Federal Reserve Bulletin, 2000-04

Volume 86 • Number 4 • April 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 251 THE FEDERAL RESERVE BANKS AS FISCAL ing public disclosure in banking and identify AGENTS AND DEPOSITORIES OF THE the strengths and weaknesses of the process. UNITED STATES Regarding the potential for market discipline, the study suggests that greater reliance on The Federal Reserve, the nation's central bank, private-sector oversight in banking can be conis also the U.S. government's bank. As fiscal sistent with the supervisory goals of limiting agents of the United States, the Federal Reserve moral hazard and systemic risk and that the Banks provide the Department of the Treasury oversight can be effective. with services related to the federal debt— receiving bids for auction of Treasury secur- 262 INDUSTRIAL PRODUCTION AND CAPACITY ities and processing securities transactions. UTILIZATION FOR FEBRUARY 2000 As depositories, the Federal Reserve Banks provide payment-related services to the Treasury Industrial production increased 0.3 percent in and other government agencies—handling the February, to 142.1 percent of its 1992 average, government's account by accepting deposits and after having posted advances of 1.1 percent in clearing payments. This article describes the January and 0.5 percent in December. The rate nature of the primary fiscal agency and deposi- of capacity utilization for total industry held tory services required by the United States, steady at 81.7 percent, about 14 percentage point explains how the Reserve Banks meet those below its long-term average. requirements, and discusses the reimbursement for these services. 265 STATEMENTS TO THE CONGRESS Laurence H. Meyer, member, Board of Gover- 260 STAFF STUDIES nors, discusses issues regarding recent bank failures as well as steps being taken to minimize The use of market discipline as a complement to unnecessary costs to the bank insurance fund bank supervision and regulation has gained and disruption to the financial system and the greater acceptance in the United States and public that failures could pose; he testifies that abroad. It is also widely recognized that effecthe recent fraud-related bank failures have tive market discipline depends on market parcaused the regulators to challenge their ticipants' having information about the risks assumptions regarding the reliability of some and financial condition of banking organiof the information bank supervisors come to zations. Therefore, attention is being focused depend on during examinations and that when increasingly on ways to improve transparency in cracks appear in the veneer of what otherwise banking. seems to be a well-run operation, they will be Staff of the Federal Reserve System undermet with a greater dose of skepticism and a took a staff study, Improving Public Disclosure higher level of testing and verification (Testiin Banking, to consider initiatives that promote mony before the House Committee on Banking better disclosure in banking. The purpose of the and Financial Services, February 8, 2000). study is to present a set of initiatives that would reinforce the current process shaping disclosure 269 Alan Greenspan, Chairman, Board of Goverwhile avoiding additional regulatory require- nors, underscores the importance of efforts ments. The study lays the foundation for the in the Congress to modernize the Commodity initiatives by considering how market discipline Exchange Act (CEA) and testifies that it is could supplement supervision in principle and essential that the legal uncertainties created by by reviewing the empirical evidence on market the possibility that the courts could construe oversight and discipline in banking. Key sec- over-the-counter (OTC) derivatives to be futures tions of the study discuss the factors shap- contracts subject to the CEA be addressed; he Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

testifies further that with respect to fraud and 283 MINUTES OF THE FEDERAL OPEN other unfair practices, the professional counter- MARKET COMMITTEE MEETING HELD ON parties that use OTC derivatives simply do not DECEMBER 21, 1999 require the protections that the CEA provides At this meeting, the Committee adopted a direcfor retail investors (Testimony before the Senate tive that called for maintaining the federal funds Committee on Agriculture, Nutrition, and Forrate at an average of around 5Vi percent and estry, February 10, 2000). that was symmetrical with regard to the outlook 271 Chairman Greenspan, in his testimony present- for policy over the near term. ing the Board's report on the economy and monetary policy, states that underlying the per- 289 LEGAL DEVELOPMENTS formance of the U.S. economy, unprecedented in Various bank holding company, bank service his half-century of observing it, is a continuing corporation, and bank merger orders; and pendacceleration in productivity; he testifies further ing cases. that competitive and open markets, the rule of law, fiscal discipline, and a culture of enterprise AI FINANCIAL AND BUSINESS STATISTICS and entrepreneurship should continue to undergird rapid innovation and enhanced productivity These tables reflect data available as of that in turn should foster a sustained further rise February 25, 2000. in living standards (Testimony before the House Committee on Banking and Financial Services, A3 GUIDE TO TABULAR PRESENTATION February 17, 2000. Chairman Greenspan pre- A4 Domestic Financial Statistics sented identical testimony before the Senate A42 Domestic Nonfinancial Statistics Committee on Banking, Housing, and Urban A50 International Statistics Affairs on February 23, 2000). A63 GUIDE TO STATISTICAL RELEASES AND 276 ANNOUNCEMENTS SPECIAL TABLES Meeting of the Consumer Advisory Council. A64 INDEX TO STATISTICAL TABLES Proposal for a new regulation, Regulation P (Privacy of Consumer Financial Information), A66 BOARD OF GOVERNORS AND STAFF implementing the privacy provisions of the Gramm-Leach-Bliley Act. A68 FEDERAL OPEN MARKET COMMITTEE AND Joint proposal for revisions of the risk-based STAFF; ADVISORY COUNCILS capital requirements for certain obligations related to securitized transactions. A70 FEDERAL RESERVE BOARD PUBLICATIONS Release of a joint Treasury-Federal Reserve A72 MAPS OF THE FEDERAL RESERVE SYSTEM report on counterfeiting. Program for direct shipment of Golden Dollars A74 FEDERAL RESERVE BANKS, BRANCHES, to small financial institutions. AND OFFICES Enforcement actions. Changes in Board staff. Revisions to the money stock data. 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 Graphics Center under the direction of Christine S. Griffith, and Publications Services supervised by Linda C. Kyles. , Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Banks as Fiscal Agents and Depositories of the United States Paula V. Hillery and Stephen E. Thompson, of the Banks originated about 13 million book-entry trans- Board's Division of Reserve Bank Operations and fers with a value of $179 trillion, collected $2.1 tril- Payment Systems, prepared this article. lion in business taxes, processed 823 million government payments by direct deposit, and processed The Federal Reserve Act of 1913 provides that the 288 million government checks. Federal Reserve Banks will act as fiscal agents and The Reserve Banks' fiscal agency and depository depositories of the United States when required to do services are related to their involvement in the so by the Secretary of the Treasury. As fiscal agents, broader payments system. The Reserve Banks prothe Reserve Banks support the Department of the vide payment services to depository institutions that Treasury with services related to the federal debt. For include check processing, funds transfers, and autoexample, they receive bids for auctions of Treasury mated clearinghouse (ACH) payments. Providing securities to finance the debt and issue the securi- these services to the private sector gives the Federal ties in book-entry form. As depositories, the Reserve Reserve a base for delivering similar services to the Banks maintain the Treasury's account, accept depos- Treasury, for affording economies of scale, and for its of federal taxes and other federal agency receipts, assisting the Treasury with improvements and innoand process checks and electronic payments drawn vations in its services. on the Treasury's account. The General Acounting Advances in technology have spurred changes to Office certifies the Treasury's financial statements, many services provided by the Federal Reserve. including the effect of Reserve Bank operations (see Paper-based systems have been automated or are box "Audits by the General Accounting Office"). approaching an all-electronic state. Reserve Bank Although the Federal Reserve Banks also provide software systems have been modified or replaced services on behalf of many domestic and interna- to meet the government's changing needs. Recent tional government agencies, the majority of the fiscal improvements have focused on making both the colagency and depository services the Banks provide are lection and the disbursement of government funds performed for the U.S. Treasury. In 1999, the Reserve more effective and efficient. The Treasury and the Reserve Banks routinely modify, automate, or consolidate operations to achieve efficiencies and to reduce expenses over time. Since the early 1990s, the technological environ- Audits by the General Accounting Office ment has changed significantly.1 Electronic services, such as direct deposit of government payments, are The General Accounting Office (GAO) is required by statute to certify the annual consolidated financial state- rapidly replacing government checks. Governments, ments of the United States. As a result, the GAO con- businesses, and individuals rely increasingly on the ducts an annual audit of the Treasury's key financial Internet as a source of information and as a means reporting and accounting systems so that it can certify the of conducting business. Consumers have significantly statements. Because many of the Treasury's systems are increased their use of computers; many of them either operated by, or receive data from, Federal Reserve expect financial service providers, including the govsystems, these Federal Reserve operations also fall within ernment, to use web-based technologies and voice the scope of GAO audit attention. In addition to the usual response to process transactions. Over the years, the review of balances, the GAO conducts reviews of the physical and logical controls over access to Federal Reserve networks and systems that handle or process 1. This article is an update to an earlier one. See Gerald D. Treasury transactions. The GAO has concluded that Fed- Manypenny and Michael L. Bermudez, "The Federal Reserve Banks eral Reserve controls provide adequate safeguards. as Fiscal Agents and Depositories of the United States," Federal Reserve Bulletin, vol. 78 (October 1992), pp. 727-37. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

252 Federal Reserve Bulletin • April 2000 Federal Reserve Banks have worked closely with a depository institution, the Treasury required the the Treasury to improve these services in a variety institution to pledge collateral sufficient to protect the of ways, and they will continue to take advantage of funds. Although the process worked, it was inefficient new technologies. for the Internal Revenue Service, the depository institutions, and the Reserve Banks. As new technologies developed, the Reserve Banks improved the flow of COLLECTION OF FEDERAL TAX DEPOSITS tax payments and information from depository institutions; however, the changes resulted only in auto- As depositories of the United States, the Federal mating existing processes, and the funds collected Reserve Banks operate the systems that collect funds were not available to the Treasury until the day after for the Treasury and reinvest any funds collected that the taxes were due. Thus, the entire process remained are not needed to meet current obligations. The tax cumbersome. collection process is the foundation of this effort. The In 1986, the Treasury, in partnership with the Fed- Treasury first established the Reserve Banks as its eral Reserve, led an initiative to convert from the depositories in 1915 when it transferred its U.S. gov- paper-based tax collection system to an electronic ernment funds from national banks to Treasury one. Over the next several years, the Reserve Banks accounts at each Federal Reserve Bank. operated two pilot systems for tax collection. In Collection of business taxes by the Reserve 1993, the Congress passed the North American Free Banks—the single largest collection process within Trade Agreement Implementation Act (NAFTA), the federal government—was once a paper-based, which granted the Secretary of the Treasury authority labor-intensive process. Employers made tax pay- to mandate the use of electronic payment of business ments on a predetermined schedule based on the size taxes. It also contained specific financial goals for the of the employer's payroll: Larger businesses were acceleration of federal tax collections from 1994 generally required to make tax payments more fre- forward. quently than smaller organizations. Tax payments As a key part of its implementation strategy, the were made to a Treasury-designated depository insti- Treasury, through a competitive process, selected two tution, which, in turn, summarized the payments depository institutions in 1994 to serve as its financial and passed this information daily to the Reserve agents for electronic tax collections. In 1999, these Banks (see box "The Treasury's Balance at the Fed- financial agents processed more than $1.7 trillion in eral Reserve"). For Treasury balances invested with tax payments electronically via the ACH from businesses and quarterly filers and provided the Treasury and the Federal Reserve with the information needed to manage the Treasury's cash flows. Taxpayers with annual tax liabilities of less than $200,000 are not The Treasury's Balance at the required to submit tax payments electronically, Federal Reserve although the Treasury expects that most businesses will continue submitting their tax payments electroni- The Treasury maintains an account at each of the twelve cally because of the convenience. Electronic tax pay- Federal Reserve Banks. At the end of the day, these ments expedite tax collection and give the Treasury accounts are consolidated at the Federal Reserve Bank access to the collected funds on the tax due date of New York. The Treasury's current cash management rather than one day later as the paper-based system objective is to hold an end-of-day balance of $5 billion did. at the Federal Reserve. On major business tax payment dates, this target balance is raised to $7 billion. Now that electronic tax collection has accelerated The actual balance held by the Treasury at the Federal the availability of collections, the Treasury—not the Reserve is generally close to its target level except on depository institution—has overnight use of the funds those occasions when the Treasury's cash position collected. In 1999, the Reserve Banks collected exceeds the capacity of the banking system to accept approximately $2.1 trillion in business taxes and the Treasury's funds. (This capacity may be influenced reinvested approximately $944 billion. Later this by numerous factors, including available collateral.) On year, the Reserve Banks will convert to a centralized these occasions, the Treasury's balance at the Federal tax collection system that will permit more active Reserve can significantly exceed the target. The largest management of the Treasury's invested funds. The balance held by the Treasury at the Federal Reserve system will permit the Federal Reserve to place more occurred on April 30, 1997, when strong tax receipts tax proceeds into the banking system on a flow basis pushed the balance to $52.2 billion. throughout the day. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Banks as Fiscal Agents and Depositories of the United States 253 Collateral for Holding Public Monies The Automated Clearinghouse System Institutions holding public monies pledge to the Treasury The ACH system is an electronic funds transfer network sufficient collateral to protect the uninsured portion of that is predominantly used to make and settle recurring, Treasury investments they hold. Through the use of future-dated payments. As an example, the payment of restricted accounts, the Federal Reserve controls the social security benefits via the ACH occurs as follows. collateral pledged to secure these investments, along An ACH payments file is created that includes the paywith the collateral pledged to secure credit it extends ment amount, settlement date, and bank routing informato depository institutions. The Reserve Banks monitor tion. The file is sent electronically to the Federal Reserve the collateral pledged by depository institutions for both three to four days before the payment date. The Federal purposes. Reserve edits the data for accuracy, sorts the payment The method for determining the value of pledged information by receiving bank, sends a payment file to collateral is important in protecting the funds collected. If each receiving bank, and initiates accounting entries that reliable and active markets exist for the assets, collateral will debit the Treasury's account and credit each receivvaluation is generally based on market values; if market ing bank's accounts. The receiving bank credits each information is insufficient, valuation takes into account customer's account on the scheduled payment date. risk factors such as credit quality, payment streams, interest rate risk, and unanticipated credit or liquidity events. When this valuation method was adopted in 1998, the Federal Reserve was using a risk-based matrix to deter- ments for the government, including federal salamine the value of nonpriced collateral. Market pricing ries and benefits, interest, vendor payments, and variwas applied to definitive instruments in 1995. ous other government agency obligations (see the appendix). The federal government disburses most of its pay- As in the past, each depository institution will ments electronically from funds on deposit with the pledge collateral sufficient to cover the Treasury bal- Federal Reserve Banks. For recurring payments, such ances that it holds. The Reserve Banks will compare as social security benefits or salaries, the government the market value of the pledged collateral hourly uses the ACH, an electronic network that allows the with the amount of the investment that the depository Federal Reserve account of a depository institution to institution is holding. If investments are not suffi- be credited for payments from the Treasury's account ciently protected by the collateral's calculated market on a specified settlement day (see box "The Autovalue, then the Reserve Bank will adjust the invest- mated Clearinghouse System"). ment accordingly (see box "Collateral for Holding In the government sector, a fundamental benefit of Public Monies"). the introduction of the ACH system was the reduc- The Reserve Banks also support a number of more tion of problems with lost, stolen, or forged Treasury specialized collection processes for the Treasury, checks. The number of government ACH payments such as collection of delinquent debt, reporting of has increased steadily over the years and by 1991 governmentwide collections, and forecasting of exceeded for the first time the number of government government cash requirements. The Debt Collection payments made by check (chart 1). The Debt Collec- Improvement Act of 1996 gave the Treasury respon- tion Improvement Act of 1996 mandated that, subject sibility for collecting delinquent debt owed to the government. As fiscal agents, the Reserve Banks developed software that compares information about 1. Government payments processed by the Federal Reserve Banks, 1986-99 delinquent debts with government payments. When a match occurs, the payment is intercepted and offset Number (millions) by the Treasury to collect the debt. For example, an 800 individual who is due a tax refund but is delinquent ACH items — 700 in student loan payments will have the debt taken — 600 from the tax refund through this system. — 500 Checks \ — 400 ^^ 300 DISBURSEMENT OF GOVERNMENT PAYMENTS — 200 — 100 As depositories for the U.S. government, the Federal 1 1 1 1 1 1 1 1 1 1 1 1 1 i 1 Reserve Banks process paper and electronic pay- 1987 1989 1991 1993 1995 1997 1999 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

254 Federal Reserve Bulletin • April 2000 to the Secretary of the Treasury's waivers, most The Reserve Banks play an integral role in carryfederal payments be made electronically starting in ing out the Treasury's financing operations. Treasury 1999. By the end of that year, roughly three-fourths auctions, conducted through the Federal Reserve, of all government payments were made by ACH. determine the yields and prices of securities being The Federal Reserve has increased the use of tech- sold. The Federal Reserve operates a robust system to nology in processing government payments that are process the auctions, and those submitting tenders are made by check. It operates six check-scanning sites linked electronically to the system by a proprietary around the country and stores the resultant check Federal Reserve network or the Internet. To initiate images in a centralized archive. By capturing the borrowing, the Treasury announces the terms and check image, the costs of processing and storing conditions of securities being offered in an auction checks and the payment information on them are and invites investors to submit tenders (offers to reduced, thus saving taxpayer dollars. In 1999, the purchase securities) to selected Reserve Banks and Reserve Banks provided images of almost 231 mil- the Treasury. lion government check payments and processed Tenders are submitted either competitively or non- 226 million postal money orders. In mid-2000, the competitively. Most competitive bidders are large Reserve Banks will start providing imaging services depository institutions, brokers, and dealers that are for postal money orders. very familiar with the securities market. These bid- The Reserve Banks also perform more specialized ders submit an offer to purchase Treasury securities disbursement-related functions for the government. at a stated discount rate or yield, and competitive Generally, these functions involve specific applica- offers may be accepted, accepted in part, or rejected. tions to address unique program requirements. For Most individual bidders submit noncompetitive example, the Reserve Banks have developed applica- tenders, which state the amount the submitter wants tions to facilitate the disbursement of federal funds to purchase. for grants and food coupons. The Reserve Banks also The bids accepted from competitive submitters support the Treasury's effort to provide electronic determine the yield of the auction. Competitive transfer accounts (ETAs), which are designed to tenders represent most of the total dollar amount facilitate direct deposit of electronic payments to bid in the auctions, although the number of competipeople who have no transaction account at a financial tive bidders is relatively small. A comparatively large institution. number of individuals and corporations submit non- A less-visible role of the Reserve Banks is the competitive tenders. Successful competitive and all work done to support intragovernmental financial noncompetitive bidders are awarded securities at the management. For example, the Reserve Banks devel- highest discount rate or yield accepted in the auction. oped software that combines billing and collection The Treasury's auction rules limit the amount of information about intragovernmental transactions, noncompetitive submissions and prohibit bidders permits federal agencies to transfer balances to each from participating in both the noncompetitive and other, and provides Treasury with information to aid competitive auctions. in its cash forecasting. Once the Treasury determines which tenders are to be accepted, it announces the auction results publicly, and the Reserve Banks issue book-entry securi- SECURITIES SERVICES ties against payment. These payments are deposited to the Treasury's account at the Reserve Banks when Treasury Auctions the securities are issued. Over the years, as the Treasury and the Federal The federal government issues debt to cover the Reserve have consolidated and streamlined Treasury shortfall between receipts and expenditures and to auction operations, the time required to process each refinance its maturing debt. Most of this debt is auction has been reduced significantly. By shortening represented by Treasury securities, with securities the time between the auction close and the release issued by other federal agencies accounting for the of the results, the Treasury can decrease the risk to rest.2 bidders and increase competition. When competition is enhanced, the Treasury can usually auction its securities on terms that are more favorable to the government. 2. For a comprehensive discussion of the Treasury securities market, see Dominique Dupont and Brian Sack, "The Treasury Securities The federal government's improved financial posi- Market: Overview and Recent Developments," Federal Reserve Bulletin, vol. 85 (December 1999), pp. 785-806. tion, resulting in a decrease in borrowing needs, has Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Banks as Fiscal Agents and Depositories of the United States 255 caused the Treasury to reevaluate the government's Today the Federal Reserve System maintains two borrowing program. Besides reducing the number of book-entry systems for marketable Treasury securiauctions held and the amounts sold in individual ties: the National Book-Entry System and Treasury auctions, the Treasury has conducted debt buyback Direct. As the obligor of the securities, the Treasury (redemption) operations. In these operations, the maintains accountability for the total value of all Treasury purchases securities, which will then be marketable Treasury securities outstanding. redeemed, from their current owners through a competitive bidding process. The initial redemptions occurred in March 2000. National Book-Entry System The Federal Reserve Bank of New York conducts the buyback operations for the Treasury. Primary In 1998, the Federal Reserve Banks completed the dealers may submit competitive offers to sell securi- conversion of the twelve commercial book-entry ties on behalf of themselves and their customers. An applications to a single system, called the National announcement of a buyback operation specifies the Book-Entry System (NBES).3 It facilitates the safesecurities for which the Treasury will be accepting keeping and transfer of U.S. Treasury bills, notes, and offers. The Treasury may buy back securities up bonds; U.S. agency securities; mortgage-backed secuto the total amount stated in its announcement but rities issued by the Federal Home Loan Mortgage reserves the right to buy back less than that amount. Corporation and the Federal National Mortgage Association; and securities of certain international organizations such as the World Bank. This system Marketable Book-Entry Securities has proved to be safe and reliable, and because it Securities have been sold by the Treasury to finance provides broad, easy access to participants' bookthe public debt for more than 200 years. As tangible entry securities holdings, it contributes to the effievidence of a loan to the government, the Treasury ciency and liquidity of the government securities originally issued paper (printed or engraved) certifi- market. cates that were serially numbered and carried stated The NBES has two distinct components—a safevalues and a specific term. These definitive securities keeping function and a transfer and settlement funcwere issued as early as 1782—long before the Fed- tion. The safekeeping function involves the mainteeral Reserve Act—and this practice continued vir- nance of securities custody accounts. Private owners tually unchanged until the late 1960s. By then, the or custodians of government securities maintain these public debt had grown rapidly, paper certificates were securities in the form of electronic records and balincreasingly vulnerable to theft and counterfeiting, ances in custody accounts at depository institutions, and the cost of safekeeping and servicing them was which, in turn, maintain similar records in Reserve rising. Bank book-entry securities accounts. As fiscal agents, In 1968, the Treasury first offered investors the the Reserve Banks maintain the book-entry securities option of holding their Treasury securities in book- accounts for Treasury securities, reconcile activity entry form. In lieu of paper certificates, investors in them, issue transaction advices and account statecould have their securities entered in accounts on ments, and credit interest and principal to the the books of the Reserve Banks. Originally offered accounts of depository institutions. The safekeeping in 1965 for securities that Federal Reserve member function includes collateral safekeeping, in which the banks pledged as collateral, the book-entry option pledge of government securities is used to secure attracted greater support when unprecedented dollar obligations with local, state, and federal government amounts of Treasury securities were lost or stolen in agencies, as well as to secure Reserve Bank exten- 1969 and 1970. In 1971, insurance companies threat- sions of intraday and overnight credit. At the end of ened to withdraw coverage for institutions handling 1999, the safekeeping component of the NBES held definitive Treasury securities. Legal and regulatory concerns were addressed, and the book-entry system was expanded in 1973 to include Treasury securities owned by depository institutions' customers, dealers, 3. In its current form, the NBES is designed to standardize services nonmember banks, and, to a limited extent, indi- to depository institutions regardless of the Federal Reserve District in which they are located and to facilitate centralized computer processvidual investors. By early 1974, more than half of the ing at a single site. All twelve Reserve Banks are linked to the same marketable public debt was in book-entry form. By application, and there is one electronic vault for records of Treasury August 1986, all new Treasury securities were issued and agency book-entry securities. In general, the NBES operating hours are from 8:30 a.m. to 3:30 p.m., with securities repositioning in book-entry form. available until 7:00 p.m. ET. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

256 Federal Reserve Bulletin • April 2000 2. Government securities transferred through delivers securities from its securities account and the Fedwire securities transfer system, 1990-99 receives a corresponding credit to its funds account at the Federal Reserve. The institution receiving the Millions of transfers Trillions of dollars deposit of securities has the payment amount auto- 14 — Volume matically debited from its funds account at the Fed- — 200 12 — eral Reserve. Receivers of securities can return the 10 —- securities to the sender (transactions known as rever- — 150 Value 8 — sals) if the securities are received in error (that is, the 6 -*" — 100 security description or payment amount is wrong, or the receiver has no receipt instructions from its cus- 4 — — 50 tomer). The reversal process returns securities to the 2 — sender and reverses the cash accounting entries. 1 1 1 I I I! 1 1 1 1 1991 1993 1995 1997 1999 At year-end 1999, there were approximately 8,700 depository institution participants in the NBES. About 90 percent of book-entry activity is concenin custody approximately $4.2 trillion (par value) of trated among the large money center and regional securities. banks located in the Boston, New York, and Rich- The second component of the NBES is the transmond Federal Reserve Districts. Since 1990, the fer of securities between parties. Securities transfers value of securities transfers originated over the NBES through the NBES are processed individually in real has increased significantly. In 1999, the average daily time: Each individual transfer is cleared and settled securities volume originated was 53,165 transfers, almost immediately upon being entered into the syswith an average daily value of $712 billion. The tem. The transfer of securities ownership and related average value per securities transfer was $13.4 milfunds (if any) is final at the time of transfer. The lion (table 1). transfer and settlement components of the NBES, also known as the Fedwire securities transfer system, processed more than 13 million book-entry securities transfers during 1999 (chart 2). Treasury Direct Most securities transfers involve the delivery of securities and simultaneous exchange of payment for In the mid-1980s, the increasing availability of electhose securities. This process is called delivery- tronic services, coupled with the early book-entry versus-payment, or DVP.4 DVP transfers in the NBES system's success, led the way for more change. move funds from the depository institution receiving Depository institutions already relied on the comthe securities to the institution that originated the mercial book-entry system for secondary market transaction. The institution originating the transaction transactions. Individuals and organizations that were not eligible to use the commercial system participated indirectly through accounts held at depository 4. Alternatively, securities may be delivered free of payment over the NBES. Such deliveries, which are primarily associated with intra- institutions. bank transfers (or repositioning within a participant's account), Many individuals and organizations valued a direct account for only a small percentage of total book-entry transfer volume. relationship with the Treasury, so they held paper 1. Number, value, and growth of government securities transferred through the Fedwire securities transfer system, 1990-99 Volume of Annual Value of Annual Average Average daily Average daily transfers growth transfers growth value volume value Year originated of volume originated of value per transfer of transfers' of transfers1 (number) (percent) (millions of dollars) (percent) (millions of dollars) (number) (millions of dollars) 1990 10,877,413 -.1 99,861,205 4.4 9.18 43,336 397,853 1991 11,061,621 1.7 116,315,973 16.5 10.52 44,070 463,410 1992 11,753,217 6.3 139,675,710 20.1 11.88 46,455 552,078 1993 11,957,053 1.7 146,220,304 4.7 12.23 47,449 580,239 1994 12,590,196 5.3 144,702,226 -1.0 11.49 50,160 576,503 1995 12,810,706 1.8 149,764,431 3.5 11.69 51,039 596,671 1996 13,098,856 2.2 160,637,460 7.3 12.26 51,980 637,450 1997 12,944,447 -1.2 174,949,330 8.9 13.52 51,572 697,009 1998 14,365,609 11.0 197.781,609 13.1 13.77 57,006 784,848 1999 13,397,547 -6.7 179,486,282 -9.3 13.40 53,165 712,247 1. Based on the number of business days per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Banks as Fiscal Agents and Depositories of the United States 257 securities. To continue serving such investors di- are outstanding today. Current savings bond offerings rectly, the Treasury needed to create a special book- include the following: Series HH, Series EE, and entry system suited to the needs of its smaller inves- Series I. Series HH bonds are current income bonds tors. The proportion of marketable Treasury debt held obtained in exchange for eligible Series E or Series by nondepository institutions and individuals is small, EE bonds or savings notes and pay interest twice but much of it is held to maturity, so it is better suited a year through ACH transfers to the owner's desto a custodial type of accounting system than to the ignated account at a depository institution. Both transfer-oriented service that the NBES provides to Series EE and I bonds are accrual securities; interest depository institutions. earnings on these bonds accrue until the bond In 1986, the Treasury stopped issuing marketable matures or is redeemed. The Series I bond is similar paper securities for new offerings and replaced them to the Series EE except that its rate of return is with book-entry securities. The resulting Treasury adjusted for inflation. (Similar inflation-indexed Trea- Direct system, which primarily maintains accounts sury securities are also available.) for individuals and nonfinancial organizations, has The savings bond services that the Reserve Banks been quite successful and popular with investors. Not provide as fiscal agents include sale and delivery; only does it eliminate the need to issue physical, automated issuance of payroll and promotional marketable securities to individuals and organiza- bonds; exchanges of accrual bonds for current income tions, but it also makes all payments, including inter- bonds; and processing of reissues, replacements, and est due and redemption proceeds, through ACH trans- redemptions. In fiscal year 1999, the Federal Reserve fers to a depository institution account designated by issued 49 million savings bonds with a total value of the investor. Treasury Direct is an attractive invest- $4.6 billion. Almost all savings bonds to date have ment service for the public and an economical alter- been issued in paper, rather than electronic, form. native to physical Treasury securities. At year-end To improve the efficiency and reduce the cost of 1999, the Treasury Direct system had about 700,000 issuing savings bonds, the Treasury has worked with active accounts holding slightly more than $85 bil- the Federal Reserve to consolidate operations and has lion of Treasury bills, notes, and bonds. introduced new technology to the operating environment. For example, a savings bond can now be purchased on a recurring basis through an ACH debit Savings Bonds to the purchaser's bank account, or through the Trea- U.S. savings bonds are low-denomination, nonmar- sury's Internet web site using a credit card (see box ketable Treasury securities that are easily purchased, "Web Sites of Interest"). liquid, and safe—principal and interest are guaranteed by the U.S. government. Savings bonds provide the Treasury with an effective means of financing and PAYMENT FOR SERVICES also promote saving. In 1917, the Secretary of the Treasury initiated the Savings bonds have an important place in the hispractice of reimbursing the Reserve Banks for the tory of fiscal agency services. Federal Reserve Banks first served as fiscal agents in May 1917 when they began the distribution, safekeeping, and redemption of the First Liberty Loan bonds, which the govern- Web Sites of Interest ment sold to finance World War I. The success of this effort, the Reserve Banks' effectiveness in handling Board of Governors of the Federal Reserve System the Treasury's accounts, and the government's grow- http://www.federalreserve.gov ing need to borrow led the Treasury in 1921 to close Department of the Treasury its field offices (subtreasuries) and transfer many of http://www.treas.gov its operations for financing the public debt to the Financial Management Service Federal Reserve. After World War I ended, all Lib- http://www.fms.treas.gov erty Loan bonds were discontinued. Bureau of the Public Debt The Reserve Banks have serviced numerous series http://www.publicdebt.treas.gov of savings bonds. For most series, the Banks sold, Savings Bonds distributed, accounted for, and redeemed the bonds http://www.savingsbonds.gov for the Treasury. By 1941, the massive financing Treasury Direct required to wage World War II led to the introduction http://www.treasurydirect.gov of the popular Series E savings bonds, some of which Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

258 Federal Reserve Bulletin • April 2000 cost of services they were providing on behalf of the 2. Expenses of the Federal Reserve Banks for fiscal agency government. The Secretary reasoned that compensa- and depository services, 1999 tion for performance of fiscal agency and depository Thousands of dollars services was appropriate. A few years later, the Con- Agency and service Expense gress enacted legislation that permitted the use of public monies to reimburse Reserve Banks for the U.S. Treasury Bureau of the Public Debt costs associated with their governmental services. Savings bonds 70,285.8 Treasury Direct 40,446.2 Today the Federal Reserve expects to be reim- Commercial book-entry 15,744.2 Marketable Treasury issues 13,715.1 bursed for the costs of the Reserve Banks' fiscal Definitive securities and Treasury coupons 4,886.7 agency and depository services on behalf of the Trea- Other services 100.4 Total 145,178.4 sury and other agencies. Until 1992, the Treasury had Financial Management Service not been able to obtain congressional funding suffi- Treasury tax and loan and Treasury general account 34,971.0 cient to fully reimburse the Reserve Banks. Begin- Government check processing 33,365.4 Automated clearinghouse 11.263.4 ning in fiscal 1992, the Congress enacted "perma- Government agency deposits 2.422.7 Fedwire funds transfers 187.7 nent, indefinite" appropriation legislation to provide Other services 20.423.5 money to reimburse the Reserve Banks for the public- Total 102,633.7 debt-related operating expenses they incurred on Other Treasury 7.786.8 Total 7,786.8 behalf of the Bureau of the Public Debt. A simi- Total, Treasury 255,598.9 lar appropriation bill was passed in 1998 to permit the Financial Management Service and other fed- Other agencies Food coupons (Department of Agriculture) 18,643.9 eral agencies to reimburse the Reserve Banks for Postal money orders (U.S. Postal Service) . 6,623.3 Other services (miscellaneous agencies) ... 13,983.0 expenses incurred on their behalf. Total, other agencies 39,250.2 Full reimbursement of expenses incurred by the Reserve Banks as fiscal agents and depositories is an Total reimbursable expenses 294,849.1 important public policy concept for two reasons. First, congressional oversight of agency program budgets provides discipline that is lost with respect to CONCLUSION fiscal agency and depository services unless the enti- The fiscal agency and depository relationships ties receiving the services include the cost in their between the Federal Reserve System and the Treaappropriations requests. Second, when services are sury are complex and have evolved over time. In provided at no cost or are subsidized, they tend to be these roles, the Federal Reserve System has been and overused and less efficient than if they were obtained will continue to be an important resource to the U.S. in a more market-oriented manner governed by cost government. Technology will continue to play a cenand quality. By fully reimbursing the Reserve Banks, tral role in the provision of services to the governthe Treasury and other agencies have a basis to ment, and the Reserve Banks will position themevaluate the cost effectiveness of Federal Reserve selves to use technological advances for the benefit of services. In calendar year 1999, the Federal Reserve the government. sought reimbursement from the Treasury and other government entities of about $295 million (table 2). In 1998, the Federal Reserve received payments of $290 million. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Federal Reserve Banks as Fiscal Agents and Depositories of the United States 259 APPENDIX: GOVERNMENT ENTITIES RECEIVING FISCAL AGENCY AND DEPOSITORY SERVICES FROM THE FEDERAL RESERVE SYSTEM African Development Bank Federal Home Loan Mortgage Corporation Asian Development Bank Federal National Mortgage Association Commodity Credit Corporation Financing Corporation Department of Agriculture Government Printing Office Department of Defense Inter-American Development Bank Department of Education International Bank for Reconstruction Department of Energy and Development Department of Health and Human Services International Finance Corporation Department of Housing and Urban Development Library of Congress Department of State Small Business Administration Department of Transportation Social Security Administration Department of the Treasury Student Loan Marketing Association Department of Veterans Affairs Tennessee Valley Authority Farm Credit Administration U.S. House of Representatives Federal Agricultural Mortgage Corporation U.S. Postal Service Federal Deposit Insurance Corporation U.S. Senate Federal Home Loan Banks U.S. Supreme Court Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

260 Staff Studies The staff members of the Board of Governors of the necessarily indicate concurrence by the Board of Federal Reserve System and of the Federal Reserve Governors, by the Federal Reserve Banks, or by Banks undertake studies that cover a wide range of members of their staffs. economic and financial subjects. From time to time Single copies of the full text of each study are the studies that are of general interest are published available without charge. The titles available are in the Staff Studies series and summarized in the shown under "Staff Studies" in the list of Federal Federal Reserve Bulletin. The analyses and con- Reserve Board publications at the back of each clusions set forth are those of the authors and do not Bulletin. STUDY SUMMARY IMPROVING PUBLIC DISCLOSURE IN BANKING Federal Reserve System Study Group on Disclosure The use of market discipline as a complement to bank initiatives on disclosure in the United States; and supervision and regulation has gained greater accep- (5) assess current practices relating to disclosure of tance in the United States and abroad. It is also trading activities. widely recognized that effective market discipline Regarding the potential for market discipline, the depends on market participants' having information study suggests that greater reliance on private-sector about the risks and financial condition of banking oversight in banking can be consistent with the superorganizations. Therefore, attention is being focused visory goals of limiting moral hazard and systemic increasingly on ways to improve transparency in risk. Moreover, the oversight can be effective; the banking. evidence suggests that the market is able to assess the Staff of the Federal Reserve System undertook a condition of banking organizations and that their study to consider initiatives that promote better dis- relative riskiness tends to be reflected in the interest closure in banking. The purpose of the study is to rates on their debt, though the sensitivity to risk may present a set of initiatives that would reinforce the have been damped in more recent years. In the discurrent process shaping disclosure while avoiding closure process, banking firms have a large measure additional regulatory requirements. The study lays of flexibility in how they meet various disclosure the foundation for the initiatives by considering how requirements of standard setters such as the Securimarket discipline could supplement supervision in ties and Exchange Commission. Although this flexprinciple and by reviewing the empirical evidence on ibility helps banking firms respond to change in makmarket oversight and discipline in banking. Key sec- ing disclosures, the study identifies several areas for tions of the study discuss the factors shaping public improvement. These areas include four related to disclosure in banking and identify the strengths and credit risk—risk retained in securitization, risk-rating weaknesses of the process. The study includes appen- categories, contributions to loan-loss reserves, and dixes that (1) provide a summary of the study group's credit concentrations—and others related to market interviews with market analysts, institutional inves- risk and disclosures by lines of business. tors, rating agencies, and banking organizations; The study discusses several initiatives intended to (2) present quantitative information on potential promote better disclosure in banking. Steps already sources of market oversight in banking; (3) examine have been taken to increase the value of regulatory empirical evidence on the contributions of super- reports by accelerating the release to the public of visory information to bank transparency; (4) review information collected for the reports. In addition, the international initiatives as well as private-sector Federal Reserve is reviewing the confidential treat- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

261 ment of certain information in its regulatory reports, used for this purpose is outlined in the study's discuswith an eye to making some of the data public. The sion of an initiative that would have Federal Reserve study discusses the creation of a private-sector task examiners review the public disclosures of large force that would develop guidelines for disclosure banking organizations as part of the evaluation of by large banking organizations for the purpose of their management. Finally, to make better use of increasing the scope of public disclosure while trying market-related information, the Federal Reserve is to avoid new regulations. The task force could also establishing a system for tracking market data on provide comments on ways in which bank super- individual banking organizations and is assessing visory initiatives could promote better disclosure. An how to use those data as part of supervisory example of how the supervisory process might be surveillance. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

262 Industrial Production and Capacity Utilization for February 2000 Released for publication March 15 increased 0.3 percent, and mining output fell 0.7 percent. At 142.1 percent of its 1992 average, industrial Industrial production increased 0.3 percent in Feb- production in February was 5.6 percent higher than ruary after having posted advances of 1.1 percent in February 1999. The rate of capacity utilization in January and 0.5 percent in December. The output for total industry held steady at 81.7 percent, about of utilities increased 0.7 percent, manufacturing lA percentage point below its long-term average. Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity _ Industrial production r - 140 Capacity utilization _ 130 Manufacturing J/ 85 AA//\\ TToottaall iinndduussttrryy ** rV^ 120 — - ~ f Total industry 110 p l\ Jx/Zr * Manufacturing V f - 80 100 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 1988 1990 1992 1994 1996 1998 2000 Industrial production, market groups Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 ^ - - — Consumer goods 155 ~~ Intermediate products 155 - - — 145 — 145 _ Durable at* V - 135 ' - _ _ 135 — v'^vV Vu 125 Construction supplies ./A/ 125 — f — 115 — 115 - — 105 105 W Business supplies NNoonndduurraabbllee 9955 95 ii yy ii ii ii ii ii ii ii ii 1 1 1 1 1 1 1 1 1 1 Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 Equipment - 190 _ Materials _ 205 175 190 - - 160 175 145 160 Business - 130 ~ Durable goods/^^ — 145 115 130 115 100 — C y^ Nondurable goods and energy 100 Defense and space - 85 85 1 1 1 1 i i i i T T ^- 1 1 1 1 1 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, February. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

263 Industrial production and capacity utilization, February 2000 Industrial production, index, 1992=100 Percentage change CCCaaattteeegggooorrryyy 11999999 22000000 19991 2000 FFeebb.. 11999999 ttoo Nov.' Dec/ Jan./ Feb.P Nov/ Dec/ Jan/ Feb.P FFeebb.. 22000000 Total 139.4 140.2 141.7 142.1 .3 .5 1.1 .3 5.6 Previous estimate 139.5 140.1 141.5 .3 .4 1.0 Major market groups Products, total2 128.0 128.5 130.1 130.2 -.4 .4 1.3 .1 33..55 Consumer goods 117.6 118.2 119.6 119.5 -.5 .5 1.2 .0 2.0 Business equipment 175.0 174.9 179.4 179.6 .1 -.1 2.6 .1 8.0 Construction supplies 134.3 135.0 136.6 137.4 -.8 .5 1.1 .6 3.7 Materials 158.8 160.1 161.3 162.3 1.3 .8 .7 .6 9.2 Major industry groups Manufacturing 145.0 145.6 147.0 147.5 .5 .4 1.0 .3 55..99 Durable 177.4 178.5 181.3 181.9 .5 .6 1.6 .4 9.1 Nondurable 113.6 113.7 113.9 114.2 .6 .1 .2 .2 1.7 Mining 99.7 99.8 100.5 99.8 .5 .2 .6 -.7 2.4 Utilities 110.9 114.3 117.3 118.1 -3.7 3.1 2.7 .7 4.9 Capacity utilization, percent CCC MMM aaappp EEE aaa MMM ccciii OOO ttt yyy,,, pppeeerrr--ccceeennntttaaagggeee 1999 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, FFFeeebbb... 111999999999 11996677--9999 11998822 11998888--8899 tttooo Feb. Nov/ Dec/ Jan/ Feb.P FFFeeebbb... 222000000000 Total 82.0 71.1 85.4 80.4 80.9 81.1 81.7 81.7 3.9 Previous estimate 81.0 81.1 81.6 Manufacturing 81.1 69.0 85.7 79.7 80.3 80.4 80.9 80.9 4.3 Advanced processing 80.5 70.4 84.2 78.7 79.2 79.2 79.9 79.7 5.3 Primary processing . 82.4 66.2 88.9 82.8 83.8 83.8 84.0 84.2 2.1 Mining 87.3 80.3 88.0 80.9 83.0 83.1 83.7 83.3 -.5 Utilities 87.5 75.9 92.6 88.7 86.5 89.1 91.3 91.9 1.3 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 0.1 percent after a strong gain in January. The production of information processing and related equipment, The output of consumer goods was flat in February; a which was led by gains in the output of computers, 0.2 percent increase in the production of nondurable rose 1.2 percent after having increased about 4.5 pergoods was offset by a 1.0 percent decrease in durable cent over the previous two months. The output of goods. The output of durable consumer goods was transit equipment dropped back 2.2 percent because pulled down by a 1.7 percent decline in the produc- of a slowing in the assembly of motor vehicles and tion of automotive products. After a rebound in Janu- aircraft. The output of industrial equipment, which ary, motor vehicle assemblies fell back to a still-high had risen a brisk 2.7 percent in January, decreased level of 12.9 million units (annual rate). After strong only a bit. increases in the previous two months, the production The production index for construction supplies of other durable consumer goods slipped 0.3 percent, increased 0.6 percent, its third consecutive monthly with cutbacks in the output of carpeting and appli- gain. The output of materials was up 0.6 percent, ances accounting for most of the decrease. The pro- slightly less than the average gain in the preceding duction of nondurable consumer goods excluding three months. The output of durable goods materials energy inched up 0.1 percent. The output of con- rose 0.8 percent, with another strong increase in sumer energy products, which posted a 1.3 percent equipment parts, particularly semiconductors. The gain, was pushed up by increases in the production of output of nondurable goods materials jumped 1.2 perconsumer fuels and in utilities' sales to residences. cent, and the output of energy materials, which had The production of business equipment edged up increased 1.1 percent in January, fell 0.7 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

264 Federal Reserve Bulletin • April 2000 INDUSTRY GROUPS eration was widespread across categories of industrial machinery. After small gains in the previous two Manufacturing output rose 0.3 percent in February; months, production in nondurable manufacturing most major durable goods industries posted gains, increased another 0.2 percent, to a level 1.7 percent while the changes in nondurable goods industries higher than in February 1999. were more mixed. Production in durable manufac- The factory operating rate, at 80.9 percent, was turing strengthened 0.4 percent after a 1.6 percent unchanged. The utilization rate for primaryincrease in January. The robust growth in the pro- processing industries increased slightly, to 84.2 perduction of electrical machinery eased to 1.7 percent, cent, while that for advanced-processing industries about half the pace set in the previous two months; dipped 0.2 percentage point, to 79.7 percent. although semiconductor production remained strong, The output of utilities, which had rebounded the production of communications equipment was 3.1 percent in December and had increased a further little changed after having risen sharply in January. 2.7 percent in January, rose another 0.7 percent; the The production of industrial machinery and equip- operating rate at utilities rose to 91.9 percent. Mine ment (which includes computers) increased 0.6 per- production fell 0.7 percent, more than reversing the cent after a 2.5 percent pickup in January; the decel- gain in January. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

265 Statements to the Congress Statement by Laurence H. Meyer, Member, Board of of pressure on the Bank Insurance Fund. In 1991 the Governors of the Federal Reserve System, before the number of commercial banks on the problem bank Committee on Banking and Financial Services, U.S. list of the Federal Deposit Insurance Corporation House of Representatives, February 8, 2000 (FDIC) exceeded 1,000 institutions with more than half a trillion dollars in assets. As banking conditions I am pleased to appear on behalf of the Federal and the economy improved during the 1990s, the Reserve Board to discuss issues regarding recent industry worked to return to sound lending prinbank failures as well as steps being taken to minimize ciples, and the number of failing and problem banks unnecessary costs to the bank insurance fund and fell to levels more in line with other quiescent periods disruption to the financial system or the public that in banking. For example, since the beginning of failures could pose. Recent experience has shown 1993, only six state member banks have failed—a that despite vibrant economic conditions and a bank- failure rate lower than any similar period in the last ing industry in exceptionally strong financial con- two decades. The six banks ranged in asset size from dition, small pockets of lax standards, excesses, or $15 million to $280 million. As of year-end 1999, fraud, even within smaller organizations, can cause there were 1,010 state member banks with combined noticeable losses to the insurance fund. Today, I will assets of $1.3 trillion. discuss current strategies to minimize the frequency This past year, one state member bank with and costs of these unusual cases, recognizing that $17 million in assets failed, with an estimated cost no supervisory program can prevent all failures. To to the FDIC of approximately $1.6 million. While do so, even if achievable, would require a degree of the number of recent bank failures is minimal, the intrusiveness that would impose unusually high costs number of state member banks rated 3, 4, or 5 has and impede market discipline. increased for two consecutive years, to 43, the high- I would like to underscore before I begin that a est level since 1995. Nonetheless, the current level of fundamental economic function of banking organi- state member banks in less than fully satisfactory zations is to assume and manage risk. A highly condition remains less than 5 percent of total state risk-averse banking industry—either self-imposed or member banks supervised by the Federal Reserve, required by the banking agencies—would inhibit both in terms of number and assets. Although still financial capital from flowing to its highest and best modest by historical standards—the comparable use and prevent the economy from functioning opti- number of problem state member banks in 1991 was mally. To achieve the level of prosperity that we are 248—the current trend in the number of problem experiencing now, the banking industry must accept banks suggests that bank failures during 2000 may and manage a level of risk that does not totally rise somewhat, while remaining at fairly modest leveliminate the potential for failure. That said, failures els. This assumes, of course, continuation of current, as the result of fraud obviously should be avoided, strong economic conditions. taking into account, of course, the limits of what Despite the moderate rise in institutions with examinations can accomplish as well as supervisory less-than-satisfactory ratings, the banking industry costs. appears to be better prepared today to weather an economic downturn than it was during previous recessions. Today, most banking organizations are highly profitable. In addition, they hold greater TRENDS IN BANK FAILURES amounts of capital, are more geographically diversified, and are engaged in a greater variety of activities When banking conditions were troubled in the late that diversify their risks. While some relaxation in 1980s and early 1990s, hundreds of banks failed lending standards has caused us to issue warnings to because of troubled real estate markets, regional eco- the industry, such relaxation does not appear to be on nomic recessions, and lax lending standards. Those par with the excesses prevalent in the 1980s. Also, failures and their attendant costs placed a great deal banks appear to be more attentive to their lending Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

266 Federal Reserve Bulletin • April 2000 standards, are employing formal internal risk grades overall risk profile, on the one hand, and testing to a greater degree, and are more mindful of concen- transactions to verify that the bank's controls are trations of credit risk and other issues than they were functioning properly, on the other. For our part, we in the past. have calibrated that balance based on the supervisor's On the other hand, banks today face new chal- level of comfort in the bank's management team lenges. For one, banks have been gradually losing and the level of problems, weaknesses, or exceptions their lower cost and more stable retail deposit base uncovered in our review. As an examiner's level of and have become more dependent on wholesale discomfort increases, the level of transaction testsources to fund their balance sheet growth. At the ing and verification procedures increases. I should same time, banks are still learning to manage the risk emphasize that Federal Reserve examinations of of newer and more complex activities. Some smaller banks continue to involve an in-depth review of the institutions, in particular, face a challenge in manag- loan portfolio, though with newly improved sampling ing this risk as they take on growth in higher risk techniques, when appropriate, to ensure that our covportfolios such as subprime loans and as they employ erage of the portfolios is more likely to detect any more sophisticated portfolio management techniques embedded problems. such as securitizations. Challenges in managing risk At the same time, however, it is important to note are likely to increase for both large and small bank- that these reviews have become less frequent for ing organizations, as well as for bank supervisors, most small banks (with assets of $250 million or less) as bank affiliations expand, encompassing securities, in recent years. Statutory changes have extended insurance, and other new financial activities. the maximum time between examinations from one year to eighteen months for well-capitalized and wellmanaged banks to minimize regulatory burden to THE RISK-FOCUSED PROCESS those organizations. Absent indications of deterioration, material change, or unusual circumstances in To meet the challenge of more complex financing those organizations, we have tried to adhere to the techniques, products, and delivery systems and to extended cycles and thereby limit supervisory burden avoid the excesses and mistakes of the past, on these banks. To limit the regulatory burden of dual banks—in particular, large banks—have been imple- examinations, Federal Reserve examinations of wellmenting more formal and complex risk-management capitalized and well-managed state member banks systems. Smaller banks may increasingly rely on less are frequently conducted on an alternating basis with formal or less sophisticated systems to manage risk the states. Less frequency in examinations by either in small portfolios. the Federal Reserve or the state, of course, increase Similarly, supervisors have refined their approach the risk of an unpleasant surprise at the next examinato supervision of banks of all sizes by adopting a tion, or even between examinations. As set forth in risk-focused approach to meet new challenges. The legislation, that risk has been judged to be acceptable risk-focused approach emphasizes the need to assess given the tradeoff between the benefits of more conthe adequacy of internal systems and controls and stant supervision and the attendant regulatory burden to recognize weaknesses in "process" before such to community banks. weaknesses have permeated the bank's balance sheet Moreover, we have implemented a number of meaand adversely impacted financial performance. At the sures to minimize the risk presented by less frequent same time, however, sufficient testing of the loan on-site presence in smaller, well-capitalized, and portfolio and other transactions to ensure that the well-managed institutions. For example, we conduct "process" is, in fact, being used, and that safe and off-site monitoring of these institutions based on sound risk-taking is occurring, remains as important quarterly financial and other reports. Additionally, today as it was in the late 1980s and early 1990s in we contact bank management between examinations identifying traditional credit and control problems. to identify changes in such areas as lending and key management that could affect the bank's financial condition. This monitoring and interim contact provides value in that it may trigger acceleration of THE BALANCE BETWEEN RISK ANALYSIS AND a regularly scheduled examination or result in an TRANSACTION TESTING unscheduled visitation if deteriorating or unusual financial performance or other material changes are In carrying out risk-focused supervision, a balance noted. Notwithstanding these efforts, off-site monitormust be struck between evaluating the soundness ing cannot detect the valuation deficiencies that may of both an institution's risk-management process and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 267 be revealed in the on-site testing of individual loans Similarly, we also participated in interagency guidor transactions. ance regarding the valuation of residual loan assets A further challenge to the supervisory program is, associated with securitization programs. Improper ironically, the infrequency of substantive problems valuation of residual assets, of course, caused a porin banking organizations. As many of the more sea- tion of losses borne by the insurance fund in 1999. soned examiners of the 1980s and early 1990s are We have been working with the other banking agenretiring, the examiners hired over the past several cies on an initiative to better incorporate the risks years have little experience to fall back on when associated with securitizations into the minimum encountering questionable portfolios or valuations or capital standards. Moreover, we are working with unusual transactions. While we have beefed up train- supervisors here and in other countries to moderning to deal with this gap, there is obviously nothing ize the international capital standards, enhance like actual experience in dealing with difficult super- supervision, and heighten the positive effect of marvisory situations. ket discipline on banking organizations. IDENTIFYING PROBLEMS IN EARLY STAGES COMBATING FRAUD A key objective of risk-focused examinations is to Our risk-focused approach coupled with industry identify problems at an early stage. Toward that sound-practice guidance and other supervisory objective, we have tracked changes in bank lending responses are effective tools for meeting our objecstandards through such measures as an in-depth and tives of maintaining a sound banking system. More virtually simultaneous review of lending standards at recently, however, the incidence of fraud at bankselected banks and periodic surveys of senior lenders ing organizations has raised different challenges. The and examiners on banks' lending standards and conexamination process is not designed to ferret out ditions. As a result of these and other measures, we fraud; indeed, examinations rely to a significant have identified a level of relaxation of lending standegree on internal and external auditors to validate dards for some credits that raises supervisory conthe accuracy of the financial data that are the raw cerns. In response, we have issued guidance to the material of the examination process. Nonetheless, the industry regarding undue reliance on overly optimisexamination process often tends to be the pressure tic assumptions, as well as improvements that could point under which fraud is ultimately detected and be made in stress testing and other analysis. Another revealed. That said, it is extremely difficult to detect aspect of our monitoring involves institutions that fraud perpetrated by individuals intent upon covspecialize in potentially higher risk activities. In parering up outright theft or severe problems through ticular, the Federal Reserve is monitoring the activiforging, hiding, or destroying documents and other ties of state member banks engaged in subprime techniques. lending activities as well as those retaining recourse To address the risk that fraud places on the banking in securitized assets. In addition, our surveillance organizations that we supervise, the Federal Reserve program uses bank Report of Condition and Income has undertaken numerous initiatives to combat fraud (Call Report) data and econometric relationships to within those institutions. Training for examiners on flag for review institutions that are statistically at detecting various types of fraud and abuse is prohigher risk of failure. vided in numerous programs offered by the Federal Reserve and the Federal Financial Institutions Exami- OTHER PREVENTIVE INITIATIVES nation Council (FFIEC). Examiners receive specialized training in areas such as potential abuse and In addition to the steps in our supervisory program conflicts of interest by management. Moreover, in I have just discussed, we are also engaged in conjunction with the FFIEC, all of the federal bank other preventive initiatives. For example, we have supervisory agencies recently began developing a worked with the other agencies in issuing guidance CD-ROM training and reference tool that identifies regarding the risk associated with subprime lending. and describes various types of improper activity relat- Currently, we are discussing with the other banking ing to insider abuse, loan fraud, money laundering, agencies the issuance of further guidance or regula- and fraudulent monetary instruments. This CD-ROM tion on subprime lending, including whether formal, tool will be accessible to examiners while in the field. explicit capital requirements should be introduced, Also, several years ago, in response to major fraud and if so, what those requirements should be. such as that which occurred in the case of the Bank of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

268 Federal Reserve Bulletin • April 2000 Credit and Commerce International, the Federal fited from its expertise and assistance in resolving Reserve Board created a special investigations unit problem institutions and believe that, historically, consisting of senior investigators and examiners. This both agencies have benefited from information unit investigates potential fraud that is identified dur- sharing. ing the course of an examination and forwards useful The proposed H.R. 3374, the "Federal Deposit and relevant information to law enforcement for po- Insurance Corporation Examination Enhancement tential criminal prosecution, as appropriate. and Insurance Fund Protection Act," shifts to the In addition, we are also re-evaluating our reliance chairperson of the FDIC authority that currently on internal and external audit evaluations. The appro- resides in the board of directors of the FDIC to authopriate degree of reliance on internal and external rize a special examination of any insured depository auditors is much easier to determine when there are institution. The bill would also require the FDIC to indications that bank management may not be fully make all reasonable efforts to coordinate any special trustworthy or is less than forthcoming in provid- examination with the primary federal banking supering requested information. In such cases, direct asset visor for the insured depository institution and to give verification or more in-depth investigation would notice to certain agencies not represented on the clearly be warranted. Absent such indications of board of the FDIC whenever a special examination is wrongdoing or "red flags," however, a reduction in scheduled of an institution supervised by the unreprereliance on internal and external audit evaluations sented agency. In addition, the bill requires the bankcould result in increased burden to the many banking ing agencies to provide to the FDIC, as promptly as organizations that are not engaged in fraud. practicable, any examination report prepared by the agency and to establish procedures for providing the FDIC access to any additional information needed by COORDINATION WITH OTHER AGENCIES the FDIC for insurance purposes. Recent events have Another key part of our supervisory strategy has been certainly highlighted the importance of interagency to coordinate closely and share information with coordination and sharing of information. While we other regulators and authorities involved with institu- do not necessarily view the legislation as essential— tions we supervise. As we take on our responsibilities because it mandates cooperation and coordination as umbrella supervisor of financial holding compa- that should already be taking place—we see no harm nies, our efforts at coordination and information shar- in formalizing those processes. ing will only increase. With regard to enhancing cooperation, I would As the federal supervisor for state-chartered banks note that we not only collaborate with the FDIC that are members of the Federal Reserve System, we on problem institutions but also assist its efforts to work closely with state banking authorities. As the understand risks to the insurance fund more broadly. supervisor for bank holding companies, we coordi- For example, the FDIC has asked to participate in nate supervision and share information with the examinations of a few state member banks that are Office of the Comptroller of the Currency, the FDIC, engaged in subprime lending or other specialized and the Office of Thrift Supervision when institutions activities, and we have welcomed its assistance in they supervise are within bank holding companies. In assessing the financial condition and risks of these addition, in supervising U.S. subsidiaries of foreign institutions. In addition, we are discussing with the banking organizations, we cooperate and share infor- FDIC whether it may benefit from participation in mation with foreign bank supervisors. examinations of larger state member banks because, With regard to failing and problem state member at present, institutions supervised by the FDIC tend banks, we coordinate closely with the FDIC early in to be smaller banking organizations. In working to the process, when material problems are first identi- expand cooperative efforts, of course, we must all be fied. In addition, we also work with the FDIC to mindful of the potential burden on banks and estabimprove the process of resolving insured depository lish arrangements that minimize unnecessary disinstitutions so as to minimize disruption to payments ruptions, especially where an organization is not system transactions. Clearly, as insurer, the FDIC has believed to pose significant risks. an important interest in understanding risk to the fund and working as a partner in developing resolution strategies that minimize costs to the insurance fund CONCLUSION and disruptions to the financial system. When the FDIC has requested to exercise its special examina- In closing, I would like to underscore that supervisors tion authority for state member banks, we have beneface a growing challenge of identifying weaknesses Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 269 in banking organizations in the midst of strong eco- those judgments over time, and we are working on nomic conditions that may mask embedded prob- strengthening the Federal Reserve's ability to attract, lems. I would be remiss if I did not note that when develop, and retain supervisors that can meet that the economy weakens—as it ultimately will—we can challenge and make those judgments. expect bank losses from both previous risk-taking In* going forward, the recent fraud-related bank and bad luck. We can also expect an increase in bank failures have caused us to challenge our assumptions failures. As Chairman Greenspan has said, the opti- regarding the reliability of some of the information mal failure rate is not zero, and when the macro- we have come to depend on during examinations. economy suffers, we will see an increase in failures. When cracks appear in the veneer of what otherwise Fraud and bad judgment will come to light that we seems to be a well-run operation, they will be met and our fellow supervisors missed. As noted earlier, with a greater dose of skepticism and a higher level only a very intrusive process would reduce further of testing and verification. We must, of course, be those kinds of failures. careful not to overreact and become any more aggres- Finding the right balance between analysis of an sive or intrusive than is required. The Federal institution's risk-management process and risk pro- Reserve recognizes that, as a bank supervisor, we are file and performing in-depth transaction testing of assuming an important public trust, and we will conits assets and systems is the art of the supervisory tinue to try to minimize excesses in the banking process that determines whether or not we are effec- system, reduce losses to the insurance fund, and tive supervisors. Training and experience improve maintain a stable and productive banking system. Statement by Alan Greenspan, Chairman, Board of enhance the process of wealth creation throughout Governors of the Federal Reserve System, before the our economy. Committee on Agriculture, Nutrition, and Forestry, In light of the importance of OTC derivatives, it is U.S. Senate, February 10, 2000 essential that we address the legal uncertainties created by the possibility that courts could construe I am pleased to be here today to underscore the OTC derivatives to be futures contracts subject to the importance of this committee's efforts to modernize CEA. The legal uncertainties create risks to counterthe Commodity Exchange Act (CEA) and to express parties in OTC contracts and, indeed, to our financial my support for the recommendations for amending system that simply are unacceptable. They have also the act that were contained in the report by the impeded initiatives to centralize the trading and clear- President's Working Group on Financial Markets ing of OTC contracts, developments that have the entitled Over-the-Counter Derivatives Markets and potential to increase efficiency and reduce risks in the Commodity Exchange Act. OTC transactions. As I shall discuss more fully later in my remarks, rapid changes in communications technology portend that time is running out for us to THE NEED FOR LEGISLATION modernize our regulation of financial markets before we lose them and the associated profits and employ- Over-the-counter (OTC) derivatives have come to ment opportunities to foreign jurisdictions that play an exceptionally important role in our financial impose no such impediments. system and in our economy. These instruments allow To be sure, the Congress and the Commodity users to unbundle risks and allocate them to the Futures Trading Commission (CFTC) have taken investors most willing and able to assume them. A steps to address these concerns about the CEA. The growing number of financial and nonfinancial institu- Futures Trading Practices Act of 1992 gave the CFTC tions have embraced derivatives as an integral part of authority to exempt OTC derivatives from most protheir risk-capital allocation and profit maximization. visions of the act. In early 1993 the CFTC used that In particular, the profitability of derivative products authority to create an exemption for OTC derivatives has been a major factor in the significant gain in the that reduced legal uncertainty for a wide range of finance industry's share of American corporate out- transactions and counterparties. Unfortunately, some put during the past decade—a reflection of their value subsequent actions by the commission called into to nonfinancial industry. Indeed, this value added question market participants' understanding of the from derivatives itself derives from their ability to terms of the 1993 exemption. Now, under the leader- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

270 Federal Reserve Bulletin • April 2000 ship of Chairman Rainer, the commission is consider- The rationale for this position is straightforward. ing reaffirming and expanding the terms of the 1993 OTC transactions in financial derivatives are not exemption. Nonetheless, even with such an important susceptible to—that is, easily influenced by— and constructive step by the commission, legislation manipulation. The vast majority of contracts are amending the CEA would remain critically impor- settled in cash, based on a rate or price determined in tant. The greatest legal uncertainty affecting existing a separate highly liquid market with a very large or OTC transactions is in the area of securities-based virtually unlimited deliverable supply. Furthermore, contracts, where the CFTC's exemptive authority is prices established in OTC transactions do not serve constrained. Furthermore, as events during the past a price-discovery function. Thus, even if the price of few years have clearly demonstrated, regulatory an OTC contract were somehow manipulated, the exemptions, unlike statutory exclusions, carry the adverse effects on the economy would be quite limrisk of amendment by future commissions. ited. With respect to fraud and other unfair practices, the professional counterparties that use OTC derivatives simply do not require the protections that CEA provides for retail investors. If professional counter- PRINCIPLES OF REGULATION parties are victimized, they can obtain redress under Imposing government regulation on a market can the laws applicable to contracts generally. impair its efficiency. Thus, when evaluating the need The working group also considered whether the for government regulation, one must clearly identify introduction of centralized mechanisms for the tradthe public policy objectives of the regulation. As the ing and settling of what heretofore have been purely working group's report discusses, the primary public bilaterally negotiated and settled transactions would policy purposes of the CEA are to deter market give rise to a need for additional regulation. In the manipulation and to protect investors against fraud case of electronic trading systems, the working group and other unfair practices. concluded that regulation under the CEA was unnec- We must, of course, assess whether government essary and that such systems should be excluded regulation is necessary to achieve those objectives. from the act, provided that the contracts are not based The regulatory framework of the CEA was designed on nonfinancial commodities with finite supplies for the trading of grain futures by the general public, and that the participants are limited to sophisticated including retail investors. Because quantities of grain counterparties trading solely for their own accounts. following a harvest are generally known and limited, Electronic trading of such contracts by such counterit is possible, at least in principle, to manipulate the parties, it was reasoned, would be no more suscepprice of grain by cornering a market. Furthermore, tible to problems of manipulation and fraud than grain futures prices are widely disseminated and purely bilateral transactions. It was suggested that widely used as the basis for pricing grain transactions some limited regulation of such systems might off the futures exchanges. The fact that grain futures become necessary in the future if such trading sysserve such a price-discovery function means that if tems came to serve a price-discovery function. But it attempts to corner a market result in price fluctua- was agreed that creation of a regulatory system for tions, the effects would be felt widely by producers such systems in anticipation of problems was inapand consumers of grain. propriate. As I have already noted, the vast majority of OTC derivatives simply are not susceptible to manipulation. Thus, even if those contracts come to play a role in price discovery, regulation of the trad- OTC DERIVATIVES ing mechanism might still be unnecessary. The President's working group has considered In the case of clearing systems for OTC derivawhether regulation of OTC derivatives is necessary tives, the working group concluded that government to achieve these public policy objectives of the CEA. oversight is appropriate. Clearing tends to concen- In the case of financial OTC derivatives transactions trate risks and responsibilities for risk management in between professional counterparties, the working a central party or clearinghouse. Consequently, the group has agreed that such regulation is unnecessary effectiveness of the clearinghouse's risk management and that such transactions should be excluded from is critical for the stability of the markets that it serves. coverage of the act. Importantly, the recommended Depending on the types of transactions cleared, such exclusion would extend to those securities-based oversight might appropriately be conducted by the derivatives that currently are subject to the greatest CFTC under the CEA. Alternatively, it might be legal risk from potential application of the CEA. conducted by the Securities and Exchange Commis- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 271 sion, the Federal Reserve, the Office of the Comptrol- if we fail to rationalize our regulation of centralized ler of the Currency, or a foreign financial regulator trading mechanisms for financial instruments, these that one of the U.S. regulators has determined satis- markets and the related profits and employment fies appropriate standards. Provided such government opportunities will be lost to foreign jurisdictions that oversight is in place, OTC transactions that would maintain the confidence of global investors without otherwise be excluded from the CEA should not fall imposing so many regulatory constraints. within the ambit of the act because they are cleared. My concerns on this score stem from the dramatic If market participants conclude that clearing would advances in information technology that we see all reduce counterparty risks in OTC transactions, con- around us. In markets with significant economies of cerns about legal risks associated with the potential scale and scope, like those for standardized financial application of the CEA should not stand in their way. instruments, there is a tendency toward consolidation or even natural monopoly. Throughout much of our history this tendency has been restrained by an inabil- TRADITIONAL EXCHANGES ity to communicate information sufficiently quickly, cheaply, and accurately. In recent years, however, this The working group's report does not make specific constraint is being essentially eliminated by advances recommendations about the regulation of traditional in telecommunications. We have not yet seen clear exchange-traded futures markets that use open out- evidence of a trend toward natural monopoly. But the cry trading or that allow trading by retail investors. diffusion of technology often traces an S-shaped Nevertheless, it calls for a review of the existing curve, first diffusing slowly but then rapidly picking regulatory structures, particularly those applicable to up speed. Once we reach the steep segment of that financial futures, to ensure that they are appropriate S-curve, it may be too late to rationalize our regulain light of the objectives of the act. Consistent with tory structure. the principles of regulation that I identified earlier, Already the largest futures exchange in the world the report notes that exchange-traded futures should is no longer in the American heartland; instead, it not be subject to regulations that are unnecessary to is now in the heart of Europe. To be sure, no U.S. achieve the CEA's objectives. The report also con- exchange has yet to lose a major contract to a foreign cludes that the current prohibition on single-stock competitor. But it would be a serious mistake for us futures can be repealed if issues about the integrity of to wait for such unmistakable evidence of a loss of the underlying securities market and regulatory arbi- international competitiveness before acting. As our trage are resolved. experience with the vast eurodollar markets demon- I want to underscore how important it is for us to strates, once markets with scale and scope economies address these issues promptly. I cannot claim to speak are lost, they are very difficult, if not impossible, to with certainty as to how our complex and rapidly recapture. moving markets will evolve. But I see a real risk that, Statement by Alan Greenspan, Chairman, Board of half of the year, is slowing appreciably. At the same Governors of the Federal Reserve System, before time, inflation has remained largely contained. An the Committee on Banking and Financial Services, increase in the overall rate of inflation in 1999 was U.S. House of Representatives, February 17, 2000 mainly a result of higher energy prices. Importantly, (Chairman Greenspan presented identical testimony unit labor costs actually declined in the second half before the Committee on Banking, Housing, and of the year. Indeed, still-preliminary data indicate Urban Affairs, U.S. Senate, February 23, 2000.) that total unit cost increases last year remained extraordinarily low, even as the business expansion I appreciate this opportunity to present the Federal approached a record nine years. Domestic operating Reserve's semiannual report on the economy and profit margins, after having sagged for eighteen monetary policy.1 months, apparently turned up again in the fourth There is little evidence that the American econ- quarter, and profit expectations for major corporaomy, which grew more than 4 percent in 1999 and tions for the first quarter have been undergoing surged forward at an even faster pace in the second upward revisions since the beginning of the year— scarcely an indication of imminent economic 1. See "Monetary Policy Report to the Congress," Federal Reserve weakness. Bulletin, vol. 85 (March 2000), pp. 161-87. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

272 Federal Reserve Bulletin • April 2000 THE ECONOMIC FORCES AT WORK as well as other supporting influences on the economy, appears to have been met in about equal mea- Underlying this performance, unprecedented in my sure from increased net imports and from goods and half-century of observing the American economy, is services produced by the net increase in newly hired a continuing acceleration in productivity. Nonfarm workers over and above the normal growth of the business output per workhour increased 314 percent work force, including a substantial net inflow of during the past year—likely more than 4 percent workers from abroad. when measured by nonfarm business income. Secu- But these safety valves that have been supplying rity analysts' projections of long-term earnings, an goods and services to meet the recent increments to indicator of expectations of company productivity, purchasing power largely generated by capital gains continued to be revised upward in January, extending cannot be expected to absorb an excess of demand a string of upward revisions that began in early 1995. over supply indefinitely. First, growing net imports One result of this remarkable economic performance and a widening current account deficit require everhas been a pronounced increase in living standards larger portfolio and direct foreign investments in the for the majority of Americans. Another has been a United States, an outcome that cannot continue withlabor market that has provided job opportunities for out limit. large numbers of people previously struggling to get Imbalances in the labor markets perhaps may have on the first rung of a ladder leading to training, skills, even more serious implications for inflation presand permanent employment. sures. While the pool of officially unemployed and Yet those profoundly beneficial forces driving the those otherwise willing to work may continue to American economy to competitive excellence are shrink, as it has persistently over the past seven years, also engendering a set of imbalances that, unless there is an effective limit to new hiring, unless immicontained, threaten our continuing prosperity. Accel- gration is uncapped. At some point in the continuous erating productivity entails a matching acceleration reduction in the number of available workers willing in the potential output of goods and services and a to take jobs, short of the repeal of the law of supply corresponding rise in real incomes available to pur- and demand, wage increases must rise above even chase the new output. The problem is that the pickup impressive gains in productivity. This would intenin productivity tends to create even greater increases sify inflationary pressures or squeeze profit margins, in aggregate demand than in potential aggregate sup- with either outcome capable of bringing our growing ply. This occurs principally because a rise in struc- prosperity to an end. tural productivity growth has its counterpart in higher As would be expected, imbalances between expectations for long-term corporate earnings. This, demand and potential supply in markets for goods in turn, not only spurs business investment but also and services are being mirrored in the financial increases stock prices and the market value of assets markets by an excess in the demand for funds. As held by households, creating additional purchasing a consequence, market interest rates are already power for which no additional goods or services have moving in the direction of containing the excess of yet been produced. demand in financial markets and therefore in product Historical evidence suggests that perhaps three markets as well. For example, BBB corporate bond cents to four cents out of every additional dollar of rates adjusted for inflation expectations have risen stock market wealth eventually is reflected in more than 1 percentage point during the past two increased consumer purchases. The sharp rise in the years. However, to date, rising business earnings amount of consumer outlays relative to disposable expectations and declining compensation for risk incomes in recent years, and the corresponding fall have more than offset the effects of this increase, in the saving rate, has been consistent with this propelling equity prices and the wealth effect higher. so-called wealth effect on household purchases. Should this process continue, however, with the assis- Moreover, higher stock prices, by lowering the cost tance of a monetary policy vigilant against emerging of equity capital, have helped to support the boom in macroeconomic imbalances, real long-term rates will capital spending. at some point be high enough to finally balance Outlays prompted by capital gains in excess of demand with supply at the economy's potential in increases in income, as best we can judge, have both the financial and product markets. Other things added about 1 percentage point to annual growth of equal, this condition will involve equity discount gross domestic purchases, on average, over the past factors high enough to bring the rise in asset values five years. The additional growth in spending of into line with that of household incomes, thereby recent years that has accompanied these wealth gains, stemming the impetus to consumption relative to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 273 income that has come from rising wealth. This does phenomenal reshaping of our economic landscape. not necessarily imply a decline in asset values— It has, however, been instrumental, we trust, in although that, of course, can happen at any time for establishing a stable financial and economic environany number of reasons—but rather that these values ment with low inflation that is conducive to the will increase no faster than household incomes. investments that have exploited these innovative Because there are limits to the amount of goods technologies. and services that can be supplied from increasing net Federal budget policy has also played a pivotal imports and by drawing on a limited pool of persons role. The emergence of surpluses in the unified budwilling to work, it necessarily follows that consump- get and of the associated increase in government tion cannot keep rising faster than income. Moreover, saving over the past few years has been exceptionally outsized increases in wealth cannot persist indefi- important to the balance of the expansion because the nitely either. For so long as the levels of consumption surpluses have been absorbing a portion of the potenand investment are sensitive to asset values, equity tial excess of demand over sustainable supply associvalues increasing at a pace faster than income, other ated partly with the wealth effect. Moreover, because things equal, will induce a rise in overall demand in the surpluses are augmenting the pool of domestic excess of potential supply. But that situation cannot saving, they have held interest rates below the levels persist without limit because the supply safety valves that otherwise would have been needed to achieve are themselves limited. financial and economic balance during this period of With foreign economies strengthening and labor exceptional economic growth. They have, in effect, markets already tight, how the current wealth effect is helped to finance and sustain the productive private finally contained will determine whether the extraor- investment that has been key to capturing the benefits dinary expansion that it has helped foster can slow to of the newer technologies that, in turn, have boosted a sustainable pace, without destabilizing the economy the long-term growth potential of the U.S. economy. in the process. The recent good news on the budget suggests that our longer-run prospects for continuing this bene- TECHNOLOGICAL CHANGE CONTINUES APACE ficial process of recycling savings from the public to the private sectors have improved greatly in recent On a broader front, there are few signs to date of years. Nonetheless, budget outlays are expected to slowing in the pace of innovation and the spread of come under mounting pressure as the baby boom our newer technologies that, as I have indicated generation moves into retirement, a process that gets in previous testimonies, have been at the root of our under way a decade from now. Maintaining the surextraordinary productivity improvement. Indeed, pluses and using them to repay debt over coming some analysts conjecture that we still may be in the years will continue to be an important way the federal earlier stages of the rapid adoption of new technolo- government can encourage productivity-enhancing gies and not yet in sight of the stage when this wave investment and rising standards of living. Thus, we of innovation will crest. With so few examples in our cannot afford to be lulled into letting down our guard history, there is very little basis for determining the on budgetary matters, an issue to which I shall return particular stage of development through which we later in this testimony. are currently passing. Without doubt, the synergies of the microprocessor, laser, fiber-optic glass, and satellite technologies THE ECONOMIC OUTLOOK have brought quantum advances in information availability. These advances, in turn, have dramatically Although the outlook is clouded by a number of decreased business operational uncertainties and risk uncertainties, the central tendencies of the projections premiums and, thereby, have engendered major cost of the Board members and Reserve Bank presidents reductions and productivity advances. There seems imply continued good economic performance in the little question that further major advances lie ahead. United States. Most of them expect economic growth What is uncertain is the future pace of the application to slow somewhat this year, easing into the VA to of these innovations because it is this pace that gov- 33/ percent area. The unemployment rate would 4 erns the rate of change in productivity and economic remain in the neighborhood of 4 to AVA percent. The potential. rate of inflation for total personal consumption expen- Monetary policy, of course, did not produce the ditures is expected to be l3/4 to 2 percent, at or a bit intellectual insights behind the technological below the rate in 1999, which was elevated by rising advances that have been responsible for the recent energy prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

274 Federal Reserve Bulletin • April 2000 In preparing these forecasts, the Federal Open Mar- A central bank can best contribute to economic ket Committee (FOMC) members had to consider growth and rising standards of living by fostering a several of the crucial demand- and supply-side forces financial environment that promotes overall balance I referred to earlier. Continued favorable develop- in the economy and price stability. Maintaining an ments in labor productivity are anticipated both to environment of effective price stability is essential raise the economy's capacity to produce and, through because the experience in the United States and its supporting effects on real incomes and asset abroad has underscored that low and stable inflation values, to boost private domestic demand. When is a prerequisite for healthy, balanced, economic productivity-driven wealth increases were spurring expansion. Sustained expansion and price stability demand a few years ago, the effects on resource provide a backdrop against which workers and busiutilization and inflation pressures were offset, in part, nesses can respond to signals from the marketplace in by the effects of weakening foreign economies and ways that make most efficient use of the evolving a rising foreign exchange value of the dollar, which technologies. depressed exports and encouraged imports. Last year, with the welcome recovery of foreign economies and with the leveling-out of the dollar, these factors hold- FEDERAL BUDGET POLICY ISSUES ing down demand and prices in the United States started to unwind. Strong growth in foreign economic Before closing, I should like to revisit some issues of activity is expected to continue this year, and, other federal budget policy that I have addressed in previthings equal, the effect of the previous appreciation ous congressional testimony. Some modest erosion in of the dollar should wane, augmenting demand on fiscal discipline resulted last year through the use of U.S. resources and lessening one source of downward the "emergency" spending initiatives and some "crepressure on our prices. ative accounting." Although somewhat disappoint- As a consequence, the necessary alignment of ing, that erosion was small relative to the influence of the growth of aggregate demand with the growth the wise choice of the Administration and the Conof potential aggregate supply may well depend on gress to allow the bulk of the unified budget surpluses restraint on domestic demand, which continues to projected for the next several years to build and retire be buoyed by the lagged effects of increases in stock debt to the public. The idea that we should stop market valuations. Accordingly, the appreciable borrowing from the social security trust fund to increases in both nominal and real intermediate- and finance other outlays has gained surprising—and long-term interest rates over the past two years should welcome—traction, and it establishes, in effect, a act as a needed restraining influence in the period new budgetary framework that is centered on the ahead. However, to date, interest-sensitive spending on-budget surplus and how it should be used. has remained robust, and the FOMC will have to stay This new framework is useful because it offers a alert for signs that real interest rates have not yet clear objective that should strengthen budgetary disrisen enough to bring the growth of demand into line cipline. It moves the budget process closer to accrual with that of potential supply, even should the accel- accounting, the private-sector norm, and—I would eration of productivity continue. hope—the ultimate objective of federal budget Achieving that alignment seems more pressing accounting. today than it was earlier, before the effects of imbal- The new budget projections from the Congresances began to cumulate, lessening the depth of our sional Budget Office (CBO) and the Administration various buffers against inflationary pressures. Labor generally look reasonable. But, as many analysts markets, for example, have tightened in recent years have stressed, these estimates represent a midrange of as demand has persistently outstripped even acceler- possible outcomes for the economy and the budget, ating potential supply. As I have previously noted, we and actual budgetary results could deviate quite sigcannot be sure in an environment with so little histori- nificantly from current expectations. Some of the cal precedent what degree of labor market tautness uncertainty centers on the likelihood that the recent could begin to push unit costs and prices up more spectacular growth of labor productivity will persist rapidly. We know, however, that there is a limit, and over the years ahead. Like many private forecasters, we can be sure that the smaller the pool of people the CBO and the Office of Management and Budget without jobs willing to take jobs, the closer we are to assume that productivity growth will drop back somethat limit. As the FOMC indicated after its last meet- what from the recent stepped-up pace. But a distinct ing, the risks still seem to be weighted on the side of possibility, as I pointed out earlier, is that the develbuilding inflation pressures. opment and diffusion of new technologies in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 275 current wave of innovation may still be at a relatively that the on-budget surplus projections are less conjecearly stage and that the scope for further accelera- tural than they are, of necessity, today. tion of productivity is thus greater than is embodied Allowing surpluses to reduce the debt to the pubin these budget projections. If so, the outlook for lic, rather than for all practical purposes irrevocably budget surpluses would be even brighter than is now committing to their disposition in advance, can be anticipated. viewed as a holding action pending the clarification But there are significant downside risks to the of the true underlying budget outcomes of the next budget outlook as well. One is our limited knowledge few years. Debt repaid can very readily be reborof the forces driving the surge in tax revenues in rowed to fund delayed initiatives. recent years. Of course, a good part of that surge is More fundamentally, the growth potential of our due to the extraordinary rise in the market value of economy under current circumstances is best served, assets, which, as I noted earlier, cannot be sustained in my judgment, by allowing the unified budget surat the pace of recent years. But that is not the entire pluses presently in train to materialize and thereby story. These relationships are complex, and until we reduce Treasury debt held by the public. have detailed tabulations compiled from actual tax Yet I recognize that growing budget surpluses may returns, we shall not really know why individual tax be politically infeasible to defend. If this proves to be revenues, relative to income, have been even higher the case, as I have also testified previously, the likelithan would have been predicted from rising asset hood of maintaining a still satisfactory overall budget values and bracket creep. Thus, we cannot rule out position over the longer run is greater, I believe, if the possibility that this so-called tax surprise, which surpluses are used to lower tax rates rather than to has figured so prominently in the improved budget embark on new spending programs. History illuspicture of recent years, will dissipate or reverse. If trates the difficulties of keeping spending in check, this were to happen, the projected surpluses, even especially in programs that are open-ended commitwith current economic assumptions, would shrink ments, which too often have led to larger outlays than appreciably and perhaps disappear. Such an outcome initially envisioned. Decisions to reduce taxes, howwould be especially likely if adverse developments ever, are more likely to be contained by the need to occurred in other parts of the budget as well—for maintain an adequate revenue base to finance necesexample, if the recent slowdown in health-care sary government services. Moreover, especially if spending were to be followed by a sharper pickup designed to lower marginal rates, tax reductions can than is assumed in current budget projections. offer favorable incentives for economic performance. Another consideration that argues for letting the unified surpluses build is that the budget is still significantly short of balance when measured on an CONCLUSION accrual basis. If social security, for example, were measured on such a basis, counting benefits when As the U.S. economy enters a new century as well as they are earned by workers rather than when they are a new year, the time is opportune to reflect on the paid out, that program would have shown a substan- basic characteristics of our economic system that tial deficit last year. The deficit would have been have brought about our success in recent years. Comlarge enough to push the total federal budget into the petitive and open markets, the rule of law, fiscal red, and an accrual-based budget measure could con- discipline, and a culture of enterprise and entrepreceivably record noticeable deficits over the next few neurship should continue to undergird rapid innovayears, rather than the surpluses now indicated by the tion and enhanced productivity that in turn should official projections for either the total unified budget foster a sustained further rise in living standards. It or the on-budget accounts. Such accruals take account would be imprudent, however, to presume that the of still growing contingent liabilities that, under most business cycle has been purged from market econoreasonable sets of actuarial assumptions, currently mies so long as human expectations are subject to amount to many trillions of dollars for social security bouts of euphoria and disillusionment. We can only benefits alone. anticipate that we will readily take such diversions Even if accrual accounting is set aside, it might in stride and trust that beneficent fundamentals will still be prudent to eschew new longer-term, poten- provide the framework for continued economic tially irreversible commitments until we are assured progress well into the new millennium. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

276 Announcements MEETING OF THE CONSUMER capital requirements for certain obligations related to ADVISORY COUNCIL securitized transactions. The proposal by the Federal Reserve Board, Fed- The Federal Reserve Board announced on Febru- eral Deposit Insurance Corporation, Office of the ary 29, 2000, that the Consumer Advisory Council Comptroller of the Currency, and Office of Thrift would hold its next meeting on Thursday, March 30, Supervision is intended to produce more consistent 2000. The council's function is to advise the Board capital treatment for credit risks associated with on the exercise of the Board's responsibilities under exposures arising from securitization transactions. the Consumer Credit Protection Act and on other It would amend the risk-based capital requirements matters on which the Board seeks its advice. for asset-backed securities as well as recourse obligations and direct credit substitutes. Public comments are requested by May 26, 2000. PROPOSED ACTION The Federal Reserve Board on February 3, 2000, voted to request comment on a new regulation RELEASE OF JOINT TREASURY-FEDERAL implementing the privacy provisions of the Gramm- RESERVE REPORT ON COUNTERFEITING Leach-Bliley Act. Regulation P (Privacy of Consumer Financial Efforts to combat international counterfeiting of Information) would apply to institutions regulated U.S. currency are working, according to a Treasury by the Board, including bank holding companies, Department and Federal Reserve Board report financial holding companies, state-chartered banks released on Tuesday, February 29, 2000. that are members of the Federal Reserve System, and "Our efforts to make the U.S. currency as secure as uninsured state-chartered U.S. offices and branches of possible are working," said Treasury Secretary foreign banks. Comments are requested by March 31, Lawrence H. Summers. "By combating global coun- 2000. terfeiting we can ensure that our currency will remain The proposed rule is a result of an interagency a symbol of our strength and stability." effort by the Board, the Office of the Comptroller "The currency of the United States represents the of the Currency (OCC), the Federal Deposit Insur- strength and dependability of our economy and the ance Corporation (FDIC), the Office of Thrift Super- financial system that supports it. As such, its integvision (OTS), the National Credit Union Administra- rity must be carefully protected," said Edward W. tion, the Department of the Treasury, the Securities Kelley, Jr., member of the Board of Governors of the and Exchange Commission, and the Federal Trade Federal Reserve System. "This study indicates that Commission. The agencies also consulted with the the new-design notes have been quite successful in National Association of Insurance Commissioners. thwarting counterfeiters. The Federal Reserve Bank On February 22, 2000, the Board, the FDIC, the of New York has detected a considerably smaller OCC, and the OTS jointly published the proposed proportion of counterfeit notes among genuine newregulation in the Federal Register. The proposed rule design notes than among older-design notes." pertains to all institutions regulated by the four fed- The Use and Counterfeiting of United States Cureral agencies. rency Abroad, a study mandated by the Congress as part of the Anti-Terrorism and Effective Death Penalty Act of 1996 and conducted by the Treasury Department and the Federal Reserve, is a comprehen- JOINT PROPOSAL FOR REVISION OF sive review of the international use and counterfeit- THE RISK-BASED CAPITAL RULES ing of U.S. currency. The four federal banking agencies on February 17, The efforts to protect U.S. currency have been 2000, released proposed revisions to their risk-based effective. The incidence of counterfeiting is low both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

277 inside and outside the United States but slightly "The U.S. Mint and the Federal Reserve have higher outside the United States, with approximately developed this program to accelerate shipments of one note per 10,000 being counterfeit worldwide. Golden Dollars to small financial institutions," said The U.S. Secret Service is working closely with over- Philip N. Diehl, Director of the Mint. "We want to seas banks and law enforcement agencies to help get as many Golden Dollars to these institutions as suppress counterfeiting activities. quickly as possible. This program is designed to The report highlighted important steps the U.S. augment, not replace, the routine delivery of coins government is currently taking to combat global through the Federal Reserve System." counterfeiting: Depository institutions should continue to place regular orders for Golden Dollars with the Federal • A pilot Secret Service web site allows law en- Reserve Banks (FRBs). forcement agencies and currency handlers worldwide "We expect to produce at least 150 million Golden to report instances of counterfeiting. Dollars in March—about 100 million for distribu- • Through its extended custodial inventory pro- tion through the Federal Reserve System and up to gram, the Federal Reserve Bank of New York has 50 million for direct shipment to small financial established overseas cash depots at foreign banks. By institutions," Mr. Diehl said. "No FRB orders will be lowering transportation costs, these facilities allow reduced to supply Golden Dollars to financial instituoverseas dollar users to more efficiently obtain new tions that participate in the temporary direct-shipment U.S. currency and return worn and old-design U.S. program." currency. By the end of March, the Mint expects that it will • U.S. enforcement agencies are working with their have placed 350 million Golden Dollars into circulaoverseas counterparts to target cities and countries tion—about 200 million through the Federal Reserve that first receive counterfeit notes in the wholesale System and the rest through direct shipment to retaildistribution chain. ers and small financial institutions. It recently doubled Golden Dollar production to five million a The study concluded that between $250 billion and day. $350 billion of the $500 billion of U.S. currency in The new program provides for direct shipment circulation was held overseas at the end of 1998. from the Mint of 1,000 or 2,000 Golden Dollars to According to the report, technology will continue community banks, credit unions, and savings and to require new and innovative responses to maintain loans. The American Bankers Association, Amerithe security of U.S. currency. These efforts will ca's Community Bankers, Credit Union National include further security enhancements to our cur- Association, Independent Community Bankers of rency design, improved cooperation with interna- America, and the National Federation of Federal tional law enforcement agencies, and additional train- Credit Unions are also participating by assisting the ing of foreign law enforcement and financial officials Mint in informing the industry of the program. Orders in counterfeit detection. will be accepted through the Mint's secure web site The report is available through the Treasury Office from March 1 through March 31. Only financial instiof Public Affairs at 202-622-2960 or the Federal tutions may participate in this program, and the U.S. Reserve Office of Public Affairs at 202-452-2955 or Mint will validate orders. Delivery is expected to via the Internet at www.treas.gov/press. require five to ten business days, and orders will be shipped on a first-come-first-served basis. Coins will be shipped in rolls of twenty-five. PROGRAM FOR DIRECT SHIPMENT OF GOLDEN DOLLARS TO SMALL FINANCIAL INSTITUTIONS ENFORCEMENT ACTIONS The U.S. Mint and the Federal Reserve on February 24, 2000, announced a program to provide direct The Federal Reserve Board on February 8, 2000, shipments of Golden Dollars to community banks, announced the execution of a written agreement by credit unions, and savings and loans across the coun- and among the Bank of New York, New York, New try. Strong public demand for the new dollar coin has York, the Federal Reserve Bank of New York, and generated thousands of orders from banks and retail- the New York State Banking Department. ers and has led some banks to create Golden Dollar The Federal Reserve Board on February 25, 2000, waiting lists for their individual and commercial announced the execution of a written agreement by customers. and among United Bancshares, Inc., Philadelphia, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

278 Federal Reserve Bulletin • April 2000 Pennsylvania; the United Bank of Philadelphia, Phila- Ms. Mowry joined the Board's staff in 1987. She delphia, Pennsylvania, and the Federal Reserve Bank holds a B.S. from the University of Pittsburgh and is of Philadelphia. currently attending the Stonier Graduate School of Banking. CHANGES IN BOARD STAFF REVISIONS TO THE MONEY STOCK DATA The Board of Governors announced that Edward T. Mulrenin, Assistant Director, Division of Information Measures of the money stock were revised in Feb- Technology, retired at the end of March after twenty- ruary of this year to incorporate the results of the six years at the Board. annual benchmark and seasonal factor review. Data in tables 1.10 and 1.21 in the statistical appendix to The Board of Governors announced on March 7, the Federal Reserve Bulletin reflect these changes 2000, the approval of the appointment of Rosanna beginning with this issue. Pianalto-Cameron as Special Assistant to the Board For 1999, the revisions had no effect on the annual for Public Information. growth rate of M2 and M3, but they lowered the Ms. Pianalto-Cameron joined the Board's staff in annual growth rate of Ml by 0.3 percentage point. 1980 and transferred to the Public Affairs office in The benchmark incorporates minor revisions to 1998. She earned a B.A. from the University of data reported on the weekly and quarterly deposit Akron. reports, and it takes account of deposit data from call reports for banks and thrift institutions that are not On March 7, 2000, the Board of Governors weekly or quarterly deposit reporters. These revisions announced approval of the appointments of to deposit data start in 1997. The benchmark also Stephen L. Siciliano, Ann E. Misback, and Sandra L. incorporates historical data for a number of money Richardson as Assistant General Counsels in the market mutual funds that began reporting for the first Legal Division. time during 1999 and revisions to data for the money Mr. Sicilano joined the Legal Division in 1973 as a funds; these revisions changed the level of M2 by a staff attorney and was promoted to Special Assistant maximum absolute value of about $3 billion and to the General Counsel for Administrative Law in raised the level of M3 over the years by a maximum 1985. He received his J.D. from Northwestern Uni- of about $7 billion. Historical revisions have also versity Law School. raised the repurchase agreement component by a Ms. Misback joined the Legal Division as a Senior maximum of about $7 billion. Attorney in 1992. She received her J.D. from George- Seasonal factors for the monetary aggregates have town University Law Center. been revised, using the benchmarked data primarily Ms. Richardson joined the Legal Division as a through November 1999. The X-12-ARIMA proce- Senior Attorney in 1992. She received her J.D. from dure was used to derive monthly seasonal factors. As George Washington University Law Center. usual, the revisions due to seasonal factors slightly changed the pattern of quarterly growth rates of M2 The Board also announced on March 7, 2000, the and M3 in 1999, but they had little effect on the approval of a restructuring of the Division of Infor- annual growth rates of M2 and M3 over 1999. mation Technology. As part of the reorganization, the Complete historical data are available in printed Board announced approval of the following official form from the Money and Reserve Analysis Section, staff actions: the promotion of Maureen T. Hannan to Mail Stop 72, Board of Governors of the Federal Associate Director and the appointments of Geary L. Reserve System, Washington, DC 20551, or at 202- Cunningham and Sharon L. Mowry as Assistant 452-3062. Current and historical data for the mone- Directors. tary aggregates and their components are available Ms. Hannan recently began a six-month develop- each week in statistical release H.6 on the Board's mental assignment as Visiting Assistant Secretary in web site (http://www.federalreserve.gov/) under the Office of the Secretary and will assume her new Research and Data, Statistics: Releases and Historresponsibilities when she returns to the division. ical Data. Current and historical data are also on the Economic Bulletin Board of the U.S. Department of Mr. Cunningham joined the Board's staff in 1978. Commerce. For paid electronic access to the Eco- He holds a B.A. from the University of Maryland and nomic Bulletin Board, call STAT-USA at 1-800-782is currently attending the Stonier Graduate School of 8872 or 202-482-1986. • Banking. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 279 1. Monthly seasonal factors used to construct Ml, January 1999-March 2001 Other checkable deposits1 NNoonnbbaannkk ttrraavveelleerrss YYeeaarr aanndd mmoonntthh CCuurrrreennccyy DDeemmaanndd ddeeppoossiittss cchheecckkss Total At banks 1999—January .9987 1.0224 1.0139 1.0128 1.0160 February .9980 1.0225 .9811 .9946 .9990 March .9994 1.0161 .9872 1.0037 1.0039 April 1.0002 1.0176 1.0013 1.0220 1.0198 May .9995 1.0105 .9877 .9972 .9975 June .9991 .9794 .9962 1.0006 1.0003 July 1.0008 .9570 .9996 .9928 .9905 August .9979 .9657 .9962 .9896 .9899 September .9959 .9816 .9884 .9892 .9907 October .9982 .9972 .9926 .9897 .9897 November 1.0017 1.0155 1.0093 .9964 .9952 December 1.0110 1.0184 1.0450 1.0110 1.0075 2000—January .9977 1.0207 1.0136 1.0126 1.0154 February .9982 1.0218 .9811 .9945 .9985 March 1.0002 1.0160 .9870 1.0039 1.0039 April 1.0007 1.0188 1.0074 1.0229 1.0200 May .9992 1.0122 .9845 .9973 .9983 June .9990 .9823 .9942 1.0009 1.0011 July 1.0002 .9579 1.0023 .9930 .9906 August .9974 .9684 .9939 .9892 .9899 September .9970 .9824 .9903 .9893 .9901 October .9967 .9959 .9891 .9886 .9894 November 1.0019 1.0141 1.0095 .9963 .9952 December 1.0120 1.0164 1.0507 1.0119 1.0073 2001—January .9973 1.0192 1.0094 1.0121 1.0153 February .9984 1.0223 .9818. .9944 .9984 March 1.0004 1.0157 .9892 1.0043 1.0039 1. Seasonally adjusted other checkable deposits at thrifts are derived as the difference between total other checkable deposits, seasonally adjusted, and seasonally adjusted other checkable deposits at commercial banks. 2. Monthly seasonal factors used to construct M2 and M3, January 1999-March 2001 SSaavviinnggss aanndd SSmmaallll-- LLaarrggee-- Money market mutual funds YYeeaarr aanndd mmoonntthh MMMMDDAA ddeennoommiinnaattiioonn ddeennoommiinnaattiioonn RRPPss EEuurrooddoollllaarrss ddeeppoossiittss'' ttiimmee ddeeppoossiittss11 ttiimmee ddeeppoossiittss11 In M2 In M3 only 1999—January .9985 1.0023 .9849 1.0038 1.0220 1.0007 1.0108 February .9944 1.0036 .9928 1.0132 1.0361 1.0048 1.0111 March 1.0025 1.0026 1.0002 1.0196 1.0154 1.0064 .9983 April 1.0113 1.0008 .9993 1.0154 .9997 .9974 .9982 May .9971 .9970 1.0070 .9860 .9913 1.0131 1.0096 June 1.0010 .9949 1.0022 .9866 .9887 1.0034 .9994 July 1.0011 .9970 1.0011 .9859 .9720 .9937 .9870 August .9988 .9974 .9975 .9998 .9843 .9985 .9931 September .9971 .9990 1.0042 .9982 .9758 .9972 .9909 October .9964 1.0017 1.0077 .9951 .9883 .9915 .9909 November .9997 1.0025 1.0051 .9964 1.0051 1.0081 1.0012 December 1.0022 1.0013 .9970 .9984 1.0190 .9860 1.0121 2000—January .9986 1.0025 .9856 1.0044 1.0235 1.0007 1.0068 February .9943 1.0040 .9929 1.0148 1.0373 1.0056 1.0084 March 1.0021 1.0031 1.0003 1.0199 1.0152 1.0078 .9994 April 1.0123 1.0010 .9996 1.0157 1.0002 .9959 .9995 May .9964 .9965 1.0072 .9865 .9927 1.0120 1.0083 June 1.0007 .9939 1.0024 .9865 .9889 1.0032 1.0016 July 1.0014 .9966 1.0010 .9846 .9707 .9925 .9882 August .9983 .9971 .9973 .9990 .9840 .9992 .9945 September .9978 .9991 1.0045 .9981 .9745 .9970 .9914 October .9958 1.0019 1.0070 .9952 .9868 .9897 .9896 November .9997 1.0029 1.0050 .9964 1.0060 1.0088 1.0028 December 1.0033 1.0016 .9969 .9983 1.0190 .9883 1.0109 2001—January .9981 1.0026 .9861 1.0047 1.0237 1.0006 1.0042 February .9943 1.0041 .9931 1.0156 1.0380 1.0059 1.0072 March 1.0021 1.0033 1.0002 1.0201 1.0161 1.0086 1.0005 1. Seasonal factors are applied to deposits data at both commercial banks and thrift institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

280 Federal Reserve Bulletin • April 2000 3. Weekly seasonal factors used to construct Ml, December 6, 1999-April 2, 2001 Other checkable deposits1 NNoonnbbaannkk ttrraavveelleerrss WWeeeekk eennddiinngg CCuurrrreennccyy DDeemmaanndd ddeeppoossiittss cchheecckkss Total At banks 1999—December 6 1.0061 1.0221 1.0114 1.0056 .9957 13 1.0080 1.0201 1.0243 .9961 .9910 20 1.0118 1.0182 1.0497 1.0065 1.0050 27 1.0182 1.0162 1.0626 1.0166 1.0184 2000—January 3 1.0090 1.0142 1.0974 1.0435 1.0375 10 1.0015 1.0171 1.0367 1.0213 1.0194 17 .9978 1.0199 1.0090 1.0089 1.0110 24 .9936 1.0228 .9829 1.0042 1.0122 31 .9922 1.0257 .9924 1.0044 1.0126 February 7 .9980 1.0242 .9771 1.0000 .9998 14 1.0004 1.0227 .9759 .9863 .9898 21 .9988 1.0212 .9776 .9885 .9962 28 .9961 1.0197 .9887 .9989 1.0042 March 6 1.0018 1.0183 .9863 1.0040 1.0010 13 1.0017 1.0170 .9860 .9976 .9956 20 1.0005 1.0158 .9834 .9994 1.0003 27 .9985 1.0146 .9870 1.0064 1.0116 April 3 .9995 1.0134 1.0151 1.0240 1.0196 10 1.0040 1.0158 1.0140 1.0207 1.0158 17 1.0009 1.0183 1.0178 1.0317 1.0257 24 .9986 1.0208 .9921 1.0222 1.0243 May 1 .9979 1.0234 .9973 1.0148 1.0137 8 1.0029 1.0190 .9853 1.0026 .9984 15 .9997 1.0147 .9829 .9917 .9923 22 .9980 1.0104 .9717 .9884 .9942 29 .9982 1.0061 .9844 .9970 1.0001 June 5 1.0014 1.0019 .9987 1.0064 1.0014 12 1.0017 .9917 .9978 .9983 .9985 19 .9980 .9817 .9928 .9997 1.0015 26 .9948 .9718 .9893 1.0001 1.0059 July 3 .9991 .9622 1.0140 1.0104 1.0051 10 1.0049 .9603 1.0116 1.0009 .9945 17 1.0003 .9584 .9949 .9856 .9856 24 .9974 .9565 .9852 .9833 .9863 31 .9967 .9545 1.0061 .9943 .9912 August 7 1.0032 .9595 .9968 .9965 .9910 14 .9992 .9646 .9949 .9847 .9834 21 .9958 .9697 .9926 .9830 .9851 28 .9930 .9749 .9914 .9875 .9935 September 4 1.0023 .9801 .9947 .9951 .9930 11 .9983 .9812 .9945 .9917 .9886 18 .9961 .9823 .9936 .9883 .9899 25 .9934 .9834 .9795 .9831 .9914 October 2 .9936 .9845 .9952 .9946 .9939 9 1.0010 .9892 .9863 .9896 .9865 16 .9978 .9939 .9862 .9839 .9835 23 .9946 .9987 .9795 .9842 .9874 30 .9941 1.0035 .9935 .9903 .9960 November 6 1.0016 1.0084 1.0020 1.0009 .9945 13 1.0023 1.0116 .9996 .9900 .9882 20 1.0001 1.0147 1.0080 .9919 .9927 27 1.0044 1.0179 1.0216 .9977 1.0018 December 4 1.0063 1.0211 1.0342 1.0095 .9999 11 1.0080 1.0189 1.0290 .9999 .9937 18 1.0112 1.0167 1.0484 1.0053 1.0015 25 1.0179 1.0145 1.0572 1.0136 1.0156 2001—January 1 1.0105 1.0124 1.0847 1.0363 1.0299 8 1.0034 1.0150 1.0488 1.0298 1.0257 15 .9986 1.0177 1.0140 1.0098 1.0132 22 .9949 1.0203 .9844 1.0027 1.0094 29 .9927 1.0230 .9804 1.0012 1.0092 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 281 3. Weekly seasonal factors used to construct Ml, December 6, 1999-April 2, 2001—continued Other checkable deposits1 NNoonnbbaannkk ttrraavveelleerrss WWeeeekk eennddiinngg CCuurrrreennccyy DDeemmaanndd ddeeppoossiittss cchheecckkss Total At banks 2001—February 5 .9972 1.0257 .9794 1.0027 1.0027 12 1.0000 1.0238 .9754 .9893 .9933 19 .9992 1.0219 .9805 .9901 .9948 26 .9961 1.0200 .9864 .9954 1.0029 March 5 1.0007 1.0182 .9975 1.0033 1.0018 12 1.0020 1.0170 .9886 .9972 .9974 19 1.0002 1.0157 .9893 1.0000 1.0010 26 .9978 1.0145 .9801 1.0068 1.0105 April 2 .9995 1.0133 1.0065 1.0235 1.0169 1. Seasonally adjusted other checkable deposits at thrifts are derived as the difference between total other checkable deposits, seasonally adjusted, and seasonally adjusted other checkable deposits at commercial banks. 4. Weekly seasonal factors used to construct M2 and M3, December 6, 1999-April 2, 2001 SSaavviinnggss aanndd SSmmaallll-- LLaarrggee-- Money market mutual funds WWeeeekk eennddiinngg MMMMDDAA ddeennoommiinnaattiioonn ddeennoommiinnaattiioonn RRPPss EEuurrooddoollllaarrss ddeeppoossiittss11 ttiimmee ddeeppoossiittss11 ttiimmee ddeeppoossiittss11 In M2 In M3 only 1999—December 6 1.0110 1.0029 1.0033 1.0023 1.0197 1.0010 1.0224 13 1.0074 1.0018 1.0024 1.0009 1.0333 .9956 1.0139 20 1.0003 1.0008 .9984 1.0007 1.0204 .9831 1.0025 27 .9935 .9999 .9927 .9964 1.0173 .9724 1.0094 22000000——JJaannuuaarryy 3 1.0015 1.0012 .9831 .9881 .9932 .9760 1.0152 10 1.0128 1.0024 .9860 .9977 1.0195 .9986 1.0070 17 1.0068 1.0026 .9879 1.0110 1.0274 1.0036 1.0024 24 .9877 1.0026 .9830 1.0094 1.0330 1.0026 1.0047 31 .9807 1.0031 .9864 1.0065 1.0270 1.0087 1.0094 FFeebbrruuaarryy 7 1.0003 1.0038 .9908 1.0122 1.0329 1.0095 .9987 14 .9997 1.0041 .9950 1.0143 1.0375 1.0127 1.0097 21 .9918 1.0040 .9908 1.0163 1.0398 1.0011 1.0094 28 .9877 1.0039 .9936 1.0158 1.0409 .9997 1.0189 March 6 1.0069 1.0039 1.0011 1.0197 1.0238 1.0031 .9871 13 1.0071 1.0035 1.0014 1.0203 1.0219 1.0129 .9971 20 1.0016 1.0029 1.0013 1.0195 1.0147 1.0138 .9992 27 .9913 1.0023 1.0005 1.0203 1.0138 1.0065 1.0115 AApprriill 3 1.0097 1.0029 .9950 1.0196 .9945 .9982 1.0011 10 1.0250 1.0026 .9982 1.0267 1.0096 .9972 .9978 17 1.0235 1.0013 .9986 1.0245 1.0057 .9931 .9881 24 1.0052 1.0000 .9999 1.0138 .9968 .9917 1.0027 MMaayy 1 .9901 .9989 1.0046 .9928 .9899 1.0014 1.0103 8 1.0051 .9982 1.0077 .9885 .9894 1.0082 .9955 15 1.0028 .9971 1.0058 .9844 .9893 1.0104 1.0019 22 .9910 .9960 1.0066 .9855 .9945 1.0118 1.0161 29 .9906 .9951 1.0086 .9864 .9956 1.0186 1.0216 June 5 1.0114 .9943 1.0084 .9870 1.0014 1.0143 1.0009 12 1.0094 .9937 1.0041 .9913 1.0036 1.0114 1.0036 19 1.0003 .9932 1.0027 .9875 .9868 1.0017 .9962 26 .9832 .9935 1.0003 .9844 .9823 .9945 1.0044 JJuullyy 3 .9962 .9953 .9952 .9791 .9632 .9927 1.0037 10 1.0119 .9962 .9970 .9854 .9787 .9905 .9868 17 1.0052 .9963 1.0039 .9843 .9689 .9889 .9812 24 .9935 .9973 1.0044 .9852 .9717 .9943 .9870 31 .9909 .9972 1.0013 .9859 .9668 .9961 .9914 AAuugguusstt 7 1.0092 .9971 1.0014 .9940 .9773 .9980 .9875 14 1.0075 .9969 .9968 .9986 .9857 1.0026 .9840 21 .9976 .9969 .9924 1.0016 .9856 .9930 .9917 28 .9863 .9970 .9967 1.0015 .9892 1.0021 1.0143 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

282 Federal Reserve Bulletin • April 2000 4. Weekly seasonal factors used to construct M2 and M3, December 6, 1999-April 2, 2001—continued SSaavviinnggss aanndd SSmmaallll-- LLaarrggee-- Money market mutual funds WWeeeekk eennddiinngg MMMMDDAA ddeennoommiinnaattiioonn ddeennoommiinnaattiioonn RRPPss EEuurrooddoollllaarrss ddeeppoossiittss'' ttiimmee ddeeppoossiittss11 ttiimmee ddeeppoossiittss11 In M2 In M3 only 2000—September 4 1.0043 .9979 1.0014 .9991 .9795 1.0012 .9949 11 1.0137 .9985 1.0022 1.0020 .9818 1.0017 .9931 18 .9997 .9991 1.0033 1.0011 .9766 1.0012 .9871 25 .9791 .9992 1.0074 .9959 .9687 .9941 .9928 October 2 .9865 1.0004 1.0078 .9906 .9653 .9853 .9903 9 1.0046 1.0021 1.0130 .9949 .9803 .9850 .9856 16 1.0034 1.0020 1.0081 .9975 .9847 .9885 .9874 23 .9905 1.0019 1.0053 .9961 .9940 .9895 .9858 30 .9859 1.0018 1.0015 .9938 .9931 .9955 .9996 November 6 1.0037 1.0024 1.0054 .9926 .9941 1.0002 .9887 13 1.0073 1.0028 1.0063 .9949 1.0015 1.0092 .9955 20 1.0016 1.0030 1.0044 .9967 1.0069 1.0145 1.0035 27 .9912 1.0031 1.0050 .9994 1.0143 1.0118 1.0175 December 4 1.0035 1.0030 1.0022 .9991 1.0184 1.0047 1.0122 11 1.0079 1.0024 1.0028 1.0027 1.0314 .9998 1.0117 18 1.0021 1.0015 .9992 1.0023 1.0218 .9887 1.0035 25 .9955 1.0007 .9943 .9976 1.0161 .9777 1.0074 2001—January 1 .9998 1.0010 .9868 .9889 1.0050 .9759 1.0217 8 1.0135 1.0025 .9845 .9953 .9998 .9947 1.0110 15 1.0101 1.0025 .9898 1.0080 1.0263 1.0025 1.0009 22 .9942 1.0026 .9862 1.0085 1.0323 1.0002 .9993 29 .9820 1.0027 .9833 1.0078 1.0371 1.0064 1.0053 February 5 .9978 1.0036 .9877 1.0098 1.0301 1.0079 .9966 12 .9986 1.0041 .9927 1.0147 1.0437 1.0110 1.0067 19 .9938 1.0042 .9924 1.0159 1.0381 1.0046 1.0089 26 .9861 1.0043 .9954 1.0194 1.0413 1.0015 1.0181 March 5 1.0014 1.0042 1.0019 1.0190 1.0265 1.0030 .9919 12 1.0038 1.0038 1.0023 1.0206 1.0265 1.0115 .9976 19 1.0007 1.0032 1.0012 1.0194 1.0163 1.0150 .9987 26 .9934 1.0027 .9997 1.0207 1.0128 1.0092 1.0090 April 2 1.0069 1.0028 .9950 1.0207 .9956 1.0005 1.0035 1. Seasonal factors are applied to deposits data at both commercial banks and thrift institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

283 Minutes of the Meeting of the Federal Open Market Committee Held on December 21, 1999 A meeting of the Federal Open Market Committee Messrs. Madigan and Simpson, Associate Directors, was held in the offices of the Board of Governors of Divisions of Monetary Affairs and Research and Statistics respectively, Board of Governors the Federal Reserve System in Washington, D.C., on Tuesday, December 21, 1999, at 9:00 a.m. Ms. Roseman,1 Director, Division of Reserve Bank Operations and Payment Systems, Board of Present: Governors Mr. Greenspan, Chairman Mr. McDonough, Vice Chairman Messrs. Dennis1 and Whitesell, Assistant Directors, Mr. Boehne Divisions of Reserve Bank Operations and Mr. Ferguson Payment Systems and Monetary Affairs Mr. Gramlich respectively, Board of Governors Mr. Kelley Mr. McTeer Ms. Low, Open Market Secretariat Assistant, Mr. Meyer Division of Monetary Affairs, Board Mr. Moskow of Governors Mr. Stern Mr. Moore, First Vice President, Federal Reserve Bank of San Francisco Messrs. Broaddus, Guynn, Jordan, and Parry, Alternate Members of the Federal Open Messrs. Beebe, Eisenbeis, Goodfriend, Hakkio, Market Committee Rasche, and Sniderman, Senior Vice Presidents, Federal Reserve Banks of San Francisco, Mr. Hoenig, Ms. Minehan, and Mr. Poole, Atlanta, Richmond, Kansas City, St. Louis, Presidents of the Federal Reserve Banks and Cleveland respectively of Kansas City, Boston, and St. Louis respectively Ms. Perelmuter, Messrs. Rosengren and Weber, Vice Presidents, Federal Reserve Banks Mr. Kohn, Secretary and Economist of New York, Boston, and Minneapolis Mr. Bernard, Deputy Secretary respectively Ms. Fox, Assistant Secretary Mr. Gillum, Assistant Secretary By unanimous vote, the minutes of the meeting of Mr. Mattingly, General Counsel the Federal Open Market Committee held on Novem- Mr. Baxter, Deputy General Counsel ber 16, 1999, were approved. Ms. Johnson, Economist The Report of Examination of the System Open Mr. Prell, Economist Market Account, conducted by the Board's Division Ms. Cumming, Messrs. Howard, Hunter, Lang, of Reserve Bank Operations and Payment Systems as Rosenblum, Slifman, and Stockton, of the close of business on September 10, 1999, was Associate Economists accepted. The Manager of the System Open Market Account Mr. Fisher, Manager, System Open Market Account reported on recent developments in foreign exchange markets. There were no open market operations in Mr. Winn, Assistant to the Board, Office of Board foreign currencies for the System's account in the Members, Board of Governors period since the previous meeting, and thus no vote was required of the Committee. Messrs. Ettin and Reinhart, Deputy Directors, Divisions of Research and Statistics and 1. Attended portion of meeting relating to the Committee's consid- International Finance respectively, eration of the Report of Examination of the System Open Market Board of Governors Account. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

284 Federal Reserve Bulletin • April 2000 The Manager also reported on developments in summer months, and existing home sales registered a domestic financial markets and on System open mar- fourth consecutive decline in October. ket transactions in government securities and federal The available information on orders and shipments agency obligations during the period November 16, suggested some slowing in the very rapid growth of 1999, through December 20, 1999. By unanimous business spending for capital equipment. Shipments vote, the Committee ratified these transactions. of nondefense capital equipment recovered only par- The Committee then turned to a discussion of tially in October from a large September decline. recent and prospective economic and financial devel- Much of the pickup reflected a surge in shipments of opments, and the implementation of monetary policy computers and related equipment in October after a over the intermeeting period ahead. plunge in the preceding two months. Trends in orders The information reviewed at this meeting sug- suggested that business spending on capital equipgested continued strong expansion of economic ment, notably for high-tech and transportation equipactivity. Consumer demand was particularly robust, ment, probably had increased further over the balance and business fixed investment remained on a strong of the fourth quarter. Outlays and contracts for nonupward trend. Housing activity was still at an ele- residential construction slowed further in October. vated level despite some recent slippage. As a con- The pace of office construction was close to its thirdsequence, manufacturing production had increased quarter average; spending for industrial buildings briskly in recent months, and nonfarm payrolls con- continued to drop, and outlays for commercial structinued to rise rapidly. Despite very tight labor mar- tures were unchanged from their low September kets, labor compensation had been climbing more level. slowly than last year. Aggregate price increases had Business inventory investment slowed in October been smaller in recent months, reflecting a flattening from the third-quarter pace, primarily reflecting a in energy prices after a rapid run-up. sizable liquidation of stocks at automotive dealer- Nonfarm payroll employment rose substantially ships. Stockbuilding among manufacturers stepped further in October and November. Job growth in the up slightly in October, but the stock-sales ratio for services industry remained rapid in the two months, the sector was near the bottom of its range for the construction hiring continued buoyant against a back- last twelve months. At the wholesale level, inventory drop of project backlogs and unseasonably warm accumulation slowed noticeably and the inventoryweather, and the pace of job losses in manufacturing sales ratio for this sector also was near the bottom of slowed further. The civilian unemployment rate fell its range for the last twelve months. Total retail to 4.1 percent in October, its low for the year, and stocks changed little on balance in October because remained at that level in November. of the sharp runoff at automotive dealerships. The Industrial production continued to advance briskly inventory-sales ratio for the retail sector as a whole in the October-November period, reflecting sizable was at the bottom of its range for the last year. gains in manufacturing and mining output. Within The U.S. deficit on trade in goods and services manufacturing, the production of consumer goods, widened somewhat in October from its average for construction supplies, and materials was up substan- the third quarter. The value of exports edged up in tially. The further advance in manufacturing produc- October from its third-quarter level but the value of tion in the two months boosted the factory operating imports rose appreciably more, with much of the rate, but capacity utilization in manufacturing in increase reflecting greater imports of consumer goods November was still a little below its long-term and machinery. The available information suggested average. that economic expansion in the euro area, the United Total nominal retail sales rose appreciably in the Kingdom, and Canada picked up sharply in the third first two months of the fourth quarter. Sales gains quarter. In contrast, economic activity declined in were widespread, but purchases of durable goods, Japan during the third quarter after a surge in the first especially light vehicles, were particularly strong. half of the year. Among the developing countries, Anecdotal reports suggested that growth in consumer economic activity continued to expand in emerging outlays was remaining brisk in December. Asia and parts of Latin America. Housing activity, though somewhat softer in recent Inflation had remained subdued in recent months. months, continued at a high level. Total private hous- Consumer price inflation edged down in October and ing starts slipped in November after having held November as energy prices steadied after having steady in October. In addition, sales of new homes in increased rapidly earlier in the year. Moreover, the September-October period (latest data) were a excluding the volatile food and energy components, little below the pace recorded in the spring and early consumer prices rose slightly less in the twelve Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 285 months ended in November than in the previous movements were largely counterbalanced by declines twelve-month period. At the producer level, prices against the Japanese yen and the currencies of other of finished goods other than food and energy were important trading partners. unchanged in November after a moderate increase in M2 continued to grow at a moderate rate in October. For the year ended in November, core pro- November despite strong currency demand that likely ducer prices rose somewhat more than in the preced- was associated with a combination of robust holiday ing year. However, producer prices at earlier stages of spending and precautionary stockpiling for the cenprocessing continued to register increases somewhat tury rollover. Higher opportunity costs and currency larger than those for finished goods. With regard to demand apparently damped growth in holdings of labor costs, the rise in compensation per hour in the liquid deposits. By contrast, M3 surged in November, nonfarm business sector over the four quarters ending reflecting heavy issuance of large time deposits to in September was down considerably from the fund increases in bank credit and vault cash and large advance in the preceding four-quarter period. In addi- inflows to institution-only money market funds. For tion, average hourly earnings rose moderately in the the year through November, M2 and M3 were esti- October-November period and in the twelve months mated to have increased at rates somewhat above the ended in November. Committee's annual ranges for 1999. Total domestic At its meeting on November 16, the Committee nonfinancial debt continued to expand at a pace in the adopted a directive that called for a slight tightening upper portion of its range. of conditions in reserve markets consistent with an The staff forecast prepared for this meeting sugincrease of lA percentage point in the federal funds gested that the expansion would gradually moderate rate to an average of around 5Vi percent. The mem- from its currently elevated pace to a rate around or bers noted that the slight tightening would enhance perhaps a little below the growth of the economy's the chances for containing inflation and forestalling estimated potential. The expansion of domestic final the emergence of inflationary imbalances that could demand increasingly would be held back by the undermine the economy's highly favorable perfor- anticipated waning of positive wealth effects assomance. The members also agreed on a symmetric ciated with large earlier gains in equity prices, the directive. The special situation in financial markets slower growth of spending on consumer durables, over the year-end, along with uncertainty about the houses, and business equipment and software in the economy's response to the firming already under- wake of the prolonged buildup in the stocks of these taken in 1999, suggested that the Committee would items, and the higher intermediate- and longer-term want to assess further developments through early interest rates that had evolved as markets came to next year before considering additional policy action. expect that a rise in short-term interest rates would Open market operations during the intermeeting be needed to achieve sustainable, noninflationary period were directed toward implementing the growth. However, continued solid economic expandesired slightly greater pressure on reserve positions, sion abroad was expected to boost the growth of U.S. and the federal funds rate averaged close to the exports for some period ahead. Core price inflation Committee's 5V2 percent target. However, with the was projected to rise somewhat over the forecast economic expansion still quite strong and in the horizon, partly as a result of higher non-oil import context of the expression of concern about the infla- prices and some firming of gains in nominal labor tionary implications of unsustainably fast growth in compensation in persistently tight labor markets that the Committee's announcement of its decision at the would increasingly outpace even continued rapid pro- November meeting, incoming economic data were ductivity growth. viewed by market participants as increasing, on bal- In the Committee's discussion of current and proance, the chances of further monetary tightening in spective economic developments, members com- 2000. As a result, most market interest rates rose mented that the most recent statistical and anecdotal somewhat in the period after the November 16 meet- information provided further evidence of persisting ing. Despite the appreciable increase in Treasury strength in the expansion and of relatively subdued bond yields, most broad stock market indexes wage and price inflation. The economy clearly would advanced further during the intermeeting period. carry substantial expansionary momentum into the In foreign exchange markets, the trade-weighted new year, quite possibly in excess of growth in the value of the dollar changed little over the period in economy's long-run potential, and the key issue for relation to the currencies of a broad group of impor- the Committee was whether growth in aggregate tant U.S. trading partners. The dollar appreciated demand would slow to a more sustainable pace withagainst the euro and the Canadian dollar, but those out further tightening in the stance of monetary pol- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

286 Federal Reserve Bulletin • April 2000 icy. Members noted in this regard that evidence of a were fostering elevated levels of consumer confislowdown in the expansion was quite marginal at this dence and would be supporting consumer spending point and seemed to be limited largely to some soft- going forward. Anecdotal reports pointed to notably ening in housing activity. Looking beyond the near brisk retail sales during the current holiday season in term, members continued to anticipate some modera- many parts of the country. Sales of new automobiles tion in the growth of domestic demand, though the had rebounded recently after moderating somewhat extent of the moderation remained subject to a wide from an exceptionally rapid pace earlier. While recent range of uncertainty related in part to the difficulty of developments provided little basis for anticipating anticipating trends in stock market prices and their slower growth in consumer spending, members comeffects on business and consumer sentiment and mented that such spending could be vulnerable to spending. Members also noted that prospective slow- adverse developments in the stock market and the ing in domestic demand was likely to be offset, at attendant effects on consumer wealth and confileast to some extent, by further growth in exports dence; and spending for household durables could should foreign economies as a group continue to be damped by the anticipated softness in housing strengthen as many forecasters anticipated. activity. Uncertainties about the level and growth of poten- The capital goods markets also displayed very little tial output and the dynamics of the inflation process evidence of any weakening. They continued to be made it difficult to relate with confidence projections characterized by disproportionately large investments of demand and activity to prospects for inflation. in high-tech business equipment, although demand Members observed that they saw no indications that for more conventional equipment, apart from farm the impressive gains in productivity might be moder- equipment, also was relatively robust. Assessments ating and, indeed, the most recent data suggested of the outlook for overall business capital investment some further acceleration. Moreover, persistent dis- pointed to further rapid growth led by outlays for parities between the household and establishment equipment. Business spending on construction was series on employment growth might be reconciled by expected to change little on the whole, with strength higher immigration than previously estimated, further in some sectors, such as warehouse facilities, offset boosting potential growth. Nonetheless, the increase by softness in sectors such as industrial structures and in aggregate demand had been exceeding even the office buildings. Some members noted, however, that now-higher sustainable rate of growth in aggregate public works projects would help to support overall supply, as indicated by declines in the pool of avail- construction activity. able but unemployed workers to a very low level and Recent data along with anecdotal reports indicated by the rise in imports. This difference between the some loss of vigor in the nation's housing markets, growth of demand and potential supply could well though overall activity was still at a high level. The persist unless demand moderated. Absent a possible recent pace of homebuilding was somewhat uneven, moderation, an upturn in unit labor costs was seen as with relative strength in some areas supported by a likely possibility, with eventual adverse implica- seasonally favorable weather conditions or large tions for price inflation. Inflation pressures might also backlogs. Rising mortgage rates were cited as a key be augmented over time by a number of special factor underlying the limited moderation in residenfactors such as the rise in energy prices, the effects tial construction, but other factors included the scaron import prices of the dollar's depreciation and city of skilled construction workers, with some strengthening foreign economies, and faster increases diverted to nonresidential construction projects, and in medical costs. While several of these factors indications of overbuilding in some areas. Looking implied limited price level adjustments, they could ahead, the members anticipated that further growth become embedded to a degree in ongoing inflation in incomes and the ready availability financing for through their effects on wage increases and inflation most homebuyers would sustain overall housing expectations. Over the nearer term, however, subdued activity at a relatively high level. inflation expectations were likely to damp any incipi- Forecasts indicated that while real net exports ent uptrend in the rate of price inflation. would continue to decline over the next several quar- In their review of economic conditions across the ters, the rate of decline would moderate substantially. nation, several members noted that high levels of The solid further expansion expected in many foreign business activity were severely taxing available labor economies, the slower growth of domestic demand in resources and appeared to be constraining growth in a the United States, and the effects of the slippage of number of industries and parts of the country. Rising the foreign exchange value of the dollar on the relaemployment and incomes, along with the advance in tive prices of U.S. goods and services were all seen as stock market prices to new highs in recent weeks, contributing to this outcome. In the course of their Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 287 comments, members cited a number of examples of might be deteriorating, and thus little cost in deferalready-improved export markets for a variety of ring consideration of a policy tightening action. U.S. products. While expanding foreign demand for Moreover, the Committee would be in a better posi- U.S. goods and services was a welcome develop- tion by early February to assess the delayed effects of ment from the perspective of numerous business its earlier tightening actions. firms, such demand might add to pressures on U.S. On the issue of the intermeeting tilt in the Commitresources with potentially inflationary implications, tee's directive, most of the members expressed a depending on the extent to which the growth in preference for retaining the symmetry adopted at the domestic demand would slow going forward. Several November meeting. While a preemptive tightening members indicated their concern about the burgeon- move might be warranted in the not-too-distant future ing current account deficit and the potential that it to help contain inflationary pressures in the economy, could lead to a considerable weakening of the dollar these members believed that a symmetrical directive at some point, which would tend to add to upward would best convey the message that no tightening pressure on prices and demand. action was contemplated for the weeks immediately In their comments regarding the outlook for infla- ahead. Such a directive would therefore be more tion, a number of members expressed concern that consistent with their desire to avoid any misinterprethe anticipated moderation in overall demand might tations of their policy intentions that might unsettle not be large enough or soon enough to forestall added financial markets during the sensitive century-datepressures on already-taut labor markets. Although change period. In this view, longer-run concerns wage growth had remained moderate to date and unit about rising inflation could be addressed in the press labor costs damped, at some point tightening labor statement that would be issued after this meeting. A markets would begin to generate wage gains increas- few members indicated a marginal preference for an ingly in excess of productivity gains. Indeed, a few asymmetric directive that focused on the possibility members were concerned that unit labor costs could of an eventual rise in interest rates. In their view, begin to accelerate even at existing labor utilization an asymmetric directive would be more consistent levels. In addition, some of the forces that had been with the consensus among the Committee members restraining inflation—declining oil, import, and com- regarding the most likely course of monetary policy modity prices, and subdued increases in the costs of over the next few meetings and the use of the bias health care—had already reversed. Even so, resulting statement that had come to encompass this longer acceleration in price inflation might be held down horizon and was understood as such by financial and possibly averted for a time by the economy's market participants and the public. Moreover, such a buoyant upward trend in productivity, which could directive was widely anticipated in financial marsupport profit margins and help maintain the highly kets and hence would incur little risk in their view of competitive conditions in many markets that made it a market disturbance in the weeks immediately difficult or impossible for most business firms to raise ahead. However, they could readily accept a symtheir prices. In addition, there had been no evidence metrical directive in light of the contemplated press of any erosion in the widespread expectation that announcement. inflation would remain subdued over the long run. At the conclusion of this discussion, the members In the Committee's discussion of policy for the voted to authorize and direct the Federal Reserve period immediately ahead, all the members endorsed Bank of New York, until it was instructed otherwise, a proposal to maintain an unchanged policy stance to execute transactions in the System Account in consistent with a target for the federal funds rate accordance with the following domestic directive: centering on 5Vi percent. The members agreed that the Committee's primary near-term objective was to The information reviewed at this meeting suggests confoster steady conditions in financial markets during tinued strong expansion of economic activity. Nonfarm the period of the century date change and to avoid payroll employment increased substantially further in October and November, and the civilian unemployment any action that might erode the markets' confidence rate stayed at 4.1 percent in November, its low for the year. that the Federal Reserve was fully prepared to pro- Manufacturing output recorded sizable gains in October vide whatever liquidity would be needed in this and November. Total retail sales rose appreciably over the period. The members generally agreed that, if neces- two months. Housing activity has softened somewhat over sary, their concerns about rising inflation could be recent months but has remained at a high level. Trends in addressed at the meeting in early February. They saw orders suggest that business spending on capital equipment has increased further. The U.S. nominal trade deficit in little risk of a significant acceleration in inflation over goods and services rose in October from its average in the the near term, given recent price trends and the third quarter. Aggregate price increases have been smaller absence of indications that inflationary expectations in the past two months, reflecting a flattening in energy Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

288 Federal Reserve Bulletin • April 2000 prices; labor compensation rates have been rising more able to reach agreement on the likelihood of future slowly than last year. actions than on the potential reasons such actions Most market interest rates are up somewhat since the might be considered. The consensus opinion, howmeeting on November 16, 1999. Measures of share prices ever, was to replace the Committee's judgment about in equity markets have risen further over the intermeeting the likelihood of an increase or decrease in the period. In foreign exchange markets, the trade-weighted value of the dollar has changed little over the period in intended federal funds rate with a description of the relation to the currencies of a broad group of important Committee's perception of the risks in the foresee- U.S. trading partners. able future to the attainment of its long-run goals of M2 continued to grow at a moderate pace in November price stability and sustainable economic growth. while M3 surged. For the year through November, M2 and Although the Committee would vote on this assess- M3 are estimated to have increased at rates somewhat above the Committee's annual ranges for 1999. Total ment of the risks together with its policy stance, the domestic nonfinancial debt has expanded at a pace in the Committee would no longer include its view of future upper end of its range. developments in the domestic policy directive to the The Federal Open Market Committee seeks monetary Federal Reserve Bank of New York, because the new and financial conditions that will foster price stability and wording did not refer to an operational matter. The promote sustainable growth in output. In furtherance of these objectives, the Committee reaffirmed at its meeting in Committee's new directive would contain only a June the ranges it had established in February for growth of general statement of its policy objectives, its specific M2 and M3 of 1 to 5 percent and 2 to 6 percent respec- operating instructions for the intermeeting period, tively, measured from the fourth quarter of 1998 to the and in February and July a paragraph on the yearly fourth quarter of 1999. The range for growth of total money and debt ranges. To inform the public about domestic nonfinancial debt was maintained at 3 to 7 percent for the year. For 2000, the Committee agreed on a these decisions, the members agreed that an explanatentative basis in June to retain the same ranges for growth tory press release should be issued before the Februof the monetary aggregates and debt, measured from the ary meeting. fourth quarter of 1999 to the fourth quarter of 2000. The The Committee also accepted a proposal to codify behavior of the monetary aggregates will continue to be evaluated in the light of progress toward price level stabil- current practice regarding policy moves in the interity, movements in their velocities, and developments in the meeting period by amending the Authorization for economy and financial markets. Domestic Open Market Operations in February. The To promote the Committee's long-run objectives of price amendment was made necessary by the change in the stability and sustainable economic growth, the Committee language of the directive. Intermeeting moves, authoin the immediate future seeks conditions in reserve markets consistent with maintaining the federal funds rate at an rized by the Chairman, would remain possible but, as average of around 5LA percent. In view of the evidence in recent years, would be made only in exceptional currently available, the Committee believes that prospec- circumstances. One member expressed reservations tive developments are equally likely to warrant an increase about the proposed amendment, questioning its need or a decrease in the federal funds rate operating objective in light of the instruments already in place to deal during the intermeeting period. with liquidity emergencies and its appropriateness Votes for this action: Messrs. Greenspan, McDonough, because it could potentially allow policy moves to be Boehne, Ferguson, Gramlich, Kelley, McTeer, Meyer, made, however rarely, without necessarily drawing Moskow, and Stern. Votes against this action: None. on the benefits of full Committee participation. The other members, however, noted that the practices in place had worked well over the years, proving them- DISCLOSURE POLICY selves a useful adjunct to the regular Committee The members of the Committee agreed at this meet- decision-making process; that the new language ing to adopt a number of proposals offered by the would maintain those practices, clarifying that lati- Working Group on the Directive and Disclosure Pol- tude to change policy was to be exercised against the icy chaired by Mr. Ferguson, effective with the first background of the Committee's previous discussions meeting in 2000. One proposal was to issue a press and only in unusual circumstances; and that, if necesstatement after every meeting even when the Com- sary, adjustments to the Authorization could be made mittee decided to maintain its existing policy stance in the future. and did not change its view of future developments in It was agreed that the next meeting of the Commita major way. tee would be held on Tuesday-Wednesday, Feb- Another proposal was to change the way the Com- ruary 1-2, 2000. mittee characterizes its view of future developments. The meeting adjourned at 1:30 p.m. A few members wanted to retain the current focus on the possible future stance of policy because they Donald L. Kohn thought that the Committee would more readily be Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

289 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A ing of the International Banking Act ("IBA"), has applied under section 7(d) of the IBA (12 U.S.C. § 3105(d)) to The Board of Governors has amended 12 C.F.R. Part 201, establish a state-licensed branch in New York, New York, its Regulation A (Extensions of Credit by Federal Reserve and under section 10(a) of the IBA (12 U.S.C. § 3107(a)) to Banks), to reflect its approval of an increase in the basic establish a representative office in Washington, D.C. The discount rate at each Federal Reserve Bank. The Board Foreign Bank Supervision Enhancement Act of 1991 acted on requests submitted by the Boards of Directors of ("FBSEA"), which amended the IBA, provides that a the twelve Federal Reserve Banks. foreign bank must obtain the approval of the Board to Effective February 2, 2000, 12 C.F.R. Part 201 is establish a branch or representative office in the United amended as follows. The rate changes for adjustment credit States. were effective on the dates specified in 12 C.F.R. 201.51. Notice of the application, affording interested persons an opportunity to submit comments, has been published in Part 201—Extensions of Credit by Federal Reserve newspapers of general circulation in New York, New York, Banks (Regulation A) and Washington, D.C. (The New York Post, March 22, 1999; The Washington Post, March 22, 1999). The time for 1. The authority citation for 12 C.F.R. Part 201 continues to filing comments has expired, and all comments have been read as follows: considered. Bank had assets of approximately $52.1 billion as of Authority. 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, June 30, 1999. Approximately 71 percent of Bank's voting 348 et seq., 357, 374, 374a and 461. shares is owned by Dexia Credit Local de France ("DCLF"), Paris, France, and the remaining 29 percent is 2. Section 201.51 is revised to read as follows: owned by Credit Communal de Belgique ("CCB"), Brus- Section 201.51—Adjustment credit for depository sels, Belgium. Two holding companies, Dexia France, Paris, France, and Dexia, S.A., Brussels, Belgium, each institutions. own 50 percent of each of CCB and DCLF Dexia, S.A. in turn owns almost all the shares of Dexia France. The The rates for adjustment credit provided to depository largest shareholder of Dexia, S.A. is Holding Communal, institutions under section 201.3(a) are: S.A., Brussels, Belgium, which holds approximately 23 percent of its shares. Federal Reserve Bank Rate Effective Bank was established in January 1998 to coordinate the Boston 5.25 February 2, 2000 development by the Dexia organization of its public and New York 5.25 February 2, 2000 Philadelphia 5.25 February 2, 2000 project financing activities outside France, Belgium, and Cleveland 5.25 February 2, 2000 Luxembourg. Currently, Bank has a number of subsidiary Richmond 5.25 February 2, 2000 Atlanta 5.25 February 2, 2000 banks in Europe, a branch in each of London and Stock- Chicago 5.25 February 2, 2000 St. Louis 5.25 February 2, 2000 holm, and a representative office in Lisbon. In New York, Minneapolis 5.25 February 3, 2000 DCLF operates a state-licensed agency and CCB operates Kansas City 5.25 February 2, 2000 Dallas 5.25 February 4, 2000 a state-licensed branch. Bank's proposed branch would San Francisco 5.25 February 2, 2000 assume the business of DCLF's New York agency and expand its deposit-taking services.1 The proposed representative office would act as a liaison between Bank and ORDERS ISSUED UNDER INTERNATIONAL BANKING various international development assistance organizations. ACT In order to approve an application by a foreign bank to establish a branch in the United States, the IBA and Regu- Dexia Project and Public Finance International lation K require the Board to determine that each of the Bank foreign bank applicant and any parent foreign bank en- Paris, France gages directly in the business of banking outside of the Order Approving Establishment of a Branch and Representative Office 1. Bank has stated that DCLF's New York agency would not engage in further business after Bank's establishment of a New York branch Dexia Project and Public Finance International Bank and would eventually be closed. CCB's New York branch, however, ("Bank"), Paris, France, a foreign bank within the mean- would continue in existence. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

290 Federal Reserve Bulletin • April 2000 United States, and that the applicant has furnished to the hensive consolidated supervision by their home country Board the information it needs to assess the application supervisors.7 adequately. The Board generally also must determine that The Board also has taken into account the additional each of the foreign bank and any parent foreign bank is standards set forth in the IBA and in Regulation K.8 Bank subject to comprehensive supervision or regulation on a has provided the Board with the information necessary to consolidated basis by its home country supervisor.2 The assess the application through submissions that address the Board also may take into account additional standards as relevant issues. In addition, Bank's home country authority set forth in the IBA and Regulation K.3 has granted Bank approval to establish the proposed Bank, DCLF, and CCB engage directly in the business of branch. banking outside the United States through their banking France's risk-based capital standards conform to E.U. operations in Europe and elsewhere. Bank also has pro- capital standards which are consistent with those estabvided the Board with the information necessary to assess lished by the Basle Capital Accord. Bank's capital is in the application through submissions that address the rele- excess of the minimum levels that would be required by vant issues. the Basle Capital Accord and is considered equivalent to Regulation K provides that a foreign bank will be con- capital that would be required of a U.S. banking organizasidered to be subject to comprehensive supervision or tion. Managerial and other financial resources of Bank also regulation on a consolidated basis if the Board determines are consistent with approval, and Bank appears to have the that the bank is supervised and regulated in such a manner experience and capacity to support the proposed branch. In that its home country supervisor receives sufficient infor- addition, Bank has established controls and procedures in mation on the worldwide operations of the bank, including the branch to ensure compliance with applicable U.S. law, its relationship to any affiliates, to assess the bank's overall as well as controls and procedures for its worldwide operafinancial condition and its compliance with law and regula- tions generally. tion.4 The Board has made the following findings with Finally, the Board has reviewed the restrictions on disregard to the supervision of Bank, CLF, and CCB. closure in relevant jurisdictions in which Bank operates The Board previously determined that three French and has communicated with relevant government authoricredit institutions were subject to comprehensive consoli- ties about access to information. Bank and its parents have dated supervision by the French Commission Bancaire.5 committed to make available to the Board such informa- The Board has found that DCLF and Bank are supervised tion on Bank and any affiliate of Bank that the Board by the Commission Bancaire in substantially the same deems necessary to determine and enforce compliance with manner as the other French credit institutions. The Board the IBA, the Bank Holding Company Act, and other applialso previously determined that CCB was subject to com- cable federal law. To the extent that the provision of such prehensive consolidated supervision by the Belgian Com- information may be prohibited or impeded by law or mission Bancaire et Financiere ("CBF").6 The Board has otherwise, Bank and its parents committed to cooperate found that the supervision of CCB has not changed materi- with the Board to obtain any necessary consents or waivers ally since making that prior determination. Based on these that might be required from third parties in connection with findings and all the facts of record, the Board has deter- disclosure of certain information. In addition, subject to mined that Bank, DCLF, and CCB are subject to compre- certain conditions, the French and Belgian banking authorities may share information on Bank's operations with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to the 2. See 12 U.S.C. § (d) (2). condition described below, the Board has concluded that 3. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c). Bank and its parents have provided adequate assurances of 4. See 12 C.F.R. 211.24(c)(1)- In assessing this standard, the Board access to any necessary information the Board may reconsiders, among other factors, the extent to which the home country quest. supervisors: (i) ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide; (ii) obtain infor- On the basis of all the facts of record, and subject to the mation on the condition of the bank and its subsidiaries and offices commitments made by Bank, as well as the terms and through regular examination reports, audit reports, or otherwise; (iii) conditions set forth in this order, the Board has determined obtain information on the dealings with and relationship between the that Bank's application to establish a state-licensed branch bank and its affiliates, both foreign and domestic; (iv) receive from the in New York, New York, and a representative office in bank financial reports that are consolidated on a worldwide basis, or comparable information that permits analysis of the bank's financial Washington, D.C., should be, and hereby is, approved. condition on a worldwide consolidated basis; (v) evaluate prudential Should any restrictions on access to information on the standards, such as capital adequacy and risk asset exposure, on a operations or activities of Bank or any of its affiliates worldwide basis. These are indicia of comprehensive, consolidated subsequently interfere with the Board's ability to detersupervision; no single factor is essential and other elements may inform the Board's determination. 5. See Credit Agricole Indosuez, 83 Federal Reserve Bulletin 1025 (1997); Caisse Nationale de Credit Agricole, 81 Federal Reserve 7. In addition, the Board notes that the CBF exercises consolidated Bulletin, 1055 (1995); Banque Nationale de Paris, 81 Federal Re- supervision over Dexia, S.A. and is thus the primary supervisor of the serve Bulletin 515 (1995). entire Dexia group. The CBF exchanges information regularly and 6. See Credit Communal de Belgique, 82 Federal Reserve Bulletin frequently with the French Commission Bancaire. 104 (1996). 8. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 291 mine and enforce compliance by Bank or its affiliates with foreign banking organization within the meaning of Reguapplicable federal statutes, the Board may require termina- lation K (12 C.F.R. 211.23(b)). tion of any of Bank's direct or indirect activities in the In January 1999, Bank merged with Korea Long Term United States. Approval of this application also is specifi- Credit Bank, Seoul, Korea, which, until the merger, opercally conditioned on Bank's compliance with the commit- ated a branch in New York, New York. Bank has requested ments made in connection with this application and with authority to retain and operate the branch through this the conditions in this order.9 The commitments and condi- application. Pursuant to Regulation K, the Board allowed tions referred to above are conditions imposed in writing the merger to proceed before an application to establish the by the Board in connection with its decision and may be office was filed and acted on by the Board.3 enforced in proceedings under applicable law against Bank, In order to approve an application by a foreign bank to its offices, and its affiliates. establish a branch in the United States, the IBA and Regu- By order of the Board of Governors, effective Febru- lation K require the Board to determine that the foreign ary 22, 2000. bank applicant engages directly in the business of banking outside of the United States, and has furnished to the Board Voting for this action: Chairman Greenspan, Vice Chairman Fergu- the information it needs to assess the application adeson, and Governors Kelley, Meyer, and Gramlich. quately. The Board also shall take into account whether the foreign bank and any foreign bank parent is subject to ROBERT DEV. FRIERSON comprehensive supervision or regulation on a consolidated Associate Secretary of the Board basis by its home country supervisor (12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24).4 The Board may also take Kookmin Bank into account additional standards as set forth in the IBA Seoul, Korea and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)-(3)). Order Approving Establishment of a Branch The IBA includes a limited exception to the general requirement relating to comprehensive, consolidated super- Kookmin Bank ("Bank"), Seoul, Korea, a foreign bank vision (12 U.S.C. § 3105(d)(6)). This exception provides within the meaning of the International Banking Act that, if the Board is unable to find that a foreign bank ("IBA"), has applied under section 7(d) of the IBA seeking to establish a branch, agency, or commercial lend- (12 U.S.C. § 3105(d)) to establish a state-licensed branch ing company is subject to comprehensive supervision or in New York, New York. The Foreign Bank Supervision regulation on a consolidated basis by the appropriate au- Enhancement Act of 1991, which amended the IBA, prothorities in its home country, the Board may nevertheless vides that a foreign bank must obtain the approval of the approve an application by such foreign bank if: (i) the Board to establish a branch in the United States. appropriate authorities in the home country of the foreign Notice of the application, affording interested persons an bank are actively working to establish arrangements for the opportunity to comment, has been published in a newspa- consolidated supervision of such bank; and (ii) all other per of general circulation in New York, New York (The factors are consistent with approval (12 U.S.C. New York Times, March 5, 1999). The time for filing § 3105(d)(6)(A)). In deciding whether to exercise its discomments has expired, and the Board has considered the cretion to approve an application under authority of this application and all comments received. exception, the Board shall also consider whether the for- Bank, with total consolidated assets of approximately eign bank has adopted and implements procedures to com- $68.1 billion, is the second largest bank in Korea.1 Bank, a bat money laundering (12 U.S.C. § 3105(d)(6)(B)). The privately owned commercial bank,2 operates an extensive Board also may take into account whether the home counnetwork of branches and subsidiaries in Korea. Bank also try of the foreign bank is developing a legal regime to operates branches in Argentina, Japan, and New Zealand; a representative office in China; and four foreign subsidiaries. In the United States, Bank operates a representative 3. See 12 C.F.R. 211.24(a)(3), and Board Letter, dated Decemoffice in New York, New York. Bank is a qualifying ber 16, 1998, to Kookmin Bank. 4. In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors: (i) ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide; (ii) obtain information on the condition of the 9. The Board's authority to approve the establishment of the pro- bank and its subsidiaries and offices through regular examination posed offices parallels the continuing authority of the State of New reports, audit reports, or otherwise; (iii) obtain information on the York and the District of Columbia to license offices of a foreign bank. dealings with and relationship between the bank and its affiliates, both The Board's approval of this application does not supplant the author- foreign and domestic; (iv) receive from the bank financial reports that ity of these jurisdictions to license the proposed offices of Bank in are consolidated on a worldwide basis or comparable information that accordance with any terms or conditions that they may impose. permits analysis of the bank's financial condition on a worldwide consolidated basis; (v) evaluate prudential standards, such as capital 1. All data are as of December 31, 1998. adequacy and risk asset exposure, on a worldwide basis. These are 2. Bank's largest shareholder is Goldman Sachs, which owns indicia of comprehensive, consolidated supervision. No single factor 11.2 percent of Bank; the Korean government owns 7.3 percent of is essential, and other elements may inform the Board's determina- Bank. Bank's remaining shares are widely held. tion. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

292 Federal Reserve Bulletin • April 2000 address money laundering or is participating in multilateral Based on all the facts of record, the Board has deterefforts to combat money laundering (12 U.S.C. § 3105(d) mined that Bank's home country authorities are actively (6) (B)). working to establish arrangements for the consolidated As noted above, Bank engages directly in the business of supervision of Bank, and that considerations relating to the banking outside the United States. Bank also has provided steps taken by Bank and its home country to combat the Board with information necessary to assess the applica- money laundering are consistent with approval under this tion through submissions that address the relevant issues. standard.7 With respect to supervision by Bank's home country The Board has also taken into account the additional authorities, the Board has considered the following infor- standards set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4); mation. In early 1997, the Korean economy experienced 12 C.F.R. 211.24(c)(2)). The FSS has no objection to the difficulties in the financial sector. To address these difficul- establishment of the proposed branch. ties, the Korean government has taken measures to reform Bank must comply with the minimum capital standards the financial sector, including restructuring bank regulation of the Basel Capital Accord ("Accord"), as implemented and supervision through the establishment of a new super- by Korea. Bank's capital is in excess of the minimum visory authority for Korean financial institutions, the levels that would be required by the Accord and is consid- Financial Supervisory Commission ("FSC").5 The FSC is ered equivalent to the capital that would be required of a responsible for promulgating supervisory regulation, mak- U.S. banking organization. Managerial and other financial ing policy decisions regarding supervision, and imposing resources of Bank are also considered consistent with sanctions on financial institutions. Bank is supervised by approval, and Bank appears to have the experience and the Financial Supervisory Service ("FSS"), the executive capacity to support the proposed branch. Bank has estabbody of the FSC.6 lished controls and procedures for the proposed branch to Over the past two years, Korea has instituted several ensure compliance with U.S. law, as well as controls and new requirements and prudential limitations applicable to procedures for its worldwide operations generally. banks which are intended to address gaps in the supervi- With respect to access to information about Bank's sory system that became evident during and after the recent operations, the Board has reviewed the restrictions on financial crisis. These changes include a new asset quality disclosure in relevant jurisdictions in which Bank operates assessment framework, tighter limitations on loans to a and has communicated with relevant government authorisingle borrower, a prompt corrective action framework, ties regarding access to information. Bank has committed and improvements in accounting policies. to make available to the Board such information on the With regard to measures to prevent money laundering, operations of Bank and any of its affiliates that the Board although the Korean government has not formally adopted deems necessary to determine and enforce compliance with the recommendations of the Financial Action Task Force the IBA, the Bank Holding Company Act of 1956, as ("FATF") regarding the prevention and detection of money amended, and other applicable federal law. To the extent laundering, Korean laws and regulations contain provi- that the provision of such information to the Board may be sions that parallel certain of the FATF recommendations. prohibited by law, Bank has committed to cooperate with Korean law, for example, requires financial institutions to the Board to obtain any necessary consents or waivers that conduct all financial transactions with customers on a might be required from third parties for disclosure of such real-name basis and to confirm a customer's identity before information. In addition, subject to certain conditions, the engaging in any transactions. In addition, the FSC has FSS may share information on Bank's operations with issued regulations that prohibit Korean banks from partici- other supervisors, including the Board. In light of these pating in money laundering or other irregular financial commitments and other facts of record, and subject to the transactions and that require Korean banking institutions to condition described below, the Board concludes that Bank establish policies and procedures to safeguard against such has provided adequate assurances of access to any necesactivities. sary information that the Board may request. Bank has implemented policies and procedures to ensure On the basis of all the facts of record, and subject to the compliance with Korean law and FSC regulations. Bank's commitments made by Bank, as well as the terms and employees are required to conduct all financial transactions conditions set forth in this order, the Board has determined with customers on a real-name basis and to confirm a that Bank's application to establish a branch should be, and customer's identity before engaging in any transaction. hereby is, approved. Should any restrictions on access to Bank has also established detailed identification and re- information on the operations or activities of Bank and its cordkeeping procedures. 7. In September 1997, in connection with the application of another Korean bank, the Board found that the Korean supervisory authorities were actively working to establish arrangements for the consolidated 5. Before the establishment of the FSC, there were four industry- supervision of that bank. See Housing & Commercial Bank, specific financial supervisory authorities in Korea; the FSC was cre- 83 Federal Reserve Bulletin 935 (1997). The reform measures deated as a single integrated financial supervisory authority. scribed in the Board's Housing and Commercial Bank order, as well 6. The FSS, under the direction of the FSC, is responsible for the as the initiatives outlined above, are illustrative of the steps the /supervision and examination of financial institutions and handles Korean government is undertaking to strengthen its bank supervisory matters delegated to it by the FSC. system. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 293 affiliates subsequently interfere with the Board's ability to its decision and may be enforced in proceedings under obtain information to determine and enforce compliance by 12 U.S.C. §1818 against Bank and its affiliates. Bank or its affiliates with applicable federal statutes, the By order of the Board of Governors, effective Febru- Board may require termination of any of Bank's direct or ary 11, 2000. indirect activities in the United States. Approval of this application also is specifically conditioned on compliance Voting for this action: Chairman Greenspan, Vice Chairman Ferguby Bank with the commitments made in connection with son, and Governors Kelley, Meyer, and Gramlich. this application and with the conditions in this order.8 The commitments and conditions referred to above are condi- ROBERT DEV. FRIERSON Associate Secretary of the Board tions imposed in writing by the Board in connection with York to license offices of a foreign bank. The Board's approval of this application does not supplant the authority of the State of New York and the New York State Banking Department ("Department") to 8. The Board's authority to approve the establishment of the pro- license the proposed office of Bank in accordance with any terms or posed branch parallels the continuing authority of the State of New conditions that the Department may impose. INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (OCTOBER 1, 1999-DECEMBER 31, 1999) Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Antwerpse Diamantbank N.V., To establish a representative office in October 27, 1999 85, 830 Antwerp, Belgium New York, New York Bank Austria Aktiengesellschaft, To establish a federally licensed branch in November 18, 1999 86, 67 Vienna, Austria Greenwich, Connecticut Banque Nationale de Paris, Paribas Corporation, December 20, 1999 86, 118 Paris, France New York, New York Paribas, Paribas Asset Management, Inc., Paris, France New York, New York Paribas Futures, Inc., New York, New York Bayerische Hypo- und Vereinsbank AG, Identrus, LLC, November 10, 1999 86, 56 Munich, Germany New York, New York Deutsche Bank AG, Frankfurt, Germany Stichting Prioriteit ABN AMRO Holding, Amsterdam, The Netherlands Stichting Administratiekantoor ABN AMRO Holding, Amsterdam, The Netherlands ABN AMRO Holding N.V., Amsterdam, The Netherlands ABN AMRO Bank N.V., Amsterdam, The Netherlands BB&T Corporation, Premier Bancshares, Inc., December 17, 1999 86, 116 Winston-Salem, North Carolina Atlanta, Georgia Premier Bank, Atlanta, Georgia Bank Atlanta, Decatur, Georgia Farmers and Merchants Bank, Summerville, Georgia Milton National Bank, Roswell, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

294 Federal Reserve Bulletin • April 2000 Index of Orders Issued or Actions Taken—Continued Bulletin Volume and Applicant Merged or Acquired Bank or Activity Date of Approval Page Brookline Bancorp, MHC, Medford Bancorp, Inc., November 29, 1999 86, 52 Brookline, Massachusetts Medford, Massachusetts Brookline Bancorp, Inc., Medford Savings Bank, Brookline, Massachusetts Medford, Massachusetts First Security Corporation, Zions Bancorporation, December 13, 1999 86, 122 Salt Lake City, Utah Salt Lake City, Utah HSBC Holdings pic, Republic New York Corporation, December 6, 1999 86, 140 London, United Kingdom New York, New York HSBC Finance Netherlands, Republic National Bank of New York, London, United Kingdom New York, New York HSBC Holdings BY, Republic New York Corporation, Amsterdam, The Netherlands New York, New York Republic National Bank of New York, New York, New York Republic Bank California National Association, Beverly Hills, California Illini Corporation, Farmers State Bank of Camp Point, October 25, 1999 85, 829 Springfield, Illinois Camp Point, Illinois Exchange Bancshares of Moore, Inc. Exchange National Bank of Moore, December 8, 1999 86, 115 Moore, Oklahoma Moore, Oklahoma J.P. Morgan & Co. Incorporated, TP Group LDC, November 8, 1999 86, 61 New York, New York Grand Cayman, Cayman Islands UBS AG, Tradepoint Financial Networks pic, Zurich, Switzerland London, United Kingdom KBC Bank N.V., To establish a branch in New York, New October 27, 1999 85, 832 Brussels, Belgium York, an agency in Atlanta, Georgia, and a representative office in Los Angeles, California The Sanwa Bank, Limited, The Toyo Trust and Banking Company, November 24, 1999 86, 54 Osaka, Japan Limited, Tokyo, Japan Toyo Trust Company of New York, New York, New York SunTrust Bank, SunTrust Banks, Inc. (STB), November 18, 1999 86, 65 Atlanta, Georgia Atlanta, Georgia To merge with STB's 26 wholly owned subsidiary banks UBS AG, To establish a representative office in November 24, 1999 86, 69 Basel, Switzerland Washington, D.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 295 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 FNB Corp., Carolina Fincorp, Inc., February 23, 2000 Asheboro, North Carolina Rockingham, North Carolina Richmond Savings Bank, Inc., SSB, Rockingham, North Carolina Section 4 Applicant(s) Bank(s) Effective Date Bank of America Corporation, Star Systems, Inc., February 18, 2000 Charlotte, North Carolina Maitland, Florida BancWest Corporation, Bank Network Securities, Honolulu, Hawaii Chicago, Illinois BB&T Corporation, Winston-Salem, North Carolina First Union Corporation, Charlotte, North Carolina SunTrust Banks, Inc., Atlanta, Georgia Wachovia Corporation, Winston-Salem, North Carolina Zions Bancorporation, Salt Lake City, Utah 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 Bank of America Corporation, Bank of America Oregon, National Richmond January 25, 2000 Charlotte, North Carolina Association, N B Holdings Corporation, Portland, Oregon Charlotte, North Carolina BB&T Corporation, First Banking Company of Southeast Richmond February 25, 2000 Winston-Salem, North Carolina Georgia, Statesboro, Georgia BB&T Corporation, Hardwick Holding Company, Richmond February 24, 2000 Winston-Salem, North Carolina Dalton, Georgia Calvert Financial Corporation, Bunceton State Bank, Kansas City February 2, 2000 Jefferson City, Missouri Bunceton, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

296 Federal Reserve Bulletin • April 2000 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Castle Creek Capital Partners First Community Bancorp, San Francisco February 23, 2000 Fund I, LP, Rancho Santa Fe, California Rancho Santa Fe, California Castle Creek Capital Partners Fund Ha, LP, Rancho Santa Fe, California Castle Creek Capital Partners Fund lib, LP, Rancho Santa Fe, California Castle Creek Capital LLC, Rancho Santa Fe, California WJR Inc., Rancho Santa Fe, California Eggemeyer Advisory Inc., Rancho Santa Fe, California Centerstate Banks of Florida, Inc., First National Bank of Osceola County, Atlanta January 28, 2000 Winter Haven, Florida Kissimmee, Florida Community National Bank of Pacso County, Zephyrhills, Florida First National Bank of Polk County, Winter Haven, Florida Centra Financial Holdings, Inc., Centra Bank, Inc., Richmond February 16, 2000 Morgantown, West Virginia Morgantown, West Virginia Century South Banks, Inc., Lanier Bankshares, Inc., Atlanta January 28, 2000 Dahlonega, Georgia Gainesville, Georgia Lanier National Bank, Gainesville, Georgia Columbia Bancorp, Suburban Bancshares, Inc., Richmond February 17, 2000 Columbia, Maryland Greenbelt, Maryland Commonwealth Bancshares, Inc. Commonwealth Financial Corporation, St. Louis February 18, 2000 Shelbyville, Kentucky Louisville, Kentucky Commonwealth Bank and Trust Company, Louisville, Kentucky F&A Financial Holding Company, F&A Financial Corporation, Cleveland February 16, 2000 Kittanning, Pennsylvania Kittanning, Pennsylvania First Community Bancorp, Rancho Santa Fe National Bank, San Francisco February 23, 2000 Rancho Santa Fe, California Rancho Santa Fe, California First Community Bank of the Desert, Indian Wells, California First Mountain Company KSOP First Mountain Company, Kansas City January 25, 2000 Plan, Montrose, Colorado Montrose, Colorado Gold Banc Corporation, Inc., Country Banc Holding Company, Kansas City February 9, 2000 Leawood, Kansas Edmond, Oklahoma Gold Banc Acquisition Corporation XII, Inc., Leawood, Kansas HSB Bancorp, Inc., Hebron Savings Bank, Richmond February 15, 2000 Hebron, Maryland Hebron, Maryland Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 297 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Lewisville Bancorp, Inc., Madison Lake Bancorporation, Inc., Minneapolis February 2, 2000 Lewisville, Minnesota Madison Lake, Minnesota Van Deusen Bancorp, Inc., Peoples State Bank of Madison Lake, Lewisville, Minnesota Madison Lake, Minnesota Mesquite Financial Services, Inc., Falfurrias State Bank, Dallas February 18, 2000 Alice, Texas Falfurrias, Texas Midland Bancshares, Inc., Community National Bank, Dallas February 8, 2000 Midland, Texas Midland, Texas National Commerce Bancorporation, First National Bank, St. Louis February 3, 2000 Memphis, Tennessee Lenoir City, Tennessee NBG Bancorp, Inc., The National Bank of Georgia, Atlanta February 22, 2000 Athens, Georgia Athens, Georgia Northern Missouri Bancshares, Inc., First National Bancshares of Kansas City January 26, 2000 Unionville Missouri Gallatin, Inc., Gallatin, Missouri Pacific Mercantile Bancorp, Pacific Mercantile Bank, San Francisco February 11, 2000 Newport Beach, California Newport Beach, California Port Financial Corp., Cambridgeport Bank, Boston February 1, 2000 Cambridge, Massachusetts Cambridge, Massachusetts Cambridge Bancorp, Cambridge, Massachusetts Wells Fargo & Company, Napa National Bancorp, San Francisco February 25, 2000 San Francisco, California Napa, California Napa National Bank, Napa, California Wewahitchka State Bank Employee Gulf Coast Bancshares, Inc., Atlanta January 21, 2000 Stock Ownership Plan, Wewahitchka, Florida Wewahitchka, Florida Wewahitchka State Bank, Wewahitchka, Florida Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Barclays pic, Identrus, LLC, New York February 11, 2000 London, England New York, New York Barclays Bank pic, London, England Berkshire Bancorp Inc., To engage de novo in certain credit card New York January 26, 2000 New York, New York authorization and credit card processing activities Central Progressive Bancshares, To engage de novo in making, Atlanta January 28, 2000 Inc., brokering, or servicing loans or other Hammond, Louisiana extensions of credit Citizens Bankshares, Inc., Citizens Bank of Farmington, Kansas City February 7, 2000 Farmington, New Mexico Farmington, New Mexico Dakota Bancshares, Inc., American State Insurance Agency, Inc., Minneapolis February 24, 2000 Mendota Heights, Minnesota Olivia, Minnesota Olivia Bancorporation, Inc., Olivia, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

298 Federal Reserve Bulletin • April 2000 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Deutsche Bank AG, Keyboard Acceptance Corporation, New York January 26, 2000 Frankfurt, Germany Mason, Ohio Deutsche Financial Services, Inc., Signature Leasing Company, St. Louis, Missouri Mason, Ohio Deutsche Bank AG, InterSec Research Corporation, New York February 7, 2000 Frankfurt, Germany Stamford, Connecticut German American Capital Corporation, New York, New York Exchange Bankshares, Inc., Exchange Insurance Agency, Inc., Atlanta February 24, 2000 Milledgeville, Georgia Gray, Georgia First Farmers Financial Corporation, Chicago January 27, 2000 Converse, Indiana Independent Bankers Life Reinsurance Company of Indiana Ltd., Turks and Caicos Islands First Western Bancorp, Inc., Kendall Insurance, Minneapolis February 7, 2000 Huron, South Dakota Lead, South Dakota Ellis Insurance, Lead, South Dakota Indiana United Bancorp, IUB Reinsurance Co., Ltd., Chicago February 1, 2000 Greensburg, Indiana Greensburg, Indiana Intervest Bancshares Corporation, Intervest Corporation of New York, Atlanta January 31, 2000 New York, New York New York, New York Societe Generale, IMP.COM, Inc., New York February 3, 2000 Paris, France New York, New York Societe Generale Investment Corporation, New York, New York Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bank of Whitman Employee Stock Whitman Bancorporation, Inc., San Francisco February 3, 2000 Ownership Plan, Colfax, Washington Colfax, Washington Bank of Whitman, Colfax, Washington B.O.W.F.I., Inc., Colfax, Washington Zumbrota Agency, Inc., Tri County Investment Company, Inc. Minneapolis January 25, 2000 Zumbrota, Minnesota Pine Island, Minnesota Pine Island Bancshares, Inc., Zumbrota, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 299 APPLICATIONS APPROVED UNDER BANK MERGER 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. Applicant(s) Bank(s) Effective Date Merrill Merchants Bank, First National Bank of Bar Harbor, February 10, 2000 Bangor, Maine Bar Harbor, Maine 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 CivicBank of Commerce, East County Bank, San Francisco February 10, 2000 Oakland, California Antioch, California European American Bank, Olympian Bank, New York February 23, 2000 New York, New York Brooklyn, New York Gold Bank, First Business Bank, N.A., Kansas City January 24, 2000 Leawood, Kansas Kansas City, Missouri Ravalli County Bank, Glacier Bank, Minneapolis February 15, 2000 Hamilton, Montana Kalispell, Montana Springdale Bank & Trust, The First National Bank of Huntsville, St. Louis February 9, 2000 Springdale, Arkansas Huntsville, Arkansas PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Reserve Bank of New York to investigate certain matters. Federal Reserve Banks in which the Board of Governors is not On January 19, 2000, the court dismissed the appeal. named a party. Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed August 3, 1999). Employment discrimination action. Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. (D.D.C., filed February 18, 2000). Action challenging the Cal., filed July 21, 1999). Action relating to impounded funding of the retirement plan for certain Board employees. bank drafts. Board Of Governors v. Interfinancial Services, Ltd., No. 00-75 Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., (RCL) (D.D.C., filed February 9, 2000). Action to enforce filed April 28, 1999). Appeal of dismissal of action chaladministrative subpoena issued by the Board. lenging income taxation and Federal Reserve notes. Toland v. Internal Revenue Service, Federal Reserve System, Sedgwick v. Board of Governors, No. Civ 99 0702 (D. Ariet al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed zona, filed April 14, 1999). Action under Federal Tort December 29, 1999). Challenge to income taxation and Claims Act alleging violation of bank supervision require- Federal Reserve notes. On February 16, 2000, the govern- ments. The Board filed a motion to dismiss on June 15, ment filed a motion to dismiss the action. 1999. Irontown Housing Corp. v. Board of Governors, No. 99-9549 Hunter v. Board of Governors, No. 1:98CV02994 (ESH) (10th Cir., filed December 27, 1999). Petition for review of (D.D.C., filed December 9, 1998). Action under the Free- Board order dated December 13, 1999, approving the dom of Information Act, the Privacy Act, and the first merger of Zions Bancorporation with First Security Corpo- amendment. The Board filed a motion to dismiss or for ration. summary judgment on July 22, 1999. Wasserman v. Federal Reserve Bank, No. 99-6280 (2d Cir., Folstad v. Board of Governors, No. 1:99 CV 124 (W.D. Mich., filed August 26, 1999). Appeal of district court dismissal of filed February 17, 1999). Freedom of Information Act comcase challenging refusal by the Board and the Federal plaint. On November 16, 1999, the district court granted the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

300 Federal Reserve Bulletin • April 2000 Board's motion for summary judgment and dismissed the order granting in part and denying in part the Board's action. On January 14, 2000, the plaintiff filed a notice of motion for summary judgment seeking prejudgment interest appeal. and a statutory surcharge in connection with a civil money Nelson v. Greenspan, No. 1:99CV00215 (EGS) (D.D.C., filed penalty assessed by the Board. On February 24, 1999, the January 28, 1999). Employment discrimination complaint. court granted the Board's appeal and denied the cross- On February 25, 2000, the court granted the Board's motion appeal, and remanded the matter to the district court for to dismiss the complaint. determination of prejudgment interest due to the Board. Fraternal Order of Police v. Board of Governors, No. Bettersworth v. Board of Governors, No. 97-CA-624 (W.D. 1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998). Tex., filed August 21, 1997). Privacy Act case. On June 1, Declaratory judgment action challenging Board labor prac- 1999, the Board filed a motion for summary judgment. On tices. On February 26, 1999, the Board filed a motion to February 17, 2000, the court granted the motion and disdismiss the action. missed the action. Independent Community Bankers of America v. Board of Governors, No. 98- 1482 (D.C. Cir., filed October 21, 1998). Petition for review of a Board order dated September 23, WRITTEN AGREEMENTS APPROVED BY FEDERAL 1998, conditionally approving the applications of Travelers RESERVE BANKS Group, Inc., New York, New York, to become a bank holding company by acquiring Citicorp, New York, New Bank of New York York, and its bank and nonbank subsidiaries. On Novem- New York, New York ber 2, 1999, the court affirmed the Board's order. Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) The Federal Reserve Board announced on February 8, (S.D.N.Y„ filed May 15, 1998). Action to freeze assets of 2000, the execution of a Written Agreement by and among individual pending administrative adjudication of civil the Bank of New York, New York, New York, the Federal money penalty assessment by the Board. On May 26, 1998, Reserve Bank of New York, and the New York State the court issued a preliminary injunction restraining the Banking Department. transfer or disposition of the individual's assets and appointing the Federal Reserve Bank of New York as receiver for United Bancshares, Inc. those assets. Following entry of the Board's order requiring Philadelphia, Pennsylvania restitution, 85 Federal Reserve Bulletin 142 (1998), the court granted the Board's motion for judgment in the asset The Federal Reserve Board announced on February 25, freeze action and authorized a judicial sale of the seized 2000, the execution of a Written Agreement by and among property. United Bancshares, Inc., Philadelphia, Pennsylvania; the Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed United Bank of Philadelphia, Philadelphia, Pennsylvania, May 4, 1998). Appeal and cross-appeal of district court and the Federal Reserve Bank of Philadelphia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

55 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued All Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A32 Domestic finance companies—Assets and liabilities A33 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A34 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A35 Mortgage debt outstanding and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions— A36 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 A22 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 US. 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

56 Federal Reserve Bulletin • April 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 US. 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

A3 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 Financial Statistics • April 2000 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999r 1999r 2000 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q1 Q2 Q3 Q4 Sept. Oct. Nov. Dec. Jan. Reserves of depository institutions2 1 Total -1.2 -6.6 -15.4 -7.9 1.3 -33.3 7.5 9.4 52.0 2 Required 1.0 -5.6 -15.0 -9.4 -.6 -33.0 2.2 10.4 32.5 3 Nonborrowed -1.3 -6.7 -17.1 -7.5 1.5 -32.0 8.9 7.0 50.8 4 Monetary base3 8.7 9.6 9.2 20.1 12.3 16.4 25.8 44.4 1.1 Concepts of money and debt4 5 Ml 1.9 2.1 -1.9 5.3 -3.1 6.2 9.8 16.4 -3.7 6 M2 7.5 6.0 5.5 5.4 5.6 4.7 5.2 7.5 6.0 7 M3 8.2 6.0 5.1 10.0 5.5 9.9 14.6 15.7 7.8 8 Debt 6.7 6.9 6.0 6.2 7.0 6.1 4.8 7.0 n.a. Nontransaction components 9 In M25 9.3 7.3 7.9 5.4 8.3 4.2 3.8 4.7 9.1 10 In M3 only6 10.1 5.9 4.0 22.7 5.2 24.1 40.0 37.2 12.5 Time and savings deposits Commercial banks 11 Savings, including MMDAs 14.0 10.7 10.6 4.1 11.1 3.6 -.9 -3.3 2.1 12 Small time7 -5.2 -2.0 2.5 6.6 6.8 6.4 7.9 7.0 7.9 13 Large time8'9 .5 -.9 .3 40.3 13.7 56.7 59.4 43.3 11.7 Thrift institutions 14 Savings, including MMDAs 14.2 14.5 13.1 -3.2 .0 -5.8 -4.2 -7.4 -4.0 15 Small time7 —6.6 -6.3 -3.5 4.7 3.1 4.2 8.0 6.0 8.2 16 Large time8 8.0 -4.4 1.5 6.6 .0 .0 20.1 6.6 36.7 Money market mutual funds 17 Retail 18.7 11.2 9.6 11.7 11.8 9.2 10.6 21.5 27.5 18 Institution-only 19.8 14.1 9.3 21.4 6.6 22.9 29.9 31.0 31.8 Repurchase agreements and Eurodollars 19 Repurchase agreements10 17.4 -1.1 9.0 8.9 .4 -3.1 23.0 39.5 -30.6 20 Eurodollars10 -1.3 21.7 -9.7 3.9 -16.7 -15.4 52.3 50.1 17.2 Debt components4 21 Federal -3.1 -2.3 -.3 -4.4 -4.2 -5.8 -7.7 .8 n.a. 22 Nonfederal 9.6 9.7 7.7 9.2 10.1 9.4 8.3 8.6 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 2000 1999 2000 Nov. Dec. Jan. Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 561,178 595,909r 582,309 584,129 594,424 618,787 636,901 589,581 571,877 565,741 U.S. government securities2 2 Bought outright—System account" 492,811 492,467 491,902 495,734 494,597 489,170 480,862 484,695 494,824 497,578 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 183 181 180 181 181 181 181 181 181 179 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 33,382 68,012 53,099 53,343 64,415 93,154 120,136 67,421 40,754 28,821 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 172 160 315 167 83 361 205 856 242 117 9 Seasonal credit 65 69 30 60 80 78 44 31 28 27 10 Special Liquidity Facility credit 12 74 48 43 25 223 52 127 16 17 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 416 761r 1,345 648 615 635 453 1,032 403 3,365 13 Other Federal Reserve assets 34,138 34,186 35,392 33,952 34,429 34,984 34,968 35,238 35,430 35,637 14 Gold stock 11,049 11,048 11,048 11,049 11,049 11,048 11,048 11,048 11,048 11,048 15 Special drawing rights certificate account 7,200 6,652 6,200 7,057 6,200 6,200 6,200 6,200 6,200 6,200 16 Treasury currency outstanding 27,747 27,928 28,177 27,908 27,943 27,978 28,013 28,146 28,192 28,237 ABSORBING RESERVE FUNDS 17 Currency in circulation . .. 569,656 601,159 587,982 592,106 602,552 619,311 625,897 599,272 581,666 571,880 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 93 110 121 108 109 109 111 121 122 125 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,055 8,250 8,148 5,273 6,206 12,138 20,943 5,326 5,390 7,205 21 Foreign 213 136 93 214 58 99 76 74 101 83 22 Service-related balances and adjustments . 7,176 7,513 7,675 7,338 7,769r 7,784r 7,867 7,967 7,472 7,771 23 Other 252 248 361 222 213 195 956 191 250 237 24 Other Federal Reserve liabilities and capital 18,384 18,505 18,240 18,643 18,663 18,625 17,543 18,188 18,446 18,491 25 Reserve balances with Federal Reserve Banks 6,346 5,616 5,114 6,238 4,045r 5,75 lr 8,769 3,835 3,871 5,435 End-of-month figures Wednesday figures Nov. Dec. Jan. Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 575,843 653,561 561,444 592,187 603,648 644,631 613,606 585,632 568,808 571,162 U.S. government securities2 2 Bought outright—System account 492,910 477,963 500,228 494,927 494,391 483,417 486,948 485,719 496,110 499,138 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 181 181 175 181 181 181 181 181 181 175 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty 49,440 140,640 23,105 60,665 73,085 122,870 91,645 62,895 34,610 25,105 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 8 140 86 1,010 112 1,609 117 946 127 154 9 Seasonal credit 65 47 21 72 78 76 36 32 32 23 10 Special Liquidity Facility credit 5 47 22 236 28 1,187 27 22 13 21 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 122 -237 2,986 809 1,088 113 -449 365 2,335 10,713 13 Other Federal Reserve assets 33,111 34,781 34,820 34,287 34,685 35,178 35,100 35,472 35,401 35,832 14 Gold stock 11,049 11,048 11,048 11,049 11,048 11,048 11,048 11,048 11,048 11,048 15 Special drawing rights certificate account 7,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 16 Treasury currency outstanding 27,831 28,013 28,282 27,908 27,943 27,978 28,013 28,146 28,192 28,237 ABSORBING RESERVE FUNDS 17 Currency in circulation 583,103 628,359 566,568 597,616 611,834 628,587 616,630 589,928 577,837 569,593 18 Reverse repurchase agreements—triparty4 . .. 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 85 109 125 109 109 109 121 121 125 125 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,025 28,402 6,119 7,777 4,741 25,923 15,134 5,454 3,716 8,780 21 Foreign 501 71 82 496 88 234 82 110 80 81 22 Service-related balances and adjustments . 7,294 7,867r 7,230 7,338 7,769r 7,784r 7,868 7,967 7,472 7,771 23 Other 221 1,261 265 224 210 183 203 229 256 237 24 Other Federal Reserve liabilities and capital 18,618 17,256 18,101 18,347 18,372 18,284 17,587 18,019 18,187 18,363 25 Reserve balances with Federal Reserve Banks 7,076 15,498 8,484 5,437 5,716r 8,753 1,240 9,200 6,575 11,697 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 Financial Statistics • April 2000 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1997 1998 1999 1999 2000 Dec. Dec. Dec.1" July Aug. Sept. Oct. Nov. Dec.r Jan. 1 Reserve balances with Reserve Banks2 10,664 9,021 5,260 7,797 7,802 7,698 6,768 6,285 5,260 5,221 2 Total vault cash3 44,742r 44,293r 60,499 44,080r 44,603r 44,447r 47,030r 50,754r 60,499 73,898 3 Applied vault cash4 37,255 35,997 36,384 34,005 34,069 34,089 33,933 34,660 36,384 39,262 4 Surplus vault cash5 7,486r 8,296r 24,116 10,075r 10,533r 10,359r 13,096r 16,094r 24,116 34,636 5 Total reserves6 47,920 45,018 41,643 41,802 41,871 41,787 40,702 40,944 41,643 44,483 16 E R x eq ce u s i s r ed re s r e e r s v e e r v b e a s lances at Reserve Banks7 46 1 , , 2 6 3 8 5 5 43 1 , , 4 5 3 8 5 3 40 1 , , 3 3 3 1 2 1 40 1 , , 7 0 2 7 6 6 40 1 , , 7 1 4 2 2 9 40 1 , , 5 1 9 9 0 7 39 1 , , 5 1 4 5 9 3 39 1 , , 6 3 1 3 0 4 40 1 , , 3 3 3 1 2 1 42 2 , , 4 0 6 2 2 1 8 Total borrowing at Reserve Banks 324 117 320 309 344 338 281 236 320 374 9 Adjustment 245 101 179 83 72 56 52 157 179 296 10 Seasonal 79 15 67 226 271 282 221 71 67 31 11 Special Liquidity Facility8 74 0 8 7 74 46 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 Oct. 6 Oct. 20 Nov. 3 Nov. 17 Dec. 1 Dec. 15 Dec. 29r Jan.12r Jan. 26 Feb. 9 1 Reserve balances with Reserve Banks2 7,380 6,544 6,721 6,524 5,927 5,434 4,888 6,308 4,645 4,224 2 Total vault cash3 45,234r 47,357r 47,593r 49,519r 52,813r 56,693r 63,663 68,851 75,759 80,804 3 Applied vault cash4 33,636 33,998 34,014 34,046 35,470 35,346 37,329 37,491 40,301 40,605 4 Surplus vault cash5 ll,598r 13,359r 13,579r 15,474r 17,343r 21,347r 26,334 31,360 35,458 40,199 5 Total reserves6 41,016 40,542 40,735 40,569 41,397 40,780 42,217 43,799 44,946 44,829 6 Required reserves 39,524 39,408 39,742 39,196 40,027 39,682 40,956 40,674 43,548 43,712 7 Excess reserve balances at Reserve Banks7 1,491 1,133 993 1,373 1,370 1,098 1,261 3,125 1,397 1,117 8 Total borrowing at Reserve Banks 385 265 246 329 133 181 425 657 224 114 9 Adjustment 91 21 72 263 64 94 222 530 180 62 10 Seasonal 294 244 153 62 62 61 79 38 28 27 11 Special Liquidity Facility8 1 1 22 5 7 27 124 90 17 25 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 credit Seasonal credit Extended credir Special Liquidity Facility credit4 Federal Reserve Bank On Previous On Effective Previous On Effective Previous On Effective 3/10/00 rate 3/10/00 date rate 3/10/00 date rate 3/10/00 date Boston 2/2/00 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 years (or F.R. Bank (or F.R. Bank Range (or level)—All of level)—All of level)—All F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks 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 1 7 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 1 8 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 March 10,2000 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 2 9 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 8 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 3.5^1.5 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 3 0 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 Financial Statistics • April 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 11/2 years was reduced from 3 percent to 1 Vi 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 Vi 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 '/2 as of June 30 of each year. Effective with the reserve maintenance period beginning years or more has been zero since Oct. 6, 1983. December 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 '/i years (see note 5). Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1999 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,147 3,550 0 0 0 0 00 00 00 00 7 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 435,907 450,835 464,218 35,045 42,037 37,052 42,643 35,844 36,882 42,468 4 For new bills 435,907 450,835 464,218 35,045 42,037 37,052 42,643 35,844 36,882 42,468 5 Redemptions 0 2,000 0 0 0 0 0 0 0 0 Others within one year Gross purchases 5,549 6,297 11,895 880 951 429 960 0 964 1,450 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 41,716 46,062 50,590 2,740 3,279 7,669 3,468 3,831 6,675 3,936 9 Exchanges -27,499 -49,434 -53,315 -5,540 -368 -10,798 -2,125 -368 -10,150 -2,175 10 Redemptions 1,996 2,676 1,429 0 41 0 0 170 0 0 One to five years 11 Gross purchases 20,080 12,901 19,731 948 0 1,272 0 0 1,014 3,514 n1? M Gr a o t s u s r it s y a le s s h ifts -37,987 0 -37,777 0 -44,032 0 -2,740 0 -3,279 0 -4,751 0 -3,468 0 -3,831 0 -3,685 0 -3,936 0 14 Exchanges 20,274 37,154 42,604 5,540 0 8,433 2,125 0 8,015 2,175 Five to ten years is Gross purchases 3,449 2,294 4,303 65 0 447 0 0 0 581 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -1,954 -5,908 -5,841 0 0 -2,918 0 0 -2,273 0 18 Exchanges 5,215 7,439 7,583 0 373 1,290 0 0 2,135 0 More than ten years 19 Gross purchases 5,897 4,884 9,428 0 0 1,075 0 0 925 1,257 70 Gross sales 0 0 0 0 0 0 0 0 0 0 71 Maturity shifts -1,775 -2,377 -717 0 0 0 0 0 -717 00 22 Exchanges 2,360 4,842 3,139 0 0 1,075 0 374 0 All maturities 23 Gross purchases 44,122 29,926 45,357 1,893 951 3,223 960 0 2,903 6,802 74 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 0 41 0 0 170 0 0 Matched transactions 76 Gross purchases 3,577,954 4,395,430 4,395,998 380,872 347,067 374,032 348,014 332,708 317,537 488,845 27 Gross sales 3,580,274 4,399,330 4,414,253 380,464 346,747 373,159 350,151 330,856 318,294 510,605 Repurchase agreements 78 Gross purchases 810,485 512,671 281,599 17,710 27,707 23,097 2299,,336699 110000 00 00 29 Gross sales 809,268 514,186 301,273 14,614 33,612 23,717 24,337 7,707 0 0 30 Net change in U.S. Treasury securities 41,022 19,835 5,999 5,397 -4,675 3,476 3,855 -5,924 2,146 -14,959 FEDERAL AGENCY OBLIGATIONS Outright transactions 00 31 Gross purchases 0 0 0 0 0 0 00 00 00 3? Gross sales 0 25 0 0 0 0 0 0 0 0 33 Redemptions 1,540 322 157 52 10 11 0 50 7 0 Repurchase agreements 34 Gross purchases 160,409 284,316 360,069 32,786 46,941 61,968 5533,,222244 99,,663366 00 00 35 Gross sales 159,369 276,266 370,772 32,104 48,840 56,053 47,963 24,092 0 0 36 Net change in federal agency obligations -500 7,703 -10,859 630 -1,909 5,904 5,261 -14,506 -7 0 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 4 3 0 9 G G r r o o s s s s p sa u l r e c s h ases 0 0 0 0 3 1 0 6 4 4 , , 9 3 8 4 9 9 0 0 00 0 0 00 0 66 4 88 5 ,, , 00 5 66 0 11 1 88 5 11 4 ,, , 33 4 55 7 00 0 11 6 55 4 55 , ,, 3 55 7 77 8 88 0 41 Net change in triparty obligations 0 0 140,640 0 0 0 22,560 26,880 91,200 42 Total net change in System Open Market Account... 40,522 27,538 135,780 6,028 -6,584 9,380 9,116 2,130 29,019 76,241 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 NonfinancialS tatistics • April 2000 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 1999 2000 1999 2000 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Nov. 30 Dec. 31 Jan. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,048 11.048 11,048 11,048 11,048 11,049 11,048 11,048 2 Special drawing rights certificate account 6,200 6,200 6,200 6,200 6,200 7,200 6,200 6,200 3 203 200 238 292 325 237 207 357 Loans 4 To depository institutions 2,872 180 1,001 171 198 78 233 130 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 122,870 91,645 62,895 34,610 25,105 49,440 140,640 23,105 Federal agency obligations3 8 Bought outright 181 181 181 181 175 181 118811 175 y Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 483,417 486,948 485,719 496,110 499,138 492,910 477,963 500,228 ii Bought outright4 483,417 486,948 485,719 496,110 499,138 492,910 477,963 500,228 P Bills 181,973 185,502 184,272 195,052 197,111 198,278 176,517 197,131 13 218,466 218,468 218,468 218,079 219,012 213,270 218,467 219,013 14 Bonds 82,978 82,978 82,979 82,979 83,015 81,362 82,978 84,084 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 609,340 578,955 549,795 531,072 524,617 542,609 619,017 523,638 17 Items in process of collection 6,925 8,359 7,927 13,894 17,122 9,245 6,524 4,511 18 Bank premises 1,356 1,366 1,366 1,367 1,366 1,353 1,365 1,365 Other assets 19 Denominated in foreign currencies 16,176 16,142 16,147 16.151 16,155 16,292 16,140 15,528 20 All other6 17,657 17,586 17,949 17,996 18,307 15,297 17,294 17,949 21 Total assets 668,906 639,857 610,672 598,020 595,140 603,282 677,795 580,597 LIABILITIES 22 Federal Reserve notes 600,921 588,939 562,141 550,063 541,807 555,595 600,662 538,768 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 43,069 25,558 23,050 18,706 28,592 20,517 53,760 21,789 25 Depository institutions 16,729 10,139 17,259 14,654 19,494 14,771 24,027 15,322 26 U.S. Treasury—General account 25,923 15,134 5,454 3,716 8,780 5,025 28,402 6,119 27 Foreign—Official accounts 234 82 110 80 81 501 71 82 28 Other 183 203 229 256 237 221 1,261 265 79 Deferred credit items 6,632 7,772 7,461 11,064 6,379 8,552 6,117 1,939 30 Other liabilities and accrued dividends7 4,478 4,261 4,515 4,514 4,465 4,600 4,392 4,461 31 Total liabilities 655,099 626,530 597,168 584,347 581,243 589,265 664,931 566,957 CAPITAL ACCOUNTS 3? Capital paid in 6,432 6,442 6,442 6,643 6,648 6,372 6,432 6,650 33 Surplus 5,952 6.432 6,432 6,432 6,432 5,952 6,432 6,314 34 Other capital accounts 1,422 453 630 598 818 1,694 0 676 35 Total liabilities and capital accounts 668,906 639,857 610,672 598,020 595,140 603,282 677,795 580,597 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) 822,441 821,111 818,717 815,736 811,652 825,379 821,959 809,367 38 LESS: Held by Federal Reserve Banks 221,520 232,172 256,576 265,673 269,846 269,785 221,297 270,599 39 Federal Reserve notes, net 600,921 588,939 562,141 550,063 541,807 555,595 600,662 538,768 Collateral held against notes, net 40 Gold certificate account 11,048 11,048 11,048 11,048 11,048 11,049 11,048 11,048 41 Special drawing rights certificate account 6,200 6,200 6,200 6,200 6,200 7,200 6,200 6,200 42 Other eligible assets 0 0 0 1,914 140 0 0 0 43 U.S. Treasury and agency securities 583,673 571,691 544.893 530,901 524,418 537,346 583,414 521,520 44 Total collateral 600,921 588,939 562,141 550,063 541,807 555,595 600,662 538,768 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 2000 1999 2000 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Nov. 30 Dec. 31 Jan. 31 1 Total loans 2,872 181 1,001 171 198 78 233 130 2 Within fifteen days' 2,851 130 960 159 175 46 207 101 3. Sixteen days to ninety days 10 40 41 13 23 31 20 29 4. 91 days to 1 year 11 12 0 0 0 7 0 5 Total U.S. Treasury securities2 483,417 486,948 485,719 496,110 499,138 492,910 477,963 500,228 6 Within fifteen days1 15,634 19,687 14,511 15,541 16,070 8,277 4,632 20,547 7 Sixteen days to ninety days 83,448 89,363 88,470 98,302 100,111 102,802 91,919 100,224 8 Ninety-one days to one year 141,030 136,351 141,191 141,916 141,636 143,889 139,866 136,588 9 One year to five years 125,929 124,169 124,169 124,169 124,330 122,413 124,169 124,808 10 Five years to ten years 51,106 51,107 51,107 49,910 50,720 50,520 51,107 50,720 11 More than ten years 66,270 66,270 66,271 66,271 66,271 65,010 66,270 67,340 12 Total federal agency obligations 181 181 181 181 175 181 181 175 13 Within fifteen days1 0 0 6 6 25 0 0 25 14 Sixteen days to ninety days 31 31 35 35 10 31 31 10 15 Ninety-one days to one year 20 20 10 10 10 20 20 10 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 Financial Statistics • April 2000 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 2000 IItteemm 1996 1997 1998 1999r Dec. Dec. Dec. Dec. June July Aug. Sept. Oct. Nov. Dec.r Jan. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 50.16 46.86 44.90 41.52 42.87 41.98 42.07 42.11 40.94 41.20 41.52 43.32 2 Nonborrowed reserves4 50.01 46.54 44.79 41.20 42.72 41.67 41.72 41.77 40.66 40.96 41.20 42.95 3 Nonborrowed reserves plus extended credit5 50.01 46.54 44.79 41.20 42.72 41.67 41.72 41.77 40.66 40.96 41.20 42.95 4 Required reserves 48.75 45.18 43.32 40.21 41.61 40.90 40.94 40.92 39.79 39.86 40.21 41.30 5 Monetary base6 451.61r 479.16r 512.59r 590.82 537.15r 541.25r 544.63r 550.22r 557.74r 569.73r 590.82 591.37 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.12 41.72 42.43 41.85 41.92 41.85 40.77 41.02 41.72 44.47 7 Nonborrowed reserves 51.30 47.69 45.00 41.40 42.29 41.54 41.58 41.51 40.49 40.78 41.40 44.10 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.00 41.40 42.29 41.54 41.58 41.51 40.49 40.78 41.40 44.10 9 Required reserves8 50.04 46.33 43.54 40.41 41.17 40.77 40.79 40.65 39.62 39.68 40.41 42.45 10 Monetary base9 456.63 484.98 518.28 600.45 535.88 540.98 543.87 548.13 555.51 571.891 600.45 596.92 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 51.17 47.92 45.02 41.64 42.39 41.80 41.87 41.79 40.70 40.94 41.64 44.48 12 Nonborrowed reserves 51.02 47.60 44.90 41.32 42.25 41.49 41.53 41.45 40.42 40.71 41.32 44.11 13 Nonborrowed reserves plus extended credit5 51.02 47.60 44.90 41.32 42.25 41.49 41.53 41.45 40.42 40.71 41.32 44.11 14 Required reserves 49.76 46.24 43.44 40.33 41.13 40.73 40.74 40.59 39.55 39.61 40.33 42.46 15 Monetary base12 463.40 491.79 525.06 607.92 542.82 548.07 550.86 555.19 562.64 579.02r 607.92 604.66 16 Excess reserves13 1.42 1.69 1.58 1.31 1.26 1.08 1.13 1.20 1.15 1.33 1.31 2.02 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .15 .31 .34 .34 .28 .24 .32 .37 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 1999r 2000 1996r 1997r 1998r 1999r IItteemm Dec. Dec. Dec. Dec. Oct. Nov. Dec. Jan. Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,125.4 1,101.2 1,110.2 1,125.4 1,121.9 2 M2 3,822.9 4,040.8 4,397.0 4,661.1 4,612.1 4,632.2 4,661.1 4,684.4 3 M3 4,952.4 5,402.2 5,997.0 6,471.5 6,311.4 6,388.1 6,471.5 6,513.6 4 Debt 14,463.6 15,227.9 16,250.4 17,323.0 17,154.1 17,223.2 17,323.0 n.a. Ml components 5 Currency3 394.3 424.8 459.5 517.5 499.8 505.5 517.5 552255..44 6 Travelers checks 8.3 8.1 8.2 8.3 8.4 8.2 8.3 8.2 7 Demand deposits5 402.3 395.3 379.3 356.0 353.1 355.7 356.0 345.5 8 Other checkable deposits 276.1 245.8 250.3 243.7 239.9 240.9 243.7 242.7 Nontransaction components 9 In M27 2,741.8 2,966.9 3,299.6 3,535.7 3,510.9 3,522.0 3,535.7 3,562.5 10 In M3 only8 1,129.5 1,361.3 1,599.9 1,810.4 1,699.3 1,756.0 1,810.4 1,829.2 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.2 1,289.7 1,288.7 1,285.2 1,287.5 12 Small time deposits9 593.3 625.4 626.1 634.2 626.4 630.5 634.2 638.4 13 Large time deposits10' 11 413.9 488.3 539.3 614.9 565.5 593.5 614.9 620.9 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.8 453.2 451.6 448.8 447.3 15 Small time deposits9 353.6 342.8 325.6 320.0 316.3 318.4 320.0 322.2 16 Large time deposits10 78.3 85.6 88.9 91.6 89.6 91.1 91.6 94.4 Money market mutual funds 17 Retail 524.4 601.7 749.4 847.6 825.4 832.7 847.6 886677..00 18 Institution-only 312.0 380.8 518.4 607.4 577.7 592.1 607.4 623.5 Repurchase agreements and Eurodollars 19 Repurchase agreements12 210.7 256.0 300.9 329.2 312.7 318.7 332299..22 332200..88 20 Eurodollars12 114.6 150.7 152.6 167.2 153.8 160.5 167.2 169.6 Debt components 21 Federal debt 3,781.3 3,800.3 3,750.8 3,658.9 3,680.1 3,656.5 3,658.9 n.a. 22 Nonfederal debt 10,682.3 11,427.6 12,499.6 13,664.1 13,473.9 13,566.7 13,664.1 n.a. Not seasonally adjusted Measures2 23 Ml 1,105.1 1,097.7 1,121.3 1,149.9 1,095.1 1,113.7 1,149.9 1,128.6 24 M2 3,845.1 4,063.9 4,422.2 4,689.4 4,597.4 4,634.5 4,689.4 4,694.9 25 M3 4,973.4 5,426.1 6,026.5 6,506.6 6,290.8 6,399.7 6,506.6 6,529.8 26 Debt 14,460.3 15,224.9 16,247.3 17,323.5 17,103.3 17,202.1 17,323.5 n.a. Ml components 27 Currency3 397.9 428.9 464.1 523.1 498.9 506.3 523.1 524.2 28 Travelers checks4 8.6 8.3 8.4 8.4 8.4 8.3 8.4 8.4 29 Demand deposits5 419.9 412.4 395.9 372.0 350.5 359.0 372.0 350.2 30 Other checkable deposits6 278.8 248.2 252.8 246.4 237.4 240.0 246.4 245.8 Nontransaction components 31 In M27 2,740.0 2,966.3 3,300.9 3,539.5 3,502.2 3,520.8 3,539.5 3,566.3 32 In M3 only8 1,128.2 1,362.2 1,604.3 1,817.2 1,693.5 1,765.2 1,817.2 1,834.9 Commercial banks 33 Savings deposits, including MMDAs 903.3 1,020.4 1,186.0 1,288.0 1,285.1 1,288.4 1,288.0 1,285.7 34 Small time deposits9 592.7 625.3 626.5 635.0 627.4 632.0 635.0 640.0 35 Large time deposits10, 11 413.2 487.2 537.8 613.0 569.8 596.6 613.0 611.9 Thrift institutions 36 Savings deposits, including MMDAs 366.3 376.5 414.2 449.8 451.5 451.5 449.8 446.7 37 Small time deposits9 353.2 342.8 325.8 320.4 316.8 319.1 320.4 323.0 38 Large time deposits10 78.1 85.4 88.6 91.3 90.3 91.6 91.3 93.0 Money market mutual funds 39 Retail 524.3 601.3 748.3 846.3 821.4 829.7 846.3 870.9 40 Institution-only 315.6 386.7 527.9 618.9 570.9 595.1 618.9 638.2 Repurchase agreements and Eurodollars 41 Repurchase agreements12 205.7 250.5 295.5 324.6 310.1 321.3 324.6 321.0 42 Eurodollars12 115.7 152.3 154.5 169.3 152.4 160.7 169.3 170.8 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,662.5 3,635.4 3,641.4 3,662.5 n.a. 44 Nonfederal debt 10,672.4 11,419.2 12,492.3 13,661.0 13,467.9 13,560.7 13,661.0 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • April 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 Aifairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and seasonally adjusted Ml. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars subtracted from small time deposits. (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those at all banking offices in the United Kingdom and Canada. Excludes amounts held by booked at international banking facilities. depository institutions, the U.S. government, money market funds, and foreign banks and 11. Large time deposits at commercial banks less those held by money market funds, official institutions. Seasonally adjusted M3 is calculated by summing large time deposits, depository institutions, the U.S. government, and foreign banks and official institutions. institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted 12. Includes both overnight and term. separately, and adding this result to seasonally adjusted M2. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors—the federal sector (U.S. government, not including government-sponsored enter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Seasonally adjusted Assets 1 Bank credit 4,539.5 4,550.0 4,583.0 4,607.7 4,636.7 4,704.1 4,783.6 4,797.7 4,773.6 4,794.9 4,796.6 4,809.2 2 Securities in bank credit 1.217.2 1,227.2 1,242.4 1,246.6 1,253.4 1,249.1 1,267.9 1,261.4 1,260.7 1,262.2 1,261.1 1,265.8 3 U.S. government securities 796.0 814.4 820.1 817.7 812.7 798.9 803.9 807.0 801.2 807.4 805.7 812.6 4 Other securities 421.2 412.8 422.3 428.9 440.7 450.3 463.9 454.4 459.5 454.8 455.4 453.2 5 Loans and leases in bank credit2 .. . 3,322.3 3,322.8 3,340.6 3,361.1 3,383.3 3,455.0 3,515.7 3,536.3 3,512.9 3,532.7 3,535.5 3,543.4 6 Commercial and industrial 952.4 965.1 972.5 980.4 985.8 1,005.5 1,007.9 1,011.6 999.1 1,007.1 1,012.6 1,017.3 7 Real estate 1,345.1 1,366.8 1,379.1 1,395.8 1,418.4 1,433.0 1,471.0 1,490.7 1,483.1 1,490.0 1,494.9 1,489.5 8 Revolving home equity 102.3 98.0 98.7 98.5 99.1 100.6 106.1 109.6 108.3 109.2 109.5 110.0 9 Other 1,242.9 1,268.7 1,280.5 1,297.3 1,319.3 1,332.3 1,365.0 1,381.2 1,374.9 1,380.8 1,385.3 1,379.5 10 Consumer 499.8 481.2 480.2 481.1 481.5 485.1 495.6 502.9 500.1 500.0 501.8 506.4 11 Security3 146.4 122.4 122.4 116.2 111.0 134.0 155.4 146.7 147.6 153.1 143.0 143.8 12 Other loans and leases 378.5 387.3 386.4 387.6 386.5 397.5 385.7 384.2 382.9 382.5 383.3 386.4 13 Interbank loans 223.0 224.3 215.0 207.9 218.6 214.3 218.4 214.7 209.5 208.9 208.7 226.6 14 Cash assets4 258.8 259.0 253.7 264.0 271.2 277.7 292.2 285.0 283.5 292.2 288.7 284.3 15 Other assets5 353.5 347.0 344.9 355.3 358.1 366.0 370.9 386.7 378.6 389.2 389.1 387.2 16 Total assets6 5,316.8 5,322.2 5,338.0 5,375.7 5,425.4 5,502.7 5,605.0 5,624.7 5,584.8 5,625.4 5,624.2 5,648.2 Liabilities 17 Deposits 3.365.5 3,389.8 3,384.3 3,394.9 3,435.0 3,479.8 3,531.1 3,551.3 3,530.3 3,546.4 3,562.8 3,549.3 18 Transaction 665.4 648.6 635.9 634.0 631.1 623.9 630.7 622.9 594.3 614.2 641.4 641.3 19 Nontransaction 2,700.2 2,741.2 2,748.4 2,760.8 2,803.9 2,855.9 2,900.3 2,928.4 2,936.0 2,932.3 2,921.4 2,908.0 20 Large time 724.3 721.1 717.9 728.3 766.8 804.6 835.1 847.6 852.1 851.3 844.1 841.4 21 Other 1,975.9 2,020.2 2,030.4 2,032.6 2,037.1 2,051.3 2,065.2 2,080.8 2,083.8 2,080.9 2,077.3 2,066.5 22 Borrowings 1,005.1 1,021.0 1,028.1 1,047.6 1,051.0 1,065.9 1,126.5 1,133.5 1,138.9 1,149.7 1,115.5 1,132.7 23 From banks in the U.S 315.6 337.1 336.5 340.6 351.0 352.7 349.8 362.3 360.7 360.3 357.2 370.0 24 From others 689.5 683.9 691.7 707.0 700.0 713.2 776.7 771.2 778.2 789.4 758.3 762.7 25 Net due to related foreign offices 213.2 217.0 222.5 218.3 219.7 226.1 221.5 227.7 230.1 220.8 234.7 232.3 26 Other liabilities 305.4 273.7 279.6 282.6 289.8 295.6 297.8 282.5 283.9 284.2 276.7 276.6 27 Total liabilities 4,889.2 4,901.6 4,914.6 4,943.4 4,995J 5,067.5 5,176.9 5,195.0 5,183.1 5,201.2 5,189.6 5,190.8 28 Residual (assets less liabilities)7 427.5 420.6 423.4 432.3 429.9 435.2 428.1 429.6 401.8 424.2 434.6 457.4 Not seasonally adjusted Assets 29 Bank credit 4,548.5 4,534.0 4,561.9 4,597.8 4,641.3 4,718.2 4,799.9 4,807.8 4,795.3 4,808.2 4,808.4 4,807.3 30 Securities in bank credit 1,219.7 1,216.0 1,229.5 1,235.4 1,250.0 1,255.6 1,271.9 1,266.3 1,266.9 1,267.9 1,264.4 1,268.2 31 U.S. government securities 796.3 806.6 808.3 807.5 807.1 801.0 805.2 808.3 802.3 808.6 806.2 812.3 32 Other securities 423.4 409.5 421.2 427.9 442.9 454.5 466.7 458.1 464.6 459.2 458.3 455.8 33 Loans and leases in bank credit2 . .. 3,328.7 3,317.9 3,332.4 3,362.4 3,391.3 3,462.6 3,528.0 3,541.5 3,528.5 3,540.3 3,544.0 3,539.1 34 Commercial and industrial 951.3 962.7 963.8 976.5 986.9 1,005.5 1,007.0 1,009.8 1,001.7 1,003.5 1,010.5 1,013.2 35 Real estate 1,344.2 1,367.8 1,381.7 1,399.4 1,422.1 1,437.7 1,473.5 1,490.1 1,482.7 1,492.1 1,495.6 1,486.6 36 Revolving home equity 102.3 97.9 98.9 99.2 99.8 101.5 106.5 109.6 108.5 109.3 109.6 110.0 37 Other 1,241.8 1,269.9 1,282.9 1,300.2 1,322.3 1,336.2 1,367.0 1,380.5 1,374.2 1,382.8 1,385.9 1,376.7 38 Consumer 506.0 478.8 481.3 484.1 482.2 485.3 500.5 508.7 506.9 506.8 507.9 511.8 39 Security3 146.5 120.4 118.7 112.8 111.9 135.4 157.5 146.6 146.5 153.6 143.4 142.8 40 Other loans and leases 380.8 388.2 386.9 389.5 388.2 398.6 389.4 386.3 390.7 384.2 386.7 384.7 41 Interbank loans 225.9 218.1 207.3 204.4 215.2 220.9 224.9 216.0 216.1 212.1 212.0 220.9 42 Cash assets4 271.8 251.2 243.4 261.3 271.5 285.0 309.0 298.5 310.2 299.2 323.3 282.8 43 Other assets5 346.1 349.7 347.7 357.4 355.5 364.5 371.8 378.6 376.5 377.1 378.8 376.0 44 Total assets6 5,334.7 5,294.8 5301.4 5361.4 5,424.2 5,528.9 5,645.4 5,641.9 5,638.2 5,637.2 5,664.0 5,628.1 Liabilities 45 Deposits 3,364.8 3,373.5 3,370.4 3,393.5 3.437.5 3,506.2 3,563.4 3,549.0 3,573.0 3,554.6 3,573.5 3,503.2 46 Transaction 680.2 637.9 619.6 628.2 622.9 633.6 663.3 637.0 643.5 630.3 668.6 624.3 47 Nontransaction 2,684.7 2,735.6 2,750.8 2,765.3 2,814.6 2,872.6 2,900.2 2,911.9 2,929.5 2,924.3 2,904.9 2,878.9 48 Large time 722.4 714.4 715.3 729.7 768.4 809.8 841.0 845.4 850.6 850.0 840.3 839.7 49 Other 1,962.3 2,021.3 2,035.5 2,035.5 2,046.3 2,062.8 2,059.2 2,066.6 2,078.9 2,074.4 2,064.6 2,039.2 50 Borrowings 1,021.3 1,011.7 1,004.7 1,042.5 1.053.7 1,072.9 1,129.1 1,152.1 1,137.3 1,152.9 1,148.4 1,164.0 51 From banks in the U.S 320.6 332.5 329.3 336.9 348.7 357.1 356.2 368.1 362.5 362.9 367.4 378.1 52 From others 700.7 679.2 675.3 705.6 705.1 715.8 772.9 784.0 774.8 790.0 781.0 786.0 53 Net due to related foreign offices .... 216.1 209.2 217.4 214.3 221.4 227.8 227.1 230.6 221.8 219.5 235.2 251.2 54 Other liabilities 306.3 272.9 279.6 281.6 288.4 295.8 298.6 283.4 284.7 284.8 276.9 277.8 55 Total liabilities 4,908.6 4,8673 4,872.1 4,931.8 5,001.0 5,102.7 5,218.2 5,215.0 5,216.8 5,211.8 5,234.0 5,196.1 56 Residual (assets less liabilities)7 426.1 427.5 429.4 429.6 423.2 426.3 427.2 426.9 421.4 425.4 430.0 432.0 MEMO 57 Revaluation gains on off-balance-sheet items8 112.7 92.0 96.5 98.5 100.3 100.4 104.3 101.1 101.3 99.2 100.5 100.3 58 Revaluation losses on off-balancesheet items8 110.0 92.6 98.8 97.3 98.1 99.2 102.6 99.7 99.2 97.8 98.7 98.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • April 2000 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Seasonally adjusted Assets 1 Bank credit 3,956.3 4,027.2 4,058.9 4,088.5 4,108.9 4,155.5 4,227.1 4,250.1 4,225.3 4,248.5 4,251.2 4,254.7 2 Securities in bank credit 1,005.5 1,036.7 1,052.3 1,057.1 1,060.2 1,051.2 1,062.3 1,064.0 1,060.0 1,063.9 1,064.0 1,067.3 3 U.S. government securities 710.0 728.2 736.0 735.9 730.6 719.2 722.1 727.8 720.8 727.6 727.7 732.0 4 Other securities 295.5 308.6 316.3 321.2 329.6 332.1 340.1 336.3 339.2 336.3 336. 335.3 5 Loans and leases in bank credit2 2,950.8 2,990.5 3,006.6 3,031.4 3,048.8 3,104.3 3,164.8 3,186.0 3,165.2 3,184.6 3,187.2 3,187.5 6 Commercial and industrial 738.6 771.8 777.0 783.3 786.9 804.6 812.3 815.8 805.8 812.4 815.9 820.4 7 Real estate 1,323.7 1,348.2 1,361.5 1,378.2 1,400.6 1,415.6 1,453.7 1,473.2 1,466.0 1,472.6 1,477.3 1,471.7 8 Revolving home equity 102.3 98.0 98.7 98.5 99.1 100.6 106.1 109.6 108.3 109.2 109.5 110.0 9 Other 1,221.4 1,250.2 1,262.8 1,279.7 1,301.5 1,314.9 1,347.6 1,363.6 1,357.7 1,363.4 1,367.8 1,361.7 10 Consumer 499.8 481.2 480.2 481.1 481.5 485.1 495.6 502.9 500.1 500.0 501.8 506.4 11 Security3 83.0 69.6 67.5 64.7 56.2 68.7 88.5 80.0 81.1 88.5 78.2 72.7 12 Other loans and leases 305.6 319.6 320.4 324.0 323.5 330.3 314.8 314.1 312.2 311.1 314.0 316.3 13 Interbank loans 193.6 196.8 189.3 185.0 195.7 191.5 192.9 188.5 182.3 182.3 185.1 200.8 14 Cash assets4 222.6 222.6 214.3 221.7 225.5 225.5 235.6 230.0 226.8 234.1 233.3 230.4 15 Other assets5 315.0 314.8 315.9 326.0 326.3 331.2 333.3 347.2 341.1 350.0 347.9 347.8 16 Total assets6 4,629.8 4,703.5 4,720.1 4,762.3 4,797.4 4,844.4 4,929.1 4,956.5 4,915.5 4,955.5 4,958.8 4,974.8 Liabilities 17 Deposits 3,048.5 3,080.7 3,075.4 3,084.0 3,102.8 3,120.9 3,152.3 3,163.1 3,138.3 3,151.2 3,178.0 3,166.0 18 Transaction 653.5 637.7 624.9 623.2 619.6 612.6 619.2 611.7 583.9 603.1 630.2 629.8 19 Nontransaction 2,395.0 2,443.0 2,450.5 2,460.8 2,483.2 2,508.3 2,533.0 2,551.3 2,554.4 2,548.1 2,547.8 2,536.2 20 Large time 420.2 425.7 424.0 433.4 447.9 458.8 468.6 471.9 472.4 469.1 471.4 470.7 21 Other 1,974.8 2,017.3 2,026.4 2,027.4 2,035.3 2,049.4 2,064.4 2,079.4 2,082.0 2,079.0 2,076.4 2,065.5 22 Borrowings 810.6 846.2 853.4 876.0 873.4 879.6 945.3 952.1 961.3 968.5 933.9 949.2 23 From banks in the U.S 294.4 312.7 312.9 315.4 328.2 325.7 324.4 339.4 337.8 338.8 334.3 346.4 24 From others 516.1 533.5 540.5 560.6 545.3 553.9 621.0 612.7 623.6 629.7 599.6 602.8 25 Net due to related foreign offices .... 111.8 145.2 150.5 152.2 166.3 182.2 182.6 194.5 191.9 189.8 198.2 197.5 26 Other liabilities 230.5 211.0 218.0 218.0 224.1 228.3 227.4 214.8 218.4 217.0 209.7 209.1 27 Total liabilities 4,201.3 4,283.1 4,297.3 4,330.2 4,366.5 4,411.1 4,507.5 4,524.4 4,509.8 4,526.6 4,519.8 4,521.8 28 Residual (assets less liabilities)7 428.5 420.5 422.8 432.2 430.9 433.4 421.6 432.1 405.6 428.9 439.0 453.0 Not seasonally adjusted Assets 29 Bank credit 3,961.8 4,014.4 4,041.6 4,079.5 4,109.5 4,166.4 4,240.2 4,256.7 4,240.2 4,258.0 4,260.3 4,252.3 30 Securities in bank credit 1,007.8 1,027.2 1,040.7 1,046.6 1,054.0 1,054.6 1,067.2 1,068.5 1,065.8 1,068.6 1,067.8 1,070.0 31 U.S. government securities 710.6 720.8 725.2 726.7 725.0 720.9 723.1 729.3 722.0 728.6 728.5 733.1 32 Other securities 297.2 306.4 315.5 319.9 329.0 333.6 344.1 339.2 343.8 340.0 339.2 337.0 33 Loans and leases in bank credit2 2,954.0 2,987.2 3,000.9 3,032.9 3,055.5 3,111.9 3,173.0 3,188.2 3,174.4 3,189.4 3,192.6 3,182.3 34 Commercial and industrial 735.6 770.2 770.1 779.7 786.9 803.4 808.7 812.3 804.7 806.9 812.4 815.5 35 Real estate 1,322.6 1,349.4 1,364.2 1,381.8 1,404.1 1,420.1 1,456.1 1,472.4 1,465.3 1,474.6 1,477.8 1,468.7 36 Revolving home equity 102.3 97.9 98.9 99.2 99.8 101.5 106.5 109.6 108.5 109.3 109.6 110.0 37 Other 1,220.2 1,251.6 1,265.3 1,282.6 1,304.3 1,318.6 1,349.7 1,362.8 1,356.9 1,365.2 1,368.2 1,358.8 38 Consumer 506.0 478.8 481.3 484.1 482.2 485.3 500.5 508.7 506.9 506.8 507.9 511.8 39 Security3 83.2 68.0 63.7 61.2 57.3 70.9 90.2 80.0 79.5 89.3 78.4 72.4 40 Other loans and leases 306.6 320.8 321.7 326.0 324.9 332.1 317.5 314.9 318.1 311.8 316.0 313.9 41 Interbank loans 196.5 190.5 181.6 181.5 192.2 198.1 199.4 189.8 188.9 185.5 188.4 195.0 42 Cash assets4 235.2 214.9 204.3 219.2 225.2 232.0 249.9 242.8 251.8 240.2 266.9 228.6 43 Other assets' 307.3 318.2 318.1 327.7 323.8 329.5 332.7 338.7 338.4 337.2 337.7 336.7 44 Total assets6 4,643.5 4,680.1 4,687.0 4,748.8 4,791.8 4,866.7 4,962.4 4,969.2 4,959.6 4,961.7 4,995.1 4,954.1 Liabilities 45 Deposits 3,050.4 3,066.9 3,064.1 3,083.0 3,105.3 3,147.8 3,180.3 3,163.9 3,182.8 3,163.1 3,193.4 3,122.1 46 Transaction 668.2 627.1 608.7 616.8 611.4 622.4 651.4 625.8 632.6 619.2 657.2 613.0 47 Nontransaction 2,382.1 2,439.8 2,455.4 2,466.2 2,493.9 2,525.4 2,528.9 2,538.2 2,550.2 2,543.9 2,536.2 2,509.1 48 Large time 421.8 420.8 422.2 433.0 449.9 464.9 471.9 473.9 473.5 471.8 473.8 472.1 49 Other 1,960.3 2,019.0 2,033.2 2,033.3 2,044.0 2,060.5 2,057.0 2,064.2 2,076.7 2,072.1 2,062.3 2,036.9 50 Borrowings 826.8 836.9 829.9 870.9 876.2 886.6 948.0 970.7 959.8 971.7 966.8 980.6 51 From banks in the U.S 299.4 308.1 305.8 311.7 325.8 330.1 330.8 345.2 339.6 341.3 344.5 354.5 52 From others 527.3 528.8 524.2 559.2 550.3 556.5 617.2 625.5 620.2 630.4 622.3 626.1 53 Net due to related foreign offices .... 112.0 139.9 147.5 149.8 166.2 181.2 183.0 195.4 179.9 186.9 198.0 213.0 54 Other liabilities 231.1 211.1 217.7 217.3 223.2 227.6 226.7 215.5 219.2 217.8 210.1 209.6 55 Total liabilities 4,220.3 4,254.7 4,259.3 4,321.0 4,370.8 4,443.2 4,538.0 4,545.5 4,541.6 4,539.6 4,568.3 4,525.3 56 Residual (assets less liabilities)7 423.2 425.4 427.7 427.8 420.9 423.4 424.5 423.7 418.0 422.1 426.8 428.9 MEMO 57 Revaluation gains on off-balance-sheet items8 66.5 54.4 58.4 60.1 60.9 59.8 64.5 62.7 63.3 62.0 62.6 62.2 58 Revaluation losses on off-balancesheet items8 67.2 56.3 62.5 59.8 60.0 59.8 63.9 61.8 62.0 61.2 61.6 61.1 59 Mortgage-backed securities9 342.7 339.1 343.2 345.9 346.5 348.1 348.1 348.3 349.8 349.7 347.5 348.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Seasonally adjusted Assets 1 Bank credit 2,487.3 2,488.6 2,506.2 2,521.9 2,520.9 2,562.4 2,622.3 2,623.9 2,608.0 2,621.7 2,625.6 2,625.7 2 Securities in bank credit 577.3 583.9 597.5 600.6 601.5 597.5 610.4 606.9 605.8 606.4 607.5 608.5 3 U.S. government securities 389.3 391.3 399.0 397.3 391.2 385.2 391.6 391.4 387.6 391.3 391.8 394.1 4 Trading account 25.1 22.7 23.3 20.9 20.0 18.0 19.4 21.4 18.9 19.1 20.4 23.9 5 Investment account 364.3 368.6 375.8 376.4 371.2 367.2 372.2 370.0 368.7 372.2 371.5 370.2 6 Other securities 188.0 192.6 198.5 203.3 210.3 212.4 218.7 215.5 218.2 215.1 215.6 214.4 7 Trading account 91.4 73.6 77.5 78.1 81.7 82.4 87.1 81.8 84.9 80.7 80.2 80.4 8 Investment account 96.6 119.0 121.0 125.2 128.5 129.9 131.7 133.7 133.3 134.5 135.4 134.0 9 State and local government . 24.6 25.4 25.7 25.7 25.8 26.4 26.4 26.7 26.4 26.6 26.8 26.8 10 Other 71.9 93.5 95.3 99.5 102.7 103.5 105.3 107.0 106.8 107.9 108.6 107.1 11 Loans and leases in bank credit2 .. . 1,910.0 1,904.7 1,908.7 1,921.4 1,919.4 1,964.8 2,011.9 2,017.0 2,002.2 2,015.3 2,018.2 2,017.2 12 Commercial and industrial 547.9 569.6 573.1 576.5 574.4 589.2 595.5 594.8 586.8 591.5 595.1 598.8 13 Bankers acceptances 1.3 1.0 1.1 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 14 Other 546.6 568.6 572.0 575.3 573.2 588.1 594.4 593.8 585.7 590.4 594.0 597.8 15 Real estate 738.4 730.8 736.0 747.4 758.1 766.7 798.6 809.9 806.9 809.5 814.0 807.7 16 Revolving home equity 74.1 68.7 69.3 69.1 69.2 70.5 75.4 78.1 77.1 77.8 78.1 78.5 17 Other 664.3 662.1 666.7 678.3 689.0 696.2 723.2 731.8 729.8 731.7 735.9 729.2 18 Consumer 309.4 286.6 284.2 282.3 281.1 285.0 290.6 294.6 291.4 291.6 293.5 297.7 19 Security3 77.7 €4.7 62.6 59.8 51.3 63.3 83.2 75.0 76.1 83.4 73.1 67.8 20 Federal funds sold to and repurchase agreements with broker-dealers 61.8 47.0 45.4 42.2 34.2 45.2 63.4 53.9 58.1 61.1 5511..66 47.3 21 Other 15.9 17.8 17.2 17.6 17.0 18.1 19.8 21.1 18.1 22.3 21.5 20.4 22 State and local government 11.7 12.0 12.2 12.3 12.3 12.2 12.1 12.3 12.2 12.2 12.4 12.3 23 Agricultural 9.1 8.7 8.9 9.2 9.6 9.6 9.6 9.8 9.7 9.8 9.8 9.9 24 Federal funds sold to and repurchase agreements with others 13.4 4.8 7.9 11.2 10.0 12.3 11.8 11.2 11.4 10.8 1111..33 1111..66 25 All other loans 93.5 105.4 100.4 98.0 95.6 97.4 80.5 79.2 77.5 76.8 79.0 81.2 26 Lease-financing receivables 108.9 121.9 123.3 124.7 127.0 129.2 130.0 130.1 130.3 129.8 129.8 130.2 27 Interbank loans 132.7 143.8 138.3 136.4 149.8 141.4 141.6 138.8 136.3 134.3 134.4 148.5 28 Federal funds sold to and repurchase agreements with commercial banks 84.9 92.0 86.8 83.9 92.4 73.8 70.9 66.0 64.5 6611..33 6622..99 7755..88 29 Other 47.8 51.8 51.5 52.6 57.4 67.6 70.7 72.7 71.9 73.0 71.5 72.7 30 Cash assets4 155.1 151.4 143.3 150.0 154.1 152.9 159.5 160.4 156.6 164.2 162.1 162.5 31 Other assets5 244.9 238.2 236.8 247.0 243.2 248.9 250.2 259.7 253.4 259.3 261.3 261.1 32 Total assets6 2,981.1 2,983.3 2,985.9 3,0163 3,029.0 3,066.6 3,134.4 3,1443 3,115.0 3,140.8 3,145.6 3,159.7 Liabilities 33 Deposits 1,728.4 1,720.7 1,707.5 1,713.6 1,714.5 1,722.0 1,735.9 1,731.5 1,716.9 1,721.8 1,744.9 1,731.7 34 Transaction 375.0 357.2 342.7 343.7 340.0 335.6 343.4 336.9 319.3 331.1 352.1 346.3 35 Nontransaction 1,353.4 1,363.5 1,364.8 1,369.9 1374.5 1,386.4 1,392.5 1,394.6 1,397.5 1,390.7 1,392.8 1,385.4 36 Large time 234.1 231.8 227.3 235.2 245.3 252.3 260.0 261.4 262.7 259.3 261.0 260.1 37 Other 1,119.4 1,131.7 1,137.4 1,134.7 1,129.2 1,134.1 1,132.5 1,133.2 1,134.9 1,131.4 1,131.8 1,125.4 38 Borrowings 641.7 647.0 652.4 669.9 667.1 674.5 732.9 732.4 737.0 746.8 717.6 730.5 39 From banks in the U.S 215.8 218.2 219.7 221.9 238.4 237.9 236.9 250.0 249.1 249.5 245.2 255.5 40 From others 425.8 428.8 432.7 448.1 428.7 436.6 496.0 482.4 487.9 497.3 472.4 475.0 41 Net due to related foreign offices 108.7 140.9 147.0 148.8 162.0 177.7 178.1 189.4 187.7 184.8 193.4 191.7 42 Other liabilities 201.2 179.9 185.1 184.1 189.9 194.3 193.1 181.9 186.3 184.4 176.7 176.3 43 Total liabilities 2,680.0 2,688.5 2,692.0 2,7163 2,733.4 2,768.5 2,840.0 2,835.2 2,827.8 2,837.8 2,832.6 2,8303 44 Residual (assets less liabilities)7 301.1 294.8 293.8 300.0 295.7 298.0 294.4 309.1 287.2 303.0 313.0 329.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • April 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 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Not seasonally adjusted Assets 45 Bank credit 2,499.4 2,474.5 2,486.7 2,509.7 2,522.6 2,576.3 2,637.4 2,637.5 2,629.8 2,637.9 2,640.7 2,630.2 46 Securities in bank credit 580.4 576.1 587.5 592.5 598.4 603.1 615.5 611.8 612.1 610.9 611.3 612.0 47 U.S. government securities 390.6 385.5 390.0 389.9 388.6 389.2 392.5 393.4 389.1 391.9 392.7 395.8 48 Trading account 25.2 20.9 22.2 20.7 20.8 19.9 20.0 21.7 18.7 19.3 21.3 23.9 49 Investment account 365.4 364.6 367.9 369.2 367.8 369.3 372.5 371.7 370.3 372.7 371.4 371.9 50 Mortgage-backed securities . . 259.8 239.0 242.8 245.9 244.0 244.4 244.2 242.5 243.9 243.9 242.0 242.8 51 Other 105.5 125.5 125.1 123.2 123.7 124.9 128.4 129.1 126.4 128.8 129.4 129.1 52 One year or less 28.6 25.6 25.2 24.8 25.6 23.9 25.2 26.0 24.0 25.7 26.0 25.8 53 One to five years 39.2 59.7 59.9 59.1 59.9 60.6 61.5 61.1 60.4 60.7 61.5 61.2 54 More than five years . . . 37.7 40.3 40.0 39.4 38.3 40.4 41.7 42.0 42.0 42.4 41.9 42.1 55 Other securities 189.8 190.6 197.4 202.6 209.8 213.9 222.9 218.5 223.0 219.0 218.6 216.2 56 Trading account 91.4 73.6 77.5 78.1 81.7 82.4 87.1 81.8 84.9 80.7 80.2 80.4 57 Investment account 98.4 117.0 120.0 124.5 128.1 131.5 135.8 136.7 138.1 138.3 138.3 135.7 58 State and local government .. 24.8 25.0 25.4 25.6 25.9 26.6 26.6 26.9 26.8 26.9 27.0 27.1 59 Other 73.6 92.0 94.6 98.9 102.2 104.9 109.2 109.7 111.3 111.5 111.3 108.7 60 Loans and leases in bank credit2 . . 1,919.0 1,898.4 1,899.2 1,917.3 1,924.2 1,973.2 2,021.9 2,025.7 2,017.7 2,026.9 2,029.4 2,018.2 61 Commercial and industrial 545.6 568.1 567.4 574.0 575.8 589.5 592.8 592.1 586.2 587.2 592.3 594.7 62 Bankers acceptances 1.3 1.0 1.1 1.2 1.1 1.1 1.1 1.1 1.1 1.1 1.1 1.0 63 Other 544.3 567.2 566.3 572.9 574.7 588.4 591.7 591.0 585.1 586.1 591.2 593.7 64 Real estate 741.2 730.0 736.6 747.6 760.2 770.8 802.9 813.2 811.1 815.8 818.1 808.3 65 Revolving home equity 74.2 68.8 69.6 69.6 69.7 71.1 75.6 78.2 77.4 77.9 78.2 78.4 66 Other 415.3 402.5 407.2 412.1 418.5 424.8 449.3 452.9 452.5 456.2 457.5 447.4 67 Commercial 251.8 258.7 259.8 266.0 272.0 275.0 278.0 282.1 281.1 281.7 282.5 282.4 68 Consumer 314.6 284.8 284.8 284.1 281.1 284.7 293.7 299.7 297.9 297.5 298.7 302.1 69 Security' 77.8 63.1 58.8 56.3 52.4 65.5 84.9 74.9 74.4 84.2 73.3 67.5 70 Federal funds sold to and repurchase agreements with broker-dealers .... 62.4 45.4 41.9 38.9 35.3 47.5 64.6 54.5 57.1 62.7 52.3 47.7 71 Other 15.4 17.7 16.9 17.4 17.1 18.0 20.2 20.4 17.4 21.6 21.0 19.8 72 State and local government .... 11.7 12.0 12.3 12.4 12.4 12.3 12.2 12.3 12.1 12.2 12.4 12.3 73 Agricultural 9.0 8.9 9.1 9.4 9.7 9.6 9.6 9.7 9.9 9.7 9.7 9.7 74 Federal funds sold to and repurchase agreements with others 13.4 4.8 7.9 11.2 10.0 12.3 11.8 11.2 11.4 10.8 11.3 11.6 75 All other loans 95.1 105.1 99.6 98.6 96.5 100.6 84.5 80.4 82.3 77.5 81.3 80.0 76 Lease-financing receivables .... 110.6 121.6 122.8 123.5 126.0 127.8 129.5 132.1 132.2 132.0 132.0 132.0 77 Interbank loans 135.6 141.6 133.2 134.1 145.3 142.1 144.1 140.1 139.5 135.0 137.9 147.3 78 Federal funds sold to and repurchase agreements with commercial banks 88.5 88.4 81.9 81.9 88.7 76.6 74.5 68.9 68.7 63.7 67.2 76.3 79 Other 47.1 53.2 51.3 52.2 56.6 65.5 69.6 71.2 70.8 71.3 70.7 71.0 80 Cash assets4 164.4 145.5 136.5 148.8 154.6 157.1 170.3 170.1 173.5 168.4 189.5 161.5 81 Other assets5 240.2 240.4 238.3 248.2 240.7 245.5 249.6 254.8 250.5 252.5 254.7 255.5 82 Total assets6 3,001.2 2,963.4 2^55.7 3,001.6 3,024.2 3,081.9 3,162.2 3,164.5 3,1545 3,155.4 3,185.2 3,156.9 Liabilities 83 Deposits 1,737.6 1,709.4 1,697.6 1,709.6 1,713.1 1,736.3 1,759.3 1,740.6 1,755.1 1,738.4 1,764.7 1,710.1 84 Transaction 385.3 350.5 333.4 340.3 334.9 341.8 365.1 346.8 350.4 341.2 372.8 336.8 85 Nontransaction 1,352.4 1,358.9 1,364.2 1,369.3 1,378.2 1,394.6 1,394.2 1,393.8 1,404.7 1,397.3 1,391.8 1,373.4 86 Large time 235.7 227.0 225.5 234.7 247.3 258.3 263.3 263.4 263.8 262.0 263.4 261.5 87 Other 1,116.7 1,132.0 1,138.6 1,134.6 1,131.0 1,136.3 1,130.9 1,130.3 1,140.9 1,135.3 1,128.4 1,111.9 88 Borrowings 657.4 637.9 628.9 662.2 666.9 679.2 733.5 750.9 741.2 752.1 747.7 757.9 89 From banks in the U.S 220.1 214.4 213.3 217.7 234.1 240.5 241.3 255.0 252.0 252.1 253.4 261.4 90 From nonbanks in the U.S 437.3 423.5 415.6 444.5 432.8 438.6 492.2 495.9 489.2 500.0 494.3 496.4 91 Net due to related foreign offices . .. 109.0 135.7 144.0 146.4 161.9 176.7 178.6 190.4 175.8 181.9 193.1 207.2 92 Other liabilities 201.2 179.9 185.1 184.1 189.9 194.3 193.1 181.9 186.3 184.4 176.7 176.3 93 Total liabilities 2,705.2 2,662.9 2,655.7 2,702.2 2,731.8 2,786.5 2,864.5 2^63.7 2,858.3 2356.9 2,882.2 2,851.5 94 Residual (assets less liabilities)7 .... 296.0 300.4 300.1 299.5 292.4 295.4 297.7 300.8 296.2 298.5 303.0 305.3 MEMO 95 Revaluation gains on off-balancesheet items8 66.5 54.4 58.4 60.1 60.9 59.8 64.5 62.7 63.3 62.0 62.6 62.2 96 Revaluation losses on off-balancesheet items8 67.2 56.3 62.5 59.8 60.0 59.8 63.9 61.8 62.0 61.2 61.6 61.1 97 Mortgage-backed securities9 288.6 273.9 278.3 280.7 279.1 281.8 281.8 279.6 281.5 281.1 278.9 279.3 98 Pass-through securities 196.2 183.3 186.9 185.5 184.8 187.9 188.9 188.0 189.0 188.2 186.8 187.7 99 CMOs, REMICs, and other mortgage-backed securities . . 92.4 90.7 91.4 95.2 94.2 93.9 92.9 91.5 92.5 92.9 92.1 91.6 100 Net unrealized gains (losses) on available-for-sale securities10 .. . 3.0 -3.3 -4.2 -4.9 -5.6 -5.8 -6.0 -7.4 -7.3 -7.3 -7.2 -7.2 101 Offshore credit to U.S. residents11 . . . 38.9 36.3 32.2 27.8 26.7 24.8 24.0 23.2 22.6 22.9 23.2 23.5 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 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Seasonally adjusted Assets 1 Bank credit 1,468.9 1,538.6 1,552.8 1.566.5 1,588.1 1,593.1 1,604.8 1,626.2 1,617.3 1,626.8 1,625.5 1,629.1 2 Securities in bank credit 428.2 452.8 454.8 456.5 458.7 453.7 451.9 457.2 454.2 457.5 456.5 458.7 3 U.S. government securities 320.7 336.8 337.0 338.6 339.4 334.0 330.5 336.4 333.2 336.4 335.9 337.9 4 Other securities 107.5 116.0 117.8 117.9 119.3 119.7 121.4 120.8 121.0 121.1 120.6 120.9 5 Loans and leases in bank credit2 1,040.8 1,085.8 1,097.9 1,110.0 1,129.4 1,139.4 1,152.9 1,169.0 1,163.0 1,169.3 1,169.0 1,170.3 6 Commercial and industrial 190.8 202.2 203.9 206.8 212.6 215.4 216.8 221.0 219.0 220.9 220.8 221.6 7 Real estate 585.3 617.4 625.5 630.8 642.5 648.8 655.0 663.2 659.1 663.1 663.3 664.0 8 Revolving home equity 28.2 29.3 29.4 29.4 29.9 30.1 30.7 31.4 31.2 31.5 31.4 31.5 9 Other 557.1 588.1 596.1 601.5 612.6 618.7 624.4 631.8 627.9 631.7 631.9 632.5 10 Consumer 190.4 194.6 196.0 198.9 200.5 200.1 205.1 208.3 208.8 208.5 208.3 208.7 11 Security3 5.3 4.9 4.9 4.9 4.9 5.4 5.3 5.0 5.0 5.1 5.1 4.9 12 Other loans and leases 68.9 66.8 67.7 68.6 69.0 69.7 70.7 71.4 71.1 71.7 71.5 71.1 13 Interbank loans 60.9 53.0 50.9 48.6 45.9 50.1 51.3 49.7 46.0 48.0 50.7 52.3 14 Cash assets4 67.6 71.2 71.0 71.7 71.5 72.6 76.1 69.6 70.2 69.9 71.2 67.9 15 Other assets5 70.2 76.6 79.1 79.1 83.1 82.3 83.1 87.5 87.7 90.6 86.6 86.7 16 Total assets6 1,648.6 1,720.2 1,734.2 1,746.0 1,7684 1,777.9 1,794.7 1,812.2 1,800.4 1,814.7 1,8133 1,815.1 Liabilities 17 Deposits 1,320.1 1,360.0 1,367.9 1,370.4 1,388.3 1,398.9 1,416.3 1,431.6 1,421.4 1,429.4 1,433.1 1,434.3 18 Transaction 278.5 280.5 282.2 279.5 279.6 277.0 275.8 274.9 264.5 272.0 278.2 283.5 19 Nontransaction 1,041.6 1,079.5 1,085.7 1,090.9 1,108.7 1,121.9 1,140.5 1,156.7 1,156.9 1,157.5 1,155.0 1,150.8 20 Large time 186.1 193.8 196.7 198.3 202.6 206.6 208.6 210.5 209.7 209.8 210.4 210.6 21 Other 855.5 885.7 889.0 892.7 906.1 915.3 931.9 946.2 947.2 947.6 944.6 940.1 22 Borrowings 168.9 199.2 201.0 206.1 206.4 205.1 212.5 219.7 224.3 221.7 216.3 218.8 23 From banks in the U.S 78.6 94.5 93.2 93.5 89.7 87.8 87.4 89.5 88.7 89.3 89.1 90.9 24 From others 90.3 104.6 107.8 112.6 116.6 117.3 125.0 130.2 135.7 132.4 127.2 127.8 25 Net due to related foreign offices .... 3.0 4.3 3.5 3.4 4.3 4.5 4.5 5.1 4.2 5.0 4.8 5.8 26 Other liabilities 29.3 31.1 32.9 33.9 34.2 34.0 34.2 33.0 32.1 32.6 33.0 32.7 27 Total liabilities 1,5213 1,5945 1,605.2 1,613.8 1,633.2 1,642.5 1,667.5 1,6893 1,682.0 1,688.7 1,6873 1,691.6 28 Residual (assets less liabilities)7 127.3 125.7 128.9 132.2 135.3 135.3 127.2 123.0 118.4 125.9 126.0 123.5 Not seasonally adjusted Assets 29 Bank credit 1,462.4 1,539.9 1,554.9 1,569.7 1,586.9 1,590.1 1,602.9 1,619.2 1,610.4 1,620.1 1,619.6 1,622.1 30 Securities in bank credit 427.4 451.1 453.2 454.1 455.6 451.5 451.8 456.7 453.7 457.6 456.5 458.1 31 U.S. government securities 320.1 335.3 335.2 336.8 336.4 331.7 330.6 336.0 332.9 336.6 335.8 337.2 32 Other securities 107.4 115.8 118.0 117.4 119.2 119.7 121.2 120.7 120.8 121.0 120.7 120.8 33 Loans and leases in bank credit2 1,035.0 1,088.8 1,101.7 1,115.6 1,131.3 1,138.6 1,151.1 1,162.5 1,156.7 1,162.5 1,163.2 1,164.0 34 Commercial and industrial 190.1 202.1 202.7 205.6 211.1 213.9 215.9 220.2 218.4 219.7 220.0 220.7 35 Real estate 581.4 619.5 627.6 634.2 643.9 649.3 653.2 659.2 654.2 658.8 659.7 660.4 36 Revolving home equity 28.1 29.1 29.2 29.6 30.1 30.4 30.9 31.4 31.1 31.4 31.4 31.5 37 Other 553.2 590.4 598.4 604.6 613.8 618.9 622.3 627.7 623.2 627.3 628.3 628.9 38 Consumer 191.4 194.0 196.5 200.0 201.1 200.6 206.8 209.0 208.9 209.3 209.1 209.7 39 Security3 5.3 4.9 4.9 4.9 4.9 5.4 5.3 5.0 5.0 5.1 5.1 4.9 40 Other loans and leases 66.8 68.4 70.0 70.8 70.2 69.5 70.0 69.2 70.0 69.6 69.2 68.3 41 Interbank loans 60.9 48.9 48.4 47.4 47.0 56.0 55.2 49.7 49.3 50.4 50.6 47.7 42 Cash assets4 70.8 69.4 67.9 70.4 70.6 74.8 79.7 72.7 78.3 71.8 77.4 67.1 43 Other assets5 67.1 77.8 79.8 79.5 83.2 84.0 83.1 83.9 87.9 84.7 82.9 81.2 44 Total assets6 1,6423 1,716.8 1,7313 1,747.1 1,767.5 1,784.8 1,8003 1,804.7 1,805.2 1,8063 1,809.8 1,7973 Liabilities 45 Deposits 1,312.7 1,357.4 1,366.6 1,373.5 1,392.1 1,411.5 1,421.0 1,423.3 1,427.7 1,424.7 1,428.7 1,411.9 46 Transaction 283.0 276.6 275.3 276.5 276.5 280.6 286.2 278.9 282.2 278.1 284.4 276.2 47 Nontransaction 1,029.7 1,080.8 1,091.2 1,096.9 1,115.6 1,130.9 1,134.7 1,144.4 1,145.5 1,146.6 1,144.3 1,135.7 48 Large time 186.1 193.8 196.7 198.3 202.6 206.6 208.6 210.5 209.7 209.8 210.4 210.6 49 Other 843.6 887.0 894.5 898.7 913.0 924.3 926.1 933.9 935.8 936.8 933.9 925.1 50 Borrowings 169.3 199.0 201.0 208.7 209.2 207.5 214.5 219.9 218.6 219.6 219.1 222.7 51 From banks in the U.S 79.3 93.7 92.4 94.0 91.7 89.6 89.5 90.2 87.5 89.2 91.1 93.1 52 From others 90.0 105.3 108.6 114.8 117.5 117.9 124.9 129.6 131.0 130.4 128.0 129.6 53 Net due to related foreign offices .... 3.0 4.3 3.5 3.4 4.3 4.5 4.5 5.1 4.2 5.0 4.8 5.8 54 Other liabilities 30.0 31.2 32.6 33.2 33.4 33.3 33.6 33.6 32.9 33.4 33.4 33.3 55 Total liabilities 1,515.1 1,591.8 1,603.7 1,618.9 1,639.0 1,656.8 1,673.5 1,681.9 1,6833 1,682.7 1,686.1 1,673.7 56 Residual (assets less liabilities)7 127.2 124.9 127.6 128.3 128.5 128.0 126.8 122.8 121.8 123.6 123.8 123.5 MEMO 57 Mortgage-backed securities9 54.1 65.2 64.9 65.2 67.5 66.2 66.3 68.7 68.3 68.6 68.6 69.0 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • April 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 1999 1999r 2000 2000 Jan. July Aug. Sept. Oct. Nov. Dec. Jan. Jan. 5 Jan. 12 Jan. 19 Jan. 26 Seasonally adjusted Assets 1 Bank credit 583.2 522.7 524.0 519.2 527.8 548.6 556.5 547.6 548.3 546.3 545.5 554.5 2 Securities in bank credit 211.7 190.5 190.1 189.5 193.2 197.9 205.6 197.4 200.7 198.3 197.1 198.6 3 U.S. government securities 86.0 86.2 84.1 81.8 82.2 79.7 81.8 79.2 80.4 79.8 78.0 80.6 4 Other securities 125.7 104.2 106.0 107.7 111.1 118.2 123.8 118.1 120.3 118.5 119.1 118.0 5 Loans and leases in bank credit2 . . . 371.5 332.3 334.0 329.7 334.5 350.7 350.8 350.2 347.6 348.0 348.3 355.9 6 Commercial and industrial 213.8 193.3 195.4 197.2 198.9 200.8 195.6 195.8 193.3 194.7 196.7 196.9 7 Real estate 21.4 18.5 17.6 17.6 17.8 17.4 17.3 17.6 17.2 17.4 17.6 17.8 8 Security3 63.4 52.8 55.0 51.4 54.8 65.3 66.9 66.7 66.4 64.6 64.8 71.1 y Other loans and leases 72.9 67.6 65.9 63.5 63.0 67.1 71.0 70.2 70.7 71.3 69.3 70.1 10 Interbank loans 29.4 27.5 25.7 22.9 22.9 22.8 25.5 26.2 27.2 26.6 23.6 25.8 ii Cash assets4 36.2 36.4 39.4 42.3 45.7 52.2 56.6 55.1 56.6 58.1 55.4 53.8 12 Other assets5 38.5 32.3 29.0 29.3 31.8 34.8 37.6 39.6 37.5 39.2 41.3 39.5 13 Total assets6 687.0 618.7 617.9 613.4 627.9 658.2 675.9 668.2 669.4 670.0 665.4 673.4 Liabilities 14 Deposits 317.0 309.1 308.9 310.9 332.2 359.0 378.8 388.3 392.0 395.2 384.8 383.3 15 Transaction 11.8 10.9 11.0 10.9 11.5 11.3 11.5 11.2 10.5 11.1 11.2 11.5 16 Nontransaction 305.2 298.2 297.9 300.0 320.7 347.7 367.3 377.1 381.5 384.1 373.6 371.8 17 Borrowings 194.5 174.9 174.7 171.6 177.6 186.3 181.1 181.4 177.5 181.2 181.6 183.4 18 From banks in the U.S 21.2 24.4 23.6 25.2 22.9 26.9 25.4 22.8 22.9 21.5 22.9 23.5 19 From others 173.3 150.5 151.2 146.4 154.7 159.3 155.7 158.6 154.6 159.6 158.7 159.9 20 Net due to related foreign offices 101.4 71.9 72.0 66.1 53.4 43.9 38.9 33.3 38.2 31.0 36.4 34.8 21 Other liabilities 75.0 62.7 61.7 64.6 65.8 67.3 70.5 67.7 65.5 67.2 67.0 67.5 22 Total liabilities 687.9 618.5 6173 613.2 629.0 656.4 669.4 670.6 673.2 674.6 669.8 669.0 23 Residual (assets less liabilities)7 -.9 .1 .6 .2 -1.0 1.8 6.6 -2.5 -3.9 -4.7 -4.4 4.4 Not seasonally adjusted Assets 24 Bank credit 586.7 519.5 520.3 518.3 531.8 551.8 559.7 551.1 555.1 550.2 548.1 554.9 25 Securities in bank credit 211.9 188.8 188.8 188.8 196.0 201.0 204.7 197.8 201.1 199.3 196.7 198.1 26 U.S. government securities 85.7 85.7 83.1 80.8 82.1 80.1 82.1 78.9 80.3 80.1 77.7 79.3 27 Trading account 19.8 20.0 17.3 15.6 14.9 9.2 7.7 8.5 6.8 7.5 6.9 11.0 28 Investment account 65.9 65.8 65.8 65.2 67.2 70.9 74.4 70.5 73.5 72.6 70.8 68.3 29 Other securities 126.3 103.1 105.7 108.0 114.0 120.9 122.6 118.9 120.8 119.2 119.0 118.9 30 Trading account 77.5 60.8 64.9 69.7 75.0 80.7 80.7 76.0 78.1 76.6 76.3 75.1 31 Investment account 48.8 42.3 40.9 38.2 39.0 40.2 41.9 42.9 42.7 42.7 42.7 43.8 32 Loans and leases in bank credit2 . . . 374.7 330.7 331.5 329.5 335.8 350.8 355.0 353.3 354.1 350.9 351.4 356.8 33 Commercial and industrial 215.6 192.5 193.7 196.8 200.0 202.1 198.3 197.5 197.1 196.6 198.1 197.7 34 Real estate 21.6 18.3 17.5 17.6 18.0 17.6 17.4 17.7 17.4 17.6 17.7 17.9 35 Security3 63.3 52.4 55.0 51.6 54.5 64.5 67.4 66.7 67.1 64.3 65.0 70.4 36 Other loans and leases 74.2 67.4 65.2 63.5 63.3 66.5 71.9 71.4 72.6 72.4 70.6 70.8 37 Interbank loans 29.4 27.5 25.7 22.9 22.9 22.8 25.5 26.2 27.2 26.6 23.6 25.8 38 Cash assets4 36.6 36.3 39.0 42.0 46.3 53.0 59.0 55.8 58.4 59.0 56.4 54.2 39 Other assets5 38.8 31.6 29.6 29.7 31.7 35.0 39.1 39.8 38.1 39.9 41.2 39.3 40 Total assets6 691.2 614.7 614.4 612.6 6325 6623 683.0 672.7 678.5 675.5 669.0 674.0 Liabilities 41 Deposits 314.5 306.7 306.3 310.4 332.2 358.4 383.2 385.0 390.2 391.5 380.1 381.1 42 Transaction 11.9 10.8 10.9 11.4 11.5 11.2 11.9 11.3 10.9 11.1 11.4 11.3 43 Nontransaction 302.5 295.9 295.4 299.1 320.7 347.2 371.3 373.8 379.3 380.4 368.7 369.8 44 Borrowings 194.5 174.9 174.7 171.6 177.6 186.3 181.1 181.4 177.5 181.2 181.6 183.4 45 From banks in the U.S 21.2 24.4 23.6 25.2 22.9 26.9 25.4 22.8 22.9 21.5 22.9 23.5 46 From others 173.3 150.5 151.2 146.4 154.7 159.3 155.7 158.6 154.6 159.6 158.7 159.9 47 Net due to related foreign offices .... 104.1 69.3 69.9 64.5 55.2 46.6 44.0 35.1 41.9 32.6 37.2 38.2 48 Other liabilities 75.2 61.8 61.8 64.3 65.2 68.2 71.9 67.9 65.6 67.0 66.8 68.2 49 Total liabilities 6883 612.6 61Z7 610.8 630.1 659.4 6803 669.5 6752 672.2 665.7 670.9 50 Residual (assets less liabilities)7 3.0 2.1 1.7 1.8 2.3 2.9 2.7 3.2 3.3 3.2 3.3 3.1 MEMO 51 Revaluation gains on off-balance-sheet items8 46.3 37.5 38.1 38.4 39.4 40.6 39.8 38.4 38.0 37.2 37.9 38.1 52 Revaluation losses on off-balancesheet items8 42.8 36.2 36.3 37.4 38.1 39.4 38.7 37.9 37.1 36.5 37.1 37.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 NOTES TO TABLE 1.26 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 group that contained the acquired bank and put into past data for the group containing the statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, ratio procedure is used to adjust past levels. "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks being published in the Bulletin. Instead, abbreviated balance sheets for both large and small in the United States, all of which are included in "Interbank loans." domestically chartered banks have been included in table 1.26, parts C and D. Data are both 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. securities. branches and agencies of foreign banks have been replaced by balance sheet estimates of all 4. Includes vault cash, cash items in process of collection, balances due from depository foreign-related institutions and are included in table 1.26, part E. These data are break- institutions, and balances due from Federal Reserve Banks. adjusted. 5. Excludes the due-from position with related foreign offices, which is included in "Net The not-seasonally-adjusted data for all tables now contain additional balance sheet items, due to related foreign offices." which were available as of October 2, 1996. 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for 1. Covers the following types of institutions in the fifty states and the District of transfer risk. Loans are reported gross of these items. Columbia: domestically chartered commercial banks that submit a weekly report of condition 7. This balancing item is not intended as a measure of equity capital for use in capital (large domestic); other domestically chartered commercial banks (small domestic); branches adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related seasonal patterns estimated for total assets and total liabilities. institutions). Excludes International Banking Facilities. Data are Wednesday values or pro 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and rata averages of Wednesday values. Large domestic banks constitute a universe; data for equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. small domestic banks and foreign-related institutions are estimates based on weekly samples 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications government-sponsored enterprises, and private entities. of assets and liabilities. 10. Difference between fair value and historical cost for securities classified as available- The data for large and small domestic banks presented on pp. A17-19 are adjusted to for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are remove the estimated effects of mergers between these two groups. The adjustment for restated to include an estimate of these tax effects. mergers changes past levels to make them comparable with current levels. Estimated 11. Mainly commercial and industrial loans but also includes an unknown amount of credit quantities of balance sheet items acquired in mergers are removed from past data for the bank extended to other than nonfinancial businesses. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic Nonfinancial Statistics • April 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 1995 1996 1997 1998 1999 July Aug. Sept. Oct. Nov. Dec. 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,242,107 1,257,658 1,274,726 1,321,163 1,369,100 1,403,023 Financial companies1 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 712,718 710,320 718,380 751,245 802,194 786,643 3 Directly placed paper, total3 210,829 229,662 252,536 322,030 337,240 277,570 290,228 293,381 296,998 299,777 337,240 4 Nonfinancial companies4 188,260 184,563 200,857 227,132 279,140 251,819 257,110 262,965 272,920 267,128 279,140 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 Average Period Average Period Average rate rate rate 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 May 8.50 Sept 8.49 Sept 8.25 Nov. 17 8.50 June 8.50 Oct 8.12 Oct 8.25 July 8.50 Nov 7.89 Nov. 8.37 2000—Feb. 3 88..7755 8.50 Dec 77..7755 DDeecc 88..5500 Sept 8.50 Oct 8.50 2000—Jan 8.50 Nov 8.50 Feb 8.73 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 2000 1999-2000, week ending IItteemm 11999977 11999988 11999999 Oct. Nov. Dec. Jan. Dec. 31 Jan. 7 Jan. 14 Jan. 21 Jan. 28 MONEY MARKET INSTRUMENTS 1 Federal funds''2,3 5.46 5.35 4.97 5.20 5.42 5.30 5.45 5.01 4.72 5.62 5.59 5.43 2 Discount window borrowing2,4 5.00 4.92 4.62 4.75 4.86 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Commercial paper3,5,6 Nonfinancial 3 1-month 5.57 5.40 5.09 5.28 5.37 5.97 5.59 5.71 5.54 5.56 5.61 5.64 4 2-month 5.57 5.38 5.14 5.30 5.82 5.91 5.67 5.73 5.59 5.66 5.69 5.71 5 3-month 5.56 5.34 5.18 5.88 5.81 5.87 5.74 5.78 5.66 5.71 5.77 5.79 Financial 6 1-month 5.59 5.42 5.11 5.29 5.38 6.02 5.62 5.74 5.58 5.59 5.65 5.65 7 2-month 5.59 5.40 5.16 5.32 5.85 5.95 5.72 5.77 5.68 5.70 5.73 5.74 8 3-month 5.60 5.37 5.22 5.93 5.85 5.93 5.81 5.83 5.80 5.80 5.81 5.82 Commercial paper (historicalJ3'5'7 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 6.02 5.94 6.00 5.88 6.00 5.87 5.89 5.88 5.87 16 6-month 5.57 5.30 5.30 5.89 5.83 5.94 5.99 5.99 5.96 6.02 6.01 5.98 Certificates of deposit, secondary market3,10 17 1-month 5.54 5.49 5.19 5.36 5.50 6.34 5.74 6.05 5.70 5.72 5.74 5.78 18 3-month 5.62 5.47 5.33 6.13 6.00 6.05 5.95 6.00 5.93 5.96 5.95 5.94 19 6-month 5.73 5.44 5.46 6.04 5.97 6.07 6.15 6.07 6.13 6.15 6.15 6.15 20 Eurodollar deposits, 3-month3,11 5.61 5.45 5.31 6.09 5.97 6.06 5.94 6.02 5.94 5.94 5.94 5.94 U.S. Treasury bills Secondary market3,5 21 3-month 5.06 4.78 4.64 4.86 5.07 5.20 5.32 5.17 5.26 5.26 5.31 5.41 72 6-month 5.18 4.83 4.75 4.98 5.20 5.44 5.50 5.47 5.48 5.43 5.53 5.55 23 1-year 5.32 4.80 4.81 5.12 5.24 5.51 5.75 5.60 5.68 5.74 5.76 5.78 Auction high3,5,12 24 3-month 5.07 4.81 4.66 4.88 5.07 5.23 5.34 5.30 5.36 5.24 5.35 5.39 25 6-month 5.18 4.85 4.76 4.98 5.17 5.43 5.52 5.51 5.59 5.42 5.54 5.52 26 1-year 5.36 4.85 4.78 5.12 5.17 5.35 5.65 n.a. 5.65 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 27 1-year 5.63 5.05 5.08 5.43 5.55 5.84 6.12 5.95 6.03 6.12 6.13 6.17 28 2-year 5.99 5.13 5.43 5.86 5.86 6.10 6.44 6.22 6.34 6.43 6.48 6.48 29 3-year 6.10 5.14 5.49 5.94 5.92 6.14 6.49 6.26 6.39 6.48 6.53 6.54 30 5-year 6.22 5.15 5.55 6.03 5.97 6.19 6.58 6.33 6.46 6.56 6.65 6.63 31 7-year 6.33 5.28 5.79 6.33 6.17 6.38 6.70 6.52 6.62 6.70 6.78 6.72 32 10-year 6.35 5.26 5.65 6.11 6.03 6.28 6.66 6.41 6.56 6.66 6.77 6.68 33 20-year 6.69 5.72 6.20 6.66 6.48 6.69 6.86 6.80 6.88 6.91 6.92 6.77 34 30-year 6.61 5.58 5.87 6.26 6.15 6.35 6.63 6.46 6.58 6.66 6.73 6.57 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 6.60 6.42 6.63 6.81 6.75 6.82 6.86 6.89 6.73 STATE AND LOCAL NOTES AND BONDS Moody's series14 36 Aaa 5.32 4.93 5.28 5.78 5.77 5.82 5.91 5.85 5.86 5.93 5.93 5.92 37 Baa 5.50 5.14 5.70 6.23 6.23 6.25 6.38 6.29 6.31 6.40 6.42 6.39 38 Bond Buyer series15 5.52 5.09 5.43 5.92 5.86 5.95 6.08 6.00 6.04 6.11 6.09 6.08 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.93 7.73 7.87 8.06 7.96 8.02 8.08 8.14 7.99 Rating group 40 Aaa 7.27 6.53 7.05 7.55 7.36 7.55 7.78 7.64 7.73 7.80 7.88 7.73 41 Aa 7.48 6.80 7.36 7.79 7.62 7.78 7.96 7.88 7.98 7.99 8.03 7.86 42 A 7.54 6.93 7.53 7.99 7.79 7.96 8.15 8.06 8.14 8.17 8.21 8.08 43 Baa 7.87 7.22 7.88 8.38 8.15 8.19 8.33 8.24 8.25 8.37 8.44 8.29 MEMO Dividend-price ratio17 44 Common stocks 1.77 1.49 1.25 1.28 1.21 1.18 1.19 1.15 1.20 1.17 1.15 1.20 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 9. Representative closing yields for acceptances of the highest-rated money center banks. G.13 (415) monthly statistical releases. For ordering address, see inside front cover. 10. An average of dealer offering rates on nationally traded certificates of deposit. 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. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • April 2000 1.36 STOCK MARKET Selected Statistics 1999 2000 IInnddiiccaattoorr 11999977 11999988 11999999 May June July Aug. Sept. Oct. Nov. Dec. Jan. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 635.62 629.53 648.83 621.03 607.87 599.04 634.22 638.17 634.07 2 Industrial 574.97 684.35 775.29 791.72 783.96 809.33 778.82 769.47 753.94 791.41 808.28 814.73 3 Transportation 415.08 468.61 491.62 537.88 520.66 528.72 492.13 462.33 450.13 474.78 461.04 456.35 4 Utility 143.87 190.52 284.82 242.98 241.36 250.50 241.84 237.71 285.16 502.58 511.78 485.82 5 Finance 424.84 516.65 530.97 562.66 546.43 557.92 521.59 493.37 490.92 539.20 510.99 495.23 6 Standard & Poor's Corporation (1941-43 = 10)1 873.43 1,085.50 1,327.33 1,332.07 1,322.55 1,380.99 1,327.49 1,318.17 1,300.01 1,390.99 1,428.68 1,425.59 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 787.02 772.01 803.75 781.33 788.74 786.96 819.60 838.24 878.73 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 785,778 723,025 721,294 709,569 772,627 882,422 866,281 884,141 1,058,021 9 American Stock Exchange 24,390 28,870 32,629 35,241 28,806 25,754 27,795 32,540 35,762 33,330 41,076 47,530 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 126,090 140,980 228,530 177,984 176,930 178,360 176,390 179,316 182,272 206,280 228,530 243,490 Free credit balances at brokers4 11 Margin accounts5 31,410 40,250 55,130 41,250 42,865 44,330 44,230 47,125 51,040 49,480 55,130 57,800 12 Cash accounts 52,160 62,450 79,070 61,665 64,100 60,000 62,600 62,810 61,085 68,200 79,070 75,760 Margin requirements (percent of market value and effective date)6 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. In July 1976 a financial group, composed of banks and insurance companies, was added 6. Margin requirements, stated in regulations adopted by the Board of Governors pursuant to the group of stocks on which the index is based. The index is now based on 400 industrial to the Securities Exchange Act of 1934, limit the amount of credit that can be used to stocks (formerly 425), 20 transportation (formerly 15 rail), 40 public utility (formerly 60), and purchase and carry "margin securities" (as defined in the regulations) when such credit is 40 financial. collateralized by securities. Margin requirements on securities are the difference between the 2. On July 5, 1983, the American Stock Exchange rebased its index, effectively cutting market value (100 percent) and the maximum loan value of collateral as prescribed by the previous readings in half. Board. Regulation T was adopted effective Oct. 15, 1934; Regulation U, effective May 1, 3. Since July 1983, under the revised Regulation T, margin credit at broker-dealers has 1936; Regulation G, effective Mar. 11, 1968; and Regulation X, effective Nov. 1, 1971. included credit extended against stocks, convertible bonds, stocks acquired through the On Jan. 1, 1977, the Board of Governors for the first time established in Regulation T the exercise of subscription rights, corporate bonds, and government securities. Separate report- initial margin required for writing options on securities, setting it at 30 percent of the current ing of data for margin stocks, convertible bonds, and subscription issues was discontinued in market value of the stock underlying the option. On Sept. 30, 1985, the Board changed the April 1984. required initial margin, allowing it to be the same as the option maintenance margin required 4. Free credit balances are amounts in accounts with no unfulfilled commitments to by the appropriate exchange or self-regulatory organization; such maintenance margin rules brokers and are subject to withdrawal by customers on demand. must be approved by the Securities and Exchange Commission. 5. Series initiated in June 1984. 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 2000 11999977 11999988 11999999 Aug. Sept. Oct. Nov. Dec. Jan. U.S. budget* 1 Receipts, total 1,579,292 1,721,798 1,827,454 126,324 200,396 121,035 121,375 201,196 189,478 2 On-budget 1,187,302 1,305,999 1,382,986 91,554 161,304 89,009 86,909 162,772 143,838 3 Off-budget 391,990 415,799 444,468 34,770 39,092 32,026 34,466 38,424 45,640 4 Outlays, total 1,601,235 1,652,552 1,703,040 129,127 142,341 147,701 148,408 168,114 127,326 5 On-budget 1,290,609 1,335,948 1,382,262 97,984 107,222 119,506 116,388 165,504 97,451 6 Off-budget 310,626 316,604 320,778 31,143 35,119 28,196 32,020 2,611 29,875 7 Surplus or deficit (-), total -21,943 69,246 124,414 -2,803 58,055 -26,667 -27,032 33,081 62,152 8 On-budget -103,307 -29,949 724 -6,430 54,082 -30,497 -29,479 -2,732 46,387 9 Off-budget 81,364 99,195 123,690 3,627 3,973 3,830 2,446 35,813 15,765 Source of financing (total) 10 Borrowing from the public 38,171 -51,211 — 88,304 26,470 -47,718 5,754 6,132 35,749 -83,985 11 Operating cash (decrease, or increase (-)) 604 4,743 -17,580 3,160 -20,069 8,891 41,488 -77,248 20,592 12 Other2 -16,832 -22,778 -18,530 -26,827 9,732 12,022 -20,588 8,418 1,241 MEMO 13 Treasury operating balance (level, end of period) 43,621 38,878 56,458 36,389 56,458 47,567 6,079 83,327 62,735 14 Federal Reserve Banks 7,692 4,952 6,641 5,559 6,641 4,527 5,025 28,402 6,119 15 Tax and loan accounts 35,930 33,926 49,817 30,831 49,817 43,040 1,054 54,925 56,615 1. Since 1990, off-budget items have been the social security trust funds (federal old-age net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loansurvivors insurance and federal disability insurance) and the U.S. Postal Service. valuation adjustment; and profit on sale of gold. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the SOURCE. Monthly totals; U.S. Department of the Treasury, Monthly Treasury Statement of International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; Receipts and Outlays of the U.S. Government-, fiscal year totals: U.S. Office of Management accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous and Budget, Budget of the U.S. Government. liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic NonfinancialS tatistics • April 2000 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1998 1999 1999 2000 11999988 11999999 HI H2 HI H2 Nov. Dec. Jan. RECEIPTS 1 All sources 1,721,798 1,827,454 922,630 825,057 966,045 892,249 121,375 201,196 189,478 2 Individual income taxes, net 828,586 879,480 447,514 392,332 481,527 425,451 57,477 94,535 111,306 3 Withheld 646,483 693,940 316,309 339,144 351,068 372,012 59,668 88,311 65,922 4 Nonwithheld 281,527 308,185 219,136 65,204 240,278 68,302 2,298 7,373 46,556 S Refunds 99,476 122,706 87,989 12,032 109,467 14,841 4,490 1,149 11,,117733 Corporation income taxes 6 Gross receipts 213,008' 216,324 109,353 104,163 106,861 110,111 3,461 46,486 7,135 7 Refunds 24,593 31,645 14,220 14,250 17,092 13,996 1,809 1,540 1,800 8 Social insurance taxes and contributions, net . . . 571,831 611,833 312,713 268,466 324,831 292,551 49,013 48,421 60,484 9 Employment taxes and contributions2 540,014 580,880 293,520 256,142 306,235 280,059 45,759 47,742 58,819 10 Unemployment insurance 27,484 26,480 17,080 10,121 16,378 10,173 2,868 266 1,319 11 Other net receipts' 4,333 4,473 2,112 2,202 2,216 2,319 386 412 346 12 Excise taxes 57,673 70,414 29,922 33,366 31,015 34,249 6,072 5,709 5,316 13 Customs deposits 18,297 18,336 8,546 9,838 8,440 10,287 1,621 1,612 1,457 14 Estate and gift taxes 24,076 27,782 12,971 12,359 14,915 14,001 2,465 2,575 2,116 15 Miscellaneous receipts4 32,658 34,929 15,829 18,735 15,140 19,565 3,075 3,398 3,464 OUTLAYS 16 All types 1,652,552 1,703,040 815,884 877,414 817,235 882,777 148,408 168,114 127,326 17 National defense 268,456 274,873 129,351 140,196 134,414 149,820 23,224 31,261 17,581 18 International affairs 13,109 15,243 4,610 8,297 6,879 8,530 1,522 3,527 1,404 19 General science, space, and technology 18,219 18,125 9,426 10,142 9,319 10,089 1,661 1,853 1,229 20 Energy 1,270 912 957 699 797 -90 -199 32 94 21 Natural resources and environment 22,396 23,968 10,051 12,671 10,351 12,098 2,078 2,350 1,490 22 Agriculture 12,206 23,011 2,387 16,757 9,803 20,887 7,401 4,362 4,213 23 Commerce and housing credit 1,014 2,647 -2,483 4,046 -1,629 7,351 505 -696 -1,336 24 Transportation 40,332 42,531 16,196 20,836 17,082 22,971 3,890 3,858 3,112 25 Community and regional development 9,720 11,870 4,863 6,972 5,368 7,135 1,244 1,300 270 26 Education, training, employment, and social services 54,919 56,402 25,928 27,762 29,003 27,532 4,070 5,593 4,788 27 Health 131,440 141,079 65,053 67,838 69,320 74,490 12,124 13,462 11,575 28 Social security and Medicare 572,047 580,488 286,305 316,809 261,146 295,030 48,686 52,720 45,336 29 Income security 233,202 237,707 125,196 109,481 126,552 113,504 18,216 23,747 16,565 30 Veterans benefits and services 41,781 43,212 19,615 22,750 20,105 23,412 3,795 5,320 1,991 31 Administration of justice 22,832 25,924 11,287 12,041 13,149 13,459 2,579 2,163 2,224 32 General government 13,444 15,758 6,139 9,136 6,650 6,993 646 1,974 490 33 Net interest5 243,359 229,735 122,345 116,954 116,655 112,420 20,410 18,328 19,428 34 Undistributed offsetting receipts6 -47,194 -40,445 -21,340 -25,793 -17,724 -22,850 -3,441 -3,040 -3,129 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 3,716 4 Held by agencies 1,656 1,670 1,758 1,766 1,827 1,857 1,954 1,989 2,061 5 Agency securities 34 31 30 29 29 29 29 29 29 6 Held by public 27 26 26 26 29 28 28 28 28 7 Held by agencies 7 5 4 4 1 1 1 1 1 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 5,776.1r By 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 68.2 59.2 59.9 67.6 68.2 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 2,060.6 1,857.1 1,953.6 1,989.1 2,060.6 17 Federal Reserve Banks 410.9 451.9 471.7 477.7 464.5 493.8 496.5 477.7 18 Private investors 3,431.2 3,414.6 3,334.0 3,234.2 3,327.6 3,199.3 3,175.6 3,234.2 19 Depository institutions 296.6 300.3 237.3 n.a. 246.5 240.6 240.6 n.a. 20 Mutual funds 315.8 321.5 343.2 n.a. 351.8 335.4 332.6 n.a. 21 Insurance companies 214.1 176.6 144.6 n.a. 143.8 142.5 138.2 n.a. 22 State and local treasuries6 257.0 239.3 269.3 n.a. 272.5 279.1 271.6 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.5 186.6 186.6 186.6 186.5 24 Pension funds 392.7 421.0 434.7 n.a. 438.3 449.1 444.9 n.a. 25 Private 189.2 204.1 218.1 n.a. 220.0 226.6 228.3 n.a. 26 State and Local 203.5 216.9 216.6 n.a. 218.3 222.5 216.6 n.a. 27 Foreign and international7 1,102.1 1,241.6 1,278.7 1,268.7 1,272.1 1,258.6 1,281.3 1,268.7 28 Other miscellaneous investors8'8 665.9 527.9 439.6 n.a. 416.6 307.4 279.8 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 NonfinancialS tatistics • April 2000 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1999 1999, week ending 2000, week ending IItteemm Oct. Nov. Dec. Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 23,806 33,394 32,151 43,667 33,708 27,468 31,651 34,003 30,830 28,132 26,516 23,388 Coupon securities, by maturity 2 Five years or less 9900,,883399 110000,,886677 72,671 88,378 84,403 81,589 82,090 37,615 77,282 99,003 93,941 120,711 3 More than five years 57,462 64,960 42,039 63,933 54,023 48,984 44,004 16,996 41,462 64,020 65,701 76,617 4 Inflation-indexed 1,096 750 481 666 572 575 315 318 743 2,950 1,309 827 Federal agency 5 Discount notes 45,499 48,022 44,156 45,494 49,761 43,040 41,715 43,577 39,820 43,264 48,908 48,762 Coupon securities, by maturity 6 One year or less 884477 779933 792 1,035 910 695 971 589 683 1,905 1,779 1,716 7 More than one year, but less than or equal to five years 6,420 5,878 4,356 4,758 6,739 3,972 4,506 2,071 4,500 10,158 7,655 9,228 8 More than five years 3,874 4,092 2,886 2,574 2,961 6,025 2,159 894 1,810 14,777 4,311 5,897 9 Mortgage-backed 63,248 55,736 43,291 37,444 86,488 49,435 28,244 10,951 41,333 96,924 74,707 46,093 By type of counterparty With interdealer broker 10 U.S. Treasury 93,305 107,232 77,746 106,097 94,137 83,392 81,486 45,922 78,684 97,212 98,129 111,093 11 Federal agency 4,969 4,907 3,788 4,066 5,093 3,884 3,690 2,597 3,372 6,498 5,476 6,697 12 Mortgage-backed 21,540 20,443 16,453 16,416 32,077 18,734 11,990 3,223 15,946 32,779 28,794 20,734 With other 13 U.S. Treasury 79,898 92,740 69,595 90,548 78,569 75,224 76,573 43,008 71,633 96,893 89,337 110,452 14 Federal agency 51,671 53,879 48,403 49,796 55,277 49,848 45,660 44,533 43,442 63,604 57,177 58,906 15 Mortgage-backed 41,708 35,294 26,838 21,029 54,411 30,701 16,254 7,728 25,386 64,145 45,914 25,359 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0 n.a. Coupon securities, by maturity 17 Five years or less 2,543 3,290 3,357 5,355 5,427 4,078 3,085 668 2,782 3,550 2,921 3,222 18 More than five years 12,576 16,051 12,101 22,842 17,396 11,562 13,542 4.105 11,224 16,249 19,068 19,182 19 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 20 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 21 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 22 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 0 23 More than five years 0 0 0 0 0 0 0 0 0 0 0 0 24 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 0 OPTIONS TRANSACTIONS4 By type of underlying security 25 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 26 Five years or less 1,039 1,823 1,046 1,376 1,496 677 1,466 456 1,105 1,676 1,623 1,439 27 More than five years 3,802 4,785 3,837 4,203 3,380 3,663 4,932 2,789 5,118 7,460 3,941 4,987 28 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 31 More than one year, but less than or equal to five years 0 0 0 n.a. n.a. n.a. 0 0 n.a. 0 0 n.a. 32 More than five years 0 0 0 0 0 0 n.a. 0 n.a. 0 0 0 33 Mortgage-backed 498 671 517 361 761 555 503 312 432 370 1,203 590 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1999 1999, week ending 2000, week ending Oct. Nov. Dec. Dec. 1 Dec. 8 Dec. 15 Dec. 22 Dec. 29 Jan. 5 Jan. 12 Jan. 19 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S.'Treasury bills 7,071 9,579 21,386 10,823 19,084 27,359 23,356 16,191 25,113 22,050 11,137 Coupon securities, by maturity 2 Five years or less -33,679 -28,880 -24,620 -29,331 -29,504 -25,835 -18,437 -21,275 -34,261 -42,507 -43,659 3 More than five years -22,651 -23,250 -29,848 -25,728 -31,604 -26,904 -29,629 -31,002 -32,798 -32,520 -33,589 4 Inflation-indexed 3,781 3,164 2,438 3,030 2,814 2,577 2,317 2,041 2,150 2,739 3,303 Federal agency 5 Discount notes 40,900 43,941 45,011 43,663 47,233 46,687 40,705 44,790 47,888 37,799 38,342 Coupon securities, by maturity 6 One year or less 6,085 6,270 5,436 7,344 5,753 5,256 5,495 5,043 5,179 6,271 6,797 7 More than one year, but less than or equal to five years 4,438 4,533 1,910 3,416 4,147 2,822 368 114 1,824 6,276 8,669 8 More than five years 2,913 3,464 2,707 3,403 3,123 2,855 2,305 2,187 3,606 7,382 7,414 9 Mortgage-backed 20,356 23,743 25,603 21,490 24,714 27,783 24,679 26,331 23,834 24,008 27,317 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills n.a. n.a. 0 n.a. n.a. 0 n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 11 Five years or less 10,122 4,304 7,115 7,879 8,087 5,950 6,602 6,865 10,084 13,989 12,347 12 More than five years 9,652 324 408 30 189 -2,441 1,360 1,455 4,336 7,687 10,229 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 -1,669 -594 -1,927 -1,794 -1,663 -920 -2,237 -2,483 -3,413 -4,289 -4,939 21 More than five years -3,571 -1,103 -11 -951 253 526 -655 593 -2,202 -3,562 -3,911 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 69 175 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0 0 26 More than five years 28 29 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27 Mortgage-backed 1,011 -272 1,260 535 1,117 1,005 1,439 1,360 2,043 1,804 2,498 Financing5 Reverse repurchase agreements 28 Overnight and continuing 288,446 288,146 260,169 303,968 273,027 272,027 250,497 237,547 264,786 273,333 286,065 29 Term 806,146 799,629 847,806 770,619 825,534 861,296 884,556 881,410 670,899 735,505 718,016 Securities borrowed 30 Overnight and continuing 255,880 239,510 224,527 237,180 232,345 229,317 216,402 220,331 217,192 225,106 245,091 31 Term 96,565 97,728 117,116 95,703 99,839 109,328 128,040 130,567 130,230 122,843 105,809 Securities received as pledge 32 Overnight and continuing 2,395 1,965 1,647 1,825 1,674 1,588 1,653 n.a. n.a. n.a. n.a. 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 694,423 673,755 647,385 697,741 670,499 682,401 644,426 587,167 639,876 670,637 708,930 35 Term 683,085 715,763 761,776 688,027 727,690 762,671 795,103 823,824 581,011 626,160 601,385 Securities loaned 36 Overnight and continuing 9,040 9,049 8,843 8,661 8,599 8,949 9,086 9,012 7,970 8,711 9,012 37 Term 7,090 6,744 7,283 6,633 6,642 7,055 7,277 8,040 8,026 7,855 6,544 Securities pledged 38 Overnight and continuing 54,712 50,099 49,236 49,781 49,688 52,467 48,797 46,612 46,789 44,444 50,609 39 Term 8,382 6,745 10,713 5,989 6,746 8,343 13,601 13,866 14,118 13,837 8,608 Collateralized loans 40 Total 25,763 23,590 14,892 18,639 8,831 9,742 13,434 23,821 26,109 22,766 17,113 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 NonfinancialS tatistics • April 2000 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1999 Agency 11999955 11999966 11999977 11999988 July Aug. Sept. Oct. Nov. 1 Federal and federally sponsored agencies 844,611 925,823 1,022,609 1,296,477 1,457,925 1,491,900 1,525,916 n.a. 2 Federal agencies 37,347 29,380 27,792 26,502 26,204 26,107 26,384 28,218 3 Defense Department1 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 84 102 205 105 109 114 126 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 26,198 26,101 26,378 28,212 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 1,431,721 1,465,793 1,499,532 n.a. 11 Federal Home Loan Banks 243,194 263,404 313,919 382,131 444,775 458,320 481,639 489,401 502,842 12 Federal Home Loan Mortgage Corporation 119,961 156,980 169,200 287,396 334,575 340,972 341,144 352,487 357,317 13 Federal National Mortgage Association 299,174 331,270 369,774 460,291 502,653 517,200 524,880 527,403 540,364 14 Farm Credit Banks8 57,379 60,053 63,517 63,488 66,922 67,269 67,938 68,338 67,654 15 Student Loan Marketing Association9 47,529 44,763 37,717 35,399 40,843 40,310 41,921 44,224 44,402 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 78,681 58,172 49,090 44,129 39,901 39,341 43,116 42,466 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 2,044 1,431 552 f f 21 Postal Service6 5,765 n.a. n.a. 1 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. n.a. 2 2 4 3 U Te n n it n e e d s s S e t e a t V es a l R le a y i lw Au 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 I T 1 • 1 T 1 i 1 Other lending14 25 Farmers Home Administration 21,015 18,325 13,530 9,500 7,445 7,270 7,125 7,035 26 Rural Electrification Administration 17,144 16,702 14,898 14,091 13,944 13,969 13,885 13,998 27 Other 29,513 21,714 20,110 20,538 18,512 18,102 22,106 21,433 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 2000 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. Jan. 1 All issues, new and refunding1 214,694 262,342 215,427 23,428 18,671 15,746 18,433 17,497 17,428 14,751 8,969 By type of issue 1 General obligation 69,934 87,015 73,308 10,997 6,206 4,268 5,171 4,183 4,996 3,715 3,454 3 Revenue 134,989 175,327 142,120 12,431 12,465 11,478 13,262 13,314 12,433 11,035 5,516 By type of issuer 4 State 18,237 23,506 16,376 1,236 2,194 911 2,341 1,753 929 834 863 5 Special district or statutory authority2 134,919 178,421 152,418 18,414 13,572 11,578 13,449 12,186 12,613 10,640 5,784 6 Municipality, county, or township 70,558 60,173 46,634 3,779 2,906 3,257 2,642 3,557 3,886 3,277 2,322 7 Issues for new capital 135,519 160,568 161,065 19,509 12,172 12,530 14,973 14,908 14,084 11,475 8,009 By use of proceeds 8 Education 31,860 36,904 36,563 3,793 3,415 2,842 2,885 2,049 2,732 3,095 2,189 9 Transportation 13,951 19,926 17,394 1,650 1,264 1,955 1,886 1,674 892 1,201 1,064 10 Utilities and conservation 12,219 21,037 15,098 1,594 535 1,038 1,976 1,176 1,893 1,008 588 11 Social welfare 27,794 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Industrial aid 6,667 8,594 9,099 739 850 585 1,271 726 668 707 89 13 Other purposes 35,095 42,450 47,896 7,195 2,729 3,255 3,941 4,509 5,213 3,141 2,885 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,, 11999977 11999988 11999999 oorr iissssuueerr May June July Aug. Sept. Oct. Nov. Dec. 1 All issues' 929,256 1,128,491 1,073,107 110,475 96,608 96,608 83,466 82,414 58,613 85,015r 50,615 2 Bonds2 811,376 1,001,736 941,309 94,713 88,338 83,546 75,708 75,807 47,103 61,033 42,487 By type of offering 3 Sold in the United States 708,188 923,771 818,684 86,730 79,031 69,451 63,383 65,679 37,721 53,908 36,499 4 Sold abroad 103,188 77,965 122,615 7,983 9,306 14,095 12,325 10,128 9,382 7,125 5,989 MEMO 5 Private placements, domestic 54,990 37,845 n.a. 5,022 6,441 2,133 1,670 1,372 1,467 n.a. n.a. By industry group 6 Nonfinancial 222,603 307,935 293,974 32,843 24,531 25,526 22,704 20,655 13,990 24,283 1144,,662255 7 Financial 588,773 693,801 647,335 61,870 63,807 58,020 53,005 55,151 33,112 36,750 27,863 8 Stocks3 117,880 126,755 131,367 15,762 8,270 13,062 7,758 6,607 11,510 23,982r 8,128 By type of offering 9 Public 117,880 126,755 131,367 15,762 8,270 13,062 7,758 6,607 11,510 23,982r 8,128 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 60,386 74,113 110,671 10,425 6,436 11,589 6,379 5,647 10,961 22,610r 7,838 12 Financial 57,494 52,642 20,696 5,337 1,834 1,473 1,379 960 549 l,372r 290 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 NonfinancialS tatistics • April 2000 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 2000 IItteemm 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. Jan. 1 Sales of own shares2 1,461,430 1,791,894 138,502 140,926 132,991 132,226 140,738 155,490 185,898 225,367 2 Redemptions of own shares 1,217,022 1,621,987 117,953 128,173 125,908 126,207 124,052 143,688 178,855 204,639 3 Net sales3 244,408 169,906 20,550 12,754 7,084 6,019 16,686 11,801 7,042 20,728 4 Assets4 4,173,531 5,233,191 4,650,385 4,585,131 4,548,784 4,498,964 4,705,746 4,874,733 5,233,191 5,109,386 5 Cash5 191,393 219,189 214,779 209,061 209,349 209,709 225,762 214,751 219,189 221,964 6 Other 3,982,138 5,014,002 4,435,607 4,376,070 4,339,435 4,289,255 4,479,985 4,659,982 5,014,002 4,887,422 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 1998 1999 AAccccoouunntt 11999977 11999988 11999999 Q1 Q2 Q3 Q4 QL Q2 Q3 Q4 1 Profits with inventory valuation and capital consumption adjustment 837.9 846.1 n.a. 858.3 847.9 843.8 834.3 882.0 875.5 879.2 n.a. 2 Profits before taxes 795.9 781.9 n.a. 788.9 792.0 780.1 766.7 818.1 835.8 853.8 n.a. 3 Profits-tax liability 238.3 240.2 n.a. 239.9 241.1 244.3 235.6 248.0 254.4 259.4 n.a. 4 Profits after taxes 557.6 541.7 n.a. 548.9 550.9 535.8 531.0 570.1 581.4 594.3 n.a. 5 Dividends 333.7 348.6 364.7 346.5 347.3 348.4 352.2 356.4 361.5 367.3 373.5 6 Undistributed profits 223.9 193.1 n.a. 202.5 203.6 187.4 178.8 213.7 219.9 227.0 n.a. 7 Inventory valuation 7.4 20.9 n.a. 29.5 13.6 19.8 20.8 13.3 -13.6 -26.7 n.a. 8 Capital consumption adjustment 34.6 43.3 52.0 39.9 42.4 43.9 46.9 50.6 53.2 52.1 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 11999966 11999977 11999988 Q2 Q3 Q4 QL Q2 Q3 ASSETS 1 Accounts receivable, gross2 637.1 663.3 711.7 676.0 687.6 711.7 733.8 756.5 776.5 2 Consumer 244.9 256.8 261.8 251.3 254.0 261.8 261.7 269.2 271.3 3 Business 309.5 318.5 347.5 334.9 335.1 347.5 362.8 373.7 382.9 4 Real estate 82.7 87.9 102.3 89.9 98.5 102.3 109.2 113.5 122.3 5 LESS: Reserves for unearned income 55.6 52.7 56.3 53.2 52.4 56.3 52.9 53.4 54.0 6 Reserves for losses 13.1 13.0 13.8 13.2 13.2 13.8 13.4 13.4 13.6 7 Accounts receivable, net 568.3 597.6 641.6 609.6 622.0 641.6 667.6 689.7 708.8 8 All other 290.0 312.4 337.9 340.1 313.7 337.9 363.3 373.2 368.6 9 Total assets 858.3 910.0 979.5 949.7 935.7 979.5 1,030.8 1,062.9 1,077.4 LIABILITIES AND CAPITAL 10 Bank loans 19.7 24.1 26.3 22.3 24.9 26.3 24.8 25.1 27.0 11 Commercial paper 177.6 201.5 231.5 225.9 226.9 231.5 222.9 231.0 205.3 Debt 12 Owed to parent 60.3 64.7 61.8 60.0 58.3 61.8 64.6 65.4 84.7 13 Not elsewhere classified 332.5 328.8 339.7 348.7 337.6 339.7 366.7 383.1 396.2 14 All other liabilities 174.7 189.6 203.2 188.9 185.4 203.2 220.3 226.1 216.0 15 Capital, surplus, and undivided profits 93.5 101.3 117.0 103.9 103.6 117.0 131.5 132.2 148.2 16 Total liabilities and capital 858.3 910.0 979.5 949.7 936.6 979.5 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 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec.p Seasonally adjusted 1 Total 810.5 875.8 175.7 954.7 967.4 972.8 978.5 984.4 990.8 2 Consumer 327.9 352.8 175.7 375.9 380.8 381.9 384.0 385.2 381.2 3 Real estate 121.1 131.4 152.7 144.2 146.7 148.9 149.3 152.7 154.7 4 Business 361.5 391.6 446.5 434.6 439.9 442.0 445.1 446.5 455.0 Not seasonally adjusted 5 Total 818.1 884.0 177.4 948.9 962.2 968.4 976.7 985.9 1,000.1 6 Consumer 330.9 356.1 177.4 378.1 382.0 383.1 384.5 386.5 384.7 7 Motor vehicles loans 87.0 103.1 114.5 108.5 112.7 109.5 110.2 111.6 114.5 8 Motor vehicle leases 96.8 93.3 99.1 97.0 98.3 98.1 98.4 99.1 98.3 9 Revolving2 38.6 32.3 30.0 32.8 33.0 30.7 31.5 30.5 30.0 10 Other3 34.4 33.1 32.9 32.0 31.6 32.8 32.4 33.2 32.9 Securitized assets4 11 Motor vehicle loans 44.3 54.8 74.6 68.3 68.0 73.5 74.1 74.6 71.1 1? Motor vehicle leases 10.8 12.7 10.0 11.1 10.8 10.6 10.3 10.0 9.7 13 Revolving .0 8.7 10.2 9.9 9.4 10.2 10.1 10.2 10.5 14 Other 19.0 18.1 17.4 18.4 18.1 17.8 17.6 17.4 17.7 15 Real estate 121.1 131.4 152.7 144.2 146.7 148.9 149.3 152.7 154.7 16 One- to four-family 59.0 75.7 89.4 83.6 86.0 87.7 87.7 89.4 88.2 17 Other 28.9 26.6 37.1 33.1 33.7 34.6 35.1 37.1 38.3 Securitized real estate assets4 18 One- to four-family 33.0 29.0 25.9 27.2 26.8 26.5 26.2 25.9 28.0 19 Other .2 .1 .2 .2 .2 .2 .2 .2 .2 20 Business 366.1 396.5 446.6 426.7 433.5 436.3 442.9 446.6 460.7 21 Motor vehicles 63.5 79.6 85.4 78.8 78.6 80.3 84.3 85.4 87.8 27. Retail loans 25.6 28.1 33.7 31.7 33.3 34.5 34.9 33.7 33.2 23 Wholesale loans5 27.7 32.8 32.6 27.9 26.8 26.8 30.3 32.6 34.7 24 Leases 10.2 18.7 19.2 19.3 18.5 19.0 19.1 19.2 19.9 25 Equipment 203.9 198.0 210.8 208.5 210.5 208.0 210.7 210.8 222.9 26 Loans 51.5 50.4 49.1 52.9 53.1 48.2 49.4 49.1 57.3 27 Leases 152.3 147.6 161.6 155.6 157.4 159.8 161.3 161.6 165.7 28 Other business receivables6 51.1 69.9 98.2 89.2 92.7 94.7 97.1 98.2 95.4 Securitized assets4 29 Motor vehicles 33.0 29.2 30.6 28.4 30.4 31.0 28.8 30.6 31.5 30 Retail loans 2.4 2.6 3.0 2.8 2.7 2.6 2.5 3.0 2.9 31 Wholesale loans 30.5 24.7 25.6 23.5 25.7 26.4 24.3 25.6 26.4 37, Leases .0 1.9 2.0 2.0 2.0 2.0 2.0 2.0 2.1 33 Equipment 10.7 13.0 14.0 13.8 13.5 14.6 14.3 14.0 14.6 34 Loans 4.2 6.6 7.4 7.1 6.9 7.7 7.6 7.4 7.9 35 Leases 6.5 6.4 6.6 6.7 6.6 6.9 6.8 6.6 6.8 36 Other business receivables6 4.0 6.8 7.7 7.9 7.8 7.7 7.7 7.7 8.4 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidiarbreakdowns have been obtained for some components. In addition, previously unavailable ies of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly 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 Nonfinancial Statistics • April 2000 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1999 2000 IItteemm 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. Jan. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 207.6 213.8 210.3 214.4 220.8 216.3 223.7 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 158.2 163.1 161.8 165.1 167.0 167.2 169.9 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 78.6 78.3 78.8 79.0 77.4 78.6 77.9 4 Maturity (years) 28.2 28.4 28.8 28.5 28.5 29.1 29.1 29.0 29.0 29.1 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .83 .68 .64 .71 .73 .71 .75 Yield (percent per year) 6 Contract rate' 7.57 6.95 6.94 7.16 6.99 6.99 7.06 7.13 7.18 7.34 7 Effective rate1,3 7.73 7.08 7.06 7.29 7.09 7.09 7.17 7.24 7.28 7.45 8 Contract rate (HUD series)4 7.76 7.00 7.45 7.75 7.87 7.76 7.77 7.79 7.95 8.21 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.00 8.10 8.05 8.02 8.06 8.55 8.56 10 GNMA securities6 7.26 6.43 7.03 7.28 7.53 7.42 7.52 7.37 7.58 7.84 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 480,651 495,302 504,938 509,990 518,337 523,941 527,977 12 FHA/VA insured 31,925 33,770 55,318 44,132 47,846 49,456 50,639 52,632 55,318 57,369 13 Conventional 284,753 380,745 468,623 436,519 447,456 455,482 459,351 465,705 468,623 470,608 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 14,004 21,094 15,200 10,057 14,683 11,416 9,035 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 12,966 18,153 7,998 10,480 12,050 9,931 9,130 16 To sell8 1,298 1,880 5,900 260 478 609 1,710 381 1,592 1,287 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 1/ Total 164,421 255,010 324,443 300,093 306,214 315,968 318,682 323,027 324,443 325,914 18 FHA/VA insured 177 785 1,848 1,735 1,708 1,689 1,744 1,848 1,848 1,806 19 Conventional 164,244 254,225 322,595 298,358 304,506 314,279 316,938 321,179 322,595 324,108 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 17,602 18,674 15,238 13,323 11,869 9,335 12,595 21 114,258 250,565 233,031 16,835 17,468 14,153 12,671 11,129 8,589 12,417 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 14,988 18,951 14,608 10,810 10,501 11,587 8,341 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mortgages; from U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured exclude swap activity. by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A35 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1998 1999 Type of holder and property 11999955 11999966 11999977 Q3 Q4 QL Q2 Q3 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 2 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 4,647,881 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 Farm 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 2,321,982 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 12 Savings institutions 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 20 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 26 Farmers Home Administration 41,791 41,596 41,195 40,907 40,851 40,691 40,766 40,766 27 One- to four-family 17,705 17,303 17,253 17,025 16,895 16,777 16,653 16,653 28 Multifamily 11,617 11,685 11,720 11,736 11,739 11,731 11,735 11,735 29 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 32 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 42 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 Administration 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 Nonfinancial Statistics • April 2000 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1999 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999 July Aug. Sept. Oct. Nov.' Dec. Seasonally adjusted 1 Total 1,234,122 1,300,491 1,398,753 1,356,404 1,363,184 1,366,575 l,371,809r 1,387,573 1,398,753 2 Revolving 531,295 560,653 592,822 583,309 584,523 584,512 584,280r 588,680 592,822 3 Nonrevolving2 702,828 739,838 805,931 773,096 778,661 782,063 787,529r 798,894 805,931 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,431,767 1,349,610 1,364,404 1,370,079 l,376,926r 1,394,238 1,431,767 By major holder 5 Commercial banks 512,563 508,932 506,438 477,908 476,561 472,524 473,507 482,392 506,438 6 Finance companies 160,022 168,491 177,368 173,374 177,331 172,956 174.081 175,296 177,368 7 Credit unions 152,362 155,406 170,050 159,920 162,412 164,055 165,912 167,887 170,050 8 Savings institutions 47,172 51,611 62,949 58,126 59,091 60,055 61.020 61,984 62,949 9 Nonfinancial business 78,927 74,877 80,249 68,235 68,896 67,456 67,952r 70,263 80,249 10 Pools of securitized assets3 313,057 372,425 434,713 412,047 420,113 433,033 434,454 436,416 434,713 By major type of credit4 11 Revolving 555,858 586,528 620,158 575,499 580,691 581,361 583,048r 591,051 620,158 12 Commercial banks 219,826 210,346 192,020 175,928 170,272 168,882 167,469 172,345 192,020 13 Finance companies 38,608 32,309 30,003 32,846 33,014 30,731 31,453 30,512 30,003 14 Credit unions 19,552 19,930 20,809 19,054 19,335 19,489 19,452 19,739 20,809 15 Savings institutions 11,441 12,450 14,147 13,004 13,233 13,461 13,690 13,918 14,147 16 Nonfinancial business 44,966 39,166 42,783 34,830 35,421 34,156 34,534r 36,002 42,783 17 Pools of securitized assets3 221,465 272,327 320,396 299,837 309,416 314,642 316,450 318,535 320,396 18 Nonrevolving 708,245 745,214 811,609 774,111 783,713 788,718 793,878r 803,187 811,609 19 Commercial banks 292,737 298,586 314,418 301,980 306,289 303,642 306,038 310,047 314,418 20 Finance companies 121,414 136,182 147,365 140,528 144,317 142,225 142,628 144,784 147,365 21 Credit unions 132,810 135,476 149,241 140,866 143,077 144,566 146,460 148,148 149,241 22 Savings institutions 35,731 39,161 48,802 45,122 45,858 46,594 47,330 48,066 48,802 23 Nonfinancial business 33,961 35,711 37,466 33,405 33,475 33,300 33,418r 34,261 37,466 24 Pools of securitized assets3 91,592 100,098 114,317 112,210 110,697 118,391 118,004 117,881 114,317 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 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 n.a. n.a. 8.44 n.a. n.a. 8.66 n.a. 2 24-month personal 13.90 13.74 13.39 n.a. n.a. 13.38 n.a. n.a. 13.52 n.a. Credit card plan 3 All accounts 15.77 15.71 15.21 n.a. n.a. 15.08 n.a. n.a. 15.13 n.a. 4 Accounts assessed interest 15.57 15.59 14.81 n.a. n.a. 14.79 n.a. n.a. 14.77 n.a. Auto finance companies 5 New car 7.12 6.30 6.66 6.60 6.68 6.28 6.47 7.07 7.44 7.32 6 Used car 13.27 12.64 12.60 12.31 12.67 12.96 13.13 13.28 13.27 13.28 OTHER TERMS3 Maturity (months) 7 New car 54.1 52.1 52.7 52.3 52.0 51.7 52.1 53.2 53.9 53.4 8 Used car 51.0 53.5 55.9 56.0 56.1 55.8 55.9 55.8 55.8 55.6 Loan-to-value ratio 9 New car 92 92 92 92 92 92 92 92 91 91 10 Used car 99 99 99 99 99 100 100 100 99 99 Amount financed (dollars) 11 New car 18,077 19,083 19,880 19,722 19,873 20,012 20,154 20,335 20,517 20,699 12 Used car 12,281 12,691 13,642 13,816 13,609 13,374 13,449 13,613 13,777 13,970 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 A3 7 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 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial 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 2 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 3 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 9 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 11 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 12 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 1.3 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 15 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 316.3 350.9 354.0 327.3 471.9 465.1 420.3 473.4 528.6 556.4 517.1 566.0 18 Nonfinancial 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 20 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 21 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 24 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 25 Bonds 12.2 49.7 55.8 47.2 25.1 42.5 119.2 -27.2 -34.2 .9 -12.6 29.4 26 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 287.5 204.1 231.5 212.8 470.9 249.2 405.4 555.8 673.3 592.2 579.1 653.2 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 66.3 31.1 72.7 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 42 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 NonfinancialS tatistics • April 2000 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Ql Q2 Q3 Q4 Ql Q2 Q3 All sectors 55552222 TTTToooottttaaaallll nnnneeeetttt bbbboooorrrrrrrroooowwwwiiiinnnngggg,,,, aaaallllllll sssseeeeccccttttoooorrrrssss 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 55553333 OOOOppppeeeennnn mmmmaaaarrrrkkkkeeeetttt ppppaaaappppeeeerrrr 35.7 74.3 102.6 184.1 193.1 343.0 113.8 232.7 83.0 161.1 34.1 187.0 55554444 UUUU....SSSS.... ggggoooovvvveeeerrrrnnnnmmmmeeeennnntttt sssseeeeccccuuuurrrriiiittttiiiieeeessss 448.1 348.5 376.5 235.9 418.3 234.7 377.1 442.3 619.1 517.0 467.0 570.1 55555555 MMMMuuuunnnniiiicccciiiippppaaaallll sssseeeeccccuuuurrrriiiittttiiiieeeessss -35.9 -48.2 2.6 71.4 96.8 113.5 101.3 82.9 89.6 100.7 48.0 74.8 55556666 CCCCoooorrrrppppoooorrrraaaatttteeee aaaannnndddd ffffoooorrrreeeeiiiiggggnnnn bbbboooonnnnddddssss 157.3 336.7 348.9 406.7 535.6 667.6 775.8 258.2 440.9 765.7 564.8 380.2 55557777 BBBBaaaannnnkkkk llllooooaaaannnnssss nnnn....eeee....cccc 62.9 114.7 92.1 128.2 145.0 97.6 167.9 171.6 143.0 62.1 38.3 99.6 55558888 OOOOtttthhhheeeerrrr llllooooaaaannnnssss aaaannnndddd aaaaddddvvvvaaaannnncccceeeessss 50.4 70.1 62.5 102.8 158.5 101.0 112.5 157.8 262.7 189.8 98.9 231.5 55559999 MMMMoooorrrrttttggggaaaaggggeeeessss 186.8 211.0 297.6 315.1 511.4 487.3 420.5 512.2 625.7 594.0 581.8 621.3 66660000 CCCCoooonnnnssssuuuummmmeeeerrrr ccccrrrreeeeddddiiiitttt 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 66661111 TTTToooottttaaaallll nnnneeeetttt iiiissssssssuuuueeeessss 113.4 131.5 209.1 165.6 75.2 215.2 262.0 -166.7 -9.8 121.3 113.2 57.0 66662222 CCCCoooorrrrppppoooorrrraaaatttteeee eeeeqqqquuuuiiiittttiiiieeeessss 12.8 -16.0 -28.5 -99.6 -199.4 -107.1 -115.8 -340.1 -234.6 -132.0 -94.9 -69.6 66663333 NNNNoooonnnnffffiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss -44.9 -58.3 -69.5 -114.4 -267.0 -139.2 -129.1 -308.4 -491.3 -65.7 -374.0 -153.0 66664444 FFFFoooorrrreeeeiiiiggggnnnn sssshhhhaaaarrrreeeessss ppppuuuurrrrcccchhhhaaaasssseeeedddd bbbbyyyy UUUU....SSSS.... rrrreeeessssiiiiddddeeeennnnttttssss 48.1 50.4 60.0 42.0 77.8 14.0 12.3 -32.8 317.4 -33.4 270.9 76.7 66665555 FFFFiiiinnnnaaaannnncccciiiiaaaallll ccccoooorrrrppppoooorrrraaaattttiiiioooonnnnssss 9.6 -8.1 -19.0 -27.1 -10.2 18.1 1.0 1.0 -60.8 -32.9 8.2 6.7 66666666 MMMMuuuuttttuuuuaaaallll ffffuuuunnnndddd sssshhhhaaaarrrreeeessss 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. 1 (780) quarterly statistical release, tables F.2 through F.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 7 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 5 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 n 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 20 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 ?? 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 24 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 ?5 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 28 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 29 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 3 3 ? 3 B Fu ro n k d e in rs g a c n o d r p d o e r a a l t e io rs n s - - 4 1 4 7 . . 2 8 -2 9 1 0 . . 2 1 -1 1 5 4 . . 7 0 5 1 5 4 . . 6 9 -17 4 . . 4 7 24 8 5 6 . . 8 0 -1 -1 8 4 3 . . 3 1 -6 7 0 7 . . 1 0 -209 7 . . 1 2 1 2 8 7 4 . . 9 5 -1 1 9 1 1 1 .0 .0 3 1 0 5 . . 4 7 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 8.1 88..99 88..66 --1144..00 --55..44 --88..55 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 .0 .0 .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 42 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 52 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 .6 .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.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. El and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • April 2000 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1998 1999 11999988 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,734.9 14,480.3 15,265.8 16,289.9 15,527.4 15,747.8 15,962.2 16,289.9 16,604.3 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 3 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 10,098.2 10,698.5 11,461.0 12,537.7 11,696.6 11,998.8 12,242.0 12,537.7 12,844.6 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 9 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 736.9 770.4 839.5 913.8 863.5 873.1 886.8 913.8 956.7 952.1 967.5 11 Mortgages 4,580.0 4,869.7 5,169.9 5,656.6 5,278.5 5,385.3 5,510.0 5,656.6 5,790.5 5,945.2 6,105.3 12 Home 3,510.4 3,721.9 3,959.5 4,327.5 4,043.1 4,122.0 4,222.4 4,327.5 4,420.3 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 1,319.3 1,340.4 1,370.2 By borrowing sector 17 Household 4,782.8 5,108.0 5,438.0 5,909.9 5,499.7 5,618.8 5,752.1 5,909.9 5,993.0 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 5,628.4 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 4,028.6 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 1,437.4 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 14,176.4 14,998.9 15,836.0 16,893.6 16,119.0 16,364.8 16,574.9 16,893.6 17,212.1 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 6,809.2 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 3,375.1 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 1,968.9 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 1,463.3 1,546.8 1,597.5 48 Broken? 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 ... 18,455.1 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 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 4,287.2 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 1,307.0 1,331.2 1,382.6 60 Mortgages 4,604.0 4,901.6 5,216.7 5,728.2 5,327.5 5,439.4 5,574.0 5,728.2 5,867.2 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 1,319.3 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 A3 7 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1998 1999 Transaction category or sector 1995 1996 1997 11999988 Ql Q2 Q3 Q4 Ql 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 2 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 12 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 13 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 t 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 20 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 21 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 22 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 23 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 24 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 25 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 26 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 28 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 29 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 35 Official foreign exchange 63.7 53.7 48.9 60.1 48.2 50.1 54.5 60.1 53.6 50.9 52.1 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 42 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 Nonfinancial Statistics • April 2000 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 1999 MMeeaassuurree 11999977 11999988 11999999 May June July Aug. Sept. Oct. Nov. Dec. Jan.? 1 Industrial production1 127.1 132.4 137.1r 136.2 136.6 137.4 137.7 138.1 139.1r 139.5r 140.1r 141.5 Market groupings 2 Products, total 119.6 123.7 126.5r 126.8 126.8 126.9 127.6 127.6 128.5r 128.2r 128.4r 129.6 3 Final, total 121.1 125.4 128.0r 128.2 128.3 128.6 129.5 129.1 130.2r 129.9r 130.0r 131.6 4 Consumer goods 115.1 116.2 116.9r 116.8 117.0 116.8 117.6 117.1 118.2r 117.7r 118.2r 119.3 5 Equipment 132.1 142.7 148.9r 148.4 148.3 149.3 150.5 150.2 151.2r 151.2r 150.9r 153.3 6 Intermediate 115.3 118.8 122 ,lr 122.3 121.7 121.5 121.7 122.6 123.2r 122.8r 123. lr 123.3 7 Materials 139.0 146.5 154.8r 151.7 153.1 155.0 154.6 155.7 156.8 158.7r 160.T 161.8 Industry groupings 8 Manufacturing 130.1 136.4 142.2r 141.0 141.4 142.0 142.5 142.9 144.2r 144.9r 145.2r 146.6 9 Capacity utilization, manufacturing (percent)2. . 82.4 80.9 79.8 79.7 79.6 79.7 79.7 79.7 80.2 80.3r 80.2r 80.6 10 Construction contracts3 144.3r 160.9r 175.0r 180.0r 185.0r 181.0r 165.0r 170.0r 170.0 170.0r 168.0 172.0 11 Nonagricultural employment, total4 120.3 123.4 126.2 125.7 126.0 126.3 126.5 126.6 126.9 127.1 127.4 127.8 12 Goods-producing, total 101.2 102.7 102.3 102.1 102.1 102.3 101.9 102.1 102.1 102.4 102.4 103.0 13 Manufacturing, total 98.3 98.8 97.0 97.0 96.8 97.1 96.7 96.7 96.6 96.6 96.6 96.7 14 Manufacturing, production workers 99.6 99.8 97.8 97.8 97.5 98.0 97.4 97.4 97.3 97.4 97.3 97.5 15 Service-producing 126.5 130.0 133.8 133.2 133.6 134.0 134.3 134.4 134.7 135.0 135.4 135.7 16 Personal income, total 175.4 185.7 196.6 194.9 196.4 197.0 197.9 198.1 200.4 201.2 201.8 n.a. 17 Wages and salary disbursements 171.3 184.4 197.0 195.2 196.3 197.8 198.6 199.5 200.7 201.3 202.8 n.a. 18 Manufacturing 144.6 152.4 156.9 155.9 156.8 158.2 158.0 158.6 159.7 158.9 159.1 n.a. 19 Disposable personal income5 172.9 181.7 191.9 190.3 191.8 192.1 193.4 193.0 195.6 196.3 196.7 n.a. 20 Retail sales5 170.1 178.5 194.4 192.8 192.6 194.5 197.1 197.1 197.7 200.3 203.8 204.5 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 166.2 166.2 166.7 167.1 167.9 168.2 168.3 168.3 168.7 22 Producer finished goods (1982=100) 131.8 130.7 133.1 132.4 132.7 132.9 133.7 134.7r 135.0 135.0 135.0 134.7 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, U.S. Department of Commerce, and other sources. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted 1999 2000 CCaatteeggoorryy 11999977 11999988 11999999rr June July Aug. Sept. Oct. Nov.r Dec. Jan. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 139,332 139,336 139,372 139,475 139,697 139,834 140,108 140,910 Employment 2 Nonagricultural industries3 126,159 128,085 130,207 130,068 130,121 130,296 130,471 130,702 130,788 131,141 131,850 3 Agriculture 3,399 3,378 3,281 3,330 3,278 3,234 3,179 3,238 3,310 3,279 3,371 Unemployment 4 Number 6,739 6,210 5,880 5,934 5,937 5,842 5,825 5,757 5,736 5,688 5,689 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.3 4.3 4.2 4.2 4.1 4.1 4.1 4.0 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 128,443 128,816 128,945 129,048 129,332 129,589 129,905 130,292 7 Manufacturing 18,675 18,772 18,431 18,396 18,449 18,378 18,366 18,356 18,361 18,355 18,368 8 Mining 596 590 535 526 528 524 527 528 527 529 531 9 Contract construction 5,691 5,985 6,273 6,258 6,270 6,246 6,293 6,314 6,369 6,391 6,507 10 Transportation and public utilities 6,408 6,600 6,792 6,781 6,799 6,813 6,831 6,841 6,862 6,896 6,912 11 Trade 28,614 29,127 29,792 29,789 29,915 29,919 29,903 29,955 29,972 30,067 30,129 12 Finance 7,109 7,407 7,632 7,636 7,647 7,650 7,653 7,668 7,675 7,687 7,678 13 Service 36,040 37,526 39,000 38,952 39,055 39,205 39,257 39,433 39,554 39,659 39,811 14 Government 19,557 19,819 20,161 20,105 20,153 20,210 20,218 20,237 20,269 20,321 20,356 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 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 134.6 136.1 137.7 139.6 167.3 169.2 170.7 172.3 80.4 80.5 80.7 81.0 2 Manufacturing 139.2 140.9 142.5 144.8 174.8 176.9 178.7 180.6 79.6 79.6 79.7 80.2 3 Primary processing3 122.2 122.5 123.4 125.3 147.4 148.2 149.0 149.8 82.9 82.7 82.8 83.6 4 Advanced processing4 148.1 150.5 152.5 155.1 188.6 191.4 193.7 196.1 78.5 78.6 78.7 79.1 Durable goods 167.1 170.8 174.4 177.2 210.3 214.2 217.6 221.0 79.5 79.8 80.2 80.2 6 Lumber and products 122.2 122.5 120.5 120.6 145.3 146.3 147.4 148.4 84.1 83.7 81.7 81.2 7 Primary metals 122.3 125.1 128.7 130.8 147.6 148.5 149.3 150.1 82.9 84.2 86.2 87.1 8 Iron and steel 116.9 121.4 126.6 128.8 148.5 150.0 151.3 152.5 78.7 80.9 83.7 84.4 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 221.3 227.9 232.3 239.9 265.7 275.5 285.3 295.8 83.3 82.7 81.4 81.1 11 Electrical machinery 349.4 374.6 400.9 418.4 461.8 482.0 498.5 514.6 75.7 77.7 80.4 81.3 1? Motor vehicles and parts 147.5 150.6 153.3 154.9 184.8 184.8 184.9 185.0 79.8 81.5 82.9 83.7 13 Aerospace and miscellaneous transportation equipment . . . 98.9 95.9 93.8 89.2 126.8 126.6 126.2 125.8 78.0 75.7 74.3 7700..99 14 Nondurable goods 111.8 111.6 111.5 113.3 139.1 139.5 139.9 140.3 80.4 80.0 79.7 80.8 15 Textile mill products 109.6 111.1 111.6 111.8 131.4 131.5 131.6 131.8 83.4 84.5 84.8 84.8 16 Paper and products 115.8 115.1 116.0 117.6 133.8 134.5 135.3 136.1 86.6 85.6 85.7 86.4 17 Chemicals and products 115.9 116.3 117.0 121.6 150.0 150.4 150.7 151.0 77.3 77.3 77.6 80.5 18 Plastics materials 122.9 123.5 124.2 131.3 135.9 137.2 138.4 139.6 90.4 90.0 89.7 94.1 19 Petroleum products 116.3 114.1 114.6 113.8 121.8 122.2 122.7 123.1 95.6 93.3 93.4 92.5 70 Mining 97.6 97.1 98.2 99.5 120.4 120.3 120.2 120.2 81.1 80.7 81.7 82.8 Utilities 114.6 116.6 118.4 115.2 126.9 127.3 127.8 128.2 90.3 91.6 92.7 89.8 22 Electric 116.6 118.9 120.8 117.6 124.7 125.2 125.6 126.1 93.5 95.0 96.2 93.3 1973 1975 Previous cycle5 Latest cycle6 1999 1999 2000 High Low High Low High Low Jan. Aug. Sept. Oct.r Nov.r Dec.1" Jan.? Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.4 80.7 80.6 81.0 81.0 81.1 81.6 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.6 79.7 79.7 80.2 80.3 80.2 80.6 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 83.1 82.8 82.8 83.4 83.9 83.6 83.9 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 78.4 78.8 78.7 79.1 79.1 79.0 79.6 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 79.6 80.2 80.0 80.3 80.2 80.1 80.7 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 84.6 81.6 81.0 81.4 80.8 81.5 81.9 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 83.5 86.8 85.8 86.1 87.5 87.8 87.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 79.8 84.4 83.0 82.1 85.6 85.5 84.8 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 88.1 89.9 89.3 91.1 89.8 90.7 90.7 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 82.8 81.1 81.6 8811..66 81.1 8800..77 80.9 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 76.3 80.5 79.8 81.1 80.9 82.0 83.6 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 79.3 82.3 84.1 84.2 84.2 82.7 85.5 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 78.4 75.0 73.1 71.9 70.9 6699..99 6699..22 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.2 79.7 79.9 80.6 81.0 80.8 81.1 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 82.2 84.8 84.1 85.5 84.8 84.1 84.7 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.7 85.6 86.4 86.9 86.7 85.6 86.4 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.4 78.1 77.8 79.4 81.2 80.9 81.1 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 89.0 87.8 90.5 94.0 95.4 92.7 93.6 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 96.4 93.0 93.3 93.2 91.8 92.4 91.2 ?0 Mining 94.3 88.2 96.0 80.3 88.0 87.0 81.3 81.9 81.8 82.6 82.9 82.9 83.9 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 90.3 92.2 92.0 89.9 88.0 91.6 93.2 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 93.0 95.5 95.2 92.8 91.8 95.3 96.5 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. individui industrial production series, see "Industrial Production: 1989 Developments and 6. Monthly highs, 1988-89; monthly lows, 1990-91. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • April 2000 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp pro- 1999 por- avg. tion Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct/ Nov/ Dec/ Jan.? Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.1 134.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.1 139.5 140.1 141.5 2 Products 60.5 126.5 125.4 125.8 126.0 126.2 126.8 126.8 126.9 127.6 127.6 128.5 128.2 128.4 129.6 3 Final products 46.3 128.0 126.6 127.3 127.3 127.6 128.2 128.3 128.6 129.5 129.1 130.2 129.9 130.0 131.6 4 Consumer goods, total 29.1 116.9 116.3 117.2 116.7 116.5 116.8 117.0 116.8 117.6 117.1 118.2 117.7 118.2 119.3 5 Durable consumer goods 6.1 152.5 149.1 150.9 149.9 152.0 152.8 154.0 153.4 155.5 153.5 157.4 154.3 154.7 157.6 6 Automotive products 2.6 144.6 143.7 142.0 140.0 142.0 145.4 147.4 143.7 150.6 145.5 147.9 146.2 143.6 147.8 7 Autos and trucks 1.7 151.8 149.4 148.7 147.0 149.0 153.2 157.5 148.9 162.9 152.8 155.1 154.3 148.8 155.1 8 Autos, consumer .9 102.6 104.7 100.2 101.6 102.3 99.9 101.8 102.4 105.0 105.5 103.9 107.2 100.0 105.6 9 Trucks, consumer .7 202.4 195.9 198.5 194.1 197.3 207.4 214.2 197.2 221.6 201.9 207.8 203.6 199.1 206.3 10 Auto parts and allied goods .... .9 133.7 134.8 131.8 129.3 131.4 133.6 132.5 135.3 132.8 134.4 136.7 133.8 135.1 136.6 11 Other 3.5 158.6 152.8 158.0 157.8 160.0 158.3 158.8 161.1 158.7 159.7 165.0 160.5 163.8 165.4 12 Appliances, televisions, and air conditioners 1.0 323.6 299.7 320.0 317.6 325.8 311.1 319.0 329.9 319.0 326.3 363.1 343.1 352.6 359.8 13 Carpeting and furniture .8 121.8 121.1 122.8 119.6 120.2 121.0 121.0 124.1 122.1 124.1 124.8 119.1 121.8 123.9 14 Miscellaneous home goods 1.6 114.7 111.0 113.6 115.7 116.9 117.2 116.2 115.9 115.4 114.4 114.8 115.0 116.6 116.5 15 Nondurable consumer goods 23.0 108.7 108.7 109.3 108.9 108.3 108.4 108.4 108.3 108.9 108.7 109.3 109.3 109.7 110.5 16 Foods and tobacco 10.3 107.3 108.4 109.4 108.4 107.8 107.7 107.3 106.7 106.5 106.2 106.8 107.2 107.4 107.5 17 Clothing 2.4 90.6 91.7 92.0 91.3 91.8 90.2 90.2 89.2 90.1 89.9 89.4 90.6 89.6 90.5 18 Chemical products 4.5 121.7 119.7 122.8 121.6 118.7 120.5 120.2 119.4 122.7 120.9 123.1 125.9 126.0 126.7 19 Paper products 2.9 102.3 101.5 100.4 98.8 99.9 100.3 101.5 102.0 103.2 104.7 106.3 105.1 103.7 106.0 20 Energy 2.9 114.5 113.1 109.9 115.4 115.1 114.7 115.3 118.6 116.6 117.6 114.5 109.2 113.9 116.3 21 Fuels .8 111.2 112.2 113.4 110.7 111.5 110.9 109.9 111.1 110.0 112.0 112.4 110.1 110.3 109.7 22 Residential utilities 2.1 115.7 113.3 108.2 117.2 116.4 116.1 117.4 121.7 119.3 119.7 114.9 108.1 115.0 118.9 23 Equipment 17.2 148.9 144.6 144.9 145.9 147.0 148.4 148.3 149.3 150.5 150.2 151.2 151.2 150.9 153.3 24 Business equipment 13.2 171.5 165.9 166.3 167.5 169.4 171.2 171.2 172.6 173.9 173.7 174.8 174.8 174.5 177.8 25 Information processing and related 5.4 248.6 223.0 224.5 229.2 236.9 244.3 248.2 253.8 259.9 261.3 265.6 266.5 269.8 277.3 26 Computer and office equipment 1.1 840.1 677.5 703.1 736.1 773.0 805.8 830.2 851.9 892.8 926.9 950.5 970.0 985.6 1,015.2 27 Industrial 4.0 135.3 137.0 135.8 135.2 136.0 135.3 133.7 135.4 133.6 133.9 134.9 134.5 134.7 136.0 28 Transit 2.5 126.5 132.8 131.2 129.5 129.4 128.9 128.2 127.5 128.1 124.0 122.3 120.5 115.5 117.7 29 Autos and trucks 1.2 131.4 130.9 128.9 129.0 130.7 131.2 132.2 131.2 135.3 132.0 133.4 134.2 127.7 135.7 30 Other 1.3 131.3 132.6 139.9 143.0 135.7 134.0 130.2 123.8 123.2 126.4 125.1 128.3 126.9 127.4 31 Defense and space equipment 3.3 74.3 75.0 75.4 75.6 75.1 75.2 74.6 74.5 74.7 73.6 73.7 73.0 72.2 70.8 32 Oil and gas well drilling .6 106.8 99.8 97.4 100.8 97.2 99.8 100.1 102.0 107.1 111.3 115.7 121.3 124.3 129.0 33 Manufactured homes .2 155.1 173.3 169.2 168.8 164.7 161.3 158.9 151.5 151.3 144.4 142.6 139.3 137.0 137.1 34 Intermediate products, total 14.2 122.1 121.4 121.3 121.6 121.7 122.3 121.7 121.5 121.7 122.6 123.2 122.8 123.1 123.3 35 Construction supplies 5.3 133.4 133.3 132.5 131.7 131.3 132.9 132.6 133.2 132.9 134.1 135.4 134.7 134.5 134.8 36 Business supplies 8.9 115.4 114.3 114.7 115.6 116.1 116.1 115.3 114.6 115.1 115.8 115.9 115.8 116.4 116.5 37 Materials 39.5 154.8 148.2 148.7 150.3 150.8 151.7 153.1 155.0 154.6 155.7 156.8 158.7 160.1 161.8 38 Durable goods materials 20.8 198.8 188.8 189.2 191.9 193.1 194.3 197.2 200.3 199.9 202.3 203.4 206.4 209.0 211.8 39 Durable consumer parts 4.0 150.7 145.4 148.4 149.9 147.7 148.4 150.5 153.9 147.2 156.0 153.7 154.8 155.5 157.8 40 Equipment parts 7.6 360.4 323.1 324.4 331.5 340.5 345.0 355.2 364.6 369.0 371.4 377.5 385.2 395.3 403.9 41 Other 9.2 131.3 130.8 129.8 130.9 130.4 130.4 130.6 131.1 131.6 131.2 131.7 133.5 134.0 134.7 42 Basic metal materials 3.1 121.9 119.1 116.8 119.8 120.1 119.9 122.6 122.8 123.3 122.1 123.5 126.1 126.5 126.3 43 Nondurable goods materials 8.9 114.5 111.3 112.4 112.7 112.8 113.8 114.2 114.5 114.4 114.7 117.4 118.9 118.1 118.1 44 Textile materials 1.1 101.1 96.5 100.2 101.2 101.8 101.8 101.2 101.2 101.1 100.3 102.3 103.3 101.3 100.4 45 Paper materials 1.8 117.0 116.1 115.6 116.3 116.5 115.3 117.7 116.3 116.3 118.6 118.5 119.3 118.4 118.9 46 Chemical materials 3.9 117.3 111.6 112.8 113.6 114.2 116.0 116.9 117.7 117.4 117.7 122.0 124.9 123.8 123.8 47 Other 2.1 113.4 113.4 114.4 113.3 111.9 114.2 112.0 113.0 113.2 112.5 114.9 114.6 114.7 115.1 48 Energy materials 9.7 101.9 101.8 101.7 102.4 102.2 102.2 101.6 102.9 102.3 101.8 101.5 101.7 103.2 104.2 49 Primary energy 6.3 99.3 99.1 99.1 99.1 97.3 98.3 98.9 100.2 100.3 99.6 98.8 100.1 100.3 101.1 50 Converted fuel materials 3.3 107.5 106.8 106.7 108.9 111.7 109.9 106.8 108.0 106.1 106.1 106.5 104.7 108.8 110.2 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.0 133.9 134.4 135.1 135.4 136.1 136.4 137.3 137.4 138.0 138.9 139.4 140.2 141.4 52 Total excluding motor vehicles and parts 95.1 136.4 133.5 133.9 134.6 134.9 135.6 135.9 136.7 137.1 137.2 138.3 138.7 139.5 140.7 53 Total excluding computer and office equipment 98.2 131.1 128.8 129.1 129.5 129.7 130.2 130.6 131.2 131.4 131.5 132.4 132.7 133.3 134.5 54 Consumer goods excluding autos and trucks . 27.4 115.1 114.6 115.5 115.1 114.8 114.8 114.8 115.0 115.2 115.2 116.3 115.8 116.5 117.4 55 Consumer goods excluding energy 26.2 117.2 116.7 118.0 116.9 116.7 117.0 117.2 116.6 117.7 117.1 118.7 118.7 118.7 119.7 56 Business equipment excluding autos and trucks 12.0 176.1 169.9 170.6 171.9 173.8 175.7 175.7 177.4 178.3 178.5 179.5 179.4 179.9 182.6 57 Business equipment excluding computer and office equipment 12.1 143.7 142.7 142.4 142.6 143.4 144.2 143.6 144.4 144.6 143.6 144.0 143.5 142.8 145.3 58 Materials excluding energy 29.8 171.9 162.9 163.6 165.5 166.3 167.4 169.5 171.6 171.3 173.0 174.7 177.2 178.5 180.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1992 Group c S o I d C e p p r o o r - - 1 a 9 v 9 g 9 . tion Apr. May July Aug. Sept. Oct.r Jan.? Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.1 134.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.1 139.5 140.1 141.5 60 Manufacturing 85.4 142.2 138.6 139.3 139.7 140.2 141.0 141.4 142.0 142.5 142.9 144.2 144.9 145.2 146.6 61 Primary processing 26.5 123.3 122.2 122.1 122.4 122.2 122.5 122.7 123.3 123.4 123.6 124.8 125.6 125.5 126.0 62 Advanced processing 58.8 151.7 147.2 148.4 148.8 149.6 150.7 151.2 151.8 152.6 153.1 154.5 155.1 155.6 157.4 63 Durable goods 45.0 172.8 166.3 166.8 168.1 169.4 170.8 172.2 173.8 174.4 175.0 176.5 177.2 178.0 180.4 64 Lumber and products ' 24 2.0 121.6 122.6 122.3 121.7 121.5 123.9 122.2 121.5 120.2 119.7 120.5 119.9 121.2 122.0 65 Furniture and fixtures 25 1.4 125.5 122.7 124.6 125.8 123.8 124.4 124.4 125.7 126.4 127.9 127.0 126.2 126.8 127.5 66 Stone, clay, and glass products 32 2.1 130.5 133.1 132.2 130.8 128.8 128.5 127.8 129.3 130.2 129.6 131.2 133.0 131.6 131.5 67 Primary metals 33 3.1 126.6 122.9 120.1 124.0 123.9 123.9 127.4 128.0 129.6 128.3 129.0 131.3 132.1 131.6 68 Iron and steel 331,2 1.7 123.1 118.1 114.6 118.1 119.4 120.1 124.5 126.2 127.6 125.9 124.9 130.6 130.9 129.9 69 Raw steel 331PT .1 113.3 106.8 106.8 108.3 109.3 111.4 110.7 111.1 115.9 112.4 121.8 124.0 124.2 123.4 70 Nonferrous 333-6,9 1.4 130.9 128.9 127.0 131.4 129.4 128.6 130.8 130.2 132.1 131.4 134.0 132.2 133.6 133.7 71 Fabricated metal products . . 34 5.0 128.7 129.0 128.4 128.5 128.0 127.2 128.3 128.6 128.5 128.4 128.8 129.3 129.0 130.2 72 Industrial machinery and equipment 35 8.0 230.1 217.5 221.7 224.6 227.0 228.4 228.2 230.0 231.4 235.5 238.3 239.9 241.6 245.0 73 Computer and office equipment 357 1.8 1,061.6 868.1 907.1 947.6 987.5 1,021.6 1,048.2 1,075.1 1,123.7 1,167.5 1,196.6 1,222.8 1,246.3 1,284.7 74 Electrical machinery 36 7.3 389.6 346.7 347.5 354.0 366.4 373.3 384.2 399.2 401.3 402.1 412.6 416.0 426.5 441.2 75 Transportation equipment.. . 37 9.5 122.4 122.7 123.2 122.6 122.1 122.8 123.5 122.9 122.9 123.1 122.3 121.6 119.7 121.6 76 Motor vehicles and parts . 371 4.9 151.0 146.5 147.8 148.1 148.4 150.6 152.9 152.2 152.2 155.6 155.7 155.8 153.1 158.5 77 Autos and light trucks . 371PT 2.6 137.8 136.5 135.0 134.0 135.7 138.3 142.0 135.8 146.8 139.4 140.7 141.0 135.1 141.1 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.7 99.4 99.3 97.9 96.5 96.0 95.2 94.7 94.7 92.2 90.6 89.1 87.9 86.8 79 Instruments 38 5.4 116.5 113.3 112.9 113.7 115.1 116.7 117.0 117.2 117.7 117.2 118.3 118.8 119.3 119.2 80 Miscellaneous 39 1.3 124.7 120.6 121.8 122.9 124.2 125.5 124.5 125.2 125.2 125.1 125.0 125.0 126.4 126.3 81 Nondurable goods 40.4 111.8 111.3 112.3 111.8 111.5 111.9 111.3 111.0 111.5 111.8 113.0 113.6 113.5 113.9 82 Foods " ' 20 9.4 110.0 111.0 111.4 110.9 110.6 110.6 110.0 108.9 108.9 109.6 110.1 110.1 109.9 110.6 83 Tobacco products 21 1.6 94.3 94.8 99.2 95.4 94.1 95.4 94.5 96.0 94.8 90.9 91.9 93.1 95.2 92.3 84 Textile mill products 22 1.8 111.0 108.0 110.5 110.1 111.4 110.9 110.8 112.3 111.7 110.8 112.7 111.8 110.9 111.7 85 Apparel products 23 2.2 90.7 92.3 92.2 91.8 92.4 91.2 90.7 89.8 89.2 89.0 89.1 89.2 89.2 89.5 86 Paper and products 26 3.6 116.1 115.7 115.9 115.9 115.0 114.6 115.7 115.0 115.8 117.2 118.0 118.1 116.8 118.0 87 Printing and publishing .... 27 6.7 104.4 104.3 104.3 103.7 104.2 104.1 103.5 102.8 103.6 104.6 106.0 106.0 105.9 106.2 88 Chemicals and products .... 28 9.9 117.4 114.5 116.6 116.8 115.6 117.0 116.3 115.8 117.7 117.4 119.8 122.6 122.2 122.6 89 Petroleum products 29 1.4 114.6 117.2 117.0 114.9 114.6 114.2 113.4 115.1 114.1 114.6 114.5 113.0 113.8 112.5 90 Rubber and plastic products . 30 3.5 137.6 135.4 135.6 135.8 136.2 137.4 136.4 138.0 137.6 139.3 138.9 139.1 140.1 141.7 91 Leather and products 31 .3 69.8 71.9 71.5 71.3 70.6 70.9 71.3 69.1 70.2 69.5 68.2 67.4 65.5 66.8 92 Mining 6.9 98.0 98.0 97.4 97.5 96.7 97.4 97.1 97.8 98.5 98.3 99.2 99.6 99.6 100.6 93 Metal 10 .5 97.8 102.9 101.3 98.5 100.5 100.2 98.9 96.2 93.0 91.4 94.2 98.1 98.9 98.8 94 Coal 12 1.0 108.1 107.7 108.9 103.9 107.3 106.1 107.0 110.0 110.7 109.4 108.8 110.0 109.5 106.1 95 Oil and gas extraction 13 4.8 92.5 91.2 90.7 92.1 90.8 91.8 91.4 92.3 93.2 93.0 94.0 94.5 94.9 96.9 96 Stone and earth minerals 14 .6 123.9 129.4 127.1 126.6 121.8 123.9 123.3 120.5 123.0 125.5 126.3 122.0 119.2 118.9 97 Utilities 7.7 116.1 114.5 112.6 116.8 116.3 116.1 117.4 119.8 117.8 117.7 115.2 112.8 117.5 119.7 98 Electric 491.493PT 6.2 118.4 115.8 114.9 119.1 118.6 118.4 119.6 122.6 120.0 119.8 116.9 115.8 120.3 122.0 99 Gas 492,493PT 1.6 106.8 108.8 102.5 106.4 105.7 105.8 107.5 107.4 108.2 108.5 107.9 99.5 105.2 109.3 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 138.2 138.9 139.3 139.8 140.5 140.8 141.4 142.0 142.3 143.6 144.4 144.9 145.9 101 Manufacturing excluding computer and office equipment 83.6 135.3 132.4 133.0 133.1 133.4 134.1 134.3 134.8 135.1 135.3 136.5 137.1 137.3 138.4 102 Computers, communications equipment, and semiconductors 5.9 793.2 665.0 676.0 700.3 731.6 753.3 780.5 812.1 830.4 843.0 863.9 884.5 910.9 947.1 103 Manufacturing excluding computers and semiconductors 81.1 121.5 120.6 121.1 121.0 120.9 121.3 121.2 121.3 121.6 121.7 122.6 122.8 122.7 123.6 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.2 118.6 119.1 118.9 118.7 119.1 118.9 118.9 119.1 119.3 120.1 120.4 120.3 120.9 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,726.2 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 2,762.6 2,746.2 2,746.4 2,777.2 106 Final 1,552.1 2,101.3 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 2,132.5 2,118.4 2,116.6 2,146.2 107 Consumer goods 1,049.6 1,295.1 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 1,311.7 1,298.0 1,300.4 1,314.7 108 Equipment 502.5 807.8 787.0 788.1 793.3 800.1 806.7 806.7 812.3 819.0 817.5 822.5 822.6 818.0 833.8 109 Intermediate 449.9 623.6 619.9 619.1 620.4 621.7 625.2 622.1 622.0 622.4 626.4 628.9 626.5 628.6 629.9 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 Nonfinancial Statistics • April 2000 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 item 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,640 1,654 1,572 1,591 1,641 1,641 1,619 1,506 1,594 1,612 1,622 2 One-family 1,062 1,188 1,232 1,242 1,214 1,243 1,241 1,247 1,210 1,171 1,178 1,200 1,228 3 Two-family or more 379 425 408 412 358 348 400 394 409 335 416 412 394 4 Started 1,474 1,617 1,665 l,737r l,561r l,649r l,562r l,704r l,657r l,628r l,636r l,663r 1,748 5 One-family 1,134 1,271 1,334 l,377r l,248r l,368r l,269r l,348r l,285r l,290r l,343r l,344r 1,426 6 Two-family or more 340 346 331 360r 313r 281r 293r 356r 372r 338r 293r 319r 322 / Under construction at end of period' 834 935 1,024 1,036 1,031 1,029 1,017 1,021 1,026 1,021 l,018r 1,02 lr 1,023 8 One-family 570 638 706 714 708 708 702 704 704 701 704r 708r 712 9 Two-family or more 264 297 318 322 323 321 315 317 322 320 314 313 311 10 Completed 1,406 1,473 1,636 1,700 1,633 1,650 1,674 1,609 1,594 1,668 l,636r l,628r 1,661 11 One-family 1,120 1,158 1,308 1,357 1,324 1,334 1,346 1,263 1,267 1,321 l,299r l,316r 1,327 12 Two-family or more 285 315 328 343 309 316 328 346 327 347 337r 312r 334 13 Mobile homes shipped 354 374 348 383 368 365 355 336 340 320 321 316 304 Merchant builder activity in one-family units 14 Number sold 804 886 904 885 952 914 932 929 912 860r 919r 861r 900 15 Number for sale at end of period' 287 300 330 300 300 304 306 305 307 31 lr 315r 318r 322 Price of units sold (thousands of dollars)2 16 Median 146.0 152.5 159.8 155.0 160.0 154.8 158.3 157.9 154.9 162.0r 159.1r 170.0r 160.9 17 Average 176.2 181.9 194.0 189.4 191.4 188.2 193.4 188.8 193.3 194.4r 199.6r 212.1r 200,5 EXISTING UNITS (one-family) 18 Number sold 4,381 4,970 5,197 5,420 5,250 5,000 5,630 5,400 5,240 5,130 4,800 5,130 5,060 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 129.6 130.7 132.8 136.9 136.0 137.4 134.4 132.5 133.2 134.3 20 Average 150.5 159.1 168.3 162.3 163.8 167.4 174.2 171.9 174.3 170.2 167.2 168.9 171.3 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 617,877 664,451 706,051 715,396 704,582 698,461 698,852 701,961 698,439 698,168 701,933 716,042 730,257 22 Private 474,842 518,987 547,233 555,362 547,885 546,880 546,931 545,992 541,793 540,939 543,796 550,546 554,515 23 Residential 265,908 293,569 321,779 323,133 322,213 321,803 320,913 320,350 319,656 320,048 322,658 325,737 330,530 24 Nonresidential 208,933 225,418 225,453 232,229 225,672 225,077 226,018 225,642 222,137 220,891 221,138 224,809 223,985 25 Industrial buildings 31,355 32,308 26,600 29,052 26,217 24,975 25,465 26,246 25,703 25,566 25,268 25,887 25,960 26 Commercial buildings 86,190 95,252 103,100 103,983 102,180 104,134 104,457 103,355 102,407 102,728 102,454 105,023 103,511 27 Other buildings 37,198 39,438 38,802 39,840 39,737 38,876 38,592 38,412 37,791 37,727 38,436 38,173 38,753 28 Public utilities and other 54,190 58,421 56,952 59,354 57,538 57,092 57,504 57,629 56,236 54,870 54,980 55,726 55,761 29 Public 143,035 145,464 158,818 160,033 156,697 151,581 151,921 155,969 156,646 157,229 158,137 165,496 175,741 30 Military 2,559 2,588 2,133 2,223 2,268 2,128 2,137 2,275 1,682 1,947 2,092 1,961 2,362 31 Highway 44,295 45,067 50,620 53,099 50,897 48,542 45,518 47,822 48,182 49,031 46,988 53,051 58,887 32 Conservation and development 5,576 5,487 6,214 6,194 6,016 5,101 5,845 5,820 6,598 6,268 6,305 6,867 7,263 33 Other 90,605 92,322 99,852 98,517 97,516 95,810 98,421 100,052 100,184 99,983 102,752 103,617 107,229 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 2000 JJJaaannn... 11999999 22000000 222000000000 JJaann.. JJaann.. Mar. June Sept. Dec. Sept. Oct. Nov. Dec. Jan. CONSUMER PRICES2 (1982-84=100) 1 All items 1.7 2.7 1.7 2.7 3.9 2.4 .4 .2 ,2R .2 .2 168.7 2 Food 2.3 1.5 1.7 1.5 2.5 2.2 ,3r .2 ,2r .1 -.1 166.1 3 Energy items -7.4 14.7 4.5 16.5 26.0 7.8 1.8r ,0r ,lr 1.8r 1.0 112.5 4 All items less food and energy 2.4 1.9 1.4 2.1 2.5 1.8 .3 .2 .2 .1 .2 178.7 5 Commodities 1.2 -.1 -2.7 1.7 2.5 -.6 ,6r .1 -.2 -.1 -.2 143.6 6 Services 2.8 2.8 2.9 2.3 2.5 3.1 .2 ,2r .4 .2 .3 198.7 PRODUCER PRICES (1982=100) 7 Finished goods .8 2.5 1.5 2.5 6.8 1.2 ,8r ,0r .2 .R .0 134.7 8 Consumer foods 1.9 -.4 2.7 -.6 3.3 -1.8 ,7r — ,4r ,0R ,OR .1 135.0 9 Consumer energy -8.0 17.5 8.6 22.4 37.6 6.9 2.R — .2' 1.6r ,4r .7 83.8 10 Other consumer goods 3.8 1.1 -.8 .8 3.8 1.1 .9 ,2r ,0r ,I -.4 152.8 11 Capital equipment -.1 .4 -.3 .0 .3 1.2 ,lr .2' -.1 ,I .1 138.4 Intermediate materials 12 Excluding foods and feeds -2.7 4.7 .7 5.7 6.6 4.2 ,4r .3 .3 .4 .4 126.9 13 Excluding energy -1.8 2.4 -.9 2.8 3.4 2.4 .1 .2r .1 .2 .3 135.1 Crude materials 14 Foods -4.1 -4.7 10.2 -7.7 3.7 -4.0 1.3 ,9r ,2r -2.lr .7 96.4 15 Energy -18.6 52.3 -21.1 163.8 134.4 -24.3 9.3r -6.r 8.8 -8.7 4.4 92.9 16 Other -14.4 16.9 2.2 7.0 22.6 24.5 1.8r 3.0r ,6r 2.0' 3.2 150.6 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • April 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 11999977 11999988 11999999 Q4 QL Q2 Q3 Q4 GROSS DOMESTIC PRODUCT 1 Total 8,300.8 8,759.9 9,254.6 8,947.6 9,072.7 9,146.2 9,297.8 9,501.6 By source 2 Personal consumption expenditures 5,524.4 5,848.6 6,257.3 5,973.7 6,090.8 6,200.8 6,303.7 6,434.2 3 Durable goods 642.9 698.2 758.6 722.8 739.0 751.6 761.8 782.0 4 Nondurable goods 1,641.7 1,708.9 1,842.7 1,742.9 1,787.8 1,824.8 1,853.9 1,904.3 5 Services 3,239.8 3,441.5 3,656.0 3,508.0 3,564.0 3,624.3 3,688.0 3,747.9 6 Gross private domestic investment 1,383.7 1,531.2 1,622.9 1,580.3 1,594.3 1,585.4 1,635.0 1,676.9 1 Fixed investment 1,315.4 1,460.0 1,577.8 1,508.9 1,543.3 1,567.8 1,594.2 1,605.8 8 Nonresidential 986.1 1,091.3 1,166.5 1,121.4 1,139.9 1,155.4 1,181.6 1,189.2 9 Structures 254.1 272.8 272.7 278.0 274.7 272.5 272.1 271.5 10 Producers' durable equipment 732.1 818.5 893.8 843.4 865.2 882.9 909.5 917.7 11 Residential structures 329.2 368.7 411.3 387.5 403.4 412.4 412.7 416.6 12 Change in business inventories 68.3 71.2 45.1 71.4 51.0 17.6 40.8 71.1 13 Nonfarm 65.6 70.9 41.7 56.2 40.9 12.8 40.1 73.0 14 Net exports of goods and services -88.3 -149.6 -255.5 -161.2 -201.6 -245.8 -278.2 -296.4 IS Exports 968.0 966.3 997.4 981.8 966.9 978.2 1,008.5 1,036.2 16 Imports 1,056.3 1,115.9 1,252.9 1,143.1 1,168.5 1,224.0 1,286.6 1,332.6 17 Government consumption expenditures and gross investment 1,481.0 1,529.7 1,629.8 1,554.8 1,589.1 1,605.9 1,637.2 1,687.0 18 Federal 537.8 538.7 570.5 546.7 557.4 561.6 569.8 593.2 19 State and local 943.2 991.0 1,059.3 1,008.1 1,031.8 1,044.3 1,067.4 1,093.8 By major type of product 20 Final sales, total 8,232.4 8,688.7 9,209.4 8,876.2 9,021.6 9,128.6 9,257.0 9,430.5 21 Goods 3,074.1 3,239.1 3,437.7 3,318.4 3,365.6 3,406.6 3,453.2 3,525.5 22 Durable 1,424.8 1,528.9 1,619.3 1,571.4 1,584.3 1,601.7 1,631.1 1,660.0 23 Nondurable 1,649.3 1,710.3 1,818.5 1,747.0 1,781.3 1,804.9 1,822.2 1,865.5 24 Services 4,434.7 4,664.6 4,930.5 4,747.9 4,820.7 4,885.5 4,963.7 5,052.1 2S Structures 723.7 785.1 841.2 809.9 835.3 836.5 840.1 852.9 26 Change in business inventories 68.3 71.2 45.1 71.4 51.0 17.6 40.8 71.1 27 Durable goods 35.6 39.0 26.2 38.6 24.1 6.3 23.0 51.4 28 Nondurable goods 32.8 32.3 19.0 32.8 27.0 11.4 17.8 19.7 MEMO 29 Total GDP in chained 1996 dollars 8,165.1 8,516.3 8,867.0 8,659.2 8,737.9 8,778.6 8,900.6 9,050.9 NATIONAL INCOME 30 Total 6,634.9 7,036.4 n.a. 7,193.8 7,334.5 7,423.1 7,522.1 n.a. 31 Compensation of employees 4,675.7 5,011.2 5,331.8 5,134.7 5,217.7 5,287.1 5,373.6 5,448.8 32 Wages and salaries 3,884.7 4,189.5 4,472.4 4,300.8 4,371.5 4,432.6 4,509.4 4,576.0 33 Government and government enterprises 664.4 692.8 726.5 702.8 715.8 721.3 730.3 738.6 34 Other 3,220.3 3,496.7 3,745.9 3,598.0 3,655.7 3,711.3 3,779.1 3,837.4 3S Supplement to wages and salaries 791.0 821.7 859.4 833.9 846.2 854.5 864.2 872.8 36 Employer contributions for social insurance 290.1 306.0 323.6 311.8 318.3 321.5 325.7 329.1 37 Other labor income 500.9 515.7 535.8 522.1 528.0 533.0 538.5 543.7 38 Proprietors' income' 578.6 606.1 658.5 637.1 639.9 655.3 654.0 684.8 39 Business and professional1 549.1 581.0 627.1 596.0 607.5 621.2 633.0 646.6 40 Farm1 29.5 25.1 31.4 41.1 32.5 34.1 21.0 38.2 41 Rental income of persons2 130.2 137.4 145.9 147.0 148.6 148.8 139.0 147.1 42 Corporate profits1 837.9 846.1 n.a. 834.3 882.0 875.5 879.2 n.a. 43 Profits before tax3 795.9 781.9 n.a. 766.7 818.1 835.8 853.8 n.a. 44 Inventory valuation adjustment 7.4 20.9 n.a. 20.8 13.3 -13.6 -26.7 n.a. 45 Capital consumption adjustment 34.6 43.3 52.0 46.9 50.6 53.2 52.1 52.0 46 Net interest 412.5 435.7 n.a. 440.8 446.3 456.4 476.3 n.a. 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1998 1999 AAccccoouunntt 11999977 11999988 11999999 Q4 QL Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 6,951.1 7,358.9 7,791.2 7,530.8 7,630.2 7,732.6 7,831.4 7,970.6 ? Wage and salary disbursements ; 3,888.9 4,186.0 4,472.7 4,297.3 4,371.5 4,432.6 4,509.4 4,577.2 Commodity-producing industries 975.5 1,038.7 1,082.6 1,056.6 1,062.9 1,075.1 1,090.2 1,102.2 4 Manufacturing 718.8 757.5 779.9 765.6 767.0 774.8 786.4 791.4 Distributive industries 879.1 944.6 1,005.5 969.9 986.3 997.6 1,013.4 1,024.8 6 Service industries 1,369.8 1,509.9 1,658.1 1,568.0 1,606.6 1,638.5 1,675.5 1,711.9 7 Government and government enterprises 664.4 692.8 726.4 702.8 715.8 721.3 730.3 738.2 8 Other labor income 500.9 515.7 535.8 522.1 528.0 533.0 538.5 543.8 9 Proprietors' income' 578.6 606.1 658.0 637.1 639.9 655.3 654.0 682.7 in Business and professional' 549.1 581.0 626.7 596.0 607.5 621.2 633.0 645.2 ii Farm 29.5 25.1 31.3 41.1 32.5 34.1 21.0 37.5 P Rental income of persons2 130.2 137.4 146.1 147.0 148.6 148.8 139.0 148.2 N 333.4 348.3 364.3 351.9 356.1 361.2 367.0 373.1 14 Personal interest income 854.9 897.8 930.6 906.4 907.4 920.5 938.8 955.6 15 Transfer payments 962.4 983.6 1,018.2 991.0 1,007.8 1,013.6 1,021.3 1,030.2 16 Old-age survivors, disability, and health insurance benefits 565.8 578.1 596.6 581.1 588.9 593.0 599.0 605.4 17 LESS: Personal contributions for social insurance 298.1 315.9 334.5 322.0 328.9 332.3 336.7 340.2 18 EQUALS: Personal income 6,951.1 7,358.9 7,791.2 7,530.8 7,630.2 7,732.6 7,831.4 7,970.6 19 LESS: Personal tax and nontax payments 968.3 1,072.6 1,152.0 1,113.0 1,124.8 1,139.4 1,160.4 1,183.2 20 EQUALS: Disposable personal income 5,982.8 6,286.2 6,639.2 6,417.8 6,505.4 6,593.2 6,671.0 6,787.4 21 LESS: Personal outlays 5,711.7 6,056.6 6,480.9 6,190.3 6,310.3 6,425.2 6,531.5 6,656.6 22 EQUALS: Personal saving 271.1 229.7 158.3 227.5 195.1 168.0 139.5 130.8 MEMO Per capita (chained 1996 dollars) ?3 Gross domestic product 30,466.7 31,471.8 32,434.2 31,882.1 32,112.7 3322,,117799..88 3322,,554433..44 3322,,992211..00 74 Personal consumption expenditures 20,275.2 21,059.2 21,957.0 21,339.3 21,640.6 21,854.1 22,059.5 22,287.3 25 Disposable personal income 21,954.0 22,636.0 23,310.0 22,924.0 23,110.0 23,239.0 23,343.0 23,546.0 26 Saving rate (percent) 4.5 3.7 2.4 3.5 3.0 2.5 2.1 1.9 GROSS SAVING 27 Gross saving 1,521.3 1,646.0 n.a. 1,685.4 1,727.8 1,709.5 1,735.6 n.a. 28 Gross private saving 1,362.0 1,371.2 n.a. 1,382.3 1,389.4 1,359.3 1,355.7 n.a. ?9 Personal saving 271.1 229.7 158.3 227.5 195.1 168.0 139.5 130.8 10 Undistributed corporate profits' 265.9 257.2 n.a. 246.5 277.6 259.5 252.4 n.a. 31 Corporate inventory valuation adjustment 7.4 20.9 n.a. 20.8 13.3 -13.6 -26.7 n.a. Capital consumption allowances 3? Corporate 579.4 619.2 666.3 637.1 645.8 657.2 667766..55 668855..66 33 Noncorporate 249.8 261.5 279.0 267.7 271.0 274.6 287.2 283.2 34 Gross government saving 159.3 274.8 n.a. 303.0 338.3 350.2 379.9 n.a. 35 Federal 37.7 134.3 n.a. 147.8 187.2 208.3 225.1 n.a. 36 Consumption of fixed capital 86.6 87.4 90.8 88.1 89.6 90.2 91.2 92.1 37 Current surplus or deficit (-), national accounts -48.8 46.9 n.a. 59.7 97.6 118.1 133.8 n.a. 38 State and local 121.5 140.5 n.a. 155.2 151.1 141.9 154.8 n.a. 39 Consumption of fixed capital 94.0 98.8 105.1 101.1 102.4 104.3 106.0 107.8 40 Current surplus or deficit (—), national accounts 27.5 41.7 n.a. 54.2 48.7 37.6 48.9 n.a. 41 Gross investment 1,518.1 1,598.4 n.a. 1,623.0 1,628.4 1,574.0 1,594.4 n.a. 47 Gross private domestic investment 1,383.7 1,531.2 1,621.6 1,580.3 1,594.3 1,585.4 1,635.0 1,671.8 43 Gross government investment 258.1 268.7 296.5 272.6 289.8 292.2 295.7 308.1 44 Net foreign investment -123.7 -201.5 n.a. -229.9 -255.7 -303.7 -336.3 n.a. 45 Statistical discrepancy -3.2 -47.6 n.a. -62.4 -99.4 -135.5 -141.2 n.a. 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • April 2000 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1998 1999 IItteemm ccrreeddiittss oorr ddeebbiittss 11999966 11999977 11999988 Q3 Q4 Ql Q2 Q3 1 Balance on current account -129,295 -143,465 -220,562 -63,476 -61,669 -68,654 -80,909 -89,949 2 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 / 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 y 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 u 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 32 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 1,159 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 1,966 -1,047 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38—41. 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 1999r IItteemm 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec.p 1 Goods and services, balance — 104,731 -164,282 -271,310 -24,778 -25,399 -24,012 -24,212 -25,621 -27,103 -25,549 2 Merchandise -196,652 -246,932 -347,130 -31,239 -31,481 -30,191 -30,271 -31,874 -32,869 -31,473 3 Services 91,921 82,650 75,820 6,461 6,082 6,179 6,059 6,253 5,766 5,924 4 Goods and services, exports 938,543 933,907 958,491 78,462 78,721 82,077 81,930 82,240 82,503 85,173 5 Merchandise 679,715 670,246 683,021 55,377 55,796 59,045 58,839 58,833 59,184 61,739 6 Services 258,828 263,661 275,470 23,085 22,925 23,032 23,091 23,407 23,319 23,434 7 Goods and services, imports -1,043,273 -1,098,189 -1,229,802 -103,240 -104,120 -106,089 -106,142 -107,861 -109,606 -110,722 8 Merchandise -876,366 -917,178 -1,030,152 -86,616 -87,277 -89,236 -89,110 -90,707 -92,053 -93,212 9 Services -166,907 -181,011 -199,650 -16,624 -16,843 -16,853 -17,032 -17,154 -17,553 -17,510 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p 1 Total 75,090 69,954 81,755 73,305 72,649 73,414 73,230 72,318 71,516 69,898 69,309 2 Gold stock, including Exchange Stabilization Fund1 11,049 11,050 11,041 11,048 11,046 11,047 11,049 11,049 11,089 11,048 11,048 3 Special drawing rights2-3 10,312 10,027 10,603 9,925 10,152 10,284 10,232 10,326 10,336 10,199 10,277 4 Reserve position in International Monetary Fund2 15,435 18,071 24,111 21,462 19,885 19,978 19,571 18,707 17,950 17,710 17,578 5 Foreign currencies4 38,294 30,809 36,001 30,870 31,566 32,105 32,378 32,236 32,182 30,941 30,406 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 July Aug. Sept. Oct. Nov. Dec. Jan. Feb.p 1 Deposits 167 457 167 257 166 243 189 501 71 82 87 Held in custody 2 U.S. Treasury securities2 638,049 620,885 607,574 619,004 626,669 634,086 621,351 629,430 632,482 627,326 631,421 3 Earmarked gold3 11,197 10,763 10,343 10,329 10,271 10,155 10,114 10,015 9,933 9,866 9,771 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 • April 2000 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999 IItteemm 11999977 11999988 June July Aug. Sept. Oct.r Nov. Dec.p 1 Total1 776,505 759,928 765,690r 773,497r 782,490r 778,640r 782,865 780,883 807,636 By type 2 Liabilities reported by banks in the United States2 135,384 125,883 126,180 125,873 126,220 124,148 124,523 124,197 140,269 3 U.S. Treasury bills and certificates3 148,301 134,177 138,518 147,492 153,499 115522,,445577 115544,,558822 153,465 115566,,007733 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 421,970 420,197 422,591 420,877 419,629 417,304 422,266 5 Nonmarketable4 5,994 6,074 5,982 6,022 6,060 6,098 6,139 6,177 6,111 6 U.S. securities other than U.S. Treasury securities5 58,822 61,667 73,040r 73,913r 74,120' 75,060r 77,992 79,740 82,917 By area / Europe1 252,289 256,026 241,989 240,546 243,334 241,233 243,412 242,587 244,802 8 Canada 36,177 36,715 39,001 39,147 39,342 39,337 39,682 39,081 38,666 9 Latin America and Caribbean 96,942 79,503 76,828 77,832 75,339 74,279 73,627 72,324 75,111 10 400,144 400,631 421,264r 430,032r 438,264r 437,895r 439,811 441,070 463,434 11 9,981 10,059 8,378 8,397r 8,140r 8,236r 7,868 7,174 7,520 12 Other countries 7,058 3,080 4,316 3,629 4,157 3,746 4,551 4,733 4,189 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 11999977 11999988rr 11999999 June July Aug. Sept. Oct.' Nov. Dec.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,283,027 1,347,837 1,422,018 l,384,853r l,342,632r l,387,383r 1,378,738' 1,374,075 1,421,735 1,422,018 2 Banks' own liabilities 882,980 884,939 971,794 920,182r 889,734r 907,997' 927,131' 931,730 977,742 971,794 3 Demand deposits 31,344 29,558 42,884 36,322 43,183 44,940' 44,594' 39,451 42,888 42,884 4 Time deposits2 198,546 151,761 168,957 156,275r 156,294r 154,433' 156,352' 162,273 168,176 168,957 5 Other3 168,011 140,752 162,564 153,123r 152,455r 152,766' 160,883' 155,743 162,728 162,564 6 Own foreign offices4 485,079 562,868 597,389 574,462r 537,802r 555,858' 565,302' 574,263 603,950 597,389 7 Banks' custodial liabilities5 400,047 462,898 450,224 464,67 lr 452,898r 479,386' 451,607' 442,345 443,993 450,224 8 U.S. Treasury bills and certificates6 193,239 183,494 185,677 179,351 187,872 192,096 189,030 188,486 184,675 185,677 9 Other negotiable and readily transferable instruments7 93,641 141,699 132,575 124,915r 123,813' 133,789' 131,726 131,464 131,859 132,575 10 Other 113,167 137,705 131,972 160,405r 141,213r 153,501' 130,851' 122,395 127,459 131,972 11 Nonmonetary international and regional organizations8 . . 11,690 11,883 14,902 17,987 18,463 18,268 18,646 17,893 14,043 14,902 12 Banks' own liabilities 11,486 10,850 13,983 16,002 16,964 16,856 17,726 17,052 13,156 13,983 13 Demand deposits 16 172 98 49 66 31 21 187 70 98 14 Time deposits2 5,466 5,793 10,349 7,231 7,380 6,419 7,370 8,772 7,675 10,349 15 Other3 6,004 4,885 3,536 8,722 9,518 10,406 10,335 8,093 5,411 3,536 16 Banks' custodial liabilities5 204 1,033 919 1,985 1,499 1,412 920 841 887 919 17 U.S. Treasury bills and certificates6 69 636 680 956 953 896 661 628 658 680 18 Other negotiable and readily transferable instruments7 133 397 233 1,029 533 516 259 213 229 233 19 Other 2 0 6 0 13 0 0 0 0 6 20 Official institutions9 283,685 260,060 296,342 264,698 273,365 279,719 276,605 279,105 277,662 296,342 21 Banks' own liabilities 102,028 80,256 99,070 78,445 80,400 77,801 76,780 79,376 81,721 99,070 22 Demand deposits 2,314 3,003 3,340 2,952 2,652 2,537 2,932 2,314 2,829 3,340 23 Time deposits2 41,396 29,506 30,462 26,323r 26,326r 24,407 25,301 29,152 28,701 30,462 24 Other3 58,318 47,747 65,268 49,170r 51,422r 50,857 48,547 47,910 50,191 65,268 25 Banks' custodial liabilities5 181,657 179,804 197,272 186,253 192,965 201,918 199,825 199,729 195,941 197,272 26 U.S. Treasury bills and certificates6 148,301 134,177 156,073 138,518 147,492 153,499 152,457 154,582 153,465 156,073 27 Other negotiable and readily transferable instruments7 33,151 44,953 41,152 47,582 45,094 48,297 46,633 44,804 42,331 41,152 28 Other 205 674 47 153 379 122 735 343 145 47 29 Banks10 815,247 885,336 908,791 910,223r 853,461r 888,409' 877,973' 874,089 921,423 908,791 30 Banks' own liabilities 641,447 676,057 723,707 695,308r 656,476r 677,012' 692,332' 698,212 739,658 723,707 31 Unaffiliated foreign banks 156,368 113,189 126,318 120,846r 118,674r 121,154' 127,030' 123,949 135,708 126,318 32 Demand deposits 16,767 14,071 17,543 15,812 14,086 15,436 14,084 17,111 14,402 17,543 33 Time deposits2 83,433 45,904 48,307 48,034r 49,523r 49,623' 49,655' 48,693 54,388 48,307 34 Other3 56,168 53,214 60,468 57,000r 55,065' 56,095' 63,291' 58,145 66,918 60,468 35 Own foreign offices4 485,079 562,868 597,389 574,462r 537,802r 555,858' 565,302' 574,263 603,950 597,389 36 Banks' custodial liabilities5 173,800 209,279 185,084 214,915r 196,985r 211,397 185,641' 175,877 181,765 185,084 37 U.S. Treasury bills and certificates6 31,915 35,359 16,927 27,757 28,284 26,314 24,749 22,203 19,512 16,927 38 Other negotiable and readily transferable instruments7 35,393 45,332 45,695 37,124r 37,663r 41,541 40,370 41,529 44,889 45,695 39 Other 106,492 128,588 122,462 150,034 131,038 143,542 120,522' 112,145 117,364 122,462 40 Other foreigners 172,405 190,558 201,983 191,945r 197,343r 200,987' 205,514 202,988 208,607 201,983 41 Banks' own liabilities 128,019 117,776 135,034 130,427 135,894 136,328 140,293 137,090 143,207 135,034 42 Demand deposits 12,247 12,312 21,903 17,509 26,379 26,936 27,557 19,839 25,587 21,903 43 Time deposits2 68,251 70,558 79,839 74,687r 73,065r 73,984' 74,026' 75,656 77,412 79,839 44 Other3 47,521 34,906 33,292 38,231r 36,450r 35,408' 38,710' 41,595 40,208 33,292 45 Banks' custodial liabilities5 44,386 72,782 66,949 61,518r 61,449' 64,659' 65,221 65,898 65,400 66,949 46 U.S. Treasury bills and certificates6 12,954 13,322 11,997 12,120 11,143 11,387 11,163 11,073 11,040 11,997 47 Other negotiable and readily transferable instruments7 24,964 51,017 45,495 39,180r 40,523' 43,435' 44,464 44,918 44,410 45,495 48 Other 6,468 8,443 9,457 10,218r 9,783' 9,837' 9,594 9,907 9,950 9,457 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 16,083 27,026 30,345 22,569 21,811 22,565 24,367 26,550 28,320 30,345 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 • April 2000 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 IItteemm 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec.p AREA 50 Total, all foreigners 1,283,027 l,347,837r 1,422,018 1,384,853r l,342,632r l,387,383r l,378,738r l,374,075r 1,421,735 1,422,018 51 Foreign countries 1,271,337 l,335,954r 1,407,116 l,366,866r l,324,169r l,369,115r l,360,092r l,356,182r 1,407,692 1,407,116 52 Europe 419,672 427,375r 441,248 432,727r 440,903r 452,653r 456,956r 442,523r 470,756 441,248 53 Austria 2,717 3,178 2,787 2,678 2,770 3,210 3,205 3,299 2,842 2,787 54 Belgium and Luxembourg 41,007 42,818 44,693 33,445r 33,913r 36,668r 36,890 38,590 41,171 44,693 55 Denmark 1,514 1,437 2,196 961 1,143 1,811 1,903 2,658 3,197 2,196 56 Finland 2,246 1,862 1,658 1,384 1,358 1,335 1,222 1,269 1,894 1,658 57 France 46,607 44,616 49,786 45,235 42,622 42,424 45,809 45,764 50,262 49,786 58 Germany 23,737 21,357 24,753 21,999 23,950 23,719 24,485r 25,479r 26,537 24,753 59 Greece 1,552 2,066 3,748 2,737 3,168 3,121 3,358 3,322 3,365 3,748 60 Italy 11,378 7,103 6,774 6,192 6,426 5,832r 6,231 6,306 5,264 6,774 61 Netherlands 7,385 10,793 8,307 12,152 12,206 11,292 11,634 13,882 12,775 8,307 62 Norway 317 710 1,327 1,049 1,184 1,333 1,225 951 1,364 1,327 63 Portugal 2,262 3,236r 2,228 2,439 2,237 1,912 1,976 1,875 2,148 2,228 64 Russia 7,968 2,439 5,469 2,871 2,756 2,665 2,816 3,713 3,655 5,469 65 Spain 18,989 15,781r 10,426 8,678 7,700 8,202r 9,479 9,287r 11,181 10,426 66 Sweden 1,628 3,027 4,652 2,966 3,851 3,779 4,571 5,381 5,518 4,652 67 Switzerland 39,023 50,654 66,529 65,967 60,758 76,176 69,338 65,967 6677,,002277 66,529 68 Turkey 4,054 4,286 7,844 5,914 7,786 7,883 8,368 8,252 88,,881188 7,844 69 United Kingdom 181,904 181,554 168,905 187,310 200,038 192,431 196,490 178,022 195,465 168,905 70 Yugoslavia11 239 233 286 254 289 270 266 267 267 286 71 Other Europe and other former U.S.S.R.12 25,145 30,225r 28,880 28,496 26,748 28,590r 27,690 28,239 28,006 28,880 72 Canada 28,341 30,212 34,109 30,416 29,862 30,409 29,728 34,995 33,746 34,109 73 Latin America and Caribbean 536,393 554,866r 593,206 610,258r 554,419r 581,419r 570,309r 573,215r 593,830 593,206 74 Argentina 20,199 19,014r 20,230 17,805r 17,205r 17,064r 15,547r 17,546r 16,733 20,230 75 Bahamas 112,217 118,085 134,142 123,549 122,465 132,442 139,101 134,111 139,179 134,142 76 Bermuda 6,911 6,846 7,878 9,168 9,410 9,319 8,747 10,902 8,859 7,878 77 Brazil 31,037 15,815r 12,861 14,717r 15,413r 15,423r 16,241r 13,253 14,185 12,861 78 British West Indies 276,418 302,486r 326,947 347,388r 294,245r 315,843r 299,669r 308,593r 325,793 326,947 79 Chile 4,072 5,015r 7,010 5,918 6,744 5,805 6,601 6,559 6,521 7,010 80 Colombia 3,652 4,624r 5,656 4,618r 4,637r 4,455r 4,71 lr 5,01lr 4,783 5,656 81 Cuba 66 62 75 70 70 72 76 72 73 75 82 Ecuador 2,078 1,572 1,955 1,930 1,975 1,724 1,792 1,833 1,930 1,955 83 Guatemala 1,494 l,336r 1,618 1,468 1,425 1,521 1,471 1,484 1,577 1,618 84 Jamaica 450 577 520 527 471 533 550 549 546 520 85 Mexico 33,972 37,157r 30,710 37,920 39,024 36,301 35,028 32,208 31,187 30,710 86 Netherlands Antilles 5,085 5,010 3,997 5,662 3,010r 3,408 2,927 2,688 3,389 3,997 87 Panama 4,241 3,864 4,416 4,130 3,846r 3,816 4,029 4,007 3,834 4,416 88 Peru 893 840 1,142 819r 837r 995r 1,042r 959 998 1,142 89 Uruguay 2,382 2,486 2,383 2,556r 2,323r 2,15lr 2,177r 2,218r 2,584 2,383 90 Venezuela 21,601 19,894 20,188 20,397r 20,437 19,797r 19,451 19,914 20,311 20,188 91 Other 9,625 10,183r 11,478 11,616 10,882r 10,750r 1 l,149r 1 l,308r 11,348 11,478 92 Asia 269,379 307,960 319,444 276,917r 283,218 288,982r 228877,,222277 228877,,996633 229922,,114422 331199,,444444 China 93 Mainland 18,252 13,441 12,325 13,366 10,872 12,359 11,914 10,460 13,981 12,325 94 Taiwan 11,840 12,708 13,595 11,408 12,482 12,678 12,514 12,023 14,791 13,595 95 Hong Kong 17,722 20,900 27,773 24,575 24,200 24,149 23,368 24,299 22,340 27,773 96 India 4,567 5,250 7,367 5,421 5,864 5,408 5,625 5,659 5,610 7,367 97 Indonesia 3,554 8,282 6,567 6,530 7,309 6,633 6,468 6,037 6,486 6,567 98 Israel 6,281 7,749 7,488 6,144 5,076 5,059 5,688 5,175 5,071 7,488 99 Japan 143,401 168,563 159,066 143,635 145,652 145,403 149,578 151,632 152,095 159,066 100 Korea (South) 13,060 12,524 12,840 12,901 12,792 12,723 11,903 9,935 8,474 12,840 101 Philippines 3,250 3,324 3,251 2,273 2,177 2,189 2,414 2,134 2,639 3,251 102 Thailand 6,501 7,359 6,050 5,296 6,054 5,809 5,281 4,983 5,164 6,050 103 Middle Eastern oil-exporting countries13 14,959 15,609 21,279 15,168 15,581 15,942 14,367 16,825 17,944 21,279 104 Other 25,992 32,251 41,843 30,200 35,159 40,630r 38,107 38,801 37,547 41,843 105 Africa 10,347 8,905 9,469 7,485 7,508 7,660 8,045r 8,037 7,799 9,469 106 Egypt 1,663 1,339 2,021 1,576 1,566 1,851 1,852 1,364 1,846 2,021 107 Morocco 138 97 179 101 116 108 118 174 166 179 108 South Africa 2,158 1,522 1,495 1,091 1,049 885 753 828 957 1,495 109 Zaire 10 5 14 16 13 13 13 14 13 14 110 Oil-exporting countries14 3,060 3,088 2,915 2,247 2,281 2,510 2,807 2,912 2,244 2,915 111 Other 3,318 2,854 2,845 2,454 2,483 2,293 2,502r 2,745 2,573 2,845 112 Other 7,205 6,636 9,640 9,063 8,259 7,992 7,827 9,449 9,419 9,640 113 Australia 6,304 5,495 8,378 7,624 7,252 6,963 6,788 8,199 8,394 8,378 114 Other 901 1,141 1,262 1,439 1,007 1,029 1,039 1,250 1,025 1,262 115 Nonmonetary international and regional organizations . . 11,690 11,883 14,902 17,987 18,463 18,268 18,646 17,893r 14,043 14,902 116 International15 10,517 10,221 13,002 14,987 15,822 16,112 16,570 16,009r 12,710 13,002 117 Latin American regional16 424 594 650 898 819 725 662 960 345 650 118 Other regional17 749 1,068 1,250 2,102 1,822 1,431 1,414 924 988 1,250 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999r AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec.p 1 Total, all foreigners 708,225 734,995 777,712 750,910 721,360 731,130 758,620 752,264 779,691 777,712 2 Foreign countries 705,762 731,378 773,572 746,837 716,953 727,974 755,030 746,974 774,026 773,572 3 Europe 199,880 233,321 304,840 300,007 293,100 305,205 316,152 293,602 313,250 304,840 4 Austria 1,354 1,043 2,607 2,519 3,855 3,080 2,335 2,751 2,407 2,607 5 Belgium and Luxembourg 6,641 7,187 10,097 10,028 9,224 7,478 7,239 9,624 9,332 10,097 6 Denmark 980 2,383 1,629 1,901 1,763 1,442 1,756 2,352 1,756 1,629 7 Finland 1,233 1,070 1,959 1,730 2,197 1,915 1,855 1,669 2,034 1,959 8 France 16,239 15,251 29,053 18,253 19,964 19,040 19,253 21,527 24,591 29,053 9 Germany 12,676 15,923 29,153 20,793 23,965 23,558 22,995 23,616 22,365 29,153 10 Greece 402 575 806 551 628 659 663 743 754 806 11 Italy 6,230 7,284 8,492 6,784 7,451 7,748 7,958 6,682 7,297 8,492 17 Netherlands 6,141 5,697 10,383 8,724 9,334 10,132 9,425 8,940 8,099 10,383 13 Norway 555 827 794 717 821 583 1,252 949 920 794 14 Portugal 777 669 1,571 1,122 1,056 1,222 1,342 1,691 1,430 1,571 15 Russia 1,248 789 713 768 831 782 814 871 711 713 16 Spain 2,942 5,735 3,795 6,181 4,606 3,700 5,104 4,073 4,641 3,795 17 Sweden 1,854 4,223 3,215 3,005 3,199 4,082 4,184 4,325 3,853 3,215 18 Switzerland 28,846 46,874 78,978 75,544 66,927 71,866 90,187 78,448 91,491 78,978 19 Turkey 1,558 1,982 2,568 2,289 2,221 2,270 2,385 2,394 2,462 2,568 20 United Kingdom 103,143 106,349 111,387 130,879 125,633 137,680 129,347 114,209 120,831 111,387 21 Yugoslavia2 52 53 50 54 50 49 50 51 50 50 22 Other Europe and other former U.S.S.R.3 7,009 9,407 7,590 8,165 9,375 7,919 8,008 8,687 8,226 7,590 23 Canada 27,189 47,037 37,127 37,454 31,957 32,109 37,197 35,903 37,060 37,127 7.4 Latin America and Caribbean 343,730 342,654 347,862 326,074 311,685 310,088 320,952 335,151 335,347 347,862 7.5 Argentina 8,924 9,552 10,166 10,777 10,479 10,253 10,293 10,153 10,038 10,166 76 Bahamas 89,379 96,455 93,960 71,996 77,049 77,674 85,386 87,085 87,179 93,960 77 Bermuda 8,782 5,011 8,007 6,111 7,813 9,747 8,481 9,887 9,449 8,007 78 Brazil 21,696 16,184 15,718 14,850 14,605 13,793 13,983 14,216 14,976 15,718 79 British West Indies 145,471 153,749 167,035 166,557 146,858 137,214 142,500 159,145 158,910 167,035 30 Chile 7,913 8,250 6,607 7,531 7,153 6,900 6,810 6,846 6,591 6,607 31 Colombia 6,945 6,507 4,526 5,567 5,587 5,040 4,818 4,800 4,745 4,526 37 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 1,311 1,400 761 1,069 993 889 844 793 762 761 34 Guatemala 886 1,127 1,134 1,033 1,075 1,053 1,064 1,084 1,090 1,134 35 Jamaica 424 239 294 303 311 322 330 318 308 294 36 Mexico 19,428 21,212 17,836 18,638 18,978 17,819 18,255 17,800 17,932 17,836 37 Netherlands Antilles 17,838 6,779 5,962 5,484 5,101 14,032 13,298 7,497 8,078 5,962 38 Panama 4,364 3,584 3,389 3,353 3,064 2,898 2,941 2,917 3,050 3,389 39 Peru 3,491 3,275 2,529 2,972 2,710 2,515 2,533 2,442 2,507 2,529 40 Uruguay 629 1,126 801 1,046 1,101 1,041 945 778 775 801 41 Venezuela 2,129 3,089 3,494 3,474 3,501 3,460 3,325 4,103 3,587 3,494 42 Other 4,120 5,115 5,643 5,313 5,307 5,438 5,146 5,287 5,370 5,643 43 125,092 98,607 74,490 74,703 72,636 73,257 72,449 73,072 78,427 74,490 China 44 Mainland 1,579 1,261 2,090 3,745 3,144 2,758 2,032 1,998 2,082 2,090 45 Taiwan 922 1,041 1,339 870 904 937 790 816 1,495 1,339 46 Hong Kong 13,991 9,080 5,706 7,102 5,333 4,969 5,224 4,740 6,010 5,706 47 India 2,200 1,440 1,737 1,569 1,708 1,728 1,736 1,856 1,972 1,737 48 Indonesia 2,651 1,942 1,776 1,760 1,791 1,711 1,689 1,636 1,681 1,776 49 Israel 768 1,166 1,844 1,955 1,433 1,669 951 857 1,059 1,844 50 Japan 59,549 46,713 28,630 27,093 25,900 26,226 27,978 28,339 30,280 28,630 51 Korea (South) 18,162 8,289 9,219 11,317 12,753 12,194 11,093 12,432 13,254 9,219 57 Philippines 1,689 1,465 1,675 1,669 1,380 1,279 1,491 1,562 990 1,675 53 Thailand 2,259 1,807 1,517 1,850 1,683 1,549 1,432 1,411 1,433 1,517 54 Middle Eastern oil-exporting countries4 10,790 16,130 13,987 10,137 9,792 11,221 11,379 10,667 11,631 13,987 55 Other 10,532 8,273 4,970 5,636 6,815 7,016 6,654 6,758 6,540 4,970 56 Africa 3,530 3,122 2,260 2,629 2,499 2,178 2,293 2,299 2,473 2,260 57 Egypt 247 257 258 241 252 209 225 251 233 258 58 Morocco 511 372 352 454 431 444 437 439 354 352 59 South Africa 805 643 608 724 598 449 506 589 873 608 60 Zaire 0 0 24 0 0 0 0 0 9 24 61 Oil-exporting countries5 1,212 936 276 340 297 280 323 253 275 276 62 Other 755 914 742 870 921 796 802 767 729 742 63 Other 6,341 6,637 6,993 5,970 5,076 5,137 5,987 6,947 7,469 6,993 64 Australia 5,300 6,173 6,741 5,636 4,811 4,907 5,770 6,696 7,272 6,741 65 Other 1,041 464 252 334 265 230 217 251 197 252 66 Nonmonetary international and regional organizations6 . . . 2,463 3,617 4,140 4,073 4,407 3,156 3,590 5,290 5,665 4,140 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 • April 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 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec.? 1 Total 852,852 875,891 898,511 900,582 2 Banks' claims 708,225 734,995 777,712 750,910 721,360 731,130 758,620 752,264 779,691 777,712 3 Foreign public borrowers 20,581 23,542 34,511 37,349 38,471 35,701 35,002 40,948 39,910 34,511 4 Own foreign offices2 431,685 484,535 514,320 488,874 461,013 457,994 488,355 487,578 511,612 514,320 5 Unaffiliated foreign banks 109,230 106,206 101,185 104,078 99,727 108,902 102,029 97,287 99,527 101,185 6 Deposits 30,995 27,230 34,307 24,194 24,804 23,708 24,407 24,868 27,825 34,307 7 Other 78,235 78,976 66,878 79,884 74,923 85,194 77,622 72,419 71,702 66,878 8 All other foreigners 146,729 120,712 127,696 120,609 122,149 128,533 133,234 126,451 128,642 127,696 9 Claims of banks' domestic customers3 144,627 140,896 147,601 141,962 10 Deposits 73,110 79,363 94,575 87,222 11 Negotiable and readily transferable instruments4 53,967 47,914 42,670 40,604 12 Outstanding collections and other claims 17,550 13,619 10,356 14,136 MEMO 13 Customer liability on acceptances 9,624 4,519 4,450 4,614 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 33,816 39,978 34,789 29,165 32,857 32,336 27,750 33,847R 37,163 34,789 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 8 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 17, Africa 1,295 1,316 2,211 1,835 1,571 1,543 1,119 1.3 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 7,941 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 Allother3 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 6 Italy 11.5 16.0 20.2 19.3 15.5 19.7 19.5 18.0 11.5 13.2 11.6 7 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 2.3 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 26 Ecuador .7 1.1 .9 1.2 1.3 1.3 1.2 1.2 1.2 1.1 1.0 27 Venezuela 2.7 2.4 2.1 2.2 2.5 3.3 3.2 3.1 3.2 3.4 3.1 7.8 Indonesia 4.8 5.2 5.6 6.5 6.7 5.5 5.1 4.7 4.8 4.5 4.9 29 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 32 Argentina 12.9 14.3 16.4 17.1 18.4 19.3 20.2 22.3 22.3 23.5 22.0 33 Brazil 13.7 20.7 27.3 26.1 28.6 32.4 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 42 Israel .5 .5 .8 1.0 .7 .7 .9 .9 1.1 1.1 2.0 43 Korea (South) 19.1 21.5 16.3 16.2 15.6 16.2 14.5 12.9 13.7 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 62 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 • April 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. 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 lb 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 1,528 1,369 11,,118800 21 Bahamas 59 236 141 6 1 7 1 1 11 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 countries1 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 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999955 11999966 11999977 June Sept. Dec. Mar. June Sept. 1 Total 52,509 65,897 68,128 63,188 67,976 77,462 68,973 63,804 65,602 ? 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 3311,,887777 3311,,993399 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 P 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 70 Netherlands 517 493 677 975 867 875 955 959 1,067 71 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 ?4 Latin America and Caribbean 14,500 20,032 15,543 11,967 15,758 27,714 18,825 11,486 11,221 ?5 Bahamas 1,965 1,553 2,308 1,306 2,105 403 666 467 755 76 Bermuda 81 140 108 48 63 39 41 39 77 77 Brazil 830 1,468 1,313 1,394 710 835 1,112 1,102 1,265 78 British West Indies 10,393 15,536 10,462 7,349 10,960 24,388 14,621 7,393 6,182 99 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 37 Japan 871 1,035 823 886 928 1,194 942 949 1,250 33 Middle Eastern oil-exporting countries' 3 22 11 12 13 9 8 5 5 34 Africa 276 174 319 155 157 159 174 228 251 35 Oil-exporting countries2 5 14 15 15 16 16 26 5 12 36 All other3 583 569 652 732 663 563 578 636 622 Commercial claims 37 Europe 9,824 10,443 12,120 12,882 13,029 13,246 12,782 12,961 1144,,335566 38 Belgium and Luxembourg 231 226 328 216 219 238 281 286 289 39 France 1,830 1,644 1,796 1,955 2,098 2,171 2,173 2,094 2,373 40 Germany 1,070 1,337 1,614 1,757 1,502 1,822 1,599 1,660 1,945 41 Netherlands 452 562 597 492 463 467 415 389 617 47 Switzerland 520 642 554 418 546 483 367 385 714 43 United Kingdom 2,656 2,946 3,660 4,664 4,681 4,769 4,529 4,615 4,789 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 57 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 55 654 746 680 657 740 711 685 738 681 56 Oil-exporting countries2 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 • April 2000 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 1999 1999 Transaction, and area or country 1998 1999 J D an e .— c. June Julyr Aug.r Sept.r Oct.r Nov. Dec.p U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192r 2,340,659 2,340,659 179,791r 187,705 178,051 175,193 218,983 240,329 256,414 2 Foreign sales 1,524,203r 2,233,137 2,233,137 167.885r 179,386 165,889 171,908 211,213 221,911 247,460 3 Net purchases, or sales (—) 49,989r 107,522 107,522 ll,906r 8,319 12,162 3,285 7,770 18,418 8,954 4 Foreign countries 50,369r 107,578 107,578 ll,892r 8,364 12,179 3,282 7,796 18,393 8,983 5 Europe 68,124 98,060 98,060 7,665r 6,183 9,511 7,196 7,760 10,695 13,283 6 France 5,672 3,813 3,813 919r -57 254 91 1,020 -369 66 I Germany 9,195 13,410 13,410 l,376r -334 1,309 114 1,719 2,467 1,587 8 Netherlands 8,249 8,083 8,083 L,181r 403 564 -539 159 1,375 1,640 9 Switzerland 5,001 5,650 5,650 l,452r -2,809 814 1,194 -1,418 384 1,495 10 United Kingdom 23,952 42,902 42,902 l,302r 8,491 4,560 4,786 3,836 3,966 3,080 11 Canada -4,689 -335 -335 404r 143 -7 -931 543 -958 -940 12 Latin America and Caribbean 757r 5,187 5,187 2,474r 2,933 841 -4,693 -3,162 7,746 -4,735 13 Middle East1 -1,449 -1,068 -1,068 64 -273 170 -25 -14 -1,197 465 14 Other Asia -12,351r 4,447 4,447 1,269r -670 1,643 1,438 2,386 2,350 752 15 Japan -1,171 5,723 5,723 681 -452 1,269 2,652 1,695 630 211 16 Africa 639 372 372 81 14 -39 61 -23 1 -18 17 Other countries -662 915 915 -65r 34 60 236 306 -244 176 18 Nonmonetary international and regional organizations -380 -56 -56 14 -45 -17 3 -26 25 -29 BONDS2 19 Foreign purchases 905,782 856,214 856,214 68,260r 76,427 65,007 76,263 80,926 74,940 56,713 20 Foreign sales 727,044 602,109 602,109 52,197 47,982 46,661 48,902 55,120 50,839 41,321 21 Net purchases, or sales (—) 178,738 254,105 254,105 16,063r 28,445 18,346 27,361 25,806 24,101 15,392 22 Foreign countries 179,081 254,507 254,507 16,074r 28,171 18,373 27,030 26,670 24,172 15,411 23 Europe 130,057 140,084 140,084 10,244r 18,194 11,105 13,719 14,376 11,639 7,285 24 France 3,386 1,870 1,870 258 447 160 24 52 53 269 25 Germany 4,369 7,723 7,723 321 1,707 31 752 1,203 1,327 -228 26 Netherlands 3,443 2,446 2,446 187 336 144 279 103 133 183 27 Switzerland 4,826 4,553 4,553 -26 705 322 496 360 429 462 28 United Kingdom 99,637 105,754 105,754 8,342r 13,580 8,643 99,,776611 10,668 9,241 5,825 29 Canada 6,121 6,043 6,043 184 -22 286 990088 271 1,506 961 30 Latin America and Caribbean 23,938 60,861 60,861 4,603 5,076 5,561 5,488 6,396 6,652 4,094 31 Middle East1 4,997 1,979 1,979 -114 -182 -219 257 178 -506 309 32 Other Asia 12,662 42,842 42,842 1,458 4,695 1,179 6,698 4,847 4,566 2,591 33 Japan 8,384 17,541 17,541 310 3,684 827 4,375 2,081 2,297 1,437 34 Africa 190 1,411 1,411 -307 122 59 -189 343 146 257 35 Other countries 1,116 1,287 1,287 6 288 402 149 259 169 -86 36 Nonmonetary international and regional organizations -343 -402 -402 -11 274 -27 331 -864 -71 -19 Foreign securities 37 Stocks, net purchases, or sales (-) 6,227 15,643 15,643 6,220 -2,198 598 825 -8,206 3,816 -1,504 38 Foreign purchases 929,923 1,177,304 1,177,304 97,622 106,244 91,801 97,384 96,523 129,534 125,954 39 Foreign sales 923,696 1,161,661 1,161,661 91,402 108,442 91,203 96,559 104,729 125,718 127,458 40 Bonds, net purchases, or sales (-) -17,350 -5,676 -5,676 8,845r -4,777 -6,421 1,132 -1,320 -512 3,872 41 Foreign purchases 1,328,281 798,267 798,267 79,013 63,975 70,061 66,661 62,533 59,650 52,227 42 Foreign sales 1,345,631 803,943 803,943 70,168r 68,752 76,482 65,529 63,853 60,162 48,355 43 Net purchases, or sales (—), of stocks and bonds .... -11,123 9,967 9,967 15,065r -6,975 -5,823 1,957 -9,526 3,304 2,368 44 Foreign countries -10,778 9,682 9,682 15,095r -7,066 -6,006 2,027 -9,532 3,496 2,210 45 Europe 12,632 59,247 59,247 16,725r -3,747 -1,814 2,224 2,202 2,238 5,001 46 Canada -1,901 -999 -999 1,202 -1,038 528 301 315 -1,671 1,342 47 Latin America and Caribbean -13,798 -4,726 -4,726 -2,785 453 -312 581 -1,950 6,403 524 48 Asia -3,992 -42,961 -42,961 194 -3,329 -4,304 -429 -9,603 -4,048 -4,945 49 Japan -1,742 -43,637 -43,637 -1,241 -4,323 -4,805 -565 -10,006 -4,453 -3,596 50 Africa -1,225 713 713 -25 -21 4 -116 63 160 535 51 Other countries -2,494 -1,592 -1,592 -216r 616 -108 -534 -559 414 -247 52 Nonmonetary international and regional organizations -345 285 285 -30 91 183 -70 6 -192 158 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 11999988 11999999 Jan.- June July Aug. Sept. Oct. Nov. Dec.p Dec. 1 Total estimated 49,039 -9,953 -9,953 -609 —6,236r 19,118 90r —9,733r -3,615 4,642 2 Foreign countries 46,570 -10,518 -10,518 -815 —6,220r 18,847 -1' -9,904' -3,802 4,566 3 Europe 23,797 -38,228 -38,228 -5,796 —5,739r 1,771 —9,265r -405 8,643 -5,533 4 Belgium and Luxembourg 3,805 -81 -81 753 37 105 12 -351 -357 -798 5 Germany 144 2,285 2,285 538 643 1,438 -963 78 510 607 6 Netherlands -5,533 2,122 2,122 -77 -1,224 453 -423 130 360 268 7 Sweden 1,486 1,699 1,699 579 -229 876 -45 -6 369 317 8 Switzerland 5,240 -1,761 -1,761 971 -215r -714 237r 365 144 1,403 9 United Kingdom 14,384 -20,232 -20,232 -7,215 1,385 1,934 -3,534 -1,854 5,837 -3,481 10 Other Europe and former U.S.S.R 4,271 -22,260 -22,260 -1,345 -6,136 -2,321 -4,549 1,233 1,780 -3,849 11 Canada 615 7,348 7,348 460 1,382 1,339 1,459 -656r -550 218 12 Latin America and Caribbean -3,662 -7,523 -7,523 -1,403 698r 8,695 3,003 -9,911 -5,417 806 13 Venezuela 59 362 362 -31 131 15 10 25 154 -33 14 Other Latin America and Caribbean 9,523 1,661 1,661 -52 -38r 1,650 2,982 -1,777 1,362 576 15 Netherlands Antilles -13,244 -9,546 -9,546 -1,320 605 7,030 11 -8,159 -6,933 263 16 Asia 27,433 29,359 29,359 6,489 -2,319 6,832 5,344 942 -6,630 9,718 17 Japan 13,048 20,102 20,102 4,905 -394 2,913 5,259 344 -4,378 8,263 18 Africa 751 -3,021 -3,021 -246 -178 -622 -302 -202 -680 -541 19 Other -2,364 1,547 1,547 -319 -64 832 -240 328 832 -102 20 Nonmonetary international and regional organizations 2,469 565 565 206 -16 271 91 171 187 76 21 International 1,502 190 190 -8 -101 233 98 184 125 75 22 Latin American regional 199 666 666 192 191 175 -9 -1 -4 1 MEMO 23 Foreign countries 46,570 -10,518 -10,518 -815 —6,220r 18,847 -1 -9,904r -3,802 4,566 24 Official institutions 4,123 -9,861 -9,861 397 -1,773 2,394 -1,714 -1,248 -2,325 4,962 25 Other foreign 42,447 -657 -657 -1,212 -4,447r 16,453 l,713r -8,656r -1,477 -396 Oil-exporting countries 26 Middle East2 -16,554 2,207 2,207 238 -38 130 401 201 -2,050 -3,556 27 Africa3 2 0 0 0 0 1 0 0 0 -1 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria. countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • April 2000 3.28 FOREIGN EXCHANGE RATES AND INDEXES OF THE FOREIGN EXCHANGE VALUE OF THE U.S. DOLLAR1 Currency units per U.S. dollar except as noted 1999 2000 IItteemm 11999977 11999988 11999999 Sept. Oct. Nov. Dec. Jan. Feb. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 64.95 65.09 63.88 64.10 65.60 62.78 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 1.8987 1.9688 1.9314 1.8442 1.8057 1.7765 5 Canada/dollar 1.3849 1.4836 1.4858 1.4771 1.4776 1.4674 1.4722 1.4486 1.4512 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2774 8.2775 8.2782 8.2794 8.2792 8.2781 7 Denmark/krone 6.6092 6.7030 6.9900 7.0828 6.9450 7.2019 7.3597 7.3492 7.5725 8 European Monetary Union/euro3 n.a. n.a. 1.0653 1.0497 1.0706 1.0328 1.0110 1.0131 0.9834 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 273.28 295.70 306.30 311.68 307.71 318.24 326.19 326.86 338.87 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7665 7.7696 7.7718 7.7728 7.7791 7.7816 14 India/rupee 36.36 41.36 43.13 43.60 43.55 43.46 43.52 43.59 43.65 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 121.06 130.99 113.73 106.88 105.97 104.65 102.58 105.30 109.39 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 9.341 9.575 9.416 9.427 9.494 9.427 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 52.30 51.42 51.22 50.87 51.27 49.03 22 Norway/krone 7.0857 7.5521 7.8071 7.8361 7.7402 7.9367 8.0113 8.0241 8.2374 23 Portugal/escudo 175.44 180.25 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 74 Singapore/dollar 1.4857 1.6722 1.6951 1.6965 1.6757 1.6699 1.6745 1.6757 1.7028 25 South Africa/rand 4.6072 5.5417 6.1191 6.0563 6.1029 6.1424 6.1503 6.1309 6.3209 76 South Korea/won 947.65 1,400.40 1,189.84 1,201.00 1,205.29 1,176.98 1,136.80 1,130.99 1,129.75 77 Spain/peseta 146.53 149.41 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 78 Sri Lanka/rupee 59.026 65.006 70.868 71.942 71.747 72.040 72.018 73.140 73.552 79 Sweden/krona 7.6446 7.9522 8.2740 8.2264 8.1492 8.3586 8.4910 8.4918 8.6480 30 Switzerland/franc 1.4514 1.4506 1.5045 1.5262 1.4896 1.5543 1.5841 1.5903 1.6348 31 Taiwan/dollar 28.775 33.547 32.322 31.848 31.828 31.794 31.625 30.890 30.806 3? Thailand/baht 31.072 41.262 37.887 40.060 39.416 38.749 38.227 37.380 37.759 33 United Kingdom/pound2 163.76 165.73 161.72 162.47 165.72 162.05 161.32 164.04 160.00 34 Venezuela/bolivar 488.39 548.39 606.82 625.41 630.75 634.80 644.28 652.81 659.44 Indexes4 NOMINAL 35 Broad (January 1997= 100)5 104.44 116.48 116.87 116.38 115.88 116.08 116.09 115.95 117.44 36 Major currencies (March 1973= 100)6 91.24 95.79 94.07 92.92 91.94 92.87 93.23 93.14 95.31 37 Other important trading partners (January 1997 = 100)7 104.67 126.03 129.94 130.60 131.06 129.93 129.34 129.14 129.11 REAL 38 Broad (March 1973 = 100)' 91.33 99.35 98.87r 98.54r 98.02 98.20 98.13 98.07 98.79 39 Major currencies (March 1973 = 100)6 92.25 97.25 96.84r 95.91r 95.01r 96.11 96.42 96.62 98.48 40 Other important trading partners (March 1973= 100)7 95.87 108.52 107.74r 108.38r 108.38 107.23r 106.65r 106.22r 105.44r 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. U.S. cents per currency unit. 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 By convention, the rate is reported in U.S. dollars per euro. These currency rates can be average of U.S. bilateral import shares from and export shares to the issuing country and of a derived from the euro rate by using the fixed conversion rates (in currencies per euro) as measure of the importance to U.S. exporters of that country's trade in third country markets. shown below: 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of broad index currencies that circulate widely outside the country of issue. The weight for each Euro equals currency is its broad index weight scaled so that the weights of the subset of currencies in the 13.7603 Austrian schillings 1936.27 Italian lire index sum to one. 40.3399 Belgian francs 40.3399 Luxembourg francs 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 5.94573 Finnish markkas 2.20371 Netherlands guilders broad index currencies that do not circulate widely outside the country of issue. The weight 6.55957 French francs 200.482 Portuguese escudos for each currency is its broad index weight scaled so that the weights of the subset of 1.95583 German marks 166.386 Spanish pesetas currencies in the index sum to one. .787564 Irish pounds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A63 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 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 A72 June 30, 1999 November 1999 A72 September 30, 1999 February 2000 A72 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 A72 1998 September 1999 A73 Small loans to businesses and farms 1997 September 1998 A76 1998 September 1999 A76 Community development lending reported under the Community Reinvestment Act 1997 September 1998 A79 1998 September 1999 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • April 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 BANKERS acceptances, 5, 10, 22, 23 Federal Housing Administration, 30, 34, 35 Bankers balances, 15-21. (See also Foreigners) Federal Land Banks, 35 Bonds (See also U.S. government securities) Federal National Mortgage Association, 30, 34, 35 New issues, 31 Federal Reserve Banks Rates, 23 Condition statement, 10 Business activity, nonfinancial, 42 Discount rates (See Interest rates) Business loans (See Commercial and industrial loans) U.S. government securities held, 5, 10, 11, 27 Federal Reserve credit, 5, 6, 10, 12 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, 37^11 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, 55-57, 59 Construction, 42, 46 Liabilities to, 51-53, 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, 4-6, 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 an<I 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, 9-11, 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

A65 Loans (See also specific types) Savings and loan associations, 35-41 Commercial banks, 15-21 Savings deposits (See Time and savings deposits) Federal Reserve Banks, 5-7, 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 Money stock 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 U.S. international transactions, 50-62 Commercial banks, 15-21 Utilities, production, 45 Depository institutions, 4—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, 37^11 National income accounts, 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • April 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 DALE W. HENDERSON, Associate Director ROSANNA PIANALTO-CAMERON, Special Assistant to the Board THOMAS A. CONNORS, Deputy Associate Director DIANE E. WERNEKE, Special Assistant to the Board DONALD B. ADAMS, Senior Adviser RICHARD T. FREEMAN, Assistant Director WILLIAM L. HELKIE, Assistant Director LEGAL DIVISION STEVEN B. KAMIN, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel RALPH W. TRYON, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel RICHARD M. ASHTON, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS OLIVER IRELAND, Associate General Counsel MICHAEL J. PRELL, Director KATHLEEN M. O'DAY, Associate General Counsel EDWARD C. ETTIN, Deputy Director ANN E. MISBACK, Assistant General Counsel DAVID J. STOCKTON, Deputy Director SANDRA L. RICHARDSON, Assistant General Counsel WILLIAM R. JONES, Associate Director STEPHEN L. SICILIANO, Assistant General Counsel MYRON L. KWAST, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel PATRICK M. PARKINSON, Associate Director THOMAS D. SIMPSON, Associate Director LAWRENCE SLIFMAN, Associate Director OFFICE OF THE SECRETARY MARTHA S. SCANLON, Deputy Associate Director JENNIFER J. JOHNSON, Secretary STEPHEN D. OLINER, Assistant Director ROBERT DEV. FRIERSON, Associate Secretary STEPHEN A. RHOADES, Assistant Director BARBARA R. LOWREY, Associate Secretary and Ombudsman JANICE SHACK-MARQUEZ, Assistant Director CHARLES S. STRUCKMEYER, Assistant Director DIVISION OF BANKING ALICE PATRICIA WHITE, Assistant Director JOYCE K. ZICKLER, Assistant Director SUPERVISION AND REGULATION GLENN B. CANNER, Senior Adviser RICHARD SPILLENKOTHEN, Director DAVID S. JONES, Senior Adviser STEPHEN C. SCHEMERING, Deputy Director HERBERT A. BIERN, Associate Director DIVISION OF MONETARY AFFAIRS ROGER T. COLE, Associate Director DONALD L. KOHN, Director WILLIAM A. RYBACK, Associate Director DAVID E. LINDSEY, Deputy Director GERALD A. EDWARDS, JR., Deputy Associate Director BRIAN F. MADIGAN, Associate Director STEPHEN M. HOFFMAN, JR., Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director JAMES V. HOUPT, Deputy Associate Director WILLIAM C. WHITESELL, Assistant Director JACK P. JENNINGS, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board MICHAEL G. MARTINSON, Deputy Associate Director SIDNEY M. SUSSAN, Deputy Associate Director DIVISION OF CONSUMER MOLLY S. WASSOM, Deputy Associate Director HOWARD A. AMER, Assistant Director AND COMMUNITY AFFAIRS NORAH M. BARGER, Assistant Director DOLORES S. SMITH, Director BETSY CROSS, Assistant Director GLENN E. LONEY, Deputy Director RICHARD A. SMALL, Assistant Director SANDRA F. BRAUNSTEIN, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, MAUREEN P. ENGLISH, Assistant Director National Information Center ADRIENNE D. HURT, Assistant Director IRENE SHAWN MCNULTY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A67 EDWARD M. GRAMLICH OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS LOUISE L. ROSEMAN, Director STEPHEN R. MALPHRUS, Staff Director PAUL W. BETTGE, Assistant Director KENNETH D. BUCKLEY, Assistant Director MANAGEMENT DIVISION JACK DENNIS, JR., Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JOSEPH H. HAYES, JR., Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources JEFFREY C. MARQUARDT, Assistant Director Function EDGAR A. MARTINDALE, Assistant Director SHEILA CLARK, EEO Programs Director MARSHA REIDHILL, Assistant Director DIVISION OF SUPPORT SERVICES JEFF J. 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 MAUREEN T. HANNAN, Associate Director TILLENA G. CLARK, Assistant Director GEARY L. CUNNINGHAM, Assistant Director Po KYUNG KIM, Assistant Director RAYMOND H. MASSEY, Assistant Director SHARON L. MOWRY, Assistant Director DAY W. RADEBAUGH, JR., Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Federal Reserve Bulletin • April 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

A69 CONSUMER ADVISORY COUNCIL DWTGHT 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

A70 Federal Reserve Bulletin • April 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, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volume to Fair Lending $5.00. How to File a Consumer Complaint about a Bank GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 672 pp. $8.50 each. Making Sense of Savings FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated SHOP: The Card You Pick Can Save You Money monthly. (Requests must be prepaid.) Welcome to the Federal Reserve Consumer and Community Affairs Handbook. $75.00 per year. When Your Home is on the Line: What You Should Know Monetary Policy and Reserve Requirements Handbook. $75.00 About Home Equity Lines of Credit per year. Keys to Vehicle Leasing Securities Credit Transactions Handbook. $75.00 per year. Looking for the Best Mortgage The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 STAFF STUDIES: Only Summaries Printed in the 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by BULLETIN James T. Fergus and John L. Goodman, Jr. July 1993. 20 pp. Studies and papers on economic and financial subjects that are of general interest. Requests to obtain single copies of the full text or 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKto be added to the mailing list for the series may be sent to ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Publications Services. PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, 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

A72 Federal Reserve Bulletin • April 2000 Maps of the Federal Reserve System LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. most recently in February 1996. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 1-A 2-B 3-C 4-D 5-E ME Pittsburgh Baltimore MD NY k (J 'C I OH \ NC Buffalo Cincinnati •Charlotte MA ™ / I C1' ^RI nj ny sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H Nashville KY / IL / IN Derroil • Lou isville IA V _ TN LA Jacksonville Memphis New Orleans fl Little Y MS Miami ATLANTA CHICAGO ST. LOUIS 9-1 ND MN • Helena Ml MINNEAPOLIS 10-J 12-L VLY MlisSISl^el KS ^ • MO Denver lip •NM Oklahoma Cit\ • OK KANSAS CITY 11-K MM DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • April 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 JohnT. 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