.2 percent in 1999. PRODUCTION BY INDUSTRY GROUPS During 1999, the output of automotive products, especially light trucks, continued upward from the During the past five years, the growth of industrial high level at the end of 1998. At the same time, the production continued to be concentrated in durable series for household appliances fluctuated at a high manufacturing, which advanced 11.4 percent in level, and the series for carpeting and furniture, on 1997 before gradually easing to 7.0 percent in 1999 balance, moved upward. After a pause in mid-1997, (table A.4). The relatively strong expansion in this the production of home electronics, including comsector has been supported by the sustained rapid puters, surged upward at an annual rate of about increases in the output of computers, semiconductors 45 percent. and related electronic components, and communica- The nondurable consumer goods group, which tions equipment. Production in these high-technology experienced a broadly based decline in the second industries increased, on average, approximately half of 1998, stabilized in 1999 as an increase in the 40 percent per year from 1995 to 1999. The output of output of consumer energy products offset ongoing other manufacturing industries was unchanged over weakness elsewhere. Producers of cigarettes, cloththe four quarters of 1998 and then edged up in 1999. ing, and paper products suffered setbacks in the past In 1998, the economic troubles in Asia reduced, two years; in addition, the output of consumer chemieither through higher import volume or lower export cals increased slowly, on balance, after strong gains volume, the domestic production of iron and steel, in 1995-97. Despite a weak performance for the year some chemicals, and other internationally traded as a whole,'the production of some non-energy nongoods. Although many of these industries began to durable consumer goods, including consumer chemirecover last year, the production of civilian aircraft, cals, picked up noticeably in the fourth quarter of which had been a source of strength, declined from 1999. late 1998 on. Production in mining and utilities eased The output of business equipment has been boosted in 1998 but showed less weakness in 1999. by gains in the output of business computers and office equipment that averaged more than 50 percent per year from 1996 on. This market group's increases CAPACITY AND CAPACITY UTILIZATION slowed in 1999 because of declines in the output of industrial equipment, farm equipment, and transit The annual rate of capacity growth in manufacturing, equipment, particularly railroad equipment and com- which averaged 6.1 percent per year in 1996 and mercial aircraft and ships. The production of defense 1997, accelerated to 7.0 percent in 1998 and then and space equipment resumed its decline in 1999 eased to 4.7 percent in 1999 (table A.5). The most after an uptick in 1998. rapid expansions of capacity and the upward revi- After having risen more slowly in 1997, the output sions of earlier estimates were again concentrated of construction supplies accelerated in 1998 and early in durable manufacturing, especially in the com- 1999, when it was lifted to an elevated level by puter, communications equipment, and semiconducstrong demand for housing and by unusually mild tor industries. The capacity increase in these indusweather, and then flattened in mid-1999. The output tries averaged more than 40 percent per year over of industrial materials slowed in 1998, as increased 1995-99. The rest of the manufacturing sector import competition and decreased foreign demand increased capacity approximately 2% percent in 1995 resulting from the Asian economic crisis reduced and 1996, 3 percent in 1997 and 1998, and IVs peroutput of internationally traded commodities such as cent in 1999. The capacity expansion in mining and steel, paper, and chemicals. Output picked up again utilities was slower; in particular, the capacity in oil in 1999. In contrast, the output of durable materials, and gas extraction and metal mining declined in which include the fast-growing series for computer 1999, whereas that for utilities increased 1.4 percent. parts and semiconductors, advanced 7.3 percent in The North American Electric Reliability Council still 1998 and 9.3 percent in 1999. With a solid rebound projects increases in capacity that will fall short of in the production of chemical and paper materials, probable increases in demand. the output of nondurable materials, after having The rate of manufacturing capacity utilization— declined in 1998, increased 4.9 percent in 1999. The the ratio of output to capacity—was revised up Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 191 0.1 percentage point in the fourth quarter of 1998 and 0.3 percentage point in the third quarter of 1999 Data Availability (table A.6). Utilization in manufacturing in the fourth quarter of 1999 was 80.3 percent, a level 0.8 percent- Files containing the revised industrial production and age point lower than the 1967-98 average. The rates capacity utilization data are available on the Board's web site (www.federalreserve.gov/releases/gl7) and on disin both primary- and advanced-processing industries kettes from Publications Services (telephone 202-452fell a few percentage points from the fourth quarter of 3245). The revised data are also available through the 1997 to the fourth quarter of 1999. STAT-USA web site of the Department of Commerce Utilization in mining fell substantially in 1998 and (www.stat-usa.gov). Further information on these revi- 1999 because of declines in oil and gas well drilling sions is available from the Board's Industrial Output and in metal mining. In the fourth quarter, utilization Section (telephone 202-452-3197). rates in mining and gas utilities were at below- A document with printed tables of the revised estiaverage levels; in contrast, the rate of utilization in mates of series shown in the G. 17 release is available on electric utilities was 95.8 percent, still a high level. request to the Industrial Output Section, Mail Stop 82, Division of Research and Statistics, Board of Governors of the Federal Reserve System, Washington, DC 20551. TECHNICAL ASPECTS OF THE ANNUAL REVISION equipment for the home (in consumer durables), and The revision incorporated the updating of the com- computer parts (in equipment parts within durable prehensive annual data and of the revised monthly goods materials). However, whereas monthly input source data used in the estimation of production, measures were previously used, quarterly data from capacity, and utilization. More-up-to-date results Dataquest, covering unit sales and unit values for an were obtained from the 1997 Census of Manufac- average of about 450 distinct computer models in any tures, the 1998 Survey of Plant Capacity, other annual quarter, are now used to estimate the real output of industry reports, recent information on prices, and the computer industry. These new data show a faster revised monthly source data on physical products and rise in output in recent years and indicate that a larger on labor and electricity inputs.1 In addition, the meth- share of output has been sold for home use than ods for estimating output for several industries were indicated by the previously published indexes. changed; however, the changes in structure in IP These individual computer series are now calculeave the number of individual series at 267. Along lated from detailed quarterly data on unit sales and with the individual production series and seasonal unit values for three types of computers: PCs, notefactors, the annual value-added weights used in book computers, and computer servers and mainaggregating the indexes to market and industry frames. The IP series for home computers is develgroups were updated. (See box "Data Availability.") oped from data on PCs and notebooks sold to consumers; for business computers the IP series is developed from data on PCs and notebooks sold to Changes to Individual Production Series businesses and all sales of servers and mainframes. Data on overall sales of the three types of computers, Computers regardless of the purchaser, are used to estimate the IP series for computer parts. This revision includes a new method for estimating Each new IP index for computer production is a computer production. The index of the computer and measure of real output computed using a current office equipment industry (SIC 357) continues to be dollar estimate of production and a constant-quality based on the aggregate of three components: office price index. The nominal value of production is and computing equipment for business (in the market computed as the sum of the estimated nominal value group for business equipment), office and computing of production of each relevant computer model destined for a specific market segment. Because the quarterly data from Dataquest cover sales and not production, the estimates of nominal production for each computer model must be derived. Annual 1. Information about the sources of monthly data used to calculate the indexes can be found in table 1 in "Industry structure of industrial production-sales relationships are estimated for all of production: classification, value-added weights, and description of the major product lines in the industry (IBM noteseries" on the Board's web site (http://www.federalreserve.gov/gl7/ books, Dell PCs, Compaq servers, and so on) by About.htm). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
192 Federal Reserve Bulletin • March 2000 combining the detailed Dataquest data with the 3. Growth in computer output, 1996-99 Census Bureau's microdata on domestic production Percent of computers in its Longitudinal Research Database. These relationships, available through 1997, are extrapolated and interpolated and then applied to the quarterly data on computer sales. The constant-quality price indexes for domestic sales of personal computers and servers and mainframes are computed as Fisher price indexes, treating each model of computer as a separate good; a producer price index from the Bureau of Labor Statistics (BLS) was used for notebook computers. The Fisher price indexes computed using the detailed Dataquest data are similar to estimates derived from "hedonic" 1996 1997 1998 1999 regressions. These regressions are used to estimate the value of the different features of computers (such NOTE. Data are fourth quarter to fourth quarter. The growth for the previous series in 1999 is measured (annualized basis) from 1998:Q4 to October 1999. as CPU speed, memory, and so on), which are then used to derive a constant-quality price index for computers. tion of light trucks to have risen more rapidly over The new quarterly production index for computers 1992-99. These revisions reflect the changes in (chart 3) rises considerably faster in 1998 and 1999 the product mix that have occurred in the 1990s. In than previously reported. The surge in 1998 was particular, the production and demand for light trucks, broad-based across computer platforms. Early in especially expensive sport-utility vehicles, skyrock- 1999, the production of PCs for home use spiked eted over this period, resulting in a pronounced shift when demand was spurred by rapidly falling prices. in the product composition and in the relative prices Later in the year, the production of servers increased of light vehicles. These revisions to the indexes for markedly. In 1999, the expansion of computer pro- autos and light trucks were largely offsetting, so the duction returned to about the same rates that pre- aggregate indexes were little changed. vailed from 1994 to 1997. Changes in Other Series Autos and Light Trucks The monthly indicators for four other series have The method for deriving the output of autos and light changed in this revision. Beginning with data for trucks (SIC 3711 pt., 3 pt.) was improved to capture 1992, the series on bolts and fasteners (SIC 345) in a more timely way shifts in the product mix and and on metalworking machinery (SIC 354) use relative values. Before this revision, the production production-worker hours in the respective industry as indexes for autos and for light trucks were calculated a monthly indicator; previously, the series had been from simple counts of units assembled, and an aggre- based on electric power consumption. Effective in gate index was benchmarked to comprehensive out- 1997, the monthly indicators for railroad equipment put measures derived from data in the Census of (SIC 374) and for flat glass (SIC 321) are also Manufactures and the Annual Survey of Manufac- production-worker hours; previously, they were based tures. In this procedure, variations in relative values, on quarterly physical product data that are no longer resulting at least in part from shifts in the product collected. (See box "Source Data in Monthly IP") mix, were often captured only during the annual revision process. In this revision, the IP indexes for autos and light New Annual Data trucks from 1992 forward are computed as annually weighted Fisher quantity indexes; the calculations This annual revision incorporated a smaller increuse data for each vehicle model that include the ment of new annual data than is usual for an annual number of units assembled monthly and the list price revision. A typical revision includes new comprehenat the start of the new model year. Compared with the sive annual source data on the output of all manufacprevious index, the revised index shows the output of turing industries as well as on the output of the metal autos to have increased more slowly and the produc- mining and nonmetallic minerals industries. In this Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 193 American Industrial Classification System (NAICS) Source Data in Monthly IP and data classified by the U.S. Standard Industrial Classification (SIC) were an auxiliary product, the The source data for the industrial production index for a new data covered only about 15 percent of the IP month become available over several months (see table). series. A full set of 1997 annual indexes, as well as After the first estimate for a month is published—about partial results for 1998, should be incorporated in the 15 days after the end of the relevant month—the data annual revision published this year. The Federal are subject to revision for the next three months. The Reserve plans to issue IP indexes grouped on a gradual availability of source data accounts for the series NAICS basis in late 2001. of revisions. The major types of source data for the industrial production index are physical product data, production-worker hour data, and electric power use data. Weights The first estimate of IP for a month includes data on both physical product measures of output (20 percent of The IP index is an annually weighted Fisher index.2 the overall index in 1999) and production-worker hours The weights are expressed as annual unit value (28 percent of the index). Electric power use data and added, that is, value added (an annual series in doladditional physical product data become available for the lars) divided by an IP index for the year. In this second estimate of IP for a month; with this first revision revision, the annual value-added data were updated to a month, source data are unavailable only for about if available (table A.7). For the period after the latest 15 percent of IP. Additional monthly and quarterly physiavailable value-added data, the unit-value-added figcal product data become available during the next two ures were estimated from available data on producer months, bringing the physical product content of IP up to prices through the most recent year and then extrapo- 43 percent by the fourth estimate for the month and to 45 percent after an annual revision. lated for the following year. The available reports from the 1997 Census of Proportion of industrial production covered by data Manufactures as well as revenue and expense data available in successive monthly estimates, 1999 reported by the Department of Energy and the Ameri- Percent can Gas Association provided industry value-added Month of estimate data for selected manufacturing industries and utili- TTyyppee ooff ddaattaa ties through 1997. The latest value-added data for 1st 2nd 3rd 4th mining come from selected reports from the Census Physical product 20' 31 422 43 of Mineral Industries for 1997; otherwise, the 1992 Production-worker hours 283 28 28 28 Electric power use 0 26 26 26 Census was the source. Federal Reserve estimates4' 53 15 4 35 Total industrial production 100 100 100 100 1. Includes provisional series totaling nearly 13 percent of IP that are Revised Monthly and Quarterly Data derived from weekly data and for which the actual data may lag several months. 2. Includes quarterly data totaling 6 percent of IP that, on average, are The monthly and quarterly physical product data that received for the third estimate of industrial production. Specifically, data are used to measure the high-frequency movements are available for the second estimate of the last month of a quarter, the third estimate of the second month of a quarter, and the fourth estimate of of many IP indexes were updated to capture data the first month of a quarter. that became available after the close of the regular 3. This figure refers only to those individual series that both initially and ultimately are based on the hours data. four-month reporting window. Monthly data on 4. Estimates for series not yet covered by data for physical product, production-worker hours or sales of electric power in production-worker hours, or electric power use. 5. Includes monthly and quarterly physical product data totaling 2 per- kilowatt-hours to industry groups, along with esticent of IP that typically are available too late for inclusion in the current mates of trends in output per worker-hour or kilowattindex. hour, are used to indicate the monthly change in output for many individual IP indexes. The Bureau of Labor Statistics benchmark of the employment data annual revision, however, additional annual observa- for March 1998 was incorporated in this revision. tions were available for only a small number of manufacturing industries because results from the 1997 Census of Manufactures were available for only a portion of manufacturing. In addition, because the 2. The aggregation procedures are described by Carol Corrado, primary establishment classification system used Charles Gilbert, and Richard Raddock in "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments," by the Census of Manufactures was the new North Federal Reserve Bulletin, vol. 83 (February 1997), pp. 67-92. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
194 Federal Reserve Bulletin • March 2000 Revised data on the sales of electricity to industries the models better captures advances in technology since 1992 were incorporated as well. Because of that are "embodied" in capital goods. In addition, the offsetting revisions among the component series, procedures for estimating capacity series for light through 1997 the annual revisions of the growth of vehicles and semiconductors were modified. total electric power use were generally small; compared with the pre-revision estimates, electric power use now decreases more in 1998 and falls less rapidly in 1999 (table A.8).3 Capacity Estimation Procedure The largest effect of these changes on IP resulted The Federal Reserve Board's capacity indexes from the incorporation of new data on semiconductor attempt to capture the concept of sustainable maxioutput and prices for 1998. Compared with the premum output—the greatest level of output a plant can vious estimate, the real output of the semiconductor maintain within the framework of a realistic work industry is now shown to have risen nearly twice as schedule after factoring in normal downtime and fast in 1998 and almost one-third faster in 1999. The assuming sufficient availability of inputs to operate measure of real output of semiconductors is derived the capital in place. The concept itself generally from an estimate of the nominal value of U.S. producconforms to that of a full-input point on a production tion and a price index.4 The revisions to output result function, with the qualification that capacity repreprimarily from the incorporation of quarterly price sents a sustainable maximum rather than some higher data for 1998 for two important types of devices: unsustainable short-term maximum. Capacity estimemory chips and computational microprocessors. mates for most manufacturing industries are based These price indexes are calculated once a year when on responses to the Survey of Plant Capacity (SPC), detailed quarterly data for the previous year become conducted by the Census Bureau and partially funded available. In the meantime, these price indexes are by the Federal Reserve. These industries account for estimates based on producer price indexes for these a little less than 80 percent of total industrial capacdevices from the BLS.5 ity. Capacity and output data reported in physical units from government and trade sources are available for portions of several industries within manufacturing (paper, industrial chemicals, petroleum Measurement of Capacity refining, primary metals, and motor vehicles) as well as for electric utilities and a portion of mining. In the The revisions to capacity and utilization incorporated absence of utilization data for some mining series, the revised production indexes, the preliminary capacity is based on trends through peaks in producresults of the 1998 Survey of Plant Capacity, and tion. Overall, capacity indexes are constructed for updated measures of capacity in physical units for seventy-eight detailed industries (fifty-five in manuselected industries. In addition, improvements in the facturing, twenty-one in mining, and two in utilities), capital input measures and in the models used to which mostly correspond to industries at the two- and estimate manufacturing capacity were introduced. three-digit SIC level. The new capital flows table for 1992 of the Bureau of Economic Analysis was incorporated into our esti- Six general steps are involved in calculating the mates of capital input.6 The improved specification of utilization rates published by the Federal Reserve. Step 1. Implied capacity indexes (ICAP,) are 3. Seasonal factors for the electric power series have been constructed by dividing a production index (IP,) reestimated by using data through April 1999. Seasonal factors for by a utilization rate (U) for an end-of-year period: worker hours were based on data through October 1999. Factors for t the monthly physical product series were based on data through June ICAP, = IP/U,. For industries whose capacity indexes or later in the summer. are based on the SPC, the calculation is done using 4. The data for the individual devices are aggregated using Fisher fourth-quarter data; for other industries, the calculaaggregation methods. See "Industrial Production and Capacity Utilization: Historical Revision and Recent Developments" for a general tion typically uses December data. These indexes are description of the methodology. expressed, like the industrial production indexes, as a 5. Additionally, the price index for semiconductors was expanded to include information available beginning in 1996 on embedded microprocessors. The market for embedded microprocessors—chips for noncomputer applications, such as cars, video games, and network routers—is relatively small, but it is one of the most rapidly expanding segments of the semiconductor industry. tal Stock Estimates for Manufacturing Industries: Methods and Data," 6. A capital flows table shows the asset composition of each indus- 1996 (http://www.federalreserve.gOv/releases/g 17/capital_stock_doctry's capital spending. See Michael Mohr and Charles Gilbert, "Capi- latest.pdf). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 195 percentage of production in a base year, currently from measures of cyclical variation in the overall 1992.7 economy or industry-specific cyclical variation. The Revisions to the implied capacity indexes can arise differences are, however, correlated with past differfrom either revisions to the industrial production ences for many industries. The implication is that, index or to the utilization rates. For example, in generally, the regression procedure smooths through this revision, the production index for computers correlated noise without discarding useful SPC (SIC 357) displays faster growth because of an information. improvement in the methodology for measuring com- The final annual growth rates for the individual puter output. Consequently, the capacity index for FRB capacity series are generally equal to the growth computers required a similar revision. The revised rates for these baseline capacity estimates. The implied capacity index (IP/U,) fully incorporates the remaining steps translate the baseline estimates into revisions to production and the new data on utiliza- the final monthly individual and aggregate FRB series tion rates. on capacity and utilization. Step 2. The implied capacity indexes are related Step 3. A monthly time series is formed by interto alternative indicators of capacity growth in a polating between the fourth-quarter baseline capacity regression model. The Federal Reserve's estimates of indexes produced by the regression models. A new annual capacity growth at the most detailed level are interpolation procedure, which was introduced in derived from the fitted values of the regression mod- March 1999, allowed capacity growth rates to change els that relate the implied capacity indexes to these smoothly over time; with this revision, the monthly alternative indicators; in general, the regressions are data for 1992 on were reestimated using the new designed to improve the year-to-year changes in the procedure. Previously, monthly capacity figures were implied capacities but to leave their trends intact. computed based on the assumption of a constant For some industries, the alternative indicators growth rate of capacity throughout a year, with poteninclude the physical capacity measures and time tially abrupt changes in growth rates between the last trends. These regressions essentially re-trend the months of one year and the first months of the next. physical capacity estimates to the trend growth path At the most detailed industry level, the new capacity of the preliminary implied capacity indexes. For estimates maintain the same growth rates from fourth industries whose capacity indexes are based on the quarter to fourth quarter that were calculated under SPC, the alternative measures of capacity include the previous procedure. estimates of industry capital input; trends; occasional dummy variables for level shifts, outliers, or trend Step 4. An adjustment may then be applied to breaks; and variables related to the average age of remove capacity that accommodates seasonal swings the capital stock.8 (See box "Modeling Capacity with in output. This adjustment is prominent in the capac- Utilization Rates from the Survey of Plant Capacity" ity index for electric utility generation, in which the for more detail.) margin for summer peak loads is removed from the For industries whose capacity indexes are based on equipment's rated capacity. the SPC, the alternative indicators, such as the capital An adjustment may also be applied to retain conmeasures derived from investment data, come from sistency with historical utilization levels based on the surveys other than the SPC. They should be uncorre- McGraw-Hill/DRI survey, which was the primary cted with the sampling errors for the utilization rates, source of the level of utilization rates from 1954 which would then not be present in the fitted values through the mid-1970s. Generally, utilization rates for the models. The differences between published from the Census survey, now the main source for Federal Reserve capacity measures and implied manufacturing utilization rates, were lower, on avercapacity indexes from the SPC are not predictable age, than those of the discontinued McGraw-Hill/ DRI survey for the fourteen years they overlapped; thus, to maintain continuity, the Federal Reserve utilization rates for major industry totals and subtotals 7. For example, if the production index in the fourth quarter of 1999 is 150 (150 percent of the average of 1992 production) and the differ from those issued by the Census Bureau. related utilization rate is 80 percent, the implied capacity index is 150/0.8 = 187.5. Step 5. The monthly capacity aggregates are con- 8. In the Survey of Plant Capacity, the definitions of capacity have changed somewhat over time. For the 1974-88 period, the utilization structed in three steps: (1) total value added for the rates based on the "preferred capacity" definition are used to con- aggregate is divided by the sum of the component struct the implied capacity indexes; for 1989 to the present, those capacities weighted by unit value added to calculate based on the "full production" definition are used. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
196 Federal Reserve Bulletin • March 2000 Modeling Capacity with Utilization Rates from the Survey of Plant Capacity Capacity indexes for industries that account for nearly The new models relax the implicit assumption in the old 80 percent of total industrial capacity are based on regres- models of a unit coefficient on b and add the variables { sions using results from the Survey of Plant Capacity (SPC). related to the age profile of the capital stock. Given esti- The capacity model for an industry relates its implied mates of the capital measures, these regressions provide a capacity index (ICAP,), constructed by dividing the Federal convenient means of estimating capacity for years beyond Reserve production index for that industry by the time the most recent SPC. series of the Survey of Plant Capacity utilization rates, to The trend terms in the model attempt to capture determindeterministic trends (/), measures of industry capital input istic growth in capital productivity. Additionally, dummy (K t ), variables that capture the age profile of the capital variables are occasionally included to account for a shift stock (A,), and various dummy variables (the D it ). The in trend or in level, or to account for an obvious outlier. natural logarithms of the variables are modeled as Several series have a level shift dummy variable for the post-1994 period, when the sample on which the SPC is log(/G4P,) = a + at + b,log(/Q + c,log(A) based increased about 70 percent, to between 16,000 and 0 x ( 17,000 plants. + Xc/,DJ( + u,. The capital input measures reflect the flow of services derived from the net stocks of productive assets, which, in If the log of capital input is subtracted from both sides in turn, are based on estimates of industry investment in the the expression above, it can be interpreted as a model of various asset categories. The capital input measures are capital productivity at capacity: developed from industry-level investment data from the Census Bureau's Annual Survey of Manufactures and Cenlog (ICAP/K) = a + at + (6,-l)log(/Q + c,log(A,) t t 0 x sus of Manufactures; from new business investment and deflators by asset type derived from the BEA's national income and product accounts; and from the BEA's capital The fitted values from the regression model are used as flows tables (CFTs), which provide a detailed breakdown the baseline estimates of capacity. This procedure attempts of the asset composition of industry-level investment for to capture the measurable changes in capacity that are selected years. Updating estimates of industry-level and reflected in the flow of services from capital formation and asset investment and incorporating the most recent CFT in trends in capital productivity, related to, among other (1992) yielded substantially stronger capital input growth things, the age profile of the capital stock. than previous estimates; from 1992 to 1999, the annual Previously, capacity was modeled such that capital pro- average growth in capital input was revised upward about ductivity was a deterministic function of time and of 0.8 percentage point, to 3.2 percent. dummy variables: The age variable is the ratio of the age of an industry's capital stock relative to its expected service life, given \og(ICAP t /K t ) = a 0 + la,/-' + Zdp it + u t . the mix of assets that compose the stock. This measure, an aggregate annual utilization rate; (2) the resulting Step 6. Utilization rates for the individual series annual utilization rate is then divided into the corre- and aggregates are calculated by dividing the pertisponding IP aggregate to calculate an annual capacity nent monthly production index by the related capacindex; and (3) the annual capacity index is interpo- ity index. lated using an annually weighted Fisher index of its constituent monthly capacity series to derive the Special Methods for Light Vehicles and monthly capacity aggregate.9 For the very recent Semiconductors period, since the latest full year of utilization rate data (1998 in this revision), each monthly capacity Capacity estimates for autos (SIC 371 pt.) and for aggregate is extrapolated by this same Fisher index, light trucks (SIC 371 pt.) are constructed from estiadjusted by a factor that accounts for the differences mates of the peak historical assembly-line speed and in their relative growth rates. the number of hours that can be worked at each plant in the United States. Annual linespeed data and the number of shifts at individual plants are reported in Ward's Automotive Reports. An annual capacity 9. More detail on the aggregation procedure is available in "Indus- count for a plant is calculated by multiplying the peak trial Production and Capacity Utilization: Historical Revision and linespeed by the hours per year that the plant could Recent Developments." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 197 Modeling Capacity with Utilization Rates—Continued expressed as a percentage, represents the portion of the technological change is vintage specific, that is, it is embedaggregate life of a given mix of assets that has been used ded in the design of new equipment and structures, rather up. In several studies, age variables have been used to than affecting all existing inputs in the production process. capture the effect of embodied technological change.1 For manufacturing as a whole, the age of the capital stock in The idea of embodiment is that productivity-augmenting years (left panel) peaked in 1988; for the next few years, a shift in the composition of investment spending toward 1. See, for example, Richard McHugh and Julia Lane, "The Age of shorter-lived assets helped bring down the average age of Capital, the Age of Utilized Capital, and Tests of the Embodiment Hypoth- the capital stock. On balance, however, the age of the stock esis," The Review of Economics and Statistics, vol. 69 (May 1987), of the individual asset classes continued to increase in the pp. 362-67; Richard Nelson, "Aggregate Production Functions and Medium Range Growth Projections," American Economic Review, vol. 54 (Septem- early 1990s until a surge in investment in the mid-1990s ber 1964), pp. 575-606; and Michael Gort, Byong-Hong Bahk, and Rich- drove down the age of the capital stock relative to its ard A. Wall, "Decomposing Technical Change," Southern Economic Journal, vol. 60 (July 1993), pp. 220-34. expected life (right panel). Average age of capital, 1959-99 Years Percent I I M I I I II I 11 1 I I 1 I II I I I I I I 1965 1972 1979 1986 1993 2000 1965 1972 1979 1986 1993 2000 run. Before this revision, all autos and light trucks because their IP index exhibits extraordinarily fast were weighted equally in compiling the aggregate growth; therefore, an implied capacity index based figures. With this revision, the plant-level data are on the IP index is difficult to model beyond using an now aggregated using price weights for the different exponential trend. The new capacity model is based models of light vehicles. The method adopted in this on an implied capacity index constructed by dividrevision better captures shifts in the composition of ing the number of chips produced (based on data vehicles produced. If a plant produces multiple mod- from the Semiconductor Industry Association and the els on one assembly line, the model price attributed Bureau of the Census) by the SPC utilization rate. to this plant is computed as a weighted average of This implied capacity index, instead of the standard model prices according to estimated production lev- one computed using the IP index, is then fitted using els at the plant. The new approach indicates a shift the alternative capacity indicators, such as capital over time toward capacity of more expensive light input. The fitted values from the regression are then trucks. multiplied by the ratio of semiconductor IP to the The capacity index for semiconductors (SIC 3674) chip count. The growth of the ratio is a measure of is estimated slightly differently from the other SPC- quality change in semiconductors. • based indexes. Semiconductors are treated differently Appendix tables begin on page 198. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
198 Federal Reserve Bulletin • March 2000 APPENDIX A: SUMMARY TABLES BASED ON THE G.17 RELEASE, JANUARY 14, 2000 A.l. Revised data for industrial production, capacity, and utilization for total industry, 1987-99 Seasonally adjusted data except as noted Quarter YYeeaarr JJaann.. AAnnnnuuaall avg.1 1 2 3 4 Industrial production (percentage change) 1987 -.6 1.2 .4 .4 .4 .9 .6 .1 -.1 1.4 .3 .6 4.2 6.7 5.6 7.1 4.6 1988 .1 .3 .0 .6 .1 .1 .7 .5 -.4 .3 .8 .5 3.2 3.1 3.9 3.6 4.5 1989 .6 -.8 .9 2 -.6 -.2 -1.0 .4 -.2 -.5 .4 .5 3.8 .5 -4.4 -.1 1.8 1990 -.5 .5 .5 -.6 .4 .0 .0 .2 .1 -.6 -1.3 -.6 2.0 .6 1.0 -5.8 -.2 1991 -.5 -.8 -.9 .3 .8 1.2 .1 .1 1.0 -.1 -.1 -.6 -8.3 1.5 6.2 1.1 -2.0 1992 .0 .6 .8 .8 .2 -.1 .7 -.3 .5 .5 .5 .0 .9 6.5 2.8 4.5 3.1 1993 .4 .4 .2 .4 -.5 .3 .1 -.2 1.1 .5 .4 .7 3.7 1.8 1.4 6.6 3.4 1994 .2 .2 .9 .6 .8 .6 .3 .5 .2 .6 .6 .9 5.1 8.1 5.9 6.6 5.5 1995 .6 -.1 .2 -.1 .4 J -.4 1.2 .4 -.1 .3 .0 5.7 1.6 3.8 3.0 4.9 1996 -.3 1.2 -.2 1.2 .9 .7 .1 .7 .5 -.1 .7 .3 2.3 9.1 5.8 4.3 4.4 1997 .5 .9 .4 .6 .4 .6 .5 .6 .6 .6 .4 .3 6.5 6.7 6.9 6.9 6.4 1998 .2 -.1 .3 .4 .6 -.7 -.1 1.8 .0 .4 -.2 .0 2.4 3.0 2.9 3.3 4.2 1999 .2 .3 .5 .2 .5 .3 .5 .3 .2 1.0 .4 .4 2.0 4.7 4.8 6.6 3.6 Industrial production (index) 1987 90.2 91.2 91.6 92.0 92.4 93.2 93.7 93.8 93.7 95.0 95.3 95.9 91.0 92.5 93.8 95.4 93.2 1988 95.9 96.2 96.3 96.8 96.9 97.0 97.6 98.1 97.8 98.0 98.8 99.3 96.1 96.9 97.8 98.7 97.4 1989 99.8 99.0 100.0 100.2 99.6 99.4 98.4 98.8 98.6 98.2 98.6 99.0 99.6 99.7 98.6 98.6 99.1 1990 98.6 99.1 99.6 99.0 99.4 99.3 99.3 99.5 99.6 99.1 97.7 97.2 99.1 99.2 99.5 98.0 98.9 1991 96.7 95.9 95.0 95.4 96.1 97.2 97.3 97.4 98.4 98.3 98.1 97.5 95.9 96.2 97.7 98.0 97.0 1992 97.6 98.1 98.9 99.7 99.9 99.7 100.5 100.2 100.7 101.2 101.8 101.7 98.2 99.8 100.5 101.6 100.0 1993 102.1 102.6 102.8 103.2 102.7 103.0 103.1 102.9 104.0 104.5 104.9 105.6 102.5 103.0 103.3 105.0 103.4 1994 105.9 106.1 107.0 107.6 108.5 109.2 109.5 110.1 110.3 110.9 111.6 112.7 106.3 108.4 110.0 111.8 109.1 1995 113.3 113.2 113.4 113.3 113.8 114.3 113.8 115.1 115.6 115.5 115.8 115.9 113.3 113.8 114.9 115.7 114.4 1996 115.6 116.9 116.6 118.0 119.0 119.8 119.9 120.7 121.2 121.2 122.1 122.4 116.4 118.9 120.6 121.9 119.4 1997 123.0 124.0 124.5 125.2 125.8 126.6 127.2 128.0 128.8 129.6 130.2 130.6 123.8 125.9 128.0 130.1 127.1 1998 130.9 130.7 131.1 131.7 132.4 131.5 131.3 133.6 133.5 134.1 133.8 133.8 130.9 131.9 132.8 133.9 132.4 1999 134.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.4 139.9 140.5 •134.6 136.1 137.7 139.9 137.2 Capacity (index) 1987 114.0 114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.9 115.0 115.1 115.2 114.1 114.4 114.7 115.1 114.6 1988 115.3 115.5 115.6 115.7 115.8 115.9 116.0 116.2 116.3 116.4 116.5 116.7 115.5 115.8 116.2 116.5 116.0 1989 116.8 117.0 117.2 117.4 117.6 117.8 118.0 118.2 118.4 118.6 118.8 119.0 117.0 117.6 118.2 118.8 117.9 1990 119.2 119.3 119.5 119.7 119.9 120.1 120.2 120.4 120.6 120.8 121.0 121.2 119.3 119.9 120.4 121.0 120.2 1991 121.4 121.6 121.7 121.9 122.1 122.2 122.4 122.6 122.7 122.9 123.0 123.2 121.6 122.1 122.6 123.0 122.3 1992 123.4 123.6 123.9 124.1 124.4 124.6 124.8 125.0 125.2 125.4 125.6 125.8 123.6 124.4 125.0 125.6 124.7 1993 126.0 126.2 126.4 126.6 126.8 127.0 127.3 127.5 127.7 128.0 128.3 128.6 126.2 126.8 127.5 128.3 127.2 1994 129.0 129.3 129.7 130.1 130.5 130.9 131.4 131.8 132.3 132.8 133.3 133.8 129.3 130.5 131.8 133.3 131.2 1995 134.3 134.8 135.4 135.9 136.5 137.1 137.7 138.2 138.8 139.4 140.0 140.6 134.8 136.5 138.2 140.0 137.4 1996 141.2 141.9 142.5 143.2 143.9 144.6 145.2 145.8 146.4 147.0 147.6 148.2 141.9 143.9 145.8 147.6 144.8 1997 148.8 149.5 150.1 150.7 151.4 152.1 152.7 153.4 154.1 154.8 155.5 156.3 149.5 151.4 153.4 155.6 152.5 1998 157.1 158.0 158.9 159.8 160.7 161.6 162.4 163.2 163.9 164.6 165.3 166.0 158.0 160.7 163.2 165.3 161.8 1999 166.7 167.4 168.0 168.6 169.2 169.8 170.2 170.7 171.2 171.7 172.3 172.8 167.3 169.2 170.7 172.3 169.9 Utilization (level, percent) 1987 79.1 80.0 80.2 80.5 80.7 81.4 81.8 81.8 81.6 82.6 82.8 83.2 79.8 80.8 81.7 82.9 81.3 1988 83.2 83.4 83.3 83.7 83.7 83.6 84.1 84.5 84.1 84.2 84.8 85.1 83.3 83.7 84.2 84.7 84.0 1989 85.4 84.6 85.3 85.3 84.7 84.4 83.4 83.6 83.3 82.8 83.0 83.2 85.1 84.8 83.4 83.0 84.1 1990 82.7 83.0 83.3 82.7 82.9 82.7 82.6 82.6 82.6 82.0 80.8 80.2 83.0 82.8 82.6 81.0 82.3 1991 79.6 78.9 78.1 78.2 78.7 79.6 79.5 79.5 80.2 80.0 79.8 79.2 78.9 78.8 79.7 79.6 79.3 1992 79.1 79.4 79.8 80.3 80.3 80.0 80.5 80.1 80.4 80.7 81.0 80.8 79.4 80.2 80.3 80.8 80.2 1993 81.0 81.3 81.3 81.5 81.0 81.1 81.0 80.7 81.4 81.6 81.7 82.1 81.2 81.2 81.0 81.8 81.3 1994 82.1 82.0 82.5 82.7 83.1 83.4 83.4 83.5 83.4 83.6 83.8 84.2 82.2 83.1 83.4 83.9 83.1 1995 84.4 83.9 83.8 83.3 83.3 83.3 82.7 83.3 83.3 82.9 82.7 82.4 84.0 83.3 83.1 82.7 83.3 1996 81.8 82.4 81.8 82.4 82.7 82.9 82.6 82.8 82.8 82.4 82.7 82.6 82.0 82.6 82.7 82.6 82.5 1997 82.6 83.0 83.0 83.1 83.1 83.2 83.3 83.4 83.6 83.7 83.7 83.5 82.9 83.1 83.4 83.7 83.3 1998 83.3 82.7 82.5 82.4 82.4 81.3 80.8 81.9 81.5 81.5 80.9 80.6 82.8 82.1 81.4 81.0 81.8 1999 80.4 80.4 80.5 80.4 80.5 80.5 80.7 80.7 80.6 81.2 81.2 81.3 80.4 80.5 80.7 81.2 80.7 NOTE. Monthly percentage change figures show change from the previous Estimates from October 1999 through December 1999 are subject to further month; quarterly figures show the change from the previous quarter at a revision in the upcoming monthly releases. compound annual rate of growth. Production and capacity indexes are expressed 1. Annual averages of industrial production are calculated from indexes that as percentages of output in 1992. are not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 199 A.2. Revised data for industrial production, capacity, and utilization for manufacturing industries, 1987-99 Seasonally adjusted data except as noted Quarter Annual Aug. avg.1 1 2 3 4 Industrial production (percentage change) 1987 -.8 1.6 .2 .5 .3 1.0 .7 -.2 .1 1.3 .5 .6 5.0 7.0 5.5 7.6 5.3 1988 -.2 .4 -.1 1.0 -.1 .0 .7 .3 .2 .2 .9 .6 2.3 4.1 3.7 5.2 4.7 1989 .9 -1.2 .8 .1 -.7 .0 -1.1 .3 -.3 -.6 .4 .1 4.3 -.7 -4.5 -1.4 1.9 1990 -.2 .9 .3 -.8 .4 -.1 .0 .3 -.1 -.6 -1.3 -.6 2.9 -.1 .8 -6.3 -.5 1991 -.9 -.7 -1.1 .3 .7 1.4 .2 .2 1.1 -.1 -.2 -.5 -9.7 1.2 7.8 1.7 -2.4 1992 .2 .8 .9 .7 .4 .0 .7 -.2 .4 .5 .6 -.2 2.3 7.3 3.5 3.9 4.0 1993 .1 .2 .3 .5 -.4 .1 .1 -.4 1.3 .4 .5 .8 4.2 2.4 .8 7.1 3.7 1994 .0 .2 1.1 .8 1.0 .4 .5 .7 .3 .7 .8 .9 5.2 10.0 6.7 8.0 6.1 1995 .7 -.3 .3 -.2 .3 .6 -.6 1.1 .8 -.1 .1 .0 6.1 1.4 3.3 3.6 5.3 1996 -.3 1.1 -.4 1.4 .9 .8 .4 .7 .5 -.1 .8 .4 1.6 9.9 7.7 4.6 4.7 1997 .4 1.0 .5 .5 .5 .8 .4 .8 .6 .6 .6 .4 7.1 7.4 7.8 7.4 7.3 1998 .4 -.1 .2 .6 .5 -.8 -.1 2.0 -.1 .7 .0 .1 3.3 2.6 3.4 5.6 4.9 1999 .1 .5 .3 .3 .6 .3 .4 .4 .3 1.0 .6 .2 2.5 4.9 4.7 7.2 4.3 Industrial production (index) 1987 89.6 91.0 91.2 91.6 91.9 92.8 93.4 93.3 93.4 94.6 95.1 95.6 90.6 92.1 93.4 95.1 92.8 1988 95.4 95.8 95.7 96.7 96.6 96.6 97.3 97.5 97.7 97.9 98.9 99.4 95.6 96.6 97.5 98.7 97.1 1989 100.3 99.1 99.9 100.0 99.4 99.4 98.3 98.7 98.4 97.8 98.2 98.3 99.8 99.6 98.5 98.1 99.0 1990 98.1 99.0 99.3 98.6 99.0 98.9 98.8 99.1 99.0 98.4 97.2 96.6 98.8 98.8 99.0 97.4 98.5 1991 95.8 95.1 94.1 94.4 95.0 96.3 96.6 96.8 97.8 97.8 97.6 97.1 95.0 95.2 97.0 97.5 96.2 1992 97.2 98.0 98.8 99.5 99.9 99.9 100.6 100.4 100.8 101.3 101.9 101.7 98.0 99.8 100.6 101.6 100.0 1993 102.4 102.6 102.9 103.5 103.1 103.2 103.3 102.9 104.2 104.7 105.1 106.0 102.7 103.3 103.5 105.3 103.7 1994 106.1 106.3 107.5 108.4 109.4 109.8 110.4 111.1 111.5 112.2 113.1 114.1 106.6 109.2 111.0 113.1 110.0 1995 114.9 114.6 115.0 114.8 115.1 115.7 115.0 116.3 117.2 117.1 117.2 117.3 114.8 115.2 116.2 117.2 115.8 1996 117.0 118.3 117.8 119.4 120.5 121.5 122.0 122.8 123.5 123.4 124.3 124.8 117.7 120.5 122.8 124.1 121.3 1997 125.3 126.5 127.1 127.8 128.4 129.5 130.1 131.1 131.8 132.7 133.5 134.0 126.3 128.6 131.0 133.4 130.1 1998 134.5 134.3 134.5 135.3 135.9 134.8 134.7 137.4 137.3 138.3 138.3 138.4 134.5 135.3 136.5 138.3 136.4 1999 138.6 139.3 139.7 140.2 141.0 141.4 142.0 142.5 142.9 144.3 145.2 145.5 139.2 140.9 142.5 145.0 142.3 Capacity (index) 1987 113.2 113.4 113.6 113.8 113.9 114.1 114.2 114.4 114.6 114.7 114.9 115.0 113.4 113.9 114.4 114.9 114.1 1988 115.2 115.3 115.4 115.6 115.7 115.8 116.0 116.1 116.3 116.5 116.6 116.8 115.3 115.7 116.1 116.6 115.9 1989 117.0 117.3 117.5 117.8 118.0 118.3 118.5 118.7 119.0 119.2 119.5 119.7 117.3 118.0 118.7 119.5 118.4 1990 119.9 120.1 120.3 120.5 120.7 120.9 121.1 121.3 121.5 121.7 122.0 122.2 120.1 120.7 121.3 122.0 121.0 1991 122.4 122.6 122.8 123.0 123.1 123.3 123.5 123.7 123.8 124.0 124.2 124.3 122.6 123.1 123.7 124.2 123.4 1992 124.6 124.8 125.1 125.4 125.6 125.9 126.1 126.4 126.6 126.8 127.1 127.3 124.8 125.6 126.4 127.1 126.0 1993 127.5 127.7 127.9 128.2 128.4 128.6 128.9 129.1 129.4 129.7 130.0 130.4 127.7 128.4 129.1 130.0 128.8 1994 130.7 131.1 131.6 132.0 132.5 133.0 133.4 133.9 134.5 135.0 135.6 136.1 131.2 132.5 133.9 135.6 133.3 1995 136.7 137.3 138.0 138.6 139.3 140.0 140.6 141.2 141.9 142.5 143.2 143.9 137.3 139.3 141.2 143.2 140.3 1996 144.6 145.4 146.1 146.9 147.7 148.5 149.2 149.9 150.6 151.3 152.0 152.7 145.4 147.7 149.9 152.0 148.7 1997 153.4 154.1 154.9 155.6 156.4 157.2 157.9 158.7 159.5 160.3 161.2 162.1 154.1 156.4 158.7 161.2 157.6 1998 163.0 164.0 165.0 166.1 167.1 168.2 169.1 170.0 170.8 171.7 172.5 173.3 164.0 167.1 170.0 172.5 168.4 1999 174.1 174.8 175.5 176.2 176.9 177.6 178.2 178.7 179.3 179.9 180.5 181.2 174.8 176.9 178.7 180.6 177.8 Utilization (level, percent) 1987 79.1 80.2 80.3 80.6 80.7 81.4 81.8 81.5 81.5 82.5 82.8 83.1 79.9 80.9 81.6 82.8 81.3 1988 82.9 83.1 82.9 83.7 83.5 83.4 83.8 84.0 84.0 84.1 84.8 85.1 83.0 83.5 83.9 84.7 83.8 1989 85.7 84.5 85.0 85.0 84.2 84.1 83.0 83.1 82.7 82.1 82.2 82.1 85.1 84.4 82.9 82.1 83.6 1990 81.8 82.5 82.6 81.8 82.0 81.8 81.6 81.7 81.5 80.9 79.7 79.0 82.3 81.9 81.6 79.9 81.4 1991 78.2 77.5 76.6 76.8 77.1 78.1 78.2 78.2 79.0 78.9 78.6 78.1 77.5 77.3 78.5 78.5 77.9 1992 78.0 78.5 79.0 79.4 79.5 79.3 79.8 79.5 79.6 79.9 80.2 79.9 78.5 79.4 79.6 80.0 79.4 1993 80.3 80.4 80.5 80.7 80.3 80.2 80.2 79.7 80.5 80.7 80.9 81.3 80.4 80.4 80.1 81.0 80.5 1994 81.1 81.1 81.7 82.1 82.6 82.6 82.7 82.9 82.9 83.1 83.4 83.8 81.3 82.4 82.9 83.4 82.5 1995 84.0 83.4 83.3 82.8 82.6 82.7 81.8 82.3 82.6 82.2 81.9 81.5 83.6 82.7 82.3 81.8 82.6 1996 80.9 81.4 80.6 81.3 81.6 81.8 81.8 81.9 82.0 81.6 81.8 81.7 80.9 81.6 81.9 81.7 81.5 1997 81.7 82.1 82.1 82.1 82.1 82.4 82.4 82.6 82.7 82.8 82.8 82.6 81.9 82.2 82.5 82.7 82.4 1998 82.5 81.9 81.5 81.5 81.3 80.1 79.7 80.8 80.4 80.5 80.2 79.9 82.0 81.0 80.3 80.2 80.9 1999 79.6 79.7 79.6 79.5 79.7 79.6 79.7 79.7 79.7 80.2 80.4 80.3 79.6 79.6 79.7 80.3 79.8 NOTE. See general note to table A.l. 1. Annual averages of industrial production are calculated from indexes that are not seasonally adjusted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
200 Federal Reserve Bulletin • March 2000 A.3. Rates of growth in industrial production, by major market group, 1995-99 Difference between growth rates: Revised growth rate revised less earlier (percent) MMaarrkkeett ggrroouupp (percentage points) 1995 1996 1997 | 1998 1999 1995 1996 1997 1998 1999 Total index 3.5 5.3 6.8 2.9 4.5 .0 .0 .2 1.0 .9 Products, total 1.9 4.3 5.2 2.5 3.1 -.1 .0 .1 .4 .7 Final products 2.4 4.4 5.7 2.3 3.2 -.2 .1 .1 .3 .9 Consumer goods 1.6 2.0 2.8 -.9 2.9 .3 -.2 .1 -.5 .5 Durable 1.6 1.8 5.5 5.0 7.2 1.3 -.5 -1.0 .1 .1 Automotive products -3.3 2.4 10.3 4.7 2.9 -.8 .4 1.0 .8 -.1 I Autos and trucks -6.3 2.5 13.0 4.2 1.9 -1.6 .0 .7 1.2 -.2 Autos -12.8 -6.2 3.6 2.7 -6.1 -5.6 -2.4 .2 2.0 -2.2 Trucks .2 9.2 19.1 5.0 6.1 -l.l 1.1 3.5 .0 .9 Auto parts and allied goods 2.4 2.2 5.9 6.0 4.1 .6 1.1 1.3 -.1 .0 Other durable goods 5.5 1.3 1.8 5.1 11.1 3.0 -1.2 -2.5 -.6 .5 Appliances and electronics 19.2 4.1 1.4 23.8 28.6 10.3 -4.8 -10.4 4.3 -.3 Appliances and air conditioning .. -2.1 -.9 -2.2 9.8 3.1 -.1 -.7 -1.7 -1.5 -1.0 Home electronics 42.3 9.4 5.6 39.4 66.1 22.2 -8.9 -18.6 11.6 9.4 Carpeting and furniture -3.0 3.1 3.0 2.5 6.5 .0 .1 .6 -1.1 1.5 Miscellaneous .9 -1.3 1.8 -3.3 4.2 -.2 .5 .9 -2.0 1.5 Nondurable 1.6 2.0 2.1 -2.5 1.7 .0 -.2 .4 -.7 .7 Non-energy .9 1.9 2.1 -2.3 1.1 .0 -.2 .4 -.7 1.2 Foods and tobacco -.2 1.2 2.2 -1.3 .6 .2 -.2 .9 -1.9 1.2 Clothing -3.9 -.4 -2.4 -8.1 -1.6 -.4 -.2 -.3 -2.4 4.6 Chemical products 5.0 4.8 2.4 -.2 3.0 -.1 -.1 -.4 2.2 .8 Paper products 1.8 1.4 4.6 -5.4 1.4 -.3 -.4 .7 -.6 -.6 Energy products 6.4 2.5 1.8 -3.9 6.4 .1 .1 .3 -.4 -2.2 Fuels 1.5 3.6 1.8 -.6 .5 .1 .1 .1 .0 -.6 Utilities 8.7 2.0 1.6 -5.1 9.0 .1 .2 .2 -.3 -3.8 Equipment, total 3.7 8.6 10.3 7.3 3.7 -.9 .6 -.1 1.6 1.4 Business equipment 5.7 10.8 12.8 10.0 5.0 -1.3 1.0 -.3 1.7 1.7 Information processing and related 12.2 18.5 16.0 20.0 22.5 -2.8 2.0 -.2 5.6 3.8 Computer and office 31.8 53.5 32.2 77.7 51.7 -12.9 11.6 -11.5 23.0 18.2 Industrial 8.4 1.1 4.8 .7 -2.6 -.1 -.1 -.3 -.8 -1.7 Transit -10.9 15.8 21.7 10.7 -12.9 -1.4 1.5 -1.1 -1.4 .4 Autos and trucks -8.2 -3.7 11.7 6.4 -.6 -2.2 -.7 -.6 1.3 -1.5 Other 2.0 6.0 10.7 -1.6 -7.8 .1 .5 .3 -.2 .0 Defense and space equipment -6.4 -2.5 -4.0 .6 -3.8 .7 -1.6 -.1 .9 .5 Oil and gas well drilling 2.6 7.8 9.6 -25.3 5.9 .2 .3 .3 .0 -2.0 Manufactured homes 7.3 3.8 8.9 6.7 -16.5 -1.3 4.4 9.6 -2.4 1.2 Intermediate products .5 3.8 3.6 3.0 2.8 .0 .0 .3 .6 .1 Construction supplies -.4 5.8 2.8 5.6 3.8 -.1 .0 .4 .5 -.6 Business supplies l.l 2.4 4.1 1.4 2.1 .0 .0 .3 .7 .5 Materials 6.0 6.9 9.2 3.5 6.8 .3 .0 .2 1.9 1.4 Durable 11.4 10.6 14.3 7.3 9.3 .4 .4 1.0 3.5 2.0 Consumer parts 3.0 1.8 9.5 -2.8 5.9 -.6 .6 2.2 -1.4 .5 Equipment parts 28.2 23.4 26.5 22.2 20.1 1.9 .7 .1 10.3 6.4 Semiconductors, printed circuit boards, and other electrical components 71.7 52.2 54.2 56.6 48.4 6.3 2.8 .9 26.8 12.8 Other 2.1 4.0 6.0 -.7 1.6 -.3 .1 1.0 .1 -1.3 Basic metals .9 4.7 5.5 -5.6 4.8 -.7 .8 1.2 .1 -1.3 Nondurable -2.6 3.4 4.2 -2.9 4.9 -.1 -.3 -.2 -.1 1.3 Textile -7.2 2.3 3.1 -9.5 -.2 .0 -.4 -.1 -2.3 2.4 Paper -2.8 4.3 4.6 -2.6 4.6 .0 -.1 -.2 .0 -.1 Chemical -1.1 4.6 4.4 -3.5 8.1 -.2 -.5 -.6 .2 3.0 Other -3.0 .6 4.3 1.6 1.3 -.1 .1 .5 .3 -.9 Energy .7 .7 .1 -1.0 .2 .1 -.1 -.2 -.3 -1.0 Primary .4 -.9 -.1 -.4 -.4 .1 -.2 -.3 -.5 -1.1 Converted fuel 1.2 3.7 .4 -2.2 1.4 .1 .1 -.1 .0 -.6 Special aggregates Total excluding: Autos and trucks 3.9 5.5 6.6 2.8 4.6 .1 .1 .2 1.0 1.0 Motor vehicles and parts 3.8 5.7 6.4 3.0 4.5 .1 .1 .1 1.0 1.0 Computers 2.9 4.6 6.3 1.5 3.3 .0 .0 .4 .7 .5 Computers and semiconductors1 1.0 3.0 4.7 -.1 1.8 -.1 .0 .5 -.1 .1 Consumer goods excluding: Autos and trucks 2.1 1.9 2.2 -1.2 3.0 .4 -.3 .0 -.6 .5 Energy 1.1 1.9 2.9 -.6 2.6 .3 -.3 .1 -.6 .8 Business equipment excluding: Autos and trucks 7.3 12.4 12.9 10.3 5.5 -1.2 1.2 -.3 1.8 2.0 Computers and office equipment 3.4 7.2 10.9 4.0 -.6 -.4 .3 .5 -.2 -.8 Materials excluding: Energy 7.2 8.5 11.4 4.5 8.2 .3 .1 .3 2.5 1.9 NOTE. Growth rates are calculated as the percentage change in the seasonally calculated from annualized growth rates between the fourth quarter of 1998 and adjusted index from the fourth quarter of the previous year to the fourth quarter the third quarter of 1999. of the year specified. For 1999, the differences between growth rates are 1. Semiconductors include related electronic components. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 201 A.4. Rates of growth in industrial production, by industry group, 1995-99 Difference between growth rates: Revised growth rate revised less earlier SSeerriieess cc SS oo II dd CC ee 11 (percent) (percentage points) 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 Total index 3.5 5.3 6.8 2.9 3.8 .0 .0 .2 1.0 .9 Manufacturing 3.6 5.9 7.4 3.7 4.0 .0 .0 .1 1.2 1.2 Primary processing -.5 4.1 4.5 -.5 2.5 -.2 .0 .6 -.2 .0 Advanced processing 5.6 6.8 9.0 5.7 4.7 .1 .1 .2 1.8 1.6 Durable manufacturing 7.0 8.9 11.4 7.7 7.0 .1 .3 .3 2.4 1.5 Lumber and products 24 .6 1.8 4.5 4.2 -.3 -.2 .0 1.4 .0 -.2 Furniture and fixtures 25 -.8 4.6 3.7 3.3 3.2 .0 -.1 .4 -.1 .9 Stone, clay, and glass products 32 2.6 5.8 3.3 5.0 -.4 -.1 -.5 .7 .0 .4 Primary metals 33 -1.2 5.6 6.0 -6.4 7.5 -1.0 1.0 1.1 .7 -2.0 Iron and steel 331,2 -2.0 5.2 6.1 -11.6 13.7 -1.7 1.6 1.1 .1 -2.3 Raw steel 331pt -1.1 -.1 7.2 -12.8 10.8 -1.8 1.6 -.1 .1 -2.4 Nonferrous metals 333-6,9 -.2 6.2 6.0 .0 .8 -.1 .3 1.1 1.7 -2.0 Fabricated metal products 34 1.0 4.2 5.9 .0 -.3 -.2 .1 1.4 -.6 -1.3 Industrial machinery and equipment .. 35 13.7 10.5 11.1 16.1 10.4 -.4 .7 -2.3 3.2 3.4 Computer and office equipment 357 40.2 46.5 27.8 78.9 54.9 -1.4 3.6 -15.8 25.9 15.7 Electrical machinery 36 27.6 23.4 26.2 21.5 23.8 1.7 1.2 2.0 10.1 4.6 Semiconductors and related electronic components 3672-9 63.4 46.9 49.9 48.5 41.8 5.4 2.3 1.3 22.8 10.4 Transportation equipment 37 -4.8 4.8 13.2 2.2 -2.5 -.6 -.1 .1 -.9 .3 Motor vehicles and parts 371 -1.8 -1.4 13.8 1.0 4.1 -1.2 .0 1.0 .3 .1 Autos and light trucks 337711pptt -7.1 1.6 11.3 4.0 2.5 -2.0 -.3 .4 1.4 -.6 Aerospace and miscellaneous transportation equipment 372-6,9 -9.4 15.0 12.3 4.1 -11.0 .3 -.3 -1.1 -2.5 .3 Instruments 38 4.2 2.4 3.3 1.9 4.6 .0 -.6 -.3 .0 .1 Miscellaneous manufactures 39 2.5 2.6 3.1 -.6 5.5 .0 -.1 1.7 2.8 1.1 Nondurable manufacturing -.3 2.5 2.9 -1.1 .2 .0 -.1 .3 -.2 .7 Foods 20 .7 .8 1.9 1.8 -1.4 .2 -.3 .0 .0 .7 Tobacco products 21 -4.3 .6 5.3 -18.4 -2.8 .1 .7 6.1 -9.7 3.7 Textile mill products 22 -4.5 1.9 3.8 -6.4 6.2 .1 .0 .3 -3.5 5.3 Apparel products 23 -4.1 -1.2 -2.5 -7.3 -6.2 -.5 -.3 -.5 -1.2 2.1 Paper and products 26 -2.4 3.0 4.1 -1.2 1.8 .1 .0 -.1 .0 -.3 Printing and publishing 27 -.3 1.8 3.9 -1.6 -1.9 -.1 -.1 .3 .2 .0 Chemicals and products 28 1.5 4.7 2.6 -.7 2.2 -.1 -.2 -.5 1.6 .8 Petroleum products 29 .7 4.1 2.7 2.1 .7 .0 .4 .7 .6 -1.1 Rubber and plastic products 30 .2 4.0 4.6 3.1 3.6 .0 .0 .3 -.3 -.1 • Leather and products 31 -5.8 2.0 -7.1 -8.2 -8.6 -.2 .7 1.6 -.8 -1.8 • Mining -.8 1.9 1.9 -5.0 -2.8 .1 -.1 -.2 -.1 -.7 1 Metal mining 10 4.5 4.0 2.9 -2.1 -16.9 -.1 -.6 -1.5 -.9 4.1 Coal mining 12 -1.0 2.6 1.9 2.8 -1.0 .4 -1.7 -.3 -.2 .7 B Oil and gas extraction 13 -1.4 1.1 1.7 -8.4 -1.9 .0 .1 -.1 .1 -2.3 1 Stone and earth minerals 14 -1.2 4.8 3.1 3.8 -2.4 -.1 .0 -.3 .3 1.8 • Utilities 6.4 1.2 2.1 -1.4 6.5 .1 .1 .2 -.3 -1.5 I Electric 491,493pt 5.3 1.0 2.9 .8 4.9 .1 .0 .3 -.6 -1.1 I Gas 492,493pt 10.9 2.2 -1.8 -12.2 15.5 .1 .4 -.5 1.2 -3.7 • Special aggregates Computers, communications equipment, and semiconductors2 43.8 39.1 36.6 43.9 39.6 1.8 2.4 -1.9 17.2 7.7 I Manufacturing excluding: Motor vehicles and parts 4.0 6.4 7.1 3.9 4.0 .1 .0 .2 1.3 1.2 1 Computers and office equipment 2.9 5.1 7.0 2.2 2.6 .0 .0 .5 .8 .7 I Computers and semiconductors 2 .6 3.3 5.1 .3 .9 -.2 .0 .5 .0 .2 • Computers, communications equipment, and semiconductors 2 .4 3.0 4.7 .0 .3 -.1 .0 .4 -.2 .2 NOTE. Growth rates are calculated as the percentage change in the seasonally publishing, chemical products and other agricultural chemicals, leather and adjusted index from the fourth quarter of the previous year to the fourth quarter products, furniture and fixtures, industrial and commercial machinery and of the year specified. For 1999, the differences between growth rates are computer equipment, electrical machinery, transportation equipment, instrucalculated from annualized growth rates between the fourth quarter of 1998 and ments, and miscellaneous manufactures. the third quarter of 1999. 1. Standard Industrial Classification; see Executive Office of the President, Primary-processing manufacturing includes textile mill products; paper and Office of Management and Budget, Standard Industrial Classification Manual, products; industrial chemicals, synthetic materials, and fertilizers; petroleum 1987 (U.S. Government Printing Office, 1987). products; rubber and plastics products; lumber and products; primary metals; 2. Semiconductors include related electronic components. fabricated metals; and stone, clay, and glass products. Advanced-processing pt Part of classification. manufacturing includes foods, tobacco products, apparel products, printing and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
202 Federal Reserve Bulletin • March 2000 A.5. Rates of growth in capacity, by industry group, 1995-99 Difference between growth rates: Revised growth rate revised less earlier SSIICC (percent) IInndduussttrryy ggrroouupp (percentage points) ccooddee'' 1995 1996 1997 1998 1999 1995 1996 1997 1998 19992 Total index 5.0 5.4 5.4 6.3 4.2 -.3 -.3 .3 1.3 .8 Manufacturing 5.6 6.1 6.1 7.0 4.7 -.4 -.3 .3 1.4 .9 Primary processing 3.1 3.5 3.9 3.8 2.4 -.2 -.3 .0 .8 .4 Advanced processing 6.9 7.2 7.0 8.5 5.6 -.5 -.3 .6 1.8 1.2 Durable manufacturing 8.8 9.3 8.7 10.7 7.3 -.6 -.4 .2 2.8 1.8 Lumber and products 24 3.3 3.6 3.4 3.1 2.9 .2 -.2 -.8 .2 -.2 Furniture and fixtures 25 4.4 4.3 3.8 3.2 2.0 1.9 -1.6 -1.3 1.3 .1 Stone, clay, and glass products 32 2.0 3.3 3.1 2.8 3.5 -3.7 -1.5 .2 2.1 .7 Primary metals 33 2.5 5.7 3.5 3.5 2.5 -.2 2.1 .0 .1 .9 Iron and steel 331,2 1.9 5.2 3.8 5.2 3.9 -.1 2 -.1 .1 1.7 Raw steel 331pt 3.2 2.7 6.0 6.2 1.5 .1 .0 .2 -.7 -.7 Nonferrous metals 333-6,9 3.2 6.4 3.1 1.5 .8 -.4 4.4 .3 .1 .1 Primary copper 3331 1.6 -5.1 .7 -.5 -2.2 -.4 -.4 1.3 -1.2 -2.6 Primary aluminum 3334 .0 .4 .0 .0 .0 .0 .0 .0 .0 .0 Fabricated metal products 34 6.0 5.1 6.1 5.8 .3 .8 -.3 -.4 1.6 .0 Industrial machinery and equipment 35 10.0 12.3 14.2 15.8 15.3 -1.5 -.7 2.2 1.2 4.5 Computer and office equipment 357 30.3 42.5 50.9 58.8 61.9 -4.3 -3.6 7.7 -.6 20.6 Electrical machinery 36 29.8 30.9 22.9 30.5 17.3 1.0 .7 -.7 12.2 4.0 Semiconductors and related electronic components 3672-9 63.0 59.1 43.0 61.1 31.6 4.3 2.6 -3.6 27.6 4.2 Transportation equipment 37 2.2 .5 2.4 2.7 -.1 -2.1 -2.0 .4 .6 -.6 Motor vehicles and parts 371 5.3 1.5 3.6 2.8 .2 -3.1 -2.4 .4 .2 -.7 Autos and light trucks 3377 llpptt .2 -4.5 4.2 2.6 -1.7 -4.4 -4.0 3.4 -.2 -1.0 Aerospace and miscellaneous transportation equipment 372-6,9 -1.4 -1.0 .7 2.7 -.7 -1.1 -1.6 .4 1.3 -.5 Instruments 38 2.5 .3 .8 2.2 4.0 -.2 .2 -.5 -.2 .7 Miscellaneous manufactures 39 2.6 2.4 .5 1.4 l.l .9 .5 -1.4 -.5 -.9 Nondurable manufacturing 2.0 2.2 2.6 2.4 1.3 -.1 -.1 .6 -.1 -.1 Foods 20 2.4 2.2 2.3 2.2 1.9 .2 .2 1.1 -.6 .0 Textile mill products 22 2.6 1.9 2.1 .3 .3 .7 -.3 -2.4 -.6 1.4 Apparel products 23 1.6 .3 .6 .6 -.8 -.7 -.4 -1.2 1.3 .8 Paper and products 26 3.0 1.4 3.3 3.1 2.4 .5 -1.5 .9 .1 .0 Pulp and paper 261-3 2.9 1.2 2.3 1.4 1.2 .0 -.4 .8 -.3 .1 Printing and publishing 27 .3 .7 1.9 1.6 -.2 -.4 .4 1.8 -1.5 -.9 Chemicals and products 28 2.5 3.4 2.8 2.9 1.0 -.2 -.1 .1 .4 -.2 Plastics materials 2821 3.0 3.3 1.7 3.7 3.7 -1.9 -2.5 -2.4 .0 .3 Synthetic fibers 2823,4 -.7 -2.0 1.1 .5 1.6 -l.l -1.7 -1.4 -2.4 -2.0 Petroleum products 29 -.2 1.4 2.3 2.9 1.6 .0 .6 1.0 1.8 .5 Rubber and plastics products 30 4.1 4.2 5.3 5.1 5.4 -.3 -.7 .2 .3 .1 Leather and products 31 -2.2 -1.5 -1.9 -2.8 -4.9 -5.6 -5.0 1.5 -2.4 1.5 Mining -.4 .4 1.6 .9 -.2 .0 .0 .0 .0 -1.2 Metal mining 10 .7 1.6 3.2 1.1 -1.5 .1 -.1 .3 .3 -2.0 Coal mining 12 .3 1.8 .2 .4 .4 -.2 .1 -1.5 -1.3 -1.6 Oil and gas extraction 13 -1.0 -.3 1.2 .6 -.6 .0 -.1 .2 .1 -.7 Oil and gas well drilling 138 -1.6 -1.2 1.0 1.9 -3.1 .0 .0 .1 .0 -2.1 Stone and earth minerals 14 2.3 3.6 4.3 2.9 1.6 .0 .0 -.1 -1.2 -2.6 Utilities 1.7 1.8 .2 .7 1.4 .0 -.1 -.1 .0 .9 Electric 49 l,3pt 2.3 1.9 -.2 .7 1.4 .1 .0 -.1 .0 .8 Gas 492,3pt .5 1.9 1.5 1.1 1.0 .0 -.2 -.5 -.4 -.4 Special aggregates Computers, communications equipment, and semiconductors1 42.0 45.6 37.9 48.2 35.7 l.l -.7 .5 13.3 9.4 Manufacturing excluding computers. communications equipment, and semiconductors1 2.7 2.6 3.0 3.0 1.3 -.5 -.3 .3 .4 -.1 NOTE. See general note to table A.4. 3. Semiconductors include related electronic components. 1. Standard Industrial Classification; see table A.4, note 1. pt Part of classification. 2. Through the fourth quarter of 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 203 A.6. Capacity utilization rates, by industry group, 1967-99 Difference between rates: Revised rate revised less earlier (percent of capacity, seasonally adjusted) SSIICC (percentage points) IItteemm ccooddee11 1967-98 1988-89 1990-91 1997:Q4 1998:Q4 1999:Q4 I997:Q4 1998:Q4 1999:Q3 avg. high low Total index 82.1 85.4 78.1 83.7 81.0 81.2 .2 .0 .1 Manufacturing 81.1 85.7 76.6 82.7 80.2 80.3 .3 .1 .3 Primary processing 82.4 88.9 77.7 86.3 82.8 83.6 1.0 .2 .0 Advanced processing 80.5 84.2 76.1 81.5 79.4 79.2 .1 .1 .4 Durable manufacturing 79.5 84.6 73.1 82.7 80.5 80.2 .7 .3 .2 Lumber and products 24 82.6 93.6 75.5 82.9 83.7 81.5 1.6 1.4 1.3 Furniture and fixtures 25 81.2 86.6 72.5 78.5 78.7 79.8 .6 -.4 .0 Stone, clay, and glass products 32 78.5 83.5 69.7 83.7 85.5 83.7 3.0 1.3 1.0 Primary metals 33 81.2 92.7 73.7 92.0 83.2 86.8 .0 .6 -1.1 Iron and steel 331,2 81.2 95.2 71.8 93.1 78.3 83.9 1.3 1.2 -.8 Raw steel 33 lpt 80.9 92.7 71.5 90.3 74.2 85.9 ' .3 .8 .1 Nonferrous metals 333-6,9 81.5 89.3 74.2 90.7 89.3 90.5 -1.6 -.2 -1.6 Primary copper 3331 75.5 86.3 73.5 94.6 86.8 75.0 -.9 .8 6.1 Primary aluminum 3334 88.4 100.4 97.3 86.4 88.6 91.2 .1 .1 -.2 Fabricated metal products 34 78.0 82.0 71.9 79.9 75.5 75.8 1.1 -.5 -1.2 Industrial machinery and equipment 35 81.4 85.4 72.3 83.8 84.1 81.3 -1.6 .0 -.2 Computer and office equipment 357 81.2 86.9 66.9 76.0 85.7 80.7 -7.6 5.5 4.5 Electrical machinery 36 81.1 84.0 75.0 83.7 77.9 81.2 2.0 1.0 .9 Semiconductors and related electronic components 3672-9 79.9 81.1 75.6 85.1 78.5 84.3 1.3 -.4 1.3 Transportation equipment 37 75.9 85.8 68.5 81.1 80.6 77.9 1.0 -.1 .4 Motor vehicles and parts 371 76.7 89.1 55.9 82.0 80.6 83.6 .7 .7 1.3 Autos and light trucks2 3377 llpptt 92.3 53.3 85.9 87.0 89.0 -1.8 -.5 .0 Aerospace and miscellaneous transportation equipment 372-6,9 75.3 87.3 79.2 79.8 80.9 70.6 1.4 -1.5 -1.0 Instruments 38 81.6 81.4 77.2 80.6 80.5 81.1 -.2 .0 -.3 Miscellaneous manufactures 39 75.7 79.0 71.7 80.8 79.1 81.4 1.1 3.5 4.7 Nondurable manufacturing 83.4 87.3 80.7 83.2 80.3 81.0 -.1 -.2 .3 Foods 20 82.9 85.4 82.7 80.5 80.2 79.2 -1.6 -1.1 -.6 Textile mill products 22 85.6 90.4 77.7 87.0 81.2 85.5 2.3 -.3 2.1 Apparel products 23 80.9 85.1 75.5 77.1 71.0 68.4 .9 -1.0 -.2 Paper and products 26 89.2 93.5 85.0 89.8 86.1 86.9 .4 .4 .2 Pulp and paper 261-3 92.4 98.0 89.9 94.6 90.7 93.9 -.4 -.1 -.1 Printing and publishing 27 85.7 91.7 79.6 83.8 81.1 82.0 -1.3 .1 .7 Chemicals and products 28 79.5 86.2 79.3 79.8 77.0 79.7 .0 .9 1.5 Plastics materials 2821 86.7 97.0 74.8 92.4 91.7 92.7 -.4 -.3 .1 Synthetic fibers 2823,4 84.8 99.7 77.6 80.0 77.0 83.5 -5.9 -2.2 -2.7 Petroleum products 29 86.8 88.5 85.1 94.8 94.1 92.2 -.4 -1.4 -2.6 Rubber and plastics products 30 84.6 89.6 77.4 86.7 85.0 83.6 1.2 .6 .5 Leather and products 31 81.1 83.3 76.1 74.9 70.7 68.1 8.0 8.5 6.8 Mining 87.5 88.0 87.0 88.6 83.3 83.0 -.1 -.2 .1 Metal mining 10 79.5 89.4 79.9 90.6 87.7 78.6 -1.5 -2.6 1.7 Coal mining 12 86.7 91.5 83.4 85.7 87.7 86.0 1.2 2.1 3.5 Oil and gas extraction 13 88.5 88.2 88.7 89.5 81.5 82.3 -.1 -.1 -1.0 Oil and gas well drilling 138 74.2 69.3 60.0 86.3 63.3 69.2 .6 .4 .4 Stone and earth minerals 14 84.8 89.0 79.4 85.0 85.8 85.9 -.5 .8 3.4 Utilities 87.4 92.6 83.4 91.3 89.3 91.9 .5 .2 -1.3 Electric 491,3pt 89.3 95.0 87.1 93.6 93.7 95.8 .4 -.2 -1.5 Gas 492,3pt 82.1 85.0 67.1 81.7 70.9 75.5 .6 1.7 .3 1 Special aggregates Computers, communications equipment, and semiconductors J 80.3 81.9 72.4 81.9 79.5 80.4 -.1 2.4 1.6 1 Manufacturing excluding computers, communications equipment, and semiconductors3 81.2 86.1 76.8 83.0 80.5 80.6 .4 -.1 .1 NOTE. The "high" column refers to periods in which utilization generally 1. Standard Industrial Classification; see table A.4, note 1. peaked; the "low" column refers to recession years in which utilization gener- 2. Series begins in 1977. ally bottomed out. The monthly highs and lows are specific to each series, and 3. Semiconductors include related electronic components, all did not occur in the same month. pt Part of classification. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
204 Federal Reserve Bulletin • March 2000 A.7. Annual proportions in industrial production, by industry group, 1991-98 SIC Item 1991 1992 1993 1994 1995 1996 1997 1998 code' Total index 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Manufacturing 84.5 85.4 85.9 86.7 86.8 86.8 87.8 88.6 Primary processing 26.1 26.6 27.0 28.2 28.0 27.6 27.8 28.0 Advanced processing 58.4 58.9 58.9 58.5 58.8 59.2 60.0 60.6 Durable manufacturing 44.2 44.9 45.6 46.3 46.8 47.6 48.5 49.3 Lumber and products 24 1.8 2.1 2.2 2.2 2.1 2.1 2.1 2.1 Furniture and fixtures 25 1.3 1.4 1.4 1.4 1.4 1.4 1.4 1.4 Stone, clay, and glass products 32 2.1 2.1 2.1 2.2 2.2 2.3 2.4 2.4 Primary metals 33 3.1 3.1 3.3 3.5 3.5 3.5 3.6 3.6 Iron and steel 331,2 1.7 1.8 1.9 2.0 1.9 1.9 2.0 1.9 Raw steel 331pt .1 .1 .1 .1 .1 .1 .1 .1 Nonferrous metals 333-6,9 1.4 1.4 1.4 1.6 1.6 1.6 1.6 1.7 Fabricated metal products 34 4.9 5.0 5.1 5.2 5.3 5.4 5.5 5.6 Industrial machinery and equipment 35 7.9 7.8 8.1 8.4 8.9 9.2 9.4 10.0 Computer and office equipment 357 1.6 1.6 1.6 1.6 1.7 1.8 1.9 2.3 Electrical machinery 36 6.8 7.1 7.4 7.8 8.3 8.6 8.8 8.6 Semiconductors and related electronic components 3672-9 2.3 2.5 2.6 2.9 3.4 3.6 3.7 3.5 Transportation equipment 37 9.6 9.4 9.5 9.3 8.9 8.8 9.2 9.4 Motor vehicles and parts 371 4.6 4.7 5.1 5.5 5.4 5.2 5.3 5.1 Autos and light trucks2 337711pptt 2.6 2.5 2.6 2.8 2.7 2.7 2.6 2.6 Aerospace and miscellaneous transportation equipment 372-6,9 5.0 4.7 4.4 3.8 3.5 3.6 3.9 4.3 Instruments 38 5.4 5.4 5.3 4.9 4.8 4.9 4.8 4.9 Miscellaneous manufactures 39 1.3 1.3 1.3 1.3 1.3 1.4 1.4 1.3 Nondurable manufacturing 40.3 40.6 40.3 40.4 40.1 39.3 39.3 39.3 Foods 20 9.4 9.6 9.6 9.3 9.2 9.0 8.9 9.0 Tobacco products 21 1.6 1.6 1.1 1.2 1.3 1.3 1.3 1.3 Textile mill products 22 1.7 1.8 1.8 1.8 1.7 1.6 1.6 1.6 Apparel products 23 2.2 2.2 2.1 2.1 2.0 1.9 1.8 1.7 Paper and products 26 3.7 3.5 3.4 3.8 3.9 3.5 3.5 3.5 Printing and publishing 27 6.8 6.8 6.8 6.6 6.6 6.6 6.7 6.8 Chemicals and products 28 9.9 10.0 9.9 10.0 9.9 9.7 9.8 9.8 Petroleum products 29 1.5 1.4 1.5 1.6 1.5 1.6 1.6 1.6 Rubber and plastics products 30 3.3 3.5 3.6 3.8 3.7 3.7 3.8 3.8 Leather and products 31 .3 .3 .3 .2 .2 .2 .2 .2 Mining 7.5 6.8 6.4 6.0 6.1 6.5 5.9 5.2 Metal mining 10 .5 5 .4 .5 .5 .4 .4 .4 Coal mining 12 1.1 1.0 .9 .9 .9 .9 .9 .8 Oil and gas extraction 13 5.3 4.7 4.4 4.0 4.1 4.6 4.1 3.4 Stone and earth minerals 14 .6 .6 .6 .6 .6 .6 .6 .6 Utilities 8.0 7.8 7.7 7.4 7.1 6.7 6.3 6.3 Electric 491,3pt 6.5 6.2 6.1 5.8 5.6 5.4 5.2 5.3 Gas 492,3pt 1.5 1.6 1.6 1.5 1.5 1.3 1.1 1.0 Special aggregates Computers, communications equipment, and semiconductors 2 5.3 5.7 5.8 6.2 6.9 7.3 7.6 7.8 Manufacturing excluding: Motor vehicles and parts 80.0 80.7 80.8 81.1 81.4 81.6 82.5 83.4 Computers and office equipment 82.9 83.8 84.3 85.0 85.1 85.0 85.9 86.3 Computers and semiconductors 2 80.6 81.3 81.7 82.1 81.7 81.4 82.2 82.8 Computers, communications equipment, and semiconductors2 79.2 79.8 80.1 80.4 80.0 79.5 80.1 80.7 NOTE. The IP proportion data are estimates of the industries' relative contri- 1. Standard Industrial Classification; see table A.4, note 1. bution to overall IP growth in the following year. For example, a 1 percent 2. Semiconductors include related electronic components, increase in durable goods manufacturing in 1999 would account for a 0.493 per- pt Part of classification, cent increase in total IP. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Industrial Production and Capacity Utilization: Recent Developments and the J 999 Revision 205 A.8. Rates of growth in electric power use, 1995-99 Difference between growth rates: Revised growth rate revised less earlier IItteemm cc SS oo II dd CC ee11 (percent) (percentage points) 1995 1996 1997 1998 1999 1995 1996 1997 1998 1999 Total -.8 1.5 1.2 -.9 -2.4 .0 .1 .2 -.6 1.0 Manufacturing -.9 1.4 1.3 -.9 -2.5 .0 .1 .2 -.6 1.0 Durable manufacturing .5 -.3 4.7 -1.2 -.4 .0 -.1 1.6 -1.3 .1 Lumber and products 24 1.5 4.1 3.4 1.7 .4 .0 -.2 3.6 -1.4 -.8 Furniture and fixtures 25 -3.7 4.2 1.6 .6 3.8 -.1 -.1 .2 .4 1.5 Stone, clay, and glass products 32 .2 3.5 1.5 2.6 -.8 .0 .1 .8 .0 1.3 Primary metals 33 1.5 -3.8 6.7 -3.8 -.6 -.1 .0 2.6 -2.4 -.4 Fabricated metal products 34 .1 3.7 4.6 -1.2 -.8 .0 .0 1.5 -.8 -1.1 Industrial machinery and equipment 35 .5 1.3 4.2 1.0 -2.5 .1 -.1 1.2 -2.5 -1.1 Electrical machinery 36 1.4 2.4 3.0 -2.0 -3.9 -.1 -.1 .7 -.9 1.1 Transportation equipment 37 -1.9 -.7 5.6 -.8 3.4 .1 -.3 .4 -.8 1.3 Instruments 38 .4 -2.9 1.0 3.8 .7 .0 -.1 .4 2.2 2.6 Miscellaneous manufactures 39 ^1.8 7.2 2.1 8.3 2.7 -.1 .3 1.8 6.5 -6.2 Nondurable manufacturing -2.0 2.8 -1.4 -.7 -4.1 .0 .2 -.9 .1 1.8 Foods 20 2.5 1.7 3.3 2.3 -2.9 .0 .0 1.1 -.1 -.2 Tobacco products 21 6.4 .0 .7 -1.7 -6.3 .1 .2 .2 .0 -1.5 Textile mill products 22 -3.3 2.7 3.2 -1.4 -2.2 .0 -.2 1.1 -3.3 1.8 Apparel products 23 -6.3 -1.8 -1.7 -3.4 -9.5 .0 .0 .2 -1.0 1.2 Paper and products 26 -.3 1.1 2.4 -.8 -1.1 .3 .7 .2 .8 2.2 Printing and publishing 27 .6 .8 2.9 2.2 -5.4 -.1 .0 -.1 .3 -.1 Chemicals and products 28 -6.5 6.0 -5.6 -2.3 -9.8 -.1 .3 -1.5 .2 2.4 Petroleum products 29 7.4 -3.2 -3.4 -1.2 5.3 .1 .1 -5.9 1.8 3.8 Rubber and plastics products 30 -.5 3.3 1.9 3.6 1.1 .0 -.2 1.3 -1.2 .1 Leather and products 31 -9.3 -1.5 -1.3 -3.8 -8.4 -.1 -.1 .3 -.8 -1.5 Mining 1.1 3.0 -.2 -.6 -.9 .0 .2 .2 -.9 1.2 Metal mining 10 8.3 2.6 .4 -.1 -2.8 -.1 .1 -.1 -.1 1.6 Coal mining 12 -1.3 .0 .0 1.0 -1.2 .0 .0 .7 -.6 1.1 Oil and gas extraction 13 -5.0 4.5 1.5 -6.6 1.8 .0 .1 .5 -1.3 -.9 Stone and earth minerals 14 6.0 4.4 -4.8 9.5 -2.6 .3 .7 -.6 -2.0 4.4 Supplementary groups Total, excluding nuclear nondefense .6 1.0 2.4 -1.3 -.4 .0 .1 .2 -.6 1.0 Utilities sales to industry -1.1 2.1 1.2 -.8 -2.3 .0 .1 .2 -.6 1.0 Industrial generation 4.8 -5.7 .7 -1.9 3.9 .0 .0 -.1 -.7 .7 NOTE. Growth rates are calculated as the percentage change in the seasonally 1. Standard Industrial Classification; see table A.4, note 1. adjusted index from the fourth quarter of the previous year to the fourth quarter of the year specified. For 1999, the growth rates are calculated from the fourth quarter of 1998 to the third quarter of 1999 and annualized. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
206 Treasury and Federal Reserve Foreign Exchange Operations This report, presented by Peter R. Fisher, Executive 1. The dollar and the euro against the Japanese yen, 1999:Q4 Vice President, Federal Reserve Bank of New York, Yen per dollar Yen per euro and Manager, System Open Market Account, describes the foreign exchange operations of the U.S. Department of the Treasury and the Federal Reserve System for the period from October through December 1999. Deborah L. Leonard was primarily responsible for preparation of the report. During the fourth quarter of 1999, the dollar depreciated 3.7 percent against the yen and appreciated 6.2 percent against the euro. On an effective tradeweighted basis, the dollar appreciated 0.8 percent. Oct. Nov. Dec. Market expectations for sustained economic growth 1999 in the United States provided underlying support for NOTE. The data are daily. the dollar and U.S. equity markets. Changes in the SOURCE. Bloomberg L.P. dollar's value were also influenced by portfolio flows that contributed to the continued appreciation of the yen and depreciation of the euro. Daily foreign of -22 and -17, respectively, reached the survey's exchange trading volumes fell sharply toward the highest levels in two years, although the improvevery end of the quarter, although financial markets ment mainly reflected the results for large manufacdemonstrated no discernible signs of dislocation turing firms. On November 15, Japan's third-quarter before the century date change. The U.S. monetary industrial production was reported to have risen authorities did not intervene in the foreign exchange 3.9 percent since the previous quarter. On Decemmarkets during the quarter. ber 6, Japan's third-quarter gross domestic product was reported to have contracted 1.0 percent for the quarter; second-quarter GDP growth, however, was CURRENCY MOVEMENTS DOMINATED revised upward from 0.1 to 1.0 percent. Market par- BY YEN STRENGTH AND EURO WEAKNESS ticipants also noted three consecutive positive reports of the Economic Planning Agency's monthly leading Over the course of the fourth quarter, the yen rose and coincident diffusion indexes. The Japanese govsteadily to a four-year high of ¥101.64 against the ernment's November 11 announcement of an ¥18 trildollar and an all-time high of ¥102.60 against the lion supplementary spending package, including an euro. The yen's appreciation accompanied continued expected ¥6.5 trillion of actual spending, was perperceptions of economic improvement in Japan, capi- ceived as demonstrating an ongoing government tal flows into Japanese assets, and uncertainty regard- commitment to employing fiscal stimulus measures. ing the prospects for additional stimulus by the Bank At the outset of the quarter, attention focused on of Japan. The movement prompted several publicly the prospects for the Bank of Japan to adopt "quanticonfirmed interventions in the foreign exchange mar- tative easing" measures to invigorate Japan's econkets by the Japanese monetary authorities. omy further. The Bank of Japan's announcements of Market participants cited modest signs of improve- measures aimed at improving the flexibility of its ment in several key Japanese economic data reports operations and at providing ample liquidity over the and revisions to previous reports as evidence that turn of the year were perceived as introducing techni- Japan's economic cycle was turning. Tankan busi- cal changes that did not alter the stance of Japanese ness sentiment indexes in September and December monetary policy. Short-term interest rates in Japan Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
207 2. Global benchmark stock indexes, 1999:Q4 aging hedging or liquidation of those positions. Some Japanese investors who were reluctant to maintain Index, October 1 = 100 large overseas exposures amid year-end uncertainty, U.S. S&P 500 index reportedly repatriated capital or curtailed investment outflows before the century date change, thus creating additional demand for yen. In Europe, perceptions that the euro-area economic outlook had improved, views that there were upside risks of inflation, and commentary from European Central Bank (ECB) officials prompted heightened expectations of an interest rate hike by the ECB during the fourth quarter. Expectations solidified after October 27, when year-on-year M3 money supply Oct. Nov. Dec. in the euro area was reported to have grown 6.1 per- 1999 cent in September, outpacing the ECB's target rate NOTE. The data are daily. SOURCE. Bloomberg, L.P. of 4.5 percent. On November 4, the ECB raised its two-week refinancing rate 50 basis points, to 3.00 percent. Commenting after the action, ECB rose marginally over the quarter, at times affected by President Duisenberg said that the "timely rise [in continued evidence of improving economic condiinterest rates] will avoid the need for a bigger rise tions, strength in the equity markets, and comments later." After the move, the yield implied by the from Bank of Japan officials regarding the extraor- March 2000 Euribor futures contract fell to its period dinary nature of the zero interest rate policy. low of 3.46 percent, and European sovereign bond Expressing growing confidence in prospects for an yields fell, as market participants noted that the rate upswing in Japan's economy, foreign investors rise helped to mitigate expectations of a sustained increased their direct and portfolio capital investcycle of monetary tightening in Europe. Yields ments in Japan. The Nikkei rose to a two-year high rebounded in the second half of the quarter, with while broader Japanese equity indexes rose even ten-year sovereign benchmark bond yields rising more sharply, buoyed by evidence of corporate approximately 50 basis points but remaining below restructuring and the global rally in the equity martheir period highs, amid global declines in bond kets. As foreign portfolio inflows continued, the Minprices and as economic data pointed to stronger Euroistry of Finance reported that foreign direct investpean growth. Germany's 3.2 percent rise in October ment rose to ¥1.3 trillion during the first half of 1999, manufacturing orders, 1.7 percent rise in industrial more than twice the amount during the same period production the same month, and a better-thanin 1998. In the meantime, the yen's persistent appreexpected November business climate survey by the ciation continued to reduce the value of unhedged German IFO Institute all supported the improved foreign assets for Japanese investors, further encour- 3. The euro against the dollar, 1999:Q4 4. Spreads between U.S. and European yields, 1999:Q4 Dollars per euro Basis points Basis pojnLs Yield spread on benchmark ten-year A iv U.S. and German government bonds /1 N \ — 1.08 120 — 260 — — — 1.06 110 — / V\ is/V V 1 f 250 W \a — 1.04 ioo W \nf v = 240 — V — 102 — ** — 1.00 90 f ^ S AAI \ " "" 230 — .98 80 — \j » Implied yield spread on March 2000 220 ™ Eurodollar and Euribor futures contracts i i i 1 1 1 1 1 Oct. Nov. Dec. Oct. Nov. Dec. 1999 1999 NOTE. The data are daily. NOTE. The data are daily. SOURCE. Bloomberg L.P. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
208 Federal Reserve Bulletin • March 2000 5. Trade-weighted values for Group of Three currencies, and bankruptcy proceedings could signal a slowing in 1999:Q4 corporate restructuring efforts in the euro area. Index, October 1 = 100 DOLLAR SUPPORTED BY EXPECTATIONS Yen FOR SUSTAINED U.S. GROWTH Despite its mixed performance against the euro and the yen, the dollar's value remained relatively stable on a trade-weighted basis. When measured broadly against the currencies of major trading partners, the dollar appreciated 0.8 percent, while the yen appreciated 6.3 percent, and the euro depreciated 4.4 percent during the fourth quarter. The relative resilience of Oct. Nov. Dec. U.S. asset markets amid tightening monetary condi- 1999 tions in the United States provided underlying sup- NOTE. The data are daily. SOURCE. Bank of England. port for the dollar. Yields on U.S. Treasury securities rose to their expectations for growth. Annualized third-quarter highest levels in more than two years after the Fedgrowth in the euro area of 2.3 percent also exceeded eral Open Market Committee's (FOMC) adoption of consensus forecasts. a tightening bias at its October 5 meeting and its Despite higher domestic interest rates and eco- decision to raise the federal funds target rate from nomic growth prospects, the euro weakened steadily 5.25 to 5.50 percent on November 16. Data releases against the dollar and the yen. On December 2 and 3, throughout the quarter were perceived to show strong, the euro briefly dipped below $1.00. Throughout the non-inflationary U.S. growth that contributed to a quarter, the effect on the euro of widening U.S.- 20-basis-point flattening of the two-to-thirty-year European yield differentials and reported global port- Treasury coupon curve to a fifteen-month low of folio reallocations appeared to outweigh Europe's 23 basis points. While data continued to show someimproving growth outlook and robust gains in its what modest upward pressures on earnings, producer equity markets. In the first half of the quarter, market prices, and consumer prices, stronger-than-expected participants noted sizable euro sales as portfolio growth, and consumption data raised market expectamanagers—who reportedly had relatively high euro tions that subsequent rate hikes would moderate the weightings relative to their benchmarks—moved pace of U.S. growth. The third-quarter employment toward more neutral currency positions in early cost index, reported on October 28, fell from 1.1 perpreparation for the year-end. Net speculative posi- cent in the second quarter to 0.8 percent in the fourth tions on currency futures exchanges, as well as sur- quarter. Employment reports released during the vey flow data, appeared to show similar patterns. quarter generally showed lower-than-expected gains Japanese investors reportedly continued to hedge their European investments to protect against foreign 6. Yields on U.S. Treasury securities, 1999:Q4 exchange losses on capital investments. Market participants also noted the resilience of U.S. asset markets and widening yield differentials as factors weighing on the euro. The annualized yield — 6.6 spread between the benchmark ten-year U.S. Treasury and German bund widened from 89 to 119 basis points by the end of the quarter. European sovereign bonds outperformed U.S. Treasury securities as market participants estimated that (1) inflation in Europe would remain relatively low, (2) that moderate European rate hikes in the future were already reflected in prices, and (3) that a more pronounced cycle of monetary tightening in the United States was under Oct. Nov. Dec. way. Lastly, some cited concerns that intervention by 1999 European governments in mergers and acquisitions NOTE. The data are daily. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations 209 in nonfarm payrolls and average hourly earnings. Market Bond Index (EMBI+) sovereign yield and However, third-quarter GDP growth of 4.8 percent U.S. Treasury securities having fallen 274 basis and a deflator of 0.9 percent, reported on October 28, points, to 824 basis points—its lowest level since were revised upward to 5.5 percent and 1.1 percent, August 1998. Moreover, Latin American and Asian respectively, on November 24. September and Octo- telecommunication stocks rallied along with other ber retail sales figures, excluding autos, were also global technology shares, as growth in those regions higher than expected. Market participants perceived continued to improve from technology exports and that the tone of the FOMC's December 21 directive gains in productivity. was relatively hawkish, even though the Committee maintained its symmetric directive "in light of market uncertainties associated with the century date ORDERLY FINANCIAL MARKETS change." By the end of the quarter, the implied yield BEFORE THE Y2K TURN on the February federal funds futures contract had risen 37 basis points, to 5.79 percent. As the year's end approached, uncertainties associ- Despite rising bond yields, U.S. and global equity ated with the century date change did not create any markets surged to record highs as market participants visible distress in the foreign exchange market. Overexpressed increased confidence in the prospects for all, trading volumes reportedly remained within their sustained global growth and as global liquidity average ranges for 1999 until well into December— remained high. The Dow Jones Industrial Average longer than many would have predicted earlier in the and the S&P 500 indexes rose 11.2 and 14.5 percent, year. By December 31, however, trading volumes had respectively, while the Nasdaq skyrocketed 48.2 per- ground nearly to a halt as market participants postcent. The momentum contributing to the Nasdaq's poned all but absolutely necessary transactions until performance accelerated after the October 28 release the new year. of third-quarter GDP and employment cost figures, as Trading activity appeared orderly throughout the well as Chairman Greenspan's speech on the same period, although bid-ask spreads on major currency day noting the contributions that technology has pairs more than doubled in the last trading days of the made to U.S. productivity and recent economic year. However, volatility implied by currency options performance. remained in recent ranges in the final weeks of the Higher interest rates in the United States did not year as spot market activity diminished. Although appear to weigh negatively on sentiment toward some portfolio managers who were concerned about emerging-market assets. On the contrary, confidence year-end liquidity reportedly moved toward more in global growth prospects fueled investor interest neutral positions relative to their benchmarks early in in emerging-market assets throughout the quarter. the period, other indications by the end of the quarter Spreads between emerging-market sovereign debt suggested that broadly based risk aversion was not and comparable US. Treasury securities narrowed, prevalent in the financial markets. Global stock with the spread between J.P. Morgan's Emerging markets rallied amid relatively heavy trading vol- 7. Emerging market bond index (EMBI+) sovereign spread over comparable U.S. Treasury securities, 1999:Q4 8. Volatility implied by one-month option prices, 1999:Q4 Basis points Percent — 18 — 1,100 — 16 — — 1,000 A AA A Euro-yen W 14 — — 900 - Dollar-yen V—v j) — 12 — 10 Euro-dollar — 800 — 8 1 1 1 I 1 1 I 1 Oct. Nov. Dec. Oct. Nov. Dec. 1999 1999 NOTE. The data are daily. NOTE. The data are daily. SOURCE. J.P. Morgan. SOURCE. Reuters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
210 Federal Reserve Bulletin • March 2000 ume through December, confidence in prospects for practicable, these investments are split evenly emerging-market growth prospects improved, and between the Federal Reserve System and the credit and swap spreads narrowed. Exchange Stabilization Fund. A portion of the balances is invested in German and Japanese government securities held directly or TREASURY AND FEDERAL RESERVE FOREIGN under repurchase agreement. Government securities EXCHANGE RESERVES held under repurchase agreement are arranged either through transactions executed directly in the market The U.S. monetary authorities did not undertake any or through agreements with official institutions. Forintervention operations during the quarter. At the end eign currency reserves are also invested in deposits of the quarter, the current values of euro and Japanese at the Bank for International Settlements and faciliyen reserve holdings totaled $16.1 billion for the ties at other official institutions. As of December 31, Federal Reserve System and $16.2 billion for the direct holdings of foreign government securities Exchange Stabilization Fund. The U.S. monetary totaled $9.2 billion, split evenly between the two authorities invest all of their foreign currency bal- authorities. Foreign government securities held under ances in a variety of instruments that yield market- repurchase agreement totaled $13.7 billion at the end related rates of return and have a high degree of of the quarter and were also split evenly between the liquidity and credit quality. To the greatest extent two authorities. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Treasury and Federal Reserve Foreign Exchange Operations 211 1. Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 1999:Q4 Millions of dollars Quarterly changes in balances, by source BBaallaannccee,, BBaallaannccee,, IItteemm SSeepptt.. 3300,, 11999999'' Net purchases Effect of Investment Currency Interest accrual DDeecc.. 3311,, 11999999 and sales2 sales3 income ad v j a u l s u t a m ti e o n n t s4 and other SilSislj FEDERAL RESERVE SYSTEM OPEN MARKET ACCOUNT (SOMA) EMU euro 7,221.8 0.0 0.0 38.9 -390.1 0.0 6,870.6 Japanese yen 8,831.9 0.0 0.0 0.7 388.9 0.0 9,221.5 Total 16,053.7 0.0 0.0 39.6 -1.2 0.0 16,092.1 - J Interest receivables, net5 64.5 -16.5 48.0 Total 16,118.2 0.0 0.0 39.6 -16.5 16,140.1 MMfeKf M U.S. TREASURY EXCHANGE STABILIZATION FUND (ESF) V T v — IAC EMU euro 7,219.1 0.0 0.0 39.4 -390.0 0.0 6,868.5 Japanese yen 8,831.8 0.0 0.0 0.7 389.0 0.0 9,221.5 Total 16,050.9 0.0 0.0 40.1 -1.0 0.0 16,090.0 Interest receivables5 66.2 12.4 78.6 Total 16,117.1 0.0 0.0 40.1 -1.0 12.4 16,168.6 NOTE. Earlier period figures have been reclassified to the current presentation. rencies, computed as the difference between the historical cost-of-acquisition 1. Unearned interest collected in the amounts of $13.4 million and $13.3 mil- exchange rate and the sale exchange rate, are reflected in table 2. lion for the Federal Reserve and ESF, respectively, are not included. These 4. Foreign currency balances are marked-to-market monthly at month-end amounts are cash flow differences from payment and collection of funds exchange rates. between quarters. 5. Interest receivables for the ESF are revalued at month-end exchange rates. 2. Purchases and sales for the purpose of this table include foreign cur- Interest receivables for the Federal Reserve System are carried at average cost rency sales and purchases related to official activity, swap drawings and repay- of acquisition and are not marked to market until interest is paid. Interest ments, and warehousing. receivables for the Federal Reserve System are net of unearned interest 3. This figure is calculated using marked-to-market exchange rates; it collected. represents the difference between the sale exchange rate and the most recent . . . Not applicable. revaluation exchange rate. Realized profits and losses on sales of foreign cur- 2. Net profits or losses (-) on U.S. Treasury 3. Currency arrangements, December 31, 1999 and Federal Reserve foreign exchange operations, Millions of dollars based on historical cost-of-acquisition exchange rates, 1999:Q4 Institution Amount of Outstanding, facility Dec. 31, 1999 Millions of dollars Federal Reserve Federal U.S. Treasury reciprocal currency Reserve Exchange arrangements Period and item System Open Stabilization Market Account Fund BBaannkk ooff CCaannaaddaa 22,,000000 00..00 BBaannkk ooff MMeexxiiccoo 33,,000000 00..00 Valuation profits and losses on outstanding assets and liabilities, TToottaall 55,,000000 00..00 Sept. 30, 1999 EMU euro -119.9 -336.9 U.S. Treasury Japanese yen 1,775.8 1,988.0 Exchange Stabilization Fund currency arrangements Total 1,655.9 1,651.1 BBBaaannnkkk ooofff MMMeeexxxiiicccooo 33,,000000 00..00 Realized profits and losses from foreign currency sales, TTToootttaaalll 33,,000000 00..00 Sept. 30, 1999-Dec. 31, 1999 EMU euro 0.0 0.0 Japanese yen 0.0 0.0 Total 0.0 0.0 Valuation profits and losses on outstanding assets and liabilities, Dec. 31, 1999 EMU euro -510.0 -726.9 Japanese yen 2,178.1 2,390.2 Total 1,668.0 1,663.4 NOTE. Components may not sum to totals because of rounding. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
212 Industrial Production and Capacity Utilization for January 2000 Released for publication February 15 both manufacturing and mining increased about 1 percent. At 141.5 percent of its 1992 average, industrial production in January was 5.5 percent Industrial production increased 1.0 percent in January higher than in January 1999. The rate of capacity after advances of 0.3 percent in November and utilization for total industry rose 0.5 percentage point, 0.4 percent in December. The output of utilities to 81.6 percent, more than 1 percentage point above increased 1.8 percent in January, while output for its level in January 1999. 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 - 155 Intermediate products 155 145 145 Durable AT* 135 135 - - 125 Construction supplies 125 115 115 - 105 105 Nondurable 95 Business supplies 95 V i i i 1 1 1 1 1 1 1 J I L Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 190 205 Equipment - 175 190 160 175 160 Business 145 - 145 130 130 115 115 100 100 Defense and space 85 85 1 1 1 1 i i i i r ~i N. J I L 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 ex of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
213 Industrial production and capacity utilization, January 2000 Industrial production, index, 1992 = 100 Percentage change CCCaaattteeegggooorrryyy 11999999 22000000 1999' 2000 JJaann.. 11999999 ttoo Oct/ Nov/ Dec/ Jan.p Oct/ Nov/ Dec/ Jan.P JJaann.. 22000000 Total 139.1 139.5 140.1 141.5 .7 .3 .4 1.0 5.5 Previous estimate 139.4 139.9 140.5 1.0 .4 .4 Major market groups Products, total2 128.5 128.2 128.4 129.6 .7 -.2 .2 1.0 3.3 Consumer goods 118.2 117.7 118.2 119.3 .9 -.4 .3 1.0 2.6 Business equipment 174.8 174.8 174.5 177.8 .6 .0 -.2 1.9 7.2 Construction supplies 135.4 134.7 134.5 134.8 .9 -.5 -.2 .2 1.1 Materials 156.8 158.7 160.1 161.8 .7 1.2 .9 1.0 9.2 Major industry groups Manufacturing 144.2 144.9 145.2 146.6 .9 .5 .2 .9 5.8 Durable 176.5 177.2 178.0 180.4 .8 .4 .4 1.3 8.5 Nondurable 113.0 113.6 113.5 113.9 1.0 .6 -.1 .3 2.3 Mining 99.2 99.6 99.6 100.6 .9 .4 .0 1.0 2.7 Utilities 115.2 112.8 117.5 119.7 -2.2 -2.0 4.2 1.8 4.5 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1999 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, JJJaaannn... 111999999999 11996677--9999 11998822 11998888--8899 Jan. Oct/ j Nov/ Dec/ Jan.p tttooo JJJaaannn... 222000000000 Total 82.0 71.1 85.4 80.4 81.0 81.0 81.1 81.6 4.0 Previous estimate 81.2 81.2 81.3 Manufacturing 81.1 69.0 85.7 79.6 80.2 80.3 80.2 80.6 4.4 Advanced processing 80.5 70.4 84.2 78.4 79.1 79.1 79.0 79.6 5.4 Primary processing . 82.4 66.2 88.9 83.1 83.4 83.9 83.6 83.9 2.2 Mining 87.3 80.3 88.0 81.3 82.6 82.9 82.9 83.9 -.4 Utilities 87.5 75.9 92.6 90.3 89.9 88.0 91.6 93.2 1.4 NOTE. Data seasonally adjusted or calculated from seasonally adjusted 2. Contains components in addition to those shown, monthly data. r Revised, 1. Change from preceding month. p Preliminary. MARKET GROUPS equipment, which had flattened late last year, rose 1 percent. The production of information processing The output of consumer goods, which on balance had and related equipment, for which growth averaged been flat during November and December, increased about 1 percent per month during the fourth quarter, about 1 percent in January. The output of durable rose 2.8 percent in January, led by gains in the output consumer goods surged 1.9 percent; the production of communication equipment and computers. The of automotive products jumped 2.9 percent, making output of defense and space equipment fell about up the losses posted in the previous two months. The 2 percent further in January, to a level 5.6 percent production of other durable consumer goods also below that of a year earlier. rose strongly; the output of household appliances The output index of construction supplies, which increased 4 percent, and the index for carpeting and had declined in November and December, edged up furniture advanced further. The production of non- 0.2 percent in January to match the high level of the durable consumer goods also accelerated, rising fourth quarter. The output of materials increased 0.7 percent. The gain reflected both a further rebound 1.0 percent, about the same as the average gain in the in the output of energy products and an upturn in the preceding three months. The output of durable goods output of non-energy consumer products. materials rose 1.3 percent, with another strong The production of business equipment, which had increase in equipment parts, particularly semiconduceased over the preceding two months, jumped tors. The output of nondurable goods materials 1.9 percent in January. The output of transit equip- moved up slightly in January, and the output of ment rebounded 1.9 percent because of an increase in energy materials, which had increased 1.4 in Decemmotor vehicle assemblies. The output of industrial ber, gained an additional 0.9 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
214 Federal Reserve Bulletin • March 2000 INDUSTRY GROUPS cent in January, to a level 2.3 percent higher than in January 1999. Among nondurable manufacturing Manufacturing output rose 0.9 percent in January; industries, production gains were widespread except most major industries posted gains. Production in for downturns in the output of tobacco and petroleum durable manufacturing gained 1.3 percent after products. increases of 0.4 percent in both November and The factory operating rate rose to 80.6 percent. December. The output of motor vehicles and parts, Utilization in primary-processing industries increased which had dropped 1.7 percent in December, to 83.9 percent, while that for advanced-processing rebounded 3.5 percent. The production of electrical industries advanced 0.6 percentage point, to 79.6 machinery surged more than 3 percent, led by a percent. 4 percent gain in semiconductors and related equip- Output at utilities, which had rebounded 4.2 perment. The production of industrial machinery and cent in December, was up another 1.8 percent in equipment increased more than 1 percent. In contrast, January; the operating rate at utilities rose to 93.2 perthe output of aircraft and parts continued to decline, cent. Boosted by the continuing recovery in oil and and the output of primary metals and instruments gas extraction, mine production increased 1.0 peredged down. cent. The utilization rate at mines increased to After having changed little in December, produc- 83.9 percent but remained noticeably below its longtion in nondurable manufacturing increased 0.3 per- term average. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
215 Statement to the Congress Statement by Alan Greenspan, Chairman, before the that tend to reduce accountability and market disci- Committee on Banking, Housing, and Urban Affairs, pline and foster excessive and destabilizing risk- U.S. Senate, January 26, 2000 taking. For the economy overall, the marked pickup in I want to begin my remarks today by expressing my technological innovation has accelerated productivgratitude to President Clinton for his confidence in ity and raised standards of living for many—though me, and to you, Mr. Chairman and members of the regrettably not all—Americans. Our challenge in committee, for holding hearings on my renomination monetary policy is to foster, as best we can, the for a fourth term as Chairman of the Board of Gov- financial conditions that will allow this economic ernors of the Federal Reserve System. The Federal expansion and technological revolution to continue Reserve has had a close and productive relation- as long, and as vigorously, as possible. Experience ship with this committee over the years. If you and has demonstrated that an essential ingredient in this your Senate colleagues afford me the opportunity, I prosperity, and an ingredient for which the central look forward to working with you in the years ahead bank has ultimate responsibility over the long run, to build a framework to enable the American peo- is low and stable inflation. Effective price stability ple to enjoy the fruits of a sound and efficient finan- removes a major source of uncertainty and distortion cial system in an economy that is delivering the that would otherwise interfere with the spending and greatest possible sustained increases in standards of saving decisions of households and businesses. Mainliving. taining price stability also reduces the likelihood that We at the Federal Reserve face considerable chal- imbalances could develop that would ultimately lenges in carrying out our responsibilities for both the undermine economic expansion. financial system and the overall economy. In many We have also learned that the Federal Reserve's respects, these challenges relate to discerning, and potential contributions to financial and economic stakeeping up with the implications of, the accelerating bility should not end with making policy decisions. pace of technological change in our society. The We also need to explain to the public what we are Congress took a major step last year in passing doing and why. Importantly, in our democratic syslegislation that will help the citizens of the United tem our explanations provide the members of this States realize the benefits of the rapid evolution of committee, your congressional colleagues, and the technology in the delivery of financial services. people you serve with the information necessary to The Federal Reserve's challenge now, working evaluate our actions and to hold us accountable for with our fellow regulators, is not only to implement them. As you know, we have made considerable the new law but more broadly to design supervisory efforts in recent years to improve the communication and regulatory policies that can deal effectively with of our decisions, our expectations, and their rationthe changing financial structure. Effective oversight ales to the public consistent with our mandate to must balance a number of possibly conflicting cri- deliver effective monetary policy. This has not teria. It must enable our financial sector to evolve in always been a straightforward process, in which the a way that allows competition and technological consequences of each step could be readily predicted, change so that financial services are delivered in the but it is one that must continue. least costly, most efficient way possible to the highest Thus the challenges and the opportunities are subpossible number of our citizens. It must at the same stantial in a number of the areas in which the Contime foster the fundamental soundness of our finan- gress has given the Federal Reserve important cial system and put in place safeguards to protect responsibilities. But in the Federal Reserve, the Conagainst the remote possibility that unsound behavior gress also has created an institutional structure in the financial sector is transmitted beyond the firms extraordinarily well suited to address these issues. involved to the economy more generally. And it must The combination of a Board of Governors, firmly tied accomplish the latter with minimal use of the govern- to the national democratic process and providing ment safety net and of implicit or explicit guarantees overall leadership to the System, and regional Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
216 Federal Reserve Bulletin • March 2000 Reserve Banks, deeply rooted in their local communi- local contacts can reveal significant developments in ties, enables us to bring a unique perspective to the the economy before they are visible in the national consideration of policy issues. data and can help in understanding the forces behind Our Reserve Banks supply real-time information important economic trends. The Committee is an about developments in their regions, and ongoing extraordinary collection of individuals. Among the observation of, and familiarity with, the financial seventeen people gathered around that table, thirteen institutions headquartered there. This information have Ph.D.s. The others have the experience, skills, enhances our ability not only to conduct monetary and common sense to prevent the Committee from policy but also to supervise financial institutions and becoming paralyzed with a surfeit of two-handed deal with emerging problems in the financial sector, economists. and to play a constructive role in regional economic But monetary policy is not the only area in which developments. Board members and Reserve Bank this unique blend of skills and perspectives is brought presidents can employ these observations, along with to bear. We utilize committees of Board members and their knowledge of the national and international Reserve Bank presidents to deal with such responsieconomic and financial situations, to carry out our bilities as our oversight of the payments system and legislated mandates. the implications for supervision and regulation of the This structure and these responsibilities have growing size and complexity of financial institutions. attracted to the Federal Reserve System men and What success the Federal Reserve has had in carrywomen of high intellectual capabilities and deep ing out its legislated responsibilities in recent decades knowledge of the relevant subjects. Naturally, and derives from many sources. Certainly, we have fortunately, these people often disagree. Disagree- enjoyed good fortune—dealing with the challenges ments, however, are largely over evidence and analy- of a pickup in innovation and productivity is decidsis, not goals and objectives. To be sure, Federal edly more enjoyable than the task faced by our prede- Reserve decisions often emerge as a broad consen- cessors in the 1970s when productivity slowed and sus of policymakers. But forming that consensus stagflation held sway. I believe we have also learned involves considerable give and take, with many peo- from our past mistakes, and I hope that we will ple influencing the outcome. recognize the new misjudgments we will inevitably Policymakers are in turn supported by outstanding make quickly enough to prevent them from becoming staff at the Board and the Reserve Banks. Many, too serious and disruptive. And we have had help and perhaps most, of the policymakers and staff could be support from various Congresses and administrations making substantially more income in the private sec- seeking, like us, to promote sound public policies. tor, but, attracted by the character of their colleagues, But our ability to meet the legislative mandates of the the nature and importance of issues they deal with, Congress rests ultimately on the strength of the instiand the atmosphere in which those issues are tutions of the Federal Reserve and the people who addressed, they chose to exercise their considerable inhabit them. talents within the Federal Reserve. It has been an extraordinary privilege to be able to The strength of the institutions and structures of serve my country at the Federal Reserve, and I would the Federal Reserve is perhaps most visible in the be honored if the Senate saw fit to enable me to work of the Federal Open Market Committee. There, continue this association for another four years. • the ability of Reserve Bank presidents to draw on Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
217 Announcements ACTION BY THE FEDERAL OPEN MARKET These modifications, which will take effect as COMMITTEE AND AN INCREASE IN THE of the February FOMC meeting, are designed to DISCOUNT RATE enhance communication to the public. They are summarized here and described in more detail in the accompanying attachment.1 The Federal Open Market Committee voted on Feb- First, the Committee determined that a statement ruary 2, 2000, to raise its target for the federal funds rate by 25 basis points to 53/4 percent. In a related will be issued to the public immediately after every FOMC meeting. The previously stated procedure was action, the Board of Governors approved a 25-basispoint increase in the discount rate to 5 LA percent. to release a statement only in the event of a policy action or a major shift in the Committee's view about The Committee remains concerned that over time prospective developments. increases in demand will continue to exceed the growth in potential supply, even after taking account Second, the FOMC changed its language describof the pronounced rise in productivity growth. Such ing its assessment of future developments. This new trends could foster inflationary imbalances that language will describe the FOMC's consensus about would undermine the economy's record economic the balance of risks to the attainment of its long-run expansion. goals of price stability and sustainable economic growth and will be used in the announcement made Against the background of its long-run goals of after each meeting. More specifically, the announceprice stability and sustainable economic growth and ment will indicate how the Committee assesses the of the information currently available, the Committee risks of heightened inflation pressures or economic believes the risks are weighted mainly toward condiweakness in the foreseeable future. This time frame tions that may generate heightened inflation pressures in the new language is intended to cover an interval in the foreseeable future. extending beyond the next FOMC meeting. In taking the discount rate action, the Federal Reserve Board approved requests submitted by the Under its prior procedures, which will no longer boards of directors of the Federal Reserve Banks of be used, the FOMC's view about the period ahead Boston, New York, Philadelphia, Cleveland, Rich- (referred to as the "policy tilt" or "policy bias") was mond, Atlanta, Chicago, St. Louis, Kansas City, and couched in terms of the relative chances of an San Francisco. The Board subsequently approved increase or decrease in the intended federal funds similar actions by the boards of directors of the rate. The "bias" language voted on by the Committee Federal Reserve Bank of Minneapolis, effective Feb- explicitly referenced the intermeeting period. ruary 3, and of the Federal Reserve Bank of Dallas, The revised disclosure procedures were proposed effective February 4. The discount rate is the rate by the "Working Group on the Directive and Disclocharged depository institutions when they borrow sure Policy," which was formed in August 1999 and short-term adjustment credit from their District Fed- chaired by Federal Reserve Board Vice Chairman eral Reserve Banks. Roger W. Ferguson, Jr. The Working Group also included the following FOMC members: Governors Edward W. Kelley, Jr., Laurence H. Meyer, and Edward M. Gramlich and Federal Reserve Bank MODIFICATIONS TO THE DISCLOSURE Presidents Robert T. Parry (San Francisco), PROCEDURES OF THE FEDERAL OPEN MARKET Michael H. Moskow (Chicago), and William Poole COMMITTEE (St. Louis). The Federal Open Market Committee (FOMC) announced on January 19, 2000, that it approved 1. The attachment is available on the Board's web site (www.federalreserve.gov/boarddocs/press/General/2000) and on modifications to its disclosure procedures at its request from Publications Services, Mail Stop 127, Board of Gover- December 21 meeting. nors of the Federal Reserve System, Washington, DC 20551. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
218 Federal Reserve Bulletin • March 2000 APPOINTMENTS OF NEW MEMBERS TO THE She serves on several boards and committees, including the CONSUMER ADVISORY COUNCIL AND executive committee of the Research Institute for Housing America and the Mortgage Bankers Association of Ameri- DESIGNATION OF A NEW CHAIR AND VICE ca's Residential Board of Governors. CHAIR FOR 2000 Robert M. Cheadle The Federal Reserve Board on January 5, 2000, Ada, Oklahoma named seven new members to its Consumer Advi- Mr. Cheadle is an attorney and serves as Business Develsory Council for three-year terms and designated a oper for Chickasaw Enterprises, the economic developnew chair and vice chair of the council for 2000. ment division of the Chickasaw Nation. He has developed a tribally owned mortgage services firm to lead the effort The council advises the Board on the exercise of for community development in the Chickasaw Nation. its responsibilities under the Consumer Credit Protec- Previously, he served in other positions for the Chickasaw tion Act and on other matters in the area of consumer Nation and also was Senior Counsel at Fannie Mae. In financial services. The council meets three times a 1999, the Chickasaw Nation received a Social Compact year in Washington, D.C. Award and a Housing and Urban Development Best Practices Award for his work in developing a new Chickasaw Dwight Golann was designated chair; his term runs mortgage loan program. through December 2000. Mr. Golann is Professor of Law for the Sulfolk University Law School in Bos- Lester W. Firstenberger ton, Massachusetts. Previous positions include Chief Middletown, Connecticut of the Consumer Protection Division, Deputy Chief Since 1998, Mr. Firstenberger has been the Senior Vice of the Public Protection Bureau, and Assistant Attor- President and General Counsel of Mortgage Lenders Netney General for the Commonwealth of Massachu- work USA, Inc., one of the largest subprime lenders in the setts. Lauren Anderson was designated vice chair; United States. He handles legal and regulatory matters, her term on the council ends in December 2001. corporate firm mergers and acquisitions, and new product development. Previously, he had his own law firm, which Ms. Anderson is Executive Director of the Neighborfocused on consumer lending and related activities for hood Housing Services of New Orleans. Previously, large banks. Mr. Firstenberger also acted as chief counsel she was a project manager for the Department of for a large bank in developing an electronic check standard Housing and Economic Development for Jersey City, for the U.S. Department of Defense. New Jersey, and a staff attorney for the American Civil Liberties Union. M. Dean Keyes St. Louis, Missouri The seven new members are the following: Ms. Keyes is a Senior Vice President and Director of Corporate/Community Reinvestment Act Initiatives for Dorothy Broadman Mercantile Bancorporation, Inc., where she supports CRA San Francisco, California activities in six states. Previously, she was Vice President Ms. Broadman is Senior Vice President and Manager of for Community Investment at Citicorp Mortgage, Inc., the Community Development Department at Cal Fed Bank, where she developed CRA programs to ensure compliance FSB. She is Chairperson of the bank's senior management with federal law. Ms. Keyes is a participant on the boards committee responsible for overseeing Community Rein- of organizations that serve to promote affordable housing, vestment Act (CRA) activities. Ms. Broadman is the senior safe streets, racial equality, jobs, and economic developofficer responsible for CRA at the corporate level. Previ- ment. She also was instrumental in the initial start-up of ously, Ms. Broadman held positions at Citibank and at the Home Ownership Purchase Services Committee of the Wells Fargo Bank. She serves on several boards and advi- Neighborhood Housing Services of St. Louis; the commitsory councils, including the Executive Committee of the tee focuses on consumer education. National Association of Affordable Housing Lenders, the CRA Committee of the Consumer Bankers Association, Jeremy Nowak and as chairperson of a Local Initiatives Support Corpora- Philadelphia, Pennsylvania tion advisory council. Mr. Nowak is the Chief Executive Officer of The Reinvestment Fund, a community development financial institu- Teresa Bryce tion. The organization's mission is to alleviate poverty and Charlotte, North Carolina revitalize low- and moderate-income neighborhoods by Ms. Bryce is General Counsel of Bank of America Mort- providing capital and technical assistance to commugage and General Counsel of Bank of America Corpora- nity organizations, developers, and businesses. In 1994, tion. She supports both the mortgage banking division and Mr. Nowak received The Philadelphia Award, the city's the Community Development Banking Group. Ms. Bryce highest civic honor, for his work in advancing the best oversees compliance with the Community Reinvestment interests of the community. He is on several boards, includ- Act, fair lending issues, and consumer protection laws. ing the Public/Private Ventures, the Economic Develop- Previously, Ms. Bryce was with Prudential Home Mort- ment Coalition of The Greater Philadelphia First Corporagage, where she promoted affordable housing initiatives. tion, and PhAME, Inc. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 219 Russell W. Schrader Vincent Giblin, Chief Executive Officer, International Foster City, California Union of Operating Engineers, West Caldwell, New Jersey Mr. Schrader is Senior Vice President and Assistant Gen- Willie Jones, Deputy Director, The Community Builderal Counsel of Visa, U.S.A. Inc. He is responsible for ers, Inc., Boston, Massachusetts regulatory and legislative issues related to the application of consumer banking laws and regulations to credit, Anne S. Li, Executive Director, New Jersey Community debit, and ATM cards and to the e-commerce environment. Loan Fund, Trenton, New Jersey Before 1996, Mr. Schrader spent twelve years as Vice President and Senior Associate Counsel for The Chase Marta Ramos, Vice President and CRA Officer, Banco Manhattan Bank, where he was involved with consumer Popular de Puerto Rico, San Juan, Puerto Rico and mortgage lending, legal services to retail banks, and insurance issues. Gary S. Washington, Senior Vice President, ABN AMRO, Chicago, Illinois Council members whose terms continue through 2000 are the following: Robert L. Wynn II, Financial Education Officer, Department of Financial Institutions, Madison, Wisconsin Walter J. Boyer, Garland, Texas ADOPTION OF AN INTERIM RULE FOR Jeremy Eisler, Director of Litigation, South Mississippi Legal Services Corp., Biloxi, Mississippi PROCEDURES FOR ELECTING TO BECOME A FINANCIAL HOLDING COMPANY Robert F. Elliott, Lake Forest, Illinois The Federal Reserve Board on January 19, 2000, Karla Irvine, Executive Director, Housing Opportunities announced its approval of an interim rule setting Made Equal of Greater Cincinnati, Inc., Cincinnati, Ohio forth procedures for bank holding companies and foreign banks with U.S. offices to elect to be treated Gwenn Kyzer, Vice President, Target Marketing Service, Experian, Inc., Allen, Texas as financial holding companies. Financial holding companies may engage in a broad range of securities, John C. Lamb, Senior Staff Counsel, Department of insurance, and other financial activities under Title I Consumer Affairs, Sacramento, California of the Gramm-Leach-Bliley Act, which becomes effective on March 11, 2000. Martha W. Miller, President, Choice Federal Credit The Board has made the rule effective on Union, Greensboro, North Carolina March 11, 2000, the effective date of the statute. The Daniel W. Morton, Vice President and Senior Counsel, Board will also accept public comments on the The Huntington National Bank, Columbus, Ohio interim rule that are submitted by March 27, 2000, and will make changes to the rule as appropriate after David L. Ramp, State of Minnesota, Assistant Attorney reviewing the comments. General, St. Paul, Minnesota While the rule will not be effective until March 11, 2000, bank holding companies and foreign banks that Robert G. Schwemm, Professor of Law, University of Kentucky, Lexington, Kentucky meet the relevant qualifications may begin filing elections to become financial holding companies at any David J. Shirk, Senior Manager, Lending Systems time. Elections should be filed with the appropriate Framework, Inc., Tarry town, New York Reserve Bank for the bank holding company or foreign bank. Council members whose terms continue through The Federal Reserve System will endeavor on 2001 are the following: March 13, 2000, which is the first business day after the effective date of the financial holding company Malcolm M. Bush, President, The Woodstock Institute, provisions of the Gramm-Leach-Bliley Act, to act Chicago, Illinois on all elections filed before February 15, 2000. The Mary Ellen Domeier, President, State Bank & Trust System will act on all other elections as quickly as Company of New Ulm, New Ulm, Minnesota practicable. Any elections filed before March 11, 2000, would not become effective, in the absence of John C. Gamboa, Executive Director, The Greenlining Board action, until the thirty-first day after March 11 Institute, San Francisco, California (or April 11, 2000). With respect to foreign banks, the Board believes Rose Garcia, Executive Director, Tierra del Sol Housing Corporation, Las Cruces, New Mexico that the standards and procedures proposed establish Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
220 Federal Reserve Bulletin • March 2000 a flexible approach that takes account of the statutory ings credits granted to depository institutions under requirement for comparability of capital and man- the Monetary Control Act of 1980 amounted to agement standards while ensuring that foreign $322 million. Assessments against Reserve Banks for banks operating in the United States are also offered Board expenditures totaled $214 million, and the cost national treatment and equality of competitive of currency amounted to $485 million. opportunity. Net deductions from income amounted to $526 million, resulting primarily from unrealized losses on assets denominated in foreign currencies PROPOSED ACTION that were revalued to reflect current market exchange rates. Statutory dividends to member banks were The Federal Reserve Board on February 3, 2000, $375 million. voted to request comment on a new regulation imple- Under the policy established by the Board of Govmenting the privacy provisions of the Grammernors at the end of 1964, all net income after the Leach-Bliley Act. statutory dividend to member banks and the amount Regulation P (Privacy of Consumer Financial Innecessary to equate surplus to paid-in capital is transformation) would apply to institutions regulated by ferred to the U.S. Treasury. the Board, including bank holding companies, financial holding companies, state-chartered banks that are members of the Federal Reserve System, and unin- ENFORCEMENT ACTIONS sured state-chartered U.S. offices and branches of foreign banks. Comments are requested by March 31, The Federal Reserve Board on January 19, 2000, 2000. announced the issuance of an order of assessment of a civil money penalty against Charles A. Drummond, a former president, chief executive officer and direc- APPROVAL OF FEE SCHEDULES FOR PRICED tor, and an institution-affiliated party of the Profes- SERVICES OF THE FEDERAL RESERVE BANKS sional Bank, Denver, Colorado. Mr. Drummond, without admitting to any allega- The Federal Reserve Board on January 6, 2000, tions, consented to the issuance of the order for his announced fee schedules for priced services and elecalleged violations of sections 23A, 23B, and 22(h) of tronic connections, as well as the private-sector the Federal Reserve Act, 12 U.S.C. §§371c, 371c-l, adjustment factor (PSAF) used in setting the fees. and 375b, and Regulation O, 12 C.F.R. Part 215, in The Board approved the fee schedules on Decemconnection with insider and affiliate transactions at ber 17, 1999. The effective date of the fees was the bank. Mr. Drummond paid a fine of $10,000. delayed until April 3, 2000, to minimize change during the period surrounding the rollover to 2000. The Federal Reserve Board on January 19, 2000, announced the issuance of a consent order against PRELIMINARY FIGURES AVAILABLE ON Solomon King, an institution-affiliated party of the OPERATING INCOME OF THE FEDERAL First Western Bank, Cooper City, Florida, a state RESERVE BANKS member bank. Mr. King, without admitting to any allegations, Preliminary figures indicate that operating income of consented to the order to resolve allegations that he the Federal Reserve Banks amounted to $29,347 bil- violated the Change in Bank Control Act in conneclion during 1999. Net income before payment of tion with his acquisition of beneficial ownership of dividends, additions to surplus, and payments to the the shares of the bank. Treasury totaled $26,255 billion. About $25,400 billion of this net income was distributed to the U.S. The Federal Reserve Board on January 19, 2000, Treasury during 1999. announced the issuance of an order of prohibition Federal Reserve System income is derived prima- against Christopher J. Woods, a former assistant vice rily from interest earned on U.S. government securi- president and institution-affiliated party of the Midties that the Federal Reserve has acquired through west Bank and Trust Company, Elmwood Park, open market operations. Income from the provision Illinois. of financial services amounted to $836 million. Mr. Woods, without admitting to any allegations, Operating expenses of the twelve Reserve Banks consented to the issuance of the order due to his totaled $1,904 billion. In addition, the cost of earn- alleged participation in violations of law and unsafe Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Announcements 221 or unsound practices regarding misapplication of the Division of Reserve Bank Operations and Paybank funds and falsification of the bank's books and ment Systems (RBOPS). Mr. Martindale began workrecords. ing in the System in 1966 and has been in RBOPS as part of the System Interchange Program, on leave of absence from Federal Reserve Information Technol- CHANGE IN BOARD STAFF ogy. He received a master's degree from Johns Hop- The Federal Reserve Board announced the appoint- kins University and a bachelor's degree from the ment of Edgar A. Martindale as Assistant Director in University of Baltimore. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
223 Legal Developments ORDERS ISSUED UNDER BANK HOLDING COMPANY mately 2 percent of total deposits in depository institutions ACT in the state.3 Merchants, with total consolidated assets of $987.9 mil- Orders Issued Under Section 3 of the Bank Holding lion, is the 43rd largest depository institution in Illinois, Company Act controlling deposits of $686.3 million, representing less than 1 percent of total deposits in depository institutions in Old Kent Financial Corporation the state. Grand Rapids, Michigan After consummation of the proposal, Old Kent would become the 44th largest commercial banking organization Order Approving Merger of Bank Holding Companies, in the United States, with total consolidated assets of Merger of Banks, and Establishment of Branches $18.7 billion, representing less than 1 percent of total banking assets. Old Kent would become the fifth largest Old Kent Financial Corporation ("Old Kent"), a bank depository institution in Illinois, controlling deposits of holding company within the meaning of the Bank Holding $4.9 billion, representing approximately 2.3 percent of Company Act ("BHC Act"), has requested the Board's total deposits in depository institutions in the state. approval under section 3 of the BHC Act (12 U.S.C. § 1842) to merge with Merchants Bancorp, Inc., Interstate Analysis ("Merchants"), and thereby acquire Merchants's subsidiary bank, Merchants National Bank of Aurora ("Mer- Section 3(d) of the BHC Act allows the Board to approve chants Bank"), both in Aurora, Illinois. Old Kent Bank, an application by a bank holding company to acquire Grand Rapids, Michigan ("Old Kent Bank"), a state mem- control of a bank located in a state other than the home ber bank, has applied under section 18(c) of the Federal state of such bank holding company if certain conditions Deposit Insurance Act (12 U.S.C. § 1828(c)) (the "Bank are met.4 For purposes of the BHC Act, the home state of Merger Act") to merge with Merchants Bank, and to retain Old Kent is Michigan, and Old Kent proposes to acquire and operate branches at the locations of the main office and Merchants Bank, which is located in Illinois. All the condibranches of Merchants Bank.1 tions for an interstate acquisition enumerated in sec- Notice of the proposal, affording interested persons an tion 3(d) are met in this case.5 In light of all the facts of opportunity to submit comments, has been published record, the Board is permitted to approve the proposal (64 Federal Register 66,189 (1999)). As required by the under section 3(d) of the BHC Act. Bank Merger Act and the Board's Rules of Procedure (12C.F.R. 262.3(b)), reports on the competitive effects of Competitive Factors the merger were requested from the U.S. Attorney General and the other federal banking agencies. The time for filing Section 3 of the BHC Act and the Bank Merger Act comments has expired, and the Board has considered the prohibit the Board from approving a proposal that would proposal in light of the factors set forth in section 3 of the BHC Act and the Bank Merger Act. Old Kent, with total consolidated assets of $17.7 billion, 3. In this context, depository institutions include commercial banks, is the 47th largest commercial banking organization in the savings banks, and savings associations. United States, controlling less than 1 percent of the total 4. See 12 U.S.C. § 1842(d). A bank holding company's home state is the state in which the total deposits of all banking subsidiaries of assets of insured commercial banks in the United States.2 such company were the largest on July 1, 1966, or the date on which Old Kent operates in Michigan, Illinois, and Indiana. Old the company became a bank holding company, whichever is later. Kent is the seventh largest depository institution in Illinois, 12 U.S.C. § 1841(o)(4)(C). controlling deposits of $4.2 billion, representing approxi- 5. 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and (B). Old Kent meets the capital and managerial requirements established under applicable law. Merchants Bank has been in existence and operated for the minimum period of time required by applicable state 1. Old Kent proposes to merge a wholly owned acquisition subsid- law. On consummation, Old Kent would control less than 10 percent iary with and into Merchants, with Merchants as the surviving corpo- of the total amount of deposits of insured depository institutions in the ration. Immediately thereafter, Merchants would be liquidated and United States and less than 30 percent of total deposits held by insured Merchants Bank would be merged with and into Old Kent Bank, with depository institutions in Illinois, the state in which Old Kent and Old Kent Bank as the surviving depository institution. Merchants both operate insured depository institutions. See 205 111. 2. All asset data are as of September 30, 1999, and all deposit data Comp. Stat. 5/21.3 (West 1999). All other requirements under section are as of June 30, 1998. 3(d) of the BHC Act would be met on consummation of the proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
224 Federal Reserve Bulletin • March 2000 result in a monopoly or be in furtherance of a monopoly. Other Factors Both the BHC Act and the Bank Merger Act also prohibit the Board from approving a proposal that would substan- Both the BHC Act and the Bank Merger Act require the tially lessen competition in any relevant banking market Board to consider the financial and managerial resources unless the anticompetitive effects of the proposal in that and future prospects of the companies and banks involved banking market are clearly outweighed in the public inter- in the proposal and certain other supervisory factors. The est by the probable effect of the proposal in meeting the Board has reviewed these factors in light of all the facts of convenience and needs of the community to be served.6 record, including reports of examination, other confidential Old Kent and Merchants compete directly in the Aurora, supervisory information assessing the financial and mana- Illinois banking market.7 Old Kent is the fifth largest gerial resources of the organizations, and financial informadepository institution in the Aurora banking market, con- tion provided by Old Kent. The Board notes that Old Kent trolling deposits of $205.6 million, representing approxi- and Merchants and their subsidiary banks currently are mately 5.7 percent of total deposits in the market ("market well capitalized and are expected to remain so on consumdeposits").8 Merchants is the second largest depository mation of the proposal. Based on all the facts of record, the institution in the Aurora banking market, controlling de- Board concludes that the financial and managerial reposits of $641.2 million, representing approximately sources and the future prospects of Old Kent, Merchants, 17.7 percent of market deposits. On consummation of the and their respective subsidiary banks, are consistent with proposal, Old Kent would become the largest depository approval, as are the other supervisory factors the Board institution in the Aurora banking market, controlling must consider under section 3 of the BHC Act and the $846.7 million of deposits, representing 23.3 percent of Bank Merger Act. market deposits. The change in market concentration, as In addition, the Board is required to consider the effect measured by the Herfindahl-Hirschman Index ("HHI"), is of the proposal on the convenience and needs of the consistent with prior Board precedent and the Department communities to be served. The Board has carefully considof Justice Merger Guidelines ("DOJ Guidelines").9 ered the effect of the proposal on the convenience and The Department of Justice has reviewed the proposal needs of the communities to be served in light of all the and advised the Board that consummation of the proposal facts of record, including the records of performance of the would not likely have a significantly adverse competitive depository institutions of Old Kent under the Community effect in the Aurora banking market. Reinvestment Act (12 U.S.C. § 2901 et seq.) ("CRA"),10 Based on these and all other facts of record, the Board the lending records of Old Kent Bank and its subsidiaries, concludes that consummation of the proposal would not the policies and programs designed to ensure compliance result in any significantly adverse effects on competition or with the fair lending laws, recent data provided by Old on the concentration of banking resources in the Aurora Kent's depository institutions in regulatory reports, confibanking market or any other relevant banking market. dential supervisory information, and information provided by Old Kent. Based on all the facts of record, the Board concludes that considerations relating to the convenience 6. See 12 U.S.C. § 1842(c). and needs factor are consistent with approval of the pro- 7. The Aurora banking market is defined as the southern part of posal. Kane County; Piano, Bristol, Oswego, Fox, and Kendall Townships in Kendall County; and Sandwich Township in DeKalb County, all in Conclusion Illinois. 8. Market share data are based on calculations that include the deposits of thrift institutions, which include savings banks and savings Based on the foregoing, and in light of all the facts of associations, weighted at 50 percent. The Board previously has indi- record, the Board has determined that the applications cated that thrift institutions have become, or have the potential to should be, and hereby are, approved. The Board's approval become, significant competitors of commercial banks. See, e.g., Midis specifically conditioned on compliance by Old Kent with west Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). all the commitments made in connection with these appli- Thus, the Board regularly has included thrift deposits in the calcula- cations, and on the receipt by Old Kent of all necessary tion of market share on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). 9. Under the DOJ Guidelines (49 Federal Register 26,923 (June 29, 1984)), a market in which the post-merger HHI is more than 1000 and 10. The Interagency Questions and Answers Regarding Community less than 1800 is considered to be moderately concentrated. The Reinvestment provides that an institution's most recent CRA perfor- Department of Justice has informed the Board that a bank merger or mance evaluation is an important and often controlling factor in the acquisition generally will not be challenged (in the absence of other consideration of an institution's CRA record because it represents a factors indicating anticompetitive effects) unless the post-merger HHI detailed evaluation of the institution's overall record of performance is at least 1800 and the merger increases the HHI by more than 200 under the CRA by its appropriate federal banking supervisor. points. The Department of Justice has stated that the higher than 64 Federal Register 23,618 and 23,641 (1999). Old Kent Bank normal HHI thresholds for screening bank mergers for anticompeti- received a "satisfactory" rating at its most recent CRA performance tive effects implicitly recognize the competitive effects of limited- examination by the Federal Reserve Bank of Chicago, as of August purpose lenders and other nondepository financial institutions. On 1997. Old Kent Bank, National Association, Jonesville, Michigan, consummation of this proposal, the HHI would increase by 199 points received a "satisfactory" rating at its most recent CRA performance to 1315 and the Aurora banking market would remain moderately examination by the Office of the Comptroller of the Currency, as of concentrated, as measured by the HHI. April 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 225 approvals from state regulators. For purposes of this ac- proximately $243.9 million, controls one subsidiary bank tion, the commitments and conditions relied on by the in Oklahoma.3 Board in reaching its decision are deemed to be conditions The Board previously has determined by order that real imposed in writing by the Board in connection with its estate settlement and title abstracting activities are closely findings and decision and, as such, may be enforced in related to banking and permissible for bank holding compaproceedings under applicable law. nies under section 4(c)(8) of the BHC Act.4 Notificant has The acquisition of Merchants shall not be consummated committed that it will conduct these activities in accorbefore the fifteenth calendar day following the effective dance with the limitations set forth in Regulation Y and the date of this order, or later than three months after the Board's orders and interpretations relating to these activieffective date of this order, unless such period is extended ties. for good cause by the Board or by the Federal Reserve In order to approve the proposal, the Board also must Bank of Chicago, acting pursuant to delegated authority. determine that performance of the proposed activities is a By order of the Board of Governors, effective Jan- proper incident to banking, that is, that the performance of uary 27, 2000. the proposed activity by FNC "can reasonably be expected to produce benefits to the public .. . that outweigh possible Voting for this action: Chairman Greenspan, Vice Chairman Fergu- adverse effects, such as undue concentration of resources, son, and Governors Kelley, and Gramlich. Absent and not voting: decreased or unfair competition, conflicts of interests, or Governor Meyer. unsound banking practices."5 As part of its evaluation of these factors, the Board has ROBERT DEV. FRIERSON considered the financial and managerial resources of FNC Associate Secretary of the Board and the effect of the transaction on those resources. Management of Southern would not change as a result of this Orders Issued Under Section 4 of the Bank Holding transaction, and the acquisition would not require addi- Company Act tional managerial resources from FNC. There is no evidence in the record indicating that consummation of this First National Corp. of Ardmore, Inc. proposal is likely to result in significantly adverse effects, Ardmore, Oklahoma such as undue concentration of resources, decreased or unfair competition, conflicts of interests, or unsound bank- Order Approving Notice to Engage in Nonbanking ing practices. Activities FNC has indicated that combining the resources and operations of FNC with the real estate settlement and title First National Corp. of Ardmore, Inc. ("FNC"), a bank abstracting activities of Southern, Carter and Executive holding company within the meaning of the Bank Holding will result in enhanced real estate settlement and title Company Act ("BHC Act"), has requested the Board's abstracting services, including better recordkeeping of real approval under section 4(c)(8) of the BHC Act estate related transactions. In addition, as the Board has (12 U.S.C. § 1843(c)(8)) and section 225.23 of the Board's previously noted, there are public benefits to be derived Regulation Y (12 C.F.R. 225.23) to acquire 33.3 percent of from permitting capital markets to operate so that bank the outstanding voting shares of Southern Land Title Serholding companies can make potentially profitable investvices, Inc., Ardmore, Oklahoma ("Southern"),1 and ments in nonbanking companies and from permitting bankthereby engage in real estate settlement and title abstracting organizations to allocate their resources in the manner ing activities.2 FNC, with total consolidated assets of apthey consider to be most efficient when such investments and actions are consistent, as in this case, with the relevant considerations under the BHC Act.6 Based on the foregoing and all the other facts of record, 1. Southern owns four subsidiaries, Ardmore Abstract Company including the commitments made by FNC, the Board has ("Ardmore"), Carter County Abstract Company ("Carter"), Execu- determined that the performance of the proposed activity tive Escrow and Closing Services, Inc. ("Executive"), and Consoli- by FNC can reasonably be expected to produce benefits to dated Abstract Company, Inc. ("Consolidated"), all in Ardmore, the public that would outweigh any likely adverse effects Oklahoma. FNC proposes to acquire Southern, Carter, and Executive, which would provide abstracting and real estate settlement services to under the proper incident to banking standard of secthe public without preference for customers of FNC. FNC would also tion 4(c)(8) of the BHC Act. acquire Consolidated, which is inactive and would remain so after consummation of this proposal. The current owners of Southern would retain Ardmore, which would provide title insurance, and neither FNC nor Southern would have any ownership interest in Ardmore or provide title insurance. In addition, neither NFC nor 3. Banking data are as of September 30, 1999. Southern would provide any insurance against title defects, guarantee 4. See, 12 C.F.R. 225.28(b)(2), and The First National Company, any title, provide any certification with respect to a title, or be 81 Federal Reserve Bulletin 805 (1995). responsible for any defects in a title. 5. 12 U.S.C. § 1843(c)(8). 2. Real estate title abstracting, as proposed by Notificant, is limited 6. See, e.g., Banc One Corporation, 84 Federal Reserve Bulletin to reporting factual information concerning the interests in or owner- 553 (1998); First Union Corporation, 84 Federal Reserve Bulletin ship of selected real property. 489 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
226 Federal Reserve Bulletin • March 2000 Based on all the facts of record, including the commit- Notice of the proposal, affording interested persons an ments and representations made by FNC, and subject to the opportunity to submit comments, has been published terms and conditions set forth in this order, the Board has (64 Federal Register 56,791 (1999)). The time for filing determined that the notice should be, and hereby is, ap- comments has expired, and the Board has considered the proved. This determination is subject to all the conditions notice and all comments received in light of the factors set set forth in the Board's Regulation Y, including those in forth in section 4(c)(8) of the BHC Act. sections 225.7 and 225.25(c) (12C.F.R. 225.7 and North Fork, with total consolidated assets of $11.5 bil- 225.25(c)), the conditions in related orders governing the lion, is the 15th largest depository institution in New York, proposed activities, and the Board's authority to require controlling deposits of approximately $6.3 billion, repremodification or termination of the activity of a bank hold- senting 1.5 percent of total deposits in depository instituing company or any of its subsidiaries, as the Board finds tions in the state ("state deposits").2 JSB is the 39th largest necessary to ensure compliance with, or to prevent evasion depository institution in New York, controlling deposits of of, the provisions and purposes of the BHC Act and the $1.2 billion, representing less than 1 percent of state depos- Board's regulations and orders issued thereunder. The its. On consummation of the proposal and the Reliance Board's decision is specifically conditioned on compliance transaction, North Fork would become the 11th largest with all the commitments made in the notice, including the depository institution in New York, controlling deposits of commitments and conditions discussed in this order. The approximately $9.1 billion, representing approximately commitments and conditions relied on in reaching this 2.2 percent of state deposits. decision shall be deemed to be conditions imposed in The Board previously has determined by regulation that writing by the Board in connection with its findings and the operation of a savings association by a bank holding decision and, as such, may be enforced in proceedings company is closely related to banking for purposes of under applicable law. section 4(c)(8) of the BHC Act.3 The Board requires that The proposal shall not be consummated later than three savings associations acquired by bank holding companies months after the effective date of this order, unless such conform their direct and indirect activities to those permisperiod is extended for good cause by the Board or the sible for bank holding companies under section 4 of the Federal Reserve Bank of Kansas City, acting pursuant to BHC Act. North Fork has committed to conform all the delegated authority. activities of Jamaica Savings to those permissible under By order of the Board of Governors, effective Janu- section 4(c)(8) of the BHC Act and Regulation Y. ary 10, 2000. Competitive Considerations Voting for this action: Chairman Greenspan and Governors Kelley, Meyer, and Gramlich. Absent and not voting: Vice Chairman Fergu- In order to approve the proposal, the Board also is required son. by section 4(c)(8) of the BHC Act to determine that the acquisition of JSB by North Fork "can reasonably be ROBERT DEV. FRIERSON expected to produce benefits to the public . . . that out- Associate Secretary of the Board weigh possible adverse effects, such as undue concentration of resources, decreased or unfair competition, conflicts North Fork Bancorporation, Inc. of interest, or unsound banking practices."4 As part of its Melville, New York consideration of these factors, the Board has considered carefully the competitive effects of the proposal in light of Order Approving the Acquisition of a Savings all the facts of record.5 Association North Fork and JSB compete directly in the Metropolitan New York/New Jersey banking market.6 On consum- North Fork Bancorporation, Inc., Melville, New York ("North Fork"), a bank holding company within the meaning of the Bank Holding Company Act ("BHC Act"), has § 1828(c)) ("Bank Merger Act") and by the New York State Banking requested the Board's approval under section 4(c)(8) of the Department ("NYSBD"). In addition, North Fork has filed a separate BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.24 of notice with the Board to merge with Reliance Bancorp, Inc. ("Relithe Board's Regulation Y (12 C.F.R. 225.24) to acquire all ance") and thereby acquire Reliance Federal Savings Bank ("Reliance Savings"), both of Garden City, New York ("the Reliance the voting shares of JSB Financial, Inc. ("JSB") and transaction"). thereby acquire JSB's wholly owned subsidiary, Jamaica 2. Asset data are as of June 30, 1999, and state deposit data are as of Savings Bank FSB ("Jamaica Savings"), both of Lyn- June 30, 1998. In this context, depository institutions include commerbrook, New York.1 cial banks, savings banks, and savings associations. 3. 12 C.F.R. 225.28(b)(4). 4. 12 U.S.C. § 1843(c)(8). 5. See First Hawaiian, Inc., 79 Federal Reserve Bulletin 966 1. North Fork's wholly owned subsidiary bank, North Fork Bank, (1993). Mattituck, New York, would merge with Jamaica Savings, and North 6. The Metropolitan New York/New Jersey banking market in- Fork Bank would be the surviving institution. The merger is subject to cludes Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, approval by the Federal Deposit Insurance Corporation ("FDIC") Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, and under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. Westchester Counties in New York; Bergen, Essex, Hudson, Hunter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 227 mation of the proposal and the Reliance transaction, North under the 1 Home Mortgage Disclosure Act Fork would be the 10th largest depository institution in the (12 U.S.C. § 2801 et seq.) ("HMDA"), that North Fork Metropolitan New York/New Jersey banking market, con- Bank's record of home mortgage lending indicates disparitrolling deposits of $9.3 billion, representing approxi- ties in the bank's treatment of minorities in New York City mately 2.2 percent of market deposits.7 The Herfindahl- and in Nassau and Suffolk Counties. Hirschman Index ("HHI") would decrease by 3 points to 783, and numerous competitors would remain in the mar- A. CRA Performance Examinations ket.8 Based on these and all other facts of record, the Board concludes that consummation of the proposal would not As provided in the CRA, the Board evaluates an instituresult in any significantly adverse effects on competition or tion's record of performance in light of examinations for on the concentration of banking resources in the New York CRA performance conducted by the appropriate federal banking market or any other relevant banking market. supervisors. An institution's most recent CRA performance evaluation is a particularly important consideration Record of Performance Under the Community in the application process, because it represents a detailed Reinvestment Act on-site evaluation of the institution's overall record of performance under the CRA by its appropriate federal In acting on notices to acquire a savings association, the supervisor.10 Board reviews the records of performance of the relevant North Fork Bank received an overall rating of "satisfacdepository institutions under the Community Reinvestment tory" from its primary federal supervisor, the FDIC, at its Act (12 U.S.C. § 2901 et seq.) ("CRA").9 The Board has most recent evaluation for CRA performance, as of March reviewed the record of performance of North Fork Bank in 1997 ("1997 Examination"). As of the same date, the light of all the facts of record, including comments re- NYSBD rated as "satisfactory" North Fork Bank's perforceived from Inner City Press/Community on the Move mance in helping to meet the credit needs of its entire ('TCP"). ICP contends that the number and volume of community pursuant to New York law ("State Examinasmall business loans made by North Fork Bank in the tion").11 Jamaica Savings also received an overall rating of Bronx and in predominantly minority and low- and "satisfactory" from its primary federal supervisor, the moderate-income ("LMI") areas of New York City are Office of Thrift Supervision, at its most recent evaluation inadequate in comparison to North Fork Bank's market for CRA performance, as of August, 1996. share of deposits in these areas and in comparison to North Fork Bank's lending record in other parts of its assessment B. Lending Record of North Fork Bank area. ICP also maintains, based primarily on data filed During 1998, the Board twice reviewed North Fork's record of CRA performance in light of comments submitdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sus- ted by ICP.12 For reasons set forth in detail in those orders, sex, Union, Warren, and a portion of Mercer Counties in New Jersey; the Board concluded that the CRA performance record of Pike County in Pennsylvania; and portions of Fairfield and Litchfield Counties in Connecticut. North Fork was consistent with approval under the BHC 7. Market share data are as of June 30, 1998, and are based on Act.13 calculations in which the deposits of thrift institutions, other than The 1997 Examination commended North Fork Bank for Jamaica Savings and Reliance Savings, are included at 50 percent. its record of lending in LMI areas and to LMI individuals, The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of based on HMDA data for 1995 and 1996. In 1997 and commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 1998, North Fork Bank continued to make a higher per- 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Because the Board has analyzed the competitive factors in this case as if North Fork Bank, Jamaica Savings, and Reliance Savings were a combined entity, the deposits of Jamaica Savings and 10. Interagency Questions and Answers Regarding Community Reliance Savings are included at 100 percent in the calculation of pro Reinvestment, 64 Federal Register 23,618 and 23,641 (1999) ("Interforma market share. See Norwest Corporation, 78 Federal Reserve agency Questions and Answers"). Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve Bulletin 11.N.Y. Banking Law § 28-b. 669 (1990). 12. See North Fork Bancorporation, Inc., 84 Federal Reserve 8. Under the revised Department of Justice Merger Guidelines, Bulletin 290 (1998) {"New York Bancorp Order")-, North Fork Ban- 49 Federal Register 26,823 (June 29, 1984), a market in which the corporation, Inc., 84 Federal Reserve Bulletin 477 (1998) (acquisition post- merger HHI is less than 1000 is considered to be unconcen- of up to 9.9 percent of the voting shares of Long Island Bancorp, Inc.). trated. The Department of Justice has informed the Board that, as a 13. In the New York Bancorp Order, the Board stated that it general matter, a bank merger or acquisition will not be challenged in expected North Fork to address the lending areas criticized by the the absence of other factors indicating anticompetitive effects, unless NYSBD in the State Examination, and that the Board would consider the post-merger HHI is at least 1800 and the merger or acquisition North Fork's progress in this regard when considering future applicaincreases the HHI by 200 points. The Department of Justice has stated tions by North Fork. The Board has reviewed information received that the higher than average HHI thresholds for screening bank from other supervisory agencies on North Fork Bank's efforts in these mergers for anticompetitive effects implicitly recognize the competi- areas, including North Fork Bank's progress in fulfilling its committive effects of limited-purpose lenders and other nondepository finan- ments to the NYSBD. Based on all the facts of record, the Board cial entities. concludes that North Fork Bank's progress in the lending areas noted 9. See, e.g., Banc One Corporation, 83 Federal Reserve Bulletin in the New York Bancorp Order is consistent with approval of this 602 (1997). notice. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
228 Federal Reserve Bulletin • March 2000 centage of HMDA-related loans14 in LMI census tracts ICP alleges that HMDA data from North Fork Bank than did lenders in the aggregate.15 In 1998, North Fork indicate that the bank discriminates against minorities in Bank made 30.9 percent of its HMDA-related loans in LMI violation of fair lending laws. North Fork denies these census tracts, compared with 14.1 percent by lenders in the allegations and has provided HMDA data and other inforaggregate.16 North Fork Bank also increased the percent- mation on its lending programs designed to serve minority age of its HMDA-related loans that it made to LMI individ- and LMI communities. In 1998 in North Fork Bank's uals from 17 percent in 1995 to 22 percent in each of 1997 assessment area in the New York City Metropolitan Statisand 1998.17 tical Area, for example, North Fork Bank's denial disparity Mortgage loans on multifamily rental dwellings ("multi- ratio for African Americans was 1.32:1, compared with family loans") constituted a primary credit product offered 1.69:1 for lenders in the aggregate, and North Fork Bank's by North Fork Bank to address housing-related credit needs denial disparity ratio for Hispanics was 0.9:1, compared in its assessment area. The State Examination of North with 1.52:1 for lenders in the aggregate.21 In the Nassau- Fork Bank found that multifamily loans represented Suffolk Metropolitan Statistical Area, however, North Fork 71 percent by dollar volume of all HMDA-related loans Bank's denial disparity ratios in 1998 were 2.27:1 for made by the bank in 1996. In 1998, North Fork Bank African Americans and 2.92:1 for Hispanics, compared originated $293 million in multifamily loans, which ac- with denial disparity ratios of 1.82:1 and 1.48:1, respeccounted for 49.3 percent by dollar volume of all North tively, for lenders in the aggregate. For its assessment area Fork Bank's HMDA-related loans for the year.18 Also in overall, North Fork Bank's 1998 denial disparity ratios were 1.70:1 for African Americans and 1.81:1 for Hispan- 1998, North Fork Bank originated 48 percent of its multiics, compared with 1.74:1 and 1.52:1 for lenders in the family loans in LMI census tracts, and 43 percent of its aggregate.22 multifamily loans in minority census tracts. North Fork Bank engages in a significant amount of The Board is concerned when an institution's record small business lending. In 1998, North Fork Bank made indicates any such disparities and believes that all banks 2,075 loans to small businesses.19 Of those loans, 23 per- are obligated to ensure that their lending practices are cent were made in LMI census tracts in North Fork Bank's based on criteria that assure not only safe and sound assessment area, compared with 17 percent for lenders in banking, but also equal access to credit by creditworthy the aggregate. In 1998, North Fork Bank also increased its applicants regardless of race. The Board recognizes, howloans to small businesses in minority census tracts in its ever, that HMDA data alone provide an incomplete meaassessment area, to 136, from 104 in 1997.20 sure of an institution's lending in its community and have limitations that make the data an inadequate basis, absent other information, for concluding that an institution has 14. HMDA-related loans include loans reported under HMDA as engaged in illegal discrimination in making lending deciwell as modification, extension, and consolidation agreements sions.23 ("MECA loans") for HMDA-reported loans. MECA loans are not Because of the limitations of HMDA data, the Board has reported under HMDA, but may be considered in evaluating an carefully reviewed other information concerning North institution's CRA performance. See Interagency Questions and Answers, 64 Federal Register at 23,634. Fork Bank's record of lending to minority and LMI indi- 15. The aggregate represents the cumulative lending for all institu- viduals. In particular, the Board has carefully reviewed tions that have reported HMDA data in a given market. 16. LMI census tracts comprise approximately 28 percent of the total number of census tracts in North Fork Bank's current assessment area. housing credit and provides other types of credit, including consumer 17. Lenders in the aggregate in North Fork Bank's assessment area loans and single family housing loans, throughout North Fork Bank's made 16.2 percent of their HMDA-related loans to LMI individuals in assessment area. 1998. 21. North Fork Bank's assessment area in the New York City 18. In 1998, North Fork Bank originated $76 million of multifamily Metropolitan Statistical Area is composed of the entire metropolitan loans in the Bronx, accounting for 26 percent of all multifamily loans statistical area except for Putnam County, New York. made by North Fork Bank in its assessment area. 22. The record also reflects that North Fork Bank received a 19. For purposes of this order, a loan to a small business means a significantly smaller percentage of HMDA-related loan applications loan made to a business with gross annual revenues of $1 million of from minority and LMI individuals than did lenders in the aggregate, less. and that the bank made a correspondingly smaller percentage of its 20. ICP contends that North Fork Bank gathers deposits in less HMDA-related loans to minority and LMI borrowers. For example, in affluent and predominantly minority areas, such as the Bronx, and 1998, North Fork Bank made 3.3 percent of its HMDA-related loans concentrates its loans and investments in more affluent and nonminor- to African Americans and 2.6 percent of such loans to Hispanics, ity areas. In ICP's view, North Fork Bank should be required to compared with rates of 10 percent and 5.8 percent, respectively, for increase its small business lending in the Bronx and similar areas to lenders in the aggregate. As discussed in this order, however, in 1998 reflect more closely its level of deposits in those areas. The Board has North Fork Bank made approximately half of its HMDA-related loans reviewed North Fork Bank's record of lending to small businesses by dollar volume as multifamily loans rather than as 1- to 4-family throughout its assessment area, including minority and LMI census home mortgage loans, and 43 percent of its multifamily loans were tracts in all portions of its assessment area. While North Fork Bank's made in minority census tracts. lending to small businesses in specific segments of its assessment area 23. The data, for example, do not provide a basis for an independent may not closely correspond to the bank's market share of deposits in assessment of whether an applicant who was denied credit was, in those segments at a particular point in time, small business lending is fact, creditworthy. Information about credit history problems and not the only use made of deposits. As explained above, the Board also excessive debt levels relative to income (reasons most frequently cited has considered that North Fork Bank provides significant multifamily for a credit denial) are not available from HMDA data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 229 examination reports, which provide on-site evaluations of and has indicated that it has not made a final determination compliance by North Fork Bank with the fair lending laws. on the consolidation of any branch. 25 In the 1997 Examination, FDIC examiners found no evi- The Board has carefully considered all the facts of dence of prohibited discriminatory practices or of any record concerning branch closings, including the prelimipractices intended to discourage applications for the types nary branch consolidation information submitted by North of credit set forth in the bank's CRA statement.24 NYSBD Fork and North Fork's record in opening and closing examiners also found no evidence of any prohibited dis- branches. The Board notes that only one pair of branches criminatory or illegal credit practices in their 1997 evalua- under consideration for consolidation is in an LMI area. tion of North Fork Bank. In addition, FDIC examiners Furthermore, examiners at the most recent CRA examinaconcluded that North Fork Bank's management had dem- tion of North Fork Bank reviewed its record of opening onstrated a commitment to making loans in LMI census and closing branches and found that none of the branches tracts and to LMI individuals and favorably noted that the closed from 1995 to 1997 were in an LMI census tract. bank had a formal "second review" process for all residen- Examiners also found that in all instances of branch clostial mortgage loan applications before issuing an adverse ings, North Fork Bank had an existing branch near the action letter. closed branch. The Board notes that any branches closed The Board also has considered the quarterly reports would be closed pursuant to North Fork Bank's branch concerning the lending activity of North Fork Bank during closing policy, which requires consideration of the commu- 1998 and the first quarter of 1999 that were submitted by nity's needs and the impact of the closing on the neighbor- North Fork to the Federal Reserve Bank of New York as hood. The FDIC has reviewed North Fork Bank's branch required in the New York Bancorp Order, and confidential closing policy and found it satisfactory. information provided by the FDIC and the NYSBD con- The Board also has considered that federal banking law cerning North Fork Bank's lending activities. These re- provides a specific mechanism for addressing branch closports and information also indicate in general that North ings. Federal law requires an insured depository institution Fork Bank continues to address the disparities in its lend- to provide notice to the public and to the appropriate ing record. federal supervisory agency before closing a branch.26 The North Fork Bank also is involved in several initiatives to law does not authorize federal regulators to prevent the assist in meeting the credit needs of LMI communities and closing of any branch. Any branch closings resulting from individuals. North Fork Bank continues to offer mortgage the proposal will be considered by the appropriate federal loans through State of New York Mortgage Agency pro- supervisor at the next CRA examination of the relevant grams, originating a total of 48 such loans in 1998 and the subsidiary depository institution. first three quarters of 1999. North Fork Bank also originated 171 loans during the first three quarters of 1999 D. Conclusion on CRA Performance Records through its proprietary Affordable Housing Programs, which provide below market interest rate loans to LMI The Board has carefully considered all the facts of record, borrowers, and reduced private mortgage insurance re- including ICP's comments, in reviewing the CRA perforquirements. North Fork Bank also has invested $4.2 mil- mance records of the institutions involved. Based on a lion in the Community Preservation Corporation, a private, review of the entire record, and for the reasons discussed nonprofit lender focusing on financing LMI housing, and above, the Board concludes that the CRA performance has outstanding commitments of $800,000 to Neighbor- records of the institutions involved, including North Fork hood Housing Services of New York City, which assists in Bank, are consistent with approval of the proposal. creating and preserving affordable housing in New York City neighborhoods. Other Considerations C. Branch Closings In connection with its review of the public interest factors under section 4 of the BHC Act, the Board also has ICP also expresses concern that consummation of the proposal would result in branch closings. North Fork has stated that the proposal is likely to result in some consoli- 25. ICP asserts that North Fork should make public a list of dation involving pairs of newly acquired and existing North branches under consideration for consolidation or closure. The release Fork Bank branches. North Fork has submitted preliminary of preliminary branch closing data may cause competitive harm to and confidential information identifying these branches North Fork, and such data is exempt from public disclosure under the Freedom of Information Act (5 U.S.C. § 552(b)(4)) and the Board's Rules Regarding Availability of Information (12 C.F.R. 261.14(a)(4)). 26. Section 42 of the Federal Deposit Insurance Act (12 U.S.C. § 1831r-l), as implemented by the Joint Policy Statement Regarding Branch Closings (64 Federal Register 34,844 (1999)), requires that a bank provide the public with at least 30 days notice and the appropri- 24. As noted in the New York Bancorp Order, FDIC examiners ate federal supervisory agency with at least 90 days notice before the identified certain technical violations of the fair lending laws during date of the proposed branch closing. The bank also is required to the 1997 Examination, but stated that these matters were addressed by provide reasons and other supporting data for the closure, consistent the bank's management during that examination. with the institution's written policy for branch closings. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
230 Federal Reserve Bulletin • March 2000 carefully reviewed the financial and managerial resources Voting for this action: Chairman Greenspan and Governors Kelley, of North Fork and JSB and their respective subsidiaries Meyer, and Gramlich. Absent and not voting: Vice Chairman Ferguson. and the effect the transaction would have on such resources in light of all the facts of record.27 The Board has reviewed, ROBERT DEV. FRIERSON among other things, confidential reports of examination Associate Secretary of the Board and other supervisory information received from the primary federal supervisors of the organizations. Based on all North Fork Bancorporation, Inc. the facts of record, the Board concludes that the financial Melville, New York and managerial resources of the organizations involved in the proposal are consistent with approval. Order Approving the Acquisition of a Savings The record indicates that consummation of the proposal Association would result in benefits to consumers and businesses. The proposal would enable North Fork to provide Jamaica North Fork Bancorporation, Inc., Melville, New York Savings' customers with access to a broad array of prod- ("North Fork"), a bank holding company within the meanucts and services, including commercial bank products, ing of the Bank Holding Company Act ("BHC Act"), has throughout an expanded service area. Additionally, there requested the Board's approval under section 4(c)(8) of the are public benefits to be derived from permitting capital BHC Act (12 U.S.C. § 1843(c)(8)) and section 225.24 of markets to operate so that bank holding companies may the Board's Regulation Y (12 C.F.R. 225.24) to acquire all make potentially profitable investments in nonbanking the voting shares of Reliance Bancorp, Inc. ("Reliance") companies and from permitting banking organizations to and thereby acquire Reliance's wholly owned subsidiary, allocate their resources in the manner they believe is most Reliance Federal Savings Bank ("Reliance Savings"), both efficient when, as in this case, those investments are consisof Garden City, New York.1 tent with the relevant considerations under the BHC Act. Notice of the proposal, affording interested persons an Based on all the facts of record, the Board has determined opportunity to submit comments, has been published that consummation of this proposal can reasonably be (64 Federal Register 56,791 (1999)). The time for filing expected to produce public benefits that would outweigh comments has expired, and the Board has considered the any likely adverse effects under the proper incident to notice and all comments received in light of the factors set banking standard of section 4(c)(8) of the BHC Act. forth in section 4(c)(8) of the BHC Act. North Fork, with total consolidated assets of $11.5 bil- Conclusion lion, is the 15th largest depository institution in New York, controlling deposits of approximately $6.3 billion, repre- Based on the foregoing and all the facts of record, the senting 1.5 percent of total deposits in depository institu- Board has determined that the notice should be, and hereby tions in the state ("state deposits").2 Reliance is the 32nd is, approved. The Board's approval of the proposal is largest depository institution in New York, controlling specifically conditioned on compliance by North Fork with deposits of $1.6 billion, representing less than 1 percent of the commitments made in connection with this notice. The state deposits. On consummation of the proposal and the Board's determination also is subject to all the conditions JSB transaction, North Fork would become the 11th largest in Regulation Y, including those in sections 225.7 and depository institution in New York, controlling deposits of 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the approximately $9.1 billion, representing approximately Board's authority to require such modification or termina- 2.2 percent of state deposits. tion of the activities of a holding company or any of its The Board previously has determined by regulation that subsidiaries as the Board finds necessary to ensure complithe operation of a savings association by a bank holding ance with, or to prevent evasion of, the provisions and company is closely related to banking for purposes of purposes of the BHC Act and the Board's regulations and section 4(c)(8) of the BHC Act.3 The Board requires that orders issued thereunder. The commitments and conditions savings associations acquired by bank holding companies relied on by the Board in reaching this decision shall be deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, 1. North Fork's wholly owned subsidiary bank, North Fork Bank, may be enforced in proceedings under applicable law. Mattituck, New York, would merge with Reliance Savings, and North This transaction shall not be consummated later than Fork Bank would be the surviving institution. The merger is subject to three months after the effective date of this order, unless approval by the Federal Deposit Insurance Corporation ("FDIC") under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. such period is extended for good cause by the Board or the § 1828(c)) ("Bank Merger Act") and by the New York State Banking Federal Reserve Bank of New York, acting pursuant to Department ("NYSBD"). In addition, North Fork has filed a separate delegated authority. notice with the Board to merge with JSB Financial, Inc. ("JSB") and By order of the Board of Governors, effective Janu- thereby acquire Jamaica Savings FSB ("Jamaica Savings"), both of Lynbrook, New York ("the JSB transaction"). ary 10, 2000. 2. Asset data are as of June 30, 1999, and state deposit data are as of June 30, 1998. In this context, depository institutions include commercial banks, savings banks, and savings associations. 27. See 12 C.F.R. 225.26. 3. 12 C.F.R. 225.28(b)(4). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 231 conform their direct and indirect activities to those permis- tion or on the concentration of banking resources in the sible for bank holding companies under section 4 of the New York banking market or any other relevant banking BHC Act. North Fork has committed to conform all the market. activities of Jamaica Savings to those permissible under In acting on notices to acquire a savings association, the section 4(c)(8) of the BHC Act and Regulation Y. Board also reviews the records of performance of the In order to approve the proposal, the Board also is relevant depository institutions under the Community Reinrequired by section 4(c)(8) of the BHC Act to determine vestment Act (12 U.S.C. § 2901 et seq.) ("CRA").9 In its that that the acquisition of Reliance by North Fork "can order approving the notice filed by North Fork in connecreasonably be expected to produce benefits to the pub- tion with the JSB transaction ("JSB Order"), the Board lic .. . that outweigh possible adverse effects, such as un- reviewed the record of CRA performance of North Fork due concentration of resources, decreased or unfair compe- Bank in light of all the facts of record, including comments tition, conflicts of interest, or unsound banking practices."4 received from Inner City Press/Community on the Move As part of its consideration of these factors, the Board has ("ICP"). The comments received from ICP on this proconsidered carefully the competitive effects of the proposal posal are identical to the comments filed with the Board in in light of all the facts of record.5 connection with the JSB transaction. Accordingly, for rea- North Fork and Reliance compete directly in the Metro- sons set forth in detail in the JSB Order, and after considerpolitan New York/New Jersey banking market.6 On con- ing the CRA record of Reliance Savings, the Board consummation of the proposal and the JSB transaction, North cludes that the CRA performance records of North Fork Fork would be the 10th largest depository institution in the Bank and Reliance Savings are consistent with approval of Metropolitan New York/New Jersey banking market, con- the proposal.10 trolling deposits of $9.3 billion, representing approxi- In connection with its review of the public interest mately 2.2 percent of market deposits.7 The Herfindahl- factors under section 4 of the BHC Act, the Board also has Hirschman Index ("HHI") would decrease by 3 points to carefully reviewed the financial and managerial resources 783, and numerous competitors would remain in the mar- of North Fork and Reliance and their respective subsidiarket.8 Based on these and all other facts of record, the Board ies and the effect the transaction would have on such concludes that the consummation of the proposal would resources in light of all the facts of record.11 The Board has not result in any significantly adverse effects on competi- reviewed, among other things, confidential reports of examination and other supervisory information received from the primary federal supervisors of the organizations. Based 4. 12 U.S.C. § 1843(c)(8). on all the facts of record, the Board concludes that the 5. See First Hawaiian, Inc., 79 Federal Reserve Bulletin 966 financial and managerial resources of the organizations (1993). 6. The Metropolitan New York/New Jersey banking market in- involved in the proposal are consistent with approval. cludes Bronx, Dutchess, Kings, Nassau, New York, Orange, Putnam, The record indicates that consummation of the proposal Queens, Richmond, Rockland, Suffolk, Sullivan, Ulster, and would result in benefits to consumers and businesses. The Westchester Counties in New York; Bergen, Essex, Hudson, Hunterproposal would enable North Fork to provide Reliance don, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a portion of Mercer Counties in New Jersey; Savings' customers with access to a broad array of prod- Pike County in Pennsylvania; and portions of Fairfield and Litchfield ucts and services, including commercial bank products, Counties in Connecticut. throughout an expanded service area. Additionally, there 7. Market share data are as of June 30, 1998, and are based on are public benefits to be derived from permitting capital calculations in which the deposits of thrift institutions, other than markets to operate so that bank holding companies may Jamaica Savings and Reliance Savings, are included at 50 percent. The Board previously has indicated that thrift institutions have be- make potentially profitable investments in nonbanking come, or have the potential to become, significant competitors of companies and from permitting banking organizations to commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin allocate their resources in the manner they believe is most 788 (1990); National City Corporation, 70 Federal Reserve Bulletin efficient when, as in this case, those investments are consis- 743 (1984). Because the Board has analyzed the competitive factors in tent with the relevant considerations under the BHC Act. this case as if North Fork Bank, Jamaica Savings, and Reliance Savings were a combined entity, the deposits of Jamaica Savings and Based on all the facts of record, the Board has determined Reliance Savings are included at 100 percent in the calculation of pro that consummation of this proposal can reasonably be forma market share. See Norwest Corporation, 78 Federal Reserve expected to produce public benefits that would outweigh Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve Bulletin any likely adverse effects under the proper incident to 669 (1990). banking standard of section 4(c)(8) of the BHC Act. 8. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post- merger HHI is less than 1000 is considered to be unconcentrated. The Department of Justice has informed the Board that, as a general matter, a bank merger or acquisition will not be challenged in the absence of other factors indicating anticompetitive effects, unless 9. See, e.g., Banc One Corporation, 83 Federal Reserve Bulletin the post-merger HHI is at least 1800 and the merger or acquisition 602 (1997). increases the HHI by 200 points. The Department of Justice has stated 10. The Board also notes that Reliance Savings received an overall that the higher than average HHI thresholds for screening bank rating of "satisfactory" from its primary federal supervisor, the Office mergers for anticompetitive effects implicitly recognize the competi- of Thrift Supervision, at its most recent evaluation for CRA perfortive effects of limited-purpose lenders and other nondepository finan- mance, as of November, 1998. cial entities. 11. See 12 C.F.R. 225.26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
232 Federal Reserve Bulletin • March 2000 Based on the foregoing and all the facts of record, the also applied under section 9 of the Federal Reserve Act Board has determined that the notice should be, and hereby (12 U.S.C. § 321) to retain and operate branches at the is, approved. The Board's approval of the proposal is locations of the main offices and branches of Triangle Bank specifically conditioned on compliance by North Fork with and Mecklenburg. the commitments made in connection with this notice. The In addition, CBI has requested the Board's approval Board's determination also is subject to all the conditions under section 4(c)(8) of the BHC Act (12 U.S.C. in Regulation Y, including those in sections 225.7 and § 1843(c)(8)) to acquire Triangle's wholly owned non- 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the banking subsidiary, Coastal Leasing, L.L.C., Greenville, Board's authority to require such modification or termina- North Carolina ("Coastal Leasing"), and thereby engage tion of the activities of a holding company or any of its in leasing activities in accordance with section subsidiaries as the Board finds necessary to ensure compli- 225.28(b)(3) of Regulation Y. ance with, or to prevent evasion of, the provisions and Notice of the applications, affording interested persons purposes of the BHC Act and the Board's regulations and an opportunity to submit comments, has been published orders issued thereunder. The commitments and conditions (64 Federal Register 63,814 (1999)). As required by the relied on by the Board in reaching this decision shall be Bank Merger Act and the Board's Rules of Procedure deemed to be conditions imposed in writing by the Board (12 C.F.R. 262.3(b)), reports on the competitive effects of in connection with its findings and decision and, as such, the merger were requested from the U.S. Attorney General may be enforced in proceedings under applicable law. and the other federal banking agencies. The time for filing This transaction shall not be consummated later than comments has expired, and the Board has considered three months after the effective date of this order, unless the applications and all the facts of record in light of the such period is extended for good cause by the Board or the factors set forth in sections 3 and 4 of the BHC Act, the Federal Reserve Bank of New York, acting pursuant to Bank Merger Act, and section 9 of the Federal Reserve delegated authority. Act. By order of the Board of Governors, effective Janu- CBI, with consolidated assets of approximately ary 10, 2000. $8.8 billion, is the 64th largest commercial banking organization in the United States.1 CBI is the sixth largest com- Voting for this action: Chairman Greenspan and Governors Kelley, mercial banking organization in North Carolina, control- Meyer, and Gramlich. Absent and not voting: Vice Chairman Fergu- ling deposits of $5.5 billion, representing 5.5 percent of the son. total deposits in commercial banking organizations in North Carolina. Triangle, with consolidated assets of ap- ROBERT DEV. FRIERSON proximately $2.3 billion, is the 144th largest commercial Associate Secretary of the Board banking organization in the United States. Triangle is the eighth largest commercial banking organization in North Orders Issued Under Sections 3 and 4 of the Bank Carolina, controlling deposits of $1.8 billion, representing Holding Company Act 1.7 percent of the total deposits in commercial banking organizations in North Carolina. Centura Banks, Inc. After consummation of the proposal, CBI would become Rocky Mount, North Carolina the 58th largest commercial banking organization in the United States, with consolidated assets of approximately Centura Bank $11 billion and would remain the sixth largest commercial Rocky Mount, North Carolina banking organization in North Carolina, controlling deposits of $7 billion, representing 6.9 percent of the total Order Approving the Acquisition of a Bank Holding deposits in commercial banking organizations in North Company, Merger of Banks, and Establishment of Carolina. Branches Competitive Considerations Centura Banks, Inc. ("CBI"), a bank holding company within the meaning of the Bank Holding Company Act Section 3 of the BHC Act prohibits the Board from approv- ("BHC Act"), has requested the Board's approval under ing a proposal that would result in a monopoly or be in section 3 of the BHC Act (12 U.S.C. § 1842) to merge with furtherance of an attempt to monopolize the business of Triangle Bancorp, Inc., Raleigh, North Carolina ("Trian- banking. The BHC Act also prohibits the Board from gle"), and thereby acquire Triangle's wholly owned sub- approving a proposal that would substantially lessen comsidiary banks, Triangle Bank, Raleigh, and Bank of Meck- petition in any relevant banking market unless the anticomlenburg ("Mecklenburg"), Charlotte, both in North petitive effects of the proposal in that banking market are Carolina. CBI's lead bank, Centura Bank, a state member clearly outweighed in the public interest by the probable bank, has applied under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) (the "Bank Merger Act") to merge with Triangle Bank and Mecklen- 1. Asset data are as of September 30, 1999, and deposit data are as burg, with Centura Bank as the survivor. Centura Bank has of June 30, 1998. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 233 effect of the proposal in meeting the convenience and (Columbus County, Granville County, Roanoke Rapids, needs of the community to be served.2 Warren County, and Washington County), CBI has com- CBI and Triangle compete directly in eighteen banking mitted to divest a total of eight branches, controlling markets.3 The Board has carefully reviewed the competi- $129.5 million in deposits.7 After accounting for the protive effects of the proposal in each of these banking mar- posed divestitures, consummation of the proposal would be kets in light of all the facts of record, including the number consistent with Board precedents and the DOJ Guidelines of competitors that would remain in the market, the share in these five markets.8 of total deposits in depository institutions4 in the market Taking into account market size, the number of competi- ("market deposits") controlled by each competitor in the tors in each market and the share of total deposits in market, the concentration level of market deposits in the depository institutions in each market controlled by each market and the increase in this level as measured by the competitor, consummation of the proposal would not likely Herfindahl-Hirschman Index ("HHI") under the Depart- result in a significantly adverse effect on competition in ment of Justice Merger Guidelines ("DOJ Guidelines"),5 any of the five markets. and other characteristics of the market. Rocky Mount and Duplin County Markets. Consumma- Banking Markets without Divestitures. Consummation tion of the proposal in the Rocky Mount and Duplin of the proposal without divestitures would be consistent County markets would exceed the DOJ Guidelines. In both with Board precedent and the DOJ Guidelines in eleven markets, the Board has considered whether other factors banking markets: Charlotte-Rock Hill, Durham-Chapel either mitigate the competitive effects of the proposal in the Hill, Fayetteville, Goldsboro, Greenville, New Bern, Ra- markets or indicate that the proposal would have a signifileigh, Richmond County, Robeson County, Wilmington, cantly adverse effect on competition.9 In the Rocky Mount and Sanford.6 In these markets, the Board has determined, market, CBI has committed to divest ten Triangle Bank in light of the number of competitors that would remain in branches that control a total of $188.1 million in deposits each market, the characteristics of each market, the pro- to two in-market competitors. With these divestitures, the jected increase in the concentration of total deposits in pro forma HHI increase in the banking market would depository institutions in each market, and the resulting exceed DOJ Guidelines by a moderate amount. market share, that consummation of the proposal would not Centura Bank is the largest depository institution in the likely result in a significantly adverse effect on competi- Rocky Mount market, controlling deposits of $733 million, tion. representing approximately 34.4 percent of market deposits. Triangle Bank is the fourth largest depository institu- Banking Markets with Proposed Divestitures. In the tion in the market, controlling deposits of $284.9 million, seven remaining banking markets in which CBI and Trian- representing approximately 13.4 percent of market deposgle directly compete, the resulting HHI would exceed the its. On consummation of the proposal, and after accounting DOJ Guidelines. In order to mitigate the potential anticom- for the proposed divestitures, Centura Bank would remain petitive effects of the proposal in five of these markets the largest depository institution in the market, controlling deposits of $829.8 million, representing approximately 39 percent of market deposits. The HHI would increase 2. See 12 U.S.C. § 1842(c). 277 points to 2323. 3. These banking markets are described in Appendix A. A number of factors indicate that the competitive effects 4. In this context, depository institutions include commercial banks, of the proposal are not likely to be significantly adverse in savings banks, and savings associations. Market share data are based on calculations that include the deposits of thrift institutions at the Rocky Mount market. After consummation of the pro- 50 percent. The Board previously has indicated that thrift institutions posal and the divestitures, ten depository institutions would have become, or have the potential to become, significant competitors operate in the market. Two depository institutions other of commercial banks. See, e.g., Midwest Financial Group 75 Federal than Centura Bank each would control more than 10 per- Reserve Bulletin 386 (1989); National City Corporation, 70 Federal cent of market deposits and another three institutions each Reserve Bulletin 743 (1983). Thus, the Board has regularly 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). 7. The competitive effects of the proposal in the Granville County, 5. Under the DOJ Guidelines, 49 Federal Register 26,923 (1984), a Washington County, Roanoke Rapids, Columbus County, and Warren market is considered moderately concentrated when the post-merger County markets are summarized in Appendix B. HHI is between 1000 and 1800, and is considered highly concentrated 8. Centura has committed that, if it is unsuccessful in completing when the post-merger HHI is more than 1800. The Department of the divestitures within the 180-day period, it will transfer the unsold Justice has informed the Board that a bank merger or acquisition branch(es) to an independent trustee that is acceptable to the Board generally will not be challenged (in the absence of other factors and will instruct the trustee to sell the branch(es) promptly to an indicating anticompetitive effects) unless the post-merger HHI is at alternative purchaser, or alternative purchasers, acceptable to the least 1800 and the merger increases the HHI by more than 200 points. Board. See BankAmerica Corporation, 78 Federal Reserve Bulletin The Department of Justice has stated that the higher than normal HHI 338 (1992); United New Mexico Financial Corporation, 77 Federal thresholds for screening bank mergers for anitcompetitive effects Reserve Bulletin 484 (1991). implicitly recognize the competitive effects of limited-purpose lenders 9. The number and strength of factors necessary to mitigate the and other nondepository financial institutions. competitive effects of a proposal depend on the level of concentration 6. The effects of the proposal on the concentration of banking and magnitude of the increase in market concentration. See resources in these markets are described in Appendix B. NationsBank Corporation, 84 Federal Reserve Bulletin 129 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
234 Federal Reserve Bulletin • March 2000 would control more than 5 percent of market deposits. In and certain other supervisory factors. The Board has readdition, the Rocky Mount banking market appears to be viewed these factors in light of the record, including superattractive for entry. In December 1998, a de novo savings visory reports of examination assessing the financial and bank began operations in the banking market, and another managerial resources of the organizations and financial commercial savings bank has received a charter and plans information provided by CBI. Based on all the facts of to open in February 2000. record, the Board concludes that the financial and manage- CBI does not propose any divestitures in the Duplin rial resources and the future prospects of CBI, Triangle, County market, and the post-consummation increase in the and their respective subsidiary banks are consistent with HHI would exceed the DOJ Guidelines by a small margin. approval, as are the other supervisory factors the Board Centura Bank is the second largest depository institution must consider. In addition, considerations related to the in the Duplin County market, controlling deposits of convenience and needs of the communities to be served,10 $46.7 million, representing approximately 15.8 percent of including the records of performance of the institutions market deposits. Triangle Bank is the sixth largest deposi- involved under the Community Reinvestment Act tory institution in the market, controlling deposits of (12 U.S.C. § 2901 et seq.), are consistent with approval of $19 million, representing approximately 6.5 percent of the proposal.11 market deposits. After consummation of the proposal, Centura Bank would become the second largest depository Nonbanking Activities institution in the market, controlling deposits of $65.7 million, representing 22.3 percent of market deposits. The CBI also has filed a notice under section 4(c)(8) of the HHI would increase 204 points to 2910, and the market BHC Act to acquire Triangle's wholly owned nonbanking would remain highly concentrated. subsidiary, Coastal Leasing, and thereby engage in leasing Although consummation of this proposal would elimi- activities. The Board has determined by regulation that nate some existing competition, certain factors indicate leasing is closely related to banking for the purposes of the that the competitive effects of the proposal are not likely to BHC Act.12 CBI has committed to conduct this nonbanking be significantly adverse. After consummation of the pro- activity in accordance with the limitations set forth in posal, five depository institutions would remain in the Regulation Y and the Board's orders and interpretations Duplin County market, including a depository institution governing leasing activities. other than Centura Bank that would control 45.1 percent of In order to approve a notice under section 4(c)(8) of the market deposits. Two other depository institutions in the BHC Act, the Board also must determine that the proposed market would each control more than 10 percent of market activities are a proper incident to banking, that is, that the deposits, and one would have a market share of more than proposal "can reasonably be expected to produce benefits 7 percent. to the public, such as greater convenience, increased com- The Department of Justice has reviewed the proposal, petition, or gains in efficiency, that outweigh possible adincluding its effects on the Rocky Mount and Duplin verse effects, such as undue concentration of resources, County banking markets, and advised the Board that, in decreased or unfair competition, conflicts of interests, or light of the proposed divestitures, consummation of the unsound banking practices."13 proposal likely would not have a significantly adverse As part of its evaluation of these factors, the Board effect on competition in any relevant banking market. The considers the financial and managerial resources of the Office of the Comptroller of the Currency and the Federal notificant and its subsidiaries, including the companies to Deposit Insurance Corporation have been afforded an op- be acquired, and the effect of the proposed transaction on portunity to comment and have not objected to consummation of the proposal. 10. The Board received comments from the Southern Rural Devel- After carefully reviewing all the facts of record, includopment Initiative ("SRDI") and the Community Reinvestment Assoing CBI's divestiture commitments and other the mitigatciation of North Carolina ("CRANC"), both in Raleigh, North Caroing factors in the Rocky Mount and Duplin County bank- lina. CRANC commented favorably on the records of CBI and ing markets, the Board concludes that consummation of the Centura Bank in meeting the credit needs of communities in North proposal would not result in any significantly adverse Carolina, and commended CBI's interest in maintaining a presence in rural North Carolina banking markets. Both commenters stated that effects on competition or on the concentration of banking they were not protesting the proposal; nevertheless, they expressed resources in the banking markets in which CBI and Trian- concern about CBI's minority equity interest in a subprime lender. gle directly compete or in any other relevant banking SRDI and CRANC noted, however, that CBI and the subprime lender market. appeared committed to conducting their operations in accordance with applicable law. CRANC also encouraged Centura Bank to improve its lending record to African Americans and in low-income communities, Other Considerations and noted that the bank intended to work with community groups to address concerns in these areas. In reviewing this proposal under the BHC Act and sec- 11. Centura Bank, Triangle Bank, and Mecklenburg each received a tion 9 of the Federal Reserve Act the Board also has rating of "satisfactory" at their most recent CRA performance evaluations as of January 20, 1998, September 15, 1997, and September 14, considered the financial and managerial resources and fu- 1998, respectively. ture prospects of the companies and banks involved, the 12. See 12C.F.R. 225.28(b)(3). convenience and needs of the communities to be served, 13. 12 U.S.C. § 1843(c)(8). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 235 those resources. For the reasons noted above, and based on The banking acquisitions shall not be consummated beall the facts of record, the Board has concluded that finan- fore the fifteenth calendar day following the effective date cial and managerial considerations are consistent with ap- of this order, and the proposal shall not be consummated proval of the notice. later than three months after the effective date of this order, The Board also has considered the competitive effects of unless such period is extended for good cause by the Board the proposed acquisition by CBI of Coastal Leasing. Be- or by the Federal Reserve Bank of Richmond, acting cause CBI does not currently compete with Coastal Leas- pursuant to delegated authority. ing in its marketing area, the Board concludes that it is By order of the Board of Governors, effective Januunlikely that significantly adverse competitive effects ary 27, 2000. would result from the nonbanking acquisition proposed in the transaction. Voting for this action: Chairman Greenspan, Vice Chairman Fergu- The Board expects that the proposed transaction would son, and Governors Kelley, and Gramlich. Absent and not voting: Governor Meyer. give CBI an increased ability to serve the needs of its customers. In addition, there are public benefits to be derived from permitting capital markets to operate so that ROBERT DEV. FRIERSON bank holding companies can make potentially profitable Associate Secretary of the Board investments in nonbanking companies and from permitting banking organizations to allocate their resources in the Appendix A manner they consider to be most efficient when such invest- North Carolina Banking Markets in Which CBI and ments are consistent, as in this case, with the relevant Triangle Directly Compete considerations under the BHC Act. The Board also concludes that the conduct of the pro- Charlotte: Charlotte, North and South Carolina Rand posed nonbanking activity within the framework of Regu- McNally Marketing Area ("RMA"). lation Y and Board precedent is not likely to result in Columbus County: Columbus County. adverse effects, such as undue concentration of resources, Duplin County: Duplin County. decreased or unfair competition, conflicts of interests, or Durham: Durham, North Carolina RMA and the non-RMA unsound banking practices, that would outweigh the public portions of Durham and Orange Counties, and Chatham benefits of the proposal, such as increased customer conve- County. nience and gains in efficiency. Accordingly, based on all Fayetteville: Fayetteville, North Carolina RMA and the the facts of record, the Board has determined that the non-RMA portion of Cumberland County. balance of public interest factors that the Board must Goldsboro: Goldsboro, North Carolina RMA and the nonconsider under the proper incident to banking standard of RMA portion of Wayne County. section 4(c)(8) of the BHC Act is favorable and consistent Granville County: Granville County, excluding the Durham with approval of this proposal. RMA. Greenville: Greenville, North Carolina RMA and the non- Conclusion RMA portion of Pitt County. New Bern: Craven, Pamlico, and Carteret Counties, and the eastern half of Jones County. Based on the foregoing and all the facts of record, the Raleigh: Raleigh, North Carolina RMA and the non-RMA Board has determined that the applications and notice portions of Franklin, Johnston, Wake, and Harnett Counshould be, and hereby are, approved. The Board's approval ties, excluding the Fayetteville RMA. is specifically conditioned on compliance by CBI with all Richmond County: Richmond County. the commitments made in connection with this application Roanoke Rapids: Halifax and Northampton Counties. and with the conditions in this order, including CBI's Robeson County: Robeson County. divestiture commitments. The Board's determination on Rocky Mount: the Rocky Mount RMA, and the non-RMA the nonbanking activity also is subject to all the terms and portions of Edgecombe, Nash, and Wilson Counties. conditions set forth in Regulation Y, including those in Sanford: Lee County. sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and Warren County: Warren County. 225.25(c)), and to the Board's authority to require such Washington County: Washington County. modification or termination of the activities of a bank Wilmington: Wilmington, North Carolina RMA and the holding company or any of its subsidiaries as the Board non-RMA portion of Brunswick County, excluding the finds necessary to ensure compliance with, and to prevent Myrtle Beach-Conway RMA, and Pender County. evasion of, the provisions of the BHC Act and the Board's regulations and orders thereunder. For purposes of this Appendix B action, the commitments and conditions relied on by the Summary of Pro Forma Market Structure Board in reaching its decision are deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in A. Banking Markets Without Divestitures and HHIs Within proceedings under applicable law. DOJ Guidelines Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
236 Federal Reserve Bulletin • March 2000 Charlotte 4.8 percent of market deposits. After consummation of the proposal, CBI would be the third largest depository institu- CBI is the tenth largest depository institution in the market, tion in the market, controlling $148.2 million, representing controlling deposits of approximately $252.3 million, rep- 14.8 percent of market deposits. The HHI would increase resenting less than 1 percent of market deposits. Triangle is 95 points to 1754. the eleventh largest depository institution in the market, controlling approximately $196.7 million in deposits, rep- New Bern resenting less than 1 percent of market deposits. After consummation of the proposal, CBI would be the ninth CBI is the fifth largest depository institution in the market, largest depository institution in the market, controlling controlling deposits of approximately $85.6 million, repreapproximately $449 million, representing 1.7 percent of senting 6.2 percent of market deposits. Triangle is the sixth market deposits. The HHI would increase 1 point to 3534. largest depository institution in the market, controlling approximately $58.6 million in deposits, representing Durham 4.2 percent of market deposits. After consummation of the proposal, CBI would be the fourth largest depository insti- CBI is the sixth largest depository institution in the market, tution in the market, controlling $144.2 million, representcontrolling deposits of approximately $197.1 million, reping 10.4 percent of market deposits. The HHI would inresenting 5.1 percent of market deposits. Triangle is the crease 51 points to 2123. seventh largest depository institution in the market, controlling approximately $160.6 million in deposits, representing 4.1 percent of market deposits. After consumma- Raleigh tion of the proposal, CBI would be the fifth largest depository institution in the market, controlling approxi- CBI is the seventh largest depository institution in the mately $357.6 million, representing 9.2 percent of market market, controlling deposits of approximately $484.7 mildeposits. The HHI would increase 42 points to 1710. lion, representing 6.4 percent of market deposits. Triangle is the eighth largest depository institution in the market, Fayetteville controlling approximately $350.9 million in deposits, representing 4.7 percent of market deposits. After consumma- CBI is the fourth largest depository institution in the mar- tion of the proposal, CBI would be the fourth largest ket, controlling deposits of approximately $160.3 million, depository institution in the market, controlling representing 10.8 percent of market deposits. Triangle is $835.6 million, representing 11.1 percent of market deposthe eighth largest depository institution in the market, its. The HHI would increase 60 points to 1217. controlling approximately $30.2 million in deposits, representing 2 percent of market deposits. After consummation Richmond County of the proposal, CBI would be the third largest depository institution in the market, controlling approximately CBI is the third largest depository institution in the market, $190.4 million, representing 12.8 percent of market deposcontrolling deposits of approximately $50.7 million, repreits. The HHI would increase 44 points to 1942. senting 15 percent of market deposits. Triangle is the sixth largest depository institution in the market, controlling Goldsboro approximately $16.3 million in deposits, representing 4.8 percent of market deposits. After consummation of the CBI is the fourth largest depository institution in the marproposal, CBI would be the third largest depository instituket, controlling deposits of approximately $88.4 million, tion in the market, controlling $67 million, representing representing 9.8 percent of market deposits. Triangle is the 19.8 percent of market deposits. The HHI would increase fifth largest depository institution in the market, controlling 144 points to 2379. approximately $72.1 million in deposits, representing 8 percent of market deposits. After consummation of the proposal, CBI would be the third largest depository institu- Robeson County tion in the market, controlling $160.5 million, representing approximately 17.9 percent of market deposits. The HHI CBI is the sixth largest depository institution in the market, would increase 157 points to 2215. controlling deposits of approximately $36.1 million, representing 5.5 percent of market deposits. Triangle is the Greenville fourth largest depository institution in the market, controlling approximately $78.9 million in deposits, representing CBI is the fifth largest depository institution in the market, 11.9 percent of market deposits. After consummation of controlling deposits of approximately $100.3 million, rep- the proposal, CBI would be the third largest depository resenting 10 percent of market deposits. Triangle is the institution in the market, controlling $115 million, represixth largest depository institution in the market, control- senting 17.4 percent of market deposits. The HHI would ling approximately $47.9 million in deposits, representing increase 130 point to 2403. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 237 Sanford main the third largest depository institution in the market, controlling deposits of $50.6 million, representing approx- CBI is the second largest depository institution in the imately 20.2 percent of market deposits. The HHI would market, controlling deposits of approximately $106.1 mil- remain unchanged at 2338. lion, representing 19.6 percent of market deposits. Triangle is the eighth largest depository institution in the market, controlling approximately $13.6 million in deposits, repre- Roanoke Rapids senting 2.5 percent of market deposits. After consummation of the proposal, CBI would be the second largest depository institution in the market, controlling CBI is the largest depository institution in the market, $119.7 million, representing 22.1 percent of market depos- controlling deposits of $190.7 million, representing apits. The HHI would increase 99 points to 2174. proximately 36.3 percent of market deposits. Triangle is the fourth largest depository institution in the market, Wilmington controlling deposits of $39.1 million, representing approximately 7.4 percent of market deposits. CBI proposes to divest two branches with total deposits of approximately CBI is the fifth largest depository institution in the market, $23.9 million to an out-of-market competitor. On consumcontrolling deposits of approximately $227.9 million, repmation of the proposal, and after accounting for the proresenting 8.9 percent of market deposits. Triangle is the posed divestitures, CBI would remain the largest depositwelfth largest depository institution in the market, controltory institution in the market, controlling deposits of ling approximately $31.4 million in deposits, representing $205.9 million, representing approximately 39.2 percent of 1.2 percent of market deposits. After consummation of the market deposits. The HHI would increase 183 points to proposal, CBI would be the fifth largest depository institu- 2772. tion in the market, controlling $259.3 million, representing approximately 10.2 percent of market deposits. The HHI would increase 22 points to 1539. Warren County B. Banking Markets With Divestitures and HHIs Within CBI is the second largest depository institution in the DOJ Guidelines. market, controlling deposits of $20.9 million, representing approximately 20.3 percent of market deposits. Triangle is Columbus County the fourth largest depository institution in the market, controlling deposits of $11.1 million, representing approx- CBI is the second largest depository institution in the imately 10.8 percent of market deposits. CBI proposes to market, controlling deposits of $66.6 million, representing divest Triangle's one branch in the market to an out-ofapproximately 14.4 percent of market deposits. Triangle is market competitor. On consummation of the proposal, and the fourth largest depository institution in the market, after accounting for the proposed divestiture, CBI would controlling deposits of $47.2 million, representing approx- remain the second largest depository institution in the imately 10.2 percent of market deposits. CBI proposes to market, controlling deposits of $20.9 million, representing divest one branch with total deposits of approximately approximately 20.3 percent of market deposits. The HHI $24.5 million to an in-market competitor. On consumma- would remain unchanged 3500. tion of the proposal, and after accounting for the proposed divestiture, CBI would remain the second largest depository institution in the market, controlling deposits of Washington County $89.3 million, representing approximately 19.3 percent of market deposits. The HHI would increase 146 points to 3739. CBI is the third largest depository institution in the market, controlling deposits of $26.4 million, representing approx- Granville County imately 23.8 percent of market deposits. Triangle is the second largest depository institution in the market, control- CBI is the third largest depository institution in the market, ling deposits of $30 million, representing approximately controlling deposits of $50.6 million, representing approx- 27.1 percent of market deposits. CBI proposes to divest imately 20.2 percent of market deposits. Triangle is the Triangle's two branches in the market to an out-of-market fourth largest depository institution in the market, control- competitor. On consummation of the proposal, and after ling deposits of $40.1 million, representing approximately accounting for the proposed divestitures, CBI would re- 16 percent of market deposits. CBI proposes to divest main the third largest depository institution in the market, Triangle's two branches in the market to an out-of-market controlling deposits of $26.4 million, representing approxcompetitor. On consummation of the proposal, and after imately 23.8 percent of market deposits. The HHI would accounting for the proposed divestitiures, CBI would re- remain unchanged at 2469. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
238 Federal Reserve Bulletin • March 2000 ORDERS ISSUED UNDER INTERNATIONAL BANKING into account additional standards as set forth in the IBA ACT and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)-(3)). E. Sun Commercial Bank, Limited As noted above, Bank engages directly in the business of Taipei, Taiwan banking outside the United States. Bank also has provided the Board with information necessary to assess the applica- Order Approving Establishment of a Branch tion through submissions that address the relevant issues. With respect to supervision by home country authorities, E. Sun Commercial Bank, Limited ("Bank"), Taipei, Tai- the Board previously has determined, in connection with wan, a foreign bank within the meaning of the Interna- applications involving other banks in Taiwan, that those tional Banking Act ("IBA"), has applied under section 7(d) banks were subject to home country supervision on a of the IBA (12 U.S.C. § 3105(d)) to establish a state- consolidated basis.3 Bank is supervised by the Ministry of licensed branch in Los Angeles, California. The Foreign Finance ("Ministry") and the Taiwan central bank on Bank Supervision Enhancement Act of 1991, which substantially the same terms and conditions as those other amended the IBA, provides that a foreign bank must obtain banks. Based on all the facts of record, the Board has the approval of the Board to establish a branch in the determined that Bank is subject to comprehensive supervi- United States. sion on a consolidated basis by its home country supervi- Notice of the application, affording interested persons an sors. opportunity to comment, has been published in a newspa- The Board has also taken into account the additional per of general circulation in Los Angeles, California (San standards set forth in section 7 of the IBA and Regula- Gabriel Valley Tribune, July 12, 1999). The time for filing tion K {see 12 U.S.C. § 3105(d)(3)-(4); 12C.F.R. 211.24(c)(2)). comments has expired, and the Board has considered the The Ministry has no objection to the establishment of the application and all comments received. proposed branch. Bank, with total consolidated assets of approximately Bank must comply with the minimum capital standards $6.3 billion, is a full-service commercial bank.1 Its shares of the Basel Capital Accord, as implemented by Taiwan. are publicly traded and widely held. Bank operates Bank's capital exceeds these minimum standards and can 37 branches and an overseas banking unit in Taiwan, and be considered equivalent to capital that would be required representative offices in The Philippines and Hong Kong. of a U.S. banking organization. Managerial and other finan- Bank currently does not have any operations in the United cial resources of Bank are also considered consistent with States. approval, and Bank appears to have the experience and The purpose of the proposed branch is to allow Bank to capacity to support the proposed branch. Bank has estabbetter serve the needs of its customers that have business lished controls and procedures for the proposed branch to interests in the United States. In addition, the proposed ensure compliance with U.S. law, as well as controls and office would seek to develop new customers among U.S. procedures for its worldwide operations generally. businesses and individuals who have business interests in With respect to access to information about Bank's Taiwan. The activities of the proposed branch office would operations, the Board has reviewed the restrictions on include commercial lending, mortgage lending, syndicated and participation loans, purchasing and selling interbank funds, maintaining credit balances and deposit accounts, (ii) Obtain information on the condition of the bank and its subsidand letter of credit services. Bank would be a qualifying iaries and offices through regular examination reports, audit foreign business organization within the meaning of Regu- reports, or otherwise; lation K (12 C.F.R. 211.23(b)). (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; In order to approve an application by a foreign bank to (iv) Receive from the bank financial reports that are consolidated establish a branch in the United States, the IBA and Reguon a worldwide basis or comparable information that permits lation K require the Board to determine that the foreign analysis of the bank's financial condition on a worldwide bank applicant engages directly in the business of banking consolidated basis; outside of the United States, and has furnished to the Board (v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of the information it needs to assess the application adecomprehensive, consolidated supervision. No single factor is quately. The Board also shall take into account whether the essential, and other elements may inform the Board's determiforeign bank and any foreign bank parent is subject to nation. comprehensive supervision or regulation on a consolidated 3. See Taipei Bank, 79 Federal Reserve Bulletin 143 (1993); United basis by its home country supervisor (12 U.S.C. World Chinese Commercial Bank, 79 Federal Reserve Bulletin 146 (1993); Bank of Taiwan, 79 Federal Reserve Bulletin 541 (1993); § 3105(d)(2); 12 C.F.R. 211.24).2 The Board may also take Chiao Tung Bank, 79 Federal Reserve Bulletin 543 (1993); Medium Business Bank of Taiwan, 79 Federal Reserve Bulletin 807 (1993); The Farmers Bank of China, 81 Federal Reserve Bulletin 620 (1995); 1. All data are as of June 30, 1999. Taiwan Business Bank, 81 Federal Reserve Bulletin 746 (1995); First 2. In assessing this standard, the Board considers, among other Commercial Bank, 83 Federal Reserve Bulletin 315 (1997); Land factors, the extent to which the home country supervisors: Bank of Taiwan, 83 Federal Reserve Bulletin 336 (1997); Bank (i) Ensure that the bank has adequate procedures for monitoring SinoPac, 83 Federal Reserve Bulletin 669 (1997); Chinatrust Comand controlling its activities worldwide; mercial Bank, Ltd., 84 Federal Reserve Bulletin 1121 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 239 disclosure in relevant jurisdictions in which Bank operates obtain information to determine and enforce compliance by and has communicated with relevant government authori- Bank or its affiliates with applicable federal statutes, the ties regarding access to information. Bank has committed Board may require termination of any of Bank's direct or to make available to the Board such information on the indirect activities in the United States. Approval of this operations of Bank and any of its affiliates that the Board application also is specifically conditioned on compliance deems necessary to determine and enforce compliance with by Bank with the commitments made in connection with the IB A, the Bank Holding Company Act of 1956, as this application and with the conditions in this order.4 The amended, and other applicable federal law. To the extent commitments and conditions referred to above are condithat the provision of such information to the Board may be tions imposed in writing by the Board in connection with prohibited by law, Bank has committed to cooperate with its decision and may be enforced in proceedings under the Board to obtain any necessary consents or waivers that 12 U.S.C. § 1818 against Bank and its affiliates. might be required from third parties for disclosure of such By order of the Board of Governors, effective Januinformation. In addition, subject to certain conditions, the ary 24, 2000. Ministry may share information on Bank's operations with other supervisors, including the Board. In light of these Voting for this action: Chairman Greenspan, Vice Chairman Fergucommitments and other facts of record, and subject to the son, and Governors Kelley, Meyer, and Gramlich. condition described below, the Board concludes that Bank ROBERT DEV. FRIERSON has provided adequate assurances of access to any neces- Associate Secretary of the Board sary information that the Board may request. On the basis of all the facts of record, and subject to the commitments made by Bank, as well as the terms and 4. The Board's authority to approve the establishment of the proconditions set forth in this order, the Board has determined posed branch parallels the continuing authority of the State of Califorthat Bank's application to establish a branch should be, and nia to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of California hereby is, approved. Should any restrictions on access to and the State of California Department of Financial Institutions ("Deinformation on the operations or activities of Bank and its partment") to license the proposed office of Bank in accordance with affiliates subsequently interfere with the Board's ability to any terms or conditions that the Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) Effective Date Wachovia Corporation, B C Bankshares, Inc., January 3, 2000 Winston-Salem, North Carolina Canton, Georgia Bank of Canton, Canton, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
240 Federal Reserve Bulletin • March 2000 Sections 3 and 4 Applicant(s) Bank(s) Effective Date Old National Bancorp, ANB Corporation, January 27, 2000 Evansville, Indiana Muncie, Indiana American National Bank and Trust Company, Muncie, Indiana Peoples Loan and Trust Bank, Winchester, Indiana Farmers State Bank of Union City, Union City, Ohio American National Trust and Investment Management Company, Muncie, Indiana 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 Arvest Bank Group, Inc., P & W Bancshares, Inc., St. Louis December 22, 1999 Bentonville, Arkansas Little Rock, Arkansas Central Bank & Trust, Little Rock, Arkansas ASB Management Corp., Anna State Bank, St. Louis January 7, 2000 Anna, Illinois Anna, Illinois Associated Community Bancorp, The Greenwich Bank and Trust New York January 11, 2000 Inc., Company, Greenwich, Connecticut Greenwich, Connecticut Westport National Bank, Westport, Connecticut Banco Santander Central Hispano, The Royal Bank of Scotland Group, pic, New York January 11, 2000 S.A., Edinburgh, Scotland Madrid, Spain Banque Nationale de Paris, BancWest Corporation, San Francisco January 13, 2000 Paris, France Honolulu, Hawaii Bank of the West, San Francisco, California First Hawaiian Bank, Honolulu, Hawaii Belvedere Capital Partners, LLC, Sacramento Commercial Bank, San Francisco January 3, 2000 San Francisco, California Sacramento, California California Community Financial Sacramento Capital Co., Institutions Fund Limited San Francisco, California Partnership, San Francisco, California Bruning Bancshares, Inc., The Commercial State Bank, Kansas City January 13, 2000 Bruning, Nebraska Clay Center, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 241 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Bryan-Heritage Limited Partnership, The First National Bank of Bryan, Dallas January 14, 2000 Bryan, Texas Bryan, Texas Bryan Family Management Trust, Bryan, Texas Chestatee Bancshares, Inc., Chestatee State Bank, Atlanta January 19, 2000 Dawsonville, Georgia Dawsonville, Georgia Clintonville Bancshares, Inc., Nichols Bancorp, Inc., Chicago December 29, 1999 Clintonville, Wisconsin Nichols, Wisconsin Neighborhood State Bank, Nichols, Wisconsin Community National Tarpon Financial Corporation, Atlanta January 14, 2000 Bancorporation, Tarpon Springs, Florida Ashburn, Georgia Dacotah Banks, Inc., Rolla Holding Company, Inc., Minneapolis January 6, 2000 Aberdeen, South Dakota Rolla, North Dakota Ellis Bankshares, Inc., First National Bank of Eagle River, Minneapolis December 28, 1999 Eagle River, Wisconsin Eagle River, Wisconsin First Banks Inc., Lippo Bank, St. Louis January 5, 2000 St. Louis, Missouri San Francisco, California First Banks, America, Inc., St. Louis, Missouri First National Bancshares, Inc., First National Bank of Spartanburg, Richmond January 6, 2000 Spartanburg, South Carolina Spartanburg, South Carolina First State Bank of Rushmore KSOP First Rushmore Bancorporation, Inc., Minneapolis January 7, 2000 Plan and Trust, Worthington, Minnesota Worthington, Minnesota Glenwood Bancorporation, Frontier Savings Bank, Chicago January 14, 2000 Glenwood, Iowa Council Bluffs, Iowa Grand Valley Corporation, Heber Valley National Bank, Kansas City January 6, 2000 Grand Junction, Colorado Heber City, Utah Gulf Coast Community Bancshares, Wewahitchka State Bank, Atlanta January 4, 2000 Inc., Wewahitchka, Florida Wewahitchka, Florida Gwinnett Commercial Group, Inc., First Bank of Gwinnett, Atlanta January 4, 2000 Lawrenceville, Georgia Lawrenceville, Georgia Harleysville Savings Financial Harleysville Savings Bank, Philadelphia January 6, 2000 Corporation, Harleysville, Pennsylvania Harleysville, Pennsylvania Hunter Holding Company, Coteau Holding Company, Minneapolis January 12, 2000 Hunter, North Carolina Gackle, North Dakota First State Bank of Gackle, Gackle, North Dakota Iowa State Financial Services Iowa State Bank & Trust Company, Chicago January 21, 2000 Corporation, Fairfield, Iowa Fairfield, Iowa Iowa State Financial Services North Linn Corporation, Chicago January 21, 2000 Corporation, Coggon, Iowa Fairfield, Iowa Linn County State Bank, Coggon, Iowa NCT Holdings, Inc., U.S. Trust Company of North Carolina, New York January 20, 2000 Greensboro, North Carolina Greensboro, North Carolina Oak Financial, Inc., Oak Bank, Chicago January 6, 2000 Madison, Wisconsin Fitchburg, Wisconsin Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
242 Federal Reserve Bulletin • March 2000 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Otto Bremer Foundation, Northwest Equity Corporation, Minneapolis January 19, 2000 St. Paul, Minnesota Amery, Wisconsin Bremer Financial Corporation, Northwest Savings Bank, St. Paul, Minnesota Amery, Wisconsin Panola National Bancshares, Inc. Panola National Bank, Dallas December 29, 1999 Carthage, Texas Carthage, Texas Panola National Bancshares of Delaware, Inc., Wilmington, Delaware Pinnacle Bancorp, Inc., Burns National Bank of Durango, Kansas City December 31, 1999 Central City, Nebraska Durango, Colorado Western Bank, Gallup, New Mexico Ridgeway Bancshares, Inc., Bank of Ridgeway, Richmond December 24, 1999 Ridgeway, South Carolina Ridgeway, South Carolina Rivers Ridge Holding Company, Bank Vista, Minneapolis December 30, 1999 Edina, Minnesota Sartell, Minnesota Sacramento Capital Co., Sacramento Commercial Bank, San Francisco January 3, 2000 San Francisco, California Sacramento, California Spectrum Bancorporation, Inc., Citizens Bank, Chicago January 14, 2000 Omaha, Nebraska Carlisle, Iowa Team Financial Acquisition Fort Calhoun Investment Company, Kansas City January 13, 2000 Subsidiary, Inc., Fort Calhoun, Nebraska Paola, Kansas Fort Calhoun State Bank, Team Financial, Inc., Fort Calhoun, Nebraska Paola, Kansas Team Financial Employees Stock Ownership Plan, Paola, Kansas U.S. Trust Corporation, U.S. Trust Company of North Carolina, New York January 20, 2000 New York, New York Greensboro, North Carolina NCT Holdings, Inc., Greensboro, North Carolina Utah Bancshares, Inc. Bank of Ephraim, San Francisco January 12, 2000 Ephraim, Utah Ephraim, Utah Virginia Commonwealth Financial Caroline Savings Bank, Richmond January 14, 2000 Corporation, Bowling Green, Virginia Culpeper, Virginia Whitney Holding Corporation, Bank of Houston, Atlanta January 13, 2000 New Orleans, Louisiana Houston, Texas Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Associated Banc-Corp, BNC Financial Corporation, Chicago December 23, 1999 Green Bay, Wisconsin St. Cloud, Minnesota Bar Harbor Bankshares, Dirigo Investments Inc., Boston January 3, 2000 Bar Harbor, Maine Bar Harbor, Maine Bar Harbor Banking and Trust Company, Bar Harbor, Maine Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 243 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bayerische Hypo- und Vereinsbank Babcock & Brown LP, New York January 7, 2000 AG, San Francisco, California Munich, Germany Babcock, Brown Operating Partnership LP, San Francisco, California Babcock & Brown Holdings Inc., San Francisco, California Babcock & Brown Inc., San Francisco, California Bootheel Bancorp, Inc., Poplar Bluff Computer Service Center, St. Louis December 30, 1999 Bernie, Missouri Inc., Poplar Bluff, Missouri Century South Banks, Inc. Haywood Bancshares, Inc., Atlanta December 31, 1999 Dahlonega, Georgia Waynesville, North Carolina Haywood Savings Bank, Inc., SSB, Waynesville, North Carolina Cera Foundation VZW, KBC Financial Products (USA), Inc., New York January 14, 2000 Leuven, Belgium New York, New York Cera Management N.V., Leuven, Belgium Cera Holding, C.V., Leuven, Belgium Cera Ancora N.V., Leuven, Belgium Almanij, N.V., Antwerp, Belgium KBC Bank & Insurance Company, N.V., Brussels, Belgium KBC Bank, N.V., Brussels, Belgium Citizen's Community Bancorp, Inc. To engage de novo in originating Atlanta January 21, 2000 Marco Island, Florida mortgage loans Concord EFS, Inc., National Payment Systems, Inc., St. Louis January 20, 2000 Memphis, Tennessee New York, New York Iowa State Financial Services Sisler Insurance Agency, Inc., Chicago January 21, 2000 Corporation, Coggon, Iowa Fairfield, Iowa North Linn Corporation, Coggon, Iowa NCT Holdings, Inc., NCT Opportunities Inc., New York January 20, 2000 Greensboro, North Carolina Greensboro, North Carolina Sherman County Management, Inc.. To engage in agency transactional Kansas City December 28, 1999 Loup City, Nebraska services for customer investments and futures commission merchant activities Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
244 Federal Reserve Bulletin • March 2000 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Stichting Prioriteit ABN AMRO ABN AMRO Mortgage Group, Chicago January 3, 2000 Holding, Jacksonville, Florida Amsterdam, the Netherlands Atlantic Mortgage & Investment Stichting Administratiekantoor ABN Corporation, AMRO Holding, Jacksonville, Florida Amsterdam, the Netherlands ABN AMRO Holding N.V., Amsterdam, the Netherlands ABN AMRO Bank, N.V. Amsterdam, the Netherlands ABN AMRO North America, Inc., Chicago, Illinois Susquehanna Bancshares, Inc. Boston Service Company, Philadelphia January 12, 2000 Lititz, Pennsylvania Jamesburg, New Jersey The Toronto-Dominion Bank, CTUSA, F.S.B., New York January 18, 2000 Toronto, Canada Naples, Florida Tri County Investment Company, Duane Klingsporn Insurance Agency, Minneapolis January 5, 2000 Inc., Pine Island, Minnesota Pine Island, Minnesota UBS AG, Lucent Technologies Consumer New York January 13, 2000 Zurich, Switzerland Products L.P, North Street Finance LLC, Murray Hill, New Jersey New York, New York United Financial Holdings, Inc., United Insurance Holdings, Inc., Atlanta January 7, 2000 St. Petersburg, Florida St. Petersburg, Florida Westdeutsche Landesbank WestLB Panmure Securities Inc., New York December 30, 1999 Girozentrale, New York, New York Dusseldorf, Germany Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Farmers Bancshares, Inc., Leitchfield Deposit Bancshares, Inc., St. Louis December 27, 1999 Hardinsburg, Kentucky Leitchfield, Kentucky Leitchfield Deposit Bank and Trust Company, Leitchfield, Kentucky Leitchfield Bancshares Insurance, Inc., Leitchfield, Kentucky Summit Bancorp, NMBT Corp., New York December 30, 1999 Princeton, New Jersey New Milford, Connecticut NMBT, New Milford, Connecticut Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 245 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 Bank of Colorado, Burns National Bank of Durango, Kansas City December 31, 1999 Fort Lupton, Colorado Durango, Colorado CivicBank of Commerce, East County Bank, San Francisco December 28, 1999 Oakland, California Antioch, California Gold Bank, Linn County Bank, Kansas City January 20, 2000 Leawood, Kansas La Cygne, Kansas Pinnacle Bank, Pinnacle Bank, Kansas City January 13, 2000 Papillion, Nebraska Lincoln, Nebraska Crete State Bank, Crete, Nebraska United States Trust Company of U.S. Trust Company of New Jersey, New York January 6, 2000 New York, West Windsor, New Jersey New York, New York PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the dom of Information Act and the Privacy Act. The Board Federal Reserve Banks in which the Board of Governors is not filed a motion to dismiss or for summary judgment on named a party. July 22, 1999. Folstad v. Board of Governors, No. 1:99 CV 124 (W.D. Mich., Toland v. Federal Reserve System, No. CV-S-99-1769-JBR- filed February 17, 1999). Freedom of Information Act com- RJJ (D. Nevada, filed December 29, 1999). Challenge to plaint. On November 16, 1999, the district court granted the income taxation and Federal Reserve notes. Board's motion for summary judgment and dismissed the Irontown Housing Corp. v. Board of Governors, No. 99-9549 action. On January 14, 2000, the plaintiff filed a notice of (10th Cir., filed December 27, 1999). Petition for review of appeal. Board order dated December 13, 1999, approving the Nelson v. Greenspan, No. 1:99CV00215 (EGS) (D.D.C., filed merger of Zions Bancorporation with First Security Corpo- January 28, 1999). Employment discrimination complaint. ration. On March 29, 1999, the Board filed a motion to dismiss the Wasserman v. Federal Reserve Bank, No. 99-6280 (2d Cir., action. filed August 26, 1999). Appeal of district court dismissal of Fraternal Order of Police v. Board of Governors, No. case challenging refusal by the Board and the Federal 1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998). Reserve Bank of New York to investigate certain matters. Declaratory judgment action challenging Board labor prac- On January 19, 2000, the court dismissed the appeal. tices. On February 26, 1999, the Board filed a motion to Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed dismiss the action. August 3, 1999). Employment discrimination action. Independent Community Bankers of America v. Board of Gov- Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. ernors, No. 98-1482 (D.C. Cir., filed October 21, 1998). Cal., filed July 21, 1999). Action relating to impounded Petition for review of a Board order dated September 23, bank drafts. 1998, conditionally approving the applications of Travelers Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., Group, Inc., New York, New York, to become a bank filed April 28, 1999). Appeal of dismissal of action chal- holding company by acquiring Citicorp, New York, New lenging income taxation and Federal Reserve notes. York, and its bank and nonbank subsidiaries. On Novem- Sedgwick v. Board of Governors, No. Civ 99 0702 (D. Ari- ber 2, 1999, the court affirmed the Board's order. zona, filed April 14, 1999). Action under Federal Tort Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) Claims Act alleging violation of bank supervision require- (S.D.N.Y., filed May 15, 1998). Action to freeze assets of ments. The Board filed a motion to dismiss on June 15, individual pending administrative adjudication of civil 1999. money penalty assessment by the Board. On May 26, 1998, Hunter v. Board of Governors, No. 1:98CV02994 (ESH) the court issued a preliminary injunction restraining the (D.D.C., filed December 9, 1998). Action under the Free- transfer or disposition of the individual's assets and appoint- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
246 Federal Reserve Bulletin • March 2000 ing the Federal Reserve Bank of New York as receiver for Requests for interlocutory review of orders of an ALJ those assets. Following entry of the Board's order requiring are governed by section 263.28 of the Board's Rules of restitution, 85 Federal Reserve Bulletin 142 (1998), the Practice for Hearings, 12 C.F.R. § 263.28 ("Rule 28"). court granted the Board's motion for judgment in the asset Under that rule, the Board "may exercise interlocutory freeze action and authorized a judicial sale of the seized review" of an ALJ order if the Board finds that at least one property. of four circumstances exists: (1) The ruling involves a controlling question of law or Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed policy as to which substantial grounds exist for a May 4, 1998). Appeal and cross-appeal of district court difference of opinion; order granting in part and denying in part the Board's (2) Immediate review of the ruling may materially admotion for summary judgment seeking prejudgment interest vance the ultimate termination of the proceeding; and a statutory surcharge in connection with a civil money (3) Subsequent modification of the ruling at the conclupenalty assessed by the Board. On February 24, 1999, the sion of the proceeding would be an inadequate remcourt granted the Board's appeal and denied the crossedy; or appeal, and remanded the matter to the district court for (4) Subsequent modification of the ruling would cause determination of prejudgment interest due to the Board. unusual delay or expense. Fenili v. Davidson, No. C-98-01568-CW (N.D. California, 12 C.F.R. § 263.28(b). These provisions are similar to filed April 17, 1998). Tort and constitutional claim arising 28 U.S.C. § 1292(b), which sets forth the circumstances out of return of a check. On September 29, 1999, the court under which federal appellate courts may exercise jurisdicdismissed the action. tion over interlocutory appeals. Accordingly, the Board has Goldman v. Department of the Treasury, No. 98-9451 (11th previously observed that " '[w]hile section 1292(b) and Circuit, filed November 10, 1998). Appeal from a District case law governing interlocutory review in civil proceed- Court order dismissing an action challenging Federal Re- ings are not binding in this administrative proceeding, they serve notes as lawful money. The district court's dismissal provide useful guidance to the [agencies] in deciding prowas affirmed on August 9, 1999. cedural issues' such as the one presented here." In re Clifford & Altman, No. 92-080-E-I1, Order on Respon- Bettersworth v. Board of Governors, No. 97-CA-624 (W.D. dents' Motion for Interlocutory Review of Administrative Tex., filed August 21, 1997). Privacy Act case. On June 1, Law Judge's Order (Part 1), August 21, 1996, ("Clifford & 1999, the Board filed a motion for summary judgment. Altman /"), slip op. at 32, quoting In the Matter of David L. Paul, Order No. OTS AP 92-92, 1992 OTS DD LEXIS 90, *8 (1992). FINAL ENFORCEMENT DECISION ISSUED BY THE BOARD In Clifford & Altman I, the Board noted that interlocu- OF GOVERNORS tory review is discretionary, and that the scope within which such discretion should be exercised is extremely In the Matter of narrow. Clifford & Altman I, slip op. at 33, citing U.S. v. Incus Co., Ltd. Ivory, 29 F.3d 1307, 1311 (8th Cir. 1994), cert, denied, 116 Tortola, British Virgin Islands and S. Ct. 963 (1996). This limitation reflects a strong and Carlos Hank Rhon longstanding policy against piecemeal appeals before a An Institution-Affiliated Party of final judgment. Switzerland Cheese Ass'n, Inc. v. E. Incus Co., Ltd., and Home's Market, Inc., 385 U.S. 23, 24-25 (1966). "[T]here Laredo National Bancshares has been a firm congressional policy against interlocutory Laredo, Texas or 'piecemeal' appeals and courts have consistently given effect to that policy." Abney v. U.S., 431 U.S. 651, 656 (1976). Therefore, while Section 1292(b) and Rule 28 Docket Nos. 98-038-B-FHC, 98-038-B-I, 98-038-CMP- contemplate "discretionary" interlocutory review, the ex- FHC, 98-038-CMP-I, 98-038-E-I ercise of that discretion should be viewed in the context of an overriding federal policy against piecemeal review of Determination on Requests for Interlocutory Review litigation before the entry of a final judgment. Accordingly, while a finding of one of the four circum- Before the Board are three requests for interlocutory re- stances identified in Rule 28 is a necessary precondition to view filed jointly by Incus Co., Ltd. and Carlos Hank interlocutory review by the Board, it is not alone sufficient Rhon, the respondents in the above-captioned action (col- to require such review. Rather, the Board will exercise its lectively, "Respondents"). The first request challenges the discretion to grant interlocutory review where at least one administrative law judge's order striking certain affirma- of the prerequisites is met, using all of the prerequisites as tive defenses advanced by Respondents. The second and guideposts in the exercise of that discretion. Accord, In re third requests involve three discovery rulings made by the Henderson, OTS Order No. AP 96-23, 1996 OTS DD administrative law judge (the "ALJ") relating to the scope LEXIS 12 at *7 (applying identical regulation). The movof discovery and the assertion of privilege by Board ant has the burden of persuading the Board that "excep- Enforcement Counsel ("Enforcement Counsel"). tional circumstances justify a departure from the basic Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 247 policy" of postponing all review until the conclusion of the Moreover, Respondents have failed to establish any of case. Coopers & Lybrand v. Livesay, 437 U.S. 463, 475 the prerequisites for interlocutory review of the order strik- (1978). ing affirmative defenses. First, and most importantly, they For the reasons set forth below, the Board determines have identified no "controlling question of law or policy as that Respondents have failed to meet that burden, and to which substantial grounds exist for a difference of opindenies their requests for interlocutory review. ion." Rule 28(b)(1). In fact, they cite no case in which affirmative defenses such as those they posit here have A. Order Striking Certain Affirmative Defenses been held to affect a respondent's liability for the types of wrongdoing with which these Respondents are charged, to In their respective answers to the Notice of Charges, the negate in any manner any of the necessary elements of the Respondents interposed a number of affirmative defenses charged offenses, or to justify dismissal of the action. including three affirmative defenses based upon alleged Respondents base their argument upon SEC v. Gulf & misconduct by Enforcement Counsel in the investigation Western Ind., 502 F. Supp. 343 (D.D.C. 1980). In that case, that preceded filing the Notice of Charges. Specifically , the the district court temporarily permitted the defendants to Respondents contend that during the investigation Enforce- pursue an affirmative defense based upon alleged misconment Counsel "denied [Respondents their] right to effec- duct in the agency's investigation of their activities. The tive assistance of counsel under the Sixth Amendment to defendants there claimed that all of the information upon the United States Constitution" and invaded and violated which the charges were based was obtained by the agency Respondents' attorney-client relationship by interviewing in violation of their attorney-client privilege, a claim that the attorneys who served as Respondents' lawyers in vari- has not been made in this case. After limited discovery on ous transactions that formed the basis of the Notice. Re- the issue, the court ultimately granted the government's spondents also claim that these actions constituted abuse of motion to strike the affirmative defense, ruling that it was process. See Affirmative Defenses Two, Six and Fourteen "lacking in support, both factually and legally." SEC v. (Hank Rhon) and Six, Nine, and Fourteen (Incus).1 By Gulf & Western Ind., 518 F. Supp. 675, 678 (D.D.C. 1981). order dated August 4, 1999, the ALJ struck the three Although the district court in Gulf & Western focused its affirmative defenses. Order on Motion to Strike Affirmative discussion on the paucity of facts supporting the defen- Defenses, August 4, 1999 (the "August 4 Order"). dants' allegations, its ruling provides no support for the Several courts have held that orders striking an affirma- proposition that dismissal of the action would have been tive defense, and closely analogous orders denying sum- required had the allegations been sustained. In the years mary judgment on the basis of an affirmative defense, are since Gulf & Western, moreover, federal courts have deternot appealable prior to final resolution of the case. County mined that even in a criminal case, the government's of Hennepin v. Aetna Cas. & Sur. Co., 587 F.2d 945 inducement of a violation of the attorney-client privilege (8th Cir. 1978); Pedraza v. Shell Oil Co., 942 F.2d 48, 55 does not require dismissal of the action so long as privi- (1st Cir. 1991); Freeman v. Kohl & Vick Machine Works, leged information is not used at trial against the defendant.2 673 F.2d 196, 200 (7th Cir. 1982); Smith v. Benedict 279 See, e.g., United States v. Edgar, 82 F.3d 499, 509 (1st Cir. F.2d 211 (7th Cir. 1960); Flynn & Emrich Co. v. Green- 1996); United States v. White, 970 F.2d 328, 226 (7th Cir. wood, 242 F.2d 737 (4th Cir.), cert, denied, 353 U.S. 976 1992). Accordingly, there is no basis for a difference of (1957); Libbey-Owens-Ford Glass Co. v. Sylvania Indus- opinion on this issue in the context of civil administrative trial Corp., 154 F.2d 814 (2d Cir.), cert, denied, 328 U.S. charges.3 859 (1946). While Respondents have cited to a number of Similarly, Respondents have made no showing that their cases in which appellate courts have decided appeals of allegations amount to a viable affirmative defense under such orders, those cases do not appear to have considered the matter of their jurisdiction, and are thus not persuasive authority that such orders may be appealed prior to final determination of the matter. 2. The Board expresses no view on the propriety of Enforcement Counsel's investigatory contacts with Respondents' former counsel. 3. The Board also expresses no view on the question whether information obtained from Respondents' former counsel must be 1. In addition, Respondents asserted that the allegedly unprece- excluded at the hearing if it is found that the former counsel breached dented size and scope of the penalties sought violate "the standard of the attorney-client privilege by providing that information, except to fair and equitable treatment of foreign investors under both United note that Respondents have asserted as another affirmative defense States and international law." Affirmative Defense Eight (Hank Rhon) that they "relied in good faith on the legal advice of experienced and and Eleven (Incus). The ALJ ruled that "these claims to the extent knowledgeable regulatory counsel in connection with the matters asserted under international law are not cognizable in this proceed- charged." Affirmative Defense Twelve (Hank Rhon and Incus). To the ing." August 4 Order at 5. Respondents are free to make any legal extent this defense is pursued, it may well result in a waiver of arguments they choose in their papers, and have suggested no way in whatever attorney-client privilege Respondents assert with regard to which the course of this case could be affected by reinstituting the the subject matter of the investigatory interviews of their former stricken portion of this affirmative defense. Nor have they cited the counsel. See, e.g., Ideal Electronics Security Co. v. Int'l Fidelity Ins. Board to any precept of international law that imposes a stricter Co., 129 F.3d 143, 151-52 (D.C. Cir. 1997). The existence of this standard of fair and equitable treatment for foreign investors than affirmative defense, and its effect on the privilege issue, is one more imposed under United States law. Their request with respect to this reason why review of the ALJ's present ruling would be inappropriate portion of the Order is therefore denied. at this juncture. 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248 Federal Reserve Bulletin • March 2000 the Sixth Amendment to the United States Constitution.4 267 (7th Cir. 1991); Towe v. Board of Governors, 1999 U.S. Indeed, perhaps in recognition of the fact that the Sixth App. LEXIS 3078 *9 (9th Cir. 1999) (same). Amendment applies only to criminal prosecutions, Hannah Respondents have also failed to establish that subsequent v. Larche, 363 U.S. 420,440 n.16 (1960), Respondents now modification of the ruling at issue would be an "inadequate merely allege that Enforcement Counsel's investigatory remedy" or would "cause unusual delay or expense." techniques "impaired the effectiveness" of their attorney- Unlike a defense based on double jeopardy, where " 'the client relationship with their former counsel. Joint Request legal and practical value of the right asserted would be for Interlocutory Review, August 18, 1999, at 12. Again, destroyed if not vindicated before trial,' " Clifford & Altnothing they cite suggests that substantial grounds exist for man I at 33 (quoting United States v. Ivory, 29 F.3d 1307, a difference of opinion on whether such a claim states a 1311 (8th Cir. 1994)), there is nothing legally inadequate valid affirmative defense. Respondents currently are repre- about a subsequent order reversing the ALJ on the issue of sented by counsel who are presumably well able to present these asserted affirmative defenses. Nor would such a retheir defense. No suggestion of interference with that rela- versal result in unusual delay or expense beyond that tionship has been made. Enforcement Counsel's alleged inherent in any post-trial appeal. Indeed, the issues raised interactions with Respondents' former counsel do not im- in the stricken defenses are ancillary to the factual record plicate any rights of Respondents that would vitiate the that must be developed and presented at hearing. If at the charges against them. conclusion of the hearing in these proceedings the Board Finally, Respondents have also failed to establish any of were to remand the matter for fuller exploration of these the remaining prerequisites for interlocutory review with issues, the remand would be a limited one, and would not, respect to the August 4 Order. Respondents claim that their as Respondents contend, require an entirely new trial.5 stricken affirmative defenses will materially advance the For these reasons, the Board finds that Respondents have termination of these proceedings by permitting them to failed to establish any of the necessary prerequisites for obtain discovery that will lead to a motion for summary interlocutory review. Accordingly, the request for interlocdisposition. But as they have provided no legal authority to utory review of the August 4 Order is denied. suggest that their claims, if substantiated, would provide a basis for summary disposition, this argument fails. More- B. Discovery Orders over, the Board has already rejected the argument that avoidance of unnecessary litigation is enough to warrant Following the issuance of the Notice of Charges, Responinterlocutory review of a pretrial order. Clifford & Altman dents propounded a 92-item request for production of I, slip op. at 36, citing United States v. Taylor, 881 F.2d documents. Enforcement Counsel, while producing over 840, 843-44 (9th Cir. 1989), Laurel Lines S.R.L. v. Chas- 30 boxes of documents, moved to limit the scope of certain ser, 490 U.S. 495, 499 (1989). requests and to strike others. The ALJ granted the motion The Board also rejects Respondents' claim that termina- in part by Order of August 12, 1999. In an Order dated tion of the proceedings will be materially advanced be- September 10, 1999, the ALJ granted Enforcement Councause the charges against them are based upon "inaccurate sel's motion to strike Respondents' Second Request for and incomplete information" provided by Respondents' Production of Documents. Finally, in an Order dated Sepformer attorneys during the investigation. Joint Reply, Sep- tember 13, 1999, the ALJ denied Respondents' motion to tember 9, 1999, at 6. Even if Respondents could establish compel disclosure of documents as to which Enforcement that the attorney-client privilege was breached in providing Counsel had claimed a variety of privileges. Respondents this information, that would not establish that the informa- seek interlocutory review, in whole or in part, of these tion itself was in fact inaccurate or incomplete. At the three orders. hearing in this matter, the Respondents will have the oppor- Discovery orders rarely satisfy the requirements for intunity to present any evidence refuting or supplementing in terlocutory review. Church of Scientology of California v. an exculpatory manner the evidence of wrongdoing intro- United States, 506 U.S. 9, 18 n.ll (1992). First, a discovduced by Enforcement Counsel. Exploration of the manner ery ruling "is committed to the [trial judge's] discretion, in which Enforcement Counsel obtained the information it and an allegation of abuse does not create a legal issue." presents will not advance the resolution of this matter, but White v. Nix, 43 F.3d 374, 376 (8th Cir. 1994); accord, would be a needless diversion. See In the Matter of North- North Carolina Assoc. of Black Lawyers v. North Carolina west Indiana Bancshares, Inc., Docket No. 89-001-CMP Board of Law Examiners, 538 F.2d 547, 548-49 (4th Cir. 11-17 (September 7, 1990), slip op. at 9-10 (personal 1976); Atlantic City Electric Co. v. A.B. Chance Co., 313 motives of examiner who identified violations are irrelevant where documentary evidence substantiates charges), aff'd sub nom., Stanley v. Board of Governors, 940 F.2d 5. Moreover, Respondents claim that the evidence that supports their stricken affirmative defenses also supports their other affirmative 4. Respondents do not separately support with argument or citation defenses. Joint Request, August 18, 1999, at 16. To the extent this is their claim that Enforcement Counsel's actions amounted to an "abuse the case, no additional hearing would be necessary at all on a remand of process." to consider the stricken affirmative defenses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Legal Developments 249 F.2d 431, 434 (2d Cir. 1963).6 Second, as the Board has relating to the operations of Laredo National Bankshares, previously stated, Inc. and its subsidiaries, Laredo National Bank and South Texas National Bank, because this information assertedly such orders cannot be said to be "controlling" because establishes their good faith, a matter relevant to the deterit is impossible to know whether and to what extent mination of the amount of any penalty ultimately assessed. they might control the outcome of the proceeding Third, they challenge that part of the August 12 Order that absent the holding of the hearing, a ruling in the limited their access to information regarding Enforcement context of that hearing, and the issuance of a Counsel's contact with other government agencies during recommended decision. "If the final decision is the investigation to information regarding only those confavorable to [Respondents], they [the discovery orders] tacts relating to the Notice of Charges. may never become the subject of an appeal. For these Respondents have failed to make any of the showings reasons and others, discovery orders are not usually required by Rule 28 to justify interlocutory review with appealable until the litigation has finally ended." respect to any of these issues. Even if it could be said that the issue of Respondents' right to discovery on a selective prosecution claim absent a prima facie showing of discrim- In the Matter of Clifford & Altman, Order On Respondents' ination was a "controlling question of law or policy" — Motion for Interlocutory Review of Administrative Law and we do not believe that it is—Respondents have not Judge's Order, February 14, 1997, slip op. at 6, quoting established that "substantial grounds exist for a difference McKesson Corp. v. Islamic Republic of Iran, 52 F.3d 346, of opinion" on that question.9 Enforcement Counsel has 353 (D.C. Cir. 1995), cert, denied, 116 S. Ct. 704 (1996); pointed out that criminal defendants alleging discriminaaccord In the Matter of Pharaon, No. 91-037-E- II, Order tory prosecution must come forward with evidence of Denying Motion for Interlocutory Review, September 12, discriminatory treatment before obtaining discovery on the 1995, at 3 (order excluding evidence from the hearing does issue. United States v. Armstrong, 517 U.S. 456 (1996). not involve a controlling question of law or policy).7 Respondents have provided no basis for their argument For the reasons stated below, the Board finds that Re- that in the civil enforcement context they should be permitspondents have not met their burden under Rule 28 to ted discovery with a lesser showing, and have thus failed to justify interlocutory review of any of the challenged dis- establish that "substantial grounds" exist for a "difference covery orders. of opinion" on this issue.10 Respondents have similarly failed to establish that interlocutory review of this issue 1. August 12 Order would advance the ultimate termination of the proceeding or that later modification would be an inadequate remedy Respondents seek interlocutory review of three aspects of or cause unusual delay or expense. As discussed above, the August 12 Order. First, they assert that the ALJ erred in striking, in the absence of evidence making out a prima facie case of discrimination, their requests for documents 9. The Board rejects Respondents' alternative assertion that they relevant to their affirmative defense that the Board has have met their burden of showing a prima facie case of discriminatory treated them in a discriminatory manner relative to others treatment. Their evidence in this regard consists of an affidavit by their who allegedly violated similar provisions of law.8 Second, counsel, which recounts that he has interviewed unnamed "potential witnesses" who "are familiar" with a named individual who allegedly they argue that they should be entitled to information claimed to these potential witnesses that he had been retained by the Federal Reserve Bank of New York in connection with an application filed by Respondent Hank Rhon. According to the affidavit, this 6. The Board generally defers to the discovery rulings of administra- individual allegedly told these potential witnesses that "there was no tive law judges, in the same way that district court judges are accorded way the Federal Reserve Board would allow Carlos Hank Rhon or any wide discretion in dealing with such matters. See In the Matter of other Mexican to control an institution the size of LNB." Affidavit of Greenberg, OCC Docket No. AA-EC-90-45 (Board decision dated John M. Dowd in Support of Respondents' Joint Opposition to En- October 28, 1991), aff'd, 968 F.2d 164 (2d Cir. 1992). forcement Counsel's Motion to Strike Respondents' Second Joint 7. One exception to this general rule involves orders requiring the Request for Production of Documents, dated August 17, 1999. This is production of purportedly privileged information, given the difficulty double hearsay at least, and provides no probative evidence whatever of vindicating the rights involved in withholding privileged informa- concerning any discriminatory motive in initiating the charges against tion once disclosed. The Board's Rules include a provision precluding the Respondents here. the ALJ from requiring production of documents withheld on grounds 10. Respondents merely cite to the general discovery provision in of privilege if the party withholding the documents has indicated its the Board's Rules permitting discovery of documents having "materiintent to move for interlocutory review. 12 C.F.R. § 263.25(g). None al relevance to the merits of the pending action." 12 C.F.R. of the orders involved in the present requests required production of § 263.24(b). This standard is considerably more limited than the assertedly privileged material. analogous provision in Rule 26(b) of the Federal Rules of Civil 8. The documents sought in this connection included, inter alia, all Procedure permitting discovery of information "relevant to the subminutes of Board meetings in which foreign ownership of United ject matter involved in the pending action." See 61 Federal Register States banks or bank holding companies was referred to; all policy 20,338, 20,340 (1996). Accordingly, recitation of this standard does statements, memoranda, advisory opinions, or other writings that refer not advance Respondents' position that the Rules permit discovery on to the criteria employed by the Board in considering merger applica- an unsubstantiated charge of discriminatory prosecution. Indeed, it is tions; and all documents that identify any Order of Investigation, or far from obvious that such a charge has any "relevance to the merits relate to any ruling or order, involving allegations of violations of the of the pending action," a phrase that deliberately focuses on the statutory and regulatory provisions at issue in this case. particular charges brought against the respondents in a given case. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
250 Federal Reserve Bulletin • March 2000 these kinds of errors, if established, can be corrected upon proved the manner in which Enforcement Counsel invoked review of the ALJ's recommended decision. various privileges to withhold a number of documents. Respondents' arguments with respect to the ALJ's limi- This is a typical discovery matter that is appropriately dealt tation on discovery of documents relating to the operations with at the conclusion of a case and not through interlocuof Laredo National Bankshares and its subsidiaries, and tory review. Respondents have suggested no reason why with respect to Enforcement Counsel's contacts with other resolution of this issue now would materially advance the government agencies, do not bear extended discussion. ultimate termination of this case, or why subsequent modi- Respondents have not established that either of these rul- fication would be an inadequate remedy or cause unusual ings involved a controlling question of law, or that reversal delay or expense. Nor can the manner in which the priviof these rulings would materially advance the termination leges were asserted be considered a "controlling" question of this case. The documents relating to Laredo National of law in these enforcement proceedings. Bankshares and its subsidiaries relate solely to the factor of For these reasons, Respondents' requests for interlocu- Respondents' "good faith" that might mitigate any civil tory review of the Orders of August 12, September 10, and money penalty ultimately assessed after a hearing, September 13, 1999, are denied. 12 U.S.C. § 1818(i)(2)(G). These documents thus would So ordered, this 10th day of January, 2000. not tend to advance the termination of this case at all, since they would be irrelevant prior to the conclusion of the BOARD OF GOVERNORS OF THE hearing. Respondents' stated purpose in seeking to expand FEDERAL RESERVE SYSTEM discovery into Enforcement Counsel's contacts with other agencies is "so that Respondents may properly serve sub- JENNIFER J. JOHNSON poenas on these agencies," but the ALJ has already re- Secretary of the Board quired Enforcement Counsel to identify agencies with which Board staff had contact about the Notice of Charges, so additional discovery is unnecessary for that purpose. Nor do Respondents establish any other basis to justify FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD interlocutory review of these discovery orders. OF GOVERNORS 2. September 10 Order Charles A. Drummond Denver, Colorado With respect to the September 10 Order, Respondents challenge the ALJ's denial of access to documents pertaining to an individual who apparently provided information The Federal Reserve Board announced on January 19, to the Federal Reserve concerning Respondents and who 2000, the issuance of an Order of Assessment of a Civil may have sparked the investigation that led to the Notice of Money Penalty against Charles A. Drummond, a former Charges, but who will not be called as a witness by president, chief executive officer and director, and an Enforcement Counsel.11 Again, Respondents have failed to institution-affiliated party of the Professional Bank, establish any of the requisite factors for interlocutory re- Denver, Colorado. view on the issue of their access to this material. The question at the hearing will be whether the charges in the Notice are established by substantial evidence in the Solomon King record; thus, information bearing on that issue is of "mate- Cooper City, Florida rial relevance to the merits of the pending action" and a proper subject of discovery. 12 C.F.R. § 263.24(b). Such documents were sought and provided in connection with The Federal Reserve Board announced on January 19, Respondents' initial document request. The source of the 2000, the issuance of a Consent Order against Solomon Board's interest in Respondents' activities is simply irrele- King, an institution-affiliated party of the First Western vant to whether the charges can be sustained. [See In the Bank, Cooper City, Florida, a state member bank. Matter of Northwest Indiana Bancshares, supra; Towe v. Board of Governors, supra]. 3. September 13 Order Christopher J. Woods Elmwood Park, Illinois Finally, Respondents seek interlocutory review of the ALJ's determination in the September 13 Order that ap- The Federal Reserve Board announced on January 19, 2000, the issuance of an Order of Prohibition against 11. The documents sought included all documents that relate to any Christopher J. Woods, a former assistant vice president and communication between this individual and Board employees; all documents that relate to this individual's communications with any- institution-affiliated party of the Midwest Bank and Trust one concerning the Respondents; and this individual's personnel file. Company, Elmwood Park, Illinois. 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 A3 2 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 A3 3 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 • March 2000 INTERNATIONAL STATISTICS Reported by Nonbanking Business Enterprises in the United States Summary Statistics A58 Liabilities to unaffiliated foreigners A50 U.S. international transactions A59 Claims on unaffiliated foreigners A51 U.S. foreign trade A51 U.S. reserve assets Securities Holdings and Transactions A51 Foreign official assets held at Federal Reserve A60 Foreign transactions in securities Banks A61 Marketable U.S. Treasury bonds and A52 Selected U.S. liabilities to foreign official notes—Foreign transactions institutions Interest and Exchange Rates Reported by Banks in the United States A62 Foreign exchange rates A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A63 GUIDE TO STATISTICAL RELEASES AND A55 Banks' own claims on foreigners A56 Banks' own and domestic customers' claims on SPECIAL TABLES foreigners A56 Banks' own claims on unaffiliated foreigners A64 INDEX TO STATISTICAL TABLES A57 Claims on foreign countries—Combined domestic offices and foreign branches 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 Nonflnancial Statistics • March 2000 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999 1999 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Ql Q2 Q3 Q4 Aug. Sept. Oct. Nov. Dec. Reserves of depository institutions2 1 Total -1.2 -6.6 -15.4 -7.9 2.5 1.3 -33.3 7.5r 9.7 2 Required 1.0 -5.6 -15.0 -9.4 1.1 -.6 -33.0 2.2r 10.7 3 Nonborrowed -1.3 -6.7 -17.1 -7.4 1.6 1.5 -32.0 8.9r 7.3 4 Monetary base3 9.1 10.1 8.5 20.0 7.1 11.3 16.6 26.3 44.2 Concepts of money and debt4 5 Ml 2.8 3.5 -2.2 4.4 3.2 -9.7 5.5r 10.3r 18.4 6 M2 7.2 5.8 5.3 5.8 5.8 5.1 5.2 5.5 9.1 7 M3 7.6 5.8 5.5 10.9 4.6r 6.0 9.4r 16.8r 18.8 8 Debt 6.7 6.9r 6.0 n.a. 6.7 Iff 6.r 4.6 n.a. Nontransaction components 9 In M25 8.7 6.5 7.8 6.2 6.7 9.8 5.1 4.0 6.2 10 In M3 only6 8.7 5.8 5.9' 25.1 1.5 8.4r 21.0r 47.8r 44.3 Time and savings deposits Commercial banks 11 Savings, including MMDAs 11.6 9.7 11.7 5.1 8.0 14.5r 4.2 — 1.4r -1.2 12 Small time7 -5.5 -3.3 1.7r 7.7 4.3 8.0r 7.4r 9.8 6.9 13 Large time8,9 .0 -3.1 3.1r 43.5 - 13.6r 20.3 53.2r 65^ 60.3 Thrift institutions 14 Savings, including MMDAs 12.8 14.6 15.0 -1.7 4.2 4.5 -3.4 -6.3 -5.3 15 Small time7 -6.5 -7.1 -3.9 5.7 1.9 4.2 5.3 9.1 6.4 16 Large time8 7.6 -7.0 4.2 3.1 6.8 9.4 -8.0 12.1r 2.7 Money market mutual funds 17 Retail 20.5 10.7 6.9 11.5 9.9 8.7 9.6 11.7 23.4 18 Institution-only 17.9 14.5 7.5 25.2 22.9 6.3 25.1 37.4 36.5 Repurchase agreements and Eurodollars 19 Repurchase agreements10 14.1 -2.9 16.2 10.4 7.0 -1.2 — 12.0r 39.0 46.5 20 Eurodollars10 -.8 32.0 -7.7 4.6 -33.3 -6.0 —22.5r 62.6r 31.9 Debt components4 21 Federal -3.1 -2.3 -.3 n.a. 1.0 -4.2 -5.8 -7.7 n.a. 22 Nonfederal 9.6 9.7 1.1' n.a. 8.3 10.2 9.3r 8.0 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 1999 Oct. Nov. Dec. Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 542,985 561,178 595,910 561,722 562,828 573,544 574,556 584,129 594,424 618,787 U.S. government securities2 2 Bought outright—System account3 490,849 492,811 492,467 492,677 494,001 493,577 493,998 495,734 494,597 489,170 3 Held under repurchase agreements 428 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 206 183 181 181 181 181 181 181 181 181 5 Held under repurchase agreements 1,916 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 14,248 33,382 68,012 33,669 35,095 46,103 45,754 53,343 64,415 93,154 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 35 172 160 435 69 59 21 167 83 361 9 Seasonal credit 224 65 69 59 59 65 61 60 80 78 10 Special Liquidity Facility credit 3 12 74 4 6 8 10 43 25 223 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 482 416 762 415 329 201 1,222 648 615 635 13 Other Federal Reserve assets 34,594 34,138 34,186 34,28 lr 33,088 33,350 33,310 33,952 34,429 34,984 14 Gold stock 11,050 11,049 11,048 11,049 11,049 11,049 11,048 11,049 11,049 11,048 15 Special drawing rights certificate account 7,200 7,200 6,652 7,200 7,200 7,200 7,200 7,057 6,200 6,200 16 Treasury currency outstanding 27,546 27,747 27,928 27,739 27,785 27,831 27,872 27,908 27,943 27,978 ABSORBING RESERVE FUNDS 17 Currency in circulation .. . . 550,941 569,656 601,159 568,348 573,274 580,664 585,216 592,106 602,552 619,311 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 94 93 110 95 95 89 112 108 109 109 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,179 5,055 8,250 4,726 5,340 5,107 4,800 5,273 6,206 12,138 21 Foreign 182 213 136 264 203 211 186 214 58 99 22 Service-related balances and adjustments . . 7,165 7,176 7,513 7,085 7,162 7,294 7,093 7,338 7,770 7,783 23 Other 278 252 248 256 255 245 224 222 213 195 2 2 4 5 O Re th se er r v F e e b d a e l r a a n l c R es e s w er i v th e F li e a d b e il r i a t l i es R e a s n e d rv e c a B pi a ta n l k s; , t 1 6 8 , , 5 3 8 6 0 2 1 6 8 , , 3 3 4 8 6 4 1 5 8 , , 6 5 1 0 6 5 1 8 8 , , 5 3 6 6 8 9 1 4 8 , , 0 4 9 37 5 r 1 7 8 , , 6 3 2 9 1 3 1 4 8 , , 7 3 0 4 1 5 1 6 8 , , 2 6 3 4 8 3 1 4 8 , , 0 6 4 6 4 3 1 5 8 , , 7 6 5 2 2 5 End-of-month figures Wednesday figures Sept. Oct. Nov. Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 548,919 575,843 653,561 564,024 570,798 576,255 578,314 592,187 603,648 644,631 U.S. government securities 2 Bought outright—System account3 490,738 492,910 477,963 493,096 494,529 493,474 494,744 494,927 494,391 483,417 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 188 181 181 181 181 181 181 181 181 181 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 22,560 49,440 140,640 35,320 41,455 49,505 47,025 60,665 73,085 122,870 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 41 8 140 2,115 299 8 32 1,010 112 1,609 9 Seasonal credit 123 65 47 64 64 70 55 72 78 76 10 Special Liquidity Facility credit 10 5 47 5 9 7 11 236 28 1,187 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float -297 122 -237 570 939 15 2,666 809 1,088 113 13 Other Federal Reserve assets 35,556 33,111 34,781 32,672r 33,321 32,995 33,600 34,287 34,685 35,178 14 Gold stock 11,049 11,049 11,048 11,049 11,049 11,048 11,048 11,049 11,048 11,048 15 Special drawing rights certificate account 7,200 7,200 6,200 7,200 7,200 7,200 7,200 6,200 6,200 6,200 16 Treasury currency outstanding 27,636 27,831 28,013 27,739 27,785 27,831 27,872 27,908 27,943 27,978 ABSORBING RESERVE FUNDS 17 Currency in circulation .. . . 555,720 583,103 628,359 571,300 578,777 584,020 589,133 597,616 611,834 628,587 18 Reverse repurchase agreements—triparty . .. 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 94 85 109 97 85 113 108 109 109 109 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 4,527 5,025 28,402 5,228 4,525 5,082 5,127 7,777 4,741 25,923 21 Foreign 189 501 71 171 171 162 178 496 88 234 22 Service-related balances and adjustments .. 7,276 7,294 7,866 7,085 7,162 7,294 7,093 7,338 7,770 7,783 23 Other 202 221 1,261 247 253 236 214 224 210 183 24 Other Federal Reserve liabilities and capital . 18,401 18,618 17,256 18,141 18,196 17,992 18,142 18,347 18,372 18,284 25 Reserve balances with Federal Reserve Banks' 8,395 7,076r 15,498 7,743 7,662 7,435 4,440 5,437 5,715 8,753 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float. under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A6 Domestic Nonflnancial Statistics • March 2000 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1997 1998 1999 1999 Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec. 1 Reserve balances with Reserve Banks2 10,664 9,021 5,259 8,539 7,797 7,802 7,698 6,768 6,285 5,259 2 Total vault cash3 44,740 44,305 60,478 42,632 44,059 44,664 44,519 47,017r 50,735 60,478 3 Applied vault cash4 37,255 35,997 36,396 33,856 34,005 34,069 34,089 33,933 34,660 36,396 4 Surplus vault cash5 7,485 8,308 24,082 8,776 10,054 10,595 10,430 13,084r 16,076 24,082 Total reserves6 47,920 45,018 41,656 42,394 41,802 41,871 41,787 40,702 40,944 41,656 6 Required reserves 46,235 43,435 40,344 41,133 40,726 40,742 40,590 39,549 39,610 40,344 7 Excess reserve balances at Reserve Banks7 1,685 1,583 1,311 1,261 1,076 1,129 1,197 1,153 1,334 1,311 8 Total borrowing at Reserve Banks 324 117 320 145 309 344 338 281 236 320 9 Adjustment 245 101 179 18 83 72 56 52 157 179 10 Seasonal 79 15 67 127 226 271 282 221 71 67 11 Special Liquidity Facility8 74 0 8 7 74 12 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 2000 Sept. 8 Sept. 22 Oct. 6 Oct. 20 Nov. 3 Nov. 17 Dec. lr Dec. 15 Dec. 29 Jan. 12 1 Reserve balances with Reserve Banks2 8,470 7,440 7,380 6,544 6,721 6,524 5,927 5,434 4,887 6,309 2 Total vault cash3 43,774 44,556 45,199 47,350 47,586r 49,503r 52,790 56,674 63,636 68,849 3 Applied vault cash4 34,126 34,327 33,636 33,998 34,014 34,046 35,470 35,346 37,321 37,741 4 Surplus vault cash5 9,648 10,229 11,563 13,352 13,572r 15,457r 17,320 21,329 26,315 31,108 5 Total reserves6 42,596 41,766 41,016 40,542 40,735 40,569 41,397 40,780 42,208 44,050 6 Required reserves 41,388 40,744 39,524 39,408 39,742 39,196 40,027 39,682 40,947 40,926 7 Excess reserve balances at Reserve Banks7 1,207 1,022 1,491 1,133 993 1,373 1,370 1,098 1,261 3,124 8 Total borrowing at Reserve Banks 318 323 385 265 246 329 133 181 425 657 9 Adjustment 35 48 91 21 72 263 64 94 222 530 10 Seasonal 284 276 294 244 153 62 62 61 79 38 11 Special Liquidity Facility8 1 1 22 5 7 27 124 90 12 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 8. Borrowing at the discount window under the terms and conditions established for the those banks and thrift institutions that are not exempt from reserve requirements. Dates refer Century Date Change Special Liquidity Facility in effect from October 1, 1999 through to the maintenance periods in which the vault cash can be used to satisfy reserve require- April 7, 2000. ments. 9. Consists of borrowing at the discount window under the terms and conditions estab- 4. All vault cash held during the lagged computation period by "bound" institutions (that lished for the extended credit program to help depository institutions deal with sustained is, those whose required reserves exceed their vault cash) plus the amount of vault cash liquidity pressures. Because there is not the same need to repay such borrowing promptly as applied during the maintenance period by "nonbound" institutions (that is, those whose vault with traditional short-term adjustment credit, the money market effect of extended credit is cash exceeds their required reserves) to satisfy current reserve requirements. similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit Extended credit3 Special Liquidity Facility credit Federal Reserve Bank On Effective Previous On Effective Previous On Effective Previous On Effective 2/4/00 date rate 2/4/00 date rate 2/4/00 date rate 2/4/00 date Boston 2/2/00 6.25 New York . .. 2/2/00 Philadelphia . 2/2/00 Cleveland . . . 2/2/00 Richmond . . . 2/2/00 Atlanta 2/2/00 Chicago 2/2/00 St. Louis 2/2/00 Minneapolis . 2/3/00 Kansas City . . 2/2/00 Dallas 2/4/00 San Francisco 2/2/00 Range of rates for adjustment credit in recent years3 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank Effective date level)—All of Effective date level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1977 1982—Oct. 12 9.5-10 9.5 1994—May 17 3-3.5 3.5 13 9.5 9.5 18 3.5 3.5 1978—Jan. 9 6-6.5 6.5 Nov. 22 9-9.5 9 Aug. 16 3.5-4 4 20 6.5 6.5 26 9 9 18 4 4 May 11 6.5-7 7 Dec. 14 8.5-9 9 Nov. 15 4-4.75 4.75 12 7 7 15 8.5-9 8.5 17 4.75 4.75 July 3 7-7.25 7.25 17 8.5 8.5 10 7.25 7.25 1995—Feb. 1 4.75-5.25 5.25 Aug. 21 7.75 7.75 1984—Apr. 9 8.5-9 9 9 5.25 5.25 Sept. 22 8 8 13 9 9 Oct. 16 8-8.5 8.5 Nov. 21 8.5-9 8.5 1996—Jan. 31 5.00-5.25 5.00 20 8.5 8.5 26 8.5 8.5 Feb. 5 5.00 5.00 Nov. 1 8.5-9.5 9.5 Dec. 24 8 8 3 9.5 9.5 1998—Oct. 15 4.75-5.00 4.75 1985—May 20 7.5-8 7.5 16 4.75 4.75 1979—July 20 10 10 24 7.5 7.5 Nov. 17 4.50-4.75 4.50 Aug. 17 10-10.5 10.5 19 4.50 4.50 20 10.5 10.5 1986—Mar. 7 7-7.5 7 Sept. 19 10.5-11 11 10 7 7 1999—Aug. 24 4.50-4.75 4.75 21 11 11 Apr. 21 6.5-7 6.5 26 4.75 4.75 Oct. 8 11-12 12 23. 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 12 12 July 11 6 6 18 5.00 5.00 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 13 22 5.5 5.5 2000—Feb. 2 5.00-5.25 5.25 19 13 13 4 5.25 5.25 May 29 12-13 13 1987—Sept. 4 5.5-6 6 30 12 12 11 6 6 In effect Feb. 4, 2000 5.25 5.25 June 13 11-12 11 16 11 11 1988—Aug. 9 6-6.5 6.5 July 28 10-11 10 11 6.5 6.5 29 10 10 Sept. 26 11 11 1989—Feb. 24 6.5-7 7 Nov. 17 12 12 27 7 7 Dec. 5 12-13 13 8 13 13 1990—Dec. 19 6.5 6.5 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 14 14 4 6 6 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 6 13 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-11.5 11 Dec. 20 3.5^.5 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 30 10 10 7 3 3 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 Nonflnancial Statistics • March 2000 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of deposits Effective date Net transaction accounts2 1 $0 million-$44.3 million3 33333 1111122222/////3333300000/////9999999999 2 More than $44.3 million4 1111100000 1111122222/////3333300000/////9999999999 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 30, 1999, for depository institutions that report include commercial banks, savings banks, savings and loan associations, credit unions, weekly, and with the period beginning January 20, 2000, for institutions that report quarterly, agencies and branches of foreign banks, and Edge Act corporations. the exemption was raised from $4.9 million to $5.0 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 x/i years was reduced from 3 percent to 1 '/'2 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 '/2 years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 1 x/i 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 30, 1999, 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 20, 2000, 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 $46.5 million to $44.3 million. deposits with an original maturity of less than 1 xfi 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 TTyyppee ooff ttrraannssaaccttiioonn 11999966 11999977 11999988 aanndd mmaattuurriittyy May June July Aug. Sept. Oct. Nov. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,901 9,147 3,550 0 0 00 00 00 00 00 ? Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 426,928 436,257 450,835 37,107 35,045 42,037 37,052 42,643 35,844 36,882 4 For new bills 426,928 435,907 450,835 37,107 35,045 42,037 37,052 42,643 35,844 36,882 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 1,421 880 951 429 960 0 996644 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 30,512 41,716 46,062 3,768 2,740 3,279 7,669 3,468 3,831 6,675 9 Exchanges -41,394 -27,499 -49,434 -4,607 -5,540 -368 -10,798 -2,125 -368 -10,150 10 Redemptions 2,015 1,996 2,676 0 0 41 0 0 170 0 One to five years 11 Gross purchases 3,898 20,080 12,901 4,442 948 0 1,272 00 00 11,,001144 1? Gross sales 0 0 0 0 0 0 0 0 0 0 N Maturity shifts -25,022 —37,987 -37,777 -3,768 -2,740 -3,279 -4,751 -3,468 -3,831 -3,685 14 Exchanges 31,459 20,274 37,154 2,562 5,540 0 8,433 2,125 0 8,015 Five to ten years 15 Gross purchases 1,116 3,449 2,294 1,584 65 0 447 00 00 00 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,469 -1,954 -5,908 0 0 0 -2,918 0 0 -2,273 18 Exchanges 6,666 5,215 7,439 2,045 0 373 1,290 0 0 2,135 More than ten years 19 Gross purchases 1,655 5,897 4,884 2,890 0 0 1,075 00 00 992255 70 Gross sales 0 0 0 0 0 0 0 0 0 0 71 Maturity shifts -20 -1,775 -2,377 0 0 0 0 0 0 -717 22 Exchanges 3,270 2,360 4,842 0 0 0 1,075 0 374 0 All maturities 23 Gross purchases 17,094 44,122 29,926 10,337 1,893 951 3,223 996600 0 22,,990033 74 Gross sales 0 0 0 0 0 0 0 00 0 0 25 Redemptions 2,015 1,996 4,676 0 0 41 0 0 170 0 Matched transactions 76 Gross purchases 3,092,399 3,577,954 4,395,430 356,960 380,872 347,067 374,032 348,014 332,708 331177,,553377 27 Gross sales 3,094,769 3,580,274 4,399,330 358,362 380,464 346,747 373,159 350,151 330,856 318,294 Repurchase agreements 78 Gross purchases 457,568 810,485 512,671 27,605 17,710 27,707 2233,,009977 2299,,336699 110000 00 29 Gross sales 450,359 809,268 514,186 30,531 14,614 33,612 23,717 24,337 7,707 0 30 Net change in U.S. Treasury securities 19,919 41,022 19,835 6,008 5,397 -4,675 3,476 3,855 -5,924 2,146 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 00 00 00 00 00 3? Gross sales 0 0 25 0 0 0 0 0 0 0 33 Redemptions 409 1,540 322 0 52 10 11 0 50 7 Repurchase agreements 34 75,354 160,409 284,316 38,167 3322,,778866 4466,,994411 6611,,996688 5533,,222244 99,,663366 00 35 Gross sales 74,842 159,369 276,266 36,962 32,104 48,840 56,053 47,963 24,092 0 36 Net change in federal agency obligations 103 -500 7,703 1,205 630 -1,909 5,904 5,261 -14,506 -7 Reverse repurchase agreements 37 Gross purchases 0 0 0 00 00 00 00 00 00 00 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 0 0 00 00 00 00 00 6688,,006611 8811,,335500 40 Gross sales 0 0 0 0 0 0 0 0 45,501 54,470 41 Net change in triparty obligations 0 0 0 0 0 0 0 0 22,560 26,880 42 Total net change in System Open Market Account. . . 20,021 40,522 27,538 7,213 6,028 -6,584 9,380 9,116 2,130 29,019 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 Nonflnancial Statistics • March 2000 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1999 1999 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Oct. 31 Nov. 30 Dec. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,048 11,048 11,049 11,048 11,048 11,049 11,049 11,048 2 Special drawing rights certificate account 7,200 7,200 6,200 6,200 6,200 7,200 7,200 6,200 3 230 228 231 238 203 331 237 207 Loans 4 To depository institutions 85 98 1,319 218 2,872 173 78 233 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Triparty Obligations 7 Repurchase agreements—triparty2 49,505 47,025 60,665 73,085 122,870 22,560 49,440 140,640 Federal agency obligationsJ 8 Bought outright 181 181 181 181 181 118888 181 118811 y Held under repurchase agreements 0 0 0 0 0 00 0 0 10 Total U.S. Treasury securities3 493,474 494,744 494,927 494,391 483,417 490,738 492,910 477,963 n Bought outright4 493,474 494,744 494,927 494,391 483,417 490,738 492,910 477,963 i? Bills 198,841 199,233 197,194 193,834 181,973 199,035 198,278 176,517 13 213,271 213,273 214,756 217,580 218,466 211,273 213,270 218,467 14 Bonds 81,362 82,238 82,977 82,977 82,978 80,430 81,362 82,978 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 543,245 542,048 557,092 567,876 609,340 513,659 542,609 619,017 17 Items in process of collection 8,038 8,958 8,925 8,896 6,925 4,726 9,245 6,524 18 Bank premises 1,353 1,354 1,355 1,356 1,356 1,344 1,353 1,365 Other assets 19 Denominated in foreign currencies5 16,191 16,195 16,199 16,203 16,176 16,251 16,292 16,140 20 All other6 15,361 15,886 16,594 17,139 17,657 17,678 15,297 17,294 21 Total assets 602,666 602,917 617,645 628,957 668,906 572,239 603,282 677,795 LIABILITIES ?.?, Federal Reserve notes 556,532 561,596 570,047 584,238 600,921 528,509 555,595 600,662 23 Reverse repurchase agreements—triparty2 0 0 0 , 0 0 0 0 0 24 Total deposits 20,420 15,709 21,323 18,366 43,069 20,420 20,517 53,760 25 Depository institutions 14,939 10,189 12,827 13,327 16,729 15,502 14,771 24,027 2.6 U.S. Treasury—General account 5,082 5,127 7,777 4,741 25,923 4,527 5,025 28,402 27 Foreign—Official accounts 162 178 496 88 234 189 501 71 28 Other 236 214 224 210 183 202 221 1,261 29 Deferred credit items 7,722 7,469 7,927 7,980 6,632 4,909 8,552 6,117 30 Other liabilities and accrued dividends7 4,457 4,457 4,616 4,605 4,478 4,455 4,600 4,392 31 Total liabilities 589,131 589,232 603,914 615,190 655,099 558,293 589,265 664,931 CAPITAL ACCOUNTS 3? Capital paid in 6,374 6,412 6,398 6,425 6,432 6,355 6,372 6,432 33 Surplus 5,952 5,952 5,952 5,952 5,952 5,952 5,952 6,432 34 Other capital accounts 1,209 1,320 1,381 1,390 1,422 1,639 1,694 0 35 Total liabilities and capital accounts 602,666 602,917 617,645 628,957 668,906 572,239 603,282 677,795 MEMO 36 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 37 Federal Reserve notes outstanding (issued to Banks) 825,329 824,756 824,510 823,577 822,441 827,249 825,379 821,959 38 LESS: Held by Federal Reserve Banks 268,797 263,160 254,463 239,339 221,520 298,740 269,785 221,297 39 Federal Reserve notes, net 556,532 561,596 570,047 584,238 600,921 528,509 555,595 600,662 Collateral held against notes, net 40 Gold certificate account 11,048 11,048 11,049 11,048 11,048 11,049 11,049 11,048 41 Special drawing rights certificate account 7,200 7,200 6,200 6,200 6,200 7,200 7,200 6,200 4? Other eligible assets 0 1,398 0 0 0 0 0 0 43 U.S. Treasury and agency securities 538,284 541,950 552,799 566,990 583,673 510,261 537,346 583,414 44 Total collateral 556,532 561,596 570,047 584,238 600,921 528,509 555,595 600,662 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 5. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Cash value of agreements arranged through third-party custodial banks. bills maturing within ninety days. 3. Face value of the securities. 7. Includes exchange-translation account reflecting the monthly revaluation at market 4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with exchange rates of foreign exchange commitments. Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Oct. 31 Nov. 30 Dec. 31 1 Total Joans 85 98 1,319 218 2,872 173 78 233 2 Within fifteen days1 27 52 1,039 204 2,851 106 46 207 3. Sixteen days to ninety days 56 43 51 7 10 66 31 20 4. 91 days to 1 year 2 3 229 8 11 7 5 Total U.S. Treasury securities2 493,474 494,744 494,927 494,391 483,417 490,738 492,910 477,963 6 Within fifteen days1 11,438 15,145 10,891 12,871 15,634 7,085 8,277 4,632 7 Sixteen days to ninety days 103,422 105,402 102,817 97,667 83,448 105,645 102,802 91,919 8 Ninety-one days to one year 140,670 135,375 140,175 141,435 141,030 141,442 143,889 139,866 9 One year to five years 122,414 122,414 123,671 125,044 125,929 121,201 122,413 124,169 10 Five years to ten years 50,520 50,521 51,104 51,105 51,106 50,212 50,520 51,107 11 More than ten years 65,010 65,886 66,269 66,269 66,270 65,153 65,010 66,270 12 Total federal agency obligations 181 181 181 181 181 188 181 181 13 Within fifteen days' 0 0 0 0 0 7 0 0 14 Sixteen days to ninety days 31 31 31 31 31 6 31 31 15 Ninety-one days to one year 20 20 20 20 20 45 20 20 16 One year to five years 10 10 10 10 10 10 10 10 17 Five years to ten years 120 120 120 120 120 120 120 120 18 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 Nonflnancial Statistics • March 2000 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 1996 1997 1998 1999 IItteemm Dec. Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov.r Dec. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 1 Total reserves3 50.16 46.86 44.90 41.53 44.36 42.87 41.98 42.07 42.11 40.94 41.20 41.53 2 Nonborrowed reserves4 50.01 46.54 44.79 41.21 44.23 42.72 41.67 41.72 41.77 40.66 40.96 41.21 3 Nonborrowed reserves plus extended credit5 50.01 46.54 44.79 41.21 44.23 42.72 41.67 41.72 41.77 40.66 40.96 41.21 4 Required reserves 48.75 45.18 43.32 40.22 43.11 41.61 40.90 40.94 40.92 39.79 39.86 40.22 5 Monetary base6 451.37 478.88 512.32 590.32 534.86 537.63 541.20 544.42 549.56 557.15r 569.35 590.32 Not seasonally adjusted 6 Total reserves 51.45 48.01 45.12 41.73 44.91 42.43 41.85 41.92 41.85 40.77 41.02 41.73 7 Nonborrowed reserves 51.30 47.69 45.00 41.41 44.78 42.29 41.54 41.58 41.51 40.49 40.78 41.41 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.00 41.41 44.78 42.29 41.54 41.58 41.51 40.49 40.78 41.41 9 Required reserves8 50.04 46.33 43.54 40.42 43.65 41.17 40.77 40.79 40.65 39.62 39.68 40.42 10 Monetary base9 456.63 484.98 518.28 600.29 533.12 535.88 540.98 543.87 548.13 555.51 571.82 600.29 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 51.17 47.92 45.02 41.66 44.88 •42.39 41.80 41.87 41.79 40.70 40.94 41.66 12 Nonborrowed reserves 51.02 47.60 44.90 41.34 44.75 42.25 41.49 41.53 41.45 40.42 40.71 41.34 13 Nonborrowed reserves plus extended credit5 51.02 47.60 44.90 41.34 44.75 42.25 41.49 41.53 41.45 40.42 40.71 41.34 14 Required reserves 49.76 46.24 43.44 40.34 43.62 41.13 40.73 40.74 40.59 39.55 39.61 40.34 15 Monetary base12 463.40 491.79 525.06 607.76 539.98 542.82 548.07 550.86 555.19 562.64 578.94 607.76 16 Excess reserves13 1.42 1.69 1.58 1.31 1.26 1.26 1.08 1.13 1.20 1.15 1.33 1.31 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .13 .15 .31 .34 .34 .28 .24 .32 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 11999966 11999977 11999988 11999999 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Sept. Oct. Nov. Dec. Seasonally adjusted Measures2 1 Ml 1,081.6 1,075.2 1,093.7 1,125.4 1,094.0 ll,,009999..00rr ll,,110088..44rr 1,125.4 ? M2 3,824.2 4,046.7 4,401.4 4,662.6 4,586.5 4,606.4 4,627.4r 4,662.6 3 M3 4,955.8 5,403.4 5,995.7 6,484.7 6,247.4r 6,296.3r 6,384.6r 6,484.7 4 Debt 14,463.6 15,227.9 16,250.4 n.a. 17,066.8r 17,152.9r 17,218.9 n.a. MI components 5 Currency3 394.1 424.5 459.2 516.9 495.0 499.2 550055..22 551166..99 6 Travelers checks4 8.3 8.1 8.2 8.2 8.7 8.5 8.2 8.2 7 Demand deposits5 403.0 396.5 377.5 358.8 352.9 354.5r 357.2r 358.8 8 Other checkable deposits6 276.2 246.2 248.8 241.4 237.4 236.8 237.7 241.4 Nontransaction components 9 In M27 2,742.6 2,971.5 3,307.6 3,537.1 3,492.5 3,507.3 33,,551199..00rr 3,537.1 10 In M3 only8 1,131.6 1,356.7 1,594.3 1,822.1 l,660.9r l,689.9r l,757.2r 1,822.1 Commercial banks 11 Savings deposits, including MMDAs 905.2 1,022.9 1,189.8 1,286.2 l,284.5r ll,,228899..00rr 1,287.5 1,286.2 17 Small time deposits9 593.7 626.1 626.0 632.1 619.6r 623.4 628.5 632.1 13 Large time deposits10' 11 414.7 489.9 540.4 625.4 540.9r 564.9r 595.5r 625.4 Thrift institutions 14 Savings deposits, including MMDAs 367.1 377.3 415.2 452.6 458.3 457.0 445544..66 452.6 15 Small time deposits9 353.8 343.2 325.9 320.2 314.7 316.1 318.5 320.2 16 Large time deposits10 78.4 85.9 89.1 90.4 89.9 89.3 90.2r 90.4 Money market mutual funds 17 522.8 602.0 750.7 846.1 815.4 821.9 829.9 884466..11 18 Institution-only 313.3 379.9 516.2 606.7 559.3 571.0 588.8 606.7 Repurchase agreements and Eurodollars 19 Repurchase agreements12 211.3 251.7 297.8 329.6 310.4 330077..33rr 331177..33rr 332299..66 20 Eurodollars12 113.9 149.3 150.7 169.9 160.3 157.3r 165.5r 169.9 Debt components 71 Federal debt 3,781.3 3,800.3 3,750.8 n.a. 3,698.1 33,,668800..11 33,,665566..55 n.a. 22 Nonfederal debt 10,682.3 11,427.6 12,499.6 n.a. 13,368.8r 13,472.7r 13,562.3 n.a. Not seasonally adjusted Measures2 23 Ml 1,105.1 1,097.8 1,115.7 1,147.9 1,088.6 l,096.3r 1,112.7r 1,147.9 24 M2 3,844.0 4,064.9 4,418.2 4,679.4 4,572.2 4,590.9 4,626.3r 4,679.4 25 M3 4,972.7 5,419.6 6,011.8 6,501.7 6,219.2r 6,279.3r 6,389.6r 6,501.7 26 Debt 14,460.3 15,224.9 16,247.2 n.a. 17,016.9r 17,102.1r 17,198.0 n.a. Ml components 27 Currency3 397.9 428.9 464.2 523.1 493.4 499.0 506.4 523.1 28 Travelers checks4 8.6 8.3 8.4 8.4 8.5 8.4 8.3 8.4 29 Demand deposits5 419.9 412.3 392.4 373.1 350.9r 353.9r 361.0r 373.1 30 Other checkable J--™-6 278.8 248.3 250.7 243.3 235.7 234.9 237.1 243.3 Nontransae tion 31 In M27 2,738.9 2,967.2 3,302.5 3,531.5 3,483.6 3,494.6 3,513.6 3,531.5 32 In M3 only8 1,128.7 1,354.7 1,593.6 1,822.3 1,647.0r l,688.4r l,763.2r 1,822.3 Commercial banks 33 Savings deposits, including MMDAs . . 903.3 1,020.4 1,186.8 1,282.8 1,277.5 1,279.5 1,283.4 1,282.8 34 Small time deposits9 592.7 625.3 625.4 631.5 619.3 624.2 628.9 631.5 35 Large time deposits10' 11 413.2 487.3 536.8 620.7 541.3r 567.8r 597.4r 620.7 Thrift institutions 36 Savings deposits, including MMDAs . . 366.3 376.4 414.1 451.4 455.8 453.6 453.2 451.4 37 Small time deposits9 353.2 342.8 325.6 319.9 314.5 316.5 318.7 319.9 38 Large time deposits10 78.1 85.4 88.5 89.7 90.0 89.8 90.4 89.7 Money market mutual funds 39 Retail 523.2 602.3 750.6 845.8 816.4 820.7 829.4 845.8 40 Institution-only 316.0 384.5 523.3 615.2 547.5 566.7 591.0 615.2 Repurchase agreements and Eurodollars 41 Repurchase agreements'2 205.7 245.1 290.5 322.1 309.1 305.9r 318.2r 322.1 42 Eurodollars12 115.7 152.3 154.5 174.6 159.1 158.T 166.3r 174.6 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 n.a. 3,655.8 3,635.4 3,641.4 n.a. 44 Nonfederal debt 10,672.4 11,419.2 12,492.3 n.a. 13,361.0 13,466.7r 13,556.6 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A14 Domestic Nonflnancial Statistics • March 2000 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. AH 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 1999r 1999 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Seasonally adjusted Assets 1 Bank credit 4,548.8r 4,553.8 4,549.7 4,582.9 4,607.6 4,636.5 4,704.0 4,782.8 4,754.8 4,784.8 4,803.1 4,796.7 Securities in bank credit 1,226.5 1,211.7 1,227.0 1,242.4 1,246.6 1,253.5 1,249.2 1,267.6 1,260.0 1,264.4 1,272.4 1,277.3 U.S. government securities 793.21 811.2 814.4 820.1 817.6 812.6 798.8 803.7 798.4 803.5 805.2 809.5 4 Other securities 433.4 400.5 412.7 422.3 428.9 440.9 450.4 463.9 461.6 460.8 467.2 467.8 Loans and leases in bank credit2 .. . 3,322.2 3,342.1 3,322.7 3,340.5 3,361.1 3,383.0 3,454.8 3,515.1 3,494.8 3,520.5 3,530.7 3,519.3 6 Commercial and industrial 952.6r 963.4 965.3 972.7 980.8 986.1 1,005.8 1,008.1 1,012.0 1,009.8 1,007.7 1,005.5 7 Real estate l,338.1r 1,366.2 1,367.7 1,379.9 1,396.5 1,419.0 1,433.6 1,471.6 1,464.8 1,469.1 1,475.8 1,477.1 8 Revolving home equity 102.4 103.8 98.0 98.7 98.4 99.0 100.6 106.1 104.2 105.8 106.9 107.4 9 Other l,235.7r 1,262.4 1,269.6 1,281.3 1,298.1 1,320.1 1,333.0 1,365.5 1,360.5 1,363.3 1,368.9 1,369.7 in Consumer 497.8 491.1 481.2 480.1 481.0 481.5 485.1 495.6 489.3 494.9 498.3 499.7 n Security3 150.7 131.0 122.4 122.4 116.2 111.0 134.0 155.3 148.2 161.3 161.8 153.4 i? Other loans and leases 383.0 390.5 386.2 385.3 386.6 385.4 396.3 384.5 380.5 385.3 387.1 383.7 n Interbank loans 217.6 224.8 224.3 215.0 207.8 218.6 214.3 218.3 212.5 221.6 216.9 225.5 14 Cash assets4 252.7 260.7 257.8 252.4 262.5 269.7 276.3 290.6 298.7 283.4 304.4 280.4 15 Other assets5 341.8 345.7 347.2 344.9 355.4 358.1 365.9 370.7 373.2 369.8 373.5 364.7 16 Total assets6 5,302.9 53263 5320.9 5336.6 5374.2 5,423.6 5301.0 5,6023 5379.4 5399.6 5,637.7 5,607.1 Liabilities 17 Deposits 3,338.3 3,377.2 3,389.8 3,384.3 3,394.9 3,435.0 3,479.9 3,531.7 3,523.5 3,548.0 3,551.8 3,505.3 18 Transaction 671.6 655.7 648.6 635.9 634.0 631.1 623.9 631.7 627.6 632.8 653.2 624.5 19 Nontransaction 2,666.7 2,721.5 2,741.2 2,748.4 2,760.9 2,803.9 2,855.9 2,900.0 2,896.0 2,915.2 2,898.6 2,880.9 ?0 Large time 717.4 718.8 721.1 717.9 728.3 766.8 804.6 834.7 825.9 837.4 837.0 835.6 ?1 Other 1,949.3 2,002.7 2,020.2 2,030.4 2,032.6 2,037.1 2,051.3 2,065.3 2,070.1 2,077.7 2,061.6 2,045.2 77 Borrowings 1,021.7 1,017.9 1,019.4 1,026.3 1,045.7 1,048.9 1,064.1 1,125.1 1,088.5 1,118.4 1,131.7 1,164.4 73 From banks in the U.S 319.6 336.5 337.1 336.5 340.5 350.1 352.1 349.2 340.2 343.3 342.9 367.0 74 From others 702.0 681.4 682.3 689.8 705.2 698.8 712.0 775.9 748.2 775.1 788.8 797.5 75 Net due to related foreign offices 213.9 210.2 217.0 222.5 218.3 219.6 226.1 218.4 220.1 217.7 220.7 218.1 26 Other liabilities 306.9 279.6 273.7 279.7 282.6 289.9 295.7 299.0 300.4 290.5 303.7 301.7 27 Total liabilities 4,880.7 4,884.9 4,899.9 4,912.7 4,941.5 4,993.4 5,065.7 5,174.2 5,1323 5,174.6 5,207.9 5,189.5 28 Residual (assets less liabilities)7 422.2 441.4 420.9 423.9 432.7 430.2 435.3 428.2 446.9 425.0 429.8 417.6 Not seasonally adjusted Assets 79 Bank credit 4,564.1 4,547.6 4,533.7 4,561.9 4,597.7 4,641.1 4,718.1 4,799.1 4,758.5 4,799.9 4,821.0 4,823.5 30 Securities in bank credit l,228.3r 1,208.4 1,215.9 1,229.5 1,235.4 1,250.1 1,255.7 1,271.7 1,267.4 1,269.3 1,273.7 1,278.4 31 U.S. government securities 794.0 810.7 806.5 808.3 807.5 807.0 800.9 805.0 803.6 806.4 804.6 806.9 37 Other securities 434.3 397.7 409.4 421.2 428.0 443.1 454.7 466.6 463.9 463.0 469.1 471.5 33 Loans and leases in bank credit2 . .. 3,335.8 3,339.2 3,317.8 3,332.4 3,362.3 3,391.0 3,462.4 3,527.4 3,491.1 3,530.6 3,547.3 3,545.0 34 Commercial and industrial 952.6r 963.6 962.9 964.1 976.8 987.2 1,005.8 1,007.2 1,004.8 1,005.8 1,008.9 1,010.8 35 Real estate l,340.1r 1,366.7 1,368.7 1,382.5 1,400.1 1,422.7 1,438.3 1,474.1 1,469.3 1,472.5 1,476.1 1,479.6 36 Revolving home equity 102.8 103.4 97.9 98.8 99.1 99.7 101.4 106.5 104.7 106.2 107.3 107.9 37 Other l,237.3r 1,263.3 1,270.8 1,283.7 1,301.0 1,323.0 1,336.9 1,367.6 1,364.6 1,366.3 1,368.8 1.371.7 38 Consumer 503.1 488.4 478.8 481.3 484.0 482.2 485.3 500.6 489.8 498.1 505.7 508.4 39 Security3 152.8 130.4 120.4 118.7 112.8 111.9 135.4 157.4 148.3 166.5 165.5 154.0 40 Other loans and leases 387.3 390.1 387.1 385.8 388.5 387.1 397.5 388.2 378.9 387.7 391.1 392.2 41 Interbank loans 225.8 222.1 218.1 207.3 204.3 215.1 220.9 224.8 220.5 231.4 220.3 229.6 47 Cash assets4 267.8 256.2 250.0 242.0 259.8 270.0 283.5 307.3 290.5 301.4 315.1 323.1 43 Other assets5 342.6 351.6 349.9 347.7 357.4 355.5 364.5 371.6 371.9 371.0 371.7 370.5 44 Total assets6 5,342.5r 5,318.7 5,293-5 5300.1 5359.9 5,422.4 5327.2 5,642.6 5381.4 5,643.6 5,667.9 5,686.6 Liabilities 45 Deposits 3,372.1 3,375.2 3,373.5 3,370.4 3,393.5 3,437.5 3,506.2 3,564.1 3,541.4 3,582.2 3,568.9 3,561.7 46 Transaction 705.8 650.8 637.9 619.6 628.2 622.9 633.6 664.3 630.9 664.7 677.0 691.8 47 Nontransaction 2,666.3 2,724.4 2,735.6 2,750.8 2,765.3 2,814.7 2,872.6 2,899.8 2,910.5 2,917.6 2,891.9 2,869.9 48 Large time 722.0 716.1 714.4 715.3 729.7 768.4 809.8 840.5 833.7 844.3 843.4 839.9 49 Other 1,944.3 2,008.3 2,021.3 2,035.5 2,035.5 2,046.3 2,062.8 2,059.3 2,076.8 2,073.2 2,048.6 2,030.1 50 Borrowings 1,024.2 1,021.5 1,010.1 1,002.8 1,040.6 1,051.7 1,071.0 1,127.7 1,077.2 1,118.7 1,146.3 1,171.1 51 From banks in the U.S 325.5 336.4 332.5 329.3 336.8 347.8 356.5 355.7 343.7 349.1 353.3 374.1 57 From others 698.6 685.1 677.6 673.5 703.8 703.9 714.5 772.1 733.5 769.6 793.0 797.0 53 Net due to related foreign offices .... 219.1 204.4 209.2 217.4 214.3 221.3 227.8 223.9 224.9 221.3 225.2 231.4 54 Other liabilities 307.6 279.0 272.9 279.6 281.6 288.4 295.9 299.8 301.4 291.6 303.8 302.7 55 Total liabilities 4,922.9 4,880.1 4,865.7 4,870.2 4,929.9 4,998.9 5,100.9 5,215.6 5,144.9 5,213.7 5,244.2 5,266.9 56 Residual (assets less liabilities)7 419.6r 438.6 427.8 429.9 430.0 423.5 426.3 427.1 436.4 429.9 423.7 419.7 MEMO 57 Revaluation gains on off-balance-sheet items8 116.5 93.0 92.0 96.5 98.5 100.3 100.4 104.3 104.3 102.9 105.1 105.2 58 Revaluation losses on off-balancesheet items8 114.7 94.7 92.6 98.8 97.3 98.1 99.2 102.6 102.4 101.4 103.6 103.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A16 Domestic Financial Statistics • March 2000 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 1999r 1999 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Seasonally adjusted Assets 1 Bank credit 3,950.2 4,020.6 4,027.0 4,058.9 4,088.4 4,108.7 4,155.3 4,226.9 4,197.2 4,227.2 4,246.4 4,243.8 2 Securities in bank credit 1,012.7 l,015.0r 1,036.6 1,052.3 1,057.1 1,060.3 1,051.3 1,062.2 1,057.1 1,059.7 1,063.2 1,070.6 3 U.S. government securities 709.5 724.5 728.1 736.0 735.9 730.5 719.1 722.0 718.6 722.2 721.2 727.0 4 Other securities 303.2 290.5r 308.5 316.3 321.2 329.8 332.2 340.2 338.5 337.6 342.1 343.6 5 Loans and leases in bank credit2 2,937.5 3,005.7r 2,990.4 3,006.5 3,031.3 3,048.5 3,104.0 3,164.7 3,140.1 3,167.5 3,183.1 3,173.2 6 Commercial and industrial 734.2r 766.7r 771.8 777.1 783.5 787.0 804.8 812.6 815.4 812.1 812.1 812.8 7 Real estate l,316.7r l,347.0r 1,349.1 1,362.3 1,378.9 1,401.2 1,416.1 1,454.3 1,447.5 1,451.7 1,458.4 1,459.8 8 Revolving home equity 102.4 103.8r 98.0 98.7 98.4 99.0 100.6 106.1 104.2 105.8 106.9 107.4 9 Other l,214.2r 1,243.2 1,251.1 1,263.6 1,280.5 1,302.3 1,315.6 1,348.2 1,343.3 1,345.9 1,351.4 1,352.4 10 Consumer 497.8 491.lr 481.2 480.1 481.0 481.5 485.1 495.6 489.3 494.9 498.3 499.7 11 Security3 84.4 79.0 69.6 67.5 64.7 56.2 68.7 88.5 77.6 94.0 98.0 88.8 12 Other loans and leases 304.4 321.9r 318.7 319.5 323.2 322.5 329.3 313.8 310.3 314.8 316.3 312.2 13 Interbank loans 189.6 200.3r 196.8 189.3 184.9 195.6 191.5 192.8 188.5 195.6 191.4 199.2 14 Cash assets4 217.1 227,2r 222.6 214.3 221.7 225.6 225.9 236.0 245.5 227.0 249.5 226.0 15 Other assets5 303.4 312.1 314.9 315.9 326.1 326.3 331.1 333.2 337.2 332.6 333.6 327.5 16 Total assets6 4,602.6 4,701.8r 4,703.4 4,720.0 4,762.2 4,797.2 4,844.5 4,929.2 4,908.8 4,922.7 4,961.0 4,936.5 Liabilities 17 Deposits 3,029.9 3,071.5 3,080.7 3,075.4 3,084.0 3,102.8 3,121.0 3,152.2 3,149.4 3,163.9 3,171.6 3,129.2 18 Transaction 660.2 644.8 637.7 624.9 623.1 619.5 612.6 620.1 615.9 621.5 641.5 612.7 19 Nontransaction 2,369.7 2,426.6 2,443.0 2,450.5 2,460.8 2,483.2 2,508.3 2,532.1 2,533.5 2,542.4 2,530.1 2,516.5 20 Large time 421.1 426.2 425.7 424.0 433.4 447.9 458.9 467.7 464.5 465.8 468.5 471.9 21 Other 1,948.6 2,000.5 2,017.3 2,026.4 2,027.4 2,035.4 2,049.5 2,064.4 2,069.0 2,076.7 2,061.6 2,044.7 22 Borrowings 817.7 836.0 846.1 853.4 875.9 873.3 879.8 945.6 906.9 941.0 956.1 982.4 23 From banks in the U.S 292.8 309.0 312.7 312.9 315.3 327.3 325.1 323.8 315.1 319.4 319.5 338.0 24 From others 524.9 527.1 533.5 540.5 560.6 546.0 554.7 621.8 591.8 621.6 636.6 644.4 25 Net due to related foreign offices .... 112.4 145.6 145.2 150.5 152.2 166.2 182.0 181.3 179.1 181.5 179.6 185.9 26 Other liabilities 229.7 214.1 211.0 218.0 218.0 224.1 228.4 228.5 231.2 219.1 232.5 230.2 27 Total liabilities 4,189.7 4,267.2 4,283.0 4,297.2 4,330.1 4,366.4 4,411.2 4,507.6 4,466.7 4,505.5 4,539.8 4,527.7 28 Residual (assets less liabilities)7 412.9 434.6r 420.4 422.8 432.1 430.8 433.3 421.6 442.1 417.3 421.2 408.9 Not seasonally adjusted Assets 29 Bank credit 3,962.6 4,017.6 4,014.1 4,041.5 4,079.4 4,109.2 4,166.2 4,240.0 4,202.2 4,241.3 4,261.4 4,261.4 30 Securities in bank credit 1,015.8 l,012.6r 1,027.0 1,040.7 1,046.6 1,054.1 1,054.6 1,067.2 1,064.3 1,065.9 1,067.2 1,072.5 31 U.S. government securities 710.1 723.6 720.8 725.2 726.6 724.9 720.8 723.0 722.7 724.7 721.0 724.1 32 Other securities 305.7 289.0r 306.3 315.5 320.0 329.2 333.8 344.2 341.6 341.3 346.2 348.4 33 Loans and leases in bank credit2 2,946.8 3,005.0r 2,987.1 3,000.9 3,032.8 3,055.1 3,111.6 3,172.8 3,137.9 3,175.3 3,194.2 3,188.9 .34 Commercial and industrial 731.4r 768.6 770.2 770.2 779.9 787.0 803.5 808.9 807.7 806.6 809.7 812.8 35 Real estate l,318.6r l,347.8r 1,350.3 1,365.0 1,382.5 1,404.7 1,420.7 1,456.7 1,452.0 1,455.0 1,458.7 1,462.3 36 Revolving home equity 102.8 103.4r 97.9 98.8 99.1 99.7 101.4 106.5 104.7 106.2 107.3 107.9 37 Other l,215.7r 1,244.4 1,252.5 1,266.1 1,283.4 1,305.0 1,319.3 1,350.2 1,347.3 1,348.8 1,351.4 1,354.4 38 Consumer 503.1 488.4r 478.8 481.3 484.0 482.2 485.3 500.6 489.8 498.1 505.7 508.4 39 Security3 86.0 78.2 68.0 63.7 61.2 57.3 70.9 90.2 79.1 98.6 101.0 87.4 40 Other loans and leases 307.7 322.0r 319.8 320.8 325.1 323.9 331.1 316.5 309.3 317.0 319.1 317.9 41 Interbank loans 197.9 197.6r 190.5 181.6 181.4 192.2 198.0 199.3 196.5 205.4 194.9 203.2 42 Cash assets4 230.7 221.9r 214.9 204.3 219.2 225.3 232.3 250.4 236.2 242.9 257.1 265.5 43 Other assets5 302.8 319.0 318.3 318.1 327.7 323.8 329.5 332.6 333.7 331.8 330.5 332.6 44 Total assets6 4,636.3 4,697.5r 4,680.0 4,687.0 4,748.7 4,791.5 4,866.7 4,962.5 4,908.8 4,961.5 4,984.0 5,002.9 Liabilities 45 Deposits 3,060.0 3,068.8 3,066.9 3,064.1 3,083.0 3,105.3 3,147.9 3,180.3 3,165.2 3,194.4 3,181.9 3,178.4 46 Transaction 693.9 640.1 627.1 608.7 616.8 611.4 622.4 652.4 619.4 652.9 664.7 679.2 47 Nontransaction 2,366.1 2,428.6 2,439.8 2,455.4 2,466.2 2,493.9 2,525.5 2,527.9 2,545.8 2,541.5 2,517.2 2,499.2 48 Large time 423.6 422.6 420.8 422.2 433.0 449.9 464.9 470.9 471.2 470.5 470.9 471.3 49 Other 1,942.5 2,006.0 2,019.0 2,033.2 2,033.3 2,044.0 2,060.6 2,057.0 2,074.6 2,071.0 2,046.3 2,027.9 50 Borrowings 820.2 839.6 836.8 829.9 870.8 876.1 886.8 948.2 895.6 941.3 970.7 989.0 51 From banks in the U.S 298.7 308.8 308.1 305.8 311.6 325.0 329.6 330.2 318.5 325.2 329.9 345.1 52 From others 521.5 530.8 528.7 524.1 559.2 551.1 557.2 618.0 577.1 616.1 640.8 643.9 53 Net due to related foreign offices .... 111.4 141.2 139.9 147.5 149.8 166.1 181.0 181.8 183.5 180.3 178.9 188.7 54 Other liabilities 229.1 213.9 211.1 217.8 217.3 223.3 227.7 227.9 230.7 218.3 231.4 229.7 55 Total liabilities 4,220.7 4,263.4 4,254.7 4,259.3 4,320.9 4,370.7 4,443.4 4,538.1 4,475.1 4,534.3 4,563.0 4,585.7 56 Residual (assets less liabilities)7 415.6 434. f 425.3 427.7 427.7 420.8 423.3 424.4 433.7 427.2 421.1 417.2 MEMO 57 Revaluation gains on off-balance-sheet items8 68.0 54.6 54.4 58.4 60.1 60.9 59.8 64.5 63.7 63.3 66.0 65.2 58 Revaluation losses on off-balancesheet items8 69.6 57.1 56.3 62.5 59.8 60.0 59.8 63.9 63.4 62.9 65.2 64.5 59 Mortgage-backed securities9 345.7 333.9r 339.1 343.1 345.9 346.7 348.2 348.1 349.1 347.8 347.0 347.8 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 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Seasonally adjusted Assets 1 Bank credit 22,,449944..11 2,496.4 2,487.7 2,505.4 2,521.1 2,520.1 2,561.7 2,621.6 2,597.0 2,624.1 2,639.5 2,634.9 2 Securities in bank credit 558888..11 566.0 583.7 597.3 600.4 601.3 597.3 610.1 604.5 608.8 611.7 617.8 3 U.S. government securities 390.9 390.9 391.1 398.8 397.1 391.0 385.0 391.4 386.8 392.6 391.4 396.7 4 Trading account 23.0 25.1 22.7 23.3 20.9 20.0 18.0 19.4 16.7 19.0 18.2 24.1 5 Investment account 367.9 365.8 368.4 375.5 376.2 371.0 367.0 372.0 370.1 373.5 373.2 372.6 6 Other securities 197.2 175.1 192.6 198.5 203.3 210.3 212.4 218.7 217.7 216.2 220.3 221.1 7 Trading account 100.2 71.1 73.6 77.5 78.1 81.7 82.4 87.1 85.9 85.5 89.0 88.5 8 Investment account 97.0 104.0 119.0 121.0 125.2 128.5 129.9 131.7 131.8 130.7 131.4 132.7 9 State and local government . 24.8 25.3 25.4 25.7 25.7 25.8 26.4 26.4 26.3 26.3 26.6 26.3 10 Other 72.2 78.7 93.5 95.3 99.5 102.7 103.5 105.3 105.5 104.4 104.7 106.4 11 Loans and leases in bank credit2 ... 1,906.0 1,930.4 1,904.0 1,908.1 1,920.8 1,918.8 1,964.3 2,011.5 1,992.5 2,015.3 2,027.8 2,017.1 12 Commercial and industrial 545.9 567.1 569.5 573.1 576.5 574.3 589.2 595.5 599.0 595.2 594.8 595.6 13 Bankers acceptances 1.3 1.0 1.0 1.1 1.2 1.1 1.1 1.1 1.2 1.1 1.1 1.1 14 Other 544.6 566.2 568.6 572.0 575.3 573.2 588.0 594.4 597.9 594.1 593.7 594.5 15 Real estate 740.4 736.4 731.2 736.3 747.6 758.5 767.1 799.0 793.9 797.0 802.1 804.1 16 Revolving home equity 74.4 74.7 68.7 69.3 69.1 69.1 70.5 75.4 73.7 75.2 76.3 76.6 17 Other 666.1 661.7 662.5 667.1 678.5 689.4 696.6 723.6 720.2 721.9 725.8 727.5 18 Consumer 306.3 296.1 286.6 284.2 282.2 281.0 284.9 290.5 288.1 290.4 292.3 291.6 19 Security3 78.8 74.3 64.7 62.6 59.8 51.3 63.3 83.2 72.0 88.5 92.9 83.8 20 Federal funds sold to and repurchase agreements with broker-dealers 62.9 55.8 47.0 45.4 42.2 34.2 45.2 63.4 5511..00 6699..77 7711..99 6644..66 21 Other 15.9 18.5 17.8 17.2 17.6 17.0 18.1 19.8 21.0 18.8 21.0 19.3 22 State and local government 11.7 11.8 12.0 12.2 12.3 12.3 12.2 12.1 12.1 12.1 12.0 12.0 23 Agricultural 9.1 8.7 8.6 8.9 9.2 9.6 9.6 9.6 9.6 9.6 9.7 9.6 24 Federal funds sold to and repurchase agreements with others 17.2 16.4 4.8 7.9 11.2 10.0 12.3 11.8 1100..22 1122..33 1111..22 1133..33 25 All other loans 90.0 99.4 104.5 99.6 97.2 94.8 96.7 79.7 77.7 80.3 82.7 76.9 26 Lease-financing receivables 106.5 120.2 121.9 123.3 124.7 127.0 129.2 130.0 129.8 129.9 130.2 130.2 27 Interbank loans 129.8 148.9 143.7 138.3 136.4 149.8 141.3 141.5 137.7 142.6 139.0 148.9 28 Federal funds sold to and repurchase agreements with commercial banks 80.0 90.3 91.9 86.7 83.8 92.4 73.8 70.9 68.1 71.8 6688..22 7777..55 29 Other 49.8 58.7 51.8 51.5 52.5 57.4 67.6 70.7 69.6 70.8 70.9 71.4 30 Cash assets4 149.9 157.2 151.4 143.3 149.9 154.1 153.2 159.8 168.4 151.1 169.4 152.4 31 Other assets5 236.2 238.5 238.2 236.7 246.9 243.2 248.8 250.1 252.1 250.9 249.7 246.9 32 Total assets6 2,971.3 3,002.2 2,9823 2,985.0 3,0153 3,028.2 3,066.0 3,133.9 3,116.1 3,129.6 3,158.5 3,143.8 Liabilities 33 Deposits 1,726.9 1,722.7 1,719.9 1,706.7 1,712.7 1,713.6 1,721.3 1,735.0 1,738.2 1,745.1 1,746.7 1,715.3 34 Transaction 381.6 363.7 357.0 342.5 343.4 339.8 335.5 344.1 343.0 345.1 358.8 337.0 35 Nontransaction 1,345.2 1,359.0 1,362.9 1,364.2 1,369.3 1,373.8 1,385.8 1,390.9 1,395.2 1,400.0 1,387.9 1,378.3 36 Large time 234.7 230.2 231.7 227.2 235.1 245.1 252.1 258.9 256.9 257.2 259.2 262.4 37 Other 1,110.6 1,128.8 1,131.2 1,136.9 1,134.2 1,128.7 1,133.6 1,132.0 1,138.4 1,142.8 1,128.8 1,115.9 38 Borrowings 646.7 647.9 647.0 652.4 669.9 667.1 674.8 733.3 699.9 732.7 743.8 763.0 39 From banks in the U.S 211.5 221.4 218.2 219.7 221.8 237.5 237.3 236.4 231.2 234.3 231.0 246.1 40 From others 435.1 426.5 428.8 432.7 448.1 429.5 437.5 496.9 468.7 498.4 512.9 516.9 41 Net due to related foreign offices 108.8 141.5 140.9 147.0 148.8 161.9 177.5 176.8 174.9 177.2 175.4 180.6 42 Other liabilities 200.2 182.2 179.9 185.1 184.0 189.9 194.4 194.3 196.1 184.7 198.3 196.4 43 Total liabilities 2,682.6 2,6943 2,687.7 2,691.2 2,715.4 2,7325 2,767.9 2,8393 2,809.2 2,839.7 2,8643 2,8553 44 Residual (assets less liabilities)7 288.7 307.8 294.7 293.8 299.9 295.7 298.1 294.5 306.9 289.9 294.3 288.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A18 Domestic Financial Statistics • March 2000 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 1999r 1999 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Not seasonally adjusted Assets 45 Bank credit 2,508.3 2,486.3 2,473.7 2,485.9 2,508.9 2,521.9 2,575.6 2,636.6 2,607.8 2,641.0 2,654.3 2,650.1 46 Securities in bank credit 591.6 561.8 575.9 587.2 592.2 598.2 602.9 615.2 613.5 615.0 615.2 618.7 47 U.S. government securities 391.6 388.1 385.3 389.8 389.7 388.4 389.0 392.3 391.9 394.7 390.6 393.0 48 Trading account 23.7 23.5 20.9 22.2 20.7 20.8 19.9 20.0 19.5 20.5 18.4 22.0 49 Investment account 367.9 364.6 364.4 367.6 369.0 367.5 369.1 372.3 372.4 374.2 372.2 371.0 50 Mortgage-backed securities . . 263.4 240.3 239.0 242.8 245.9 244.0 244.4 244.1 245.3 244.3 243.3 243.6 51 Other 104.5 124.3 125.3 124.9 123.0 123.5 124.6 128.2 127.2 129.9 128.9 127.4 52 One year or less 27.7 25.6 25.5 25.2 24.7 25.6 23.9 25.2 24.7 26.6 25.6 24.2 53 One to five years 40.0 58.4 59.6 59.8 59.0 59.8 60.5 61.4 61.8 62.1 61.0 61.0 54 More than five years . .. 36.8 40.4 40.2 39.9 39.3 38.2 40.3 41.6 40.6 41.2 42.3 42.3 55 Other securities 200.0 173.7 190.6 197.4 202.6 209.8 213.9 222.9 221.6 220.3 224.6 225.6 56 Trading account 100.2 71.1 73.6 77.5 78.1 81.7 82.4 87.1 85.9 85.5 89.0 88.5 57 Investment account 99.8 102.6 117.0 120.0 124.5 128.1 131.5 135.8 135.7 134.8 135.6 137.2 58 State and local government . . 25.0 25.1 25.0 25.4 25.6 25.9 26.6 26.6 26.4 26.5 26.8 26.7 59 Other 74.8 77.5 92.0 94.6 98.9 102.2 104.9 109.2 109.3 108.4 108.8 110.5 60 Loans and leases in bank credit2 . . 1,916.7 1,924.5 1,897.8 1,898.7 1,916.7 1,923.7 1,972.7 2,021.4 1,994.3 2,026.0 2,039.1 2,031.5 61 Commercial and industrial 544.0 567.2 568.1 567.3 574.0 575.8 589.5 592.8 593.2 591.2 593.1 595.4 62 Bankers acceptances 1.3 1.0 1.0 1.1 1.2 1.1 1.1 1.1 1.2 1.1 1.1 1.1 63 Other 542.7 566.2 567.1 566.2 572.8 574.6 588.3 591.7 592.0 590.0 592.0 594.4 64 Real estate 744.0 734.4 730.3 736.9 747.9 760.5 771.2 803.3 800.4 802.3 804.3 807.5 65 Revolving home equity 74.6 74.5 68.8 69.6 69.6 69.7 71.1 75.6 74.0 75.4 76.3 76.8 66 Other 419.5 400.7 402.0 406.8 411.7 418.4 424.7 449.2 449.7 448.6 448.9 451.3 67 Commercial 249.9 259.2 259.5 260.6 266.6 272.4 275.4 278.5 276.7 278.3 279.1 279.4 68 Consumer 309.6 294.1 284.8 284.8 284.1 281.0 284.7 293.7 287.9 292.2 296.5 297.8 69 Security3 80.4 73.5 63.1 58.8 56.3 52.4 65.5 84.9 73.5 93.2 95.8 82.5 70 Federal funds sold to and repurchase agreements with broker-^dealers .... 64.2 54.2 45.4 41.9 38.9 35.3 47.5 64.6 53.7 73.5 73.2 62.4 71 Other 16.3 19.3 17.7 16.9 17.4 17.1 18.0 20.2 19.8 19.8 22.6 20.0 72 State and local government .... 11.8 11.7 12.0 12.3 12.4 12.4 12.3 12.2 12.3 12.3 12.1 12.1 73 Agricultural 9.1 8.8 8.9 9.1 9.4 9.7 9.6 9.6 9.5 9.5 9.5 9.7 74 Federal funds sold to and repurchase agreements with others 17.2 16.4 4.8 7.9 11.2 10.0 12.3 11.8 10.2 12.3 11.2 13.3 75 All other loans 94.4 97.9 104.3 98.8 97.8 95.8 99.8 83.6 78.9 84.2 87.1 82.4 76 Lease-financing receivables .... 106.1 120.5 121.6 122.8 123.5 126.0 127.8 129.5 128.4 128.8 129.5 130.7 77 Interbank loans 133.0 149.3 141.6 133.2 134.0 145.2 142.0 144.1 137.0 147.5 140.7 152.9 78 Federal funds sold to and repurchase agreements with commercial banks 83.8 89.4 88.4 81.9 81.9 88.6 76.6 74.5 69.8 78.4 70.1 81.2 79 Other 49.2 59.9 53.2 51.3 52.2 56.6 65.5 69.6 67.2 69.1 70.6 71.6 80 Cash assets4 160.2 153.0 145.5 136.4 148.8 154.5 157.4 170.6 160.8 163.4 175.9 182.2 81 Other assets5 235.6 243.8 240.4 238.3 248.1 240.6 245.5 249.5 248.9 250.1 248.9 249.9 82 Total assets6 2,998.4 2,993-3 2,962.4 2,954.8 3,000.6 3,023.4 3,0813 3,161.6 3,115.0 3,162.6 3,180.6 3,196.2 Liabilities 83 Deposits 1,751.0 1,716.7 1,708.6 1,696.8 1,708.7 1,712.3 1,735.6 1,758.5 1,747.7 1,771.2 1,758.9 1,756.5 84 Transaction 401.6 360.1 350.3 333.2 340.0 334.7 341.6 365.9 342.1 367.4 375.0 384.3 85 Nontransaction 1,346.4 1,356.6 1,358.3 1,363.6 1,368.7 1,377.6 1,393.9 1,392.6 1,405.6 1,403.8 1,383.9 1,372.3 86 Large time 237.2 226.6 226.9 225.4 234.6 247.2 258.2 262.2 263.6 261.9 261.5 261.9 87 Other 1,109.2 1,129.9 1,131.5 1,138.1 1,134.1 1,130.5 1,135.8 1,130.4 1,142.0 1,141.9 1,122.4 1,110.4 88 Borrowings 647.2 650.3 637.9 628.9 662.2 667.0 679.5 733.9 689.9 730.7 752.3 766.5 89 From banks in the U.S 215.5 221.1 214.4 213.3 217.7 233.3 239.9 240.7 234.0 238.1 237.7 250.4 90 From nonbanks in the U.S 431.8 429.3 423.5 415.6 444.5 433.7 439.5 493.1 456.0 492.6 514.7 516.2 91 Net due to related foreign offices . . . 107.8 137.1 135.7 144.0 146.4 161.8 176.5 177.3 179.4 176.0 174.7 183.4 92 Other liabilities 200.2 182.2 179.9 185.1 184.0 189.9 194.4 194.3 196.1 184.7 198.3 196.4 93 Total liabilities 2,7063 2,6862 2,662.1 2,654.8 2,701.2 2,731.0 2,785.9 2,863.9 2313.1 2,862.6 2,884.2 2,902.9 94 Residual (assets less liabilities)7 .... 292.1 307.1 300.4 300.0 299.4 292.4 295.4 297.7 301.9 300.0 296.4 293.3 MEMO 95 Revaluation gains on off-balancesheet items8 68.0 54.6 54.4 58.4 60.1 60.9 59.8 64.5 63.7 63.3 66.0 65.2 96 Revaluation losses on off-balancesheet items8 69.6 57.1 56.3 62.5 59.8 60.0 59.8 63.9 63.4 62.9 65.2 64.5 97 Mortgage-backed securities9 293.3 269.2 273.9 278.3 280.7 279.1 281.8 281.8 282.8 281.7 281.1 281.5 98 Pass-through securities 199.1 177.2 183.3 186.9 185.5 184.8 187.9 188.9 189.6 189.1 188.0 188.5 99 CMOs, REMICs, and other mortgage-backed securities . . 94.2 92.0 90.6 91.4 95.2 94.2 93.9 92.9 93.1 92.6 93.1 93.0 100 Net unrealized gains (losses) on available-for-sale securities10 . . . 3.0 .0 —3.3 -4.2 -4.9 -5.6 -5.8 -6.0 -5.7 -5.8 -6.0 -6.1 101 Offshore credit to U.S. residents" . . . 38.5 37.0 36.3 32.2 27.8 26.7 24.8 24.0 24.3 24.3 24.5 23.3 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 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Seasonally adjusted Assets 1 Bank credit 1,456.1 1,524.2 1,539.2 1,553.5 1,567.3 1,588.6 1,593.7 1,605.3 1,600.1 1,603.1 1,606.8 1,608.9 2 Securities in bank credit 424.6 448.9 452.9 455.0 456.7 459.0 454.0 452.1 452.5 450.9 451.5 452.8 3 U.S. government securities 318.6 333.6 337.0 337.2 338.8 339.5 334.1 330.6 331.7 329.6 329.8 330.4 4 Other securities 106.0 115.4 115.9 117.8 117.9 119.5 119.9 121.5 120.8 121.3 121.7 122.5 5 Loans and leases in bank credit2 1,031.5 1,075.3 1,086.3 1,098.4 1,110.6 1,129.6 1,139.7 1,153.2 1,147.6 1,152.1 1,155.3 1,156.1 6 Commercial and industrial 188.3 199.5 202.3 204.1 207.0 212.7 215.6 217.0 216.3 216.9 217.3 217.2 7 Real estate 576.2 610.6 617.9 625.9 631.3 642.7 649.1 655.2 653.6 654.6 656.3 655.7 8 Revolving home equity 28.1 29.1 29.3 29.4 29.3 29.8 30.1 30.7 30.6 30.6 30.7 30.8 9 Other 548.1 581.5 588.6 596.6 602.0 612.9 619.0 624.5 623.1 624.0 625.6 624.9 10 Consumer 191.5 195.0 194.6 195.9 198.8 200.5 200.1 205.1 201.2 204.6 206.0 208.1 11 Security3 5.6 4.7 4.9 4.9 4.9 4.9 5.4 5.3 5.6 5.4 5.1 5.0 12 Other loans and leases 69.9 65.4 66.7 67.6 68.5 68.8 69.5 70.6 70.9 70.6 70.7 70.2 13 Interbank loans 59.9 51.3 53.1 51.0 48.6 45.9 50.1 51.3 50.8 53.0 52.4 50.3 14 Cash assets4 67.1 69.9 71.3 71.1 71.7 71.6 72.7 76.2 77.1 75.9 80.1 73.6 15 Other assets5 67.2 73.6 76.8 79.1 79.2 83.1 82.3 83.1 85.0 81.7 83.9 80.7 16 Total assets6 1,631.3 1,699.6 1,721.1 1,735.0 1,746.9 1,769.0 1,7785 1,7953 1,792.7 1,793.2 1,8025 1,792.7 Liabilities 17 Deposits 1,303.0 1,348.7 1,360.8 1,368.7 1,371.3 1,389.1 1,399.7 1,417.2 1,411.2 1,418.8 1,424.9 1,413.9 18 Transaction 278.6 281.1 280.8 282.4 279.7 279.7 277.1 276.0 273.0 276.3 282.7 275.7 19 Nontransaction 1,024.5 1,067.6 1,080.1 1,086.3 1,091.6 1,109.4 1,122.6 1,141.2 1,138.3 1,142.5 1,142.2 1,138.2 20 Large time 186.5 196.0 193.9 196.8 198.4 202.7 206.7 208.8 207.6 208.6 209.4 209.4 21 Other 838.0 871.7 886.2 889.5 893.2 906.7 915.8 932.4 930.6 933.9 932.8 928.8 22 Borrowings 171.0 188.1 199.2 200.9 206.0 206.2 205.0 212.3 207.0 208.3 212.2 219.4 23 From banks in the U.S 81.3 87.5 94.5 93.2 93.5 89.8 87.8 87.4 83.9 85.1 88.5 91.9 24 From others 89.7 100.6 104.6 107.8 112.5 116.5 117.2 124.9 123.1 123.2 123.7 127.5 25 Net due to related foreign offices .... 3.6 4.1 4.3 3.5 3.4 4.3 4.5 4.5 4.2 4.3 4.2 5.3 26 Other liabilities 29.5 31.9 31.1 32.9 34.0 34.2 34.0 34.2 35.1 34.4 34.2 33.8 27 Total liabilities 137.1 1,572.9 1,595.4 1,606.1 1,614.6 1,633.9 1,6433 1,668.2 1,657.5 1,665.8 1,675.6 1,672.4 28 Residual (assets less liabilities)7 124.2 126.7 125.7 129.0 132.2 135.1 135.2 127.1 135.2 127.4 126.9 120.3 Not seasonally adjusted Assets 29 Bank credit 1,454.4 1,531.3 1,540.5 1,555.6 1,570.5 1,587.4 1,590.6 1,603.4 1,594.4 1,600.3 1,607.1 1,611.2 30 Securities in bank credit 424.2 450.8 451.2 453.4 454.4 455.9 451.7 452.0 450.8 450.9 452.0 453.8 31 U.S. government securities 318.5 335.4 335.5 335.4 337.0 336.5 331.8 330.7 330.8 330.0 330.4 331.0 32 Other securities 105.7 115.3 115.7 118.0 117.4 119.4 119.9 121.3 120.0 120.9 121.6 122.8 33 Loans and leases in bank credit2 1,030.2 1,080.5 1,089.3 1,102.2 1,116.1 1,131.5 1,138.9 1,151.4 1,143.6 1,149.4 1,155.1 1,157.4 34 Commercial and industrial 187.4 201.4 202.1 202.9 205.9 211.2 214.1 216.1 214.5 215.4 216.7 217.4 35 Real estate 574.5 613.4 620.0 628.1 634.6 644.2 649.5 653.4 651.6 652.7 654.4 654.8 36 Revolving home equity 28.3 28.9 29.1 29.2 29.6 30.0 30.4 30.9 30.7 30.8 30.9 31.1 37 Other 546.3 584.5 590.9 598.8 605.1 614.1 619.2 622.5 620.9 621.9 623.5 623.7 38 Consumer 193.5 194.3 194.0 196.5 199.9 201.2 200.6 206.9 201.9 205.9 209.2 210.6 39 Security3 5.6 4.7 4.9 4.9 4.9 4.9 5.4 5.3 5.6 5.4 5.1 5.0 40 Other loans and leases 69.1 66.7 68.3 69.9 70.7 70.0 69.3 69.8 70.0 69.9 69.7 69.7 41 Interbank loans 64.9 48.3 49.0 48.4 47.4 47.0 56.0 55.2 59.5 58.0 54.2 50.4 42 Cash assets4 70.5 68.9 69.4 67.9 70.4 70.7 74.9 79.8 75.4 79.5 81.2 83.3 43 Other assets5 67.1 75.2 78.0 79.8 79.6 83.1 84.0 83.1 84.8 81.6 81.6 82.6 44 Total assets6 1,637.9 1,704.2 1,717.6 1,732.1 1,748.0 1,768.1 1,785.4 1,800.9 1,793.8 1,798.9 1,803.4 1,806.7 Liabilities 45 Deposits 1,309.1 1,352.1 1,358.3 1,367.4 1,374.3 1,393.0 1,412.3 1,421.8 1,417.5 1,423.3 1,423.0 1,421.8 46 Transaction 289.3 280.0 276.8 275.5 276.8 276.7 280.8 286.4 277.3 285.5 289.7 294.9 47 Nontransaction 1,019.7 1,072.1 1,081.4 1,091.8 1,097.6 1,116.3 1,131.5 1,135.4 1,140.2 1,137.7 1,133.3 1,126.9 48 Large time 186.5 196.0 193.9 196.8 198.4 202.7 206.7 208.8 207.6 208.6 209.4 209.4 49 Other 833.3 876.1 887.5 895.0 899.2 913.6 924.8 926.6 932.6 929.1 923.9 917.5 50 Borrowings 172.9 189.3 199.0 201.0 208.7 209.1 207.3 214.3 205.7 210.5 218.4 222.5 51 From banks in the U.S 83.3 87.8 93.7 92.4 94.0 91.7 89.6 89.5 84.6 87.1 92.2 94.7 52 From others 89.7 101.5 105.3 108.5 114.7 117.4 117.7 124.9 121.1 123.4 126.1 127.7 53 Net due to related foreign offices .... 3.6 4.1 4.3 3.5 3.4 4.3 4.5 4.5 4.2 4.3 4.2 5.3 54 Other liabilities 28.9 31.7 31.2 32.7 33.3 33.4 33.3 33.6 34.6 33.6 33.1 33.3 55 Total liabilities 1,514.5 1,577.2 1,592.7 1,604.5 1,619.7 1,639.8 1,657.5 1,674^ 1,662.0 1,671.7 1,678.7 1,682.8 56 Residual (assets less liabilities)7 123.5 127.0 124.9 127.7 128.3 128.4 127.9 126.6 131.8 127.2 124.7 123.9 MEMO 57 Mortgage-backed securities' 52.4 64.7 65.2 64.8 65.2 67.6 66.3 66.3 66.3 66.2 65.9 66.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A20 Domestic Financial Statistics • March 2000 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 1999r 1999 Dec. June July Aug. Sept. Oct. Nov. Dec. Dec. 8 Dec. 15 Dec. 22 Dec. 29 Seasonally adjusted Assets 1 Bank credit 598.6 533.2 522.7 524.1 519.2 527.8 548.7 555.8 557.6 557.7 556.7 552.9 2 Securities in bank credit 213.9r 196.8 190.5 190.1 189.5 193.2 197.9 205.4 202.9 204.6 209.1 206.8 3 U.S. government securities 83.7r 86.7 86.2 84.1 81.8 82.2 79.7 81.7 79.8 81.4 84.0 82.5 4 Other securities 130.2 110.0 104.2 106.0 107.7 111.1 118.2 123.7 123.1 123.3 125.1 124.3 5 Loans and leases in bank credit2 .. . 384.8 336.4 332.3 334.0 329.7 334.6 350.8 350.4 354.7 353.0 347.6 346.1 6 Commercial and industrial 218.4 196.7 193.4 195.6 197.3 199.1 201.0 195.6 196.6 197.6 195.7 192.7 7 Real estate 21.5 19.2 18.5 17.6 17.6 17.8 17.4 17.3 17.2 17.4 17.4 17.3 8 Security3 66.3 52.0 52.8 55.0 51.4 54.8 65.3 66.8 70.7 67.4 63.7 64.6 9 Other loans and leases 78.6 68.5 67.5 65.8 63.4 62.9 67.0 70.7 70.2 70.6 70.7 71.5 10 Interbank loans 27.9 24.5 27.5 25.7 22.9 22.9 22.8 25.5 24.0 26.0 25.5 26.4 11 Cash assets4 35.6 33.5 35.2 38.0 40.9 44.1 50.4 54.6 53.2 56.4 54.9 54.4 12 Other assets5 38.4 33.6 32.3 29.0 29.3 31.8 34.8 37.6 36.1 37.1 39.9 37.2 13 Total assets6 7003 624.6 6175 616.6 612.0 626.4 6565 673.2 670.6 676.9 676.7 6705 Liabilities 14 Deposits 308.4 305.7 309.1 308.9 310.9 332.2 358.9 379.5 374.1 384.1 380.2 376.1 15 Transaction 11.4 10.9 10.9 11.0 10.9 11.5 11.3 11.5 11.6 11.4 11.7 11.8 16 Nontransaction 296.9 294.8 298.2 297.9 300.0 320.7 347.6 367.9 362.5 372.7 368.5 364.3 17 Borrowings 204.0 181.9 173.2 172.9 169.8 175.6 184.2 179.5 181.5 177.4 175.6 182.1 18 From banks in the U.S 26.8 27.5 24.4 23.6 25.2 22.9 26.9 25.4 25.1 23.9 23.4 29.0 19 From others 177.2 154.4 148.8 149.4 144.6 152.7 157.3 154.1 156.4 153.5 152.2 153.1 20 Net due to related foreign offices 101.5 64.6 71.9 72.0 66.1 53.4 44.1 37.1 41.0 36.2 41.0 32.2 21 Other liabilities 77.1 65.6 62.7 61.7 64.6 65.8 67.3 70.5 69.2 71.5 71.2 71.5 22 Total liabilities 691.0 617.7 616.9 615.5 611.4 627.0 6545 666.6 665.8 6692 668.0 661.8 23 Residual (assets less liabilities)7 9.4r 6.8 .6 1.1 .6 -.6 2.0 6.6 4.8 7.7 8.6 8.7 Not seasonally adjusted Assets 24 Bank credit 601.5 530.0 519.5 520.3 518.3 531.8 551.8 559.0 556.4 558.6 559.6 562.1 25 Securities in bank credit 212.5r 195.8 188.8 188.8 188.8 196.0 201.0 204.5 203.1 203.4 206.5 205.9 26 U.S. government securities 83.91 87.1 85.7 83.1 80.8 82.1 80.1 82.0 80.8 81.7 83.6 82.8 27 Trading account 17.4 21.9 20.0 17.3 15.6 14.9 9.2 7.7 7.3 7.2 8.4 8.1 28 Investment account 66.5r 65.2 65.8 65.8 65.2 67.2 70.9 74.4 73.5 74.5 75.2 74.7 29 Other securities 128.6 108.7 103.1 105.7 108.0 114.0 120.9 122.4 122.3 121.7 122.9 123.1 30 Trading account 77.7 65.3 60.8 649 69.7 75.0 80.7 80.6 81.0 80.5 80.5 80.6 31 Investment account 50.9 43.4 42.3 40.9 38.2 39.0 40.2 41.9 41.3 41.2 42.5 42.5 32 Loans and leases in bank credit2 . . . 389.0 334.2 330.7 331.5 329.5 335.8 350.8 354.5 353.3 355.2 353.1 356.1 33 Commercial and industrial 221.1 195.0 192.6 193.9 197.0 200.2 202.3 198.3 197.1 199.2 199.1 198.0 34 Real estate 21.6 19.0 18.3 17.5 17.6 18.0 17.6 17.4 17.3 17.5 17.4 17.3 35 Security3 66.8 52.2 52.4 55.0 51.6 54.5 64.5 67.3 69.3 67.9 64.6 66.6 36 Other loans and leases 79.5 68.0 67.3 65.1 63.4 63.2 66.4 71.6 69.6 70.7 72.0 74.3 37 Interbank loans 27.9 24.5 27.5 25.7 22.9 22.9 22.8 25.5 24.0 26.0 25.5 26.4 38 Cash assets4 37.1 34.3 35.1 37.7 40.6 44.7 51.2 56.9 54.3 58.5 57.9 57.6 39 Other assets5 39.8 32.5 31.6 29.6 29.7 31.7 35.0 39.0 38.2 39.3 41.1 37.9 40 Total assets6 706.2r 621.2 613.4 613.1 611.2 630.9 6605 680.1 672.6 682.1 683.9 683.7 Liabilities 41 Deposits 312.0 306.4 306.7 306.3 310.4 332.2 358.3 383.8 376.2 387.8 387.0 383.4 42 Transaction 11.9 10.7 10.8 10.9 11.4 11.5 11.2 11.9 11.5 11.8 12.3 12.6 43 Nontransaction 300.2 295.7 295.9 295.4 299.1 320.7 347.1 371.9 364.8 376.0 374.7 370.8 44 Borrowings 204.0 181.9 173.2 172.9 169.8 175.6 184.2 179.5 181.5 177.4 175.6 182.1 45 From banks in the U.S 26.8 27.5 24.4 23.6 25.2 22.9 26.9 25.4 25.1 23.9 23.4 29.0 46 From others 177.2 154.4 148.8 149.4 144.6 152.7 157.3 154.1 156.4 153.5 152.2 153.1 47 Net due to related foreign offices .... 107.7 63.2 69.3 69.9 64.5 55.2 46.8 42.2 41.4 40.9 46.3 42.8 48 Other liabilities 78.5 65.1 61.8 61.8 64.3 65.2 68.2 71.9 70.7 73.3 72.4 73.1 49 Total liabilities 7022 616.6 610.9 610.9 609.0 628.2 6575 677.4 669.8 6795 6813 681.2 50 Residual (assets less liabilities)7 4.0 4.5 2.5 2.2 2.2 2.7 3.0 2.7 2.8 2.7 2.6 2.5 MEMO 51 Revaluation gains on off-balance-sheet items8 48.5 38.4 37.5 38.1 38.4 39.4 40.6 39.8 40.7 39.6 39.1 40.0 52 Revaluation losses on off-balancesheet items8 45.1 37.6 36.2 36.3 37.4 38.1 39.4 38.7 38.9 38.5 38.4 39.2 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 eifects 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 Nonflnancial Statistics • March 2000 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 June July Aug. Sept. Oct. Nov. 1 All issuers 595,382 674,904 775,371 966,699 1,163,303 1,221,020 1,242,107 1,257,658 1,274,726 1,321,163 1,369,100 Financial companies1 2 Dealer-placed paper, total2 223,038 275,815 361,147 513,307 614,142 705,603 712,718 710,320 718,380 751,245 802,194 3 Directly placed paper, total3 207,701 210,829 229,662 252,536 322,030 272,014 277,570 290,228 293,381 296,998 299,777 4 Nonfinancial companies4 164,643 188,260 184,563 200,857 227,132 243,404 251,819 257,110 262,965 272,920 267,128 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 Acceptances1 Millions of dollars, not seasonally adjusted, year ending September2 Item 1996 1997 1998 1999 1 Total amount of reporting banks' acceptances in existence 25,832 25,774 14,363 10,094 2 Amount of other banks' eligible acceptances held by reporting banks 709 736 523 461 3 Amount of own eligible acceptances held by reporting banks (included in item 1) 7,770 6,862 4,884 4,261 4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries (included in item 1) 9,361 10,467 5,413 3,498 1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United 2. Data on bankers dollar acceptances are gathered from approximately 55 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 Date of change Rate Period Av r e a r te a ge Period Av r e a r te a ge Period Av r e a r te a ge 1997 Jan 1 8.25 1997 8.44 1998—Jan 8.50 1999 Jan 7.75 Mar. 26 8.50 1998 8.35 Feb 8.50 Feb 7.75 1999 8.00 Mar 8.50 Mar 7.75 1998—Sept. 30 8.25 Apr 8.50 Apr 7.75 Oct. 16 8.00 1997—Jan 8.25 May 8.50 May 7.75 Nov. 18 7.75 Feb 8.25 June 8.50 June 7.75 Mar 8.30 July 8.50 July 8.00 1999—July 1 8.00 Apr 8.50 Aug 8.50 Aug 8.06 Aug. 25 8.25 Mav 8.50 Sept 8.49 Sept 8.25 Nov. 17 8.50 June 8.50 Ocl 8.12 Oct 8.25 July 8.50 Nov. 7.89 Nov 8.37 2000—Feb 3 88..1155 8.50 Dec 77..7755 Dec 88..5500 Sept 8.50 Oct 8.50 2000—Jan 8.50 Nov 8.50 Dec 8.50 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover, by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 1999 1999, week ending IItteemm 11999977 11999988 11999999 Sept. Oct. Nov. Dec. Dec. 3 Dec. 10 Dec. 17 Dec. 24 Dec. 31 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 5.46 5.35 4.97 5.22 5.20 5.42 5.30 5.63 5.45 5.44 5.46 5.01 2 Discount window borrowing2,4 5.00 4.92 4.62 4.75 4.75 4.86 5.00 5.00 5.00 5.00 5.00 5.00 Commercial paper,5,6 Nonfinancial 3 1-month 5.57 5.40 5.09 5.28 5.28 5.37 5.97 5.63 5.88 6.16 6.33 5.71 4 2-month 5.57 5.38 5.14 5.29 5.30 5.82 5.91 5.89 5.86 6.01 6.07 5.73 5 3-month 5.56 5.34 5.18 5.32 5.88 5.81 5.87 5.83 5.84 5.89 6.00 5.78 Financial 6 1-month 5.59 5.42 5.11 5.29 5.29 5.38 6.02 5.65 5.95 6.23 6.40 5.74 7 2-month 5.59 5.40 5.16 5.31 5.32 5.85 5.95 5.91 5.96 6.05 6.08 5.77 8 3-month 5.60 5.37 5.22 5.32 5.93 5.85 5.93 5.88 5.90 5.98 6.04 5.83 Commercial paper (historical)3'5'1 9 1-month 5.54 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 3-month 5.58 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 6-month 5.62 n.a. 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 5.44 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 3-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 6-month 5.48 n.a. 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 5.54 5.39 5.24 5.37 6.02 5.94 6.00 5.92 5.99 5.98 6.08 6.00 16 6-month 5.57 5.30 5.30 5.75 5.89 5.83 5.94 5.83 5.93 5.90 6.00 5.99 Certificates of deposit, secondary markeP,10 17 1-month 5.54 5.49 5.19 5.34 5.36 5.50 6.34 6.24 6.39 6.44 6.48 6.05 18 3-month 5.62 5.47 5.33 5.50 6.13 6.00 6.05 6.00 6.03 6.08 6.16 6.00 19 6-month 5.73 5.44 5.46 5.89 6.04 5.97 6.07 6.01 6.03 6.07 6.14 6.07 20 Eurodollar deposits, 3-month3,11 5.61 5.45 5.31 5.48 6.09 5.97 6.06 6.05 6.04 6.05 6.14 6.02 U.S. Treasury bills Secondary market3,5 21 3-month 5.06 4.78 4.64 4.68 4.86 5.07 5.20 5.13 5.09 5.23 5.38 5.17 7,7. 6-month 5.18 4.83 4.75 4.88 4.98 5.20 5.44 5.33 5.33 5.48 5.56 5.47 23 1-year 5.32 4.80 4.81 4.96 5.12 5.24 5.51 5.39 5.37 5.51 5.62 5.60 Auction high3,5,12 24 3-month 5.07 4.81 4.66 4.73 4.88 5.07 5.23 5.20 5.05 5.21 5.40 5.30 25 6-month 5.18 4.85 4.76 4.91 4.98 5.17 5.43 5.33 5.29 5.41 5.60 5.51 26 1-year 5.36 4.85 4.78 5.00 5.12 5.17 5.35 n.a. 5.35 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 71 1-year 5.63 5.05 5.08 5.25 5.43 5.55 5.84 5.73 5.69 5.85 5.97 5.95 2.8 2-year 5.99 5.13 5.43 5.66 5.86 5.86 6.10 6.03 5.96 6.09 6.23 6.22 29 3-year 6.10 5.14 5.49 5.75 5.94 5.92 6.14 6.08 6.00 6.11 6.26 6.26 30 5-year 6.22 5.15 5.55 5.80 6.03 5.97 6.19 6.13 6.03 6.14 6.30 6.33 31 7-year 6.33 5.28 5.79 6.12 6.33 6.17 6.38 6.31 6.21 6.33 6.51 6.52 37. 10-year 6.35 5.26 5.65 5.92 6.11 6.03 6.28 6.20 6.13 6.24 6.39 6.41 33 20-year 6.69 5.72 6.20 6.50 6.66 6.48 6.69 6.64 6.54 6.67 6.82 6.80 34 30-year 6.61 5.58 5.87 6.07 6.26 6.15 6.35 6.30 6.22 6.32 6.46 6.46 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 6.43 6.60 6.42 6.63 6.58 6.48 6.60 6.76 6.75 STATE AND LOCAL NOTES AND BONDS Moody's series14 36 5.32 4.93 5.28 5.56 5.78 5.77 5.82 5.80 5.78 5.83 5.85 5.85 37 Baa 5.50 5.14 5.70 6.06 6.23 6.23 6.25 6.24 6.20 6.24 6.28 6.29 38 Bond Buyer series15 5.52 5.09 5.43 5.69 5.92 5.86 5.95 5.91 5.89 5.96 6.00 6.00 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.78 7.93 7.73 7.87 7.83 7.74 7.74 7.98 7.96 Rating group 40 Aaa 7.27 6.53 7.05 7.39 7.55 7.36 7.55 7.50 7.42 7.52 7.66 7.64 41 Aa 7.48 6.80 7.36 7.68 7.79 7.62 7.78 7.72 7.64 7.75 7.89 7.88 42 A 7.54 6.93 7.53 7.84 7.99 7.79 7.96 7.91 7.83 7.93 8.07 8.06 43 Baa 7.87 7.22 7.88 8.20 8.38 8.15 8.19 8.17 8.08 8.17 8.29 8.24 MEMO Dividend-price ratiou 44 Common stocks 1.77 1.49 1.25 1.27 1.28 1.21 1.18 1.20 1.18 1.18 1.17 1.15 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 Nonflnancial Statistics • March 2000 1.36 STOCK MARKET Selected Statistics 1999 IInnddiiccaattoorr 11999977 11999988 11999999 Apr. May June July Aug. Sept. Oct. Nov. Dec. Prices and trading volume (averages of daily figures)1 Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 627.75 635.62 629.53 648.83 621.03 607.87 599.04 634.22 638.17 2 Industrial 574.97 684.35 775.29 780.84 791.72 783.96 809.33 778.82 769.47 753.94 791.41 808.28 3 Transportation 415.08 468.61 491.62 523.08 537.88 520.66 528.72 492.13 462.33 450.13 474.78 461.04 4 Utility 143.87 190.52 284.82 228.48 242.98 241.36 250.50 241.84 237.71 285.16 502.58 511.78 5 Finance 424.84 516.65 530.97 564.99 562.66 546.43 557.92 521.59 493.37 490.92 539.20 510.99 6 Standard & Poor's Corporation (1941-43 = 10)2 873.43 1,085.50 1,327.33 1,334.76 1,332.07 1,322.55 1,380.99 1,327.49 1,318.17 1,300.01 1,390.99 1,428.68 7 American Stock Exchange (Aug. 31, 1973 = 50)3 628.34 682.69 770.90 748.29 787.02 772.01 803.75 781.33 788.74 786.96 819.60 838.24 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 874,818 785,778 723,025 721,294 709,569 772,627 882,422 866,281 884,141 9 American Stock Exchange 24,390 28,870 n.a. 38,895 35,241 28,806 25,754 27,795 32,540 35,762 33,330 41,076 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers4 126,090 140,980 228,530 172,880 177,984 176,930 178,360 176,390 179,316 182,272 206,280 228,530 Free credit balances at brokers5 11 Margin accounts6 31,410 40,250 55,130 41,200 41,250 42,865 44,330 44,230 47,125 51,040 49,480 55,130 12 Cash accounts 52,160 62,450 79,070 60,870 61,665 64,100 60,000 62,600 62,810 61,085 68,200 79,070 Margin requirements (percent of market value and effective date)7 Mar. 11, 1968 June 8, 1968 May 6, 1970 Dec. 6, 1971 Nov. 24, 1972 Jan. 3, 1974 13 Margin stocks 70 80 65 55 65 50 14 Convertible bonds 50 60 50 50 50 50 15 Short sales 70 80 65 55 65 50 1. Daily data on prices are available upon request to the Board of Governors. For ordering 6. Series initiated in June 1984. address, see inside front cover. 7. Margin requirements, stated in regulations adopted by the Board of Governors pursuant 2. In July 1976 a financial group, composed of banks and insurance companies, was added to the Securities Exchange Act of 1934, limit the amount of credit that can be used to to the group of stocks on which the index is based. The index is now based on 400 industrial purchase and carry "margin securities" (as defined in the regulations) when such credit is stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and collateralized by securities. Margin requirements on securities are the difference between the 40 financial. market value (100 percent) and the maximum loan value of collateral as prescribed by the 3. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, previous readings in half. 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971. 4. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the included credit extended against stocks, convertible bonds, stocks acquired through the initial margin required for writing options on securities, setting it at 30 percent of the current exercise of subscription rights, corporate bonds, and government securities. Separate report- market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in required initial margin, allowing it to be the same as the option maintenance margin required April 1984. by the appropriate exchange or self-regulatory organization; such maintenance margin rules 5. Free credit balances are amounts in accounts with no unfulfilled commitments to must be approved by the Securities and Exchange Commission. brokers and are subject to withdrawal by customers on demand. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A25 1.38 FEDERAL FISCAL AND FINANCING OPERATIONS Millions of dollars Fiscal year Calendar year TTTyyypppeee ooofff aaaccccccooouuunnnttt ooorrr ooopppeeerrraaatttiiiooonnn 1999 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. U.S. budget1 1 Receipts, total 1,579,292 1,721,798 1,827,454 121,923 126,324 200,396 121,035 121,375 201,196 2 On-budget 1,187,302 1,305,999 1,382,986 87,959 91,554 161,304 89,009 86,909 162,772 3 Off-budget 391,990 415,799 444,468 33,964 34,770 39,092 32,026 34,466 38,424 4 Outlays, total 1,601,235 1,652,552 1,703,040 147,086 129,127 142,341 147,701 148,408 168,114 5 On-budget 1,290,609 1,335,948 1,382,262 117,652 97,984 107,222 119,506 116,388 165,504 6 Off-budget 310,626 316,604 320,778 29,434 31,143 35,119 28,196 32,020 2,611 7 Surplus or deficit (-), total -21,943 69,246 124,414 -25,164 -2,803 58,055 -26,667 -27,032 33,081 8 On-budget -103,307 -29,949 724 -29,693 -6,430 54,082 -30,497 -29,479 -2,732 9 Off-budget 81,364 99,195 123,690 4,530 3,627 3,973 3,830 2,446 35,813 Source of financing (total) 10 Borrowing from the public 38,171 -51,211 -88,304 1,193 26,470 -47,718 5,754 6,132 35,749 11 Operating cash (decrease, or increase (-)) 604 4,743 -17,580 13,553 3,160 -20,069 8,891 41,488 -77,248 12 Other 2 -16,832 -22,778 -18,530 10,418 -26,827 9,732 12,022 -20,588 8,418 MEMO 13 Treasury operating balance (level, end of period) 43,621 38,878 56,458 39,549 36,389 56,458 47,567 6,079 83,327 14 Federal Reserve Banks 7,692 4,952 6,641 4,984 5,559 6,641 4,527 5,025 28,402 15 Tax and loan accounts 35,930 33,926 49,817 34,565 30,831 49,817 43,040 1,054 54,925 1. Since 1990, off-budget items have been the social security trust funds (federal old-age net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loansurvivors insurance and federal disability insurance) and the U.S. Postal Service. valuation adjustment; and profit on sale of gold. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; Receipts and Outlays of the US. 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 Nonflnancial Statistics • March 2000 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1998 1999 1999 11999988 11999999 HI H2 HI H2 Oct. Nov. Dec. RECEIPTS 1 All sources 1,721,798 1,827,454 922,630 825,057 966,045 892,249 121,035 121,375 201,196 2 Individual income taxes, net 828,586 879,480 447,514 392,332 481,527 425,451 63,505 57,477 94,535 3 Withheld 646,483 693,940 316,309 339,144 351,068 372,012 57,596 59,668 88,311 4 Nonwithheld 281,527 308,185 219,136 65,204 240,278 68,302 7,129 2,298 7,373 5 Refunds 99,476 122,706 87,989 12,032 109,467 14,841 1,221 4,490 1,149 Corporation income taxes 6 Gross receipts 213,008 216,324 109,353 104,163 106,861 110,111 7,175 3,461 46,486 7 Refunds 24,593 31,645 14,220 14,250 17,092 13,996 4,995 1,809 1,540 8 Social insurance taxes and contributions, net . . . 571,831 611,833 312,713 268,466 324,831 292,551 43,879 49,013 48,421 9 Employment taxes and contributions2 540,014 580,880 293,520 256,142 306,235 280,059 42,412 45,759 47,742 10 Unemployment insurance 27,484 26,480 17,080 10,121 16,378 10,173 1,049 2,868 266 11 Other net receipts3 4,333 4,473 2,112 2,202 2,216 2,319 418 386 412 12 Excise taxes 57,673 70,414 29,922 33,366 31,015 34,249 4,181 6,072 5,709 13 Customs deposits 18,297 18,336 8,546 9,838 8,440 10,287 1,788 1,621 1,612 14 Estate and gift taxes 24,076 27,782 12,971 12,359 14,915 14,001 2,554 2,465 2,575 15 Miscellaneous receipts4 32,658 34,929 15,829 18,735 15,140 19,565 2,948 3,075 3,398 OUTLAYS 16 All types 1,652,552 1,703,040 815,884 877,414 817,235 882,777 147,701 148,408r 168,114 17 National defense 268,456 274,873 129,351 140,196 134,414 149,820 24,036 23,224 31,261 18 International affairs 13,109 15,243 4,610 8,297 6,879 8,530 1,000 1,522 3,527 19 General science, space, and technology 18,219 18,125 9,426 10,142 9,319 10,089 1,524 1,661 1,853 20 Energy 1,270 912 957 699 797 -90 -311 -199 32 21 Natural resources and environment 22,396 23,968 10,051 12,671 10,351 12,098 1,528 2,078 2,350 22 Agriculture 12,206 23,011 2,387 16,757 9,803 20,887 6,759 7,401 4,362 23 Commerce and housing credit 1,014 2,647 -2,483 4,046 -1,629 7,351 1,698 505r -696 24 Transportation 40,332 42,531 16,196 20,836 17,082 22,971 3,750 3,890 3,858 25 Community and regional development 9,720 11,870 4,863 6,972 5,368 7,135 1,627 1,244 1,300 26 Education, training, employment, and social services 54,919 56,402 25,928 27,762 29,003 27,532 5,175 4,070 5,593 27 Health 131,440 141,079 65,053 67,838 69,320 74,490 12,229 12,124 13,462 28 Social security and Medicare 572,047 580,488 286,305 316,809 261,146 295,030 48,179 48,686 52,720 29 Income security 233,202 237,707 125,196 109,481 126,552 113,504 17,607 18,216 23,747 30 Veterans benefits and services 41,781 43,212 19,615 22,750 20,105 23,412 3,657 3,795 5,320 31 Administration of justice 22,832 25,924 11,287 12,041 13,149 13,459 2,127 2,579 2,163 32 General government 13,444 15,758 6,139 9,136 6,650 6,993 1,117 646 1,974 33 Net interest5 243,359 229,735 122,345 116,954 116,655 112,420 18,894 20,410 18,328 34 Undistributed offsetting receipts6 -47,194 -40,445 -21,340 -25,793 -17,724 -22,850 -2,896 -3,441 -3,040 1. Functional details do not sum to total outlays for calendar year data because revisions to 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. monthly totals have not been distributed among functions. Fiscal year total for receipts and 5. Includes interest received by trust funds. outlays do not correspond to calendar year data because revisions from the Budget have not 6. Rents and royalties for the outer continental shelf, U.S. government contributions for been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S. 3. Federal employee retirement contributions and civil service retirement and Government, Fiscal Year 2001', monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1997 1998 1999 IItteemm Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 1 Federal debt outstanding 5,536 5,573 5,578 5,556 5,643 5,681 5,668 5,685 29 2 Public debt securities 5,502 5,542 5,548 5,526 5,614 5,652 5,639 5,656 5,776 3 Held by public 3,847 3,872 3,790 3,761 3,787 3,795 3,685 3,667 n.a. 4 Held by agencies 1,656 1,670 1,758 1,766 1,827 1,857 1,954 1,989 n.a. 5 Agency securities 34 31 30 29 29 29 29 29 29 6 Held by public 27 26 26 26 29 28 28 28 n.a. 7 Held by agencies 7 5 4 4 1 1 1 1 n.a. 8 Debt subject to statutory limit 5,417 5,457 5,460 5,440 5,530 5,566 5,552 5,568 5,687 9 Public debt securities 5,416 5,456 5,460 5,439 5,530 5,566 5,552 5,568 5,687 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 5,950 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 1999 TTyyppee aanndd hhoollddeerr 11999966 11999977 11999988 11999999 Q1 Q2 Q3 Q4 1 Total gross public debt 5,323.2 5,502.4 5,614.2 .0 5,651.6 5,638.8 5,656.3 5,776.09 B\ type 2 Interest-bearing 5,317.2 5,494.9 5,605.4 5,766.1 5,643.1 5,629.5 5,647.2 5,766.1 3 Marketable 3,459.7 3,456.8 3,355.5 3,281.0 3,361.3 3,248.5 3,233.0 3,281.0 4 Bills 777.4 715.4 691.0 737.1 725.5 647.8 653.2 737.1 5 Notes 2,112.3 2,106.1 1,960.7 1,784.5 1,912.0 1,868.5 1,828.8 1,784.5 6 Bonds 555.0 587.3 621.2 643.7 632.5 632.5 643.7 643.7 7 Inflation-indexed notes and bonds1 n.a. 33.0 50.6 58.2 59.2 59.9 67.6 6 8.2 8 Nonmarketable2 1,857.5 2,038.1 2,249.9 2,485.1 2,281.8 2,381.0 2,414.2 2,485.1 9 State and local government series 101.3 124.1 165.3 165,7 167.5 172.6 168.1 165.7 10 Foreign issues3 37.4 36.2 34.3 31.3 33.5 30.9 31.0 31.3 11 Government 47.4 36.2 34.3 31.3 33.5 30.9 31.0 31.3 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 182.4 181.2 180.3 179.4 180.6 180.0 180.0 179.4 14 Government account series4 1,505.9 1,666.7 1,840.0 2,078.7 1,870.2 1,967.5 2,005.2 2,078.7 15 Non-interest-bearing 6.0 7.5 8.8 10.0 8.5 9.3 9.0 10.0 By holder5 16 U.S. Treasury and other federal agencies and trust funds 1,497.2 1,655.7 1,826.8 1,857.1 1,953.6 1,989.1 17 Federal Reserve Banks 410.9 451.9 471.7 464.5 493.8 496.5 18 Private investors 3,431.2 3,414.6 3,334.0 3,327.6 3,199.3 3,175.6 19 Depository institutions 296.6 300.3 237.3 247.7 243.0 n.a. 20 Mutual funds 315.8 321.5 343.2 351.1 328.1 n.a. 21 Insurance companies 214.1 176.6 144.6 n.a. 143.8 141.8 n.a. n.a. 22 State and local treasuries6 257.0 239.3 269.3 272.5 279.1 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.6 186.6 186.3 24 Pension funds 392.7 421.0 434.7 437.2 439.5 n.a. 25 Private 189.2 204.1 218.1 220.0 226.6 n.a. 26 State and Local 203.5 216.9 216.6 217.2 212.9 n.a. 27 Foreign and international7 1,102.1 1,241.6 1,278.7 1,272.1 1,258.6 1,281.3 28 Other miscellaneous investors6'8 665.9 527.9 439.6 416.6 322.6 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 Financial Statistics • March 2000 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1999 1999, week ending item Sept. Oct. Nov. Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 2277,,444455 2233,,880066 3333,,339944 24,326 37,437 35,985 23,983 43,667 33,708 27,468 31,651 34,003 Coupon securities, by maturity 2 Five years or less 8822,,442266 90,839 100,867 95,703 114,337 110,793 90,562 88,378 84,403 81,589 82,090 37,615 3 More than five years 54,516 57,462 64,960 65,940 73,508 66,208 55,396 63,933 54,023 48,984 44,004 16,996 4 Inflation-indexed 586 1,096 750 460 989 722 782 666 572 575 315 318 Federal agency 5 Discount notes 4466,,557700 45,499 48,022 43,062 44,939 57,105 47,022 45,494 49,761 43,040 41,715 43,577 Coupon securities, by maturity 6 One year or less 11,,001188 884477 793 498 314 818 1,229 1,035 910 695 971 589 7 More than one year, but less than or equal to five years 5,858 6,420 5,878 7,009 7,963 5,719 4,170 4,758 6,739 3,972 4,506 22,,007711 8 More than five years 4,593 3,874 4,092 7,220 2,895 3,474 5,246 2,574 2,961 6,025 2,159 889944 9 Mortgage-backed 64,305 63,248 55,736 45,512 101,830 53,088 33,059 37,444 86,488 49,435 28,244 10,951 By type of counterparty With interdealer broker 10 U.S. Treasury 88,466 93,305 107,232 99,241 124,018 111,932 91,447 106,097 94,137 83,392 81,486 45,922 11 Federal agency 4,534 4,969 4,907 4,606 5,295 5,922 4,356 4,066 5,093 3,884 3,690 2,597 12 Mortgage-backed 23,835 21,540 20,443 17,991 33,378 19,791 12,852 16,416 32,077 18,734 11,990 33,,222233 With other 13 U.S. Treasury 76,506 79,898 92,740 87,188 102,253 101,777 79,276 90,548 78,569 75,224 76,573 43,008 14 Federal agency 53,504 51,671 53,879 53,183 50,816 61,193 53,311 49,796 55,277 49,848 45,660 44,533 15 Mortgage-backed 40,469 41,708 35,294 27,521 68,452 33,298 20,207 21,029 54,411 30,701 16,254 7,728 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 17 Five years or less 2,226 2,543 3,290 2,247 4,375 2,016 2,451 5,355 5,427 4,078 3,085 668 18 More than five years 13,642 12,576 16,051 14,719 14,753 12,676 16,092 22,842 17,396 11,562 13,542 4,105 19 Inflation-indexed 0 0 0 0 0 0 0 0 0 00 00 00 Federal agency 20 Discount notes 0 0 0 0 0 0 0 0 0 0 00 00 Coupon securities, by maturity 21 One year or less 0 0 0 0 0 0 0 0 0 0 00 00 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 25 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 00 Coupon securities, by maturity 26 Five years or less 842 1,039 1,823 1,617 1,943 2,692 1,316 1,376 1,496 677 1,466 456 27 More than five years 3,440 3,802 4,785 5,507 5,648 4,201 4,539 4,203 3,380 3,663 4,932 2,787 28 Inflation-indexed 0 0 0 0 0 0 0 0 0 00 00 00 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 00 00 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 00 00 00 31 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 0 32 More than five years 0 0 0 0 0 0 0 0 0 0 0 0 33 Mortgage-backed 917 498 671 841 1,172 552 436 361 761 555 503 312 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 repotted at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1999 1999, week ending Sept. Oct. Nov. Nov. 3 Nov. 10 Nov. 17 Nov. 24 Dec. 1 Dec. 8 Dec. 15 Dec. 22 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 1,862 7,071 9,579 6,450 18,382 -107 10,738 10,823 19,084 27,359 23,356 Coupon securities, by maturity 2 Five years or less -33,167 -33,679 -28,880 -34,706 -31,322 -29,763 -22,671 -29,331 -29,504 -25,835 -18,437 3 More than five years -14,651 -22,651 -23,250 -25,412 -22,166 -24,574 -19,961 -25,728 -31,604 -26,904 -29,629 4 Inflation-indexed 3,758 3,781 3,164 3,489 3,421 3,201 2,845 3,030 2,814 2,577 2,317 Federal agency 5 Discount notes 38,620 40,900 43,941 48,044 49,010 40,261 41,032 43,663 47,233 46,687 40,705 Coupon securities, by maturity 6 One year or less 5,158 6,085 6,270 5,837 5,310 5,385 7,378 7,344 5,753 5,256 5,495 7 More than one year, but less than or equal to five years 6,989 4,438 4,533 4,749 5,362 4,505 4,595 3,416 4,147 2,822 368 8 More than five years 2,346 2,913 3,464 4,028 3,958 3,010 3,235 3,403 3,123 2,855 2,305 9 Mortgage-backed 18,585 20,356 23,743 23,680 26,743 27,531 18,912 21,490 24,714 27,783 24,679 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0 n.a. Coupon securities, by maturity 11 Five years or less 7,803 10,122 4,304 7,435 2,222 2,345 3,937 7,879 8,087 5,950 6,602 12 More than five years -420 9,652 324 5,893 284 484 — 1,932 30 189 -2,441 1,360 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 -57 -1,669 -594 -692 148 193 -1,051 -1,794 -1,663 -920 -2,237 21 More than five years -1,552 -3,571 -1,103 -2,863 -587 -1,132 -965 -951 253 526 -655 22 Inflation-indexed 0 0 0 0 0 0 0 0 0 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 n.a. 69 175 70 n.a. n.a. 220 n.a. n.a. n.a. n.a. 26 More than five years n.a. 28 29 6 n.a. 39 n.a. n.a. n.a. n.a. n.a. 27 Mortgage-backed 2,105 1,011 -272 1,062 -726 -880 -472 535 1,117 1,005 1,439 Financing5 Reverse repurchase agreements 28 Overnight and continuing 290,610 288,446 288,146 301,622 259,922 313,198 271,979 303,968 273,027 272,027 250,497 29 Term 792,662 806,146 799,629 837,974 894,097 727,327 785,895 770,619 825,534 861,296 884,556 Securities borrowed 30 Overnight and continuing 250,667 255,880 239,510 253,642 239,261 246,802 228,406 237,180 232,345 229,317 216,402 31 Term 91,796 96,565 97,728 98,985 103,531 91,623 99,226 95,703 99,839 109,328 128,040 Securities received as pledge 32 Overnight and continuing n.a. 2,395 1,965 2,351 n.a. 1,907 1,977 1,825 1,674 1,588 1,653 33 Term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Repurchase agreements 34 Overnight and continuing 692,032 694,423 673,755 712,610 647,053 711,383 625,619 697,741 670,499 682,401 644,426 35 Term 680,923 683,085 715,763 720,925 811,122 628,116 729,611 688,027 727,690 762,671 795,103 Securities loaned 36 Overnight and continuing 9,063 9,040 9,049 9,329 9,454 9,199 8,706 8,661 8,599 8,949 9,086 37 Term 7,026 7,090 6,744 7,032 7,005 6,743 6,455 6,633 6,642 7,055 7,277 Securities pledged 38 Overnight and continuing 53,966 54,712 50,099 50,756 50,163 49,651 50,473 49,781 49,688 52,467 48,797 39 Term 8,116 8,382 6,745 8,379 7,927 6,116 6,138 5,989 6,746 8,343 13,601 Collateralized loans 40 Total 23,284 25,763 23,590 30,725 25,868 23,329 22,760 18,639 8,831 9,742 13,434 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 Nonflnancial Statistics • March 2000 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1999 AAggeennccyy 11999955 11999966 11999977 11999988 June July Aug. Sept. Oct. 1 Federal and federally sponsored agencies 844,611 925,823 1,022,609 1,296,477 1,425,396 1,457,925 1,491,900 1,525,916 2 Federal agencies 37,347 29,380 27,792 26,502 26,370 26,204 26,107 26,384 3 Defense Department' 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 99 105 109 114 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 5,765 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 26,364 26,198 26,101 26,378 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 807,264 896,443 994,817 1,269,975 1,399,026 1,431,721 1,465,793 1,499,532 n.a. 11 Federal Home Loan Banks 243,194 263,404 313,919 382,131 437,109 444,775 458,320 481,639 489,401 12 Federal Home Loan Mortgage Corporation 119,961 156,980 169,200 287,396 314,412 334,575 340,972 341,144 352,487 13 Federal National Mortgage Association 299,174 331,270 369,774 460,291 499,897 502,653 517,200 524,880 527,403 14 Farm Credit Banks8 57,379 60,053 63,517 63,488 67,749 66,922 67,269 67,938 68,338 15 Student Loan Marketing Association9 47,529 44,763 37,717 35,399 37,959 40,843 40,310 41,921 n.a. 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8 170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 78,681 58,172 49,090 44,129 40,585 39,901 39,341 43,116 n.a. Lending to federal and federally sponsored agencies 20 Export-Import Bank3 2,044 1,431 552 • 21 Postal Service6 5,765 n.a. n.a. T T T T T 22 Student Loan Marketing Association 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 l A w u ay th o A r s it s y o ciation6 n 3 . , a 2 . 0 0 n n . . a a . . n n . . a a . . t 1 t I iI t I t 1 n a. Other lending14 25 Fanners Home Administration 21,015 18,325 13,530 9,500 7,935 7,445 7,270 7,125 26 Rural Electrification Administration 17,144 16,702 14,898 14,091 13,877 13,944 13,969 13,885 27 Other 29,513 21,714 20,110 20,538 18,773 18,512 18,102 22,106 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 i oo iss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999966 11999977 11999988 May June July Aug. Sept. Oct. Nov. Dec. 1 All issues, new and refunding' 171,222 214,694 262,342 16,234 23,428 18,671 15,746 18,433 17,497 17,428 14,751 By type of issue 2 General obligation 60,409 69,934 87,015 5,294 10,997 6,206 4,268 5,171 4,183 4,996 3,715 3 Revenue 110,813 134,989 175,327 10,941 12,431 12,465 11,478 13,262 13,314 12,433 11,035 By type of issuer 4 State 13,651 18,237 23,506 1,220 1,236 2,194 911 2,341 1,753 929 834 5 Special district or statutory authority 113,228 134,919 178,421 11,279 18,414 13,572 11,578 13,449 12,186 12,613 10,640 6 Municipality, county, or township 44,343 70,558 60,173 3,735 3,779 2,906 3,257 2,642 3,557 3,886 3,277 7 Issues for new capital 112,298 135,519 160,568 12,149 19,509 12,172 12,530 14,973 14,908 14,084 11,475 By use of proceeds 8 Education 26,851 31,860 36,904 2,795 3,793 3,415 2,842 2,885 2,049 2,732 3,095 9 Transportation 12,324 13,951 19,926 1,791 1,650 1,264 1,955 1,886 1,674 892 1,201 10 Utilities and conservation 9,791 12,219 21,037 603 1,594 535 1,038 1,976 1,176 1,893 1,008 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 1,058 739 850 585 1,271 726 668 707 13 Other purposes 32,462 35,095 42,450 3,760 7,195 2,729 3,255 3,941 4,509 5,213 3,141 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 1999 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999966 11999977 11999988 oorr iissssuueerr Apr. May June July Aug. Sept. Oct.r Nov. 1 All issues' 773,110 929,256 1,128,491 85,862 110,475 96,608 96,608 83,466 82,414 58,613 84,932 2 Bonds2 651,104 811,376 1,001,736 76,721 94,713 88,338 83,546 75,708 75,807 47,103 61,033 By type of offering 3 Sold in the United States 567,671 708,188 923,771 65,886 86,730 79,031 69,451 63,383 65,679 37,721 53,908 4 Sold abroad 83,433 103,188 77,965 10,834 7,983 9,306 14,095 12,325 10,128 9,382 7,125 MEMO 5 Private placements, domestic 43,688 54,990 37,845 2,935 5,022 6,441 2,133 1,670 1,372 1,467 n.a. By industry group 6 Nonfinancial 167,904 222,603 307,935 30,676 32,843 24,531 25,526 22,704 20,655 13,990 24,283 7 Financial 483,200 588,773 693,801 46,045 61,870 63,807 58,020 53,005 55,151 33,112 36,750 8 Stocks3 122,006 117,880 126,755 9,141 15,762 8,270 13,062 7,758 6,607 11,510 23,899 By type of offering 9 Public 122,006 117,880 126,755 9,141 15,762 8,270 13,062 7,758 6,607 11,510 23,899 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 7,640 10,425 6,436 11,589 6,379 5,647 10,961 22,667 12 Financial 41,546 57,494 52,642 1,501 5,337 1,834 1,473 1,379 960 549 1,232 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 Nonflnancial Statistics • March 2000 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 IItteemm 11999988 11999999 May June July Aug. Sept. Oct. Nov. Dec. 1 Sales of own shares2 1,461,430 1,790,491 140,422 138,502 140,926 132,991 132,226 140,738 155,490 184,495 2 Redemptions of own shares 1,217,022 1,621,289 127,800 117,953 128,173 125,908 126,207 124,052 143,688 178,157 3 Net sales3 244,408 169,202 12,622 20,550 12,754 7,084 6,019 16,686 11,801 6,338 4 Assets4 4,173,531 5,231,073 4,442,880 4,650,385 4,585,131 4,548,784 4,498,964 4,705,746 4,874,733 5,231,073 5 Cash5 191,393 219,594 211,580 214,779 209,061 209,349 209,709 225,762 214,751 219,594 6 Other 3,982,138 5,011,479 4,231,300 4,435,607 4,376,070 4,339,435 4,289,255 4,479,985 4,659,982 5,011,479 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 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 753.9 837.9 846.1 853.5 858.3 847.9 843.8 834.3 882.0 875.5 879.2 2 Profits before taxes 726.3 795.9 781.9 811.6 788.9 792.0 780.1 766.7 818.1 835.8 853.8 3 Profits-tax liability 223.6 238.3 240.2 244.1 239.9 241.1 244.3 235.6 248.0 254.4 259.4 4 Profits after taxes 502.7 557.6 541.7 567.4 548.9 550.9 535.8 531.0 570.1 581.4 594.3 5 Dividends 297.7 333.7 348.6 344.8 346.5 347.3 348.4 352.2 356.4 361.5 367.3 6 Undistributed profits 205.0 223.9 193.1 222.6 202.5 203.6 187.4 178.8 213.7 219.9 227.0 7 Inventory valuation 3.1 7.4 20.9 4.0 29.5 13.6 19.8 20.8 13.3 -13.6 -26.7 8 Capital consumption adjustment 24.4 34.6 43.3 38.0 39.9 42.4 43.9 46.9 50.6 53.2 52.1 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 1998 1999 AAccccoouunntt 11999977 11999988 11999999 Q2 Q3 Q4 Ql Q2 Q3 ASSETS 1 Accounts receivable, gross2 663.3 711.7 676.0 687.6 711.7 733.8 756.5 776.5 2 Consumer 256.8 261.8 251.3 254.0 261.8 261.7 269.2 271.3 3 Business 318.5 347.5 334.9 335.1 347.5 362.8 373.7 382.9 4 Real estate 87.9 102.3 89.9 98.5 102.3 109.2 113.5 122.3 5 LESS: Reserves for unearned income 52.7 56.3 53.2 52.4 56.3 52.9 53.4 54.0 6 Reserves for losses 13.0 13.8 13.2 13.2 13.8 13.4 13.4 13.6 7 Accounts receivable, net 597.6 641.6 n a. 609.6 622.0 641.6 667.6 689.7 708.8 8 All other 312.4 337.9 340.1 313.7 337.9 363.3 373.2 368.6 9 Total assets 910.0 979.5 949.7 935.7 979.5 1,030.8 1,062.9 1,077.4 LIABILITIES AND CAPITAL 10 Bank loans 24.1 26.3 22.3 24.9 26.3 24.8 25.1 27.0 11 Commercial paper 201.5 231.5 225.9 226.9 231.5 222.9 231.0 205.3 Debt 12 Owed to parent 64.7 61.8 60.0 58.3 61.8 64.6 65.4 84.7 13 Not elsewhere classified 328.8 339.7 348.7 337.6 339.7 366.7 383.1 396.2 14 All other liabilities 189.6 203.2 188.9 185.4 203.2 220.3 226.1 216.0 15 Capital, surplus, and undivided profits 101.3 117.0 103.9 103.6 117.0 131.5 132.2 148.2 16 Total liabilities and capital 910.0 979.5 949.7 936.6 979.5 1,030.8 1,062.9 1,077.4 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 A33 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 1999 TTyyppee ooff ccrreeddiitt 11999966 11999977 11999988 June July Aug. Sept. Oct. Nov. Seasonally adjusted 1 Total 762.4 810.5 875.8 938.1 954.7 967.4 972.8 978.5r 984.4 2 Consumer 307.6 327.9 352.8 372.4 375.9 380.8 381.9 384.0r 385.2 3 Real estate 111.9 121.1 131.4 141.2 144.2 146.7 148.9 149.3 152.7 4 Business 342.9 361.5 391.6 424.5 434.6 439.9 442.0 445.lr 446.5 Not seasonally adjusted 5 Total 769.7 818.1 884.0 942.9 948.9 962.2 968.4 976.7r 985.9 6 Consumer 310.6 330.9 356.1 374.6 378.1 382.0 383.1 384.5r 386.5 7 Motor vehicles loans 86.7 87.0 103.1 108.6 108.5 112.7 109.5 110.2r 111.6 8 Motor vehicle leases 92.5 96.8 93.3 95.6 97.0 98.3 98.1 98.4r 99.1 9 Revolving2 32.5 38.6 32.3 32.4 32.8 33.0 30.7 31.5 30.5 10 Other3 33.2 34.4 33.1 32.6 32.0 31.6 32.8 32.4 33.2 Securitized assets4 11 Motor vehicle loans 36.8 44.3 54.8 65.3 68.3 68.0 73.5 74.1 74.6 12 Motor vehicle leases 8.7 10.8 12.7 11.3 11.1 10.8 10.6 10.3 10.0 13 Revolving .0 .0 8.7 9.7 9.9 9.4 10.2 10.1 10.2 14 Other 20.1 19.0 18.1 19.0 18.4 18.1 17.8 17.6 17.4 15 Real estate 111.9 121.1 131.4 141.2 144.2 146.7 148.9 149.3 152.7 16 One- to four-family 52.1 59.0 75.7 80.5 83.6 86.0 87.7 87.7 89.4 17 Other 30.5 28.9 26.6 33.0 33.1 33.7 34.6 35.1 37.1 Securitized real estate assets4 18 One- to four-family 28.9 33.0 29.0 27.5 27.2 26.8 26.5 26.2 25.9 19 Other .4 .2 .1 .2 .2 .2 .2 .2 .2 20 Business 347.2 366.1 396.5 427.1 426.7 433.5 436.3 442.9r 446.6 21 Motor vehicles 67.1 63.5 79.6 82.8 78.8 78.6 80.3 84.3 85.4 22 Retail loans 25.1 25.6 28.1 30.9 31.7 33.3 34.5 34.9 33.7 23 Wholesale loans5 33.0 27.7 32.8 32.7 27.9 26.8 26.8 30.3 32.6 24 Leases 9.0 10.2 18.7 19.2 19.3 18.5 19.0 19.1 19.2 25 Equipment 194.8 203.9 198.0 208.3 208.5 210.5 208.0 210.7r 210.8 26 Loans 59.9 51.5 50.4 53.3 52.9 53.1 48.2 49.4 49.1 27 Leases 134.9 152.3 147.6 155.1 155.6 157.4 159.8 161.3r 161.6 28 Other business receivables6 47.6 51.1 69.9 82.6 89.2 92.7 94.7 97.1 98.2 Securitized assets4 29 Motor vehicles 24.0 33.0 29.2 32.1 28.4 30.4 31.0 28.8 30.6 30 Retail loans 2.7 2.4 2.6 2.9 2.8 2.7 2.6 2.5 3.0 31 Wholesale loans 21.3 30.5 24.7 27.2 23.5 25.7 26.4 24.3 25.6 32 Leases .0 .0 1.9 2.0 2.0 2.0 2.0 2.0 2.0 3.3 Equipment 11.3 10.7 13.0 13.3 13.8 13.5 14.6 14.3 14.0 34 Loans 4.7 4.2 6.6 6.7 7.1 6.9 7.7 7.6 7.4 35 Leases 6.6 6.5 6.4 6.6 6.7 6.6 6.9 6.8 6.6 36 Other business receivables6 2.4 4.0 6.8 8.0 7.9 7.8 7.7 7.7 7.7 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 baiance 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 statistical release. 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 Nonflnancial Statistics • March 2000 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1999 IItteemm 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 211.0 207.6 213.8 210.3 214.4 220.8 216.3 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 162.0 158.2 163.1 161.8 165.1 167.0 167.2 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 79.0 78.6 78.3 78.8 79.0 77.4 78.6 4 Maturity (years) 28.2 28.4 28.8 28.6 28.5 28.5 29.1 29.1 29.0 29.0 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .72 .83 .68 .64 .71 .73 .71 Yield (percent per year) 6 Contract rate1 7.57 6.95 6.94 6.92 7.16 6.99 6.99 7.06 7.13 7.18 7 Effective rate1,3 7.73 7.08 7.06 7.03 7.29 7.09 7.09 7.17 7.24 7.28 8 Contract rate (HUD series)4 7.76 7.00 7.45 7.59 7.75 7.87 7.76 7.77 7.79 7.95 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.13 8.00 8.10 8.05 8.02 8.06 8.55 10 GNMA securities6 7.26 6.43 7.03 7.21 7.28 7.53 7.42 7.52 7.37 7.58 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 473,315 480,651 495,302 504,938 509,990 518,337 523,941 12 FHA/VA insured 31,925 33,770 55,318 41,143 44,132 47,846 49,456 50,639 52,632 55,318 13 Conventional 284,753 380,745 468,623 432,172 436,519 447,456 455,482 459,351 465,705 468,623 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 15,934 14,004 21,094 15,200 10,057 14,683 11,416 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 19,507 12,966 18,153 7,998 10,480 12,050 9,931 16 To sell8 1,298 1,880 5,900 351 260 478 609 1,710 381 1,592 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 164,421 255,010 324,443 299,184 300,093 306,214 315,968 318,682 323,027 324,443 18 FHA/VA insured 177 785 1,848 1,726 1,735 1,708 1,689 1,744 l,848r 1,848 19 Conventional 164,244 254,225 322,595 297,458 298,358 304,506 314,279 316,938 321,1791 322,595 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 21,950 17,602 18,674 15,238 13,323 11,869 9,335 21 Sales 114,258 250,565 233,031 20,349 16,835 17,468 14,153 12,671 11,129 8,589 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 21,610 14,988 18,951 14,608 10,810 10,501 11,587 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 A3 5 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1998 1999 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999955 11999966 11999977 Q3 Q4 Q1 Q2 Q3P 1 All holders 4,603,981 4,901,568 5,216,785 5,574,398 5,728,167 5,867,271 6,019,110 6,181,073 By type of property 7 One- to four-family residences 3,510,319 3,721,917 3,959,565 4,223,398 4,328,434 4,420,931 4,533,159 44,,664477,,888811 3 Multifamily residences 277,002 294,783 310,456 330,595 340,773 351,643 359,275 372,474 4 Nonfarm, nonresidential 732,100 797,734 856,464 926,039 962,454 997,294 1,027,022 1,058,954 5 84,561 87,134 90,299 94,366 96,506 97,404 99,655 101,764 By type of holder 6 Major financial institutions 1,900,089 1,981,885 2,083,978 2,137,438 2,194,814 2,202,241 2,242,515 22,,332211,,998822 7 Commercial banks2 1,090,189 1,145,389 1,245,315 1,295,828 1,337,217 1,336,669 1,361,355 1,418,510 8 One- to four-family 646,545 677,603 745,510 770,340 797,196 782,128 790,125 824,677 9 Multifamily 42,521 45,451 49,670 52,205 52,871 56,170 58,572 63,130 10 Nonfarm, nonresidential 377,293 397,452 423,148 444,596 458,115 468,859 482,115 499,327 11 Farm 23,830 24,883 26,986 28,688 29,035 29,512 30,544 31,377 1? Savings institutions3 596,763 628,335 631,822 634,251 643,957 646,510 656,518 676,260 13 One- to four-family 482,353 513,712 520,672 525,844 533,792 534,772 544,832 560,447 14 Multifamily 61,987 61,570 59,543 56,696 56,825 56,763 55,020 57,285 15 Nonfarm, nonresidential 52,135 52,723 51,252 51,312 52,923 54,539 56,222 58,070 16 Farm 288 331 354 399 417 435 443 459 17 Life insurance companies 213,137 208,161 206,841 207,359 213,640 219,063 224,642 227,212 18 One- to four-family 8,890 6,977 7,187 6,594 6,590 6,956 7,295 7,548 19 Multifamily 28,714 30,750 30,402 30,565 31,522 31,528 31,813 32,120 70 Nonfarm, nonresidential 165,876 160,314 158,780 159,189 164,004 168,862 173,568 175,242 21 Farm 9,657 10,120 10,472 11,011 11,524 11,717 11,966 12,302 22 Federal and related agencies 308,757 295,192 286,167 287,125 292,636 288,216 288,038 289,159 23 Government National Mortgage Association 2 2 8 7 7 6 8 8 24 One to four-family 2 2 8 7 7 6 8 8 25 Multifamily 0 0 0 0 0 0 0 0 76 Farmers Home Administration4 41,791 41,596 41,195 40,907 40,851 40,691 40,766 40,766 71 One- to four-family 17,705 17,303 17,253 17,025 16,895 16,777 16,653 16,653 78 Multifamily 11,617 11,685 11,720 11,736 11,739 11,731 11,735 11,735 79 Nonfarm, nonresidential 6,248 6,841 7,370 7,566 7,705 7,769 7,943 7,943 30 Farm 6,221 5,768 4,852 4,579 4,513 4,413 4,435 4,435 31 Federal Housing and Veterans' Administrations 9,809 6,244 3,821 3,405 3,674 3,578 3,490 3,889 37 One- to four-family 5,180 3,524 1,767 1,550 1,849 1,753 1,623 2,013 33 Multifamily 4,629 2,719 2,054 1,855 1,825 1,825 1,867 1,876 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 2,431 724 482 361 315 189 163 40 One to four-family 492 365 109 72 54 47 28 24 41 Multifamily 428 413 123 82 61 54 32 28 47 Nonfarm, nonresidential 3,383 1,653 492 328 245 214 129 111 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 178,807 168,813 161,308 159,104 157,675 157,185 155,637 154,420 45 One- to four-family 163,648 155,008 149,831 149,069 147,594 147,063 145,033 142,982 46 Multifamily 15,159 13,805 11,477 10,035 10,081 10,122 10,604 11,438 47 Federal Land Banks 28,428 29,602 30,657 32,009 32,983 33,128 33,666 34,218 48 One- to four-family 1,673 1,742 1,804 1,883 1,941 1,949 1,981 2,013 49 Farm 26,755 27,860 28,853 30,126 31,042 31,179 31,685 32,205 50 Federal Home Loan Mortgage Corporation 43,753 46,504 48,454 51,211 57,085 53,313 54,282 55,695 51 One- to four-family 39,901 41,758 42,629 44,254 49,106 44,140 43,574 44,010 52 Multifamily 3,852 4,746 5,825 6,957 7,979 9,173 10,708 11,685 53 Mortgage pools or trusts5 1,863,210 2,064,882 2,273,022 2,548,301 2,632,829 2,762,733 2,861,115 2,928,475 54 Government National Mortgage Association 472,283 506,340 536,879 541,540 537,446 543,280 553,242 569,155 55 One- to four-family 461,438 494,158 523,225 527,043 522,498 527,886 537,333 552,787 56 Multifamily 10,845 12,182 13,654 14,497 14,948 15,395 15,909 16,368 57 Federal Home Loan Mortgage Corporation 515,051 554,260 579,385 635,726 646,459 687,179 718,085 738,581 58 One- to four-family 512,238 551,513 576,846 633,124 643,465 684,240 714,844 735,088 59 Multifamily 2,813 2,747 2,539 2,602 2,994 2,939 3,241 3,493 60 Federal National Mortgage Association 582,959 650,780 709,582 798,460 834,518 881,815 911,435 938,484 61 One- to four-family 569,724 633,210 687,981 770,979 804,205 849,513 877,863 903,531 62 Multifamily 13,235 17,570 21,601 27,481 30,313 32,302 33,572 34,953 63 Farmers Home Administration4 11 3 2 2 1 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 1 1 1 1 68 Private mortgage conduits 292,906 353,499 447,173 572,573 614,405 650,459 678,353 682,254 69 One- to four-family6 227,800 261,900 318,000 391,736 410,900 430,653 447,938 438,676 70 Multifamily 15,584 21,967 29,218 40,895 44,644 48,393 50,679 52,851 71 Nonfarm, nonresidential 49,522 69,633 99,955 139,942 158,861 171,413 179,736 190,727 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 531,926 559,609 573,619 601,534 607,888 614,081 627,442 641,457 74 One- to four-family 372,037 363,143 366,744 383,877 392,343 393,047 404,028 417,424 75 Multifamily 64,970 69,179 72,629 74,987 74,971 75,249 75,524 75,512 76 Nonfarm, nonresidential 77,112 109,119 115,467 123,107 120,600 125,638 127,310 127,536 77 Farm 17,806 18,169 18,779 19,562 19,974 20,147 20,580 20,985 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 Nonflnancial Statistics • March 2000 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1999 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999966 11999977 11999988 June July Aug. Sept. Oct.r Nov. Seasonally adjusted 1 Total 1,182,439 1,234,122 1,300,491 1,347,831 1,356,404 1,363,184 l,366,575r 1,371,818 1,387,432 2 Revolving 499,532 531,295 560,653 578,530 583,309 584,523 584,512r 584,287 588,707 3 Nonrevolving2 682,907 702,828 739,838 769,301 773,096 778,661 782,063r 787,531 798,726 Not seasonally adjusted 4 Total 1,211,590 1,264,103 1,331,742 1,340,414 1,349,610 1,364,404 l,370,079r 1,376,935 1,394,096 By major holder Commercial banks 526,769 512,563 508,932 477,774 477,908 476,561 472,524 473,507 482,392 6 Finance companies 152,391 160,022 168,491 173,617 173,374 177,331 172,956 174,081 175,296 7 Credit unions 144,148 152,362 155,406 158,177 159,920 162,412 164,055 165,912 167,704 8 Savings institutions 44,711 47,172 51,611 57,161 58,126 59,091 60,055 61,020 61,984 9 Nonfinancial business 77,745 78,927 74,877 68,042 68,235 68,896 67,456r 67,961 70,316 10 Pools of securitized assets3 265,826 313,057 372,425 405,643 412,047 420,113 433,033 434,454 436,404 By major type of credit4 11 Revolving 522,860 555,858 586,528 572,463 575,499 580,691 581,361r 583,055 591,078 12 Commercial banks 228,615 219,826 210,346 178,031 175,928 170,272 168,882 167,469 172,345 13 Finance companies 32,493 38,608 32,309 32,408 32,846 33,014 30,731 31,453 30,512 14 Credit unions 17,826 19,552 19,930 18,856 19,054 19,335 19,489 19,452 19,727 15 Savings institutions 10,313 11,441 12,450 12,775 13,004 13,233 13,461 13,690 13,918 16 Nonfinancial business 44,901 44,966 39,166 34,618 34,830 35,421 34,156' 34,541 36,041 17 Pools of securitized assets' 188,712 221,465 272,327 295,775 299,837 309,416 314,642 316,450 318,535 18 Nonrevolving 688,730 708,245 745,214 767,951 774,111 783,713 788,718r 793,880 803,018 19 Commercial banks 298,154 292,737 298,586 299,743 301,980 306,289 303,642 306,038 310,047 20 Finance companies 119,898 121,414 136,182 141,209 140,528 144,317 142,225 142,628 144,784 21 Credit unions 126,322 132,810 135,476 139,321 140,866 143,077 144,566 146,460 147,977 22 Savings institutions 34.398 35,731 39,161 44,386 45,122 45,858 46,594 47,330 48,066 23 Nonfinancial business 32,844 33,961 35,711 33,424 33,405 33,475 33,300r 33,420 34,275 24 Pools of securitized assets3 77,114 91,592 100,098 109,868 112,210 110,697 118,391 118,004 117,869 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 1999 IItteemm 11999966 11999977 11999988 May June July Aug. Sept. Oct. Nov. INTEREST RATES Commercial banks2 1 48-month new car 9.05 9.02 8.72 8.30 n.a. n.a. 8.44 n.a. n.a. 8.66 2 24-month personal 13.54 13.90 13.74 13.26 n.a. n.a. 13.38 n.a. n.a. 13.52 Credit card plan 3 All accounts 15.63 15.77 15.71 15.21 n.a. n.a. 15.08 n.a. n.a. 15.13 4 Accounts assessed interest 15.50 15.57 15.59 14.94 n.a. n.a. 14.79 n.a. n.a. 14.77 Auto finance companies 5 New car 9.84 7.12 6.30 6.57 6.60 6.68 6.28 6.47 7.07 7.44 6 Used car 13.53 13.27 12.64 12.16 12.31 12.67 12.96 13.13 13.28 13.27 OTHER TERMS3 Maturity (months) 7 New car 51.6 54.1 52.1 52.4 52.3 52.0 51.7 52.1 53.2 53.9 8 Used car 51.4 51.0 53.5 56.1 56.0 56.1 55.8 55.9 55.8 55.8 Loan-to-value ratio 9 New car 91 92 92 92 92 92 92 92 92 91 10 Used car 100 99 99 99 99 99 100 100 100 99 Amount financed (dollars) 11 New car 16,987 18,077 19,083 19,539 19,722 19,873 20,012 20,154 20,335 20,517 12 Used car 12,182 12,281 12,691 13,700 13,816 13,609 13,374 13,449 13,613 13,777 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 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonflnancial sectors 1 Total net borrowing by domestic nonflnancial sectors ... 575.8 721.0 745.4 787.1 1,024.1 1,077.3 1,044.2 900.6 1,074.2 1,288.1 886.6 1,130.9 By sector and instrument 7 Federal government 155.8 144.4 145.0 23.1 -52.6 -14.5 -28.4 -113.5 -54.1 -75.2 -112.2 -83.1 Treasury securities 155.7 142.9 146.6 23.2 -54.6 -12.1 -26.9 -113.1 -66.3 -73.7 -112.8 -83.2 4 Budget agency securities and mortgages .2 1.5 -1.6 -.1 2.0 -2.4 -1.4 -.4 12.2 -1.5 .6 .0 5 Nonfederal 420.0 576.6 600.3 764.0 1,076.7 1,091.8 1,072.6 1,014.1 1,128.3 1,363.3 998.7 1,214.1 By instrument 6 Commercial paper 21.4 18.1 -.9 13.7 24.4 51.1 3.8 85.6 -43.0 64.4 3.4 55.8 7 Municipal securities and loans -35.9 -48.2 2.6 71.4 96.8 113.5 101.3 82.9 89.6 100.7 48.0 74.8 8 Corporate bonds 23.3 91.1 116.3 150.5 218.7 278.8 294.8 108.0 193.2 274.0 287.6 202.8 Bank loans n.e.c 75.2 103.7 70.5 106.5 108.2 35.0 169.2 107.8 120.9 70.0 22.2 107.4 in Other loans and advances 34.0 67.2 33.5 69.1 74.3 76.3 40.8 77.7 102.5 151.0 -16.7 85.9 ii Mortgages 177.0 205.7 289.7 300.2 486.6 478.2 400.7 472.6 595.1 573.9 594.1 611.9 1? Home 183.4 180.4 245.3 237.6 367.9 378.3 289.1 375.2 429.1 415.1 422.9 436.0 n Multifamily residential -2.1 7.6 11.5 10.8 22.4 21.6 21.1 16.1 30.6 35.9 34.7 49.6 14 Commercial -6.5 16.2 30.4 48.7 90.2 74.1 83.8 75.9 126.8 119.3 127.5 117.9 is Farm 2.2 1.6 2.6 3.2 6.2 4.1 6.7 5.5 8.6 3.6 9.0 8.4 16 Consumer credit 124.9 138.9 88.8 52.5 67.6 58.9 62.1 79.6 69.9 129.2 60.1 75.4 By borrowing sector 17 Household 316.3 350.9 354.0 327.3 471.9 465.1 420.3 473.4 552288..66 556.4 551177..11 556666..00 18 Nonflnancial business 150.0 277.2 253.2 380.6 524.5 532.5 570.3 470.7 524.6 719.5 445.9 595.3 19 Corporate 142.3 243.7 164.6 297.0 418.5 426.9 467.4 365.8 413.7 611.2 332.6 469.3 7,0 Nonfarm noncorporate 3.3 30.6 83.8 77.4 98.4 97.1 95.4 97.6 103.3 101.6 114.2 115.5 71 Farm 4.4 2.9 4.8 6.2 7.7 8.4 7.5 7.3 7.5 6.6 -.9 10.5 22 State and local government -46.2 -51.5 -6.8 56.1 80.3 94.2 82.0 70.0 75.1 87.4 35.7 52.8 23 Foreign net borrowing in United States -13.9 71.1 77.2 57.6 33.6 95.0 97.9 -19.6 -38.9 17.3 -36.4 62.6 74 Commercial paper -26.1 13.5 11.3 3.7 7.8 55.3 -25.5 6.2 -4.7 18.3 —27.1 41.4 75 Bonds 12.2 49.7 55.8 47.2 25.1 42.5 119.2 -27.2 -34.2 .9 -12.6 29.4 76 Bank loans n.e.c 1.4 8.5 9.1 8.5 6.7 5.2 8.4 3.6 9.8 .9 5.6 -6.6 27 Other loans and advances -1.4 -.5 1.0 -1.8 -6.0 -8.0 -4.2 -2.2 -9.7 -2.8 -2.3 -1.6 28 Total domestic plus foreign 561.9 792.1 822.6 844.7 1,057.7 1,172.3 1,142.1 881.0 1,035.3 1,305.4 850.1 1,193.5 Financial sectors 29 Total net borrowing by financial sectors 468.4 453.9 548.9 652.2 1,068.8 931.3 988.9 1,056.3 1,298.7 1,214.2 1,042.9 1,046.5 By instrument 30 Federal government-related 287.5 204.1 231.5 212.8 470.9 249.2 405.4 555.8 673.3 592.2 579.1 665533..22 31 Government-sponsored enterprise securities 176.9 105.9 90.4 98.4 278.3 142.5 166.4 294.0 510.5 193.0 304.7 407.1 32 Mortgage pool securities 115.4 98.2 141.1 114.5 192.6 106.7 239.0 261.7 162.8 399.2 274.4 246.2 33 Loans from U.S. government -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 180.9 249.8 317.5 439.4 597.9 682.1 583.5 500.5 625.4 622.0 463.8 393.2 35 Open market paper 40.5 42.7 92.2 166.7 161.0 236.7 135.6 141.0 130.7 78.3 57.8 89.8 36 Corporate bonds 121.8 195.9 176.9 209.0 291.8 346.3 361.8 177.4 281.9 490.8 289.8 148.1 37 Bank loans n.e.c -13.7 2.5 12.6 13.2 30.1 57.3 -9.7 60.2 12.4 -8.8 10.5 -1.2 38 Other loans and advances 22.6 3.4 27.9 35.6 90.2 32.7 76.0 82.3 169.9 41.6 117.9 147.2 39 Mortgages 9.8 5.3 7.9 14.9 24.8 9.1 19.9 39.6 30.6 20.1 -12.3 9.4 By borrowing sector 40 Commercial banking 20.1 22.5 13.0 46.1 72.9 82.8 80.8 61.7 6666..33 31.1 7722..77 111111..44 41 Savings institutions 12.8 2.6 25.5 19.7 52.2 10.6 31.2 63.7 103.2 58.0 58.6 55.2 47 Credit unions .2 -.1 .1 .1 .6 .5 .2 1.0 .4 1.5 1.4 2.8 43 Life insurance companies .3 -.1 1.1 .2 .7 .0 -.6 1.6 1.8 3.3 3.0 1.1 44 Government-sponsored enterprises 172.1 105.9 90.4 98.4 278.3 142.5 166.4 294.0 510.5 193.0 304.7 407.1 45 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 106.7 239.0 261.7 162.8 399.2 274.4 246.2 46 Issuers of asset-backed securities (ABSs) 76.5 142.4 153.9 200.7 316.3 283.0 352.4 294.2 335.7 300.5 335.8 190.5 47 Finance companies 48.7 50.2 45.9 48.7 43.0 74.6 91.9 -12.0 17.8 71.2 88.4 -22.7 48 Mortgage companies -11.5 -2.2 4.1 -4.6 1.6 29.4 -28.2 2.3 3.0 -4.6 5.1 -1.1 49 Real estate investment trusts (REITs) 10.2 4.5 11.9 39.6 62.7 63.1 64.4 79.3 44.0 25.6 -19.7 7.9 50 Brokers and dealers .5 -5.0 -2.0 8.1 7.2 -1.0 20.0 -2.6 12.4 -31.1 -17.4 16.9 51 Funding corporations 23.1 34.9 64.1 80.7 40.7 139.2 -28.6 11.2 40.9 166.5 -63.8 31.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A38 Domestic Nonflnancial Statistics • March 2000 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Ql Q2 Q3 Q4 Ql Q2 Q3 All sectors 52 Total net borrowing, all sectors 1,030.3 1,246.0 1,371.5 1,496.9 2,126.5 2,103.6 2,131.0 1,937.3 2,334.0 2,519.6 1,893.0 2,240.0 53 Open market paper 35.7 74.3 102.6 184.1 193.1 343.0 113.8 232.7 83.0 161.1 34.1 187.0 54 U.S. government securities 448.1 348.5 376.5 235.9 418.3 234.7 377.1 442.3 619.1 517.0 467.0 570.1 55 Municipal securities -35.9 -48.2 2.6 71.4 96.8 113.5 101.3 82.9 89.6 100.7 48.0 74.8 56 Corporate and foreign bonds 157.3 336.7 348.9 406.7 535.6 667.6 775.8 258.2 440.9 765.7 564.8 380.2 57 Bank loans n.e.c 62.9 114.7 92.1 128.2 145.0 97.6 167.9 171.6 143.0 62.1 38.3 99.6 58 Other loans and advances 50.4 70.1 62.5 102.8 158.5 101.0 112.5 157.8 262.7 189.8 98.9 231.5 59 Mortgages 186.8 211.0 297.6 315.1 511.4 487.3 420.5 512.2 625.7 594.0 581.8 621.3 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 58.9 62.1 79.6 69.9 129.2 60.1 75.4 Funds raised through mutual funds and corporate equities 61 Total net issues 113.4 131.5 209.1 165.6 75.2 215.2 262.0 -166.7 -9.8 121.3 113.2 57.0 62 Corporate equities 12.8 -16.0 -28.5 -99.6 -199.4 -107.1 -115.8 -340.1 -234.6 -132.0 -94.9 -69.6 63 Nonfinancial corporations -44.9 -58.3 -69.5 -114.4 -267.0 -139.2 -129.1 -308.4 -491.3 -65.7 -374.0 -153.0 64 Foreign shares purchased by U.S. residents 48.1 50.4 60.0 42.0 77.8 14.0 12.3 -32.8 317.4 -33.4 270.9 76.7 65 Financial corporations 9.6 -8.1 -19.0 -27.1 -10.2 18.1 1.0 1.0 -60.8 -32.9 8.2 6.7 66 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 322.3 377.8 173.4 224.8 253.3 208.2 126.7 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 A39 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 QL Q2 Q3 Q4 QL Q2 Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,030.3 1,246.0 1,371.5 1,496.9 2,126.5 2,103.6 2,131.0 1,937.3 2,334.0 2,519.6 1,893.0 2,240.0 ? Domestic nonfederal nonfinancial sectors 231.2 -89.4 24.8 -67.9 73.3 -39.5 521.8 111.1 -300.4 310.0 346.5 106.1 Household 268.0 6.1 63.7 -65.2 -28.1 -54.0 395.4 -28.3 -425.5 261.1 288.9 140.4 4 Nonfinancial corporate business 17.7 -8.8 -.8 -2.3 1.9 8.4 -47.9 13.7 33.3 -3.6 4.5 -19.8 Nonfarm noncorporate business .6 4.7 -4.3 -.6 .0 .0 .0 .0 .0 .4 -.2 -.6 6 State and local governments -55.0 -91.4 -33.7 .1 99.5 6.1 174.3 125.7 91.7 52.2 53.3 -13.9 7 Federal government -27.4 -.2 -7.4 5.1 13.5 15.7 12.9 13.8 11.7 17.1 6.7 16.6 8 Rest of the world 132.3 273.9 414.4 310.7 249.3 223.8 321.8 60.8 390.7 250.2 35.1 372.1 9 Financial sectors 694.1 1,061.7 939.7 1,249.0 1,790.4 1,903.6 1,274.6 1,751.5 2,232.1 1,942.2 1,504.8 1,745.1 10 Monetary authority 31.5 12.7 12.3 38.3 21.1 27.6 11.5 41.6 3.5 71.8 62.4 34.1 11 Commercial banking 163.4 265.9 187.5 324.3 305.2 306.7 132.7 250.1 531.5 68.9 135.4 435.1 1? U.S.-chartered banks 148.1 186.5 119.6 274.9 312.0 268.4 130.0 309.2 540.2 134.1 231.5 410.1 13 Foreign banking offices in United States 11.2 75.4 63.3 40.2 -11.9 17.5 15.2 -68.1 -12.1 -54.9 -105.7 30.7 14 Bank holding companies .9 -.3 3.9 5.4 -.9 15.3 -17.6 6.0 -7.4 -6.0 .4 -12.4 15 Banks in U.S.-affiliated areas 3.3 4.2 .7 3.7 6.0 5.5 5.1 2.9 10.7 -4.4 9.2 6.6 16 Savings institutions 6.7 -7.6 19.9 -4.7 36.3 11.8 2.1 17.9 113.3 102.7 88.8 61.0 17 Credit unions 28.1 16.2 25.5 16.8 19.0 16.1 22.7 21.0 16.0 34.7 32.1 38.8 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 -10.5 -11.3 -16.0 -13.5 -7.6 -8.4 -8.6 19 Life insurance companies 72.0 100.0 69.6 104.8 76.9 92.5 63.4 65.6 86.0 82.2 84.0 68.9 70 Other insurance companies 24.9 21.5 22.5 25.2 20.4 23.4 -1.5 -7.7 67.6 -19.7 26.7 -8.6 71 Private pension funds 46.1 56.0 52.3 65.5 118.7 74.5 130.1 95.6 174.4 60.5 150.0 45.4 27 State and local government retirement funds 30.9 33.6 37.3 63.8 65.0 67.4 78.4 65.6 48.5 77.2 40.7 24.1 73 Money market mutual funds 30.0 86.5 88.8 87.5 244.0 159.3 208.1 255.5 353.1 227.6 -92.6 232.1 74 Mutual funds -7.1 52.5 48.9 80.9 124.8 156.4 146.4 92.9 103.5 103.0 121.0 -32.8 75 Closed-end funds -3.7 10.5 4.7 -2.9 4.5 4.5 4.5 4.5 4.5 4.4 4.4 4.3 26 Government-sponsored enterprises 117.8 86.7 84.2 94.3 260.8 198.3 150.6 264.7 429.5 157.2 259.2 287.5 27 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 106.7 239.0 261.7 162.8 399.2 274.4 246.2 78 Asset-backed securities issuers (ABSs) 69.4 120.6 123.6 162.3 276.7 223.9 321.4 248.7 312.7 282.9 319.0 181.9 79 Finance companies 48.3 49.9 18.4 21.9 51.9 28.7 24.0 79.5 75.3 92.2 79.6 94.5 30 Mortgage companies -24.0 -3.4 8.2 -9.1 3.2 58.8 -56.4 4.5 6.0 -9.1 10.2 -2.1 31 Real estate investment trusts (REITs) -.7 1.4 4.4 20.2 -5.1 25.6 6.1 -11.3 -40.8 1.7 -2.2 -2.7 37 Brokers and dealers -44.2 90.1 -15.7 14.9 -17.4 245.8 -183.1 77.0 -209.1 184.5 -191.0 15.7 33 Funding corporations -17.8 -21.2 14.0 55.6 4.7 86.0 -14.3 -60.1 7.2 27.9 111.0 30.4 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,030.3 1,246.0 1,371.5 1,496.9 2,126.5 2,103.6 2,131.0 1,937.3 2,334.0 2,519.6 1,893.0 2,240.0 Other financial sources 35 Official foreign exchange -5.8 8.8 -6.3 .7 6.6 1.0 88..11 88..99 88..66 --1144..00 --55..44 --88..55 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 .0 ..00 .0 .0 -4.0 .0 -4.0 37 Treasury currency .7 .6 .1 .0 .0 .3 .2 1.7 -2.3 .0 2.1 2.0 38 Foreign deposits 52.9 35.3 85.9 106.8 -.2 -46.5 92.9 84.9 -131.9 127.7 99.3 63.6 39 Net interbank transactions 89.8 10.0 -51.6 -19.7 -33.5 -95.2 40.1 43.9 -122.8 48.5 90.2 -52.0 40 Checkable deposits and currency -9.7 -12.7 15.8 41.5 47.6 52.6 90.1 -24.9 72.8 61.1 10.1 141.4 41 Small time and savings deposits -39.9 96.6 97.2 97.1 152.4 99.0 84.9 144.7 281.2 -68.0 100.0 145.5 47 Large time deposits 19.6 65.6 114.0 122.5 92.1 187.8 -5.6 81.8 104.4 -5.9 42.6 102.4 43 Money market fund shares 43.3 142.3 145.8 157.6 285.5 213.6 247.2 367.9 313.1 204.9 100.5 180.3 44 Security repurchase agreements 78.2 110.5 41.4 120.9 52.6 250.3 -100.8 231.1 -170.3 408.2 -14.5 128.5 45 Corporate equities 12.8 -16.0 -28.5 -99.6 -199.4 -107.1 -115.8 -340.1 -234.6 -132.0 -94.9 -69.6 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 322.3 377.8 173.4 224.8 253.3 208.2 126.7 47 Trade payables 120.0 128.9 114.8 125.9 31.5 138.6 -27.9 63.8 -48.3 175.1 235.6 88.4 48 Security credit -.1 26.7 52.4 111.0 108.3 159.3 134.3 167.0 -27.2 -86.9 134.1 -8.3 49 Life insurance reserves 35.5 45.8 44.5 59.3 53.3 49.3 53.3 51.7 59.0 40.8 59.6 43.4 50 Pension fund reserves 254.7 235.1 246.9 304.0 290.2 294.7 272.9 279.5 313.8 285.7 324.4 327.8 51 Taxes payable 2.6 6.2 16.0 16.8 12.6 12.2 1.8 27.5 8.8 -8.2 39.5 28.5 57 Investment in bank personal trusts 17.8 4.0 -8.6 -56.3 -48.0 -45.7 -46.5 -51.2 -48.8 -32.0 -25.9 -23.5 53 Noncorporate proprietors' equity 58.2 65.2 3.4 11.1 -16.0 -8.6 -13.9 -60.9 19.4 14.1 22.1 -32.6 54 Miscellaneous 245.6 444.6 498.3 516.2 669.2 1,069.4 295.6 731.2 580.7 216.5 1,114.3 317.8 55 Total financial sources 2,107.1 2,793.1 2,990.3 3,377.4 3,906.0 4,650.8 3,519.8 3,919.2 3,534.2 4,004.6 4,334.9 3,737.7 Liabilities not identified as assets (—) 56 Treasury currency -.2 -.5 -.9 -.6 -.7 -.2 -.3 1.1 -3.4 -1.5 ..66 .5 57 Foreign deposits 43.0 25.1 59.6 106.8 -8.1 -95.7 149.9 69.9 -156.5 62.7 84.4 33.6 58 Net interbank liabilities -2.7 -3.1 -3.3 -19.9 3.4 35.1 8.9 22.3 -52.8 58.7 -1.7 -.7 59 Security repurchase agreements 67.7 20.2 4.5 62.3 15.2 120.8 -170.0 110.2 .0 364.1 80.0 43.5 60 Taxes payable 16.6 21.1 22.8 26.8 17.8 14.2 9.1 28.2 19.6 -15.6 2.5 33.0 61 Miscellaneous -128.0 -188.5 -37.6 -225.9 -30.7 125.1 -245.6 -81.1 78.6 -489.5 -550.9 -599.5 Floats not included in assets (—) 62 Federal government checkable deposits -4.8 -6.0 .5 -2.7 2.6 8.3 -44.4 32.4 14.0 -1.8 -41.4 27.9 63 Other checkable deposits -2.8 -3.8 -4.0 -3.9 -3.1 -4.0 -2.9 -3.6 -1.8 -1.9 -1.0 -.5 64 Trade credit 27.4 15.6 -21.2 33.2 -31.0 72.2 -110.5 -64.4 -21.1 67.1 -20.7 -19.9 65 Total identified to sectors as assets 2,090.9 2,913.1 2,970.0 3,401.3 3,940.6 4,375.1 3,925.7 3,804.2 3,657.5 3,962.4 4,783.1 4,219.7 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l 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 Nonflnancial Statistics • March 2000 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999988 Ql Q2 Q3 Q4 Ql ' Q2r Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,734.9r 14,480.3r 15,265.8r 16,289.9 15,527.4r 15,747.8r 15,962.2r 16,289.9r 16,604.3r 16,780.3 17,055.3 By sector and instrument 2 Federal government 3,636.7 3,781.8 3,804.9 3,752.2 3,830.8 3,749.0 3,720.2 3,752.2 3,759.7 3,651.7 3,632.7 Treasury securities 3,608.5 3,755.1 3,778.3 3,723.7 3,804.8 3,723.4 3,694.7 3,723.7 3,731.6 3,623.4 3,604.5 4 Budget agency securities and mortgages 28.2 26.6 26.5 28.5 25.9 25.6 25.5 28.5 28.1 28.3 28.3 5 Nonfederal 10,098.2r 10,698.5r 11,461.0r 12,537.7 ll,696.6r 11,998.8r 12,242.0r 12,537.7r 12,844.6r 13,128.6 13,422.6 By instrument 6 Commercial paper 157.4 156.4 168.6 193.0 193.1 202.5 216.9 193.0 223.9 232.4 239.3 7 Municipal securities and loans 1,293.5 1,296.0 1,367.5 1,464.3 1,397.1 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.1 8 Corporate bonds 1,344.1 1,460.4 1,610.9 1,829.6 1,680.6 1,754.3 1,781.3 1,829.6 1,898.1 1,970.0 2,020.7 y Bank loans n.e.c 863.6 934.1 1,040.5 1,148.8 1,047.9 1,097.6 1,120.6 1,148.8 1,165.2 1,178.5 1,201.6 10 Other loans and advances 736.9 770.4 839.5 913.8 863.5 873.1 886.8 913.8 956.7r 952.1 967.5 11 Mortgages 4,580.0r 4,869.7r 5,169.9r 5,656.6 5,278.5r 5,385.3r 5,510.0r 5,656.6r 5,790.5r 5,945.2 6,105.3 12 Home 3,510.4r 3,721.9r 3,959.5r 4,327.5 4,043. lr 4,122.0r 4,222.4r 4,327.5r 4,420.3r 4,532.1 4,648.2 13 Multifamily residential 269.1 284.3 295.0 317.4 300.4 305.7 309.7 317.4 326.6 335.3 347.7 14 Commercial 716.0 776.4 825.1 915.3 843.6 864.6 883.6 915.3 946.3 978.2 1,007.6 15 Farm 84.6 87.1 90.3 96.5 91.3 93.0 94.4 96.5 97.4 99.7 101.8 16 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,236.0 1,256.8 1,286.6 1,331.7 l,319.3r 1,340.4 1,370.2 By borrowing sector 17 Household 4,782.8r 5,108.0r 5,438.0r 5,909.9 5,499.7r 5,618.8r 5,752. lr 5,909.9r 5,993.0r 6,136.7 6,294.5 18 Nonfinancial business 4,245.2 4,527.1 4,903.5 5,428.0 5,052.6 5,209.2 5,311.1 5,428.0 5,628.4r 5,753.6 5,886.7 19 Corporate 2,947.7 3,141.0 3,433.8 3,852.2 3,559.4 3,686.4 3,762.5 3,852.2 4,028.6r 4,121.5 4,223.6 20 Nonfarm noncorporate 1,152.4 1,236.1 1,313.6 1,411.9 1,337.9 1,361.8 1,385.5 1,411.9 l,437.4r 1,466.0 1,494.2 21 Farm 145.1 149.9 156.1 163.8 155.3 161.0 163.1 163.8 162.4 166.1 168.9 22 State and local government 1,070.2 1,063.4 1,119.5 1,199.8 1,144.3 1,170.8 1,178.8 1,199.8 1,223.2 1,238.2 1,241.4 23 Foreign credit market debt held in United States 441.4 518.7 570.1 603.7 591.6 617.1 612.8 603.7 607.8 598.2 614.7 24 Commercial paper 56.2 67.5 65.1 72.9 76.7 71.4 74.0 72.9 77.2 70.1 81.8 25 Bonds 291.9 347.7 394.9 420.0 405.6 435.4 428.6 420.0 420.2 417.1 424.4 26 Bank loans n.e.c 34.6 43.7 52.1 58.9 53.4 55.5 56.4 58.9 59.1 60.5 58.8 27 Other loans and advances 58.8 59.8 58.0 52.0 55.9 54.8 53.8 52.0 51.3 50.5 49.7 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,176.4r 14,998.9r 15,836.0r 16,893.6 16,119.0r 16,364.8r 16,574.9r 16,893.6r 17,212.1r 17,378.4 17,670.0 Financial sectors 29 Total credit market debt owed by financial sectors 4,278.8 4,827.7 5,446.8 6,515.6 5,670.1 5,926.8 6,195.5 6,515.6 6,809.2r 7,080.3 7,346.7 By instrument 30 Federal government-related 2,376.8 2,608.3 2,821.1 3,292.0 2,878.0 2,981.4 3,121.7 3,292.0 3,434.1 3,580.8 3,746.0 31 Government-sponsored enterprise securities 806.5 896.9 995.3 1,273.6 1,030.9 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 32 Mortgage pool securities 1,570.3 1,711.4 1,825.8 2,018.4 1,847.1 1,908.9 1,975.7 2,018.4 2,112.3 2,182.8 2,246.2 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 1,901.9 2,219.4 2,625.7 3,223.6 2,792.1 2,945.4 3,073.8 3,223.6 3,375.1r 3,499.6 3,600.7 35 Open market paper 486.9 579.1 745.7 906.7 804.9 838.9 874.2 906.7 926.4 940.9 963.4 36 Corporate bonds 1,204.7 1,381.5 1,557.5 1,849.4 1,640.8 1,738.7 1,786.2 1,849.4 l,968.9r 2,049.8 2,089.6 37 Bank loans n.e.c 51.4 64.0 77.2 107.2 90.6 88.2 103.2 107.2 104.1 106.8 106.4 38 Other loans and advances 135.0 162.9 198.5 288.7 206.6 225.6 246.2 288.7 299.1 328.6 365.4 39 Mortgages 24.1 31.9 46.8 71.6 49.1 54.1 64.0 71.6 76.6 73.6 75.9 By borrowing sector 40 Commercial banks 102.6 113.6 140.6 188.6 148.7 159.6 169.6 188.6 187.5 202.7 224.2 41 Bank holding companies 148.0 150.0 168.6 193.5 181.2 190.5 196.1 193.5 202.6 205.5 211.9 42 Savings institutions 115.0 140.5 160.3 212.4 162.9 170.7 186.6 212.4 226.9 241.6 255.4 43 Credit unions .4 .4 .6 1.1 .7 .8 1.0 1.1 1.5 1.8 2.5 44 Life insurance companies .5 1.6 1.8 2.5 1.8 1.6 2.0 2.5 3.3 4.0 4.3 45 Government-sponsored enterprises 806.5 896.9 995.3 1,273.6 1,030.9 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 46 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,847.1 1,908.9 1,975.7 2,018.4 2,112.3 2,182.8 2,246.2 47 Issuers of asset-backed securities (ABSs) 712.5 866.4 1,078.2 1,394.6 1,142.9 1,230.4 1,307.0 1,394.6 l,463.3r 1,546.8 1,597.5 48 Brokers and dealers 29.3 27.3 35.3 42.5 35.1 40.1 39.4 42.5 34.8 30.4 34.6 49 Finance companies 483.9 529.8 554.5 597.5 571.9 596.9 589.4 597.5 614.4 639.2 628.5 50 Mortgage companies 16.5 20.6 16.0 17.7 23.4 16.3 16.9 17.7 16.5 17.8 17.5 51 Real estate investment trusts (REITs) 44.6 56.5 96.1 158.8 111.9 128.0 147.8 158.8 165.2 160.3 162.2 52 Funding corporations 248.6 312.7 373.7 414.4 411.6 410.5 417.9 414.4 459.1 449.5 462.0 All sectors 53 Total credit market debt, domestic and foreign ... 18,455.1r 19,826.6r 21,282.8r 23,409.3 21,789.0r 22,291.6r 22,770.5r 23,409.3r 24,021.3r 24,458.8 25,016.7 54 Open market paper 700.4 803.0 979.4 1,172.6 1,074.8 1,112.7 1,165.1 1,172.6 1,227.6 1,243.3 1,284.5 55 U.S. government securities 6,013.6 6,390.0 6,626.0 7,044.3 6,708.7 6,730.3 6,841.9 7,044.3 7,193.8 7,232.5 7,378.7 56 Municipal securities 1,293.5 1,296.0 1,367.5 1,464.3 1,397.1 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.1 57 Corporate and foreign bonds 2,840.7 3,189.6 3,563.3 4,098.9 3,727.0 3,928.3 3,996.0 4,098.9 4,287.2r 4,436.8 4,534.6 58 Bank loans n.e.c 949.6 1,041.7 1,169.8 1,314.9 1,191.9 1,241.3 1,280.3 1,314.9 1,328.3 1,345.7 1,366.8 59 Other loans and advances 930.6 993.1 1,095.9 1,254.4 1,126.1 1,153.6 1,186.8 1,254.4 1,307.0r 1,331.2 1,382.6 60 Mortgages 4,604.0r 4,901.6r 5,216.7r 5,728.2 5,327.5r 5,439.4r 5,574.0r 5,728.2r 5,867.2r 6,018.8 6,181.2 61 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,236.0 1,256.8 1,286.6 1,331.7 l,319.3r 1,340.4 1,370.2 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Q1 Q2 Q3 Q4 Q1 Q2 Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,455.1 19,826.6 21,282.8 23,409.3 21,789.0 22,291.6 22,770.5 23,409.3 24,021.3 24,458.8 25,016.7 7 Domestic nonfederal nonfinancial sectors 2,857.4 2,927.5 2,815.9 2,860.8 2,798.2 2,886.3 2,919.9 2,860.8 2,926.3 2,966.3 3,003.0 3 Household 1,896.1 2,014.5 1,905.6 1,849.2 1,905.2 1,958.8 1,957.1 1,849.2 1,924.7 1,947.1 1,990.2 4 Nonfinancial corporate business 280.4 270.2 268.0 269.8 249.6 238.5 244.4 269.8 247.0 249.2 248.0 5 Nonfarm noncorporate business 42.3 38.0 37.4 37.4 37.4 37.4 37.4 37.4 37.5 37.7 38.0 6 State and local governments 638.6 604.8 605.0 704.4 606.0 651.6 681.1 704.4 717.1 732.3 726.9 7 Federal government 202.7 195.3 200.4 213.9 204.3 207.5 210.9 213.9 218.2 219.8 224.0 8 Rest of the world 1,531.1 1,926.6 2,256.8 2,534.3 2,317.1 2,396.0 2,412.2 2,534.3 2,601.0 2,608.4 2,702.3 9 Financial sectors 13,863.9 14,777.2 16,009.8 17,800.2 16,469.4 16,801.8 17,227.5 17,800.2 18,275.9 18,664.2 19,087.5 10 Monetary authority 380.8 393.1 431.4 452.5 433.8 440.3 446.5 452.5 466.0 485.1 489.3 11 Commercial banking 3,520.1 3,707.7 4,031.9 4,335.7 4,093.4 4,136.4 4,195.7 4,335.7 4,338.4 4,383.4 4,488.2 17 U.S.-chartered banks 3,056.1 3,175.8 3,450.7 3,761.2 3,505.1 3,543.6 3,616.2 3,761.2 3,782.9 3,847.6 3,944.1 N Foreign banking offices in United States 412.6 475.8 516.1 504.2 517.9 525.6 510.1 504.2 487.8 465.7 475.4 14 Bank holding companies 18.0 22.0 27.4 26.5 31.2 26.8 28.3 26.5 25.0 25.1 22.0 15 Banks in U.S.-affiliated areas 33.4 34.1 37.8 43.8 39.2 40.4 41.1 43.8 42.7 45.0 46.7 16 Savings institutions 913.3 933.2 928.5 964.8 931.3 930.8 939.3 964.8 990.8 1,011.4 1,030.8 17 Credit unions 263.0 288.5 305.3 324.2 306.7 315.1 320.5 324.2 330.2 341.0 350.8 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 204.3 201.5 197.5 194.1 192.2 190.1 188.0 19 Life insurance companies 1,587.5 1,657.0 1,751.1 1,828.0 1,777.3 1,793.2 1,810.6 1,828.0 1,853.7 1,874.7 1,893.1 70 Other insurance companies 468.7 491.2 515.3 535.7 521.1 520.8 518.8 535.7 530.8 537.5 535.4 71 Private pension funds 716.9 769.2 834.7 953.4 853.4 885.9 909.8 953.4 968.5 1,006.0 1,017.4 77 State and local government retirement funds 531.0 568.2 632.0 697.0 648.9 668.5 684.9 697.0 716.3 726.5 732.5 73 Money market mutual funds 545.5 634.3 721.9 965.9 775.0 815.9 869.9 965.9 1,036.2 1,001.8 1,049.7 74 Mutual funds 771.3 820.2 901.1 1,025.9 940.0 979.1 1,005.9 1,025.9 1,050.8 1,084.0 1,079.8 75 Closed-end funds 96.4 101.1 98.3 102.8 99.4 100.5 101.7 102.8 103.9 105.0 106.1 76 Government-sponsored enterprises 750.0 807.9 902.2 1,163.0 951.4 989.4 1,055.4 1,163.0 1,201.9 1,267.0 1,338.6 27 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,847.1 1,908.9 1,975.7 2,018.4 2,112.3 2,182.8 2,246.2 78 Asset-backed securities issuers (ABSs) 653.4 777.0 939.3 1,216.0 989.2 1,068.9 1,134.2 1,216.0 1,280.4 1,359.7 1,408.2 79 Finance companies 526.2 544.5 566.4 618.4 572.0 579.0 592.7 618.4 639.9 660.9 678.1 30 Mortgage companies 33.0 41.2 32.1 35.3 46.8 32.7 33.8 35.3 33.0 35.6 35.0 31 Real estate investment trusts (REITs) 26.0 30.4 50.6 45.5 57.0 58.5 55.7 45.5 45.9 45.3 44.7 37 Brokers and dealers 183.4 167.7 182.6 165.2 244.0 198.3 217.5 165.2 211.4 163.6 167.5 33 Funding corporations 87.4 101.4 152.3 158.5 177.5 178.3 161.6 158.5 173.3 202.7 208.0 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,455.1 19,826.6 21,282.8 23,409.3 21,789.0 22,291.6 22,770.5 23,409.3 24,021.3 24,458.8 25,016.7 Other liabilities 3.5 Official foreign exchange 63.7 53.7 48.9 60.1 48.2 50.1 54.5 60.1 53.6 50.9 5522..11 36 Special drawing rights certificates 10.2 9.7 9.2 9.2 9.2 9.2 9.2 9.2 8.2 8.2 7.2 37 Treasury currency 18.2 18.3 18.3 18.3 18.4 18.4 18.8 18.3 18.3 18.8 19.3 38 Foreign deposits 418.8 516.1 618.8 639.9 607.2 630.4 651.7 639.9 671.8 696.6 712.5 39 Net interbank liabilities 290.7 240.8 219.4 187.7 179.6 189.2 198.7 187.7 180.4 201.7 190.3 40 Checkable deposits and currency 1,229.3 1,245.1 1,286.6 1,334.2 1,259.2 1,320.7 1,282.3 1,334.2 1,311.4 1,354.1 1,354.9 41 Small time and savings deposits 2,279.7 2,377.0 2,474.1 2,626.5 2,525.4 2,531.0 2,553.8 2,626.5 2,637.6 2,644.6 2,666.8 47 Large time deposits 476.9 590.9 713.4 805.5 760.9 754.0 776.5 805.5 804.3 809.0 836.8 43 Money market fund shares 745.3 891.1 1,048.7 1,334.2 1,130.7 1,153.7 1,249.7 1,334.2 1,416.0 1,398.1 1,449.6 44 Security repurchase agreements 660.0 701.5 822.4 875.0 889.3 861.5 918.9 875.0 980.3 974.2 1,006.1 45 Mutual fund shares 1,852.8 2,342.4 2,989.4 3,610.5 3,339.3 3,438.4 3,137.3 3,610.5 3,758.4 4,049.4 3,863.0 46 Security credit 305.7 358.1 469.1 577.4 505.3 540.6 579.0 577.4 552.7 587.9 582.3 47 Life insurance reserves 566.2 610.6 665.0 718.3 677.3 690.6 703.5 718.3 730.9 745.8 756.7 48 Pension fund reserves 5,767.8 6,642.5 7,894.4 9,160.7 8,583.1 8,730.8 8,194.6 9,160.7 9,258.8 9,711.7 9,464.8 49 Trade payables 1,698.0 1,812.8 1,938.6 1,970.2 1,940.8 1,933.9 1,954.5 1,970.2 1,981.2 2,039.6 2,067.3 50 Taxes payable 107.6 123.6 140.4 152.9 151.7 144.6 155.0 152.9 159.7 161.5 172.5 51 Investment in bank personal trusts 803.0 871.7 942.5 1,001.0 1,002.7 999.8 908.6 1,001.0 1,012.5 1,059.8 1,000.9 52 Miscellaneous 5,634.7 6,098.8 6,666.5 7,053.7 6,741.0 6,791.2 7,013.1 7,053.7 7,074.2 7,158.2 7,157.4 53 Total liabilities 41,383.6 45,331.1 50,248.3 55,544.5 52,158.3 53,079.8 53,130.2 55,544.5 56,631.7 58,128.9 58,377.3 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 22.1 21.4 21.1 21.6 21.2 21.0 21.2 21.6 20.7 20.8 21.3 55 Corporate equities 8,495.7 10,255.8 13,181.4 15,413.4 14,842.1 14,987.0 13,121.2 15,413.4 15,893.6 17,018.0 16,008.3 56 Household equity in noncorporate business 3,640.4 3,833.3 4,171.8 4,395.3 4,213.6 4,284.7 4,331.3 4,395.3 4,405.1 4,489.9 4,568.0 Liabilities not identified as assets (—) 57 Treasury currency -5.8 -6.7 -7.3 -8.0 -7.4 -7.4 -7.2 -8.0 -8.4 -8.2 -8.1 58 Foreign deposits 360.2 431.4 534.0 547.2 510.1 547.6 565.1 547.2 562.8 583.9 592.3 59 Net interbank transactions -9.0 -10.6 -32.2 -27.0 -21.2 -17.1 -15.4 -27.0 -11.3 -10.6 -12.9 60 Security repurchase agreements 86.4 90.9 153.1 168.4 187.4 140.9 175.2 168.4 263.5 279.8 297.1 61 Taxes payable 62.4 76.7 93.5 103.5 89.6 95.8 102.2 103.5 90.7 111.3 101.4 62 Miscellaneous -1,011.4 -1,339.6 -1,668.9 -2,319.9 -1,868.2 -1,929.2 -2,015.4 -2,319.9 -2,436.0 -2,588.2 -2,996.5 Floats not included in assets ( —) 63 Federal government checkable deposits 3.1 -1.6 -8.1 -3.9 -10.4 -16.1 -12.0 -3.9 -7.2 -12.4 -9.0 64 Other checkable deposits 34.2 30.1 26.2 23.1 21.4 24.2 15.7 23.1 18.9 22.1 14.5 65 Trade credit 198.2 176.7 199.5 168.0 163.5 119.4 99.1 168.0 129.2 108.7 101.1 66 Total identified to sectors as assets 53,823.6 59,994.4 68,332.7 76,723.3 72,170.3 73,414.4 71,696.7 76,723.3 78,348.9 81,171.0 80,894.9 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. 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 Nonflnancial Statistics • March 2000 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 1999 MMeeaassuurree 11999977 11999988 11999999 Apr. May June July Aug. Sept. Oct.r Nov.r Dec.p 1 Industrial production1 127.1 132.4 137.2 135.S 136.2 136.6 137.4 137.7 138.1r 139.4 139.9 140.5 Market groupings 2 Products, total 119.6 123.7 126.7 126.2 126.8 126.8 126.9 127.6 127.6r 129.0 129.2 129.4 3 Final, total 121.1 125.4 128.2 127.6 128.2 128.3 128.6 129.5 129.1r 130.7 131.0 130.9 4 Consumer goods 115.1 116.2 117.2 116.5 116.8 117.0 116.8 117.6 117.1r 118.9 118.9 119.1 5 Equipment 132.1 142.7 149.1 147.0 148.4 148.3 149.3 150.5 150.2r 151.4 152.3 151.8 6 Intermediate 115.3 118.8 122.3 121.7 122.3 121.7 121.5 121.7 122.6 123.6 123.6 124.4 7 Materials 139.0 146.5 154.7 150.8 151.7 153.1 155.0 154.6 155.7r 156.8 158.0 159.2 Industry groupings 8 Manufacturing 130.1 136.4 142.3 140.2 141.0 141.4 142.0 142.5 142.9 144.3 145.2 145.5 9 Capacity utilization, manufacturing (percent)2. . 82.4 80.9 79.8 79.5 79.7 79.6 79.7 79.7 79.7 80.2 80.4 80.3 10 Construction contracts3 143.2 157.4 170.9 174.0r 176.0 180.0r 176.0r 160.0r 168.0r 170.0 166.0 165.0 11 Nonagricultural employment, total4 120.3 123.4 126.1 125.7 125.7 126.0 126.3 126.5 126.6 126.9 127.1 127.4 12 Goods-producing, total 101.2 102.7 102.3 102.5 102.1 102.1 102.3 101.9 102.1 102.1 102.4 102.4 13 Manufacturing, total 98.3 98.8 97.0 97.2 97.0 96.8 97.1 96.7 96.7 96.6 96.7 96.7 14 Manufacturing, production workers 99.6 99.8 97.8 98.0 97.8 97.5 98.0 97.4 97.4 97.3 97.4 97.4 15 Service-producing 126.5 130.0 133.8 133.1 133.2 133.6 134.0 134.3 134.4 134.7 135.0 135.3 16 Personal income, total 175.4 185.7 196.6 194.1 194.9 196.4 197.0 197.9 198.1 200.4 201.2 201.8 17 Wages and salary disbursements 171.3 184.4 197.0 194.3 195.2 196.3 197.8 198.6 199.5 200.7 201.3 202.8 18 Manufacturing 144.6 152.4 156.9 155.1 155.9 156.8 158.2 158.0 158.6 159.7 158.9 159.1 19 Disposable personal income5 172.9 181.7 191.9 189.7 190.3 191.8 192.1 193.4 193.0 195.6 196.3 196.7 20 Retail sales5 170.1 178.5 194.3 190.9 192.8 192.6 194.5 197.1 197.1 197.7 200.0 202.5 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 166.2 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 22 Producer finished goods (1982=100) 131.8 130.7 133.1 131.9 132.4 132.7 132.9 133.7 134.8 135.0 135.0 135.0 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. 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 1999. 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 March 2000 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 11999977rr 11999988rr 11999999 May June July Aug. Sept. Oct/ Nov.r Dec. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 139,013r 139,332r 139,336r 139,372r 139,475r 139,697 139,834 140,108 Employment 2 Nonagricultural industries3 126,159 128,085 130,207 129,900r 130,068r 130,12 lr 130,296r 130,47 lr 130,702 130,788 131,141 3 Agriculture 3,399 3,378 3,281 3,290r 3,330r 3,278r 3,234r 3,179r 3,238 3,310 3,279 Unemployment 4 Number 6,739 6,210 5,880 5,823r 5,934r 5,937r 5,842r 5,825r 5,757 5,736 5,688 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.2 4.3 4.3 4.2 4.2 4.1 4.1 4.1 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,610 128,162 128,443 128,816 128,945 129,048 129,332 129,554 129,869 7 Manufacturing 18,675 18,772 18,432 18,429 18,396 18,449 18,378 18,366 18,356 18,364 18,363 8 Mining 596 590 535 531 526 528 524 527 528 527 529 9 Contract construction 5,691 5,985 6,273 6,239 6,258 6,270 6,246 6,293 6,314 6,369 6,385 10 Transportation and public utilities 6,408 6,600 6,791 6,758 6,781 6,799 6,813 6,831 6,841 6,860 6,892 11 Trade 28,614 29,127 29,787 29,725 29,789 29,915 29,919 29,903 29,955 29,953 30,034 12 Finance 7,109 7,407 7,633 7,621 7,636 7,647 7,650 7,653 7,668 7,678 7,690 13 Service 36,040 37,526 38,999 38,782 38,952 39,055 39,205 39,257 39,433 39,545 39,654 14 Government 19,557 19,819 20,160 20,077 20,105 20,153 20,210 20,218 20,237 20,258 20,322 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 1999 1999 1999 SSeerriieess Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 134.6 136.1 137.7 139.9 167.3 169.2 170.7 172.3 80.4 80.5 80.7 81.2 2 Manufacturing 139.2 140.9 142.5 145.0 174.8 176.9 178.7 180.6 79.6 79.6 79.7 80.3 3 Primary processing3 122.2 122.5 123.4 125.2 147.4 148.2 149.0 149.8 82.9 82.7 82.8 83.6 4 Advanced processing4 148.1 150.5 152.5 155.4 188.6 191.4 193.7 196.1 78.5 78.6 78.7 79.2 Durable goods 167.1 170.8 174.4 177.3 210.3 214.2 217.6 221.0 79.5 79.8 80.2 80.2 6 Lumber and products 122.2 122.5 120.5 121.0 145.3 146.3 147.4 148.4 84.1 83.7 81.7 81.5 7 Primary metals 122.3 125.1 128.7 130.3 147.6 148.5 149.3 150.1 82.9 84.2 86.2 86.8 8 Iron and steel 116.9 121.4 126.6 128.0 148.5 150.0 151.3 152.5 78.7 80.9 83.7 83.9 9 Nonferrous 129.1 129.6 131.2 133.2 146.5 146.8 147.0 147.2 88.1 88.3 89.3 90.5 10 Industrial machinery and equipment 221.3 227.9 232.3 240.3 265.7 275.5 285.3 295.8 83.3 82.7 81.4 81.3 11 Electrical machinery 349.4 374.6 400.9 418.0 461.8 482.0 498.5 514.6 75.7 77.7 80.4 81.2 12 Motor vehicles and parts 147.5 150.6 153.3 154.7 184.8 184.8 184.9 185.0 79.8 81.5 82.9 83.6 13 Aerospace and miscellaneous transportation equipment . . . 98.9 95.9 93.8 88.8 126.8 126.6 126.2 125.8 78.0 75.7 7744..33 7700..66 14 Nondurable goods 111.8 111.6 111.5 113.6 139.1 139.5 139.9 140.3 80.4 80.0 79.7 81.0 15 Textile mill products 109.6 111.1 111.6 112.7 131.4 131.5 131.6 131.8 83.4 84.5 84.8 85.5 16 Paper and products 115.8 115.1 116.0 118.3 133.8 134.5 135.3 136.1 86.6 85.6 85.7 86.9 17 Chemicals and products 115.9 116.3 117.0 120.3 150.0 150.4 150.7 151.0 77.3 77.3 77.6 79.7 18 Plastics materials 122.9 123.5 124.2 129.4 135.9 137.2 138.4 139.6 90.4 90.0 89.7 92.7 19 Petroleum products 116.3 114.1 114.6 113.5 121.8 122.2 122.7 123.1 95.6 93.3 93.4 92.2 70 Mining 97.6 97.1 98.2 99.8 120.4 120.3 120.2 120.2 81.1 80.7 81.7 83.0 ?1 Utilities 114.6 116.6 118.4 117.9 126.9 127.3 127.8 128.2 90.3 91.6 92.7 91.9 22 Electric 116.6 118.9 120.8 120.9 124.7 125.2 125.6 126.1 93.5 95.0 96.2 95.8 1973 1975 Previous cycle5 Latest cycle6 1998 1999 High Low High Low High Low Dec. July Aug. Sept.r Oct.r Nov. Dec? Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.6 80.7 80.7 80.6 81.2 81.2 81.3 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.9 79.7 79.7 79.7 80.2 80.4 80.3 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 83.1 82.9 82.8 82.8 83.3 83.7 83.7 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 78.8 78.6 78.8 78.7 79.2 79.4 79.1 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 80.1 80.3 80.2 80.0 80.3 80.4 80.0 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 84.8 82.7 81.6 81.0 81.4 81.4 81.7 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 83.4 85.9 86.8 85.8 85.7 87.4 87.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 79.0 83.7 84.4 83.0 81.8 85.1 84.8 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 88.9 88.6 89.9 89.3 90.6 90.3 90.6 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 83.5 81.5 81.1 81.6 81.8 81.3 80.7 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 77.2 80.9 80.5 79.8 80.7 81.2 81.8 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 79.6 82.3 82.3 84.1 84.1 84.6 82.1 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 79.9 74.9 75.0 73.1 71.6 70.6 69.6 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.1 79.4 79.7 79.9 80.7 81.0 81.2 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 81.0 85.3 84.8 84.1 86.5 85.2 84.8 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.3 85.2 85.6 86.4 86.9 87.1 86.8 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.6 76.9 78.1 77.8 78.9 79.9 80.2 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 91.8 90.9 87.8 90.5 94.0 91.3 92.7 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 94.6 93.9 93.0 93.3 93.2 91.5 92.1 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 81.4 81.3 81.9 81.8 82.6 83.1 83.4 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 88.9 93.9 92.2 92.0 92.6 90.1 93.1 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 93.1 97.7 95.5 95.2 96.1 94.2 97.2 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. 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 1999. The recent annual revision is described in an article in the 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing March 2000 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 Nonflnancial Statistics • March 2000 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1998 1999 GGrroouupp pro- 1999 por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.r Oct/ Nov. Dec.p Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.2 133.8 134.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.4 139.9 140.5 2 Products 60.5 126.7 124.9 125.4 125.8 126.0 126.2 126.8 126.8 126.9 127.6 127.6 129.0 129.2 129.4 3 Final products 46.3 128.2 126.0 126.6 127.3 127.3 127.6 128.2 128.3 128.6 129.5 129.1 130.7 131.0 130.9 4 Consumer goods, total 29.1 117.2 115.1 116.3 117.2 116.7 116.5 116.8 117.0 116.8 117.6 117.1 118.9 118.9 119.1 5 Durable consumer goods 6.1 152.8 146.0 149.1 150.9 149.9 152.0 152.8 154.0 153.4 155.5 153.5 157.5 156.2 155.4 6 Automotive products 2.6 144.7 141.7 143.7 142.0 140.0 142.0 145.4 147.4 143.7 150.6 145.5 147.9 146.9 144.6 7 Autos and trucks 1.7 151.8 148.2 149.4 148.7 147.0 149.0 153.2 157.5 148.9 162.9 152.8 155.1 154.3 148.8 8 Autos, consumer .9 102.6 108.4 104.7 100.2 101.6 102.3 99.9 101.8 102.4 105.0 105.5 103.9 107.2 100.0 9 Trucks, consumer .7 202.4 190.2 195.9 198.5 194.1 197.3 207.4 214.2 197.2 221.6 201.9 207.8 203.6 199.2 10 Auto parts and allied goods .... .9 134.0 131.8 134.8 131.8 129.3 131.4 133.6 132.5 135.3 132.8 134.4 136.7 135.4 137.3 11 Other 3.5 159.1 148.8 152.8 158.0 157.8 160.0 158.3 158.8 161.1 158.7 159.7 165.1 163.5 164.2 12 Appliances, televisions, and air conditioners 1.0 324.9 283.5 299.7 320.0 317.6 325.8 311.1 319.0 329.9 319.0 326.3 360.1 351.1 349.8 13 Carpeting and furniture .8 122.8 115.9 121.1 122.8 119.6 120.2 121.0 121.0 124.1 122.1 124.1 126.8 125.2 124.9 14 Miscellaneous home goods 1.6 114.6 111.0 111.0 113.6 115.7 116.9 117.2 116.2 115.9 115.4 114.4 114.5 114.8 116.2 15 Nondurable consumer goods 23.0 108.9 107.9 108.7 109.3 108.9 108.3 108.4 108.4 108.3 108.9 108.7 110.0 110.3 110.7 16 Foods and tobacco 10.3 107.6 107.2 108.4 109.4 108.4 107.8 107.7 107.3 106.7 106.5 106.2 107.6 108.7 109.1 17 Clothing 2.4 90.7 91.3 91.7 92.0 91.3 91.8 90.2 90.2 89.2 90.1 89.9 90.3 90.7 89.8 18 Chemical products 4.5 121.5 120.2 119.7 122.8 121.6 118.7 120.5 120.2 119.4 122.7 120.9 122.6 124.5 125.0 19 Paper products 2.9 102.3 102.8 101.5 100.4 98.8 99.9 100.3 101.5 102.0 103.2 104.7 106.3 104.9 103.9 20 Energy 2.9 115.4 108.6 113.1 109.9 115.4 115.1 114.7 115.3 118.6 116.6 117.6 118.4 114.1 117.1 21 Fuels .8 110.9 110.1 112.2 113.4 110.7 111.5 110.9 109.9 111.1 110.0 112.0 112.4 108.2 108.6 22 Residential utilities 2.1 117.3 107.6 113.3 108.2 117.2 116.4 116.1 117.4 121.7 119.3 119.7 120.8 116.4 120.7 23 Equipment 17.2 149.1 145.2 144.6 144.9 145.9 147.0 148.4 148.3 149.3 150.5 150.2 151.4 152.3 151.8 24 Business equipment 13.2 171.8 166.3 165.9 166.3 167.5 169.4 171.2 171.2 172.6 173.9 173.7 175.1 176.1 175.6 25 Information processing and related 5.4 249.5 220.9 223.0 224.5 229.2 236.9 244.3 248.2 253.8 259.9 261.3 266.5 269.6 273.2 26 Computer and office equipment 1.1 845.6 657.8 677.5 703.1 736.1 773.0 805.8 830.2 851.9 892.8 926.9 957.0 977.1 992.8 27 Industrial 4.0 135.4 138.6 137.0 135.8 135.2 136.0 135.3 133.7 135.4 133.6 133.9 135.4 135.2 135.1 28 Transit 2.5 126.5 134.8 132.8 131.2 129.5 129.4 128.9 128.2 127.5 128.1 124.0 121.6 120.8 115.4 29 Autos and trucks 1.2 131.5 131.0 130.9 128.9 129.0 130.7 131.2 132.2 131.2 135.3 132.0 133.2 136.0 128.1 30 Other 1.3 131.4 133.0 132.6 139.9 143.0 135.7 134.0 130.2 123.8 123.2 126.4 125.4 128.8 127.4 31 Defense and space equipment 3.3 74.3 75.2 75.0 75.4 75.6 75.1 75.2 74.6 74.5 74.7 73.6 73.7 73.0 72.0 32 Oil and gas well drilling .6 106.7 105.2 99.8 97.4 100.8 97.2 99.8 100.1 102.0 107.1 111.3 115.7 121.3 123.6 33 Manufactured homes .2 155.7 172.5 173.3 169.2 168.8 164.7 161.3 158.9 151.5 151.3 144.4 142.6 143.5 141.5 34 Intermediate products, total 14.2 122.3 121.1 121.4 121.3 121.6 121.7 122.3 121.7 121.5 121.7 122.6 123.6 123.6 124.4 35 Construction supplies 5.3 133.5 132.2 133.3 132.5 131.7 131.3 132.9 132.6 133.2 132.9 134.1 135.3 135.7 136.2 36 Business supplies 8.9 115.6 114.5 114.3 114.7 115.6 116.1 116.1 115.3 114.6 115.1 115.8 116.7 116.4 117.4 37 Materials 39.5 154.7 148.5 148.2 148.7 150.3 150.8 151.7 153.1 155.0 154.6 155.7 156.8 158.0 159.2 38 Durable goods materials 20.8 198.6 189.2 188.8 189.2 191.9 193.1 194.3 197.2 200.3 199.9 202.3 203.1 205.9 207.3 39 Durable consumer parts 4.0 150.9 147.2 145.4 148.4 149.9 147.7 148.4 150.5 153.9 147.2 156.0 154.3 156.5 155.3 40 Equipment parts 7.6 360.0 322.1 323.1 324.4 331.5 340.5 345.0 355.2 364.6 369.0 371.4 377.0 382.9 390.3 41 Other 9.2 131.1 131.2 130.8 129.8 130.9 130.4 130.4 130.6 131.1 131.6 131.2 131.3 132.7 133.1 42 Basic metal materials 3.1 121.7 119.3 119.1 116.8 119.8 120.1 119.9 122.6 122.8 123.3 122.1 122.8 125.6 126.0 43 Nondurable goods materials 8.9 114.2 111.7 111.3 112.4 112.7 112.8 113.8 114.2 114.5 114.4 114.7 116.5 117.2 117.4 44 Textile materials 1.1 100.9 101.8 96.5 100.2 101.2 101.8 101.8 101.2 101.2 101.1 100.3 102.2 100.9 101.2 45 Paper materials 1.8 117.2 114.4 116.1 115.6 116.3 116.5 115.3 117.7 116.3 116.3 118.6 118.5 120.1 119.8 46 Chemical materials 3.9 116.6 111.3 111.6 112.8 113.6 114.2 116.0 116.9 117.7 117.4 117.7 119.9 121.1 121.4 47 Other 2.1 113.5 114.6 113.4 114.4 113.3 111.9 114.2 112.0 113.0 113.2 112.5 115.2 115.0 115.4 48 Energy materials 9.7 102.0 101.6 101.8 101.7 102.4 102.2 102.2 101.6 102.9 102.3 101.8 102.6 101.6 103.4 49 Primary energy 6.3 99.3 98.8 99.1 99.1 99.1 97.3 98.3 98.9 100.2 100.3 99.6 100.0 99.3 100.3 50 Converted fuel materials 3.3 107.7 107.0 106.8 106.7 108.9 111.7 109.9 106.8 108.0 106.1 106.1 107.7 106.1 109.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.1 133.7 133.9 134.4 135.1 135.4 136.1 136.4 137.3 137.4 138.0 139.3 139.8 140.6 52 Total excluding motor vehicles and parts 95.1 136.5 133.2 133.5 133.9 134.6 134.9 135.6 135.9 136.7 137.1 137.2 138.6 139.2 140.0 53 Total excluding computer and office equipment 98.2 131.2 128.7 128.8 129.1 129.5 129.7 130.2 130.6 131.2 131.4 131.5 132.7 133.1 133.6 54 Consumer goods excluding autos and trucks . 27.4 115.3 113.4 114.6 115.5 115.1 114.8 114.8 114.8 115.0 115.2 115.2 117.0 117.0 117.5 55 Consumer goods excluding energy 26.2 117.4 115.9 116.7 118.0 116.9 116.7 117.0 117.2 116.6 117.7 117.1 119.0 119.4 119.4 56 Business equipment excluding autos and trucks 12.0 176.4 170.3 169.9 170.6 171.9 173.8 175.7 175.7 177.4 178.3 178.5 179.9 180.7 181.1 57 Business equipment excluding computer and office equipment 12.1 143.9 143.7 142.7 142.4 142.6 143.4 144.2 143.6 144.4 144.6 143.6 144.1 144.6 143.8 58 Materials excluding energy 29.8 171.7 163.3 162.9 163.6 165.5 166.3 167.4 169.5 171.6 171.3 173.0 174.2 176.2 177.2 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- 1999 GGrroouupp code por- avg. tion Dec. Jan. Feb. Mar. Apr. May June July Aug. Sept.1" Oct/ Nov. Dec.p Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.2 133.8 134.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.4 139.9 140.5 60 Manufacturing 85.4 142.3 138.4 138.6 139.3 139.7 140.2 141.0 141.4 142.0 142.5 142.9 144.3 145.2 145.5 61 Primary processing 26.5 123.2 121.9 122.2 122.1 122.4 122.2 122.5 122.7 123.3 123.4 123.6 124.6 125.3 125.7 62 Advanced processing 58.8 151.8 147.2 147.2 148.4 148.8 149.6 150.7 151.2 151.8 152.6 153.1 154.7 155.6 155.9 63 Durable goods 45.0 172.8 166.2 166.3 166.8 168.1 169.4 170.8 172.2 173.8 174.4 175.0 176.4 177.7 177.9 64 Lumber and products 24 2.0 121.7 122.5 122.6 122.3 121.7 121.5 123.9 122.2 121.5 120.2 119.7 120.4 120.9 121.6 65 Furniture and fixtures 25 1.4 125.8 123.3 122.7 124.6 125.8 123.8 124.4 124.4 125.7 126.4 127.9 127.6 127.9 128.6 66 Stone, clay, and glass products 32 2.1 130.4 131.8 133.1 132.2 130.8 128.8 128.5 127.8 129.3 130.2 129.6 131.6 132.2 132.1 67 Primary metals 33 3.1 126.5 122.5 122.9 120.1 124.0 123.9 123.9 127.4 128.0 129.6 128.3 128.3 131.2 131.3 68 Iron and steel 331,2 1.7 122.9 116.5 118.1 114.6 118.1 119.4 120.1 124.5 126.2 127.6 125.9 124.4 129.9 129.7 69 Raw steel 331PT .1 113.3 102.7 106.8 106.8 108.3 109.3 111.4 110.7 111.1 115.9 112.4 121.8 124.0 123.6 70 Nonferrous 333-6,9 1.4 130.8 130.0 128.9 127.0 131.4 129.4 128.6 130.8 130.2 132.1 131.4 133.2 132.9 133.4 71 Fabricated metal products . . 34 5.0 128.8 129.8 129.0 128.4 128.5 128.0 127.2 128.3 128.6 128.5 128.4 129.0 130.1 130.3 72 Industrial machinery and equipment 35 8.0 230.5 216.6 217.5 221.7 224.6 227.0 228.4 228.2 230.0 231.4 235.5 239.0 240.5 241.6 73 Computer and office equipment 357 1.8 1,069.6 832.2 868.1 907.1 947.6 987.5 1,021.6 1,048.2 1,075.1 1,123.7 1,167.5 1,206.7 1,233.0 1,254.9 74 Electrical machinery 36 7.3 389.6 344.8 346.7 347.5 354.0 366.4 373.3 384.2 399.2 401.3 402.1 410.9 417.7 425.4 75 Transportation equipment. . . 37 9.5 122.3 123.9 122.7 123.2 122.6 122.1 122.8 123.5 122.9 122.9 123.1 122.1 121.8 118.9 76 Motor vehicles and parts . 371 4.9 151.0 147.1 146.5 147.8 148.1 148.4 150.6 152.9 152.2 152.2 155.6 155.6 156.4 152.0 77 Autos and light trucks . 371PT 2.6 137.8 136.4 136.5 135.0 134.0 135.7 138.3 142.0 135.8 146.8 139.4 140.7 141.0 135.1 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.6 101.2 99.4 99.3 97.9 96.5 96.0 95.2 94.7 94.7 92.2 90.2 88.8 8877..55 79 Instruments 38 5.4 116.5 112.8 113.3 112.9 113.7 115.1 116.7 117.0 117.2 117.7 117.2 118.6 119.0 119.2 80 Miscellaneous 39 1.3 124.6 120.8 120.6 121.8 122.9 124.2 125.5 124.5 125.2 125.2 125.1 125.0 124.7 125.6 81 Nondurable goods 40.4 111.8 111.1 111.3 112.3 111.8 111.5 lli.9 111.3 111.0 111.5 111.8 113.1 113.6 114.0 82 Foods " 20 9.4 110.3 110.3 111.0 111.4 110.9 110.6 110.6 110.0 108.9 108.9 109.6 110.6 111.3 111.4 83 Tobacco products 21 1.6 94.8 91.1 94.8 99.2 95.4 94.1 95.4 94.5 96.0 94.8 90.9 93.6 96.1 97.9 84 Textile mill products 22 1.8 111.2 106.4 108.0 110.5 110.1 111.4 110.9 110.8 112.3 111.7 110.8 114.0 112.3 111.8 85 Apparel products 23 2.2 90.8 93.2 92.3 92.2 91.8 92.4 91.2 90.7 89.8 89.2 89.0 89.6 89.5 89.5 86 Paper and products 26 3.6 116.3 114.9 115.7 115.9 115.9 115.0 114.6 115.7 115.0 115.8 117.2 118.0 118.5 118.3 87 Printing and publishing .... 27 6.7 104.5 105.3 104.3 104.3 103.7 104.2 104.1 103.5 102.8 103.6 104.6 106.4 106.0 106.0 88 Chemicals and products .... 28 9.9 117.1 114.7 114.5 116.6 116.8 115.6 117.0 116.3 115.8 117.7 117.4 119.1 120.7 121.2 89 Petroleum products 29 1.4 114.5 114.8 117.2 117.0 114.9 114.6 114.2 113.4 115.1 114.1 114.6 114.6 112.5 113.4 90 Rubber and plastic products . 30 3.5 137.6 135.6 135.4 135.6 135.8 136.2 137.4 136.4 138.0 137.6 139.3 138.8 139.3 140.6 91 Leather and products 31 .3 70.1 73.2 71.9 71.5 71.3 70.6 70.9 71.3 69.1 70.2 69.5 68.7 68.3 67.3 92 Mining 6.9 98.1 98.1 98.0 97.4 97.5 96.7 97.4 97.1 97.8 98.5 98.3 99.3 99.8 100.2 93 Metal 10 .5 97.2 106.6 102.9 101.3 98.5 100.5 100.2 98.9 96.2 93.0 91.4 92.5 95.4 96.7 94 Coal 12 1.0 108.1 109.2 107.7 108.9 103.9 107.3 106.1 107.0 110.0 110.7 109.4 108.8 110.0 108.5 95 Oil and gas extraction 13 4.8 92.5 91.5 91.2 90.7 92.1 90.8 91.8 91.4 92.3 93.2 93.0 94.0 94.2 95.3 % Stone and earth minerals 14 .6 125.1 124.1 129.4 127.1 126.6 121.8 123.9 123.3 120.5 123.0 125.5 128.2 128.5 125.5 97 Utilities 7.7 116.8 112.5 114.5 112.6 116.8 116.3 116.1 117.4 119.8 117.8 117.7 118.6 115.5 119.5 98 Electric 491,493PT 6.2 119.2 115.9 115.8 114.9 119.1 118.6 118.4 119.6 122.6 120.0 119.8 121.0 118.8 122.7 99 Gas 492,493PT 1.6 106.9 97.5 108.8 102.5 106.4 105.7 105.8 107.5 107.4 108.2 108.5 107.9 100.5 104.9 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 138.0 138.2 138.9 139.3 139.8 140.5 140.8 141.4 142.0 142.3 143.7 144.6 145.2 101 Manufacturing excluding computer and office equipment 83.6 135.3 132.5 132.4 133.0 133.1 133.4 134.1 134.3 134.8 135.1 135.3 136.5 137.2 137.4 102 Computers, communications equipment, and semiconductors 5.9 794.7 656.4 665.0 676.0 700.3 731.6 753.3 780.5 812.1 830.4 843.0 864.0 885.9 908.1 103 Manufacturing excluding computers and semiconductors 81.1 121.6 120.7 120.6 121.1 121.0 120.9 121.3 121.2 121.3 121.6 121.7 122.7 123.1 123.1 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.3 118.7 118.6 119.1 118.9 118.7 119.1 118.9 118.9 119.1 119.3 120.2 120.6 120.5 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,730.7 2,674.9 2,693.7 2,699.9 2,701.8 2,710.2 2,721.9 2,723.6 2,726.1 2,742.0 2,740.2 2,772.2 2,768.1 2,768.1 106 Final 1,552.1 2,104.7 2,056.0 2,072.5 2,079.5 2,080.1 2,087.2 2,095.3 2,100.3 2,102.8 2,118.5 2,112.5 2,139.8 2,136.3 2,131.3 107 Consumer goods 1,049.6 1,297.4 1,267.6 1,286.4 1,292.3 1,287.9 1,288.4 1,290.1 1,295.1 1,292.4 1,301.3 1,297.0 1,318.0 1,309.6 1,310.4 108 Equipment 502.5 808.8 789.6 787.0 788.1 793.3 800.1 806.7 806.7 812.3 819.0 817.5 823.5 828.8 822.7 109 Intermediate 449.9 624.7 617.5 619.9 619.1 620.4 621.7 625.2 622.1 622.0 622.4 626.4 631.2 630.6 635.4 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 1999. The recent annual revision is described in an article in the Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. March 2000 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 Nonflnancial Statistics • March 2000 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 11999988 Feb. Mar. Apr. May June July Aug. Sept/ Oct.r Nov. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,426 1,441 l,612r 1,738 1,654 1,572 1,591 1,641 1,641 1,619 1,506 1,594 1,612 2 One-family 1,070 1,062 l,188r 1,306 1,242 1,214 1,243 1,241 1,247 1,210 1,171 1,178 1,200 3 Two-family or more 356 379 425r 432 412 358 348 400 394 409 335 416 412 4 Started 1,477 1,474 1,617 1,752 1,746 1,577 1,668 1,607 1,680 1,655 1,637 1,642 1,598 One-family 1,161 1,134 1,271 1,380 1,394 1,260 1,389 1,305 1,332 1,289 1,295 1,339 1,299 6 Two-family or more 316 340 346 372 352 317 279 302 348 366 342 303 299 / Under construction at end of period1 819 834 935 1,032 1,036 1,031 1,029 1,017 1,021 1,026 1,021 1,017 1,020 8 One-family 584 570 638 712 714 708 708 702 704 704 701 703 707 9 Two-family or more 235 264 297 320 322 323 321 315 317 322 320 314 313 10 Completed 1,406 1,406 1,473 1,528 1,700 1,633 1,650 1,674 1,609 1,594 1,668 1,624 1,617 11 One-family 1,123 1,120 1,158 1,246 1,357 1,324 1,334 1,346 1,263 1,267 1,321 1,288 1,306 12 Two-family or more 283 285 315 282 343 309 316 328 346 327 347 336 311 13 Mobile homes shipped 362' 354 374r 381 383 368 365 355 336 340 320 321 316 Merchant builder activity in one-family units 14 Number sold 757 804 886 909 885 952 914 932 929 912r 854 931 865 15 Number for sale at end of period1 326 287 300 297 300 300 304 306 305 307 309 312 316 Price of units sold (thousands of dollars)2 16 Median 140.0 146.0 152.5 159.9 155.0 160.0 154.8 158.3 157.9 154.9r 160.1 159.0 167.4 17 Average 166.4 176.2 181.9 191.4 189.4 191.4 188.2 193.4 188.8 193.3r 193.9 201.3 209.7 EXISTING UNITS (one-family) 18 Number sold 4,196 4,381 4,970 5,140 5,420 5,250 5,000 5,630 5,400 5,240 5,130 4,800 5,130 Price of units sold (thousands of dollars)* 19 Median 115.8 121.8 128.4 128.1 129.6 130.7 132.8 136.9 136.0 137.4 134.4 132.5 133.2 20 Average 141.8 150.5 159.1 159.6 162.3 163.8 167.4 174.2 171.9 174.3 170.2 167.2 168.9 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 581,920 617,877 664,451 710,657 715,396 704,582 698,461 698,852 701,961r 698,439r 698,168 701,933 716,042 22 Private 447,593 474,842 518,987 548,682 555,362 547,885 546,880 546,931 545,992r 541,793r 540,939 543,796 550,546 23 Residential 255,577 265,908 293,569 318,483 323,133 322,213 321,803 320,913 320,350r 319,656r 320,048 322,658 325,737 24 Nonresidential 192,017 208,933 225,418 230,199 232,229 225,672 225,077 226,018 225,642r 222,137r 220,891 221,138 224,809 25 Industrial buildings 32,644 31,355 32,308 28,967 29,052 26,217 24,975 25,465 26,246 25,703r 25,566 25,268 25,887 26 Commercial buildings 75,829 86,190 95,252 102,802 103,983 102,180 104,134 104,457 103,355r 102,407r 102,728 102,454 105,023 27 Other buildings 30,648 37,198 39,438 40,449 39,840 39,737 38,876 38,592 38,412r 37,791r 37,727 38,436 38,173 28 Public utilities and other 52,896 54,190 58,421 57,981 59,354 57,538 57,092 57,504 57,629r 56,236r 54,870 54,980 55,726 29 Public 134,326 143,035 145,464 161,975 160,033 156,697 151,581 151,921 155,969r 156,646r 157,229 158,137 165,496 30 Military 2,604 2,559 2,588 2,636 2,223 2,268 2,128 2,137 2,275r l,682r 1,947 2,092 1,961 31 Highway 39,883 44,295 45,067 54,880 53,099 50,897 48,542 45,518 47,822r 48,182r 49,031 46,988 53,051 32 Conservation and development 5,827 5,576 5,487 6,271 6,194 6,016 5,101 5,845 5,820r 6,598r 6,268 6,305 6,867 33 Other 86,012 90,605 92,322 98,188 98,517 97,516 95,810 98,421 100,052r 100,184r 99,983 102,752 103,617 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 1999 1999 DDDeeeccc... 11999988 11999999 111999999999 DDeecc.. DDeecc.. Mar. June Sept. Dec. Aug. Sept. Oct. Nov. Dec. CONSUMER PRICES2 (1982-84=100) 1 All items 1.6 2.7 1.5 2.9 4.2 2.2 .3 .4 .2 .1 .2 168.3 ? Food 2.3 1.9 1.7 1.7 2.5 2.0 .2 .2 .2 .1 .1 165.4 Energy items -8.8 13.4 5.8 14.2 29.4 5.2 2.7 1.7 -.1 .0 1.4 112.2 4 All items less food and energy 2.4 1.9 .9 2.3 2.5 2.0 .1 .3 .2 .2 .1 178.2 Commodities 1.3 .2 -3.0 2.0 2.5 -.8 -.1 .7 .1 -.2 -.1 144.2 6 Services 3.0 2.7 2.7 2.5 2.3 3.3 .2 .2 .3 .4 .2 197.7 PRODUCER PRICES (1982=100) 7 Finished goods .0 3.0 .6 2.8 7.1 1.5 .5 1.0r -.1 .2 .3 135.0 8 Consumer foods .1 .9 2.1 .0 2.4 -.9 ,2r 1.0 -.7 .1 .4 135.7 9 Consumer energy -11.7 18.4 5.7 23.2 42.4 6.8 3.7r 2.3r -1.0 1.4 1.2 83.8 10 Other consumer goods 4.2 1.2 -1.3 .8 3.8 1.6 ,0r ,9r .3 .1 .1 153.4 11 Capital equipment .0 .3 -.6 -.3 .6 1.5 -.R ,3r .3 -.1 .1 138.3 Intermediate materials 12 Excluding foods and feeds -3.0 4.3 .3 6.1 6.6 4.2 .5 .3 .3 .3 .4 126.5 13 Excluding energy -1.6 1.9 -.9 3.1 2.7 2.7 .2 .1 .4 .1 .2 134.6 Crude materials 14 Foods — 11.0 -.2 4.1 -.8 1.2 -2.8 3.5 1.3 -.1 1.0 -1.6 96.8 15 Energy -23.8 38.6 -21.1 163.8 121.9 -20.0 8.6r 7.8r -4.8 8.8 -8.7 89.0 16 Other -16.0 13.6 .9 8.6 26.6 19.6 1.9 2.2 2.4 .3 1.8 145.5 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A48 Domestic Nonflnancial Statistics • March 2000 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1998 1999 AAccccoouunntt 11999966 11999977 11999988 Q3 Q4 QL Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 7,813.2 8,300.8 8,759.9 8,797.9 8,947.6 9,072.7 9,146.2 9,297.8 By source 2 Personal consumption expenditures 5,237.5 5,524.4 5,848.6 5,889.6 5,973.7 6,090.8 6,200.8 6,303.7 3 Durable goods 616.5 642.9 698.2 696.9 722.8 739.0 751.6 761.8 4 Nondurable goods 1,574.1 1,641.7 1,708.9 1,716.6 1,742.9 1,787.8 1,824.8 1,853.9 5 Services 3,047.0 3,239.8 3,441.5 3,476.1 3,508.0 3,564.0 3,624.3 3,688.0 6 Gross private domestic investment 1,242.7 1,383.7 1,531.2 1,535.3 1,580.3 1,594.3 1,585.4 1,635.0 7 Fixed investment 1,212.7 1,315.4 1,460.0 1,461.7 1,508.9 1,543.3 1,567.8 1,594.2 8 Nonresidential 899.4 986.1 1,091.3 1,087.2 1,121.4 1,139.9 1,155.4 1,181.6 9 Structures 225.0 254.1 272.8 271.7 278.0 274.7 272.5 272.1 10 Producers' durable equipment 674.4 732.1 818.5 815.4 843.4 865.2 882.9 909.5 11 Residential structures 313.3 329.2 368.7 374.5 387.5 403.4 412.4 412.7 12 Change in business inventories 30.0 68.3 71.2 73.7 71.4 51.0 17.6 40.8 13 Nonfarm 22.2 65.6 70.9 74.7 56.2 40.9 12.8 40.1 14 Net exports of goods and services -89.0 -88.3 -149.6 -165.7 -161.2 -201.6 -245.8 -278.2 15 874.2 968.0 966.3 949.1 981.8 966.9 978.2 1,008.5 16 Imports 963.1 1,056.3 1,115.9 1,114.8 1,143.1 1,168.5 1,224.0 1,286.6 17 Government consumption expenditures and gross investment 1,421.9 1,481.0 1,529.7 1,538.7 1,554.8 1,589.1 1,605.9 1,637.2 18 Federal 531.6 537.8 538.7 539.7 546.7 557.4 561.6 569.8 19 State and local 890.4 943.2 991.0 999.0 1,008.1 1,031.8 1,044.3 1,067.4 By major type of product 20 Final sales, total 7,783.2 8,232.4 8,688.7 8,724.2 8,876.2 9,021.6 9,128.6 9,257.0 21 Goods 2,921.3 3,074.1 3,239.1 3,231.9 3,318.4 3,365.6 3,406.6 3,453.2 22 Durable 1,331.9 1,424.8 1,528.9 1,519.9 1,571.4 1,584.3 1,601.7 1,631.1 23 Nondurable 1,589.4 1,649.3 1,710.3 1,712.1 1,747.0 1,781.3 1,804.9 1,822.2 24 Services 4,191.0 4,434.7 4,664.6 4,700.4 4,747.9 4,820.7 4,885.5 4,963.7 25 Structures 670.9 723.7 785.1 791.9 809.9 835.3 836.5 840.1 26 Change in business inventories 30.0 68.3 71.2 73.7 71.4 51.0 17.6 40.8 27 Durable goods 19.1 35.6 39.0 39.8 38.6 24.1 6.3 23.0 28 Nondurable goods 10.9 32.8 32.3 33.9 32.8 27.0 11.4 17.8 MEMO 29 Total GDP in chained 1992 dollars 7,813.2 8,165.1 8,516.3 8,536.0 8,659.2 8,737.9 8,778.6 8,900.6 NATIONAL INCOME 30 Total 6,210.2 6,634.9 7,036.4 7,087.1 7,193.8 7,334.5 7,423.1 7,522.1 31 Compensation of employees 4,395.6 4,675.7 5,011.2 5,053.6 5,134.7 5,217.7 5,287.1 5,373.6 32 Wages and salaries 3,630.1 3,884.7 4,189.5 4,227.9 4,300.8 4,371.5 4,432.6 4,509.4 33 Government and government enterprises 641.0 664.4 692.8 696.7 702.8 715.8 721.3 730.3 34 Other 2,989.1 3,220.3 3,496.7 3,531.2 3,598.0 3,655.7 3,711.3 3,779.1 35 Supplement to wages and salaries 765.4 791.0 821.7 825.7 833.9 846.2 854.5 864.2 36 Employer contributions for social insurance 275.4 290.1 306.0 308.1 311.8 318.3 321.5 325.7 37 Other labor income 490.0 500.9 515.7 517.7 522.1 528.0 533.0 538.5 38 Proprietors' income1 544.7 578.6 606.1 606.4 637.1 639.9 655.3 654.0 39 Business and professional1 510.5 549.1 581.0 583.6 596.0 607.5 621.2 633.0 40 Farm1 34.3 29.5 25.1 22.9 41.1 32.5 34.1 21.0 41 Rental income of persons2 129.7 130.2 137.4 139.3 147.0 148.6 148.8 139.0 42 Corporate profits' 753.9 837.9 846.1 843.8 834.3 882.0 875.5 879.2 43 Profits before tax3 726.3 795.9 781.9 780.1 766.7 818.1 835.8 853.8 44 Inventory valuation adjustment 3.1 7.4 20.9 19.8 20.8 13.3 -13.6 -26.7 45 Capital consumption adjustment 24.4 34.6 43.3 43.9 46.9 50.6 53.2 52.1 46 Net interest 386.3 412.5 435.7 444.0 440.8 446.3 456.4 476.3 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 Q3 Q4 QL Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 6,547.4 6,951.1 7,358.9 7,413.6 7,530.8 7,630.2 7,732.6 7,831.4 ? Wage and salary disbursements 3,626.5 3,888.9 4,186.0 4,224.4 4,297.3 4,371.5 4,432.6 4,509.4 Commodity-producing industries 908.2 975.5 1,038.7 1,045.6 1,056.6 1,062.9 1,075.1 1,090.2 4 Manufacturing 673.7 718.8 757.5 762.3 765.6 767.0 774.8 786.4 Distributive industries 822.4 879.1 944.6 953.5 969.9 986.3 997.6 1,013.4 6 Service industries 1,254.9 1,369.8 1,509.9 1,528.6 1,568.0 1,606.6 1,638.5 1,675.5 7 Government and government enterprises 641.0 664.4 692.8 696.7 702.8 715.8 721.3 730.3 8 Other labor income 490.0 500.9 515.7 517.7 522.1 528.0 533.0 538.5 9 Proprietors' income1 544.7 578.6 606.1 606.4 637.1 639.9 655.3 654.0 10 Business and professional1 510.5 549.1 581.0 583.6 596.0 607.5 621.2 633.0 11 Farm1 34.3 29.5 25.1 22.9 41.1 32.5 34.1 21.0 17 Rental income of persons 129.7 130.2 137.4 139.3 147.0 148.6 148.8 139.0 N Dividends 297.4 333.4 348.3 348.0 351.9 356.1 361.2 367.0 14 Personal interest income 810.6 854.9 897.8 909.3 906.4 907.4 920.5 938.8 IS Transfer payments 928.8 962.4 983.6 986.5 991.0 1,007.8 1,013.6 1,021.3 16 Old-age survivors, disability, and health insurance benefits 537.6 565.8 578.1 579.6 581.1 588.9 593.0 599.0 17 LESS: Personal contributions for social insurance 280.4 298.1 315.9 318.0 322.0 328.9 332.3 336.7 18 EQUALS: Personal income 6,547.4 6,951.1 7,358.9 7,413.6 7,530.8 7,630.2 7,732.6 7,831.4 19 LESS: Personal tax and nontax payments 869.7 968.3 1,072.6 1,088.3 1,113.0 1,124.8 1,139.4 1,160.4 20 EQUALS: Disposable personal income 5,677.7 5,982.8 6,286.2 6,325.3 6,417.8 6,505.4 6,593.2 6,671.0 21 LESS: Personal outlays 5,405.6 5,711.7 6,056.6 6,100.5 6,190.3 6,310.3 6,425.2 6,531.5 22 EQUALS: Personal saving 272.1 271.1 229.7 224.8 227.5 195.1 168.0 139.5 MEMO Per capita (chained 1992 dollars) 73 Gross domestic product 29,428. LR 30,466.7R 31,471.8R 31,509.7R 31,882.lr 3322,,111122..77RR 3322,,117799..88RR 3322,,554433..44RR 74 Personal consumption expenditures 19,726.9 20,275.2R 21,059.2R 21,154.4R 21,339.3R 21,640.6 21,854.1 22,059.5R 25 Disposable personal income 21,385.0 21,954.0 22,636.0 22,715.0 22,924.0 23,110.0 23,239.0 23,343.0 26 Saving rate (percent) 4.8 4.5 3.7 3.6 3.5 3.0 2.5 2.1 GROSS SAVING 27 Gross saving 1,349.3 1,521.3 1,646.0 1,664.1 1,685.4 1,727.8 1,709.5 1,735.6 28 Gross private saving 1,290.4 1,362.0 1,371.2 1,367.7 1,382.3 1,389.4 1,359.3 1,355.7 79 Personal saving 272.1 271.1 229.7 224.8 227.5 195.1 168.0 139.5 30 Undistributed corporate profits1 232.5 265.9 257.2 251.1 246.5 277.6 259.5 252.4 31 Corporate inventory valuation adjustment 3.1 7.4 20.9 19.8 20.8 13.3 -13.6 -26.7 Capital consumption allowances 37 543.6 579.4 619.2 625.0 637.1 664455..88 665577..22 667766..55 33 Noncorporate 238.5 249.8 261.5 263.3 267.7 271.0 274.6 287.2 34 Gross government saving 58.9 159.3 274.8 296.4 303.0 338.3 350.2 379.9 35 Federal -51.5 37.7 134.3 147.1 147.8 187.2 208.3 225.1 36 Consumption of fixed capital 85.3 86.6 87.4 87.5 8888..11 89.6 90.2 91.2 37 Current surplus or deficit (-), national accounts -136.8 -48.8 46.9 59.6 5599..77 97.6 118.1 133.8 38 State and local 110.4 121.5 140.5 149.3 155.2 151.1 141.9 154.8 39 Consumption of fixed capital 88.9 94.0 98.8 99.4 101.1 102.4 104.3 106.0 40 Current surplus or deficit (-), national accounts 21.4 27.5 41.7 49.9 54.2 48.7 37.6 48.9 41 Gross investment 1,382.1 1,518.1 1,598.4 1,576.2 1,623.0 1,628.4 1,574.0 1,594.4 47 Gross private domestic investment 1,242.7 1,383.7 1,531.2 1,535.3 1,580.3 1,594.3 1,585.4 1,635.0 43 Gross government investment 250.2 258.1 268.7 273.5 272.6 289.8 292.2 295.7 44 Net foreign investment -110.7 -123.7 -201.5 -232.6 -229.9 -255.7 -303.7 -336.3 45 Statistical discrepancy 32.8 -3.2 -47.6 -87.9 -62.4 -99.4 -135.5 -141.2 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A50 International Statistics • March 2000 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted' 1998 1999 IItteemm ccrreeddiittss oorr ddeebbiittss 11999966 11999977 11999988 Q3 Q4 Qi Q2 Q3 1 Balance on current account -129,295 -143,465 -220,562 -63,476 -61,669 -68,654 -80,909 -89,949 7 Balance on goods and services -104,318 -104,730 -164,282 -45,724 -43,262 -53,974 -65,085 -73,825 3 Exports 849,806 938,543 933,907 229,284 236,904 231,904 234,512 242,626 4 Imports -954,124 -1,043,273 -1,098,189 -275,008 -280,166 -285,878 -299,597 -316,451 5 Income, net 17,210 3,231 -12,205 -6,965 -4,933 -4,340 -4,612 -4,920 6 Investment, net 21,754 8,185 -6,956 -5,637 -3,571 -2,946 -3,225 -3,520 7 Direct 67,746 69,220 59,405 11,834 14,558 14,834 13,990 15,657 8 Portfolio -45,992 -61,035 -66,361 -17,471 -18,129 -17,780 -17,215 -19,177 9 Compensation of employees -4,544 -4,954 -5,249 -1,328 -1,362 -1,394 -1,387 -1,400 10 Unilateral current transfers, net -42,187 -41,966 -44,075 -10,787 -13,474 -10,340 -11,212 -11,204 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -989 68 -429 185 -50 119 -392 -673 12 Change in U.S. official reserve assets (increase, —) 6,668 -1,010 -6,784 -2,026 -2,369 4,068 1,159 1,950 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) 370 -350 -149 188 -227 563 -190 -185 15 Reserve position in International Monetary Fund -1,280 -3,575 -5,118 -2,078 -1,924 3 1,413 2,268 16 Foreign currencies 7,578 2,915 -1,517 -136 -218 3,502 -64 -133 17 Change in U.S. private assets abroad (increase, -) -386,441 -464,354 -285,605 -60,256 -48,188 -19,335 -155,480 -102,760 18 Bank-reported claims3 -91,555 -144,822 -24,918 -33,344 37,192 27,771 -42,519 384 19 Nonbank-reported claims -86,333 -120,403 -25,041 -20,320 16,202 -13,853 -16,816 -32,098 20 U.S. purchases of foreign securities, net -115,859 -89,174 -102,817 14,994 -70,809 8,132 -64,579 -26,511 21 U.S. direct investments abroad, net -92,694 -109,955 -132,829 -21,586 -30,773 -41,385 -31,566 -44,535 22 Change in foreign official assets in United States (increase, +) 127,390 18,119 -21,684 -46,489 24,352 4,708 -628 12,106 23 U.S. Treasury securities 115,671 -6,690 -9,957 -32,811 31,836 800 -6,708 12,880 24 Other U.S. government obligations 5,008 4,529 6,332 1,906 1,562 5,993 5,792 1,932 25 Other U.S. government liabilities3 -316 -1,798 -3,113 -224 -1,054 -1,594 -647 -1,163 26 Other U.S. liabilities reported by U.S. banks3 5,704 22,286 -11,469 -12,866 -7,133 -589 1,437 -1,832 27 Other foreign official assets4 1,323 -208 -3,477 -2,494 -859 98 -502 289 28 Change in foreign private assets in United States (increase, +) 447,457 733,542 524,321 140,036 125,453 84,152 274,899 195,047 29 U.S. bank-reported liabilities2 16,478 149,026 40,731 77,313 -21,811 -14,184 34,938 30,965 30 U.S. nonbank-reported liabilities 39,404 107,779 9,412 11,875 -53,210 20,188 8,871 12,136 31 Foreign private purchases of U.S. Treasury securities, net 154,996 146,433 46,155 -1,438 24,391 -8,781 -5,407 9,713 3? U.S. currency flows 17,362 24,782 16,622 7,277 6,250 2,440 3,057 4,697 33 Foreign purchases of other U.S. securities, net 130,240 196,258 218,026 20,103 49,328 61,540 79,067 93,062 34 Foreign direct investments in United States, net 88,977 109,264 193,375 24,906 120,505 22,949 154,373 44,474 35 Capital account transactions, net5 672 292 617 148 166 166 178 166 36 Discrepancy -65,462 -143,192 10,126 31,878 -37,695 -5,224 -38,827 -15,887 37 Due to seasonal adjustment -10,582 4,144 5,264 276 -10,209 38 Before seasonal adjustment -65,462 -143,192 10,126 42,460 -41,839 -10,488 -39,103 -5,678 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) 6,668 -1,010 -6,784 -2,026 -2,369 4,068 11,,115599 1,950 40 Foreign official assets in United States, excluding line 25 (increase, +) 127,706 19,917 -18,571 -46,265 25,406 6,302 19 13,269 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 14,911 12,124 -11,499 -11,642 2,057 2,058 11,,996666 --11,,004477 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^tl. 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 May June July Aug. Sept. Oct. Nov.p 1 Goods and services, balance -104.318 -104,731 -164,282 -21,390 -24,604 -24,886 -23,953 -24,152 -25,563 -26,503 2 Merchandise -191.270 -196,652 -246,932 -27,899 -31,179 -31,422 -30,132 -30,211 -31,816 -32,445 3 Services 86.952 91,921 82,650 6,509 6,575 6,536 6,179 6,059 6,253 5,942 4 Goods and services, exports 849,806 938,543 933,907 77,978 78,623 79,122 82,171 82,025 82,334 82,891 5 Merchandise 612,057 679,715 670,246 55,121 55,472 55,890 59,139 58,934 58,927 59,543 6 Services 237.749 258,828 263,661 22,857 23,151 23,232 23,032 23,091 23,407 23,348 7 Goods and services, imports -954,124 -1,043,273 -1,098,189 -99,368 -103,227 -104,008 -106,124 -106,177 -107,897 -109,394 8 Merchandise -803,327 -876,366 -917,178 -83,020 -86,651 -87,312 -89,271 -89,145 -90,743 -91,988 9 Services -150,797 -166,907 -181,011 -16,348 -16,576 -16,696 -16,853 -17,032 -17,154 -17,406 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 2000 AAsssseett 11999966 11999977 11999988 June July Aug. Sept. Oct. Nov. Dec. Jan.p 1 Total 75,090 69,954 81,755 71,689 73,305 72,649 73,414 73,230 72,318 71,516 69,898 2 Gold stock, including Exchange Stabilization Fund' 11,049 11,050 11,041 11,046 11,048 11.046 11,047 11,049 11,049 11,089 11,048 3 Special drawing rights2,3 10,312 10,027 10,603 9,719 9,925 10,152 10,284 10,232 10,326 10,336 10,199 4 Reserve position in International Monetary Fund2 15,435 18,071 24,111 21,462 21,462 19,885 19,978 19,571 18,707 17,950 17,710 5 Foreign currencies4 38,294 30,809 36,001 29,462 30,870 31,566 32,105 32,378 32,236 32,182 30,941 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 2000 AAsssseett 11999966 11999977 11999988 June July Aug. Sept. Oct. Nov. Dec. Jan.p 1 Deposits 167 457 167 409 257 166 243 189 501 71 82 Held in custody 2 U.S. Treasury securities2 638,049 620,885 607,574 611,372 619,004 626,669 634,086 621,351 629,430 632,482 627,326 3 Earmarked gold3 11,197 10,763 10,343 10,329 10,329 10,271 10,155 10,114 10,015 9,933 9,866 1. Excludes deposits and U.S. Treasury securities held for international and regional 3. Held in foreign and international accounts and valued at $42.22 per fine troy ounce; not organizations. included in the gold stock of the United States. 2. Marketable U.S. Treasury bills, notes, and bonds and nonmarketable U.S. Treasury securities, in each case measured at face (not market) value. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A52 International Statistics • March 2000 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999 IItteemm 11999977 11999988 May June July Aug. Sept. Oct. Nov.p 1 Total1 776,505 759,933 760,410 765,708 773,494 782,505 778,681 782,881 780,767 By type 2 Liabilities reported by banks in the United States 135,384 125,878 124,270 126,180 125,873 126,220 124,148 124,509 124,197 3 U.S. Treasury bills and certificates3 148,301 134,177 136,199 138,518 147,492 153,499 152,457 154,582 153,465 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 421,573 421,970 420,197 422,591 420,877 419,629 417,141 5 Nonmarketable4 5,994 6,074 6,143 5,982 6,022 6,060 6,098 6,139 6,177 6 U.S. securities other than U.S. Treasury securities5 58,822 61,677 72,225 73,058 73,910 74,135 75,101 78,022 79,787 By area 7 Europe1 252,289 256,026 242,386 241,989 240,546 243,334 241,233 243,412 242,587 8 Canada 36,177 36,715 38,181 39,001 39,147 39,342 39,337 39,682 39,081 9 Latin America and Caribbean 96,942 79,498 81,075 76,828 77,832 75,339 74,279 73,613 72,324 10 Asia 400,144 400,641 411,739 421,282 430,050 438,300 437,957 439,862 441,042 11 Africa 9,981 10,059 9,326 8,378 8,376 8,119 8,215 7,847 7,153 12 Other countries 7,058 3,080 3,789 4,316 3,629 4,157 3,746 4,551 4,666 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 Dec. Mar. June Sept. 1 Banks' liabilities 109,713 103,383 117,524 101,125 101,359 97,751 110,322 2 Banks' claims 74,016 66,018 83,038 78,152 80,642 67,864 77,946 3 Deposits 22,696 22,467 28,661 45,985 42,147 41,895 48,719 4 Other claims 51,320 43,551 54,377 32,167 38,495 25,969 29,227 5 Claims of banks' domestic customers2 6,145 10,978 8,191 20,718 11,039 23,474 11,534 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1999 IItteemm 11999966 11999977 11999988 May June July Aug. Sept. Oct. Nov.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,162,148 1,283,027 1,347,771 1,352,678 1,382,649 1,339,888 1,385,468 l,378,674r 1,373,962 1,420,839 2 Banks' own liabilities 758,998 882,980 884,873 900,891 920,125 889,661 907,916 927,078r 931,629 977,736 3 Demand deposits 27,034 31,344 29,556 32,184 36,322 43,183 44,940 44,594 39,451 42,888 4 Time deposits2 186,910 198,546 152,226 156,515 156,677 156,891 154,299 156,338r 162,159 168,222 5 Other3 143,510 168,011 140,245 160,800 152,683 151,819 152,863 160,863r 155,812 162,718 6 Own foreign offices4 401,544 485,079 562,846 551,392 574,443 537,768 555,814 565,283r 574,207 603,908 7 Banks' custodial liabilities5 403,150 400,047 462,898 451,787 462,524 450,227 477,552 451,596r 442,333 443,103 8 U.S. Treasury bills and certificates6 236,874 193,239 183,494 177,768 179,351 187,872 192,096 189,030 188,486 184,675 9 Other negotiable and readily transferable instruments7 72,011 93,641 141,699 124,100 123,246 121,567 132,405 131,726r 131,464 130,970 10 Other 94,265 113,167 137,705 149,919 159,927 140,788 153,051 130,840r 122,383 127,458 11 Nonmonetary international and regional organizations8 . . 13,972 11,690 11,883 14,067 17,987 18,463 18,268 18,646 17,883 14,033 12 Banks' own liabilities 13,355 11,486 10,850 13,320 16,002 16,964 16,856 17,726 17,042 13,146 13 Demand deposits 29 16 172 25 49 66 31 21 187 70 14 Time deposits2 5,784 5,466 5,793 5,840 7,231 7,380 6,419 7,370 8,772 7,675 15 Other3 7,542 6,004 4,885 7,455 8,722 9,518 10,406 10,335 8,083 5,401 16 Banks' custodial liabilities5 617 204 1,033 747 1,985 1,499 1,412 920 841 887 17 U.S. Treasury bills and certificates6 352 69 636 616 956 953 896 661 628 658 18 Other negotiable and readily transferable instruments7 265 133 397 131 1,029 533 516 259 213 229 19 Other 0 2 0 0 0 13 0 0 0 0 20 Official institutions9 312,019 283,685 260,055 260,469 264,698 273,365 279,719 276,605 279,091 277,662 21 Banks' own liabilities 79,406 102,028 80,251 79,452 78,445 80,400 77,801 76,780 79,362 81,721 22 Demand deposits 1,511 2,314 3,003 2,789 2,952 2,652 2,537 2,932 2,314 2,829 23 Time deposits2 33,336 41,396 29,602 27,372 26,643 26,845 24,407 25,301 29,141 28,701 24 Other3 44,559 58,318 47,646 49,291 48,850 50,903 50,857 48,547 47,907 50,191 25 Banks' custodial liabilities5 232,613 181,657 179,804 181,017 186,253 192,965 201,918 199,825 199,729 195,941 26 U.S. Treasury bills and certificates6 198,921 148,301 134,177 136,199 138,518 147,492 153,499 152,457 154,582 153,465 27 Other negotiable and readily transferable instruments7 33,266 33,151 44,953 44,586 47,582 45,094 48,297 46,633 44,804 42,331 28 Other 426 205 674 232 153 379 122 735 343 145 79 Banks10 694,835 815,247 885,047 881,368 910,025 853,184 888,328 877,909r 874,000 921,380 30 Banks' own liabilities 562,898 641,447 675,998 676,341 695,251 656,403 676,931 692,279r 698,135 739,616 31 Unaffiliated foreign banks 161,354 156,368 113,152 124,949 120,808 118,635 121,117 126,996 123,928 135,708 32 Demand deposits 13,692 16,767 14,071 15,957 15,812 14,086 15,436 14,084 17,111 14,402 33 Time deposits2 89,765 83,433 46,219 49,217 47,998 49,540 49,444 49,593r 48,541 54,388 34 Other3 57,897 56,168 52,862 59,775 56,998 55,009 56,237 63,319r 58,276 66,918 35 Own foreign offices4 401,544 485,079 562,846 551,392 574,443 537,768 555,814 565,283r 574,207 603,908 36 Banks' custodial liabilities5 131,937 173,800 209,049 205,027 214,774 196,781 211,397 185,630 175,865 181,764 .37 U.S. Treasury bills and certificates6 23,106 31,915 35,359 28,323 27,757 28,284 26,314 24,749 22,203 19,512 38 Other negotiable and readily transferable instruments7 17,027 35,393 45,102 35,580 36,983 37,459 41,541 40,370 41,529 44,889 39 Other 91,804 106,492 128,588 141,124 150,034 131,038 143,542 120,511 112,133 117,363 40 Other foreigners 141,322 172,405 190,786 196,774 189,939 194,876 199,153 205,514r 202,988 207,764 41 Banks' own liabilities 103,339 128,019 117,774 131,778 130,427 135,894 136,328 140,293 137,090 143,253 42 Demand deposits 11,802 12,247 12,310 13,413 17,509 26,379 26,936 27,557 19,839 25,587 43 Time deposits2 58,025 68,251 70,612 74,086 74,805 73,126 74,029 74,074 75,705 77,458 44 Other3 33,512 47,521 34,852 44,279 38,113 36,389 35,363 38,662 41,546 40,208 45 Banks' custodial liabilities5 37,983 44,386 73,012 64,996 59,512 58,982 62,825 65,221r 65,898 64,511 46 U.S. Treasury bills and certificates6 14,495 12,954 13,322 12,630 12,120 11,143 11,387 11,163 11,073 11,040 47 Other negotiable and readily transferable instruments7 21,453 24,964 51,247 43,803 37,652 38,481 42,051 44,464r 44,918 43,521 48 Other 2,035 6,468 8,443 8,563 9,740 9,358 9,387 9,594' 9,907 9,950 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 14,573 16,083 27,026 24,141 22,569 21,811 22,565 24,367 26,550 28,320 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official dealers. Excludes bonds and notes of maturities longer than one year. institutions of foreign countries. 2. Excludes negotiable time certificates of deposit, which are included in "Other negotia- 7. Principally bankers acceptances, commercial paper, and negotiable time certificates of ble and readily transferable instruments." deposit. 3. Includes borrowing under repurchase agreements. 8. Principally the International Bank for Reconstruction and Development, the Inter- 4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiar- American Development Bank, and the Asian Development Bank. Excludes "holdings of ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory dollars" of the International Monetary Fund. agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists 9. Foreign central banks, foreign central governments, and the Bank for International principally of amounts owed to the head office or parent foreign bank, and to foreign Settlements. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. 10. Excludes central banks, which are included in "Official institutions." 5. Financial claims on residents of the United States, other than long-term securities, held by or through reporting banks for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A54 International Statistics • March 2000 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 IItteemm 11999966 11999977 11999988 May June July Aug. Sept. Oct. Nov.P AREA 50 Total, all foreigners 1,162,148 1,283,027 1,347,771 1,352,678 1,382,649 1,339,888 1,385,468 l,378,674r 1,373,962 1,420,839 51 Foreign countries 1,148,176 1,271,337 1,335,888 1,338,611 1,364,662 1,321,425 1,367,200 l,360,028r 1,356,079 1,406,806 52 Europe 376,590 419,672 427,367 434,124 430,580 438,232 450,827 456,949r 442,509 469,910 53 Austria 5,128 2,717 3,178 2,224 2,678 2,770 3,210 3,205 3,299 2,842 54 Belgium and Luxembourg 24,084 41,007 42,818 39,227 31,298 31,242 34,834 36,890r 38,590 41,171 55 Denmark 2,565 1,514 1,437 1,267 961 1,143 1,811 1,903 2,658 3,197 56 Finland 1,958 2,246 1,862 1,645 1,384 1,358 1,335 1,222 1,269 1,894 57 France 35,078 46,607 44,616 48,328 45,235 42,622 42,424 45,809 45,764 50,262 58 Germany 24,660 23,737 21,357 24,689 21,999 23,950 23,719 24,478 25,471 26,537 59 Greece 1,835 1,552 2,066 2,691 2,737 3,168 3,121 3,358 3,322 3,365 60 Italy 10,946 11,378 7,103 5,943 6,192 6,426 5,840 6,231 6,306 5,264 61 Netherlands 11,110 7,385 10,793 11,752 12,152 12,206 11,292 11,634 13,882 12,775 62 Norway 1,288 317 710 1,210 1,049 1,184 1,333 1,225 951 1,364 63 Portugal 3,562 2,262 3,235 2,461 2,439 2,237 1,912 1,976 1,875 2,148 64 Russia 7,623 7,968 2,439 2,794 2,871 2,756 2,665 2,816 3,713 3,655 65 Spain 17,707 18,989 15,775 8,083 8,678 7,700 8,194 9,479 9,281 11,222 66 Sweden 1,623 1,628 3,027 3,429 2,966 3,851 3,779 4,571 5,381 5,518 67 Switzerland 44,538 39,023 50,654 66,214 65,967 60,758 76,176 69,338 65,967 67,277 68 Turkey 6,738 4,054 4,286 5,810 5,914 7,786 7,883 8,368 8,252 8,820 69 United Kingdom 153,420 181,904 181,554 178,015 187,310 200,038 192,431 196,490 178,022 195,215 70 Yugoslavia11 206 239 233 242 254 289 270 266 267 267 71 Other Europe and other former U.S.S.R.12 22,521 25,145 30,224 28,100 28,496 26,748 28,598 27,690 28,239 27,117 72 Canada 38,920 28,341 30,212 28,543 30,416 29,862 30,409 29,728 34,995 33,746 73 Latin America and Caribbean 467,529 536,393 554,808 591,047 610,201 554,346 581,338 570,233r 573,126 593,790 74 Argentina 13,877 20,199 19,013 16,428 17,804 17,202 17,061 15,544 17,544 16,734 75 Bahamas 88,895 112,217 118,085 118,122 123,549 122,465 132,442 139,101 134,111 139,192 7b Bermuda 5,527 6,911 6,846 7,951 9,168 9,410 9,319 8,747 10,902 8,859 77 Brazil 27,701 31,037 15,800 17,295 14,696 15,389 15,399 16,208 13,223 14,184 /8 British West Indies 251,465 276,418 302,472 334,386 347,368 294,208 315,799 299,634r 308,539 325,738 19 Chile 2,915 4,072 5,010 7,236 5,918 6,744 5,805 6,601 6,559 6,521 80 Colombia 3,256 3,652 4,616 4,861 4,615 4,634 4,452 4,708 5,008 4,783 81 Cuba 21 66 62 64 70 70 72 76 72 73 82 Ecuador 1,767 2,078 1,572 1,800 1,930 1,975 1,724 1,792 1,833 1,930 83 Guatemala 1,282 1,494 1,333 1,449 1,468 1,425 1,521 1,471 1,484 1,577 84 Jamaica 628 450 577 547 527 471 533 550 549 546 85 Mexico 31,240 33,972 37,148 37,588 37,920 39,024 36,301 35,028 32,208 31,188 86 Netherlands Antilles 6,099 5,085 5,010 3,853 5,662 3,012 3,408 2,927 2,688 3,389 87 Panama 4,099 4,241 3,864 3,984 4,130 3,844 3,816 4,029 4,007 3,835 88 Peru 834 893 840 854 816 836 994 1,041 959 998 89 Uruguay 1,890 2,382 2,486 2,331 2,552 2,319 2,147 2,175 2,217 2,584 90 Venezuela 17,363 21,601 19,894 21,204 20,393 20,437 19,796 19,451 19,914 20,311 91 Other 8,670 9,625 10,180 11,094 11,615 10,881 10,749 11,150 11,309 11,348 92 249,083 269,379 307,960 269,026 276,917 228833,,221188 288,974 228877,,222277 228877,,996633 229922,,114422 China 93 Mainland 30,438 18,252 13,441 14,753 13,366 10,872 12,359 11,914 10,460 13,981 94 Taiwan 15,995 11,840 12,708 10,795 11,408 12,482 12,678 12,514 12,023 14,856 95 Hong Kong 18,789 17,722 20,900 25,728 24,575 24,200 24,149 23,368 24,299 22,275 96 India 3,930 4,567 5,250 5,520 5,421 5,864 5,408 5,625 5,659 5,610 97 Indonesia 2,298 3,554 8,282 6,211 6,530 7,309 6,633 6,468 6,037 6,486 98 Israel 6,051 6,281 7,749 7,004 6,144 5,076 5,059 5,688 5,175 5,071 99 Japan 117,316 143,401 168,563 132,605 143,635 145,652 145,403 149,578 151,632 152,095 100 Korea (South) 5,949 13,060 12,524 11,387 12,901 12,792 12,723 11,903 9,935 8,474 101 Philippines 3,378 3,250 3,324 2,492 2,273 2,177 2,189 2,414 2,134 2,639 102 Thailand 10,912 6,501 7,359 5,739 5,296 6,054 5,809 5,281 4,983 5,164 103 Middle Eastern oil-exporting countries13 16,285 14,959 15,609 15,453 15,168 15,581 15,942 14,367 16,825 17,944 104 Other 17,742 25,992 32,251 31,339 30,200 35,159 40,622 38,107 38,801 37,547 105 Africa 8,116 10,347 8,905 7,713 7,485 7,508 7,660 8,064 8,037 7,799 106 Egypt 2,012 1,663 1,339 1,339 1,576 1,566 1,851 1,852 1,364 1,846 107 Morocco 112 138 97 72 101 116 108 118 174 166 108 South Africa 458 2,158 1,522 1,132 1,091 1,049 885 753 828 957 109 Zaire 10 10 5 12 16 13 13 13 14 13 110 Oil-exporting countries14 2,626 3,060 3,088 2,508 2,247 2,281 2,510 2,807 2,912 2,244 111 Other 2,898 3,318 2,854 2,650 2,454 2,483 2,293 2,521 2,745 2,573 112 Other 7,938 7,205 6,636 8,158 9,063 8,259 7,992 7,827 9,449 9,419 113 Australia 6,479 6,304 5,495 6,820 7,624 7,252 6,963 6,788 8,199 8,394 114 Other 1,459 901 1,141 1,338 1,439 1,007 1,029 1,039 1,250 1,025 115 Nonmonetary international and regional organizations . . 13,972 11,690 11,883 14,067 17,987 18,463 18,268 18,646 17,883 14,033 116 International15 12,099 10,517 10,221 11,759 14,987 15,822 16,112 16,570 15,999 12,700 117 Latin American regional16 1,339 424 594 653 898 819 725 662 960 345 118 Other regional17 534 749 1,068 1,655 2,102 1,822 1,431 1,414 924 988 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in US. Dollars Millions of dollars, end of period 1999 AArreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 May June July Aug. Sept. Oct. Nov.p 1 Total, all foreigners 599,925 708,225 735,058 750,581 750,859 720,597 731,139 758,600 751,856 779,041 2 Foreign countries 597,321 705,762 731,441 746,094 746,786 716,190 727,983 755,010 746,932 774,040 3 Europe 165,769 199,880 233,320 265,789 299,977 292,697 305,153 316,097 293,559 313,269 4 Austria 1,662 1,354 1,043 2,902 2,514 3,855 3,080 2,335 2,746 2,407 5 Belgium and Luxembourg 6,727 6,641 7,187 9,811 10,028 9,214 7,463 7,229 9,624 9,332 6 Denmark 492 980 2,383 2,141 1,901 1,763 1,442 1,756 2,352 1,756 7 Finland 971 1,233 1,070 1,480 1,730 2,197 1,915 1,855 1,669 2,034 8 France 15,246 16,239 15,251 15,800 18,253 19,944 19,040 19,253 21,527 24,591 9 Germany 8,472 12,676 15,923 18,367 20,793 23,965 23,558 22,995 23,616 22,365 in Greece 568 402 575 585 551 628 659 663 743 754 11 Italy 6,457 6,230 7,283 6,434 6,783 7,451 7,747 7,957 6,670 7,297 12 Netherlands 77,,111177 6,141 5,697 8,588 8,724 9,334 10,132 9,425 8,940 8,099 n Norway 880088 555 827 753 717 821 583 1,252 949 920 14 Portugal 418 777 669 1,134 1,122 1,056 1,222 1,342 1,691 1,430 is Russia 1,669 1,248 789 1,016 768 831 782 814 871 711 16 Spain 3,211 2,942 5,735 4,516 6,178 4,606 3,700 5,104 4,073 4,659 17 Sweden 1,739 1,854 4,223 2,950 3,005 3,199 4,082 4,184 4,325 3,853 18 Switzerland 19,798 28,846 46,874 65,488 75,544 66,927 71,866 90,187 78,448 91,491 19 Turkey 1,109 1,558 1,982 1,918 2,288 2,219 2,268 2,383 2,392 2,463 20 United Kingdom 85,234 103,143 106,349 112,946 130,859 125,262 137,646 129,305 114,185 120,831 21 Yugoslavia2 115 52 53 54 54 50 49 50 51 50 22 Other Europe and other former U.S.S.R.3 3,956 7,009 9,407 8,906 8,165 9,375 7,919 8,008 8,687 8,226 23 Canada 26,436 27,189 47,036 41,116 37,454 31,957 32,109 37,197 35,903 37,060 74 Latin America and Caribbean 274,153 343,730 342,720 352,496 326,063 311,721 310,159 320,987 335,152 335,342 75 Argentina 7,400 8,924 9,553 10,318 10,776 10,482 10,257 10,296 10,153 10,038 76 Bahamas 71,871 89,379 96,455 78,480 71,996 77,049 77,674 85,386 87,085 87,179 77 Bermuda 4,129 8,782 5,011 6,276 6,111 7,813 9,747 8,481 9,887 9,449 78 Brazil 17,259 21,696 16,213 14,893 14,870 14,629 13,844 14,010 14,216 14,971 79 British West Indies 105,510 145,471 153,749 184,978 166,508 146,859 137,214 142,500 159,145 158,910 30 Chile 5,136 7,913 8,255 7,545 7,531 7,153 6,900 6,810 6,846 6,591 31 Colombia 6,247 6,945 6,523 5,877 5,570 5,590 5,046 4,821 4,800 4,745 37 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 1,031 1,311 1,400 1,104 1,069 993 889 844 793 762 34 Guatemala 620 886 1,127 1,157 1,033 1,075 1,053 1,064 1,084 1,090 35 Jamaica 345 424 239 327 303 311 322 330 318 308 36 Mexico 18,425 19,428 21,227 19,316 18,638 18,978 17,819 18,255 17,800 17,932 37 Netherlands Antilles 25,209 17,838 6,779 5,867 5,484 5,101 14,032 13,298 7,497 8,078 38 Panama 2,786 4,364 3,584 3,298 3,353 3,064 2,898 2,941 2,917 3,050 39 Peru 2,720 3,491 3,275 3,053 2,975 2,710 2,516 2,534 2,442 2,507 40 Uruguay 589 629 1,126 724 1,050 1,105 1,049 946 778 775 41 Venezuela 1,702 2,129 3,089 3,245 3,479 3,501 3,460 3,325 4,103 3,587 42 Other 3,174 4,120 5,115 6,038 5,317 5,308 5,439 5,146 5,288 5,370 43 122,478 125,092 98,606 77,699 74,693 72,240 73,247 72,449 73,072 78,427 China 44 Mainland 1,401 1,579 1,261 3,006 3,745 3,144 2,758 2,032 1,998 2,082 45 Taiwan 1,894 922 1,041 763 870 904 937 790 816 1,495 46 Hong Kong 12,802 13,991 9,080 4,977 7,102 5,333 4,969 5,224 4,740 6,010 47 India 1,946 2,200 1,440 1,458 1,569 1,708 1,728 1,736 1,856 1,972 48 Indonesia 1,762 2,651 1,942 2,061 1,760 1,791 1,711 1,689 1,636 1,681 49 Israel 633 768 1,166 1,236 1,955 1,433 1,669 951 857 1,059 50 Japan 59,967 59,549 46,712 30,664 27,093 25,900 26,226 27,978 28,339 30,280 51 Korea (South) 18,901 18,162 8,289 12,326 11,317 12,753 12,194 11,093 12,432 13,254 52 Philippines 1,697 1,689 1,465 1,808 1,669 1,380 1,279 1,491 1,562 990 53 Thailand 2,679 2,259 1,807 1,623 1,850 1,683 1,549 1,432 1,411 1,433 54 Middle Eastern oil-exporting countries4 10,424 10,790 16,130 10,569 10,127 9,396 11,211 11,379 10,667 11,631 55 Other 8,372 10,532 8,273 7,208 5,636 6,815 7,016 6,654 6,758 6,540 56 Africa 2,776 3,530 3,122 2,448 2,629 2,499 2,178 2,293 2,299 2,473 57 Egypt 247 247 257 221 241 252 209 225 251 226 58 Morocco 524 511 372 444 454 431 444 437 439 354 59 South Africa 584 805 643 640 724 598 449 506 589 873 60 Zaire 0 0 0 0 0 0 0 0 0 9 61 Oil-exporting countries5 420 1,212 936 288 340 297 280 323 253 282 62 Other 1,001 755 914 855 870 921 796 802 767 729 63 Other 5,709 6,341 6,637 6,546 5,970 5,076 5,137 5,987 6,947 7,469 64 Australia 4,577 5,300 6,173 6,093 5,636 4,811 4,907 5,770 6,696 7,272 65 Other 1,132 1,041 464 453 334 265 230 217 251 197 66 Nonmonetary international and regional organizations6. . . 2,604 2,463 3,617 4,487 4,073 4,407 3,156 3,590 4,924 5,001 1. Reporting banks include all types of depository institutions as well as some brokers and 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab dealers. Emirates (Trucial States). 2. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 5. Comprises Algeria, Gabon, Libya, and Nigeria. 3. Includes the Bank for International Settlements. Since December 1992, has included all 6. Excludes the Bank for International Settlements, which is included in "Other Europe." parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A56 International Statistics • March 2000 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 11999988 May June July Aug. Sept. Oct. Nov.P 1 Total 743,919 852,852 875,954 898,460 900,562 2 Banks' claims 599,925 708,225 735,058 750,581 750,859 720,597 731,139 758,600 751,856 779,041 3 Foreign public borrowers 22,216 20,581 23,540 36,616 37,344 38,465 35,689 34,995 40,570 39,246 4 Own foreign offices2 341,574 431,685 484,525 492,192 488,803 460,268 457,930 488,320 487,537 511,625 5 Unaffiliated foreign banks 113,682 109,230 106,281 99,864 104,102 99,715 108,961 102,051 97,298 99,389 6 Deposits 33,826 30,995 27,196 25,234 24,164 24,859 23,716 24,407 24,858 27,825 7 Other 79,856 78,235 79,085 74,630 79,938 74,856 85,245 77,644 72,440 71,564 8 All other foreigners 122,453 146,729 120,712 121,909 120,610 122,149 128,559 133,234 126,451 128,781 9 Claims of banks' domestic customers1 143,994 144,627 140,896 147,601 141,962 10 Deposits 77,657 73,110 79,363 94,575 87,222 11 Negotiable and readily transferable instruments4 51,207 53,967 47,914 42,670 40,604 12 Outstanding collections and other claims 15,130 17,550 13,619 10,356 14,136 MEMO 13 Customer liability on acceptances 10,388 9,624 4,519 4,450 4,614 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 39,661 33,816 39,978 31,210 29,165 32,857 32,336 27,750 33,827 37,163 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- paper. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1998 1999 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999955 11999966 11999977 Dec. Mar. June Sept. 1 Total 224,932 258,106 276,550 250,479 242,360 259,215 270,119 By borrower 2 Maturity of one year or less 178,857 211,859 205,781 186,585 175,402 186,861 198,303 3 Foreign public borrowers 14,995 15,411 12,081 13,669 20,902 24,656 22,809 4 All other foreigners 163,862 196,448 193,700 172,916 154,500 162,205 175,494 5 Maturity of more than one year 46,075 46,247 70,769 63,894 66,958 72,354 71,816 6 Foreign public borrowers 7,522 6,790 8,499 9,840 13,290 11,667 11,980 7 All other foreigners 38,553 39,457 62,270 54,054 53,668 60,687 59,836 By area Maturity of one year or less X Europe 55,622 55,690 58,294 68,679 66,875 84,721 82,744 9 Canada 6,751 8,339 9,917 10,948 7,832 6,705 8,598 10 Latin America and Caribbean 72,504 103,254 97,207 81,846 71,122 65,821 79,202 11 Asia 40,296 38,078 33,964 18,006 21,347 21,977 20,844 12 Africa 1,295 1,316 2,211 1,835 1,571 1,543 1,119 13 All other3 2,389 5,182 4,188 5,271 6,655 6,094 5,796 Maturity of more than one year 14 Europe 4,995 6,965 13,240 14,923 16,949 18,764 18,440 15 Canada 2,751 2,645 2,525 3,140 2,766 3,261 3,139 16 Latin America and Caribbean 27,681 24,943 42,049 33,443 33,539 36,910 37,046 17 Asia 7,94! 9,392 10,235 10,018 10,972 10,471 10,644 18 Africa 1,421 1,361 1,236 1,233 1,160 1,105 1,087 19 All other3 1,286 941 1,484 1,137 1,572 1,843 1,460 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Nonbank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1997 1998 1999 AArreeaa oorr ccoouunnttrryy 11999955 11999966 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 551.9 645.3 678.8 711.0 719.3 739.1 749.7 738.9 714.1 678.3 667.3 2 G-10 countries and Switzerland 206.0 228.3 250.0 247.8 242.8 249.0 278.3 268.3 255.8 246.4 255.7 3 Belgium and Luxembourg 13.6 11.7 9.4 11.4 11.0 11.2 16.2 15.1 13.4 14.1 14.8 4 France 19.4 16.6 17.9 20.2 15.4 15.5 20.5 19.9 18.4 19.5 18.4 5 Germany 27.3 29.8 34.1 34.7 28.6 25.5 28.8 28.9 31.1 32.0 29.2 Italy 11.5 16.0 20.2 19.3 15.5 19.7 19.5 18.0 11.5 13.2 11.6 1 Netherlands 3.7 4.0 6.4 7.2 6.2 7.3 8.3 8.1 7.9 8.9 10.9 8 Sweden 2.7 2.6 3.6 4.1 3.3 4.8 3.1 2.2 2.3 3.6 2.3 9 Switzerland 6.7 5.3 5.4 4.8 7.2 5.6 6.9 7.5 8.3 7.3 7.8 10 United Kingdom 82.4 104.7 110.6 108.3 113.4 120.1 134.9 130.4 121.5 110.6 122.7 11 Canada 10.3 14.0 15.7 15.1 13.7 13.5 16.5 15.6 16.7 15.7 16.5 12 Japan 28.5 23.7 26.8 22.6 28.6 25.8 23.7 22.8 24.7 21.3 21.6 13 Other industrialized countries 50.2 65.7 71.7 73.8 64.5 74.3 72.1 71.6 68.5 75.8 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 2.2 3.2 2.8 16 Finland .8 .8 1.4 1.9 1.3 1.5 1.4 1.6 1.5 1.4 .8 17 Greece 5.7 6.7 6.1 6.2 5.1 6.1 5.8 5.8 6.0 6.2 5.7 18 Norway 3.2 8.0 4.7 4.6 3.6 4.0 3.4 3.3 3.2 2.9 2.9 19 Portugal 1.3 .9 1.1 1.4 .9 .7 1.3 1.1 1.3 1.3 1.2 20 Spain 11.6 13.2 15.4 13.9 11.7 16.5 15.2 17.5 13.6 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 10.6 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 25.3 26.5 25 OPEC2 22.1 19.7 22.3 22.9 26.0 25.7 25.3 25.9 27.1 26.0 25.9 76 Ecuador .7 1.1 .9 1.2 1.3 1.3 1.2 1.2 1.2 1.1 1.0 77 Venezuela 2.7 2.4 2.1 2.2 2.5 3.3 3.2 3.1 3.2 3.4 3.1 78 Indonesia 4.8 5.2 5.6 6.5 6.7 5.5 5.1 4.7 4.8 4.5 4.9 79 Middle East countries 13.3 10.7 12.5 11.8 14.4 14.3 15.5 16.1 17.0 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 112.6 130.3 140.6 137.0 138.7 147.4 141.7 140.6 147.9 143.7 145.3 Latin America 37 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 27.2 24.9 24.2 23.6 24.7 34 Chile 6.8 7.0 7.6 8.0 8.7 9.0 9.1 9.3 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 25.3 18.9 18.0 37 .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 12.2 12.8 11.7 11.9 41 India 4.4 4.3 5.3 4.9 4.9 5.0 4.9 5.3 5.3 5.5 6.5 47, 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 13.7 13.3 14.9 44 Malaysia 4.4 6.0 6.4 5.6 5.1 4.5 4.7 5.1 5.7 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 6.1 5.1 53 Russia4 1.0 3.7 4.2 5.1 5.1 7.5 6.8 2.8 2.2 2.2 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 99.2 134.7 129.6 138.9 139.0 129.3 125.8 121.9 94.1 83.0 70.6 56 Bahamas 11.0 20.3 16.1 19.8 23.3 29.2 24.7 29.0 33.0 30.2 16.1 57 Bermuda 6.3 4.5 7.9 9.8 9.8 9.0 9.3 10.4 4.6 3.8 5.6 58 Cayman Islands and other British West Indies 32.4 37.2 35.1 45.7 43.4 24.9 34.2 30.6 15.4 6.3 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 3.9 3.9 3.9 61 Lebanon .1 .1 .1 .1 .1 .1 .1 .2 .1 .1 .1 67 Hong Kong, China 25.0 27.9 35.2 27.2 32.2 33.8 30.0 30.6 23.4 22.8 21.9 63 Singapore 13.1 16.7 16.7 12.7 12.7 15.0 13.5 11.1 11.2 13.1 14.6 64 Other" .1 .1 .3 .1 .1 .1 .2 .2 .2 .2 .1 65 Miscellaneous and unallocated7 57.6 59.6 57.6 80.8 99.1 101.3 95.7 104.5 115.5 97.3 88.1 1. Data after June 1999 are not available. 2. Organization of Petroleum Exporting Countries, shown individually; other members of The banking offices covered by these data include U.S. offices and foreign branches of U.S. OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered include Arab Emirates); and Bahrain and Oman (not formally members of OPEC). U.S. agencies and branches of foreign banks. Beginning March 1994, the data include large 3. Excludes Liberia. Beginning March 1994 includes Namibia. foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository 4. As of December 1992, excludes other republics of the former Soviet Union. institutions as well as some types of brokers and dealers. To eliminate duplication, the data 5. Includes Canal Zone. are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign 6. Foreign branch claims only. branch of the same banking institution. 7. Includes New Zealand, Liberia, and international and regional organizations. These data are on a gross claims basis and do not necessarily reflect the ultimate country 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 • March 2000 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1998 1999 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999955 11999966 11999977 June Sept. Dec. Mar. June Sept.p 1 Total 46,448 61,782 57,382 51,433 49,279 46,570 46,663 49,337 52,945 2 Payable in dollars 33,903 39,542 41,543 40,026 38,410 36,668 34,030 36,032 36,321 3 Payable in foreign currencies 12,545 22,240 15,839 11,407 10,869 9,902 12,633 13,305 16,624 By type 4 Financial liabilities 24,241 33,049 26,877 22,322 19,331 19,255 22,458 25,058 27,363 5 Payable in dollars 12,903 11,913 12,630 11,988 9,812 10,371 11,225 13,205 12,231 6 Payable in foreign currencies 11,338 21,136 14,247 10,334 9,519 8,884 11,233 11,853 15,132 7 Commercial liabilities 22,207 28,733 30,505 29,111 29,948 27,315 24,205 24,279 25,582 8 Trade payables 11,013 12,720 10,904 9,537 10,276 10,978 9,999 10,935 12,676 9 Advance receipts and other liabilities 11,194 16,013 19,601 19,574 19,672 16,337 14,206 13,344 12,906 10 Payable in dollars 21,000 27,629 28,913 28,038 28,598 26,297 22,805 22,827 24,090 11 Payable in foreign currencies 1,207 1,104 1,592 1,073 1,350 1,018 1,400 1,452 1,492 By area or country Financial liabilities 12 Europe 15,622 23,179 18,027 15,468 12,905 12,589 16,098 19,578 21,695 13 Belgium and Luxembourg 369 632 186 75 150 79 50 70 50 14 France 999 1,091 1,425 1.699 1,457 1,097 1,178 1,287 1,675 15 Germany 1,974 1,834 1,958 2,441 2,167 2,063 1,906 1,959 1,712 16 Netherlands 466 556 494 484 417 1,406 1,337 2,104 2,066 17 Switzerland 895 699 561 189 179 155 141 143 133 18 United Kingdom 10,138 17,161 11,667 8,765 6,610 5,980 9,729 13,097 15,096 19 Canada 632 1,401 2,374 539 389 693 781 320 344 20 Latin America and Caribbean 1,783 1,668 1,386 1,320 1,351 1,495 11,,552288 1,369 1,180 21 Bahamas 59 236 141 6 1 7 11 1 1 22 Bermuda 147 50 229 49 73 101 78 52 26 23 Brazil 57 78 143 76 154 152 137 131 122 24 British West Indies 866 1,030 604 845 834 957 1,064 944 786 25 Mexico 12 17 26 51 23 59 22 19 28 26 Venezuela 2 1 1 1 1 2 2 1 0 27 Asia 5,988 6,423 4,387 4,315 4,005 3,785 3,475 3,217 3,563 28 Japan 5,436 5,869 4,102 3,869 3,754 3,612 3,337 3,035 3,325 29 Middle Eastern oil-exporting countries' 27 25 27 0 0 0 1 2 3 30 Africa 150 38 60 29 31 28 31 29 31 31 Oil-exporting countries2 122 0 0 0 0 0 2 0 0 32 Allother3 66 340 643 651 650 665 545 545 550 Commercial liabilities 33 Europe 7,700 9,767 10,228 9,987 11,010 10,030 8,580 8,718 9,277 34 Belgium and Luxembourg 331 479 666 557 623 278 229 189 128 35 France 481 680 764 612 740 920 654 656 622 36 Germany 767 1,002 1,274 1,219 1,408 1,392 1,088 1,143 1,201 37 Netherlands 500 766 439 485 440 429 361 432 535 38 Switzerland 413 624 375 349 507 499 535 497 593 39 United Kingdom 3,568 4,303 4,086 3,743 4,286 3,697 3,008 2,959 3,175 40 Canada 1,040 1,090 1,175 1,206 1,504 1,390 1,597 1,670 1,753 41 Latin America and Caribbean 1,740 2,574 2,176 2,285 1,840 1,618 1,612 1,674 1,961 42 Bahamas 1 63 16 14 48 14 11 19 24 43 Bermuda 205 297 203 209 168 198 225 180 178 44 Brazil 98 196 220 246 256 152 107 112 121 45 British West Indies 56 14 12 27 5 10 7 5 39 46 Mexico 416 665 565 557 511 347 437 490 704 47 Venezuela 221 328 261 196 230 202 155 149 182 48 Asia 10,421 13,422 14,966 13,611 13,539 12,342 10,428 10,039 10,436 49 Japan 3,315 4,614 4,500 3,995 3,779 3,827 2,715 2,753 2,689 50 Middle Eastern oil-exporting countries' 1,912 2,168 3,111 3,194 3,582 2,852 2,479 2,209 2,623 51 Africa 619 1,040 874 921 810 794 727 832 960 52 Oil-exporting countries2 254 532 408 354 372 393 377 392 584 53 Other3 687 840 1,086 1,101 1,245 1,141 1,261 1,346 1,195 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 1998 1999 Type of claim, and area or country 11999955 11999966 11999977 June Sept. Dec. Mar. June Sept.p 1 Total 52,509 65,897 68,128 63,188 67,976 77,462 68,973 63,804 65,602 2 Payable in dollars 48,711 59,156 62,173 57,587 62,034 72,171 63,988 56,968 58,492 3 Payable in foreign currencies 3,798 6,741 5,955 5,601 5,942 5,291 4,985 6,836 7,110 By type 4 Financial claims 27,398 37,523 36,959 32,341 37,262 46,260 38,136 31,877 31,939 5 Deposits 15,133 21,624 22,909 14,762 15,406 30,199 18,686 13,350 13,967 6 Payable in dollars 14,654 20,852 21,060 13,084 13,374 28,549 17,101 11,636 12,015 7 Payable in foreign currencies 479 772 1,849 1,678 2,032 1,650 1,585 1,714 1,952 8 Other financial claims 12,265 15,899 14,050 17,579 21,856 16,061 19,450 18,527 17,972 9 Payable in dollars 10,976 12,374 11,806 14,904 19,867 14,049 17,419 14,762 15,005 10 Payable in foreign currencies 1,289 3,525 2,244 2,675 1,989 2,012 2,031 3,765 2,967 11 Commercial claims 25,111 28,374 31,169 30,847 30,714 31,202 30,837 31,927 33,663 12 Trade receivables 22,998 25,751 27,536 26,764 26,330 27,202 26,724 27,791 29,371 13 Advance payments and other claims .... 2,113 2,623 3,633 4,083 4,384 4,000 4,113 4,136 4,292 14 Payable in dollars 23,081 25,930 29,307 29,599 28,793 29,573 29,468 30,570 31,472 15 Payable in foreign currencies 2,030 2,444 1,862 1,248 1,921 1,629 1,369 1,357 2,191 By area or country Financial claims 16 Europe 7,609 11,085 14,999 14,091 14,473 12,294 12,800 13,898 13,618 17 Belgium and Luxembourg 193 185 406 518 496 661 469 457 574 18 France 803 694 1,015 796 1,140 864 913 1,368 1,152 19 Germany 436 276 427 290 359 304 302 367 499 20 Netherlands 517 493 677 975 867 875 955 959 1,067 21 Switzerland 498 474 434 403 409 414 530 504 559 22 United Kingdom 4,303 7,922 10,337 9,639 9,849 7,766 8,357 8,589 8,007 23 Canada 2,851 3,442 3,313 3,020 4,090 2,503 3,111 2,828 3,022 24 Latin America and Caribbean 14,500 20,032 15,543 11,967 15,758 27,714 18,825 11,486 11,221 25 Bahamas 1,965 1,553 2,308 1,306 2,105 403 666 467 755 26 Bermuda 81 140 108 48 63 39 41 39 77 27 Brazil 830 1,468 1,313 1,394 710 835 1,112 1,102 1,265 28 British West Indies 10,393 15,536 10,462 7,349 10,960 24,388 14,621 7,393 6,182 29 Mexico 554 457 537 1,089 1,122 1,245 1,583 1,702 1,791 30 Venezuela 32 31 36 57 50 55 72 71 47 31 Asia 1,579 2,221 2,133 2,376 2,121 3,027 2,648 2,801 3,205 32 Japan 871 1,035 823 886 928 1,194 942 949 1,250 33 Middle Eastern oil-exporting countries1 3 22 11 12 13 9 8 5 5 34 Africa 276 174 319 155 157 159 174 228 251 5 14 15 15 16 16 26 5 12 35 Oil-exporting countries2 583 569 652 732 663 563 578 636 622 36 All other3 Commercial claims 9,824 10,443 12,120 12,882 13,029 13,246 12,782 12,961 14,356 37 Europe 231 226 328 216 219 238 281 286 289 38 Belgium and Luxembourg 1,830 1,644 1,796 1,955 2,098 2,171 2,173 2,094 2,373 39 France 1,070 1,337 1,614 1,757 1,502 1,822 1,599 1,660 1,945 40 Germany 452 562 597 492 463 467 415 389 617 41 Netherlands 520 642 554 418 546 483 367 385 714 42 Switzerland 2,656 2,946 3,660 4,664 4,681 4,769 4,529 4,615 4,789 43 United Kingdom 44 Canada 1,951 2,165 2,660 2,779 2,291 2,617 2,983 2,855 2,638 45 Latin America and Caribbean 4,364 5,276 5,750 6,082 5,773 6,296 5,930 6,278 5,874 46 Bahamas 30 35 27 12 39 24 10 21 29 47 Bermuda 272 275 244 359 173 536 500 583 549 48 Brazil 898 1,303 1,162 1,183 1,062 1,024 936 887 761 49 British West Indies 79 190 109 110 91 104 117 127 157 50 Mexico 993 1,128 1,392 1,462 1,356 1,545 1,431 1,478 1,613 51 Venezuela 285 357 576 585 566 401 361 384 365 52 Asia 7,312 8,376 8,713 7,367 7,190 7,192 7,080 7,690 8,570 53 Japan 1,870 2,003 1,976 1,757 1,789 1,681 1,486 1,511 1,823 54 Middle Eastern oil-exporting countries' 974 971 1,107 1,127 967 1,135 1,286 1,465 1,474 55 Africa 654 746 680 657 740 711 685 738 681 56 Oil-exporting countries 87 166 119 116 128 165 116 202 221 57 Other3 1,006 1,368 1,246 1,080 1,691 1,140 1,377 1,405 1,544 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A60 International Statistics • March 2000 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1999 1999 Transaction, and area or country 1997 1998 Jan.— Nov. May June July Aug. Sept. Oct. Nov.? U.S. corporate securities STOCKS 1 Foreign purchases 1,097,958 1,574,185 2,086,996 185,646 179,785 188,099 178,428 175,565 219,307 241,634 2 Foreign sales 1,028,361 1,524,189 1,988,126 177,108 167,878 179,783 166,212 172,204r 211,547 223,044 3 Net purchases, or sales (—) 69,597 49,996 98,870 8,538 11,907 8,316 12,216 3,361r 7,760 18,590 4 Foreign countries 69,754 50,376 98,889 8,549 11,893 8,361 12,225 3,358r 7,786 18,565 5 Europe 62,688 68,124 85,063 5,260 7,663 6,171 9,568 7,236r 7,780 10,878 6 France 6,641 5,672 3,851 -206 919 -55 269 146 1,033 -350 / Germany 9,059 9,195 11,839 971 1,376 -354 1,322 110r 1,728 2,485 8 Netherlands 3,831 8,249 6,452 738 1,181 404 566 -538 164 1,375 9 Switzerland 7,848 5,001 4,256 481 1,452 -2,822 827 1,185 -1,404 480 10 United Kingdom 22,478 23,952 39,680 1,822 1,300 8,498 4,578 4,775 3,791 3,857 11 Canada -1,406 -4,689 489 -159 401 153 -50 -927 531 -1,030 12 Latin America and Caribbean 5,203 760 9,914 2,049 2,474 2,935 846 -4,688 -3,163 7,722 13 Middle East1 383 -1,449 -1,489 419 64 -273 174 -26 -15 -1,155 14 Other Asia 2,072 -12,347 3,781 574 1,271 -671 1,666 1,463 2,372 2,394 15 Japan 4,787 -1,171 5,513 464 681 -452 1,269 2,652 1,696 630 16 Africa 472 639 391 138 81 14 -39 61 -23 2 17 Other countries 342 -662 740 268 -61 32 60 239 304 -246 18 Nonmonetary international and regional organizations -157 -380 -19 -11 14 -45 -9 3r -26 25 BONDS2 19 Foreign purchases 610,116 905,782 796,296 66,558 67,569 75,778 64,641 76,270 80,934 73,513 20 Foreign sales 475,958 727,044 560,778 49,145 52,197 47,984 46,667 48,902 55,131 50,810 21 Net purchases, or sales (—) 134,158 178,738 235,518 17,413 15,372 27,794 17,974 27,368 25,803 22,703 22 Foreign countries 133,595 179,081 235,901 17,326 15,383 27,520 18,001 27,037 26,667 22,774 23 Europe 71,631 130,057 130,514 10,911 9,553 18,196 10,736 13,724 14,379 10,489 24 France 3,300 3,386 1,603 352 258 447 160 24 53 54 25 Germany 2,742 4,369 7,948 797 321 1,707 31 752 1,202 1,325 26 Netherlands 3,576 3,443 2,263 168 187 336 144 279 103 133 27 Switzerland 187 4,826 4,093 128 -26 705 322 496 360 431 28 United Kingdom 54,134 99,637 97,662 8,310 7,651 13,582 8,273 9,766 10,672 8,109 29 Canada 6,264 6,121 4,705 413 184 -23 286 908 263 1,140 30 Latin America and Caribbean 34,733 23,938 56,789 3,382 4,603 5,088 5,558 5,490 6,398 6,661 31 Middle East1 2,155 4,997 1,670 -717 -114 -182 -219 257 178 -506 32 Other Asia 16,996 12,662 39,696 3,224 1,458 4,031 1,179 6,698 4,847 4,675 33 Japan 9,357 8,384 15,440 0 310 3,020 827 4,375 2,081 2,297 34 Africa 1,005 190 1,154 82 -307 122 59 -189 343 146 35 Other countries 811 1,116 1,373 31 6 288 402 149 259 169 36 Nonmonetary international and regional organizations 563 -343 -383 87 -11 274 -27 331 -864 -71 Foreign securities 37 Stocks, net purchases, or sales (—) -40,942 6,227 17,776 2,455 6,220 -2,236 594 907r -8,189 4,388 38 Foreign purchases 756,015 929,923 1,051,720 86,345 97,622 106,264 91,851 97,456 96,609 129,676 39 Foreign sales 796,957 923,696 1,033,944 83,890 91,402 108,500 91,257 96,549r 104,798 125,288 40 Bonds, net purchases, or sales (-) -48,171 -17,350 -9,250 -499 8,969 -4,777 -6,421 1,132 -1,220 -438 41 Foreign purchases 1,451,704 1,328,281 746,074 72,372 79,013 63,975 70,061 66,661 62,533 59,684 42 Foreign sales 1,499,875 1,345,631 755,324 72,871 70,044 68,752 76,482 65,529 63,753 60,122 43 Net purchases, or sales (-), of stocks and bonds .... -89,113 -11,123 8,526 1,956 15,189 -7,013 -5,827 2,039r -9,409 3,950 44 Foreign countries -88,921 -10,778 8,399 2,056 15,219 -7,104 -6,010 2,109r -9,415 4,142 45 Europe -29,874 12,632 54,216 5,845 16,749 -3,759 -1,829 2,216r 2,186 2,235 46 Canada -3,085 -1,901 -2,276 -537 1,202 -1,055 525 303 321 -1,594 47 Latin America and Caribbean -25,258 -13,798 -4,999 -2,351 -2,785 445 -299 602 -1,827 6,505 48 Asia -25,123 -3,992 -37,475 -494 194 -3,330 -4,303 -362r -9,599 -3,578 49 Japan -10,001 -1,742 -40,041 -704 -1,241 -4,323 -4,805 -565 -10,006 -4,453 50 Africa -3,293 -1,225 178 112 -25 -21 4 -116 63 160 51 Other countries -2,288 -2,494 -1,245 -519 -116 616 -108 -534 -559 414 52 Nonmonetary international and regional organizations -192 -345 127 -100 -30 91 183 -70 6 -192 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.— May June July Aug. Sept. Oct. Nov.p Nov. 1 Total estimated 184,171 49,039 -14,603 5,638 -609 -6,242 19,118 87 -9,734 -3,613 2 Foreign countries 183,688 46,570 -15,092 5,316 -815 -6,226 18,847 -4 -9,905 -3,800 3 Europe 144,921 23,797 -32,696 -3,997 -5,796 -5,740 1,771 -9,268 -405 8,646 4 Belgium and Luxembourg 3,427 3,805 717 121 753 37 105 12 -351 -357 5 Germany 22,471 144 1,678 -290 538 643 1,438 -963 78 510 6 Netherlands 1,746 -5,533 1,854 797 -77 -1,224 453 -423 130 360 7 -465 1,486 1,382 -21 579 -229 876 -45 -6 369 8 Switzerland 6,028 5,240 -3,166 -121 971 -216 -714 234 365 146 9 United Kingdom 98,253 14,384 -16,750 -4,528 -7,215 1,385 1,934 -3,534 -1,854 5,838 10 Other Europe and former U.S.S.R 13,461 4,271 -18,411 45 -1,345 -6,136 -2,321 -4,549 1,233 1,780 11 Canada -811 615 7,128 2,580 460 1,382 1,339 1,459 -657 -551 P Latin America and Caribbean -2,554 -3,662 -8,334 1,364 -1,403 693 8,695 3,003 -9,911 -5,417 13 Venezuela 655 59 395 88 -31 131 15 10 25 154 14 Other Latin America and Caribbean -549 9,523 1,080 -123 -52 -43 1,650 2,982 -1,777 1,362 IS Netherlands Antilles -2,660 -13,244 -9,809 1,399 -1,320 605 7,030 11 -8,159 -6,933 16 39,567 27,433 19,641 5,631 6,489 -2,319 6,832 5,344 942 -6,630 17 Japan 20,360 13,048 11,839 1,284 4,905 -394 2,913 5,259 344 -4,378 18 1,524 751 -2,480 -198 -246 -178 -622 -302 -202 -680 19 Other 1,041 -2,364 1,649 -64 -319 -64 832 -240 328 832 20 Nonmonetary international and regional organizations 483 2,469 489 322 206 -16 271 91 171 187 71 International 621 1,502 115 223 -8 -101 233 98 184 125 22 Latin American regional 170 199 665 122 192 191 175 -9 -1 -4 MEMO 73 Foreign countries 183,688 46,570 -15,092 5,316 -815 -6,226 18,847 -4 -9,905 -3,800 74 Official institutions 43,959 4,123 -14,986 3,223 397 -1,773 2,394 -1,714 -1,248 -2,488 25 Other foreign 139,729 42,447 -106 2,093 -1,212 -4,453 16,453 1,710 -8,657 -1,312 Oil-exporting countries 76 Middle East2 7,636 -16,554 5,763 2,887 238 -38 130 440011 220011 --22,,005500 27 -12 2 1 0 0 0 1 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 • March 2000 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 2000 Aug. Sept. Oct. Nov. Dec. Jan. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 64.46 64.95 65.09 63.88 64.10 65.60 2 Austria/schilling 12.206 12.379 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3 Belgium/franc 35.81 36.31 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4 Brazil/real 1.0779 1.1605 1.8207 1.8859 1.8987 1.9688 1.9314 1.8442 1.8057 5 Canada/dollar 1.3849 1.4836 1.4858 1.4932 1.4771 1.4776 1.4674 1.4722 1.4486 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2772 8.2774 8.2775 8.2782 8.2794 8.2792 7 Denmark/krone 6.6092 6.7030 6.9900 7.0144 7.0828 6.9450 7.2019 7.3597 7.3492 8 European Monetary Union/euro3 n.a. n.a. 1.0653 1.0605 1.0497 1.0706 1.0328 1.0110 1.0131 9 Finland/markka 5.1956 5.3473 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 France/franc 5.8393 5.8995 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 Germany/deutsche mark 1.7348 1.7597 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Greece/drachma 273.28 295.70 306.30 307.84 311.68 307.71 318.24 326.19 326.86 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7638 7.7665 7.7696 7.7718 7.7728 7.7791 14 India/rupee 36.36 41.36 43.13 43.50 43.60 43.55 43.46 43.52 43.59 15 Ireland/pound2 151.63 142.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italy/lira 1,703.81 1,736.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 17 Japan/yen 121.06 130.99 113.73 113.23 106.88 105.97 104.65 102.58 105.30 18 Malaysia/ringgit 2.8173 3.9254 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 19 Mexico/peso 7.918 9.152 9.553 9.398 9.341 9.575 9.416 9.427 9.494 20 Netherlands/guilder 1.9525 1.9837 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 New Zealand/dollar2 66.25 53.61 52.94 52.59 52.30 51.42 51.22 50.87 51.27 22 Norway/krone 7.0857 7.5521 7.8071 7.8036 7.8361 7.7402 7.9367 8.0113 8.0241 23 Portugal/escudo 175.44 180.25 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Singapore/dollar 1.4857 1.6722 1.6951 1.6787 1.6965 1.6757 1.6699 1.6745 1.6757 25 South Africa/rand 4.6072 5.5417 6.1191 6.1302 6.0563 6.1029 6.1424 6.1503 6.1309 26 South Korea/won 947.65 1,400.40 1,189.84 1,198.31 1,201.00 1,205.29 1,176.98 1,136.80 1,130.99 27 Spain/peseta 146.53 149.41 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 Sri Lanka/rupee 59.026 65.006 70.868 71.868 71.942 71.747 72.040 72.018 73.140 29 Sweden/krona 7.6446 7.9522 8.2740 8.2589 8.2264 8.1492 8.3586 8.4910 8.4918 30 Switzerland/franc 1.4514 1.4506 1.5045 1.5093 1.5262 1.4896 1.5543 1.5841 1.5903 31 Taiwan/dollar 28.775 33.547 32.322 32.076 31.848 31.828 31.794 31.625 30.890 32 Thailand/baht 31.072 41.262 37.887 38.060 40.060 39.416 38.749 38.227 37.380 33 United Kingdom/pound2 163.76 165.73 161.72 160.58 162.47 165.72 162.05 161.32 164.04 34 Venezuela/bolivar 488.39 548.39 606.82 615.95 625.41 630.75 634.80 644.28 652.81 Indexes4 NOMINAL 35 Broad (January 1997 = 100)5 104.44 116.48 116.87 117.00 116.38 115.88 116.08 116.09 115.95 36 Major currencies (March 1973 = 100)6 91.24 95.79 94.07 94.31 92.92 91.94 92.87 93.23 93.14 37 Other important trading partners (January 1997= 100)7 104.67 126.03 129.94 129.73 130.60 131.06 129.93 129.34 129.14 REAL 38 Broad (March 1973 = 100)5 91.33 99.35 98.74r 99.08 98.53 98.00r 98.16 98.lO1 97.92r 39 Major currencies (March 1973 = 100)6 92.25 97.25 96.74r 97.13 95.91 95.02 96.12 96.42r 96.38 40 Other important trading partners (March 1973 = I00)7 95.87 I08.52r I07.72r 108.00 108.36 108.32 107.13 106.57 106.17r 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. The December 1999 Bulletin contains 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 1999 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks December 31, 1998 May 1999 A64 March 31, 1999 August 1999 A64 June 30, 1999 November 1999 A64 September 30, 1999 February 2000 A64 Terms of lending at commercial banks February 1999 May 1999 A66 May 1999 August 1999 A66 August 1999 November 1999 A66 November 1999 February 2000 A66 Assets and liabilities of U.S. branches and agencies of foreign banks December 31, 1998 May 1999 A72 March 31, 1999 August 1999 All June 30, 1999 November 1999 A72 September 30, 1999 February 2000 All Pro forma balance sheet and income statements for priced service operations March 31, 1999 July 1999 A64 June 30, 1999 October 1999 A64 September 30, 1999 January 2000 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 All 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
64 Federal Reserve Bulletin • March 2000 Index to Statistical Tables References are to pages A3-A62, although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Federal finance Assets and liabilities (See also Foreigners) Debt subject to statutory limitation, and types and ownership Commercial banks, 15-21 of gross debt, 27 Domestic finance companies, 32, 33 Receipts and outlays, 25, 26 Federal Reserve Banks, 10 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 Federal Housing Administration, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Land Banks, 35 Bankers balances, 15-21. (See also Foreigners) 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 Federal Reserve notes, 10 CAPACITY utilization, 43 Federally sponsored credit agencies, 30 Capital accounts Finance companies Commercial banks, 15-21 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 Paper, 22, 23 Weekly reporting banks, 17, 18 Float, 5 Commercial banks Flow of funds, 37-41 Assets and liabilities, 15-21 Foreign currency operations, 10 Commercial and industrial loans, 15-21 Foreign deposits in U.S. banks, 5 Consumer loans held, by type and terms, 36 Foreign exchange rates, 62 Real estate mortgages held, by holder and property, 35 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 Industrial production, 42, 44 DEBT (See specific types of debt or securities) Insurance companies, 27, 35 Demand deposits, 15-21 Interest rates Depository institutions Bonds, 23 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4, 5, 6, 12 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22 Discount rates at Reserve Banks and at foreign central banks am 1 International capital transactions of United States, 50-61 foreign countries (See Interest rates) International organizations, 52, 53, 55, 58, 59 Discounts and advances by Reserve Banks (See Loans) Inventories, 48 Dividends, corporate, 32 Investment companies, issues and assets, 32 Investments (See also specific types) EMPLOYMENT, 42 Commercial banks, 4, 15-21 Euro, 62 Federal Reserve Banks, 10, 11 Financial institutions, 35 FARM mortgage loans, 35 Federal agency obligations, 5, 9, 10, 11, 28, 29 LABOR force, 42 Federal credit agencies, 30 Life insurance companies (See Insurance companies) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
65 Loans (See also specific types) Savings and loan associations, 35, 36, 37^41 Commercial banks, 15-21 Savings deposits (See Time and savings deposits) Federal Reserve Banks, 5, 6, 7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Insured or guaranteed by United States, 34, 35 Foreign transactions, 60 New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Special drawing rights, 5, 10, 50, 51 Production, 43, 45 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 27 Member banks, reserve requirements, 8 New security issues, 31 Mining production, 45 Rates on securities, 23 Mobile homes shipped, 46 Stock market, selected statistics, 24 Monetary and credit aggregates, 4, 12 Stocks (See also Securities) Money and capital market rates, 23 New issues, 31 Moneystock measures and components, 4, 13 Prices, 24 Mortgages (See Real estate loans) Mutual funds, 13, 32 Student Loan Marketing Association, 30 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 NATIONAL defense outlays, 26 Thrift institutions, 4. (See also Credit unions and Savings institutions) National income, 48 Time and savings deposits, 4, 13, 15-21 Trade, foreign, 51 OPEN market transactions, 9 Treasury cash, Treasury currency, 5 Treasury deposits, 5, 10, 25 PERSONAL income, 49 Treasury operating balance, 25 Prices UNEMPLOYMENT, 42 Consumer and producer, 42, 47 U.S. government balances Stock market, 24 Commercial bank holdings, 15-21 Prime rate, 22 Treasury deposits at Reserve Banks, 5, 10, 25 Producer prices, 42, 47 U.S. government securities Production, 42, 44 Bank holdings, 15-21, 27 Profits, corporate, 32 Dealer transactions, positions, and financing, 29 Federal Reserve Bank holdings, 5, 10, 11, 27 REAL estate loans Foreign and international holdings and Banks, 15-21, 35 transactions, 10, 27, 61 Terms, yields, and activity, 34 Open market transactions, 9 Type of holder and property mortgaged, 35 Outstanding, by type and holder, 27, 28 Reserve requirements, 8 Rates, 23 Reserves US. international transactions, 50-62 Commercial banks, 15-21 Utilities, production, 45 Depository institutions, 4, 5, 6, 12 Federal Reserve Banks, 10 VETERANS Administration, 34, 35 U.S. reserve assets, 51 Residential mortgage loans, 34, 35 WEEKLY reporting banks, 17, 18 Retail credit and retail sales, 36, 42 Wholesale (producer) prices, 42, 47 SAVING YIELDS (See Interest rates) Flow of funds, 37^1 National income accounts, 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
66 Federal Reserve Bulletin • March 2000 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 MOLLY S. WASSOM, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director HOWARD A. AMER, Assistant Director WILLIAM C. WHITESELL, Assistant Director NORAH M. BARGER, Assistant Director NORMAND R.V. BERNARD, Special Assistant to the Board BETSY CROSS, Assistant Director DIVISION OF CONSUMER RICHARD A. SMALL, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, AND COMMUNITY AFFAIRS 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
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 PAUL W. BETTGE, Assistant Director MANAGEMENT DIVISION KENNETH D. BUCKLEY, Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JACK DENNIS, JR., Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources JOSEPH H. HAYES, JR., Assistant Director Function JEFFREY C. MARQUARDT, Assistant Director SHEILA CLARK, EEO Programs Director EDGAR A. MARTINDALE, Assistant Director MARSHA REIDHILL, Assistant Director DIVISION OF SUPPORT SERVICES JEFF STEHM, Assistant Director ROBERT E. FRAZIER, Director OFFICE OF THE INSPECTOR GENERAL GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director BARRY R. SNYDER, Inspector General DONALD L. ROBINSON, Deputy Inspector General 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
68 Federal Reserve Bulletin • March 2000 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman J. ALFRED BROADDUS, JR. JACK GUYNN LAURENCE H. MEYER ROGER W. FERGUSON, JR. JERRY L. JORDAN ROBERT T. PARRY EDWARD M. GRAMLICH EDWARD W. KELLEY, JR. ALTERNATE MEMBERS THOMAS M. HOENIG MICHAEL H. MOSKOW JAMIE B. STEWART, JR. CATHY E. MINEHAN WILLIAM POOLE STAFF DONALD L. KOHN, Secretary and Economist CHRISTINE M. CUMMING, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary ROBERT A. EISENBEIS, Associate Economist LYNN S. FOX, Assistant Secretary MARVIN S. GOODFRIEND, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID H. HOWARD, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel DAVID E. LINDSEY, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel VINCENT R. REINHART, Associate Economist KAREN H. JOHNSON, Economist THOMAS D. SIMPSON, Associate Economist MICHAEL J. PRELL, Economist MARK S. SNIDERMAN, Associate Economist JACK H. BEEBE, Associate Economist DAVID J. STOCKTON, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DOUGLAS A. WARNER III, President NORMAN R. BOBINS, 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 R. SCOTT JONES, Ninth District DAVID A. DABERKO, Fourth District C. Q. CHANDLER, Tenth District L. M. BAKER, JR., Fifth District RICHARD W. EVANS, JR., Eleventh District WILLIAM G. SMITH, JR., 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
69 CONSUMER ADVISORY COUNCIL DWIGHT GOLANN, Boston, Massachusetts, Chairman LAUREN ANDERSON, New Orleans, Louisiana, Vice Chairman WALTER J. BOYER, Dallas, Texas M. DEAN KEYES, St. Louis, Missouri TERESA A. BRYCE, Charlotte, North Carolina GWENN S. KYZER, Allen, Texas DOROTHY BROADMAN, San Francisco, California JOHN C. LAMB, Sacramento, California MALCOLM M. BUSH, Chicago, Illinois ANNE S. LI, Trenton, New Jersey ROBERT M. CHEADLE, Ada, Oklahoma MARTHA W. MILLER, Greensboro, North Carolina MARY ELLEN DOMEIER, New Ulm, Minnesota DANIEL W. MORTON, Columbus, Ohio JEREMY D. EISLER, Biloxi, Mississippi JEREMY NOWAK, Philadelphia, Pennsylvania ROBERT F. ELLIOTT, Prospect Heights, Illinois MARTA RAMOS, San Juan, Puerto Rico LESTER W. FIRSTENBERGER, Middletown, Connecticut DAVID L. RAMP, St. Paul, Minnesota JOHN C. GAMBOA, San Francisco, California RUSSELL W. SCHRADER, San Francisco, California ROSE M. GARCIA, Las Cruces, New Mexico ROBERT G. SCHWEMM, Lexington, Kentucky VINCENT J. GIBLIN, West Caldwell, New Jersey DAVID J. SHIRK, Tarrytown, New York KARLA S. IRVINE, Cincinnati, Ohio GARY S. WASHINGTON, Chicago, Illinois WILLIE M. JONES, Boston, Massachusetts ROBERT L. WYNN, II, Madison, Wisconsin THRIFT INSTITUTIONS ADVISORY COUNCIL F. WELLER MEYER, Falls Church, Virginia, President THOMAS S. JOHNSON, New York, New York, Vice President JAMES C. BLAINE, Raleigh, North Carolina CORNELIUS D. MAHONEY, Westfield, Massachusetts LAWRENCE L. BOUDREAUX III, New Orleans, Louisiana KATHLEEN E. MARINANGEL, McHenry, Illinois TOM R. DORETY, Tampa, Florida ANTHONY J. POPP, Marietta, Ohio BABETTE E. HEIMBUCH, Santa Monica, California MARK H. WRIGHT, San Antonio, Texas WILLIAM A. LONGBRAKE, Seattle, Washington CLARENCE ZUGELTER, Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
70 Federal Reserve Bulletin • March 2000 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, $35.00 per year or $.80 each. Federal Reserve Bank Board of Directors 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
71 STAFF STUDIES: Only Summaries Printed in the 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by James T. Fergus and John L. Goodman, Jr. July 1993. BULLETIN 20 pp. Studies and papers on economic and financial subjects that are of 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKgeneral interest. Requests to obtain single copies of the full text or ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING to be added to the mailing list for the series may be sent to PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, Publications Services. by Stephen A. Rhoades. July 1994. 37 pp. 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH print. IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. Lowrey, December 1997. 17 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and DENCE, by Gregory Elliehausen, April 1998. 35 pp. Donald Savage. February 1990. 12 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- KET DISCIPLINE, by Study Group on Subordinated Notes VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by and Debentures, Federal Reserve System, December 1999. Gregory E. Elliehausen and John D. Wolken. September 69 pp. 1990. 35 pp. 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
72 Federal Reserve Bulletin • March 2000 Maps of the Federal Reserve System \LASK \ HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San 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
73 1 -A 2-B 3-C 4-D 5-E Pittsburgh Baltimore MD X , CT VT wv NC NH ' Buffa ( lo / • Cincinnati • Charlotte M A" F NY Cf ^ Rl sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 5-F 7-G 8-H KY Birmingham - MO " ^SJJSVILLE LA AH _ c • Memphis New "Orleans Little . Rock < MS ATLANTA CHICAGO ST. LOUIS 9-1 Mi WT MINNEAPOLIS 10-J mm 12-L •BMMI flHflfllF Oklahoma- KANSAS CITY 11-K San A DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
74 Federal Reserve Bulletin • March 2000 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 Peter G. Peterson William J. McDonough Charles A. Heimbold, Jr. 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 David H. Hoag Jerry L. Jordan To be announced Sandra Pianalto Cincinnati 45201 George C. Juilfs Barbara B.Henshaw Pittsburgh 15230 John T. Ryan, III Robert B. Schaub RICHMOND* 23219 Jeremiah J. Sheehan J. Alfred Broaddus, Jr. Wesley S. Williams, Jr. Walter A. Varvel Baltimore 21203 George L. Russell, Jr. 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 D. Bruce Carr Andre T. Anderson Jacksonville 32231 William E. Flaherty Robert J. Slack Miami 33152 Karen Johnson-Street James T. Curry III Nashville 37203 Frances F. Marcum Melvyn K. Purcell1 New Orleans 70161 Dwight H. Evans Robert J. Musso1 CHICAGO* 60690 Arthur C. Martinez Michael H. Moskow Robert J. Darnall William C. Conrad Detroit 48231 Timothy D. Leuliette 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 J. Stephen Barger Thomas A. Boone Memphis 38101 Mike P. Sturdivant, Jr. Martha Perine Beard MINNEAPOLIS 55480 James J. Howard Gary H. Stern Ronald N. Zwieg Colleen K. Strand Helena 59601 William P. Underriner 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. H. B. Zachry, Jr. Helen E. Holcomb El Paso 79999 Beauregard Brite White Sammie C. Clay Houston 77252 Edward O. Gaylord 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
Cite this document
Federal Reserve (2000, February 29). Federal Reserve Bulletin, 2000-03. Bulletin, Federal Reserve. https://whenthefedspeaks.com/doc/bulletin_200003
@misc{wtfs_bulletin_200003,
author = {Federal Reserve},
title = {Federal Reserve Bulletin, 2000-03},
year = {2000},
month = {Feb},
howpublished = {Bulletin, Federal Reserve},
url = {https://whenthefedspeaks.com/doc/bulletin_200003},
note = {Retrieved via When the Fed Speaks corpus}
}