Federal Reserve Bulletin, 2000-05

Volume 86 • Number 5 • May 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 301 U.S. INTERNATIONAL TRANSACTIONS to be used to pay down the nation's debt (Testi- IN 1999 mony before the Senate Special Committee on Aging, March 27, 2000). The U.S. current account deficit increased substantially in 1999 as the balances on goods and 320 Louise L. Roseman, Director, Division of services, investment income, and unilateral Reserve Bank Operations and Payment Systems, transfers all became more negative. The remark- comments on a variety of issues that affect our able strength of the U.S. economy contributed nation's coins and currency, in particular the significantly to a marked decrease in the balance advantages and disadvantages of issuing U.S. on goods and services; to a lesser extent, previ- bank notes in denominations higher than $100; ous declines in U.S. price competitiveness also she testifies that the law enforcement commuplayed a role. The balance on investment income nity has expressed concern about the dispropordecreased because of the additional net income tionate use of large-denomination bank notes for payments on the growing U.S. external indebted- illicit activity, including money laundering, drug ness. In 2000, domestic spending may well trafficking, and tax evasion, and that in weighcontinue to outstrip domestic production and ing the marginal benefits of introducing a increase the current account deficit. But adjust- high-denomination U.S. bank note against law ments that should slow the process are also at enforcement concerns, there does not seem to be work. any immediate need to issue high-denomination notes (Testimony before the Subcommittee on Domestic and International Monetary Policy of 315 INDUSTRIAL PRODUCTION AND CAPACITY the House Committee on Banking and Financial UTILIZATION FOR MARCH 2000 Services, March 28, 2000). Industrial production increased 0.3 percent in March, to 142.0 percent of its 1992 average, 324 ANNOUNCEMENTS after having increased an average of xh percent Action by the Federal Open Market Committee in the previous three months. The rate of capacand an increase in the discount rate. ity utilization for total industry edged down in March to 81.4 percent, a level about Vi percent- Revisions to the official staff commentary on age point below its 1967-99 average. Regulation Z. Amendments to the interim rule regarding pro- 318 STATEMENTS TO THE CONGRESS cedures for electing to be treated as a financial holding company. Alan Greenspan, Chairman, Board of Governors, discusses the options available for placing Interim rule listing financial activities that will social security and Medicare on a firmer fiscal be permissible for financial holding companies. footing and states that increasing our national Interim rule permitting qualifying state member saving is essential to any successful reform of banks to establish financial subsidiaries. social security or Medicare; he testifies further that the most important decision facing policy- Interim rule on operating standards for financial makers today is not about the distribution of holding companies that have securities affiliates. future resources but about the level of future Elections to be treated as financial holding resources available for future workers and retircompanies. ees and that the most effective means of raising the level of future resources is to allow the Interim rule governing the merchant banking budget surpluses projected in the coming years activities of financial holding companies. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Interim rule on an alternative to the debt 353 DIRECTORS OF THE FEDERAL RESERVE rating requirement for establishing financial BANKS AND BRANCHES subsidiaries. List of Directors, by Federal Reserve District. Issuance of host state loan-to-deposit ratios to determine compliance with section 109 of the A1 FINANCIAL AND BUSINESS STATISTICS Interstate Act (Riegle-Neal Interstate Banking These tables reflect data available as of and Branching Efficiency Act of 1994). March 29, 2000. Enforcement actions and terminations of previous actions. A3 GUIDE TO TABULAR PRESENTATION Publication of a new edition of Guide to the A4 Domestic Financial Statistics Flow of Funds Accounts. A42 Domestic Nonfinancial Statistics A50 International Statistics 328 MINUTES OF THE FEDERAL OPEN MARKET COMMITTEE MEETING HELD ON A63 GUIDE TO STATISTICAL RELEASES AND FEBRUARY 1-2, 2000 At this meeting, the Committee voted to ap- SPECIAL TABLES prove without change the growth ranges for M2, M3, and debt for 2000 that it had established on A76 INDEX TO STATISTICAL TABLES a tentative basis on June 30, 1999. For the intermeeting period ahead, the Committee voted A78 BOARD OF GOVERNORS AND STAFF to tighten reserve conditions by a modest amount consistent with an increase in the federal A80 FEDERAL OPEN MARKET COMMITTEE AND STAFF; ADVISORY COUNCILS funds rate of lA percentage point to a level of 53A percent. A82 FEDERAL RESERVE BOARD PUBLICATIONS 339 LEGAL DEVELOPMENTS A84 MAPS OF THE FEDERAL RESERVE SYSTEM Various bank holding company, bank service corporation, and bank merger orders; and pend- A86 FEDERAL RESERVE BANKS, BRANCHES, ing cases. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PUBLICATIONS COMMITTEE Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Michael J. Prell • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens The Federal Reserve Bulletin is issued monthly under the direction of the staff publications committee. This committee is responsible for opinions expressed except in official statements and signed articles. It is assisted by the Economic Editing Section headed by S. Ellen Dykes, the 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

U.S. International Transactions in 1999 Francis E. Warnock, of the Board's Division of Inter- which moved into deficit in 1998 for the first time national Finance, prepared this article. Nancy E. since 1914—became even more negative, mainly Baer provided research assistance. because of a large decline in net portfolio income. The current account deficit reached 3.7 percent of The U.S. current account deficit increased substan- U.S. gross domestic product (GDP) last year, surpasstially in 1999 as the balances on goods and services, ing the previous record set in 1987. This deficit and investment income, and unilateral transfers all the continued U.S. investment abroad were more than became more negative. The remarkable strength of financed by huge foreign acquisitions of U.S. assets. the U.S. economy contributed significantly to a A record amount of private foreign investment marked decrease in the balance on goods and ser- poured into the United States; moreover, substantial vices; to a lesser extent, previous declines in U.S. foreign official inflows resumed after the Asian and price competitiveness also played a role. The balance Russian financial crises of 1997 and 1998. on investment income decreased because of the additional net income payments on the growing U.S. external indebtedness. MAJOR ECONOMIC INFLUENCES ON U.S. Most of the widening of the current account deficit INTERNATIONAL TRANSACTIONS in 1999 was due to the large and growing gap between U.S. imports and U.S. exports of goods Several factors shaped the U.S. current and financial (table 1). Exports increased as foreign economies accounts in 1999.1 The most important of these were rebounded sharply after a weak performance in 1998, but imports increased even more, primarily because 1. To conform with international conventions, U.S. international of the greater strength of the U.S. economy. The transactions are now presented in three groups—a current account, a dollar did not strengthen further in 1999, but the capital account, and a financial account. Previously, transactions were continued effect of its sharp appreciation in 1997 and presented in two groups—a current account and a capital account. The new financial account is the same as the previous capital account. The 1998 increased imports and reduced exports. A new capital account consists of a small part of unilateral transfers that reduced surplus in trade of services and an increased were previously in the current account. More details may be found in deficit in unilateral transfers added to the growth Christopher L. Bach, "U.S. International Transactions, Revised Estimates for 1982-98," Survey of Current Business, vol. 79 (July 1999), of the deficit. The balance on investment income— pp. 60-72. 1. U.S. international transactions, 1995-99 Billions of dollars except as noted Change, Item 1995 1996 1997 1998 1999 1998 to 1999 Trade in goods and services, net -98 -104 -105 -164 -268 -103 Goods, net -174 -191 -197 -247 -347 -100 Services, net 76 87 92 83 80 -3 24 22 8 -7 -19 -12 Unilateral current transfers, net -35 -42 -42 -44 -47 -3 Current account balance -114 -129 -143 -221 -339 -118 Official capital, net 99 133 17 -29 53 82 Private capital, net 38 61 269 239 325 87 Financial account balance 137 194 286 210 378 168 Capital account balance 0 I 0 1 0 -1 Statistical discrepancy -24 -65 -143 10 -39 -49 MEMO Current account as percentage of GDP -1.5 -1.7 -1.7 -2.5 -3.7 NOTE. In this and the tables that follow, components may not sum to totals SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. because of rounding. international transactions accounts. . . . Not applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

302 Federal Reserve Bulletin • May 2000 the recovery of foreign economic activity after the currency, the real, and abandoned its currency peg in crises of 1997 and 1998, a rebound in the prices of January. Once allowed to float, the real soon fell primary commodities, the continued strong perfor- nearly 50 percent against the dollar, generating fears mance of the U.S. economy, and the lingering effects of a depreciation-inflation spiral that could return of a strong dollar on the price competitiveness of U.S. Brazil to its high-inflation past and renewing finangoods. cial strains in other Latin American economies. By spring, the Brazilian central bank's commitment to fighting inflation led to sharply higher interest rates Foreign Economic Activity and buoyed investor confidence. In time, financial After a year and a half of financial crises and markets stabilized in the region, but the combination depressed growth, foreign economies rebounded of high interest rates and diminished access to interremarkably quickly in 1999. Foreign economic national capital markets tended to damp economic growth, at a robust 4.3 percent on average for the activity in much of Latin America. An exception was year, showed a sharp improvement over the 0.8 per- Mexico, where economic activity, raised by strong cent growth in 1998 (table 2). In 1999, the pace of growth of exports to the United States and rising oil activity increased in developing countries, with Asian prices, increased more than 5 percent for the year. emerging-market economies in particular bouncing The recovery of activity last year was sharper and back strongly from output declines of the previous more widespread in Asian developing countries than year. Activity also recovered in Latin America, with in Latin America, just as the downturn had been especially strong growth in Mexico but a more the previous year. A combination of accommodative mixed performance in other countries. Real growth monetary policies, a shift toward fiscal stimulus, and improved in all of the major industrial countries as an ongoing boost to net exports provided by previous well. Growth in Canada was particularly strong. sharp currency depreciations and the boom in the Economic activity in Japan remained weak but was global electronics market spurred economic growth. stronger than in 1998. Korea's recovery was the most robust, with growth The year started with concerns that the financial of 14 percent in 1999 after a decline of 6 percent crises of 1997 and 1998 would continue to spread. the previous year. However, significant weaknesses With the effects of the August 1998 collapse of the remained in Asia, as evidenced by the recent near ruble and the default on Russian government debt collapse of Daewoo, Korea's second largest conglomstill reverberating, Brazil experienced pressure on its erate, and by continuing problems in financial sectors. 2. Change in real GDP in the United States and abroad, 1996-99 Percentage change, annual rate Half years CCoouunnttrryy 11999966 11999977 11999988 11999999 1997:H2 1998:H1 1998:H2 1999:H1 1999:H2 United States 4.1 4.1 4.7 4.6 3.4 4.5 4.9 2.8 6.5 Total foreign' 4.3 4.1 .8 4.3 3.6 .4 1.2 4.5 4.2 Asian emerging markets2 .. 7.0 4.7 -1.9 8.2 2.3 -6.1 2.4 9.2 7.3 Thailand 3.8 -5.1 -7.2 6.8 -10.4 -16.2 2.9 3.2 10.6 Korea 6.8 3.7 -5.5 14.0 .7 -15.8 6.1 15.2 12.8 Malaysia 9.6 5.7 -10.3 10.6 3.2 -12.8 -7.7 17.5 4.1 Indonesia 10.2 1.1 -17.7 6.0 3.2 -29.3 -4.2 11.5 .8 Hong Kong 5.5 2.2 -5.8 8.6 -2.4 -8.1 -3.4 5.7 11.7 China 9.2 8.2 9.5 6.2 6.9 6.7 12.4 1.7 11.0 Latin America 3 6.3 6.1 1.0 3.7 6.2 3.3 -1.3 2.8 4.6 Mexico 7.1 6.7 2.6 5.2 6.8 4.0 1.3 5.0 5.5 Brazil 5.5 2.2 -1.6 3.2 1.9 2.4 -5.4 3.6 2.9 Argentina 9.3 7.8 -.6 .1 8.0 5.4 -6.3 -3.5 3.8 Venezuela .6 6.7 -5.0 -4.6 2.8 .6 -10.2 -7.7 -1.3 Japan 5.2 -.5 -3.1 .0 .6 -2.7 -3.4 5.1 -4.7 Canada 2.4 4.4 2.8 4.7 4.5 1.9 3.7 4.3 5.0 Western Europe 2.2 3.6 1.7 3.2 3.5 2.4 1.1 2.8 3.5 NOTE. Aggregate measures are weighted by moving bilateral shares in U.S. 2. Weighted average of China, Hong Kong, Indonesia, Korea, Malaysia, exports of nonagricultural merchandise. Annual data are four-quarter changes. Philippines, Singapore, Taiwan, and Thailand. Half-yearly data are calculated as Q4/Q2 or Q2/Q4 changes at an annual rate. 3. Weighted average of Mexico, Argentina, Brazil, Chile, Colombia, and 1. Selected regions and countries are shown below. Venezuela. SOURCE. Various national sources. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1999 303 Economic activity accelerated in nearly all of the Perhaps more surprising was the 2 percent decline major industrial countries. In Europe, the process was in world oil production, attributable primarily to the aided by decreases in official interest rates early in reduction in supply from the Organization of Petrothe year and by the global recovery, which stimulated leum Exporting Countries (OPEC) and other key external demand. In Canada, real growth rose sharply, producers. In March 1999, OPEC agreed to reduce as strong external demand from the United States and crude oil production; non-OPEC Mexico, Russia, a recovery in commodity prices contributed to large Oman, and Norway also pledged reductions. The income and employment gains. After two consecu- consistently high level of compliance with the March tive years of decline, Japanese real GDP was flat; accord stands in contrast to the widespread noncomfiscal stimulus in the first half of the year supported pliance that characterized earlier agreements. A new, growth, but private consumption remained weak. pro-OPEC political administration in Venezuela and increased cooperation between Iran and Saudi Arabia helped maintain the agreement. Prices of Primary Commodities After falling sharply in 1997 and 1998, prices of Prices of Non-Oil Primary Commodities primary commodities firmed in 1999 in response to stronger demand and reduced supply. Primary com- After falling about 20 percent over the previous two modity prices, which helped mute consumer price years, prices of world primary commodities other inflation in the United States while they fell in 1997 than oil appeared to bottom out in 1999 (chart 2). and 1998, began to put upward pressure on U.S. From the end of 1997 through 1998, weak global prices in 1999. demand, combined with a large increase in supply in response to the high prices of the mid-1990s (especially for agricultural commodities such as grains, Oil Prices oilseeds, and coffee), put severe pressure on commodity prices. Prices fell 5 percent more in the first The precipitous decline in the price of oil in 1997 and half of 1999, but reduced supplies and the recovery in 1998—caused by weak global economic activity and global economic activity reversed this decline in the a strong increase in oil production—was more than second half of the year, and prices ended the year fully reversed in 1999. The average spot price for about where they began. West Texas intermediate, the U.S. benchmark crude, rose steadily to reach $25 per barrel by the end of the year (chart 1). Strengthened world demand and con- U.S. Economic Activity strained world supply drove the rebound in oil prices. Not surprisingly, the strong U.S. economy, combined U.S. economic performance remained extraordinary with a recovery of economic activity abroad, led to in 1999, as the rise in real GDP exceeded 4 percent an increase of 1 percent in world oil consumption. 2. Prices of world non-oil primary commodities, 1985-99 1. Oil prices, 1985-99 1990 - 100 Dollars per barrel West Texas intermediate — — - 120 — i — 110 — / \ — 100 — 1 V 90 — 80 U.S. import 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1985 1990 1995 1985 1990 1995 NOTE. The data are monthly. NOTE. The data are quarterly. SOURCE. Wall Street Journal and the U.S. Department of Commerce. Bureau SOURCE. International Monetary Fund, International Financial Statistics. of Economic Analysis. index of non-oil commodity prices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

304 Federal Reserve Bulletin • May 2000 for the fourth year in a row (table 2). Growth in In the mid-1980s, the strong increase in foreign savhousehold expenditures, which was exceptionally ings cushioned U.S. investment from the full impact rapid for the second straight year, was bolstered by of a sharp fall in national savings. In the late 1980s, further substantial gains in real income, favorable foreign savings dropped as investment fell more borrowing conditions, and a rising stock market. quickly than national savings. In the early part of the Seeking to maintain their competitiveness and profit- current expansion, national savings increased, as the ability, businesses continued to invest heavily in high- swing from the large budgetary deficits of the early tech equipment. The annual increase in government 1990s to the budget surpluses of recent years enabled spending, on both investment and consumption, was the increase in government savings to outpace the fall the largest of the current expansion. In all, domestic in private savings. However, in the past two years, demand continued to surge ahead faster than domes- national savings have leveled off: Private savings tic production, even as the latter was being boosted have continued to fall, and an increase in government by strong gains in productivity; the result was a large spending has slowed the increase in government savtrade deficit. The gains in productivity, along with ings. As in the mid-1980s, this leveling-off has not considerable though shrinking slack in economies dragged down investment because the decline in abroad, helped contain inflation despite strong national savings has been offset by an increase in domestic demand and tight labor markets. foreign savings—that is, U.S. investment prospects A key element in the vigorous expansion has been have attracted huge capital inflows. the boom in capital investment by the private sector. Looking at the sources of financing for this investment offers one perspective on the U.S. trade and Exchange Value of the Dollar current account deficits. As an accounting identity, investment must be financed out of a combination of The dollar's exchange value, measured on a tradenational savings and savings from abroad. National weighted basis against a broad range of trading partsavings consist of private savings and government ners, rose about 6 percent in the first half of the year savings. Government savings are the opposite of and then fell a like amount to end the year about the fiscal deficit, whereas private savings consist of unchanged (chart 4). On the heels of its sharp appreboth household savings (that part of after-tax income ciation over the previous few years, which reflected not spent on consumption) and corporate savings the financial crises that afflicted many developing (broadly, retained earnings). Savings from abroad are countries, the dollar remains at a high level. net foreign investment in the United States, which Though over the year the dollar's aggregate value corresponds to the current account deficit less net was little changed, its movements against two major exports of gold and certain other transactions. currencies diverged. For the second straight year, the Chart 3 shows the role that foreign savings has dollar depreciated 10 percent against the Japanese played in financing investment in the United States. yen. The yen's appreciation in 1999 coincided with a hint of economic recovery in Japan and reports 3. U.S. investment, savings, and current account balance of large inflows of foreign capital into the Japaas a percentage of GDP, 1980-99 nese stock market, and it prompted official foreign exchange intervention from the Japanese authorities. Against the euro, which came into operation at the start of the year, the dollar appreciated sharply, 16 percent on balance.2 Early in the year, the euro's depreciation against the dollar was attributed to slow economic growth in the euro area. Its further depreciation later in the year, when growth picked up, was attributed in part to concerns about the prospective relative returns on euro-area investment, given the Current account balance disappointing pace of market-oriented structural _" reforms in the area, as well as surprisingly strong growth in the United States. 1 II i I M I M M II I I I I I I ri 1 1980 1985 1990 1995 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, 2. For more information about the euro, see Carol C. Bertaut and national income and product accounts, and U.S. international transaction Murat F. Iyigun, "The Launch of the Euro," Federal Reserve Bulletin, accounts. vol. 85 (October 1999), pp. 655-66. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1999 305 4. Foreign exchange value of the U.S. dollar, 1996-99 sharp depreciation of the Brazilian real in early 1999. The dollar's value against currencies of Asian January 1996= 100 emerging-market economies was on average steady, but it remains at a high level after the jump that coincided with the large depreciations of those currencies in 1997. DEVELOPMENTS IN U.S. TRADE IN GOODS AND SERVICES The overall U.S. trade deficit was substantially larger in 1999 than in 1998 (table 3). The nominal trade deficit for goods and services increased $103 billion, to $268 billion, in 1999, as exports expanded less 1996 1997 1998 1999 rapidly than imports. Although strong GDP growth NOTE. The broad index included thirty-five currencies until the beginning inkey foreign markets boosted the demand for U.S. of stage three of European Economic and Monetary Union on January 1, 1999, when the euro replaced the ten euro-area currencies; the broad index now has goods, the decline in price competitiveness of U.S. twenty-six currencies. Currencies of all foreign countries or regions that had a goods in 1997 and 1998 continued to damp the share of U.S. non-oil imports or nonagricultural exports of at least Vi percent in 1997 are included in the broad index. The data for the euro use the restated growth of exports. The strong growth of imports in German mark before January 1999. The data are monthly. 1999 reflected the strength of U.S. economic activity and the past real appreciation of the dollar, which The dollar fell slightly against the Mexican peso made imports inexpensive relative to domestic goods. and the Canadian dollar, the currencies of two impor- Relatively inexpensive imports, coupled with the tant U.S. trading partners, and rose markedly against growing trade deficit, led to worsening trade tensions South American currencies, mainly because of the but to no substantial shift in U.S. trade policy. 3. U.S. international trade in goods and services, 1996-99 Billions of dollars except as noted Dollar Percentage Item 1996 1997 1998 1999 change, change, 1998 to 1999 1998 to 1999 Balance on goods and services -104 -105 -164 -268 -103 Exports of goods and services 850 939 934 960 26 2.8 Services 238 259 264 277 13 5.1 Goods 612 680 670 683 13 1.9 Agricultural products 61 58 53 49 -4 -6.9 Nonagricultural goods 551 621 617 634 16 2.7 Capital goods 253 296 300 311 10 3.5 Aircraft and parts 31 41 54 53 -1 -1.1 Computers, peripherals, and parts .. 44 49 45 47 1 2.9 Semiconductors 36 39 38 47 9 24.5 Other machinery and equipment ... 143 166 164 164 0 .3 Industrial supplies 138 148 138 139 1 .5 Automotive products 65 74 73 75 2 2.1 Consumer goods 70 77 79 81 1 1.7 Other nonagricultural exports 25 27 26 29 3 11.5 Imports of goods and services 954 1,043 1,098 1,228 130 11.8 Services 151 167 181 197 16 9.1 Goods 803 876 917 1,030 113 12.3 Oil 73 72 51 68 17 33.1 Non-oil goods 731 805 866 962 96 11.1 Capital goods 228 253 270 297 27 10.1 Aircraft and parts 13 17 22 23 2 7.1 Computers, peripherals, and parts .. 62 70 72 81 9 12.4 Semiconductors 37 37 33 38 4 12.6 Other machinery and equipment ... 117 130 142 154 13 8.9 Industrial supplies 137 146 152 157 4 2.9 Automotive products 129 140 149 180 30 20.4 Consumer goods 172 194 217 240 23 10.7 Food and other goods 65 72 79 90 11 13.8 . . . Not applicable. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

306 Federal Reserve Bulletin • May 2000 Proximate Determinants of Trade in Goods in the late 1980s, when foreign economic activity and Services was particularly robust—slowed considerably along with world economic growth in the early 1990s The savings-investment balance, discussed earlier, (chart 5, middle panel). Export growth rebounded in provides useful insights for understanding current the mid-1990s before succumbing to the global ecoaccount imbalances. However, as an accounting iden- nomic slowdown of 1997 and 1998. In 1999, U.S. tity, it does not explain the forces that are driving the export growth increased, but by less than might have current account deficit. It is useful, therefore, to look been expected if one looked only at the strong recovat the proximate determinants of trade flows: U.S. ery in foreign economic activity. GDP growth, foreign GDP growth, and the price The price competitiveness of U.S. goods helps competitiveness of U.S. goods (see box). explain why U.S. export growth staged only a weak There are close historical associations between U.S. recovery in 1999. When prices of U.S. goods increase real imports and U.S. real GDP and between US. real relative to the U.S. dollar price of foreign goods, the exports and foreign real GDP, as well as between the trade deficit tends to increase, albeit with a lag, price competitiveness of U.S. goods and the overall because U.S. residents tend to increase their purtrade deficit (chart 5).3 As growth in U.S. real GDP chases of the relatively less expensive foreign goods slowed late in the previous expansion, so did growth while foreigners cut back their purchases of the relain U.S. imports (chart 5, top panel). In the current tively expensive U.S. goods. The large trade deficits expansion, growth of U.S. imports has picked up. of the mid-1980s came on the heels of a sharp Similarly, U.S. export growth has broadly mirrored increase in the relative price of US. goods, just as the foreign real GDP growth. U.S. export growth—strong marked improvement in the trade balance in the late 1980s coincided with a sharp decrease in relative prices (chart 5, bottom panel). Over 1997 and 1998, 3. In each panel of chart 5, the variable represented by the black the real exchange value of the dollar appreciated line is a key proximate determinant of the variable represented by the 15 percent, and the trade deficit increased sharply red line. Measuring the Proximate Determinants of Trade Flows Demand for any product is determined by, among other competitiveness of U.S. goods into one measure. The things, income and relative prices. In international compari- weighting scheme is an average of bilateral import shares sons, GDP is often considered a suitable proxy for income, and an export weight that depends on the amount of direct and the real exchange rate is used as a measure of relative exports from the United States as well as the extent to prices. These comparisons entail a great number of coun- which a foreign country's exports go to third-country tries. To summarize this information, indexes are created. markets.1 Because an index is one number, the weighting or aggrega- For exports (middle panel of chart 5), foreign activity is tion scheme is particularly important. measured by aggregate foreign GDP, for which the weights For the trade balance (the bottom panel of chart 5), are each country's share in U.S. exports. Alternatively, the relative prices are measured by a real exchange rate index weighting scheme could be based on the share of each that combines a relative export price index with a relative country's GDP in world GDP. However, given that the goal import price index. In a U.S. export price index—an index is to explain U.S. exports, a weighting scheme based on that captures the price competitiveness of U.S. goods in bilateral export shares is appropriate: This export-shareforeign markets—the weight of a country's exchange-rate- weighted measure of foreign GDP weights Mexico's GDP adjusted prices takes into account the degree to which its more heavily than its share in world GDP. goods compete with U.S. goods directly in its market and For imports (top panel of chart 5), U.S. GDP has proven indirectly in other foreign markets. For example, Germany's to be a suitable proxy for U.S. demand, but its use is not weight consists of the share of U.S. exports to Germany and clear-cut. Conceptually, different types of imports depend the shares of German exports to other U.S. export markets on different measures of activity. Imports that are used as (weighted by U.S. export shares to those markets). The intermediate inputs in the production process are deterweighting scheme for a U.S. import price index—an index mined by production, or GDP; but imports that are final that captures the price competitiveness of U.S. goods in the consumer goods are determined by domestic demand. U.S. market—is more straightforward: It consists only of bilateral import shares. The broad real exchange rate, which 1. For a complete description of the broad real index of the dollar's consists of real (CPI-adjusted) exchange rates of thirty-five foreign exchange value, see Michael P. Leahy, "New Summary Measures of the Foreign Exchange Value of the Dollar," Federal Reserve Bulletin, vol. 84 major U.S. trading partners, combines import and export (October 1998), pp. 811-18. 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U.S. International Transactions in 1999 307 5. Economic growth, real exchange rate, and trade balance, increase in goods exports. After large increases in 1975-99 each of the previous three years, exports of aircraft and parts decreased slightly in 1999. The value of Percent, Q4/Q4 Percent, Q4/Q4 agricultural exports fell for the third straight year, as A. Change in U.S. imports and U.S. GDP prices dropped 5 percent largely because of robust U.S. real GDP world supplies, particularly in world grain and oilseed markets. In services, the increase was due mainly to enlarged receipts in three categories: "other private services," a catchall category that includes mostly business, professional, technical, and financial ser- Percent, Q4/Q4 Percent, Q4/Q4 vices; foreign travel to the United States; and freight B. Change in U.S. exports and foreign GDP and port expenditures by foreigners. Foreign real GDP Exports of goods to Asian emerging markets increased $7 billion, or about 7 percent, in 1999, after declining in 1998 (table 4). Within that total, exports to Korea in particular rose strongly. However, exports to the region remain below the levels of 1997, partly because Asian currencies are still relatively weak. Percent 1996 = 100 Reflecting the strength in economic activity in C. U.S. trade deficit as a percentage of GDP North America, US. exports to Canada and Mexico and the broad real exchange rate continued to advance rapidly throughout 1999. U.S. exports to Mexico expanded $8 billion, with increases spread over all major trade categories, and over the past four years have almost doubled. The growth in exports to Canada was also strong, increasing $10 billion, or about 6 percent; exports of auto- 1975 1980 1985 1990 1995 motive products accounted for almost half the SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, increase, as cross-border shipments of automotive various national sources, and the Federal Reserve Board. parts were boosted by strong vehicle sales in the United States. relative to the size of the U.S. economy. Recently, In contrast to the strength of exports to Mexico, relative prices have had a more muted effect on the Canada, and emerging-market countries in Asia, a trade deficit, as the strong growth of the U.S. econ- more mixed picture emerged for exports of goods to omy has dominated all other factors. However, even the rest of the world. Exports to Europe increased though U.S. price competitiveness did not deteriorate further in 1999, the lagged effects of the deterioration 4. U.S. exports of goods to its major trading partners, of the past few years—reflecting the sharp nominal 1996-99 appreciation of the dollar (chart 4)—continued to Billions of dollars hold down the expansion of exports and support the expansion of imports during the year. Importing region 1996 1997 1998 1999 Change, 1998 to 1999 Total goods exports .. 612 680 670 683 13 Exports Asia 176 183 154 161 7 Japan 66 65 57 56 0 Other Asia1 110 118 97 104 7 The value of U.S. exports of goods and services rose Latin America 109 135 142 141 0 $26 billion in 1999, to a level of $960 billion, after a Mexico 57 71 78 87 8 Other countries 52 63 63 55 -8 $5 billion decrease in 1998 (table 3). Receipts for Brazil 12 16 15 13 -2 services rose 5 percent, after a 2 percent increase in Canada 135 152 157 166 10 1998. The value of goods exports rose 2 percent, Western Europe 138 153 159 162 3 All other2 54 57 59 52 -6 following a decline of about the same magnitude in 1. Includes China, Hong Kong, Korea, Singapore, Taiwan, Indonesia, Philip- 1998. pines, Malaysia, and Thailand. The value of exports of semiconductors increased 2. Includes Australia, New Zealand, Middle East, Eastern Europe, and Africa. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. 25 percent in 1999 to account for most of the overall international transactions accounts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

308 Federal Reserve Bulletin • May 2000 only slightly even though economic growth had 6. Change in prices of U.S. imports and exports of goods and picked up in the area. Exports to Japan showed little services, 1996-99 change after falling sharply in 1998; this apparent Percent, fourth quarter to fourth quarter bottoming out may be attributable to a strong yen and Item 1996 1997 1998 1999 a steadier Japanese economy. Exports of goods to Latin America (excluding Mexico) fell sharply, and Total exports of goods and services -2.1 -.8 -2.6 1.0 the weakness was widespread. Services 2.5 .8 -.4 2.7 Goods 4.0 -1.5 -3.5 .3 The quantity of exports rose almost 5 percent in Agricultural products -2.9 -3.2 -10.1 -5.0 Nonagricultural goods -4.1 -1.3 -3.0 .7 1999, more than twice as fast as in 1998 (table 5). Computers, peripherals, Increases were spread across major trade categories, and parts -18.2 -11.0 -12.7 -6.8 Semiconductors -33.1 -13.3 -5.6 -3.1 particularly computers, other machinery, industrial Other goods -.1 .6 -1.9 1.7 MEMO supplies, and consumer goods. In terms of composi- Industrial supplies -2.8 -.5 -7.4 4.1 tion, about 45 percent of U.S. goods exports were Total imports of goods and services ... -1.8 -4.2 -5.0 3.3 capital equipment, 20 percent were industrial sup- Services 1.8 -2.1 -.3 2.7 plies, and roughly 10 percent each were agricultural, Goods -2.5 -4.6 -5.9 3.4 Oil 38.8 -20.2 -35.7 93.2 automotive, and consumer goods. Non-oil -5.7 -2.8 -3.5 -.9 Prices of U.S. exported goods rose lA percent in Computers, peripherals, and parts -15.1 -14.8 -16.5 -11.3 1999, exhibiting the first increase in four years, not- Semiconductors -53.2 -14.9 -8.2 -3.6 Other goods -.7 -.8 -1.9 .2 withstanding the 5 percent drop in agricultural export MEMO Industrial supplies -2.7 -.1 -6.8 4.3 prices (table 6). The turnaround in overall export prices was due largely to a 0.7 percent increase in SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, national income and product accounts; chain-weighted indexes; and the Federal the export prices of nonagricultural goods; a large Reserve Board. increase in prices of exported industrial supplies more than offset continued decreases in hedonic price indexes (which are adjusted for technological change was fueled by the sharp growth of U.S. domestic and quality improvements) for computers and semi- expenditures. Declines in non-oil import prices conductors. Prices of exported services rose 2.7 per- through most of the year contributed as well. cent in 1999, following a small decrease in 1998. In each of the previous three years, prices of imported goods and services had fallen and thereby helped to mute inflation in the United States. In Imports contrast, such prices, sparked by a sharp rise in the price of oil, rose 3 percent in 1999 (table 6). Non-oil In 1999, the value of U.S. imports of goods and import prices declined almost 1 percent over the services grew $130 billion, or 12 percent, about twice course of the year, but there was a notable break in as fast as the rate in 1998 (table 3). The expansion trend in the second half of the year; after three years of much larger price declines, a slight real depreciation of the dollar along with the turnup in primary commodity prices combined to increase non-oil 5. Change in the quantity of U.S. exports, 1996-99 import prices. The biggest shift was in imported Percent, fourth quarter to fourth quarter industrial supplies, the price of which increased more Item 1996 1997 1998 1999 than 4 percent after three years of decline. Exports of goods and services 9.8 9.2 2.0 4.8 Services 8.9 2.3 2.6 3.7 Goods1 10.1 12.2 1.8 5.3 Oil Imports Agricultural products 3.7 3.3 .3 -1.7 Industrial supplies 6.0 6.3 -2.6 6.4 The value of U.S. oil imports increased 33 percent Capital equipment 15.5 18.2 4.5 5.8 in 1999 (table 3)—even though the volume of oil Aircraft and parts 39.9 10.3 48.8 -16.6 Computers, peripherals, and parts .. 21.6 26.1 7.1 12.0 imports changed little—because of the dramatic Semiconductors 44.6 21.0 9.3 33.4 increase in the average price of imported oil (chart 1). Other machinery and equipment ... 3.4 17.1 -7.9 6.3 The quantity of U.S. oil imports remained steady at Automotive vehicles and parts 5.9 14.4 -2.0 1.9 Consumer goods 9.8 7.2 1.2 5.6 11.3 million barrels per day. U.S. oil consumption increased (in line with economic activity), whereas NOTE. Quantities are measured in chained (1996) dollars. 1. Selected categories are shown below. U.S. oil production decreased as a result of both SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, increasing field maturity and depressed exploration national income and product accounts; and the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1999 309 and development activity following the low oil prices meant that growing imports were less of a threat and of 1998 and early 1999. With flat oil imports, U.S. oil did not provoke calls for restrictions in most other inventories, which had been large at the end of 1998, industries. As a result, there was no fundamental shift were drawn down to accommodate the widened gap in U.S. trade policy, and strong imports have not, for between domestic consumption and production. the most part, been interpreted as damaging. Rather, they have been correctly attributed to the relative strength of the U.S. economy and credited with help- Non-Oil Imports ing to mute inflation. The quantity of non-oil imports grew 15 percent in 1999 (table 7). An expansion in a broad range of DEVELOPMENTS IN THE NONTRADE CURRENT goods was fueled by robust growth of U.S. domestic ACCOUNT demand and was supported by declines in non-oil import prices. Reflecting the strength of spending by The two major components of the current account, households and businesses in the United States, real other than trade in goods and services, are net unilatimports of consumer goods, automotive products, eral current transfers and net investment income. computers, semiconductors, machinery, and industrial supplies advanced strongly throughout the year. The size of the increase in automotive imports in Unilateral Current Transfers 1999 reflected buoyant automotive sales in the United States. Net unilateral current transfers include government Payments to foreigners for services rose strongly grant and pension payments as well as net private in 1999, with increases in all service categories but transfers to foreigners. In 1999, the deficit on uniespecially in travel (U.S. residents traveling abroad), lateral transfers increased $3 billion, to $47 billion transportation, and other private services. (table 1). Most of the increase was in private remittances, mainly from large nonprofit institutions. Trade Policy Investment Income Trade tensions worsened over the past two years as the strong dollar made imports relatively inexpen- Net investment income is the difference between sive, fueling competition in many industries. The the amount that U.S. residents earn on their direct steel industry was successful in gaining import pro- and portfolio investments abroad (receipts) and the tection, resulting in a reduction of steel imports by amount that foreigners earn on their direct and portweight of 14 percent in 1999. In contrast, the robust folio investments in the United States (payments).4 U.S. economy, coupled with low unemployment, Data revised in light of the results of the Benchmark Survey of U.S. Ownership of Foreign Long-Term Securities indicate that net investment income turned 7. Change in the quantity of imports, 1996-99 negative in 1998 for the first time since 1914 Percent, fourth quarter to fourth quarter (table 8). Reflecting the large and persistent current account deficits over the past two decades, foreign Item 1996 1997 1998 1999 assets in the United States have grown more rapidly Imports of goods and services 11.2 14.2 10.8 12.6 than U.S. assets abroad. However, net investment Services 5.3 13.6 8.4 6.9 income remained positive long after the net invest- Goods 12.3 14.3 11.3 13.8 Oil 7.8 4.0 4.1 -3.3 ment position became negative because foreign direct Non-oil1 12.8 15.2 11.7 15.2 investment in the United States has earned a far Capital goods1 16.7 24.4 11.2 19.8 Aircraft and parts 25.5 26.1 31.0 -3.5 lower rate of return than U.S. direct investment Computers, peripherals, abroad (chart 6). and parts 17.7 32.4 26.9 26.1 Semiconductors 56.7 32.8 -7.4 35.4 Industrial supplies 11.9 7.3 8.4 9.0 Automotive products 8.0 8.0 15.9 15.2 Consumer goods 15.1 14.5 9.4 15.8 Foods 13.5 9.7 5.4 11.2 4. An investment is considered direct if a single owner or affiliated NOTE. Quantities are measured in chained (1996) dollars. 1. Selected categories are shown below. group acquires 10 percent or more of the voting equity in a company. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, All other U.S. claims on foreigners or foreign claims on the United national income and product accounts; and the Federal Reserve Board. States are included in the portfolio investment category. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

310 Federal Reserve Bulletin • May 2000 8. U.S. net investment income, 1995-99 Billions of dollars Change, Item 1995 1996 1997 1998 1999 1998 to 1999 Investment income, net 24 22 8 -7 -19 -12 Direct investment income, net 64 68 69 59 58 -1 Receipts 96 103 116 103 117 14 Payments 32 36 47 43 58 15 Portfolio investment income, net -40 -46 -61 -66 -78 -11 Receipts 114 120 141 154 155 2 Payments 154 166 202 220 233 13 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. In 1998, the net investment income balance and 1998, in particular, were attributable to weak became negative because receipts from U.S. direct economic conditions in key countries for U.S. investinvestment abroad declined and the negative balance ment (chart 7). In 1999, direct investment receipts on portfolio investment increased. In 1999, a large rose sharply, to $117 billion, because of the recovery decline in the balance on portfolio investment, of foreign economic growth, continued large addicoupled with a modest decrease in net direct invest- tions to holdings by U.S. investors, and the surge in ment income, resulted in a significant widening of the oil prices (about 10 percent of U.S. direct investment negative investment income balance. abroad is in petroleum operations). Strong economic growth in Mexico, Canada, and Western Europe (areas that account for almost two- Direct Investment Income thirds of U.S. direct investment abroad) contributed Net direct investment income—the difference to the robust increase in receipts in 1999. The ecobetween direct investment receipts from U.S. direct nomic recovery in Asia (which accounts for slightly investment abroad and U.S. payments on foreign more than 10 percent of U.S. direct investment direct investment in the United States—decreased abroad) coincided with a strong rebound in direct slightly in 1999, as the dollar increase in payments investment receipts, especially from Japan, Hong exceeded the increase in receipts (table 8). Kong, and Malaysia. Receipts from Latin America, Income on U.S. direct investment abroad has excluding Mexico, were flat; a significant downturn tended to increase with the growth of U.S. invest- in profits from Brazil was offset by increases elsements although it has also varied with economic where, most notably Panama and Chile. Given the conditions abroad; the decreases in receipts in 1991 recovery of economic growth and the surge in oil 6. U.S. net international investment: Position and receipts, 1980-99 7• u s- direct investment abroad: Position and receipts, 1980-99 Billions of dollars Billions of dollars Billions of dollars Billions of dollars Net income Receipts from U.S. investments abroad 40 + 1,200 1,000 0 800 40 600 Position 80 400 I Mill 200 120 + 0 1 M I 1! I I 1 I I II I 1 i I I I I M M I I I I I I I I I I I I I- I 1 1980 1985 1990 1995 1980 1985 1990 1995 NOTE. The net position data are averages of the end-of-year positions for the current and previous years. The year-end position for 1999 was constructed by NOTE. The position data are averages using the current-cost measures as of adding the recorded portfolio investment flows during 1999 to the recorded year-end for the current and previous years. The year-end data for 1999 were year-end position for 1998. The net position excludes U.S. gold holding and constructed by adding the recorded direct investment capital flows and current foreign holdings of U.S. currency. cost adjustment during 1999 to the recorded year-end position for 1998. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and the Federal Reserve Board. the Federal Reserve Board. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1999 311 prices, it is surprising that the overall rate of return on 9. Net portfolio investment: Position and income, 1980-99 U.S. direct investment abroad increased only slightly Bitlions of dollars Billions of dollars in 1999—to 9.7 percent (calculated using the receipts and position data that appear in chart 7); this figure is 200 considerably below the 11.9 percent earned in 1997. Income payments on foreign direct investment in the United States, after falling in 1998, increased 20 more than 30 percent in 1999 (table 8). Direct investment payments have not always kept pace with the 40 growth of foreign direct investment in the United States; in the 1980s the direct investment position increased substantially, but payments showed no upward trend (chart 8). Since the early 1990s, 1980 1985 1990 1995 payments have increased smartly, in line with NOTE. The net position data are averages of the end-of-year net positions for the increased profitability of U.S. corporations. The the current and previous years. The year-end position for 1999 was constructed by adding the recorded portfolio investment flows during 1999 to the recorded robust increase in 1999 resulted from both the bright year-end position for 1998. profits picture for the U.S. economy and the massive SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and the Federal Reserve Board. acquisitions undertaken by foreign direct investors in 1998 and again in 1999. The overall rate of return on a current cost basis rose significantly, from 5.3 per- reaped the benefits of experience. However, last year, cent to 5.7 percent, but is still well below both the as in 1998, the positive balance on net direct invest- 1997 return of almost 6.5 percent and the current ment income did not offset the negative balance on return on U.S. direct investment abroad. net portfolio investment income. The balance on direct investment income remains positive because of the positive net direct investment Portfolio Investment Income position and the large differential in the rates of return on U.S. direct investment abroad and foreign Portfolio investment income consists of dividends direct investment in the United States. While the and interest paid on a wide range of claims and reasons for the differential in the rates of return are liabilities. Receipts and payments are estimated not well understood, age-related factors appear to be by the Bureau of Economic Analysis (BEA) of the important: Foreign direct investment in the United Department of Commerce based on estimates of hold- States is typically newer than US. direct investment ings, dividend-payout ratios, and interest rates. abroad and is hence more likely to be incurring Investment income does not include capital gains startup and restructuring costs and less likely to have associated with changes in securities prices. The balance on portfolio income has been in deficit since 1985, and its size has broadly mirrored the net port- Foreign direct investment in the United States: folio investment position (chart 9). Position and payments, 1980-99 In 1998, net payments did not grow nearly so fast Billions of dollars Billions of dollars as the net liability position because interest rates fell and rapidly rising equity prices in the United States 1,000 100 increased the value of foreign holdings of U.S. equities without a commensurate increase in dividend 800 80 payments. This can be seen by the narrowing gap 600 60 between the bars (the position) and the line (net 400 40 income) in chart 9. In 1999, a further decline in Position interest rates and an increase in equity prices again 200 20 + + damped the increase in net payments relative to the deterioration of the net position. Payments to foreign investors in the United States I I 1 I I I I I I 1 I I II II 1 I I 1980 1985 1990 1995 The 1997 Benchmark Survey of U.S. Ownership NOTE. The position data are averages using the current-cost measures as of of Foreign Long-Term Securities year-end for the current and previous years. The year-end data for 1999 were constructed by adding the recorded direct investment capital flows and currentcost adjustment during 1999 to the recorded year-end position for 1998. The data on net portfolio investment income were SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis; and the Federal Reserve Board. recently revised to take into account the newly avail- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

312 Federal Reserve Bulletin • May 2000 9. U.S. holdings of foreign long-term securities, by country of issuer, December 31, 1997 Billions of U.S. dollars except as noted Bonds Equities All securities CCoouunnttrryy oorr aarreeaa Amount Percent Amount Percent Amount Percent Total1 547 100 1,208 100 1,755 100 Canada 107 20 71 6 177 10 Europe 209 38 736 61 945 54 United Kingdom 54 10 218 18 272 15 Netherlands 13 2 107 9 120 7 Latin America 93 17 95 8 188 11 Mexico 29 5 35 3 64 4 Caribbean financial centers 2 22 4 51 4 72 4 Asia 73 13 213 18 286 16 Japan 30 5 136 11 166 9 1. Selected regions and countries are shown below. SOURCE. U.S. Department of the Treasury. 2. Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Netherlands Antilles, and Panama. able results of the Treasury Department's Benchmark country of choice for U.S. investors, followed by Survey of U.S. Ownership of Foreign Long-Term Canada, Japan, the Netherlands, and Germany. U.S. Securities, conducted as of year-end 1997. The pre- investors held considerably more foreign equities vious benchmark survey had been conducted as of than foreign debt securities, with $1,208 billion March 1994. invested in equities and $547 billion in debt. The A comparison of the two benchmark surveys indi- Treasury Department estimates that, until 1987, U.S. cates that, between surveys, official statistics signifi- investors held more foreign debt securities than forcantly underestimated U.S. portfolio holdings of for- eign equities. eign equities and long-term debt instruments (those The survey showed that U.S. holdings of foreign with original maturities greater than one year). The securities doubled between March 1994 and Decem- 1997 survey measured U.S. holdings of foreign secu- ber 1997. Many studies find that net purchases of rities 21 percent higher than predicted by the 1994 foreign equity in a particular market are positively survey and subsequent transactions data adjusted for related to the expected equity returns in that market— prices and exchange rates.5 Based on preliminary that is, local market conditions matter. Information results from the 1997 survey, BEA increased its asymmetries likely also matter, however, as a closer estimate of U.S. holdings of foreign assets, thereby look at the types of foreign equities that U.S. invesincreasing its estimate of U.S. investment income tors are holding reveals. When investing directly in a earned abroad and reducing the estimated deficit in foreign market, U.S. investors must glean information the balance of payments accounts. Further adjust- produced by accounting practices that may differ ments will be made this year with the release of final from general U.S. accounting practices. However, data. foreign stocks that are listed on U.S. exchanges, The benchmark survey offers a snapshot of U.S. either directly or as exchange-traded American holdings of foreign securities at year-end 1997. At Depositary Receipts (ADRs), must conform to genthat time, US. holdings of foreign long-term securi- eral U.S. accounting practices, thereby reducing the ties totaled $1,755 billion (table 9). U.S. holdings information costs to the U.S. investor.6 In fact, U.S. were widespread—fifty-four countries attracted at investors seem to prefer foreign equities that trade least $1 billion in U.S. investment—but relatively on U.S. exchanges: About 30 percent of the forconcentrated, with 67 percent of total investment eign equities held by U.S. investors trade on U.S. occurring in ten countries. The United Kingdom, exchanges. Moreover, the fact that shares of Dutch with some $272 billion in U.S. investment, was the companies make up many of the largest exchangetraded ADR programs helps to explain the apparent 5. The data on U.S. international capital flows are collected regularly by the Treasury International Capital (or TIC) Reporting System; 6. ADRs, specifically marketed to U.S. investors, are receipts for they cover only transactions (that is, purchases and sales of securities), shares of stock in foreign companies that are held in a custodial not holdings. Between benchmark surveys of U.S. holdings of foreign account by or for a U.S. bank. These receipts are then traded on U.S. securities, which have occurred in 1943, 1994, and 1997, BEA uses securities exchanges in U.S. dollars. ADRs entitle the owners to all the TIC transactions data, along with estimates of price and exchange dividends, capital gains or losses, and voting rights just as if they rate changes, to estimate holdings. directly owned the underlying shares. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. International Transactions in 1999 313 10. Composition of U.S. capital flows, 1995-99 Billions of dollars Item 1995 1996 1997 1998 1999 Current account balance -114 -129 -144 -221 -339 Official capital, net 99 133 17 -29 53 Foreign official assets in the United States 110 127 18 -22 45 U.S. official reserve assets -10 7 -1 -7 9 Other U.S. government assets -1 -1 0 0 0 Private capital, net 38 61 269 239 325 Net inflows reported by U.S. banking offices -45 -75 4 16 6 Securities transactions, net 95 169 254 161 206 Private foreign net purchases of U.S. securities 195 285 343 264 304 Treasury securities 100 155 146 46 -22 Corporate and other bonds 82 119 128 171 231 Corporate stocks 14 11 69 48 95 U.S. net purchases of foreign securities -100 -116 -89 -103 -98 Bonds -50 -56 -47 -25 0 Stocks -50 -60 -42 -78 -98 Stock swaps 0 0 0 -86 -114 Direct investment, net -40 -4 -1 61 130 Foreign direct investment in the United States 60 89 109 193 283 U.S. direct investment abroad -100 -93 -110 -133 -152 Foreign holdings of U.S. currency 12 17 25 17 22 Other 14 -41 -13 -16 -40 Statistical discrepancy -24 -66 -143 10 -39 SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, U.S. international transactions accounts. overweighting of Dutch stocks in U.S. portfolios. U.S. capital flows in 1999 reflected the relatively Dutch stocks make up 9 percent of U.S. investors' strong cyclical position of the U.S. economy and the foreign equities portfolios but less than 4 percent of global wave of corporate mergers. Net private capital the market capitalization outside the United States. inflows reached $325 billion in 1999, a sharp accel- In U.S. investors' foreign debt portfolios, 58 per- eration from their robust pace of 1998, to exceed the cent of the foreign debt is dollar-denominated. While record total set in 1997 (table 10). The faster pace U.S. investors seek the higher returns of foreign debt, was due mainly to record capital inflows; capital generally they try to avoid direct currency risk, outflows, both direct and portfolio, remained at their although in doing so they are subject to increased high levels of the past few years. credit risk. Net foreign purchases of U.S. securities were strong in 1999, reaching $304 billion. Underneath the near-record amount lay a significant shift in the com- FINANCIAL AND CAPITAL ACCOUNT position. U.S. budget surpluses reduced the supply of TRANSACTIONS U.S. Treasury securities, and government-sponsored enterprises such as Fannie Mae and Freddie Mac, As described in footnote 1, the capital account has as well as some large U.S. corporations, strove to fill recently been redefined. It now consists mainly of the void by issuing "benchmark" or "reference" debt forgiveness and transfers of goods and financial debt that mimics many of the attributes of Treasury assets by migrants as they enter or leave the country. securities. Private foreigners on net sold $22 billion Transactions in the new capital account are quite in U.S. Treasury securities in 1999, the first year of small in the U.S. data (table 1) but are much larger for foreign net sales since 1990. These were more than some developing countries. offset by a pickup in foreign purchases of their near- The new financial account, previously termed the est substitutes—agency bonds and corporate bonds. capital account, consists of private and official capital Foreign purchases of agency bonds reached $74 bilflows. In time, these may come to be called financial lion in 1999, and foreign purchases of corporate flows, but in general they are still referred to as bonds reached $158 billion; purchases of both types capital flows. of bonds were significantly higher than the previous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

314 Federal Reserve Bulletin • May 2000 record levels recorded in 1998. Private foreign pur- foreign exchange market, more than accounted for chases of U.S. stocks also reached record levels the overall increase in 1999. ($95 billion) in 1999. With net recorded capital inflows to the United Foreign direct investment flows into the United States exceeding the large current account deficit in States were also extremely robust in 1999, easily 1999, the U.S. international accounts recorded a negasurpassing the record inflow set in 1998. As in 1998, tive statistical discrepancy, after a small positive disdirect investment inflows were elevated by several crepancy in 1998 and an extremely large negative large mergers, the largest of which was the Vodafone one in 1997. A negative discrepancy indicates that AirTouch deal. These mergers left their imprint on net payments in the current account or net outflows other parts of the capital account as well. In the past in the financial account have been unrecorded. For two years, many of the largest mergers have been example, illegal drug imports would contribute to a financed by swapping equity in the foreign acquiring negative discrepancy, as would unrecorded investfirm—which has usually been European—for equity ments abroad by U.S. residents or overstated investin the U.S. firm that is being acquired. The BEA ments in the United States by foreigners. Inadequaestimates that, through this mechanism, U.S. resi- cies in the data on trade in services also confound the dents acquired $114 billion of foreign equity in 1999. international accounts, although the effect on the It is likely that to rebalance their portfolios, U.S. discrepancy is not clear. Given the severity of the investors subsequently sold a significant portion of swings in the discrepancy over the past few years, the equity acquired through stock swaps. On net, U.S. the negative discrepancy in 1999 was likely caused residents acquired large amounts of Japanese and by overstated capital inflows. European equities in 1999. U.S. residents made modest net purchases of foreign bonds in 1999. U.S. direct investment flows PROSPECTS FOR 2000 abroad also reflected the global wave of merger activity in 1999 and exceeded their record level of 1998. Domestic spending may well continue to outstrip Net official capital inflows picked up in 1999, domestic production and increase the current account reaching $53 billion, a marked increase over 1997 deficit. But adjustments that should slow the process and 1998 but far below the record level of $133 bil- are also at work. If recovery in foreign economies lion set in 1996. Foreign official assets in the United stays on course, U.S. exports should continue to States increased $45 billion after a moderate decline expand. The sharp appreciation of the dollar in 1997 in 1998. The 1998 decline in foreign official assets in and 1998 should have a diminished effect on U.S. the United States was fairly widespread, as many trade; without further dollar appreciation, the price countries found their currencies under unwanted competitiveness of U.S. goods should improve, a downward pressure during the turmoil. In contrast, change that would tend to reduce the deficit. Net the increase in foreign official reserves in the United investment income is likely, however, to continue to States in 1999 was fairly concentrated, as a relatively increase the current account deficit, as the large few countries experienced unwanted upward pressure excess of foreign assets in the United States above on their currencies vis-a-vis the U.S. dollar. In par- U.S. assets abroad implies that foreign investors ticular, increases in Japanese reserves in the United should continue to earn more in the United States States, which were associated with intervention in the than U.S. investors earn in other countries. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

315 Industrial Production and Capacity Utilization for March 2000 Released for publication April 14 fourth quarter. The acceleration in the first quarter reflects a rebound in the output of utilities, which had Industrial production increased 0.3 percent in March fallen sharply in the fourth quarter. Although manuafter having increased an average of V2 percent in the facturing output expanded slightly less rapidly in the previous three months. At 142.0 percent of its 1992 first quarter than in the fourth, it increased at a rate average, industrial production in March was 5.1 per- still well above the average for 1998 and 1999. The cent higher than in March 1999. For the first quarter rate of capacity utilization for total industry edged as a whole, the total index increased at an annual rate down in March to 81.4 percent, a level about xh perof 6.4 percent, up from a gain of 5.3 percent in the centage point below its 1967-99 average. Industrial production and capacity utilization Ratio scale, 1992= 100 Percent of capacity 140 130 120 110 100 1990 1992 1994 1996 1998 2000 Industrial production, market groups Ratio scale, 1992= 100 Ratio scale, 1992= 100 155 145 135 125 115 105 95 190 205 175 190 175 160 160 145 145 130 130 115 115 100 100 85 85 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, March. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

316 Federal Reserve Bulletin • May 2000 Industrial production and capacity utilization, March 2000 Industrial production, index, 1992=100 Percentage change CCCaaattteeegggooorrryyy 11999999 22000000 1999' 20001 MMaarr.. 11999999 ttoo Dec/ Jan.r Feb/ Mar.P Dec/ Jan/ Feb/ Mar.P MMaarr.. 22000000 Total 140.1 141.5 141.6 142.0 .5 1.0 .1 .3 5.1 Previous estimate 140.2 141.7 142.1 .5 1.1 .3 Major market groups Products, total2 128.5 130.0 130.2 130.3 .4 1.2 .1 .1 3.4 Consumer goods 118.1 119.2 119.2 119.0 .4 .9 .0 -.2 2.0 Business equipment 175.5 179.4 180.0 181.5 .3 2.2 .3 .9 8.4 Construction supplies 134.9 136.5 136.6 136.5 .5 1.1 .1 -.1 3.6 Materials 159.7 160.8 161.0 162.0 .5 .7 .1 .6 7.8 Major industry groups Manufacturing 145.6 146.8 147.0 147.6 .4 .8 .1 .4 5.7 Durable 178.4 181.0 181.2 182.5 .6 1.4 .1 .8 8.6 Nondurable 113.7 113.8 113.9 113.9 .1 .0 .1 .0 1.9 Mining 99.5 99.9 99.1 100.0 -.2 .5 -.9 1.0 2.6 Utilities 113.5 117.7 118.6 115.7 2.4 3.7 .8 -2.5 -.9 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1999 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, MMMaaarrr... 111999999999 11996677--9999 11998822 11998888--8899 tttooo Mar. Dec/ Jan/ Feb/ Mar.P MMMaaarrr... 222000000000 Total 82.0 71.1 85.4 80.5 81.1 81.6 81.5 81.4 3.8 Previous estimate 81.1 81.7 81.7 Manufacturing 81.1 69.0 85.7 79.6 80.3 80.7 80.6 80.6 4.3 Advanced processing 80.5 70.4 84.2 78.5 79.2 79.7 79.5 79.5 5.2 Primary processing . 82.4 66.2 88.9 82.9 83.9 83.9 83.9 84.0 2.0 Mining 87.3 80.3 88.0 80.9 82.8 83.3 82.7 83.6 -.6 Utilities 87.5 75.9 92.6 91.9 88.4 91.6 92.3 89.9 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 had averaged in the previous three months. The production of information processing and related equip- The output of consumer goods edged down 0.2 per- ment increased 2.0 percent on the strength of gains cent in March, as an increase of 0.4 percent in the in the output of communications equipment and production of durable consumer goods was more than computers. The production index for the "other offset by a decline in the production of nondurables. equipment" category also posted a strong gain that The gain in the production of durable consumer reflected a sharp increase in the output of farm goods mostly reflected a 0.7 percent rebound in the machinery and equipment; even so, output for this output of automotive products. The output of other category has only partially recovered from its steep consumer durable goods edged up 0.1 percent in drop in the first half of last year. The output of transit February and March after having posted sizable gains equipment fell again in March because of continued in the previous two months. The production of non- declines in the production of commercial aircraft and durable non-energy consumer goods slipped 0.2 per- reductions in the production of medium and heavy cent in March, as solid gains in the production of trucks. The production of industrial equipment fell consumer chemicals and paper products were mostly back 0.7 percent, retracing the gain in February; offset by declines in the output of foods and tobacco some of the decrease reflected a decline in the output and of clothing. The output of consumer energy of construction machinery, which had posted substanproducts, which fell back 1.6 percent, was pushed tial increases in the previous three months. down by a decrease in utilities' sales to residences. The production index for construction supplies The production of business equipment increased edged down 0.1 percent and remains close to its 0.9 percent, advancing at about the same pace that it recent peak in January; it was up 5.0 percent (annual Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 317 rate) in the first quarter, a rise similar to the gain in the first quarter, continued increases in the production the fourth quarter of last year. The output of materials of high-technology goods accounted for most of the was up 0.6 percent in March, slightly more than overall gain. In particular, more rapid output of comthe average gain in the preceding three months. The munications equipment contributed importantly to output of durable goods materials rose 0.8 percent, the acceleration. The output of nondurables advanced with another strong increase in equipment parts, par- at an annual rate of only 1.6 percent in the first ticularly semiconductors. The output indexes for non- quarter. The production of food, paper, printing, and durable goods materials and for energy materials rose chemicals all decelerated between the fourth and first 0.2 percent. quarters. The factory operating rate, at 80.6 percent, was unchanged. The utilization rate for primary- INDUSTRY GROUPS processing industries increased slightly, to 84.0 percent, while that for advanced-processing industries Manufacturing output rose 0.4 percent in March, led remained at 79.5 percent. by gains in the production of durable goods; the The output of utilities fell back 2.5 percent because production of nondurable goods, which had risen of unseasonably warm weather; the operating rate sharply in the fourth quarter, has been little changed at utilities fell to 89.9 percent. Mine production since the end of last year. Among durable goods, increased 1.0 percent, more than reversing the decline which accelerated to an annual rate of 9.7 percent in in February. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

318 Statements to the Congress Statement by Alan Greenspan, Chairman, Board of gress have wisely chosen to wall off the bulk of the Governors of the Federal Reserve System, before the unified budget surpluses projected for the next sev- Special Committee on Aging, U.S. Senate, March 27, eral years and allow it to build. This course would 2000 boost saving, raise the productive capital stock, and thus help provide the wherewithal to meet our future I am pleased to be here today as you begin your obligations. discussion of using general revenue transfers to shore The idea that we should stop borrowing from the up social security and Medicare. A thorough consid- social security trust fund to finance other outlays has eration of the options available for placing these gained surprising—and welcome—traction. It has programs on a firmer fiscal footing is essential given established, in effect, a new budgetary framework the pressures that loom in the not-too-distant future. I that is centered on the on-budget surplus and the way commend the committee for your efforts to advance it should be used. The focus on the on-budget surplus this important discussion. measure is useful because it offers a clear objective As you are well aware, the dramatic increase in the that should help to strengthen budgetary discipline. number of retirees relative to workers that is set to Moreover, it moves the budget process closer to begin in about ten years makes our pay-as-you-go accrual accounting, the private-sector norm, and—I social security and Medicare programs, as currently believe—a sensible direction for federal budget constituted, unsustainable in the long run. Eventually, accounting. social security and Medicare will have to undergo Under accrual accounting, benefits would be reform. The goal of this reform must be to increase counted when they are earned by workers rather than the real resources available to meet the needs and when they are paid out. Under full accrual accountexpectations of retirees without blunting the growth ing, the social security program would have shown a in living standards among our working population substantial deficit last year. So would have the total and, presumably without necessitating sizable reduc- federal budget. To the extent that such accruals are tions in other government spending programs. not formally accounted for in the unified budget—as The only measures that can accomplish this goal they generally are not—we create contingent liabiliare those aimed at increasing the total amount of ties that, under most reasonable sets of assumptions, goods and services produced by our economy. As currently amount to many trillions of dollars for I have argued many times before, any sustainable social security benefits alone. The contingent liabiliretirement system—private or public—requires that ties implicit in the Medicare program are much more sufficient resources be set aside over a lifetime of difficult to calculate—but they are likely also in the work to fund an adequate level of retirement con- trillions of dollars. For the federal government as a sumption. At the most rudimentary level, one could whole, an accrual-based budget measure would envision households saving by actually storing goods record noticeable unified budget deficits over the next purchased during their working years for consump- few years and increasing, rather than decreasing, tion during retirement. Even better, the resources that implicit national indebtedness. would have otherwise gone into the stored goods The expected slowdown in the growth of the labor could be diverted to the production of new capital force, the direct result of the decrease in the birth rate assets, which would cumulatively produce an even after the baby boom, means that financing our debt— greater quantity of goods and services to be con- whether explicit debt or the implicit debt represented sumed in retirement. by social security and Medicare's contingent From this perspective, it becomes clear that liabilities—will become increasingly difficult. I increasing our national saving is essential to any should add, parenthetically, that the problem we face successful reform of social security or Medicare. The is much smaller than that confronting the more rapimpressive improvement in the budget picture since idly aging populations of Europe and Japan. Nonethe early 1990s has helped greatly in this regard. And theless, pressures will mount, and I believe that the it appears that both the Administration and the Con- growth potential of our economy is best served by Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

319 maintaining the unified budget surpluses presently in higher rates of return on their contributions than that train and thereby reducing Treasury debt held by the available, for example, on U.S. Treasury securities. public. The resulting boost to the pool of domestic But the reduction in the birth rate after the baby saving will help sustain the current boom in boom and the continued increase in life expectancy productivity-generating investment in the private sec- beyond age sixty-five mean that the social security tor. Indeed, if productivity growth continues at its system will no longer provide workers with such high recent pace, our entitlement programs will be in returns. much better shape. Saving the surpluses—if politi- Although the analogy between social security and cally feasible—is, in my judgment, the most impor- private insurance has never been that tight, the pertant fiscal measure we can take at this time to foster ception of social security as insurance has been widecontinued improvements in productivity. spread and quite powerful. Many supporters of social The vehicle through which we save our surpluses security feared that breaking the link between payroll is less important than the fact that we save them. One taxes and benefits by moving to greater reliance on method that has been proposed, and that is the focus general revenue financing would transform social of today's hearing, is to transfer general revenues security into a welfare program. from the on-budget accounts to the social security But now, when payroll taxes are no longer protrust fund. These transfers in themselves do nothing jected to be sufficient to pay even currently legislated to the unified budget surplus. The on-budget surplus benefits, moving toward a system of general revenue is reduced, but the off-budget surplus increases com- finance raises the concern that the fiscal discipline of mensurately. The transfers have no effect on the debt the current social security system could be reduced. held by the public and, hence, no direct effect on Once the link between payroll taxes and social secunational saving. But transferring monies from the rity benefits is broken, the pressure to reform the on-budget to the off-budget social security accounts social security system may ease, particularly in this could make it politically more likely that the large environment of budget surpluses. For example, Mediprojected unified surpluses will, in fact, materialize. caid and Medicare part B—both of which will face Given that our record of sustaining surpluses for increasing demands as the population ages—are extended periods of time is not good, any device that already financed with general revenues, and, consemight accomplish this goal is worth examining. quently, there has been much less pressure to date to Using general revenues to fund social security is an reform these programs. idea that has been considered previously but rejected. The availability of general revenue finance when Indeed, the commission that I chaired in 1983 was the baby boom generation begins to enter retirement strongly opposed, for a variety of reasons, to the and press on our overall fiscal resources could make notion of using general revenues to shore up social it more difficult to argue for program cuts, regardless security. One argument was that using general reve- of their broader merits. As I have testified on many nues would blur the distinction between the social previous occasions, there are a number of social security system, which was viewed as a social insur- security benefit reforms—such as extending the age ance program, and other government spending of full retirement benefit entitlement and indexing it programs. to longevity, altering the benefit calculation bend Both social security and, for that matter, Medicare points and adjusting annual cost-of-living escalation part A are loosely modeled on private insurance to a more accurate measure—that should be given systems, with benefits financed out of worker contri- careful consideration. The potential for enhancing butions. Like private insurance systems, they are efficiency by restructuring the Medicare program is intended to be in long-term balance. But the standard probably even greater than in social security. Relaxadopted for social security and Medicare part A—that ing fiscal discipline in the Medicare program by taxes and other income are to be sufficient to pay expanding the use of general revenues before the benefits for seventy-five years—falls short of the underlying program has been tightened could take the in-perpetuity full funding standard of private pension steam out of efforts to improve the way health serplans, and, in many years, social security and Medi- vices are delivered. care have not met even this less stringent standard. That said, I think it is important to note that most Furthermore, the requirement that social security government programs are funded through general and Medicare be in long-term balance does not mean revenues, so allowing general revenues to finance that each generation gets in benefits only what it some of social security or Medicare part A is clearly contributed in taxes plus earnings. Indeed, most an idea that would not necessarily eliminate all fiscal social security beneficiaries to date have received far responsibility. It might be feasible, for example, to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

320 Federal Reserve Bulletin • May 2000 legislate temporary general revenue transfers that sion facing policymakers today is not about the distriwould end long before the baby boom generation bution of future resources but about the level of starts to retire, without opening the possibility of future resources available for future workers and completely eliminating the need for program cuts in retirees. The most effective means of raising the level social security or changes to Medicare. of future resources, in my judgment, is to allow the It is, of course, difficult to predict the political and budget surpluses projected in the coming years to be economic environment that will be facing policymak- used to pay down the nation's debt. The Congress ers fifteen or twenty years in the future. Legislation and the Administration will have to decide whether passed today that affects the distribution of resources transferring general revenues to the entitlement probetween future workers and retirees could easily be grams is the best way to preserve the surpluses, or changed later. That is why the most important deci- whether better mechanisms exist. Statement by Louise L. Roseman, Director, Division tion. Each year the Federal Reserve Board determines of Reserve Bank Operations and Payment Systems, the need for new currency and submits an order to the Board of Governors of the Federal Reserve System, Treasury's Bureau of Engraving and Printing (BEP). before the Subcommittee on Domestic and Inter- Typically, more than 80 percent of the new currency national Monetary Policy of the Committee on Bank- replaces currency destroyed by the Reserve Banks ing and Financial Services, U.S. House of Represen- because it is unfit for further circulation. The remaintatives, March 28, 2000 der is printed to meet expected increases in the demand for currency. The Federal Reserve pays the Thank you for the opportunity to comment on a BEP the cost of printing new currency and arranges variety of issues that affect our nation's coins and and pays the cost of transporting the currency from currency. The new dollar coin and the Fifty States the BEP facilities to the Federal Reserve cash offices. Commemorative Quarter program have renewed the The Federal Reserve distributes new and fit curpublic's interest in coins. These changes in our coin- rency into circulation, detects counterfeits, and age are occurring as the Treasury Department pre- destroys unfit currency. When a depository institution pares to release new $5 notes and $10 notes later this orders currency from a Federal Reserve Bank, the spring, completing the design series that began with Bank provides the requested shipment to an armored the $100 note in 1996. Before I address the issues carrier arranged by the depository institution and raised by the subcommittee, it may be useful first charges the depository institution's account (or the to describe briefly how the Federal Reserve, as the account of the bank that acts as its settlement agent) nation's central bank, issues, distributes, processes, for the amount of the order. Similarly, when a deposiand accounts for currency and coin. tory institution returns excess currency to the Federal Reserve, it receives a corresponding credit to its account. The deposited currency is stored in secure ROLE OF THE FEDERAL RESERVE vaults until it is verified on a note-by-note basis by processing on very sophisticated equipment. During The Federal Reserve provides cash services to more this verification, deposited currency is counted for than 9,600 of the 22,000 banks, savings and loans accuracy, counterfeit notes are identified, and unfit associations, and credit unions in the United States to notes are destroyed. The fit currency is returned to carry out its responsibility under the Federal Reserve the secure vault and is used to fill future currency Act "to furnish an elastic currency." The remaining orders. institutions choose to obtain their cash through corre- Federal Reserve notes in circulation are recorded spondent banks rather than directly from the Federal as a liability on the Federal Reserve's balance sheet. Reserve. The Federal Reserve, as required by law, pledges collateral (principally U.S. Treasury securities) equal to the face value of currency in circulation. Each day, as orders are filled and deposits are received, the CURRENCY Federal Reserve determines the net change and takes Federal Reserve notes account for about 95 percent any necessary action to ensure the currency is fully of the $564 billion of currency and coin in circula- collateralized. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 321 COIN tion from pennies to higher-denomination coins to avoid shortages there. Faced with coin orders that The Federal Reserve's role in coin operations is more exceeded the Mint's near-term production capabililimited than its role in currency. The Mint determines ties, the Federal Reserve centralized its management the annual coin production and monitors Federal of coin inventories in a single office. Centralized Reserve coin inventories weekly to identify trends in management has allowed the Federal Reserve to coin demand. To help the Mint plan, the Reserve coordinate better with the Mint to distribute new Banks in March provide the Mint with their projected coins equitably and balance coin inventories across monthly coin orders for the next fiscal year. In addi- Federal Reserve sites. In addition, the Mint and the tion, the Reserve Banks provide preliminary esti- Federal Reserve have encouraged depository institumates of their coin needs for the two following fiscal tions to make it easier for the public to deposit coins. years. The Federal Reserve buys coin from the Mint We also understand that some depository institutions at face value, and the Mint pays the expense of shifted their coin inventories among their offices to transporting the coin from its production facilities to better meet their customers' needs in all geographic the Reserve Banks. areas they served. The Federal Reserve's coin operations consist pri- Coin circulates much differently than currency. marily of storage and distribution but not processing This is especially true for pennies, which do not because coins do not require fitness sorting. In addi- circulate with the same frequency as other coin tion to the Federal Reserve offices, Reserve Banks denominations. The Mint and Federal Reserve have use more than 100 additional sites, known as coin experienced other periods in the 1980s and 1990s terminals, to handle nearly 80 percent of the Federal when the demand for pennies exceeded the Reserve Reserve's coin volume. Coin terminals, which are Bank inventories and the Mint's production capacity. generally operated by armored carriers, reduce the The location of the coin, not the amount of coin, is transportation required and make the coin distribu- quite often the problem. People tend to accumulate tion system more efficient. Many retailers and deposi- coins in desk drawers, jars, or on the tops of dressers. tory institutions need to have coin wrapped, a service One company identified this phenomenon as a busiprovided by armored carriers. Depository institutions ness opportunity and placed coin collection machines order and deposit coin, like currency, to meet cus- in supermarkets. In 1999, this company returned tomer demand, and the Reserve Banks adjust the 20 billion coins to circulation. appropriate bank's account accordingly. Rather than The Federal Reserve and the Mint are working piece-verify coin deposits, the Reserve Banks and the collaboratively to better understand coin demand and coin terminals generally weigh coin bags to verify the coin circulation patterns. Efforts are under way to value of coin received. The Reserve Banks account develop better models for forecasting coin demand for the coin in their vaults and at the coin terminals as and to improve coin distribution and inventory manan asset on their balance sheets. agement systems. COIN DEMAND DOLLAR COIN During 1999, the Federal Reserve experienced excep- The recent introduction of the new dollar coin illustional demand for all denominations of coins. In trates the Federal Reserve's role in coin distribution. several regions, the demand for pennies, and later in The original plan, developed last summer, called for the year, for other denominations, at times exceeded the Federal Reserve to begin distributing the new the Federal Reserve's ability to meet orders. The dollar coin to the banking industry in March 2000. average number of coins flowing out of Reserve Depository institutions, armored carriers, and the Banks during 1999 (minus coins flowing into Reserve Federal Reserve had requested this release date to Banks) was nearly 30 percent higher than in 1998. ensure that any increased currency flows around the That number, in turn, was 27 percent higher than in Y2K period had diminished before distribution and 1997. The strong economy and the public's interest inventory build-up efforts began for the dollar coin. in collecting state quarters were likely contributing In December 1999, the Mint notified the Federal factors to the recent higher coin demand. Reserve and banking industry representatives that it To address this situation, the Mint increased its planned to enter into a corporate partnership with coin production to 20 billion coins in fiscal year 1999 Wal-Mart to promote the new dollar coin beginning from 15 billion coins in 1998. It also shifted produc- in January. Banking industry representatives objected Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

322 Federal Reserve Bulletin • May 2000 to a retailer's distributing the new coin before the laboratively with the Treasury, the Secret Service, banking industry obtained it, and they asked that the and the Bureau of Engraving and Printing on antiindustry receive the new dollar coin at the same time. counterfeiting efforts. Counterfeit-deterrent features The Mint and the Federal Reserve tried to accommo- in U.S. currency continue to evolve to ensure a secure date the depository institutions, but the production currency in which the public has confidence. Curand distribution logistics associated with this acceler- rency design changes in 1990 introduced a security ated schedule made it difficult for the Mint and the thread, microprinting, and new covert features. Federal Reserve to meet depository institutions' ini- The 1996 series design includes both publicly tial orders for the dollar coin. recognizable anticounterfeiting features, such as an By January 30, the launch date for the Wal-Mart enhanced security thread, a watermark, and colorpromotion, the Mint had shipped boxes of wrapped shifting ink, as well as additional covert, machinenew dollar coins directly to Wal-Mart stores. In con- readable features. The Federal Reserve also provides trast, the Mint began limited shipments to the Federal information to the Secret Service on all counterfeits Reserve on January 18, but some West Coast Federal the Reserve Banks receive in its deposits, including Reserve offices did not receive the coin until Jan- the most sophisticated counterfeits. uary 28, two days after the coin was officially Given that about two-thirds of U.S. currency circureleased to the public. Additionally, Wal-Mart lates overseas, we monitor and analyze international received more initial supplies of the new dollar coins currency flows and counterfeiting data to understand than did the Federal Reserve. By February 11, the better the international use of U.S. currency and the Mint had shipped 60 million coins to Wal-Mart. incidents of U.S. currency counterfeiting in foreign In contrast, by the same date, the Mint had shipped countries. The Federal Reserve maintains close con- 51 million coins to the Federal Reserve, which we tact with commercial banks that provide currency used to begin meeting the demand for the rest of the internationally as well as with other central banks so U.S. economy. that we can closely monitor counterfeiting activity. Once the Reserve Bank coin facilities received the Ongoing research efforts are aimed at defending initial supply of dollar coins, the Reserve Banks against future counterfeiting threats, especially those equitably distributed the unwrapped dollar coins and posed by continued improvements in, and the lowpartially filled depository institutions' orders through cost availability of, inkjet printers and computer normal armored carrier transportation routes. Deposi- scanners. For instance, the Federal Reserve and the tory institutions typically received the new dollar Bureau of Engraving and Printing have devoted sigcoins several days later to allow time for the armored nificant resources to a twenty-four nation effort, carriers to wrap the coin and deliver it. Because through the Bank for International Settlements, to of the limited initial quantities of coin available to combat color copier counterfeiting and, more the Federal Reserve, many community banks and recently, the growing threat of inkjet counterfeiting. branches of large banks did not receive dollar coins The Federal Reserve is not active in anticounteruntil after Wal-Mart had released them to the public. feiting efforts for coin. Economic loss and the num- To address the banking industry's desire to have ber of counterfeiting incidents associated with coin dollar coin inventories as soon as possible, the Fed- are low compared with those involving currency. eral Reserve worked closely with the Mint to develop Moreover, because the Federal Reserve's coin proa direct shipment program for depository institutions. cessing operations do not include piece inspections, This temporary program, managed by the Mint, is our ability to detect counterfeit coin is limited. designed to expedite delivery of limited quantities of dollar coins to small depository institutions. We expect that within the next few weeks the distribution channels will catch up to initial demand and the HIGH-DENOMINATION BANK NOTES Federal Reserve will be able to fill all depository institutions' orders for the new dollar coin. The subcommittee has asked for our views on the advantages and disadvantages of issuing U.S. bank notes in denominations higher than $100. We consid- ANTICOUNTERFEITING MEASURES ered how a higher-denomination note could enhance the attractiveness of using U.S. currency and could Although the Secretary of the Treasury, and not the provide savings by reducing printing, processing, and Federal Reserve, has authority to approve currency transportation costs. These benefits were weighed designs, the Federal Reserve works actively and col- against the concern that high-denomination bank Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 323 notes could facilitate money laundering and drug ers use high-denomination U.S. bank notes primarily trafficking. for savings, but we also find that countries with Demand for U.S. currency and for specific denomi- transitioning economic and political environments nations is driven by many factors, including the needs use U.S. currency as a medium of exchange. Ultifor a medium of exchange and a store of value. mately, we believe the strength and stability of our Domestic demand for currency is largely transaction- economy will continue to be the primary factors oriented and is influenced by income levels, prices, influencing international demand for U.S. currency. and the availability of alternative payment methods. Thus, the introduction of a high-denomination U.S. Increases in domestic demand for high-denomination bank note would likely produce minimal increases in bank notes ($50s and $100s) have been generally demand for U.S. currency. modest because Americans tend to use checks, credit Although there are some benefits associated with a or debit cards, or other noncash forms of payment high-denomination bank note, the law enforcement for larger-dollar transactions. The introduction of a community has expressed concern about the dishigher-denomination bank note saves printing and proportionate use of large-denomination bank notes processing costs, but only to the extent that the public for illicit activity, including money laundering, drug shifts its demand from $100s to larger-denomination trafficking, and tax evasion. In addition to making notes. Even if such a shift occurred, any savings large-value transactions more efficient, a highwould likely be minimal without a substantial reduc- denomination note could inadvertently facilitate tion in the demand for other notes—$ls through illegitimate transactions by making them more effi- $20s account for about 85 percent of the production cient as well. Such concerns prompted the Canadian of the BEP and more than 90 percent of the Federal government's recent proposal to cease issuing its Reserve's processing. $1,000 bank note. International demand for U.S. currency is influ- In weighing the marginal benefits of introducing enced largely by the stability of foreign currencies, a high-denomination U.S. bank note against law the confidence in the U.S. dollar as a stable currency enforcement concerns about illegitimate activities, backed by a strong economy, and the lack of any we do not foresee any immediate need to issue highrecall of U.S. currency. As I mentioned earlier, denomination notes. approximately two-thirds of U.S. currency is held We appreciate the opportunity to share our internationally, but about three-fourths of the thoughts on these issues. • $100 notes in circulation are held overseas. Foreign- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

324 Announcements ACTION BY THE FEDERAL OPEN MARKET commentary. The revisions are effective immediately. COMMITTEE AND AN INCREASE IN THE Compliance is optional until October 1, 2000, when it DISCOUNT RATE becomes mandatory. The Federal Open Market Committee voted on March 21, 2000, to raise its target for the federal funds rate by 25 basis points to 6 percent. In a related AMENDMENTS TO THE INTERIM RULE action, the Board of Governors approved a 25 basis REGARDING PROCEDURES FOR ELECTING point increase in the discount rate to 5 Vi percent. TO BE TREATED AS A FINANCIAL HOLDING Economic conditions and considerations addressed COMPANY by the Committee are essentially the same as when the Committee met in February. The Committee The Federal Reserve Board on March 15, 2000, remains concerned that increases in demand will announced amendments to its interim rule regarding continue to exceed the growth in potential supply, procedures for bank holding companies and foreign which could foster inflationary imbalances that banks to elect to be treated as financial holding would undermine the economy's record economic companies. The interim rule was issued on Januexpansion. ary 19, 2000. The amendments announced on Against the background of its long-run goals of March 15 are effective immediately. price stability and sustainable economic growth and The Board has changed the procedures for processof the information currently available, the Committee ing elections filed by foreign banks to allow the use believes the risks are weighted mainly toward con- of the thirty-one-day notice procedure applicable to ditions that may generate heightened inflation pres- U.S. bank holding companies. The Board based its sures in the foreseeable future. decision on its assessment of the comparability of the In taking the discount rate action, the Federal standards used in the first elections filed by foreign Reserve Board approved requests submitted by the banks. Given this experience, the Board believes it Boards of Directors of the Federal Reserve Banks of can effectively perform its statutory responsibilities Boston, New York, Philadelphia, Cleveland, Rich- using a notice procedure. The Board also adopted mond, Atlanta, Chicago, St. Louis, Minneapolis, several other amendments to the interim rule. Kansas City, and San Francisco. Subsequently the The Board will accept comments on these amend- Board approved a similar request by the board of ments until April 17, 2000. directors of the Federal Reserve Bank of Dallas, effective March 23. The discount rate is the rate charged depository institutions when they borrow short-term adjustment credit from their District Fed- INTERIM RULE LISTING FINANCIAL ACTIVITIES eral Reserve Banks. THAT WILL BE PERMISSIBLE FOR FINANCIAL HOLDING COMPANIES The Federal Reserve Board on March 10, 2000, REGULATION Z: REVISIONS TO THE OFFICIAL approved an interim rule, effective March 11, 2000, STAFF COMMENTARY listing financial activities permissible for financial The Federal Reserve Board on March 24, 2000, holding companies under the Gramm-Leach-Bliley announced revisions to its Regulation Z (Truth in Act. Lending) official staff commentary, which applies The list will also help identify companies subject and interprets the requirements of the regulation. to the provisions of the act governing the privacy of The commentary revisions address cash advances customer information. The privacy provisions apply commonly called "payday loans." The Board is also to a company doing a financial business regardless of publishing technical corrections to the regulation and whether the company is affiliated with a bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

325 The interim rule, which amends Regulation Y or agency of a foreign bank and a U.S. securities (Bank Holding Companies and Change in Bank Con- affiliate. trol), establishes procedures for financial holding This interim rule will become effective on companies to engage in the listed financial activities. March 11, 2000. The Board requests comments on It also establishes procedures by which a party may the interim rule by May 12, 2000, and will revise it as ask the Board to list additional activities as financial appropriate after reviewing comments. in nature or as incidental to, or complementary to, a All eight of the operating standards, as well as the financial activity. Board's current 25 percent revenue test, will continue Comments are requested on the interim rule by to apply to bank holding companies that control May 12, 2000. The Board will revise it as appropriate section 20 subsidiaries pursuant to section 4(c)(8) of after reviewing the comments. the Bank Holding Company Act. INTERIM RULE PERMITTING QUALIFYING STATE ELECTIONS TO BE TREATED AS FINANCIAL MEMBER BANKS TO ESTABLISH FINANCIAL HOLDING COMPANIES SUBSIDIARIES The Federal Reserve Board on March 13, 2000, The Federal Reserve Board on March 10, 2000, announced that the elections to become or be treated announced the approval of an interim rule permitting as financial holding companies of 117 bank holding qualifying state member banks to establish financial companies and foreign banking organizations were subsidiaries and thereby engage in activities that have effective as of that date. been determined to be financial in nature or inciden- The Federal Reserve Board and the Secretary of tal to financial activities. The interim rule establishes the Treasury anticipate issuing shortly an interim rule a streamlined notice procedure for state member governing the merchant banking activities of finanbanks that wish to acquire control of, or an interest cial holding companies. Any financial holding comin, a financial subsidiary. The Board's rule parallels pany that engages in merchant banking activities that adopted by the Comptroller of the Currency for will be expected to comply with the interim rule financial subsidiaries of national banks. when it becomes effective. The interim rule is effective on March 11, 2000, The Federal Reserve Board announced on the effective date of Title I of the Gramm-Leach- March 23, 2000, that the elections of 27 bank holding Bliley Act. Comments will be accepted on the interim companies and foreign banking organizations to rule until May 12, 2000. The Board will revise the become or be treated as financial holding companies interim rule as appropriate after reviewing the were effective on that date. comments. As they become effective, future financial holding company elections will be posted on the Board's public web site at www.federalreserve.gov/ INTERIM RULE ON OPERATING STANDARDS FOR generalinfo/fhc/ FINANCIAL HOLDING COMPANIES THAT HAVE SECURITIES AFFILIATES INTERIM RULE GOVERNING THE MERCHANT The Federal Reserve Board on March 10, 2000, BANKING ACTIVITIES OF FINANCIAL HOLDING approved an interim rule that would apply two of COMPANIES eight operating standards that currently apply to bank holding companies that control so-called section 20 The Federal Reserve Board and the Secretary of the affiliates to financial holding companies authorized Treasury jointly announced on March 17, 2000, their under the Gramm-Leach-Bliley Act that have securi- approval of an interim rule governing the merchant ties affiliates. These two prudential provisions (1) re- banking activities of financial holding companies. quire that intra-day extensions of credit to a securities The interim rule implements the merchant banking firm from an affiliated bank or thrift institution or provisions of the Financial Modernization Act. It U.S. branch or agency of a foreign bank be on market includes provisions on recordkeeping and reporting; terms consistent with section 23B of the Federal risk-management practices; holding periods for mer- Reserve Act and (2) apply the limitations of sec- chant banking investments; corporate separateness tions 23A and 23B of the Federal Reserve Act to and limits on involvement in management; and limits certain covered transactions between a U.S. branch on exposure of financial holding companies to mer- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

326 Federal Reserve Bulletin • May 2000 chant banking investments. The interim rule was compliance with section 109 of the Riegle-Neal effective on March 17. Interstate Banking and Branching Efficiency Act The Board also announced on March 17 that it of 1994 (Interstate Act). These ratios update data is seeking public comment on a proposed rule, released on September 3, 1999. developed in consultation with the Secretary of the Section 109 prohibits any bank from establishing Treasury, that would govern the regulatory capital or acquiring a branch or branches outside its home treatment for equity investments in nonfinancial state primarily for the purpose of deposit production companies held by bank holding companies. The and provides a process to test compliance with the proposed rule would generally impose a 50 percent statutory requirements. The Gramm-Leach-Bliley capital requirement on merchant banking investments Act expanded the coverage of section 109 to include and certain similar investments. any branch of a bank controlled by an out-of-state Comments will be accepted on the interim rule and bank holding company. the capital proposal until May 22, 2000. The interim The first step in the process involves a loan-torule and the capital proposal will be revised as appro- deposit ratio screen that compares a bank's statewide priate after the comments are reviewed. loan-to-deposit ratio with the host state loan-todeposit ratio for banks in a particular state. A second step is conducted if a bank's statewide INTERIM RULE ON AN ALTERNATIVE TO loan-to-deposit ratio is less than one-half of the pub- THE DEBT RATING REQUIREMENT FOR lished ratio for that state or if data are not available at ESTABLISHING FINANCIAL SUBSIDIARIES the bank to conduct the first step. The second step requires the banking agencies to determine if the The Federal Reserve Board and the Secretary of bank is reasonably helping to meet the credit needs of the Treasury on March 14, 2000, announced their the communities served by the bank's interstate approval of an interim rule, effective March 14, 2000, branches. establishing alternative criteria for debt ratings that A bank that fails both steps is in violation of certain large banks may satisfy to establish a financial section 109 and is subject to sanctions by the banking subsidiary under the Financial Modernization Act. agencies. Under the act, a national or state member bank ranked among the largest fifty insured banks may control a financial subsidiary only if the bank meets certain criteria, including having an issue of highly ENFORCEMENT ACTIONS AND TERMINATIONS rated debt outstanding. The next fifty largest insured OF PREVIOUS ACTIONS banks may control a financial subsidiary if they satisfy this debt rating requirement or an alternative The Federal Reserve Board on March 3, 2000, requirement determined by the Treasury and the Fed- announced the issuance of a prompt corrective action eral Reserve. Under the interim rule, a bank meets the directive against the New Century Bank, Southfield, alternative requirement if it has a current long-term Michigan. issuer credit rating from a nationally recognized statistical rating organization that is within the three The Federal Reserve Board on March 9, 2000, highest investment-grade rating categories used by announced the execution of a written agreement by the rating organization. and between Banco Popular de Puerto Rico, Hato Comments will be accepted on the interim rule Rey, Puerto Rico, and the Federal Reserve Bank of until May 15, 2000. New York. The Federal Reserve Board on March 17, 2000, ISSUANCE OF HOST STATE LOAN-TO-DEPOSIT announced the issuance of a consent order against RATIOS TO DETERMINE COMPLIANCE mm Sunshine Financial and Frederick K. Wall, SECTION 109 OF THE INTERSTATE ACT institution-affiliated parties of the First Western Bank, Cooper City, Florida, a state member bank. The Board of Governors of the Federal Reserve Sys- The parties, without admitting to any allegations, tem, the Federal Deposit Insurance Corporation, and consented to the order to resolve allegations that they the Office of the Comptroller of the Currency on violated the Change in Bank Control Act in connec- March 23, 2000, issued the host state loan-to-deposit tion with the acquisition of beneficial ownership of ratios that the banking agencies will use to determine the shares of the bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 327 The Federal Reserve Board on March 17, 2000, The temporary orders to cease and desist required announced the issuance of an order of prohibition Banco Nacional de Mexico, Banco Internacional, against Vinay B. Malhotra, a former vice president S.A., and Banco Santander to enhance their antiand officer of the Chicago Branch of The Bank of money-laundering policies and procedures in the Tokyo-Mitsubishi, Ltd., Tokyo, Japan. United States. The banks have been in full compli- Mr. Malhotra, without admitting to any allegations, ance with the temporary orders. consented to the issuance of the order due to his alleged breach of fiduciary duties and misapplication of bank funds for his personal benefit. PUBLICATION OF GUIDE TO THE FLOW OF FUNDS ACCOUNTS The Federal Reserve Board on March 17, 2000, announced the issuance of a consent order against the A new edition of the comprehensive Guide to the R&T Foundation and James R. Sellers, institution- Flow of Funds Accounts is now available from the affiliated parties of the First Western Bank, Cooper Board of Governors. The 1,200-page publication, in City, Florida, a state member bank. The parties, with- two volumes, provides general information helpful in out admitting to any allegations, consented to the understanding and using the accounts and detailed order to resolve allegations that they violated the information on the sources for derivation of data Change in Bank Control Act in connection with the provided in the accounts. acquisition of beneficial ownership of the shares of The introductory section of the Guide (1) explains the bank. the principles underlying the construction of the accounts and the relationship of the accounts to the The Federal Reserve Board on March 22, 2000, national income and product accounts; (2) describes announced the execution of a written agreement by the organization of the accounts into sectors in the and between the Security Dollar Bank, Niles, Ohio, U.S. economy and the financial transactions by which and the Federal Reserve Bank of Cleveland. economic activity takes place; (3) illustrates analytical uses of the accounts; and (4) lists sources of data The Federal Reserve Board announced on (including World Wide Web addresses) and methods March 13, 2000, that it had terminated the temporary of estimation and adjustment of the data. orders to cease and desist issued against Banco The balance of the Guide consists of seventy-six Nacional de Mexico, Mexico City, Mexico; Banco explanatory tables that correspond to the flow tables Internacional, S.A., Mexico City, Mexico; and in the Federal Reserve Board's publication of the Banco Santander, Madrid, Spain. flow of funds accounts, the Z. 1 statistical release. The The temporary orders to cease and desist were tables give—for each data series in each table— issued on May 18, 1998, in connection with Opera- complete information on the source of the data or the tion Casablanca, a law enforcement undercover methods for calculating the series along with recent operation that resulted in numerous convictions of annual data. drug traffickers, bankers, and two foreign banking The Guide can be purchased, for $20.00, from organizations with operations in the United States for Publications Services, Board of Governors of the money-laundering offenses. Federal Reserve System, Washington, DC 20551 Banco Nacional de Mexico, Banco Internacional, (202-452-3244 or 3245). • S.A., and Banco Santander were not charged with any criminal activity in connection with Operation Casablanca. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

328 Minutes of the Meeting of the Federal Open Market Committee Held on February 1-2, 2000 A meeting of the Federal Open Market Committee Messrs. Madigan and Slifman, 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, February 1, 2000, at 2:30 p.m. and contin- Messrs. Oliner and Whitesell, Assistant Directors, ued on Wednesday, February 2, 2000, at 9:00 a.m. Divisions of Research and Statistics and Monetary Affairs respectively, Board of Present: Governors Mr. Greenspan, Chairman Mr. Small,2 Section Chief, Division of Monetary Mr. McDonough, Vice Chairman Affairs, Board of Governors Mr. Broaddus Mr. Ferguson Messrs. Brayton,2 Morton,3 and Rosine,3 Senior Mr. Gramlich Economists, Divisions of Research and Mr. Guynn Statistics, International Finance, and Mr. Jordan Research and Statistics respectively, Mr. Kelley Board of Governors Mr. Meyer Mr. Parry Ms. Garrett and Mr. Hooker,3 Economists, Division of Monetary Affairs, Board of Governors Mr. Hoenig, Ms. Minehan, Messrs. Moskow Ms. Low, Open Market Secretariat Assistant, and Poole, Alternate Members of the Division of Monetary Affairs, Board of Federal Open Market Committee Governors Messrs. Boehne, McTeer, and Stern, Presidents Ms. Browne, Messrs. Hakkio and Hunter, of the Federal Reserve Banks of Philadelphia, Ms. Krieger, Messrs. Lang, Rasche, Rolnick, Dallas, and Minneapolis respectively and Rosenblum, Senior Vice Presidents, Federal Reserve Banks of Boston, Kansas City, Chicago, Mr. Kohn, Secretary and Economist New York, Philadelphia, St. Louis, Minneapolis, Mr. Bernard, Deputy Secretary and Dallas respectively Ms. Fox, Assistant Secretary Mr. Gillum, Assistant Secretary In the agenda for this meeting, it was reported that Mr. Mattingly, General Counsel advices of the election of the following members and Mr. Baxter, Deputy General Counsel alternate members of the Federal Open Market Com- Ms. Johnson, Economist Mr. Prell, Economist mittee for the period commencing January 1, 2000, and ending December 31, 2000, had been received Mr. Beebe, Ms. Cumming, Messrs. Eisenbeis, and that these individuals had executed their oaths of Goodfriend, Howard, Lindsey, Reinhart, office. Simpson, Sniderman, and Stockton, The elected members and alternate members were Associate Economists as follows: Mr. Fisher, Manager, System Open Market Account William J. McDonough, President of the Federal Reserve Mr. Winn,1 Assistant to the Board, Office of Bank of New York, with Jamie B. Stewart, Jr., First Vice President of the Federal Reserve Bank of Board Members, Board of Governors New York, as alternate Mr. Ettin, Deputy Director, Division of Research and Statistics, Board of Governors 2. Attended portion of meeting relating to the staff presentation of policy alternatives. 3. Attended portion of meeting relating to the Committee's review of the economic outlook and consideration of its money and debt 1. Attended Tuesday's session only. ranges for 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

329 J. Alfred Broaddus, Jr., President of the Federal Reserve Market Operations regarding adjustments to the Bank of Richmond, with Cathy E. Minehan, President stance of monetary policy during intermeeting of the Federal Reserve Bank of Boston, as alternate periods. As had previously been agreed, the temporary authority given to the Federal Reserve Bank of Jerry L. Jordan, President of the Federal Reserve Bank of Cleveland, with Michael H. Moskow, President New York to sell options to counter potential centuryof the Federal Reserve Bank of Chicago, as alternate data-change pressures in financial markets was allowed to lapse. Accordingly, the Authorization was Jack Guynn, President of the Federal Reserve Bank adopted, effective February 1, 2000, as shown below. of Atlanta, with William Poole, President of the Federal Reserve Bank of St. Louis, as alternate Robert T. Parry, President of the Federal Reserve Bank of San Francisco, with Thomas M. Hoenig, President of AUTHORIZATION FOR DOMESTIC the Federal Reserve Bank of Kansas City, as alternate OPEN MARKET OPERATIONS By unanimous vote, the following officers of the 1. The Federal Open Market Committee authorizes and Federal Open Market Committee were elected to directs the Federal Reserve Bank of New York, to the serve until the election of their successors at the first extent necessary to carry out the most recent domestic meeting of the Committee after December 31, 2000, policy directive adopted at a meeting of the Committee: with the understanding that in the event of the discon- (a) To buy or sell U.S. Government securities, including securities of the Federal Financing Bank, and securities tinuance of their official connection with the Board of that are direct obligations of, or fully guaranteed as to Governors or with a Federal Reserve Bank they principal and interest by, any agency of the United States in would cease to have any official connection with the the open market, from or to securities dealers and foreign Federal Open Market Committee: and international accounts maintained at the Federal Reserve Bank of New York, on a cash, regular, or deferred Alan Greenspan Chairman delivery basis, for the System Open Market Account at William J. McDonough Vice Chairman market prices, and, for such Account, to exchange matur- Donald L. Kohn Secretary and Economist ing U.S. Government and Federal agency securities with Normand R.V. Bernard Deputy Secretary the Treasury or the individual agencies or to allow them to Lynn S. Fox Assistant Secretary mature without replacement; provided that the aggregate Gary P. Gillum Assistant Secretary amount of U.S. Government and Federal agency securities J. Virgil Mattingly, Jr. General Counsel held in such Account (including forward commitments) at Thomas C. Baxter, Jr. Deputy General Counsel the close of business on the day of a meeting of the Karen H. Johnson Economist Committee at which action is taken with respect to a Michael J. Prell Economist domestic policy directive shall not be increased or decreased by more than $12.0 billion during the period Jack H. Beebe, Christine Cumming, Robert A. Eisenbeis, commencing with the opening of business on the day Marvin S. Goodfriend, David H. Howard, David E. following such meeting and ending with the close of busi- Lindsey, Vincent R. Reinhart, Thomas D. Simpson, ness on the day of the next such meeting; Mark S. Sniderman, and David J. Stockton, (b) To buy U.S. Government securities and obliga- Associate Economists tions that are direct obligations of, or fully guaranteed as to principal and interest by, any agency of the United States, By unanimous vote, the Federal Reserve Bank of from dealers for the account of the Federal Reserve Bank New York was selected to execute transactions for of New York under agreements for repurchase of such securities or obligations in 90 calendar days or less, at rates the System Open Market Account until the adjournthat, unless otherwise expressly authorized by the Commitment of the first meeting of the Committee after tee, shall be determined by competitive bidding, after December 31, 2000. applying reasonable limitations on the volume of agree- By unanimous vote, Peter R. Fisher was selected to ments with individual dealers; provided that in the event serve at the pleasure of the Committee as Manager, Government securities or agency issues covered by any such agreement are not repurchased by the dealer pursuant System Open Market Account, on the understanding to the agreement or a renewal thereof, they shall be sold in that his selection was subject to being satisfactory to the market or transferred to the System Open Market the Federal Reserve Bank of New York. Account. (c) To sell U.S. Government securities and obliga- Secretary's note: Advice subsequently was received that tions that are direct obligations of, or fully guaranteed as to the selection of Mr. Fisher as Manager was satisfactory principal and interest by, any agency of the United States to to the board of directors of the Federal Reserve Bank of dealers for System Open Market Account under agree- New York. ments for the resale by dealers of such securities or obligations in 90 calendar days or less, at rates that, unless By unanimous vote, the Committee approved an otherwise expressly authorized by the Committee, shall be addition to the Authorization for Domestic Open determined by competitive bidding, after applying reason- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

330 Federal Reserve Bulletin • May 2000 able limitations on the volume of agreements with indi- Open Market Account, to the extent necessary to carry out vidual dealers. the Committee's foreign currency directive and express 2. In order to ensure the effective conduct of open authorizations by the Committee pursuant thereto, and in market operations, the Federal Open Market Committee conformity with such procedural instructions as the Comauthorizes the Federal Reserve Bank of New York to lend mittee may issue from time to time: on an overnight basis U.S. Government securities held in A. To purchase and sell the following foreign currenthe System Open Market Account to dealers at rates that cies in the form of cable transfers through spot or forward shall be determined by competitive bidding but that in no transactions on the open market at home and abroad, event shall be less than 1.0 percent per annum of the including transactions with the U.S. Treasury, with the U.S. market value of the securities lent. The Federal Reserve Exchange Stabilization Fund established by Section 10 Bank of New York shall apply reasonable limitations on of the Gold Reserve Act of 1934, with foreign monetary the total amount of a specific issue that may be auctioned, authorities, with the Bank for International Settlements, and on the amount of securities that each dealer may and with other international financial institutions: borrow. The Federal Reserve Bank of New York may reject bids which could facilitate a dealer's ability to con- Canadian dollars Mexican pesos trol a single issue as determined solely by the Federal Danish kroner Norwegian kroner Reserve Bank of New York. Euro Swedish kronor 3. In order to ensure the effective conduct of open Pounds sterling Swiss francs market operations, while assisting in the provision of short- Japanese yen term investments for foreign and international accounts maintained at the Federal Reserve Bank of New York, the B. To hold balances of, and to have outstanding for- Federal Open Market Committee authorizes and directs the ward contracts to receive or to deliver, the foreign curren- Federal Reserve Bank of New York (a) for System Open cies listed in paragraph A above. Market Account, to sell U.S. Government securities to such C. To draw foreign currencies and to permit foreign foreign and international accounts on the bases set forth in banks to draw dollars under the reciprocal currency paragraph 1(a) under agreements providing for the resale arrangements listed in paragraph 2 below, provided that by such accounts of those securities within 90 calendar drawings by either party to any such arrangement shall be days on terms comparable to those available on such fully liquidated within 12 months after any amount outtransactions in the market; and (b) for New York Bank standing at that time was first drawn, unless the Commitaccount, when appropriate, to undertake with dealers, sub- tee, because of exceptional circumstances, specifically ject to the conditions imposed on purchases and sales of authorizes a delay. securities in paragraph 1(b), repurchase agreements in U.S. D. To maintain an overall open position in all foreign Government and agency securities, and to arrange corre- currencies not exceeding $25.0 billion. For this purpose, sponding sale and repurchase agreements between its own the overall open position in all foreign currencies is defined account and foreign and international accounts maintained as the sum (disregarding signs) of net positions in indiat the Bank. Transactions undertaken with such accounts vidual currencies. The net position in a single foreign under the provisions of this paragraph may provide for a currency is defined as holdings of balances in that curservice fee when appropriate. rency, plus outstanding contracts for future receipt, minus 4. In the execution of the Committee's decision regard- outstanding contracts for future delivery of that currency, ing policy during any intermeeting period, the Committee i.e., as the sum of these elements with due regard to sign. authorizes and directs the Federal Reserve Bank of New 2. The Federal Open Market Committee directs the Fed- York, upon the instruction of the Chairman of the Commit- eral Reserve Bank of New York to maintain reciprocal tee, to adjust somewhat in exceptional circumstances the currency arrangements ("swap" arrangements) for the Sysdegree of pressure on reserve positions and hence the tem Open Market Account for periods up to a maximum of intended federal funds rate. Any such adjustment shall be 12 months with the following foreign banks, which are made in the context of the Committee's discussion and among those designated by the Board of Governors of the decision at its most recent meeting and the Committee's Federal Reserve System under Section 214.5 of Regulation long-run objectives for price stability and sustainable eco- N, Relations with Foreign Banks and Bankers, and with the nomic growth, and shall be based on economic, financial, approval of the Committee to renew such arrangements on and monetary developments during the intermeeting maturity: period. Consistent with Committee practice, the Chairman, if feasible, will consult with the Committee before making any adjustment. Amount of arrangement Foreign bank (millions of dollars equivalent) With Mr. Broaddus dissenting, the Authorization for Foreign Currency Operations and the Foreign 222,,,000000000 333,,,000000000 Currency Directive were reaffirmed in the forms shown below. Any changes in the terms of existing swap arrangements, and the proposed terms of any new arrangements that may AUTHORIZATION FOR FOREIGN CURRENCY be authorized, shall be referred for review and approval to OPERATIONS the Committee. 3. All transactions in foreign currencies undertaken un- 1. The Federal Open Market Committee authorizes and der paragraph 1A. above shall, unless otherwise expressly directs the Federal Reserve Bank of New York, for System authorized by the Committee, be at prevailing market rates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 331 For the purpose of providing an investment return on 9. All Federal Reserve Banks shall participate in the System holdings of foreign currencies, or for the purpose foreign currency operations for System Account in accorof adjusting interest rates paid or received in connection dance with paragraph 3 G(l) of the Board of Governors' with swap drawings, transactions with foreign central Statement of Procedure with Respect to Foreign Relationbanks may be undertaken at non-market exchange rates. ships of Federal Reserve Banks dated January 1, 1944. 4. It shall be the normal practice to arrange with foreign central banks for the coordination of foreign currency transactions. In making operating arrangements with foreign central banks on System holdings of foreign curren- FOREIGN CURRENCY DIRECTIVE cies, the Federal Reserve Bank of New York shall not commit itself to maintain any specific balance, unless 1. System operations in foreign currencies shall generauthorized by the Federal Open Market Committee. Any ally be directed at countering disorderly market conagreements or understandings concerning the administraditions, provided that market exchange rates for the U.S. tion of the accounts maintained by the Federal Reserve dollar reflect actions and behavior consistent with the Bank of New York with the foreign banks designated by IMF Article IV, Section 1. the Board of Governors under Section 214.5 of Regulation N shall be referred for review and approval to the 2. To achieve this end the System shall: Committee. A. Undertake spot and forward purchases and sales of foreign exchange. 5. Foreign currency holdings shall be invested to ensure B. Maintain reciprocal currency ("swap") arrangethat adequate liquidity is maintained to meet anticipated ments with selected foreign central banks. needs and so that each currency portfolio shall generally C. Cooperate in other respects with central banks have an average duration of no more than 18 months of other countries and with international monetary (calculated as Macaulay duration). When appropriate in institutions. connection with arrangements to provide investment 3. Transactions may also be undertaken: facilities for foreign currency holdings, U.S. Government A. To adjust System balances in light of probable securities may be purchased from foreign central banks future needs for currencies. under agreements for repurchase of such securities within B. To provide means for meeting System and Trea- 30 calendar days. sury commitments in particular currencies and to facilitate 6. All operations undertaken pursuant to the preceding operations of the Exchange Stabilization Fund. paragraphs shall be reported promptly to the Foreign Cur- C. For such other purposes as may be expressly rency Subcommittee and the Committee. The Foreign Curauthorized by the Committee. rency Subcommittee consists of the Chairman and Vice 4. System foreign currency operations shall be Chairman of the Committee, the Vice Chairman of the conducted: Board of Governors, and such other member of the Board A. In close and continuous consultation and cooperaas the Chairman may designate (or in the absence of tion with the United States Treasury; members of the Board serving on the Subcommittee, other B. In cooperation, as appropriate, with foreign mone- Board members designated by the Chairman as alternates, tary authorities; and and in the absence of the Vice Chairman of the Committee, C. In a manner consistent with the obligations his alternate). Meetings of the Subcommittee shall be of the United States in the International Monetary called at the request of any member, or at the request of the Fund regarding exchange arrangements under the IMF Manager, System Open Market Account ("Manager"), for Article IV. the purposes of reviewing recent or contemplated operations and of consulting with the Manager on other matters relating to his responsibilities. At the request of any mem- Mr. Broaddus dissented in the votes on the Authober of the Subcommittee, questions arising from such rization and the Directive because they provide the reviews and consultations shall be referred for determinafoundation for foreign exchange market intervention. tion to the Federal Open Market Committee. He continued to believe that the Federal Reserve's 7. The Chairman is authorized: participation in foreign exchange market intervention A. With the approval of the Committee, to enter into any needed agreement or understanding with the Secretary compromises its ability to conduct monetary policy of the Treasury about the division of responsibility for effectively. Because sterilized intervention cannot foreign currency operations between the System and the have sustained effects in the absence of conforming Treasury; monetary policy actions, Federal Reserve participa- B. To keep the Secretary of the Treasury fully advised tion in foreign exchange operations in his view risks concerning System foreign currency operations, and to consult with the Secretary on policy matters relating to one of two undesirable outcomes. First, the indepenforeign currency operations; dence of monetary policy is jeopardized if the System C. From time to time, to transmit appropriate reports adjusts its policy actions to support short-term forand information to the National Advisory Council on Inter- eign exchange objectives set by the U.S. Treasury. national Monetary and Financial Policies. Alternatively, the credibility of monetary policy is 8. Staff officers of the Committee are authorized damaged if the System does not follow interventions to transmit pertinent information on System foreign curwith compatible policy actions, the interventions conrency operations to appropriate officials of the Treasury Department. sequently fail to achieve their objectives, and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

332 Federal Reserve Bulletin • May 2000 System is associated in the mind of the public with distributed with the advice that, in accordance with the failed operations. procedures approved by the Committee, they were By unanimous vote, the Procedural Instructions being called to the Committee's attention before the with Respect to Foreign Currency Operations, in the February 1-2 organization meeting to give members form shown below, were reaffirmed. an opportunity to raise any questions they might have concerning them. Members were asked to indicate if they wished to have any of the instruments in question placed on the agenda for consideration at PROCEDURAL INSTRUCTIONS WITH this meeting. RESPECT TO FOREIGN CURRENCY The Rules of Procedure were placed on the agenda OPERATIONS and by unanimous vote the Committee approved updating changes, effective upon publication in the In conducting operations pursuant to the authorization and Federal Register. The changes relate to electronic and direction of the Federal Open Market Committee as set telephone communications. forth in the Authorization for Foreign Currency Operations and the Foreign Currency Directive, the Federal Reserve Bank of New York, through the Manager, System Open Secretary's note: The revised Rules of Procedure were Market Account ("Manager"), shall be guided by the published in the Federal Register on February 9, 2000. following procedural understandings with respect to consultations and clearances with the Committee, the Foreign Currency Subcommittee, and the Chairman of the Commit- By unanimous vote, the Program for Security of tee. All operations undertaken pursuant to such clearances FOMC Information was amended with regard to cershall be reported promptly to the Committee. tain security classifications and staff access to confi- 1. The Manager shall clear with the Subcommittee dential FOMC information. (or with the Chairman, if the Chairman believes that con- By unanimous vote, the minutes of the meeting of sultation with the Subcommittee is not feasible in the time the Federal Open Market Committee held on Decemavailable): A. Any operation that would result in a change in the ber 21, 1999, were approved. System's overall open position in foreign currencies The Manager of the System Open Market Account exceeding $300 million on any day or $600 million since reported on recent developments in foreign exchange the most recent regular meeting of the Committee. markets. There were no open market operations in B. Any operation that would result in a change on any day in the System's net position in a single foreign foreign currencies for the System's account in the currency exceeding $150 million, or $300 million when the period since the previous meeting, and thus no vote operation is associated with repayment of swap drawings. was required of the Committee. C. Any operation that might generate a substantial The Manager also reported on developments in volume of trading in a particular currency by the System, domestic financial markets and on System open mareven though the change in the System's net position in that currency might be less than the limits specified in l.B. ket transactions in government securities and federal D. Any swap drawing proposed by a foreign bank not agency obligations during the period December 21, exceeding the larger of (i) $200 million or (ii) 15 percent of 1999, to February 1, 2000. By unanimous vote, the the size of the swap arrangement. Committee ratified these transactions. 2. The Manager shall clear with the Committee (or with The Committee then turned to a discussion of the the Subcommittee, if the Subcommittee believes that consultation with the full Committee is not feasible in the time economic and financial outlook, the ranges for the available, or with the Chairman, if the Chairman believes growth of money and debt in 2000, and the implethat consultation with the Subcommittee is not feasible in mentation of monetary policy over the intermeeting the time available): period ahead. A. Any operation that would result in a change in the The information reviewed at this meeting sug- System's overall open position in foreign currencies exceeding $1.5 billion since the most recent regular meet- gested that economic activity had expanded rapidly ing of the Committee. in recent months. Consumer spending had remained B. Any swap drawing proposed by a foreign bank very brisk, business fixed investment had continued exceeding the larger of (i) $200 million or (ii) 15 percent of on a strong upward trend, and housing demand was the size of the swap arrangement. still at a relatively high level despite some slippage 3. The Manager shall also consult with the Subcommitrecently. The growth of domestic demand had been tee or the Chairman about proposed swap drawings by the System and about any operations that are not of a routine met in part through further advances in imports. character. Domestically, industrial production and nonfarm payrolls had continued to increase briskly. Despite very tight labor markets, labor costs had been climbing On January 19, 2000, the continuing rules, regulamore slowly than in 1998. Consumer price inflation tions, and other instructions of the Committee were Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 333 had stayed moderate over the past few months, November. Office construction appeared to be leveldespite a recent resurgence in energy prices. ing off in response to the higher cost of financing and Labor demand remained robust through year-end, to perceptions that the office space currently coming as nonfarm payroll employment posted a further large on line would be sufficient to meet demand. increase in December. Job growth in the services The book value of manufacturing and trade invenindustry was brisk, construction hiring rose some- tories surged in November after having climbed modwhat further against a backdrop of good weather and erately on balance earlier in the year. Even though the project backlogs, and manufacturing employment rise might have been related to concerns about supply was essentially unchanged. The civilian unemploy- disruptions around year-end, inventory-sales ratios ment rate held at 4.1 percent in December, its low generally declined a little in association with very for the year, and initial claims for unemployment strong increases in sales, and the ratios were at or insurance persisted at a very low level through late near the bottom of their ranges for the previous January. twelve months. Industrial production recorded a sharp advance in The U.S. trade deficit in goods and services widthe fourth quarter. Manufacturing and mining output ened significantly over the October-November period rose briskly, but utilities output was held down by from its average for the third quarter. The value of lackluster demand during a period of unseasonably exports rose appreciably over the two months, largely warm weather in several parts of the country. Output reflecting growth in industrial supplies and service gains in manufacturing were widespread and the fac- receipts, but the value of imports increased noticetory operating rate rose further, though capacity utili- ably more, with some of the rise reflecting increases zation was still a little below its long-term average. in import prices. The available information suggested Consumer spending apparently was very robust in that economic expansion remained robust in most the fourth quarter. Total nominal retail sales rose foreign industrial nations. In Japan, however, ecosharply further in December, with outlets for durable nomic activity was sluggish, with a seemingly small and nondurable goods recording substantial gains in rise in the fourth quarter following a third-quarter sales. Expenditures related to Y2K concerns appeared decline. Economic activity in the developing counto have been relatively limited. Outlays for services tries apparently continued to pick up in recent in October and November (latest data) were strong, months, although the pace of recovery varied widely. even though spending for heating was down in Economic growth appeared to have been brisk in response to the unseasonably warm weather. Mexico, Korea, China, Hong Kong, and Taiwan but Housing activity was still at a relatively high level was mixed among the ASEAN countries and slower at year-end, buoyed by continuing strong gains in in Brazil. jobs and incomes despite the rise that had occurred in Price inflation had remained moderate in recent mortgage interest rates. Total private housing starts months. Consumer price inflation was subdued in rebounded sharply in December from a decline in December in spite of a sizable increase in energy November, although part of the December pickup prices; however, for the year as a whole, sharp might have been associated with favorable weather increases in energy prices noticeably boosted overall patterns. Sales of new homes fell in November (latest consumer inflation. Excluding the volatile energy data), reversing much of the sizable October rise, but component, consumer price inflation slowed someaverage sales for the two-month period were only what in 1999. By contrast, the subdued rise in the slightly below their strong rate of the first half of the core PCE chain price index in 1999 was essentially year. Sales of existing homes were down in Decem- the same as in 1998. At the producer level, prices of ber, but they also were only a little below their finished goods other than food and energy changed elevated first-half pace. little in December and registered a considerably The available information suggested that growth of reduced increase in 1999. At earlier stages of processbusiness spending for durable equipment slowed ing, however, core producer prices recorded someabruptly in the fourth quarter and that investment in what larger advances than those for finished goods nonresidential structures fell further. At least some of in December and for the year. With regard to labor the deceleration in spending for capital equipment costs, average hourly earnings rose by a larger reflected a hesitancy to spend on computers and other amount in December than in November, but the high-tech equipment just in advance of the century increase in this measure in 1999 was about the same rollover. The weakness in the nonresidential sector as for 1998. was evidenced by further declines in construction At its meeting on December 21, the Committee outlays and new building contracts in October and adopted a directive that called for maintaining condi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

334 Federal Reserve Bulletin • May 2000 tions in reserve markets consistent with an unchanged somewhat above the Committee's annual ranges for federal funds rate of about 5'/z percent and that did 1999. Total domestic nonfinancial debt expanded in not contain any bias relating to the direction of pos- 1999 at a pace in the upper portion of its range. sible adjustments to policy during the intermeeting The staff forecast prepared for this meeting sugperiod. The members noted that such a directive, gested that the expansion would gradually moderate which suggested that they did not expect a further from its currently elevated pace to a rate around or change in policy before the February meeting, should perhaps a little below the growth of the economy's foster steady conditions in financial markets during estimated potential. The expansion of domestic final the sensitive century-date-change period. The Com- demand increasingly would be held back by the mittee also agreed, however, that the statement anticipated waning of positive wealth effects associaccompanying the announcement of its decision ated with earlier large gains in equity prices and by would note that the Committee was especially con- higher interest rates. As a result, growth of spending cerned about the potential for inflation pressures to on consumer durables and houses was expected to increase and would want to consider at its February slow; in contrast, however, overall business investmeeting whether policy action would be needed to ment in equipment and software was projected to contain such pressures. strengthen in response to the upward trend in replace- Open market operations during the intermeeting ment demand, especially for computers and software; period were directed toward maintaining the federal also, continued solid economic growth abroad was funds rate at around 516 percent. The funds rate expected to boost the growth of U.S. exports for some averaged close to the Committee's target over the period ahead. Core price inflation was projected to intermeeting interval despite very strong demands for rise somewhat over the forecast horizon, partly as a additional currency and market liquidity through the result of higher import prices and some firming of year-end and a rapid unwinding thereafter. Against gains in nominal labor compensation in persistently the background of the Committee's announced con- tight labor markets that would not be fully offset by cern about the inflationary implications of unsustain- productivity growth. ably rapid economic growth, incoming information In the Committee's review of current and prospecsuggesting that aggregate demand retained consider- tive economic developments, members commented able momentum led to upward pressure on market that the economy still seemed to be growing very interest rates once the century-date-change period vigorously as it entered the new year, while core had passed without incident. The effects of higher inflation remained subdued. The members were coninterest rates apparently offset those of unexpectedly cerned, however, that recent trends in economic high corporate earnings, and most broad stock market activity, if they continued, might undermine the indexes fell slightly on balance over the intermeeting economy's remarkable performance. The economy's period. potential to produce goods and services had been In foreign exchange markets, the trade-weighted accelerating over time, but the demand for output had value of the dollar was up on balance over the inter- been growing even more strongly. If this imbalance meeting interval in relation to indexes of major for- continued, inflationary pressures were likely to build eign currencies and those of other important U.S. that would interfere with the economy's performance trading partners. Reflecting market expectations of and could lead to a disruptive adjustment in ecosubstantial Federal Reserve tightening, the dollar nomic activity. Accelerating productivity, although appreciated considerably against the yen and the euro adding to the growth of the economy's potential while depreciating somewhat against the Canadian output, also had induced expectations of rapidly dollar. accelerating business earnings that in turn had gener- M2 growth picked up appreciably during Decem- ated sharp increases in stock market wealth and lifted ber and January, evidently reflecting extra demands the growth of purchasing power and spending above for liquidity and safety during the century-date- that in incomes. Relatively high real interest rates change period. M3 accelerated by even more than that reflected the increased productivity and damped M2 in December. Its non-M2 component ballooned the rise in asset values would be needed to help as banks issued substantial volumes of large time restore balance. In that regard, members questioned deposits to meet very high credit demands and as whether rates would be high enough without policy institutional money market funds became recipients tightening to bring the growth of demand in line with of some of their customers' precautionary liquid bal- that of supply and contain pressures in labor markets. ances. From the fourth quarter of 1998 through the In the view of some members, taut labor markets fourth quarter of 1999, M2 and M3 increased at rates together with a turnaround in some of the factors that Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 335 had been temporarily damping inflation, such as oil ing for equipment and software over the year ahead. and import prices, already lent an upward bias to the While the huge amount of capital deepening already inflation outlook, and all agreed that a significant accomplished in recent years and the projected decelfurther tightening of labor resource utilization would eration in aggregate demand were negative factors in appreciably raise the risk of deterioration in the the outlook for business capital spending, they were underlying inflation picture over time. likely to be overridden by persisting declines in the In keeping with the practice at meetings preceding prices of high-tech equipment and the rising importhe Federal Reserve's semiannual report to Congress tance of replacement demand that was associated on the economy and monetary policy and the Chair- with relatively short-lived investments in high-tech man's associated testimony, the members of the equipment and computer software that had tended to Committee and the Federal Reserve Bank presidents characterize the buildup in business equipment in not currently serving as members had prepared indi- recent years. With regard to other types of investvidual projections of the growth in nominal and real ment, spending on nonresidential business structures GDP, the rate of unemployment, and the rate of appeared to be softening in many areas and would inflation for the year 2000. The forecasts of the tend to hold down the growth in overall business growth of nominal GDP were concentrated in a range expenditures for capital. However, spending by state of 5lA to 5V2 percent, and for the rate of expansion and local governments on roadbuilding and other in real GDP they had a central tendency of V-h to projects appeared to be on a robust uptrend. 33A percent. Growth at these rates was expected to Housing construction was expected to remain at a hold the civilian unemployment rate in a range of relatively elevated level, albeit below recent peaks, as 4 to AlA percent in the fourth quarter of 2000. The a consequence of moderating demand stemming from central tendency of the projections of inflation for higher mortgage interest rates and indications of 2000—as measured by the chain price index for overbuilding in some areas. Members also noted, personal consumption expenditures—encompassed a however, that building activity in some parts of the range of \3A to 2 percent, on the low side of the country was still being held back by shortages of 2 percent rise in this index experienced in 1999 when skilled construction workers and scarcities of some energy prices had surged. building supplies. The resulting backlogs along with Mirroring developments in the overall economy, low inventories of houses in some areas were factors reports of economic conditions in the individual Fed- that should limit the expected decline in residential eral Reserve districts continued to display broad- construction this year. Moreover, many homebuyers based strength, apart from softness in construction were shifting from fixed-rate long-term mortgages to activity in some areas and weakness in agriculture. currently lower-cost adjustable rate mortgages. More Retail sales appeared to have strengthened further fundamentally, however, the income and wealth during the opening weeks of the new year after a effects that were boosting household expenditures surge during the holiday season. Motor vehicle sales generally should help to sustain a perhaps somewhat in particular had continued to hold up at a remarkably diminished but still high level of homebuilding activhigh level. Consumption was being supported by ity for a while, despite higher mortgage financing robust growth in jobs and incomes, very high levels costs. of consumer confidence, and the lagged wealth Rapid increases in U.S. exports in conjunction with effects from earlier advances in stock market prices. the strengthening of foreign economies were likely to Even so, growth in consumer spending was thought add to demands on domestic producers. Consistent likely to moderate over time to a pace more in line with this outlook, several members cited anecdotal with the expansion in consumer incomes, unless the reports of improving foreign markets, notably in East stock market posted large further increases from cur- Asian countries. At the same time, despite some rent levels. As the experience of recent years had expected deceleration in imports as domestic demand amply demonstrated, however, the future course of moderated, the nation's trade deficit was projected to stock market prices was highly uncertain, and equity increase somewhat further over the year ahead. There markets had shown a remarkable resilience to higher was a risk that, as global portfolios came to be interest rates as earning prospects continued to be increasingly weighted toward dollar assets, expected marked up in association with the acceleration in returns on those assets would need to rise to attract productivity. world savings, with much of the adjustment poten- Opportunities to enhance profits by using new tech- tially occurring through a decline in the exchange nology were likely to lead to robust further growth in rate of the dollar that would add to pressures on business fixed investment, boosted mainly by spend- U.S. prices. 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336 Federal Reserve Bulletin • May 2000 Concerning the outlook for inflation, the members M3, and 3 to 7 percent for total domestic nonfinancial continued to see the risks as primarily tilted toward debt. rising inflationary pressures, though they anticipated All but one of the members favored the adoption of that further gains in productivity would hold down the ranges that had been selected on a tentative basis increases in unit labor costs and prices, at least over at the meeting in June. They noted that for some the nearer term. A key issue was whether growth in years the ranges for monetary growth had been choaggregate demand would moderate sufficiently to at sen to encompass rates of increase that would be least avoid greater pressures on what were already expected under conditions of price stability, assuming very tight labor markets. In this regard, several cited historical velocity relationships. This approach had recent statistical and anecdotal evidence of larger been adopted partly as a result of the substantial increases in labor compensation, although unit labor unreliability of the linkage between the growth of the costs did not appear to be trending higher at this broad monetary aggregates and economic perforpoint. However, some nonlabor input prices already mance. Since the current benchmark ranges had first were rising faster. The prospects for energy prices been adopted in the mid-1990s, however, structural were very difficult to predict, but even if such prices productivity growth had increased substantially, raiswere to stabilize, the passthrough of the large earlier ing the expected rate of growth of money at price increases into inflation and wage expectations, as stability, other things equal. One member supported well as into the prices of products that were heavily a proposal to adjust the monetary growth ranges energy dependent, was likely to exert some upward upward by at least enough to reflect this developpressure on prices throughout the economy. ment. However, other members emphasized the On the positive side for the near-term inflation uncertainties about the dimensions of this new trend outlook, there was no evidence that the acceleration in productivity growth, the measured rate of increase in productivity was coming to an end. Members in prices that would be consistent with reasonable commented in this regard that business firms across price stability, and the long-run behavior of velocity. the country were continuing to improve the efficiency They felt that raising the benchmark ranges risked of their operations in a variety of ways in order to misleading the public about the Committee's confihold down costs. These efforts included persistingly dence in the implied values for these variables going large investments in new equipment, rationalization forward, about the Committee's determination to purof business organizations, and training or retraining sue its fundamental objectives of price stability and existing workers for more demanding or new tasks. sustainable economic expansion, and about the very Members also noted that longer-run inflation expecta- low weight most Committee members continued to tions generally did not appear to be worsening, place on the monetary aggregates in policy deliberathough there had been a slight widening of the spread tions owing to the uncertainties surrounding them. between nominal and inflation-indexed Treasury At the conclusion of this discussion, the Commitbond yields. While there seemed to be an increasing tee voted to approve without change the ranges for number of exceptions, business contacts continued to 2000 that it had established on a tentative basis on report that raising their prices was very difficult to June 30, 1999. With Mr. Meyer dissenting, the folcarry out successfully and often impossible. On bal- lowing statement of longer-run policy and growth ance, the outlook for inflation remained subject to a ranges for 2000 was approved for inclusion in the marked degree of uncertainty. Given current levels of domestic policy directive: resource use and the strength of the economic expansion relative to the growth of the economy's long-run The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and potential, however, the members expected that inflapromote sustainable growth in output. In furtherance of tion pressures would gather some momentum over these objectives, the Committee at this meeting established time unless financial conditions became tighter. ranges for growth of M2 and M3 of 1 to 5 percent and 2 to In keeping with the requirements of the Full 6 percent respectively, measured from the fourth quarter of 1999 to the fourth quarter of 2000. The range for growth of Employment and Balanced Growth Act of 1978 total domestic nonfinancial debt was set at 3 to 7 percent (the Humphrey-Hawkins Act), the Committee for the year. The behavior of the monetary aggregates will reviewed at this meeting the ranges for growth of the continue to be evaluated in the light of movements in their monetary and debt ranges that it had established on a velocities and developments in prices, the economy, and tentative basis in June 1999. The tentative ranges financial markets. approved in June for the period from the fourth Votes for this action: Messrs. Greenspan, McDonough, quarter of 1999 to the fourth quarter of 2000 included Broaddus, Ferguson, Gramlich, Guynn, Jordan, Kelley, growth of 1 to 5 percent for M2, 2 to 6 percent for and Parry. Vote against this action: Mr. Meyer. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 337 In dissenting, Mr. Meyer noted that although the situation. A few members expressed a preference for money growth ranges do not play an important role in an increase of 50 basis points in the federal funds rate the conduct of monetary policy today, the Congress in order to provide greater assurance against a has mandated that the FOMC set and report ranges buildup of inflationary expectations and inflation over for money and credit growth. In recent years, the coming months. Other members acknowledged that money ranges have been set to be consistent with the Committee might need to move more aggresprice stability and normal velocity behavior. The rate sively at a later meeting should imbalances continue of money growth consistent with price stability to build and inflation and inflation expectations depends on the average growth of real GDP. There- clearly begin to pick up. fore, when there is a significant increase in the pro- The members agreed that the statement to be issued jected average growth rate in real GDP, money after this meeting should highlight their view that growth ranges should be adjusted upward so that they even after their firming today the risks remained remain consistent with price stability. While consider- weighted mainly in the direction of rising inflation able uncertainty remains about the average rate of pressures. There were few signs thus far that the rise growth in real GDP, there is a strong consensus that it in interest rates over recent quarters was restraining is significantly higher today than when the target demand in line with potential supply, and the memranges were set at their current values. The failure to bers generally agreed that further tightening actions adjust monetary aggregate ranges makes them less might well be needed to ensure that financial condiuseful signals of Federal Reserve intentions. As long tions had adjusted sufficiently to rising productivity as the Federal Reserve is required to set and report growth to forestall escalating pressures on labor costs ranges for money and debt growth, it should update and prices. With the cushion of unutilized labor them as appropriate. resources having dwindled over recent years and In the Committee's discussion of policy for the with the willingness of global investors to continue upcoming intermeeting period, all the members sup- to acquire dollar assets to finance major further ported a proposal to tighten reserve conditions by a increases in imports at current interest and exchange modest amount consistent with an increase in the rates in question, the need to achieve the appropriate federal funds rate of VA percentage point to a level of financial and economic balance had become more 53A percent. The Committee's decision to tighten its pressing. In the circumstances, it was important for policy stance was intended to help bring the growth the public to understand that the Committee saw of aggregate demand into better alignment with the inflation risks as persisting even after today's action. expansion of sustainable aggregate supply in an effort At the conclusion of this discussion, members who to avert rising inflationary pressures in the economy. favored a 50 basis point increase indicated that, in Relatively high real interest rates would be required light of the clear intention of the Committee to act, if to accomplish this objective, given the effects of necessary, in a timely manner to contain inflation, the increasing productivity and profits on the demand for contemplated inclusion of a statement about the risks capital goods and, through the wealth effect, on con- of higher inflation in the press release for this meetsumption spending. Private long-term rates already ing, and the likelihood that the Board of Governors had risen considerably, but whether they had reached would approve a 25 basis point increase in the disa level that would lead to a rebalancing of demand count rate later in the day, they could accept a and supply was an open question. Moreover, these 25 basis point rise in the federal funds rate. rates already encompassed expectations of a tighten- At the conclusion of this discussion, the Commiting of monetary policy at this and several subsequent tee voted to authorize and direct the Federal Reserve meetings. For a number of reasons, including uncer- Bank of New York, until it was instructed otherwise, tainties about the outlook for the expansion of aggre- to execute transactions in the System Account in gate demand in relation to that of potential supply, accordance with the following policy directive: the economy's response to the Committee's earlier To further the Committee's long-run objectives of price policy actions, and the recently somewhat unsettled stability and sustainable economic growth, the Committee conditions in financial markets, a majority of the in the immediate future seeks conditions in reserve markets members expressed a preference for a limited policy consistent with increasing the federal funds rate to an move at this time. As long as inflation and inflation average of around 5 3A percent. expectations remained damped, these members saw The vote also encompassed approval of the sentence little risk in a gradual approach to policy tightening below for inclusion in the press statement to be released shortly after the meeting: and considerable advantage to preserving the possi- Against the background of its long-run goals of price bility of calibrating those actions to the emerging stability and sustainable economic growth and of the infor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

338 Federal Reserve Bulletin • May 2000 mation currently available, the Committee believes the The members noted with deep regret the recent risks are weighted mainly toward conditions that may death of Frank E. Morris, former president of the generate heightened inflation pressures in the foreseeable Federal Reserve Bank of Boston and a member of the future. Committee over the course of twenty years before his Votes for this action: Messrs. Greenspan, McDonough, retirement at the end of 1988. Mr. Morris is remem- Broaddus, Ferguson, Gramlich, Guynn, Jordan, Kelley, bered as a highly respected colleague and friend who Meyer, and Parry. Votes against this action: None. made outstanding contributions to the work of the Committee, the Federal Reserve Bank of Boston, and The meeting was recessed briefly after this vote, the Federal Reserve System more generally. and the members of the Board of Governors left the It was agreed that the next meeting of the Commitroom to vote on pending increases in the discount tee would be held on Tuesday, March 21, 2000. rate at several Federal Reserve Banks. On the Board The meeting adjourned at 11:50 a.m. on Februmembers' return, Chairman Greenspan announced ary 2, 2000. that the Board had approved a 'A percentage point increase in the discount rate. The Committee con- Donald L. Kohn cluded its meeting with a review of the press release Secretary announcing the joint policy action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

339 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A Effective March 24, 2000, 12 C.F.R. Part 226 is amended as follows: The Board of Governors is amending 12 C.F.R. Part 201, its Regulation A (Extensions of Credit by Federal Reserve Part 226—Truth in Lending (Regulation Z) Banks), to reflect its approval of an increase in the basic discount rate at each Federal Reserve Bank. The Board 1. The authority citation for Part 226 continues to read as acted on requests submitted by the Boards of Directors of follows: the twelve Federal Reserve Banks. Effective March 21, 2000, 12 C.F.R. Part 201 is amended as follows: Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). Part 201—Extensions of Credit by Federal Reserve Subpart B—Open-End Credit Banks (Regulation A) 2. Section 226.5a(a)(3) is revised to read as follows: 1. The authority citation for 12 C.F.R. Part 201 continues to read as follows: Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, 348 et seq., 357, 374, 374a and 461. Section 226.5a—Credit and charge card applications and solicitations 2. Section 201.51 is revised to read as follows: (a) (3) Exceptions. This section does not apply to home- Section 201.51—Adjustments credit for depository equity plans accessible by a credit or charge card institutions that are of the type subject to the requirements of section 226.5b; overdraft lines of credit tied to The rates for adjustment credit provided to depository asset accounts accessed by check-guarantee cards institutions under section 201.3(a) are: or by debit cards; or lines of credit accessed by check-guarantee cards or by debit cards that can be Federal Reserve Bank Rate Effective used only at automated teller machines. Boston 5.5 March 21, 2000 New York 5.5 March 21, 2000 Philadelphia 5.5 March 21, 2000 3. In section 226.12, paragraph (g) is revised to read as Cleveland 5.5 March 21, 2000 follows: Richmond 5.5 March 21, 2000 Atlanta 5.5 March 21, 2000 Chicago 5.5 March 21, 2000 St. Louis 5.5 March 22, 2000 Minneapolis 5.5 March 21, 2000 Section 226.12—Special credit card provisions Kansas City 5.5 March 21, 2000 Dallas 5.5 March 23, 2000 San Francisco 5.5 March 21, 2000 (g) Relation to Electronic Fund Transfer Act and Regulation E. For guidance on whether Regulation Z (12 C.F.R. Part 226) or Regulation E (12 C.F.R. Part 205) FINAL RULE—AMENDMENT TO REGULATION Z applies in instances involving both credit and electronic fund transfer aspects, refer to Regulation E, The Board of Governors is amending 12 C.F.R. Part 226, 12 C.F.R. 205.12(a) regarding issuance and liability for its Regulation Z (Truth in Lending), to reflect revisions unauthorized use. On matters other than issuance and addressing short-term cash advances commonly called liability, this section applies to the credit aspects of "payday loans." The Board is also publishing technical combined credit/electronic fund transfer transactions, corrections to the commentary and regulation. as applicable. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

340 Federal Reserve Bulletin • May 2000 4. In Supplement I to Part 226: the consumer's deposit account, and where the parties a. Under Section 226.2-Definitions and Rules of Con- agree either that the check will not be cashed or deposstruction, under 2(a)(14) Credit., paragraph 2. is ited, or that the consumer's deposit account will not be added. debited, until a designated future date. This type of b. Under Section 226.13-Billing Error Resolution, un- transaction is often referred to as a "payday loan" or der 13(i) Relation to Electronic Fund Transfer Act "payday advance" or "deferred presentment loan." A and Regulation E„ paragraph 3. is revised. fee charged in connection with such a transaction may c. Under Section 226.19-Certain Residential Mort- be a finance charge for purposes of section 226.4, regage and Variable-Rate Transactions, under 19(b) gardless of how the fee is characterized under state law. Certain variable-rate transactions, paragraph 5. is Where the fee charged constitutes a finance charge revised. under section 226.4 and the person advancing funds d. Under Section 226.19-Certain Residential Mort- regularly extends consumer credit, that person is a credgage and Variable-Rate Transactions, under Para- itor and is required to provide disclosures consistent graph 19(b)(2), paragraph 4. is amended by remov- with the requirements of Regulation Z. See section ing "section 226.19(b)(2)(xi)" and adding "section 226.2(a)(17). 226.19(b)(2)(x)" in its place. e. Under Section 226.19-Certain Residential Mortgage and Variable-Rate Transactions, under Paragraph Subpart B—Open-End Credit 19(b)(2)(vi), paragraph 1. is amended by removing "comments 19(b)(2)(viii)-7 and 19(b)(2)(x)-4" and >}: % ^ adding "comments 19(b)(2)(viii)(A)-7 and 19(b)(2)(viii)(B)-4" in its place. Section 226.13—Billing Error Resolution f. Under Section 226.19-Certain Residential Mortgage and Variable-Rate Transactions, under Paragraph 13(i) Relation to Electronic Fund Transfer Act and 19(b)(2)(vii), paragraph 1. is amended by removing Regulation E "comments 19(b)(2)(viii)-6 and 19(b)(2)(x)-3" and adding "comments 19(b)(2)(viii)(A)-6 and 19(b)(2)(viii)(B)-3" in its place. 3. Application to debit/credit transactions-examples. If a g. Under Section 226.32-Requirements for Certain consumer withdraws money at an automated teller ma- Closed-End Home Mortgages, under Paragraph chine and activates an overdraft credit feature on the 32(a)(l)(ii), the second sentence of paragraph 2. is checking account: revised and paragraph 2.v. is added; and i. An error asserted with respect to the transaction is h. Under Section 226.32-Requirements for Certain subject, for error resolution purposes, to the applica- Closed-End Home Mortgages, under Paragraph ble Regulation E provisions (such as timing and 32(c)(4), paragraph 1. is amended by removing notice) for the entire transaction. "section 226.19(b)(2)(x)" and adding "section ii. The creditor need not provisionally credit the con- 226.19(b)(2)(viii)(B)" in its place. sumer's account, under section 205.1 l(c)(2)(i) of Regulation E, for any portion of the unpaid exten- Supplement I to Part 226—Official Staff sion of credit. Interpretations iii. The creditor must credit the consumer's account under section 205.11(c) with any finance or other charges incurred as a result of the alleged error. iv. The provisions of section 226.13(d) and (g) apply Subpart A—General only to the credit portion of the transaction. Section 226.2—Definitions and Rules of Subpart C—Closed-End Credit Construction Section 226.19—Certain Residential Mortgage and 2(a) Definitions Variable-Rate Transactions 2(a)(14) Credit 19(b) Certain variable-rate transactions 2. Payday loans; deferred presentment. Credit includes a 5. Examples of variable-rate transactions. transaction in which a cash advance is made to a con- i. The following transactions, if they have a term sumer in exchange for the consumer's personal check, greater than one year and are secured by the consumor in exchange for the consumer's authorization to debit er's principal dwelling, constitute variable-rate trans- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 341 actions subject to the disclosure requirements of section 226.19(b). v. For 2000, $451, reflecting a 2.3 percent increase in A. Renewable balloon-payment instruments where the CPI-U from June 1998 to June 1999, rounded to the creditor is both unconditionally obligated to the nearest whole dollar. renew the balloon-payment loan at the consumer's option (or is obligated to renew subject to conditions within the consumer's control) and ORDERS ISSUED UNDER BANK HOLDING COMPANY has the option of increasing the interest rate at ACT the time of renewal. (See comment 17(c)(l)-l 1 for a discussion of conditions within a consum- Orders Issued Under Section 4 of the Bank Holding er's control in connection with renewable Company Act balloon-payment loans.) B. Preferred-rate loans where the terms of the legal Wells Fargo & Company obligation provide that the initial underlying San Francisco, California rate is fixed but will increase upon the occurrence of some event, such as an employee leav- Order Approving Notice to Engage in Nonbanking ing the employ of the creditor, and the note Activities reflects the preferred rate. The disclosures under sections 226.19(b)(1) and 226.19(b)(2)(v), Wells Fargo & Company ("Wells Fargo"), a bank holding (viii), (ix), and (xii) are not applicable to such company within the meaning of the Bank Holding Comloans. pany Act ("BHC Act"), has requested the Board's ap- C. "Price-level-adjusted mortgages" or other in- proval under section 4(c)(8) of the BHC Act (12 U.S.C. dexed mortgages that have a fixed rate of inter- § 1843(c)(8)) and section 225.24 of the Board's Regulaest but provide for periodic adjustments to pay- tion Y (12 C.F.R. 225.24) to acquire all the outstanding ments and the loan balance to reflect changes in voting shares of Ragen MacKenzie Group Incorporated an index measuring prices or inflation. The dis- ("Ragen MacKenzie"), and thereby acquire control of its closures under section 226.19(b)(1) are not ap- subsidiaries, Ragen MacKenzie Incorporated ("Compaplicable to such loans, nor are the following ny") and Ragen MacKenzie Investment Services, Inc., all provisions to the extent they relate to the deter- in Seattle, Washington. Wells Fargo would thereby engage mination of the interest rate by the addition of a in the following nonbanking activities: margin, changes in the interest rate, or interest- (1) Providing financial and investment advisory serrate discounts: Section 226.19(b)(2)(i), (iii), vices, in accordance with section 225.28(b)(6) of (iv), (v), (vi), (vii), (viii), and (ix). {See com- Regulation Y (12 C.F.R. 225.28(b)(6)); ments 20(c)-2 and 30-1 regarding the inapplica- (2) Providing securities brokerage, riskless principal, bility of variable-rate adjustment notices and private placement, and other agency transactional interest-rate limitations to price-level-adjusted services, in accordance with section or similar mortgages.) 225.28(b)(7)(i), (ii), (iii), and (v) of Regulation Y ii. Graduated-payment mortgages and step-rate transac- (12 C.F.R. 225.28(b)(7)(i), (ii), (iii), and (v)); tions without a variable-rate feature are not considered (3) Underwriting and dealing in government obligavariable-rate transactions. tions and money market instruments in which state member banks may underwrite and deal under 12 U.S.C. §§ 335 and 24(7) ("bank-eligible securities"), and engaging in investing and trading activ- Subpart E—Special Rules for Certain Home ities, in accordance with section 225.28(b)(8)(i) and Mortgage Transactions (ii) of Regulation Y (12 CF.R. 225.28(b)(8)(i) and (ii)); and (4) Underwriting and dealing in, to a limited extent, all Section 226.32—Requirements for Certain types of debt and equity securities other than inter- Closed-End Home Mortgages ests in open-end investment companies ("bankineligible securities"). 32(a) Coverage Notice of the proposal, affording interested persons an Paragraph 32(a)(l)(ii) opportunity to submit comments, has been published (65 Federal Register 3963 (2000)). The time for filing comments has expired, and the Board has considered the notice 2. Annual adjustment of $400 amount. * * * The $400 and all comments received in light of the factors set forth figure is adjusted annually on January 1 by the annual in section 4(c)(8) of the BHC Act. percentage change in the CPI that was in effect on the Wells Fargo, with total consolidated assets of approxipreceding June l. * * * mately $207 billion, is the seventh largest banking organi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

342 Federal Reserve Bulletin • May 2000 zation in the United States.1 Wells Fargo operates subsid- provided that the company engaged in the activity derives iary banks with branches in numerous western and no more than 25 percent of its gross revenues from undermidwestern states, and engages through other subsidiaries writing and dealing in bank-ineligible securities.5 Wells in a broad range of permissible nonbanking activities. Fargo has committed that Company will conduct its under- Ragen MacKenzie, with total consolidated assets of writing and dealing activities using the methods and proce- $649 million, engages directly and indirectly in a broad dures and subject to the prudential limitations established range of securities underwriting and dealing, securities by the Board in the Section 20 Orders. Wells Fargo also brokerage, investment advisory, and other activities.2 Com- has committed that Company will conduct its bankpany is, and after consummation of the proposal will ineligible securities underwriting and dealing activities continue to be, registered as a broker-dealer with the Secu- subject to the Board's revenue restriction.6 As a condition rities and Exchange Commission ("SEC") under the Secu- of this order, Wells Fargo is required to conduct the bankrities Exchange Act of 1934 (15 U.S.C. § 78a et seq.) and a ineligible securities activities of Company subject to the member of the National Association of Securities Dealers, revenue restrictions and Operating Standards established Inc. ("NASD"). Accordingly, Company is, and will con- for section 20 subsidiaries ("Operating Standards").7 tinue to be, subject to the record-keeping and reporting obligations, fiduciary standards, and other requirements of Other Activities Approved by Regulation or Order the Securities Exchange Act of 1934, the SEC, and the NASD. The Board previously determined that financial and invest- Wells Fargo, through its existing section 20 subsidiary, ment advisory activities; securities brokerage, riskless prin- Norwest Investment Services, Inc., Minneapolis, Minne- cipal, private placement, and other agency transactional sota ("NISI"), currently underwrites and deals in, to a activities; bank-eligible securities underwriting and deallimited extent, certain types of bank-ineligible debt securi- ing; and investing and trading activities are closely related ties and engages in other permissible nonbanking activi- to banking within the meaning of section 4(c)(8) of the ties.3 Wells Fargo does not propose to merge NISI with BHC Act.8 Wells Fargo has committed that it will conduct Company at this time. these activities in accordance with the limitations set forth in Regulation Y and the Board's orders and interpretations Underwriting and Dealing in Bank-Ineligible Securities relating to each of the activities. The Board previously determined that, subject to the framework of prudential limitations established in previous decisions to address the potential for conflicts of interests, unsound banking practices, or other adverse effects, underwriting and dealing in bank-ineligible securities is so closely related to banking as to be a proper incident thereto 5. Compliance with the revenue limitation shall be calculated in within the meaning of section 4(c)(8) of the BHC Act.4 accordance with the method stated in the Section 20 Orders, as modified by the Order Approving Modifications to the Section 20 The Board also previously determined that underwriting Orders, 75 Federal Reserve Bulletin 751 (1989); 10 Percent Revenue and dealing in bank-ineligible securities are consistent with Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding section 20 of the Glass-Steagall Act (12 U.S.C. § 377), Companies Engaged in Underwriting and Dealing in Securities, 61 Federal Register 48,953 (1996); and Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies Engaged in Underwriting and Dealing in Securities, 61 Federal Register 68,750 1. Asset and ranking data are as of September 30, 1999. (1996) (collectively, "Modification Orders"). In light of the fact that 2. Ragen MacKenzie currently holds certain investments in securi- Wells Fargo proposes to acquire Company as a going concern, the ties that may exceed the levels permissible for bank holding compa- Board concludes that allowing Company to calculate compliance with nies. Wells Fargo has committed to conform, within two years of the revenue limitation on an annualized basis during the first year after consummation of the proposal, all investments held by Ragen Mac- consummation, and thereafter on a rolling quarterly average basis, Kenzie and its subsidiaries to the requirements of section 4 of the would be consistent with the Section 20 Orders. See U.S. Bancorp, 84 BHC Act and the Board's regulations and interpretations thereunder. Federal Reserve Bulletin 483 (1998); Dauphin Deposit Corporation, 3. See Norwest Corporation, 84 Federal Reserve Bulletin 552 11 Federal Reserve Bulletin 672 (1991). (1998). 6. As noted above, Wells Fargo intends to operate Company and 4. See J.P. Morgan & Co. Inc., et al., 75 Federal Reserve Bulletin NISI as separate corporate entities. Company and NISI will be inde- 192 (1989), aff'd sub nom. Securities Industry Ass'n v. Board of pendently subject to the 25-percent revenue limitation on underwrit- Governors of the Federal Reserve System, 900 F.2d 360 (D.C. Cir. ing and dealing in bank-ineligible securities. See Citicorp, 73 Federal 1990); Citicorp, 73 Federal Reserve Bulletin 473 (1987), aff'd sub Reserve Bulletin 473, 486 n.45 (1987), aff'd sub nom. Securities nom. Securities Industry Ass 'n v. Board of Governors of the Federal Industry Ass 'n v. Board of Governors of the Federal Reserve System, Reserve System, 839 F.2d 47 (2d Cir.), cert, denied, 486 U.S. 1059 839 F.2d 47 (2d Cir.), cert, denied, 486 U.S. 1059 (1988). (1988), as modified by Review of Restrictions on Director, Officer and 7. 12 C.F.R. 225.200. Company may provide services that are Employee Interlocks, Cross-Marketing Activities, and the Purchase necessary incidents to the proposed underwriting and dealing activiand Sale of Financial Assets Between a Section 20 Subsidiary and an ties. Unless Company receives specific approval under section 4(c)(8) Affiliated Bank or Thrift, 61 Federal Register 57,679 (1996); Amend- of the BHC Act to conduct the incidental activities independently, any ments to Restrictions in the Board's Section 20 Orders, 62 Federal revenues from such activities must be treated as ineligible revenues Register 45,295 (1997); and Clarification to the Board's Section 20 subject to the Board's revenue limitation. Orders, 63 Federal Register 14,803 (1998) (collectively, "Section 20 8. See 12 C.F.R. 225.28(b)(6), (7)(i), (ii), (iii), and (v), and (8)(i) Orders"). and (ii). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 343 Other Considerations indicated that consummation of the proposal would expand the range of products and services available to its custom- In order to approve this notice, the Board also must deter- ers and those of Ragen MacKenzie. Wells Fargo also has mine that performance of the proposed activities is a proper stated that the proposal would allow it to be a more incident to banking; that is, that the proposed activities effective competitor in the financial services industry. In "can reasonably be expected to produce benefits to the addition, there are public benefits to be derived from perpublic, such as greater convenience, increased competition, mitting capital markets to operate so that bank holding or gains in efficiency, that outweigh possible adverse companies can make potentially profitable investments in effects, such as undue concentration of resources, decreased nonbanking companies and from permitting banking orgaor unfair competition, conflicts of interests, or unsound bank- nizations to allocate their resources in the manner they ing practices."9 As part of its review of these factors, the consider to be most efficient when such investments and Board considers the financial and managerial resources of actions are consistent, as in this case, with the relevant the notificant and its subsidiaries and the effect the transac- considerations under the BHC Act. tion would have on such resources.10 Based on all the facts of record, the Board has deter- In considering the financial resources of the notificant, mined that performance of the proposed activities by Wells the Board has reviewed the capitalization of Wells Fargo Fargo, under the framework established in this and prior and Company in accordance with the standards set forth in decisions, can reasonably be expected to produce public the Section 20 Orders and has found the capitalization of benefits that outweigh any reasonably expected adverse each to be consistent with approval. This determination is effects of the proposal. Accordingly, the Board has deterbased on all the facts of record, including Wells Fargo's mined that the performance of the proposed activities by projections of the volume of the bank-ineligible underwrit- Wells Fargo is a proper incident to banking for purposes of ing and dealing activities of Company. section 4(c)(8) of the BHC Act. The Board also has reviewed the managerial resources of each of the entities involved in this proposal in light of Conclusion examination reports and other supervisory information. In connection with the proposal, the Federal Reserve Bank of On the basis of all the facts of record, the Board has Minneapolis ("Reserve Bank") has reviewed the policies determined that the notice should be, and hereby is, apand procedures of Company to ensure compliance with this proved, subject to all the terms and conditions described in order and the Section 20 Orders, including Company's this order and the Section 20 Orders, as modified by the operational and managerial infrastructure; computer, audit, Modification Orders. The Board's approval of the proposal and accounting systems; and internal risk management extends only to activities conducted within the limitations procedures and controls. On the basis of the Reserve of this order, including the Board's reservation of authority Bank's review and all other facts of record, including the to establish additional limitations to ensure that the activicommitments provided in this case and the proposed man- ties of Company are consistent with safety and soundness, agerial and risk management systems of Company, the avoidance of conflicts of interests, and other relevant con- Board has concluded that financial and managerial consid- siderations under the BHC Act. Underwriting and dealing erations are consistent with approval of the notice. in any manner other than as approved in this order is not The Board has carefully considered the competitive within the scope of the Board's approval and is not authoeffects of the proposal. To the extent that Ragen Mac- rized for Company. Kenzie offers different types of products and services than The Board's determination also is subject to all the terms Wells Fargo, the proposed acquisition would result in no and conditions set forth in Regulation Y, including those in loss of competition. In those markets where the product sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and offerings of Wells Fargo's nonbanking subsidiaries overlap 225.25(c)), and to the Board's authority to require modifiwith the product offerings of Ragen MacKenzie, such as cation or termination of the activities of a bank holding securities brokerage, investment advisory, and securities company or any of its subsidiaries as the Board finds underwriting and dealing activities, there are numerous necessary to ensure compliance with, or to prevent evasion existing and potential competitors. Consummation of the of, the provisions and purposes of the BHC Act and the proposal, therefore, would have a de minimis effect on Board's regulations and orders issued thereunder. The competition in the markets for these services, and the Board's decision is specifically conditioned on compliance Board has concluded that the proposal would not have with all the commitments made in connection with this significantly adverse competitive effects in any relevant notice, including the commitments discussed in this order market. and the conditions set forth in this order and the Board The Board also expects that consummation of the pro- regulations and orders noted above. The commitments and posal would provide added convenience to the customers conditions are deemed to be conditions imposed in writing of Wells Fargo and Ragen MacKenzie. Wells Fargo has by the Board in connection with its findings and decision, and, as such, may be enforced in proceedings under applicable law. This proposal shall not be consummated later than three 9. 12 U.S.C. § 1843(c)(8). 10. See 12 C.F.R. 225.26. months after the effective date of this order, unless such Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

344 Federal Reserve Bulletin • May 2000 period is extended for good cause by the Board or the In order to approve an application by a foreign bank to Federal Reserve Bank of San Francisco, acting pursuant to establish a branch in the United States, the IBA and Regudelegated authority. lation K require the Board to determine that the foreign By order of the Board of Governors, effective March 13, bank applicant engages directly in the business of banking 2000. outside of the United States and has furnished to the Board the information it needs to assess the application ade- Voting for this action: Chairman Greenspan and Governors Kelley, quately. The Board also shall take into account whether the Meyer, and Gramlich. Absent and not voting: Vice Chairman Fergu- foreign bank and any foreign bank parent is subject to son. comprehensive supervision or regulation on a consolidated basis by its home country supervisor (12 U.S.C. ROBERT DEV. FRIERSON § 3105(d)(2); 12 C.F.R. 211.24).2 The Board may also take Associate Secretary of the Board into account additional standards as set forth in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)-(3)). ORDERS ISSUED UNDER INTERNATIONAL BANKING The IBA includes a limited exception to the general ACT requirement relating to comprehensive, consolidated supervision (12 U.S.C. § 3105(d)(6)). This exception provides National Bank of Egypt that, if the Board is unable to find that a foreign bank Cairo, Egypt seeking to establish a branch, agency, or commercial lending company is subject to comprehensive supervision or Order Approving Establishment of a Branch regulation on a consolidated basis by the appropriate authorities in its home country, the Board may nevertheless National Bank of Egypt ("Bank"), Cairo, Egypt, a foreign approve an application by such foreign bank if: bank within the meaning of the International Banking Act (i) The appropriate authorities in the home country of ("IBA"), has applied under section 7(d) of the IBA the foreign bank are actively working to establish (12 U.S.C. § 3105(d)) to establish a state-licensed branch arrangements for the consolidated supervision of in New York, New York. The Foreign Bank Supervision such bank; and Enhancement Act of 1991, which amended the IBA, pro- (ii) All other factors are consistent with approval vides that a foreign bank must obtain the approval of the (12 U.S.C. § 3105(d)(6)(A)). In deciding whether Board to establish a branch in the United States. to exercise its discretion to approve an application Notice of the application, affording interested persons an under authority of this exception, the Board shall opportunity to comment, has been published in a newspaalso consider whether the foreign bank has adopted per of general circulation in New York, New York (The and implements procedures to combat money laun- New York Times, December 4, 1998). The time for filing dering (12 U.S.C. § 3105(d)(6)(B)). comments has expired, and the Board has considered the application and all comments received. The Board also may take into account whether the home Bank, with total consolidated assets of approximately US $19.6 billion, is the largest commercial bank in Egypt.1 country of the foreign bank is developing a legal regime to address money laundering or is participating in multilateral Founded in 1898 as a privately owned commercial bank efforts to combat money laundering (12 U.S.C. with central bank responsibilities, Bank is now wholly § 3105(d)(6)(B)). owned by the Egyptian government and engages in a wide Bank engages directly in the business of banking outside range of commercial banking activities, serving retail and the United States through its banking operations in Egypt corporate clients in the domestic and international markets. Bank has more than 340 domestic branches, a bank subsidiary in London, and a representative office in South Africa. Through 14 nonbank subsidiaries, Bank engages in trust, 2. In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors: investment, housing development, manufacturing, and (i) ensure that the bank has adequate procedures for monitoring trade-related activities in Egypt and abroad. Bank does not and controlling its activities worldwide; have any direct operations in the United States, but does (ii) obtain information on the condition of the bank and its own a nonvoting equity interest in Arab American Bank subsidiaries and offices through regular examination reports, ("AAB"), New York, New York, a state-chartered consor- audit reports, or otherwise; (iii) obtain information on the dealings with and relationship tium bank. Bank would purchase virtually all the assets and between the bank and its affiliates, both foreign and domestic; liabilities of AAB through the proposed New York branch (iv) receive from the bank financial reports that are consolidated and would offer services to clients based in the Middle East on a worldwide basis or comparable information that permits and to U.S. enterprises seeking to do business there. Bank analysis of the bank's financial condition on a worldwide would be a qualifying foreign banking organization within consolidated basis; (v) evaluate prudential standards, such as capital adequacy and the meaning of Regulation K (12 C.F.R. 211.23(b)). risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's 1. Asset data are as of September 30, 1999. determination. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 345 and elsewhere. Bank also has provided the Board with policies; and compliance with internal controls. Bank's information necessary to assess the application through internal audit findings are provided to the Central Bank and submissions that address the relevant issues. to Bank's external auditors.5 With respect to supervision by Bank's home country With regard to measures to prevent money laundering, authorities, the Board has considered the following infor- although Egypt has not formally adopted the recommendamation. The Central Bank of Egypt is the licensing, regula- tions of the Financial Action Task Force ("FATF") regardtory, and supervisory authority for all financial institutions ing the prevention and detection of money laundering, the in Egypt, including Bank. The Central Bank obtains infor- Egyptian Banking Association, in collaboration with the mation on the condition of Bank, Bank's subsidiaries, and Central Bank, has issued rules for detecting and deterring Bank's foreign operations through regular examinations, money laundering operations that are generally consistent periodic financial reports, and follow-up consultations with with the institution-specific recommendations of the FATF. Bank's management. The Central Bank performs compre- These rules require the reporting of suspicious transactions hensive, mandatory on-site examinations of Bank every to the Central Bank, require banks to ascertain the sources other year and targeted periodic examinations, as needed. of funds for large transactions, and require customer identi- In addition, Bank's consolidated financial statements are fication on the opening of an account and profiling as part audited annually by two government-approved external of the ongoing monitoring of accounts. auditors. These auditors conduct on-site examinations of Bank has implemented policies and procedures to ensure Bank, as needed, and provide their findings to the Central compliance with these rules. Bank's policies include Bank. The Central Bank examiners and Bank's external "know your customer" procedures, large transaction reauditors review Bank's internal controls, financial condi- views, and record-keeping requirements; specify internal tion, asset quality, compliance with law and regulation, and lines for reporting suspicious transactions; and detail procetransactions with affiliates.3 The Central Bank conducts dures for investigating suspicious transactions and reportfollow-up meetings with Bank's management whenever ing them to the Central Bank and law enforcement authoriweaknesses are noted. The Central Bank is also actively ties. Bank's internal and external auditors monitor reviewing its processes with a view to enhancing the compliance with these policies and procedures, and prooverall effectiveness of its supervisory program. vide their findings to Bank's board of directors and the Off-site inspections consist of the Central Bank's review Central Bank. of periodic reports and other information received from Based on all the facts of record, the Board has deter- Bank and from Bank's external auditors. These materials mined that Bank's home country authorities are actively address various aspects of Bank's operations and are used working to establish arrangements for the consolidated by the Central Bank to monitor Bank's compliance, on a supervision of Bank, and that considerations relating to the consolidated basis, with prudential limits on capital ade- steps taken by Bank and its home country to combat quacy,4 asset classification and provisioning, credit and money laundering are consistent with approval under this foreign currency exposure, and liquidity, and with statutory standard. reserve requirements. The Board has also taken into account the additional The Central Bank supervises Bank's foreign offices and standards set forth in the IBA (12 U.S.C. § 3105(d)(3)-(4); foreign banking subsidiaries principally through off-site 12 C.F.R. 211.24(c)(2)-(3)). The Central Bank has no obsurveillance. Bank employs locally based external auditors jection to establishment of the proposed branch. who are required to provide their reports to Bank's Bank must comply with the minimum capital standards Egyptian-based external auditors and to the Central Bank. of the Basel Capital Accord ("Accord"), as implemented The Egyptian auditors are required to use those reports in by Egypt. Bank's capital is in excess of the minimum assessing Bank's overall financial condition. In addition, levels that would be required by the Accord and is considthe Central Bank exchanges information with host country ered equivalent to the capital that would be required of a regulators. U.S. banking organization. Managerial and other financial Bank monitors the operations of its domestic and over- resources of Bank are also considered consistent with seas offices through a combination of annual on-site audits approval, and Bank appears to have the experience and and a review of periodic reports submitted to Bank's head capacity to support the proposed branch. Bank has estaboffice. Bank's internal audit department reviews assets/ lished controls and procedures for the proposed branch to liabilities, revenues/expenses, and off-balance-sheet activities; compliance with governing rules, regulations, and 5. In general, the Central Bank treats Bank's nonbank subsidiaries as investments. In evaluating these investments, the Central Bank 3. Egyptian banking laws do not impose limits on transactions with considers whether they are properly valued, sufficiently reserved affiliates but do limit a bank's exposure to single borrowers (or related against, and consistent with a sensible investment policy. Bank monigroups of borrowers) to no more than 30 percent of the bank's capital tors the operations of its nonbank subsidiaries through representation base. The Central Bank scrutinizes all transactions between Bank and on each subsidiary's board of directors. The board representative its affiliates that are on preferential terms. provides Bank, Bank's external auditors, and the Central Bank with a 4. All banks operating in Egypt (other than branches of foreign comprehensive annual report prepared by the subsidiary's indepenbanks) must maintain a capital to risk-weighted asset ratio of at least dent external auditor, highlighting any transactions between Bank and 8 percent, calculated on a consolidated basis. the subsidiary that are on preferential terms. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

346 Federal Reserve Bulletin • May 2000 ensure compliance with U.S. law, as well as controls and information on the operations or activities of Bank and its procedures for its worldwide operations generally. affiliates subsequently interfere with the Board's ability to With respect to access to information about Bank's obtain information to determine and enforce compliance by operations, the Board has reviewed the restrictions on Bank or its affiliates with applicable federal statutes, the disclosure in relevant jurisdictions in which Bank operates Board may require termination of any of Bank's direct or and has communicated with relevant government authori- indirect activities in the United States. Approval of this ties regarding access to information. Bank has committed application also is specifically conditioned on compliance to make available to the Board such information on the by Bank with the commitments made in connection with operations of Bank and any of its affiliates that the Board this application and with the conditions in this order.6 The deems necessary to determine and enforce compliance with commitments and conditions referred to above are condithe IB A, the Bank Holding Company Act of 1956, as tions imposed in writing by the Board in connection with amended, and other applicable federal law. To the extent its decision and may be enforced in proceedings under that the provision of such information to the Board may be 12 U.S.C. § 1818 against Bank and its affiliates. prohibited by law, Bank has committed to cooperate with By order of the Board of Governors, effective March 20, the Board to obtain any necessary consents or waivers that 2000. might be required from third parties for disclosure of such information. In addition, subject to certain conditions, the Voting for this action: Chairman Greenspan, Vice Chairman Fergu- Central Bank may share information on Bank's operations son, and Governors Kelley, Meyer, and Gramlich. with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to ROBERT DEV. FRIERSON the condition described below, the Board concludes that Associate Secretary of the Board Bank has provided adequate assurances of access to any necessary information that the Board may request. 6. The Board's authority to approve the establishment of the pro- On the basis of all the facts of record, and subject to the posed branch parallels the continuing authority of the State of New commitments made by Bank, as well as the terms and 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 conditions set forth in this order, the Board has determined and the New York State Banking Department ("Department") to that Bank's application to establish a branch should be, and license the proposed office of Bank in accordance with any terms or hereby is, approved. Should any restrictions on access to conditions that the Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) Effective Date Old Kent Financial Corporation, Grand Premier Financial, Inc., March 6, 2000 Grand Rapids, Michigan Wauconda, Illinois Grand National Bank, Wauconda, Illinois Section 4 Applicant(s) Bank(s) Effective Date Centura Banks, Inc., NCS Mortgage Services, LLC, March 24, 2000 Rocky Mount, North Carolina Norcross, Georgia National Consumer Services, II, LLC, Norcross, Georgia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 347 Section 4—Continued Applicant(s) Bank(s) Effective Date First Security Corporation, Bank Network Securities, March 15, 2000 Salt Lake City, Utah Chicago, Illinois Star Systems, Inc., Maitland, Florida 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 Baytree Bancorp, Inc., Baytree National Bank & Trust Co., Chicago February 29, 2000 Chicago, Illinois Chicago, Illinois Branson Bancshares, Inc., Branson Bank, St. Louis March 2, 2000 Branson, Missouri Branson, Missouri Capitol Bancorp Ltd., Black Mountain Community Bank, Chicago March 10, 2000 Lansing, Michigan Henderson, Nevada Sun Community Bancorp Limited, Phoenix, Arizona Nevada Community Bancorp Limited, Las Vegas, Nevada Capitol Bancorp Ltd., Sunrise Bank of Albuquerque, Chicago March 22, 2000 Lansing, Michigan Albuquerque, New Mexico Sun Community Bancorp Limited, Phoenix, Arizona Sunrise Capital Corporation, Albuquerque, New Mexico Central Financial Corporation, NorthStar Bancshares, Inc., Kansas City March 9, 2000 Hutchinson, Kansas Riverside, Missouri Concord Bancshares, Inc., Concord Bank, St. Louis February 29, 2000 St. Louis, Missouri St. Louis, Missouri Crown Bankshares, Inc., Crown Bank, Minneapolis March 22, 2000 Eden Prairie, Minnesota Edina, Minnesota Davis Trust Financial Corporation, Davis Trust Company, Richmond March 7, 2000 Elkins, West Virginia Elkins, West Virginia First Charter Corporation, Carolina First Bancshares, Inc., Richmond March 20, 2000 Concord, North Carolina Lincolnton, North Carolina First Northern Community Bancorp, First Northern Bank of Dixon, San Francisco March 8, 2000 Dixon, California Dixon, California The Leaders Group, Inc., The Leaders Bank, Chicago March 13, 2000 Oak Brook, Illinois Oak Brook, Illinois Kane.Commerce Co., Community State Bank of Plymouth, Chicago March 13, 2000 Davenport, Iowa Plymouth, Illinois Maries County Bancorp, Inc., Branson Bancshares, Inc., St. Louis March 2, 2000 Vienna, Missouri Branson, Missouri Branson Bank, Branson, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

348 Federal Reserve Bulletin • May 2000 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date National Commerce Bancorporation, Piedmont Bancorp, Inc., St. Louis February 28, 2000 Memphis, Tennessee Hillsborough, North Carolina Hillsborough Savings Bank, Inc., SSB, Hillsborough, North Carolina New Mexico First Financial, Inc., Mesilla Valley Bank, Dallas March 22, 2000 Dover, Delaware Las Cruces, New Mexico NorthStar Bancshares, Inc., NorthStar Bank, National Association, Kansas City March 1, 2000 Riverside, Missouri Kansas City, Missouri Ohio Legacy Corp., Ohio Legacy Bank, N.A., Cleveland February 29, 2000 Wooster, Ohio Wooster, Ohio Omni Financial Services, Inc., United National Bank, Richmond March 7, 2000 Atlanta, Georgia Fayetteville, North Carolina Park National Corporation, SNB Corp., Cleveland March 6, 2000 Newark, Ohio Greenville, Ohio Park National Corporation, UB Bancshares, Inc., Cleveland March 6, 2000 Newark, Ohio Bucyrus, Ohio Premier Capital Corp., Premier Bank, Kansas City March 2, 2000 Denver, Colorado Denver, Colorado Scottsdale Bancorp, Scottsdale Community Bank, San Francisco March 15, 2000 Woodbury, Minnesota Scottsdale, Arizona Three Rivers Bancorp., Inc., Three Rivers Bank and Trust Company, Cleveland March 20, 2000 Monroeville, Pennsylvania Monroeville, Pennsylvania Vision Bancshares, Inc., Vision Bank, Atlanta March 7, 2000 Gulf Shores, Alabama Gulf Shores, Alabama Wells Fargo & Company, Michigan Financial Corporation, San Francisco March 15, 2000 San Francisco, California Marquette, Michigan MFC First National Bank, Marquette, Michigan MFC First National Bank, Menominee, Michigan MFC First National Bank, Ironwood, Michigan MFC First National Bank, Iron River, Michigan MFC First National Bank, Iron Mountain, Michigan MFC First National Bank, Houghton, Michigan MFC First National Bank, Escanaba, Michigan Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bank of Montreal, Lending, Inc., Chicago March 10, 2000 Toronto, Ontario, Canada Chicago, Illinois Bankmont Financial Corp., Chicago, Illinois The Chase Manhattan Bank, CSL Leasing, Inc., New York March 17, 2000 New York, New York Wilmington, Delaware Chase Manhattan Bank Delaware, Wilmington, Delaware Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 349 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Heartland Bancshares, Inc., First Community National Bank, Chicago March 23, 2000 Lenox, Iowa Corning, Iowa Iowa State Bank Holding Company, To engage de novo in extending credit Chicago March 3, 2000 Des Moines, Iowa and servicing loans Klein Financial, Inc., Home Town Mortgage, Inc., Minneapolis February 29, 2000 Chaska, Minnesota Chaska, Minnesota Marquette Bancshares, Inc., Apocalypse Corporation, Minneapolis March 9, 2000 Minneapolis, Minnesota Minneapolis, Minnesota Offerman & Company, Inc., Minneapolis, Minnesota MSB Holding Company, To engage in leasing personal or real Chicago March 15, 2000 Moorhead, Iowa property National Commerce Bancorporation, Fleet One, L.L.C., St. Louis February 28, 2000 Memphis, Tennessee Nashville, Tennessee Republic Bancorp Co., Republic Bank, of Chicago, Chicago March 7, 2000 Orland Park, Illinois Darien, Illinois Summitt Bank Corporation, CashMart, Inc., Atlanta March 1, 2000 Atlanta, Georgia Atlanta, Georgia Susquehanna Bancshares, Inc., Valley Forge Asset Management Philadelphia February 24, 2000 Philadelphia, Pennsylvania Corporation, King of Prussia, Pennsylvania Valley Forge Investment Company Inc., King of Prussia, Pennsylvania UBS AG, Prediction Company LLC, New York March 17, 2000 Zurich, Switzerland Santa Fe, New Mexico Wells Fargo & Company, Billpoint, Inc., San Francisco March 7, 2000 San Francisco, California San Jose, California 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 AmSouth Bank, First American Federal Savings Bank, March 8, 2000 Birmingham, Alabama Dalton, Georgia Old Kent Bank, Grand National Bank, March 6, 2000 Grand Rapids, Michigan Wauconda, Illinois 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 Atlantic Bank, Wilmington Trust FSB, Richmond March 13, 2000 Ocean City, Maryland Salisbury, Maryland Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

350 Federal Reserve Bulletin • May 2000 By Federal Reserve Banks—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Citizens Bank, Great Lakes National Bank Michigan, Chicago March 16, 2000 Flint, Michigan Ann Arbor, Michigan Citizens Trust Bank, Mutual Federal Savings Bank of Atlanta March 10, 2000 Atlanta, Georgia Atlanta, Atlanta, Georgia CSB Bank, Old Kent Bank, Chicago March 6, 2000 Capac, Michigan Grand Rapids, Michigan Weldon State Bank and Trust, Peoples State Bank of Mansfield, Chicago March 22, 2000 Weldon, Illinois Mansfield, Illinois PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed Federal Reserve Banks in which the Board of Governors is not January 14, 2000). Appeal of district court order granting named a party. summary judgment to the Board in a Freedom of Information Act case. Nelson v. Greenspan, No. 1.99CV00215 (EGS) (D.D.C., filed Albrecht v. Board of Governors, No. 00-CV-317 (CKK) January 28, 1999). Employment discrimination complaint. (D.D.C., filed February 18, 2000). Action challenging the On February 25, 2000, the court granted the Board's motion funding of the retirement plan for certain Board employees. to dismiss the complaint. Board of Governors v. Interfinancial Services, Ltd., No. 00-75 (RCL) (D.D.C., filed February 9, 2000). Action to enforce Fraternal Order of Police v. Board of Governors, No. administrative subpoena issued by the Board. 1:98CV03116 (WBB) (D.D.C., filed December 22, 1998). Toland v. Internal Revenue Service, Federal Reserve System, Declaratory judgment action challenging Board labor pracet al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed De- tices. On February 26, 1999, the Board filed a motion to cember 29, 1999). Challenge to income taxation and Fed- dismiss the action. eral Reserve notes. On February 16, 2000, the government Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) filed a motion to dismiss the action. (S.D.N.Y„ filed May 15, 1998). Action to freeze assets of Irontown Housing Corp. v. Board of Governors, No. 99-9549 individual pending administrative adjudication of civil (10th Cir., filed December 27, 1999). Petition for review of money penalty assessment by the Board. On May 26, 1998, Board order dated December 13, 1999, approving the the court issued a preliminary injunction restraining the merger of Zions Bancorporation with First Security Corpo- transfer or disposition of the individual's assets and appointration. ing the Federal Reserve Bank of New York as receiver for Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed those assets. Following entry of the Board's order requiring August 3, 1999). Employment discrimination action. restitution, 85 Federal Reserve Bulletin 142 (1998), the Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. court granted the Board's motion for judgment in the asset Cal., filed July 21, 1999). Action relating to impounded freeze action and authorized a judicial sale of the seized bank drafts. property. Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed filed April 28, 1999). Appeal of dismissal of action chal- May 4, 1998). Appeal and cross-appeal of district court lenging income taxation and Federal Reserve notes. order granting in part and denying in part the Board's Sedgwick v. Board of Governors, No. Civ.-99-0702 (D. Arimotion for summary judgment seeking prejudgment interest zona, filed April 14, 1999). Action under Federal Tort and a statutory surcharge in connection with a civil money Claims Act alleging violation of bank supervision requirepenalty assessed by the Board. On February 24, 1999, the ments. The Board filed a motion to dismiss on June 15, court granted the Board's appeal and denied the cross- 1999. appeal, and remanded the matter to the district court for Hunter v. Board of Governors, No. 1:98CV02994 (ESH) determination of prejudgment interest due to the Board. (D.D.C., filed December 9, 1998). Action under the Freedom of Information Act, the Privacy Act, and the first Bettersworth v. Board of Governors, No. 97-CA-624 (W.D. amendment. The Board filed a motion to dismiss or for Tex., filed August 21, 1997). Privacy Act case. On Februsummary judgment on July 22, 1999. ary 17, 2000, the court granted the Board's motion for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 351 summary judgment and dismissed the action. On March 28, TERMINATION OF ENFORCEMENT ACTIONS 2000, the plaintiff filed a notice of appeal. Banco Nacional de Mexico Mexico City, Mexico FINAL ENFORCEMENT ORDERS ISSUED BY THE BOARD OF GOVERNORS Banco Internacional, S.A. Mexico City, Mexico Vinay B. Malhotra Tokyo, Japan Banco Santander Madrid, Spain The Federal Reserve Board announced on March 17, 2000, the issuance of an Order of Prohibition against Vinay B. The Federal Reserve Board announced on March 13, 2000, Malhotra, a former vice president and officer of The Chithe termination of the Temporary Orders to Cease and cago Branch of The Bank of Tokyo-Mitsubishi, Ltd., To- Desist issued against Banco Nacional de Mexico, Mexico kyo, Japan. City, Mexico; Banco Internacional, S.A., Mexico City, Mexico; and Banco Santander, Madrid, Spain. R&T Foundation James R. Sellers WRITTEN AGREEMENTS APPROVED BY FEDERAL Cooper City, Florida RESERVE BANKS Banco Popular de Puerto Rico The Federal Reserve Board announced on March 17, 2000, Hato Rey, Puerto Rico the issuance of a consent Order against the R&T Foundation and James R. Sellers, institution-affiliated parties of the First Western Bank, Cooper City, Florida, a state mem- The Federal Reserve Board announced on March 9, 2000, ber bank. the execution of a Written Agreement by and between Banco Popular de Puerto Rico, Hato Rey, Puerto Rico, and the Federal Reserve Bank of New York. Sunshine Financial Frederick K. Wall Security Dollar Bank Cooper City, Florida Niles, Ohio The Federal Reserve Board announced on March 17, 2000, the issuance of a consent Order against Sunshine Financial The Federal Reserve Board announced on March 22, 2000, and Frederick K. Wall, institution-affiliated parties of the the execution of a Written Agreement by and between the First Western Bank, Cooper City, Florida, a state member Security Dollar Bank, Niles, Ohio, and the Federal Reserve bank. Bank of Cleveland. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

352 Federal Reserve Bulletin • May 2000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

353 Directors of Federal Reserve Banks and Branches Regional decentralization and a combination of govern- Class A directors of each Reserve Bank represent the mental and private characteristics are important hallmarks stockholding member banks of the Federal Reserve Disof the uniqueness of the Federal Reserve System. Under trict. Class B and Class C directors represent the public and the Federal Reserve Act, decentralization was achieved by are chosen with due, but not exclusive, consideration to the division of the country into twelve regions called Federal interests of agriculture, commerce, industry, services, labor, Reserve Districts and the establishment in each District of and consumers; they may not be officers, directors, or a separately incorporated Federal Reserve Bank with its employees of any bank. In addition, Class C directors may own board of directors. The blending of governmental and not be stockholders of any bank. The Board of Governors private characteristics is provided through ownership of the designates annually one Class C director as chairman of stock of the Reserve Bank by member banks in its District, the board of directors of each District Bank and designates which also elect the majority of the board of directors, and another Class C director as deputy chairman. by the general supervision of the Reserve Banks by the Each of the twenty-five Branches of the Federal Reserve Board of Governors, an agency of the federal government. Banks has a board of either seven or five directors, a The Board also appoints a minority of each board of majority of whom are appointed by the parent Federal directors. Thus, there are essential elements of regional Reserve Bank; the others are appointed by the Board of participation and counsel in the conduct of the System's Governors. One of the Board's appointees is designated affairs for which the Federal Reserve relies importantly on annually as chairman of the board of that Branch in a the contributions of the directors of the Federal Reserve manner prescribed by the parent Federal Reserve Bank. Banks and Branches. The list of directors below is current as of April 26, The following list of directors of Federal Reserve Banks 2000. and Branches shows for each director the class of director- The names of the chairman and deputy chairman of the ship, the principal business affiliation, and the date the board of directors of each Reserve Bank and of the chaircurrent term expires. Each Federal Reserve Bank has nine man of each Branch are published monthly in the Federal members on its board of directors: The member banks elect Reserve Bulletin.1 the three Class A and three Class B directors, and the Board of Governors appoints the three directors in Class C. Directors are chosen without discrimination as to race, creed, color, sex, or national origin. 1. The current list appears on page A86 of this Bulletin. Term expires DISTRICT 1—BOSTON December 31 Class A Edwin N. Clift President and Chief Executive Officer, Merrill Merchants Bank, 2000 Bangor, Maine Terrence Murray Chairman and Chief Executive Officer, FleetBoston Financial Corporation, 2001 Boston, Massachusetts Paul M. Ferguson President and Chief Executive Officer, Pemigewasset National Bank, 2002 Plymouth, New Hampshire Class B President and Chief Executive Officer, UNC Partners, Inc., 2000 Edward Dugger III Boston, Massachusetts Adjunct Lecturer, John F. Kennedy School of Government, 2001 Robert R. Glauber Harvard University, Cambridge, Massachusetts Orit Gadiesh Chairman, Bain & Company, Boston, Massachusetts 2002 Class C James J. Norton President, Graphic Communications International Union, Washington, D.C. 2000 William C. Brainard Professor of Economics, Yale University, New Haven, Connecticut 2001 William O. Taylor Chairman Emeritus, The Boston Globe, Boston, Massachusetts 2002 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

354 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 2—NEW YORK December 31 Class A Walter V. Shipley Retired Chairman, The Chase Manhattan Corporation, New York, 2000 New York T. Joseph Semrod Chairman and Chief Executive Officer, Summit Bancorp, 2001 Princeton, New Jersey George W. Hamlin IV President and Chief Executive Officer, The Canandaigua National Bank 2002 and Trust Company, Canandaigua, New York Class B Eugene R. McGrath Chairman, President, and Chief Executive Officer, Consolidated Edison 2000 Company of New York, Inc., New York, New York Ronay Menschel President, Phipps Houses, New York, New York 2001 Ann M. Fudge Executive Vice President, Kraft Foods, Inc., and President, Coffee & 2002 Cereals Division, Tarrytown, New York Class C Charles A. Heimbold, Jr. Chairman and Chief Executive Officer, Bristol-Myers Squibb Co., 2000 New York, New York Peter G. Peterson Chairman, The Blackstone Group, New York, New York 2001 Albert J. Simone President, Rochester Institute of Technology, Rochester, New York 2002 BUFFALO BRANCH Appointed by the Federal Reserve Bank William E. Swan President and Chief Executive Officer, First Niagara Bank, 2000 Lockport, New York Maureen Torrey Marshall Co-owner, Torrey Farms, Inc., Elba, New York 2000 Kathleen R. Whelehan Executive Vice President, Consumer Finance Division, HSBC, 2001 Buffalo, New York Geraldine C. Ochocinska Director, Region 9, UAW, Buffalo, New York 2002 Appointed by the Board of Governors John E. Friedlander President and Chief Executive Officer, Kaleida Health, Buffalo, New York 2000 Bal Dixit President and Chief Executive Officer, Newtex Industries, Inc., 2001 Victor, New York Patrick P. Lee Chairman and Chief Executive Officer, International Motion Control, Inc., 2002 Buffalo, New York DISTRICT 3—PHILADELPHIA Class A Harry Elwell III President and Chief Executive Officer, First National Bank of Absecon, 2000 Absecon, New Jersey Rufus A. Fulton, Jr. Chairman, President, and Chief Executive Officer, Fulton Financial 2001 Corporation, Lancaster, Pennsylvania Frank Kaminski, Jr. Chairman, President, and Chief Executive Officer, Atlantic Central Bankers 2002 Bank, Camp Hill, Pennsylvania Class B Robert D. Burris President and Chief Executive Officer, Burris Foods, Inc., 2000 Milford, Delaware Howard E. Cosgrove Chairman and Chief Executive Officer, Conectiv, Wilmington, Delaware 2001 Robert E. Chappell Chairman and Chief Executive Officer, Penn Mutual Life Insurance Co., 2002 Philadelphia, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 355 Term Expires DISTRICT 3—PHILADELPHIA—Continued December 31 Class C Glenn A. Schaeffer President, Pennsylvania Building and Construction Trades Council, 2000 Harrisburg, Pennsylvania Charisse R. Lillie Partner, Ballard Spahr Andrews & Ingersoll, Philadelphia, Pennsylvania 2001 Joan Carter President and Chief Operating Officer, UM Holdings Ltd., 2002 Haddonfield, New Jersey DISTRICT 4—CLEVELAND Class A President and Chief Executive Officer, Southwest Bank, 2000 David S. Dahlmann Greensburg, Pennsylvania Chairman and Chief Executive Officer, FirstMerit Corporation, 2001 John R. Cochran Akron, Ohio Chairman and President, Heartland BancCorp, Gahanna, Ohio 2002 Tiney M. McComb Class B President and Chief Executive Officer, Cheryl&Co., Westerville, Ohio 2000 Cheryl L. Krueger-Horn President and Chief Operating Officer, Cleveland Cavaliers, 2001 Wayne R. Embry Cleveland, Ohio David L. Nichols Cincinnati, Ohio 2002 Class C Vacancy 2000 David H. Hoag Former Chairman, The LTV Corporation, Cleveland, Ohio 2001 Phillip R. Cox President and Chief Executive Officer, Cox Financial Corporation, 2002 Cincinnati, Ohio CINCINNATI BRANCH Appointed by the Federal Reserve Bank Stephen P. Wilson President and Chief Executive Officer, Lebanon Citizens National Bank, 2000 Lebanon, Ohio Judith G. Clabes President and Chief Executive Officer, Scripps Howard Foundation, 2000 Cincinnati, Ohio Jean R. Hale President and Chief Executive Officer, Community Trust Bancorp, Inc., 2001 Pikeville, Kentucky V. Daniel Radford Executive Secretary-Treasurer, Cincinnati AFL-CIO Labor Council, 2002 Cincinnati, Ohio Appointed by the Board of Governors Wayne Shumate Chairman and Chief Executive Officer, Kentucky Textiles, Inc., 2000 Paris, Kentucky Thomas Revely III President and Chief Executive Officer, Cincinnati Bell Supply Co., 2001 Cincinnati, Ohio George C. Juilfs President and Chief Executive Officer, SENCORP, Newport, Kentucky 2002 PITTSBURGH BRANCH Appointed by the Federal Reserve Bank Thomas J. O'Shane Senior Executive Vice President, Sky Financial Group, 2000 New Castle, Pennsylvania Edward V. Randall, Jr. Management Consultant, Babst Calland Clements & Zomnir, 2001 Pittsburgh, Pennsylvania Georgia Berner President, Berner International Corp., New Castle, Pennsylvania 2002 Peter N. Stephans Chairman and Chief Executive Officer, Trigon Incorporated, 2002 McMurray, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

356 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 4—CLEVELAND—Continued December 31 PITTSBURGH BRANCH—Continued Appointed by the Board of Governors John T. Ryan III Chairman and Chief Executive Officer, Mine Safety Appliances Company, 2000 Pittsburgh, Pennsylvania Gretchen R. Haggerty Vice President—Accounting and Finance, U.S. Steel Group, 2001 Pittsburgh, Pennsylvania Charles E. Bunch Senior Vice President, Strategic Planning and Corporate Services, 2002 PPG Industries, Inc., Pittsburgh, Pennsylvania DISTRICT 5—RICHMOND Class A President and Chief Executive Officer, The Bank of Tidewater, 2000 Elizabeth A. Duke Virginia Beach, Virginia Chairman Emeritus, First National Bank and Trust Company, 2001 James M. Culberson, Jr. Asheboro, North Carolina President and Chief Executive Officer, The National Bank 2002 Fred L. Green III of South Carolina, Columbia, South Carolina Class B James E. Haden President and Chief Executive Officer, Martha Jefferson Hospital, 2000 Charlottesville, Virginia Craig A. Ruppert President, Ruppert Nurseries Inc., Laytonsville, Maryland 2001 W. Henry Harmon President and Chief Executive Officer, Columbia Energy Resources, 2002 Charleston, West Virginia Class C Wesley S. Williams, Jr. Partner, Covington & Burling, Washington, D.C. 2000 Irwin Zazulia President and Chief Executive Officer, Hecht's, Arlington, Virginia 2001 Jeremiah J. Sheehan Chairman and Chief Executive Officer, Reynolds Metals Company, 2002 Richmond, Virginia BALTIMORE BRANCH Appointed by the Federal Reserve Bank William L. Jews President and Chief Executive Officer, Blue Cross Blue Shield of 2000 Maryland, Owings Mills, Maryland Virginia W. Smith President and Chief Executive Officer, Union National Bank, 2000 Westminster, Maryland Jeremiah E. Casey Director and Former Chairman, Allfirst Financial, Inc., Baltimore, Maryland 2001 Dyan Brasington President, High Technology Council of Maryland, Rockville, Maryland 2002 Appointed by the Board of Governors Betty Bednarczyk International Secretary-Treasurer, Service Employees International Union, 2000 AFL-CIO, CLC, Washington, D.C. Owen E. Herrnstadt Director, International Department, International Association of Machinists 2001 and Aerospace Workers, AFL-CIO, Upper Marlboro, Maryland George L. Russell, Jr. Law Offices of Peter G. Angelos, Baltimore, Maryland 2002 CHARLOTTE BRANCH Appointed by the Federal Reserve Bank Elleveen T. Poston President, Quality Transport, Inc., Lake City, South Carolina 2000 Cecil W. Sewell, Jr. Chairman and Chief Executive Officer, Centura Banks, Inc., 2000 Rocky Mount, North Carolina William H. Nock President and Chief Executive Officer, Sumter National Bank, 2001 Sumter, South Carolina Lucy J. Reuben Dean, School of Business, South Carolina State University, 2002 Orangeburg, South Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 357 Term Expires DISTRICT 5—RICHMOND—Continued DECEMBER 31 CHARLOTTE BRANCH—Continued Appointed by the Board of Governors Joan H. Zimmerman President, Southern Shows, Inc., Charlotte, North Carolina 2000 James F. Goodmon President and Chief Executive Officer, Capitol Broadcasting Company, 2001 Inc., Raleigh, North Carolina Michael A. Almond President and Chief Executive Officer, Carolinas Partnership, 2002 Charlotte, North Carolina DISTRICT 6—ATLANTA Class A D. Paul Jones, Jr. Chairman and Chief Executive Officer, Compass Bancshares, Inc., 2000 Birmingham, Alabama Waymon L. Hickman Chairman and Chief Executive Officer, First Farmers and Merchants 2001 National Bank, Columbia, Tennessee Richard G. Hickson President and Chief Executive Officer, Trustmark Corporation, 2002 Jackson, Mississippi Class B John Dane III Vice Chairman, Friede Goldman Halter, Inc., Pass Christian, Mississippi 2000 Suzanne E. Boas President, Consumer Credit Counseling Service, Inc,. Atlanta, Georgia 2001 Juanita P. Baranco Executive Vice President, Baranco Automotive Group, Morrow, Georgia 2002 Class C Paula Lovell President, Lovell Communications, Inc., Nashville, Tennessee 2000 Maria Camila Leiva Executive Vice President, Miami Free Zone Corporation, Miami, Florida 2001 John F. Wieland Chief Executive Officer and Chairman, John Wieland Homes and 2002 Neighborhoods, Inc., Atlanta, Georgia BIRMINGHAM BRANCH Appointed by the Federal Reserve Bank Roland Pugh Chairman, Roland Pugh Construction, Inc., Northport, Alabama 2000 Hundley Batts, Sr. Owner and Managing Agent, Hundley Batts & Associates, 2000 Huntsville, Alabama Robert M. Barrett Past President, Union Planters National Bank, Deatsville, Alabama 2001 W. Charles Mayer III President, Alabama Banking Group, AmSouth Bank, 2002 Birmingham, Alabama Appointed by the Board of Governors D. Bruce Carr Labor-Relations Liaison, Laborers' District Council of Alabama, 2000 Gadsden, Alabama Catherine Sloss Crenshaw President, Sloss Real Estate Group, Birmingham, Alabama 2001 V. Larkin Martin Managing Partner, Martin Farm, Courtland, Alabama 2002 JACKSONVILLE BRANCH Appointed by the Federal Reserve Bank Terry R. West President and Chief Executive Officer, Jax Navy Federal Credit Union, 2000 Jacksonville, Florida Michael W. Poole Principal, Poole Carbone Capital Partners, Inc., Winter Park, Florida 2000 Harvey R. Heller President, Heller Bros. Packing Corp., Winter Garden, Florida 2001 Jerry M. Smith Chairman and President, First National Bank of Alachua, 2002 Alachua, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

358 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 6—ATLANTA—Continued December 31 JACKSONVILLE BRANCH—Continued Appointed by the Board of Governors William E. Flaherty Chairman, Blue Cross and Blue Shield of Florida, Inc., 2000 Jacksonville, Florida Julie K. Hilton Vice President, Hilton Inc., Panama City Beach, Florida 2001 Marsha G. Rydberg Partner, The Rydberg Law Firm, Tampa, Florida 2002 MIAMI BRANCH Appointed by the Federal Reserve Bank Carlos A. Migoya Regional President, Dade and Monroe Counties, First Union National 2000 Bank of Florida, Miami, Florida Rudy E. Schupp Chairman and Chief Executive Officer, Republic Security Bank, 2001 West Palm Beach, Florida D. Keith Cobb Chairman, Laundromax, Inc., Ft. Lauderdale, Florida 2002 James W. Moore Managing Partner, Riverside Capital, LLC, Fort Myers, Florida 2002 Appointed by the Board of Governors Kaaren Johnson-Street President, Kaaren Street Associates, Inc., Miami, Florida 2000 Gregg Borgeson President and Chief Executive Officer, QuoteShip.com., Inc., 2001 Boston, Massachusetts Mark T. Sodders President, Lakeview Farms, Inc., Pahokee, Florida 2002 NASHVILLE BRANCH Appointed by the Federal Reserve Bank James E. Dalton, Jr. President and Chief Executive Officer, Quorum Health Group, Inc., 2000 Brentwood, Tennessee John E. Seward, Jr. President and Chief Executive Officer, PLC, Inc., 2000 Piney Flats, Tennessee Dale W. Polley Past President, First American Corporation, Nashville, Tennessee 2001 Leonard A. Walker, Jr. Chairman and Chief Executive Officer, First National Bank and Trust 2002 Company, Athens, Tennessee Appointed by the Board of Governors Whitney Johns Martin Chairman and Chief Executive Officer, Capital Across America, 2000 Nashville, Tennessee Frances F. Marcum Past Chairman and Chief Executive Officer, Micro Craft, Inc., 2001 Tullahoma, Tennessee Vacancy 2002 NEW ORLEANS BRANCH Appointed by the Federal Reserve Bank Teri G. Fontenot President and Chief Executive Officer, Woman's Health Foundation, 2000 Baton Rouge, Louisiana David Guidry President and Chief Executive Officer, Guico Machine Works, Inc., 2000 Harvey, Louisiana Howell N. Gage Chairman, Vicksburg Advisory Group, BankCorp South, 2001 Vicksburg, Mississippi C.R. Cloutier President and Chief Executive Officer, Midsouth National Bank, 2002 Lafayette, Louisiana Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 359 Term Expires DISTRICT 6—ATLANTA—Continued December 31 NEW ORLEANS BRANCH—Continued Appointed by the Board of Governors Ben Tom Roberts Senior Executive Vice President-Owner, Roberts Brothers, Inc., 2000 Mobile, Alabama Dwight H. Evans President and Chief Executive Officer, Mississippi Power Company, 2001 Gulfport, Mississippi R. Glenn Pumpelly President and Chief Executive Officer, Pumpelly Oil Inc., 2002 Sulphur, Louisiana DISTRICT 7—CHICAGO Class A Managing Director and Chief Executive Officer, First Bank & Trust, 2000 Robert R. Yohanan Evanston, Illinois President, Maquoketa State Bank and Ohnward Bancshares Inc., 2001 Alan R. Tubbs Maquoketa, Iowa President, BANK ONE Corporation, Chicago, Illinois 2002 Verne G. Istock Class B Jack B. Evans President, The Hall-Perrine Foundation, Cedar Rapids, Iowa 2000 James H. Keyes Chairman and Chief Executive Officer, Johnson Controls, Inc., 2001 Milwaukee, Wisconsin Connie E. Evans President, Women's Self-Employment Project, Chicago, Illinois 2002 Class C Lester H. McKeever, Jr. Managing Partner, Washington, Pittman & McKeever, Chicago, Illinois 2000 Arthur C. Martinez Chairman and Chief Executive Officer, Sears, Roebuck and Co., 2001 Hoffman Estates, Illinois Robert J. Darnall Chairman and Chief Executive Officer, Prime Advantage Chicago, 2002 Chicago, Illinois DETROIT BRANCH Appointed by the Federal Reserve Bank David J. Wagner Chairman, President, and Chief Executive Officer, Old Kent Financial 2000 Corporation, Grand Rapids, Michigan Richard M. Bell President and Chief Executive Officer, The First National Bank of 2001 Three Rivers, Three Rivers, Michigan Edsel B. Ford II Board Director, Ford Motor Company, Dearborn, Michigan 2002 Irma B. Elder President, Elder Ford, Troy, Michigan 2002 Appointed by the Board of Governors Timothy D. Leuliette Senior Managing Director and Chief Executive Officer, Heartland 2000 Industrial Partners LP, Bloomfield Hills, Michigan Stephen R. Polk Chairman and Chief Executive Officer, R.L. Polk & Co., 2001 Southfield, Michigan Elizabeth Bunn Vice President, International Union UAW, Detroit, Michigan 2002 DISTRICT 8—ST. LOUIS Class A Michael A. Alexander Chairman and President, First National Bank, Mt. Vernon, Illinois 2000 Thomas H. Jacobsen Chairman, Firstar Corporation, Milwaukee, Wisconsin 2001 Lunsford W. Bridges President and Chief Executive Officer, Metropolitan National Bank, 2002 Little Rock, Arkansas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

360 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 8—ST. LOUIS—Continued December 31 Class B Robert L. Johnson Chairman and Chief Executive Officer, Johnson Bryce, Inc., 2000 Memphis, Tennessee Bert Greenwalt Partner, Greenwalt Company, Hazen, Arkansas 2001 Joe Gliessner Executive Director, New Directions Housing Corp., 2002 Louisville, Kentucky Class C Susan S. Elliott Chairman and Chief Executive Officer, Systems Service Enterprises, Inc., 2000 St. Louis, Missouri Charles W. Mueller Chairman, President, and Chief Executive Officer, Ameren Corporation, 2001 St. Louis, Missouri Gayle P.W. Jackson Managing Director, Lange, Mullen & Bohn, LLC, Global Financial 2002 Solutions, St. Louis, Missouri LITTLE ROCK BRANCH Appointed by the Federal Reserve Bank Raymond E. Skelton Chief Executive Officer, Mercantile Bank of Arkansas, N.A., 2000 Little Rock, Arkansas Lawrence A. Davis, Jr. Chancellor, University of Arkansas at Pine Bluff, 2001 Pine Bluff, Arkansas Everett Tucker III Moses Nosari Tucker Real Estate, Little Rock, Arkansas 2002 Ross M. Whipple Chairman, Summit Bank, Arkadelphia, Arkansas 2002 Appointed by the Board of Governors Diana T. Hueter President and Chief Executive Officer, Hueter & Associates, Inc., 2000 Little Rock, Arkansas Vick M. Crawley Plant Manager, Baxter Healthcare Corporation, Mountain Home, Arkansas 2001 A. Rogers Yarnell II President, Yarnell Ice Cream Co., Inc., Searcy, Arkansas 2002 LOUISVILLE BRANCH Appointed by the Federal Reserve Bank Frank J. Nichols Chairman, President, and Chief Executive Officer, Community Financial 2000 Services, Inc., Benton, Kentucky Orson Oliver President, Mid-America Bank of Louisville, Louisville, Kentucky 2001 Larry E. Dunigan Chairman and Chief Executive Officer, Holiday Management Corp., 2002 Evansville, Indiana Edwin K. Page Vice President, External Affairs, AP Technoglass Co., 2002 Elizabethtown, Kentucky Appointed by the Board of Governors Debbie Scoppechio Chairman and Chief Executive Officer, Creative Alliance, Inc., 2000 Louisville, Kentucky Roger Reynolds President and Chief Executive Officer, Reynolds Coatings, LLC, 2001 Louisville, Kentucky J. Stephen Barger Executive Secretary-Treasurer, Kentucky State District Council of 2002 Carpenters, AFL-CIO, Frankfort, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 361 Term Expires DISTRICT 8—ST. LOUIS—Continued DECEMBER 31 MEMPHIS BRANCH Appointed by the Federal Reserve Bank E.C. Neelly III Chief Executive Officer, First American National Bank, Iuka, Mississippi 2000 Walter L. Morris, Jr. President, H&M Lumber Co., Inc., West Helena, Arkansas 2001 James A. England Chairman, President, and Chief Executive Officer, Decatur County Bank, 2002 Decaturville, Tennessee John C. Kelley, Jr. President, Business Financial Services, First Tennessee Bank, 2002 Memphis, Tennessee Appointed by the Board of Governors Carol G. Crawley Senior Vice President, Memphis Area Chamber of Commerce, 2000 Memphis, Tennessee Gregory M. Duckett Senior Vice President and Corporate Counsel, Baptist Memorial Health 2001 Care Corporation, Memphis, Tennessee Mike P. Sturdivant, Jr. Partner, Due West, Glendora, Mississippi 2002 DISTRICT 9—MINNEAPOLIS Class A Bruce Parker President, Norwest Bank Montana, Billings, Montana 2000 W.W. LaJoie Chief Executive Officer and Chairman, Central Savings Bank, 2001 Sault Ste. Marie, Michigan Roger N. Berglund Chairman and President, Dakota Western Bank, Bowman, North Dakota 2002 Class B Kathryn L. Ogren Owner, Bitterroot Motors, Missoula, Montana 2000 Jay F. Hoeschler President and Owner, Hoeschler Corporation, La Crosse, Wisconsin 2001 Rob L. Wheeler Vice President, Wheeler Mfg. Co., Inc., Lemmon, South Dakota 2002 Class C Ronald N. Zwieg President, United Food & Commercial Workers, Local 653, 2000 Plymouth, Minnesota James J. Howard Chairman, President, and Chief Executive Officer, Northern States Power 2001 Company, Minneapolis, Minnesota Linda Hall Whitman President, Ceridian Performance Partners, Minneapolis, Minnesota 2002 HELENA BRANCH Appointed by the Federal Reserve Bank Emil W. Erhardt Chairman and President, Citizens State Bank, Hamilton, Montana 2000 Sandra M. Stash, P.E. Vice President, Environmental Services, ARCO Environmental 2000 Remediation L.L.C., Anaconda, Montana Richard E. Hart President, Mountain West Bank, Great Falls, Montana 2001 Appointed by the Board of Governors William P. Underriner General Manager, Selover Buick Inc., Billings, Montana 2000 Thomas O. Markle President and Chief Executive Officer, Markle's Inc., Glasgow, Montana 2001 DISTRICT 10—KANSAS CITY Class A Bruce A. Schriefer President, Bankers' Bank of Kansas, Wichita, Kansas 2000 Jeffrey L. Gerhart President and Chief Executive Officer, First Nationai Bank, 2001 Newman Grove, Nebraska Dennis E. Barrett Vice Chairman, FirstBank Holding Company of Colorado, 2002 Lakewood, Colorado Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

362 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 10—-KANSAS CITY—Continued December 31 Class B Hans Helmerich President and Chief Executive Officer, Helmerich & Payne, Inc., 2000 Tulsa, Oklahoma Frank A. Potenziani M & T Trust, Albuquerque, New Mexico 2001 Paula Marshall-Chapman Chief Executive Officer, The Bama Companies, Inc., Tulsa, Oklahoma 2002 Class C Terrence P. Dunn President and Chief Executive Officer, J.E. Dunn Construction Company, 2000 Kansas City, Missouri Jo Marie Dancik Area Managing Partner, Ernst & Young, LLP, Minneapolis, Minnesota 2001 Rhonda Holman Vice President, Kauffman Center for Entrepreneurial Leadership at the 2002 Ewing Marion Kauffman Foundation, Kansas City, Missouri DENVER BRANCH Appointed by the Federal Reserve Bank Robert M. Murphy President, Sandia Properties Ltd., Co., Albuquerque, New Mexico 2000 John W. Hay III President, Rock Springs National Bank, Rock Springs, Wyoming 2000 Albert C. Yates President, Colorado State University, Ft. Collins, Colorado 2001 C.G. Mammel President and Chief Executive Officer, The Bank of Cherry Creek, N.A., 2002 Denver, Colorado Appointed by the Board of Governors Kathryn A. Paul President—Western Operations (Retired), Kaiser Permanente, 2000 Denver, Colorado James A. King Chief Executive Officer, BT, Inc., Riverton, Wyoming 2001 Kathleen Avila Partner and Chief Executive Officer, Avila Retail, Albuquerque, 2002 New Mexico OKLAHOMA CITY BRANCH Appointed by the Federal Reserve Bank Michael S. Samis President and Chief Executive Officer, Macklanburg-Duncan Co., 2000 Oklahoma City, Oklahoma Betty Bryant Shaull President-Elect and Director, Bank of Cushing and Trust Company, 2001 Cushing, Oklahoma W. Carlisle Mabrey III President and Chief Executive Officer, Citizens Bank & Trust Co., 2001 Okmulgee, Oklahoma William H. Braum President, Braum Ice Cream Co., Oklahoma City, Oklahoma 2002 Appointed by the Board of Governors Patricia B. Fennell Executive Director, Latino Community Development Agency, 2000 Oklahoma City, Oklahoma David L. Kruse II Senior Vice President, American Airlines, Inc., Tulsa, Oklahoma 2001 Larry W. Brummett Chairman, President, and Chief Executive Officer, ONEOK, Inc., 2002 Tulsa, Oklahoma OMAHA BRANCH Appointed by the Federal Reserve Bank Frank L. Hayes President, Hayes & Associates, L.L.C., Omaha, Nebraska 2000 H.H. Kosman Chairman, President, and Chief Executive Officer, Platte Valley National 2000 Bank, Scottsbluff, Nebraska Bill L. Fairfield Omaha, Nebraska 2001 Judith A. Owen President and Chief Executive Officer, Norwest Bank Nebraska, N.A., 2002 Omaha, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 363 Term Expires DISTRICT 10—KANSAS CITY—Continued December 31 OMAHA BRANCH—Continued Appointed by the Board of Governors A.F. Raimondo Chairman and Chief Executive Officer, Behlen Mfg. Co., 2000 Columbus, Nebraska Gladys Styles Johnston Chancellor, University of Nebraska at Kearney, Kearney, Nebraska 2001 Bob L. Gottsch Vice President, Gottsch Feeding Corporation, Hastings, Nebraska 2002 DISTRICT 11—DALLAS Class A Kirk A. McLaughlin President and Chief Executive Officer, Security Bank, Ralls, Texas 2000 Dudley K. Montgomery President and Chief Executive Officer, The Security State Bank of Pecos, 2001 Pecos, Texas Kenneth T. Murphy Chairman, President, and Chief Executive Officer, First Financial 2002 Bankshares, Inc., Abilene, Texas Class B Judy Ley Allen Partner, Allen Investments, Houston, Texas 2000 Julie S. England Vice President, Texas Instruments, Dallas, Texas 2001 Malcolm Gillis President, Rice University, Houston, Texas 2002 Class C Chairman and Chief Executive Officer, H.B. Zachry Company, 2000 H.B. Zachry, Jr. San Antonio, Texas Chairman Emeritus, Ultramar Diamond Shamrock Corp., 2001 Roger R. Hemminghaus San Antonio, Texas President, Patterson Investments, Inc., Dallas, Texas 2002 Patricia M. Patterson EL PASO BRANCH Appointed by the Federal Reserve Bank Cecil E. Nix Member, International Brotherhood of Electrical Workers, Local 460, 2000 Midland, Texas Lester L. Parker President and Chief Executive Officer, United Bank of El Paso, 2001 El Paso, Texas James D. Renfrow President and Chief Executive Officer, The Carlsbad National Bank, 2002 Carlsbad, New Mexico Melissa W. O'Rourke President, Charlotte's Inc., El Paso, Texas 2002 Appointed by the Board of Governors Gail S. Darling President, Gail Darling Inc., El Paso, Texas 2000 Beauregard Brite White Rancher, J.E. White, Jr. & Sons, Marfa, Texas 2001 James Haines Chief Executive Officer and President, El Paso Electric Company, 2002 El Paso, Texas HOUSTON BRANCH Appointed by the Federal Reserve Bank Alan R. Buckwalter III Chairman and Chief Executive Officer, Chase Bank of Texas, N.A., 2000 Houston, Texas Richard W. Weekley Chairman, Weekley Development Company, Houston, Texas 2001 Ray B. Nesbitt President (Retired), Exxon Chemical Company, Houston, Texas 2002 Priscilla D. Slade President, Texas Southern University, Houston, Texas 2002 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

364 Federal Reserve Bulletin • May 2000 Term Expires DISTRICT 11—DALLAS—Continued December 31 HOUSTON BRANCH—Continued Appointed by the Board of Governors Jeffrey K. Skilling President and Chief Operating Officer, Enron Corporation, 2000 Houston, Texas Edward O. Gay lord Chairman, Jacintoport Terminal Company, Houston, Texas 2001 Peggy Pearce Caskey President, PPC Holdings, L.L.C., Houston, Texas 2002 SAN ANTONIO BRANCH Appointed by the Federal Reserve Bank Arthur R. Emerson Vice President/General Manager, KVDA-TV 60, San Antonio, Texas 2000 R. Tom Roddy Chairman, CaminoReal Bank, San Antonio, Texas 2001 Mary Rose Cardenas Executive Vice President, Cardenas Motors, Inc., Brownsville, Texas 2002 Daniel B. Hastings, Jr. President and Owner, Daniel B. Hastings, Inc., Laredo, Texas 2002 Appointed by the Board of Governors Marvin L. Ragsdale President, Iron Workers District Council of the State of Texas, 2000 Austin, Texas Ron R. Harris President and Chief Executive Officer, Pervasive Software, 2001 Austin, Texas Patty P. Mueller Vice President, Mueller Energetics Corp., Corpus Christi, Texas 2002 DISTRICT 12—SAN FRANCISCO Class A John V. Rindlaub President, Northwest Region, Bank of America, Seattle, Washington 2000 Warren K.K. Luke Chairman and Chief Executive Officer, Hawaii National Bank, 2001 Honolulu, Hawaii E. Lynn Caswell Vice Chairman and Chief Executive Officer, EarthOne Capital Group.com, 2002 Laguna Hills, California Class B Krestine Corbin President and Chief Executive Officer, Sierra Machinery, Inc., 2000 Sparks, Nevada George M. Scalise President, Semiconductor Industry Association, San Jose, California 2001 Robert S. Attiyeh Senior Vice President and Chief Financial Officer (Retired), and 2002 Consultant, Amgen, Inc., Los Angeles, California Class C Nelson C. Rising President and Chief Executive Officer, Catellus Development Corporation, 2000 San Francisco, California Sheila D. Harris Consultant, Harris Consulting, Litchfield Park, Arizona 2001 Gary G. Michael Chairman and Chief Executive Officer, Albertson's, Inc., 2002 Boise, Idaho LOS ANGELES BRANCH Appointed by the Federal Reserve Bank Liam E. McGee President, Bank of America Southern California, Los Angeles, California 2000 Linda Griego Managing Partner, Engine Co. No. 28, Los Angeles, California 2000 Russell Goldsmith Chairman and Chief Executive Officer, City National Bank, 2001 Beverly Hills, California John H. Gleason Executive Vice President, Del Webb Corporation, Phoenix, Arizona 2002 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Directors of Federal Reserve Banks and Branches 365 Term Expires DISTRICT 12—SAN FRANCISCO—Continued DECEMBER 31 LOS ANGELES BRANCH—Continued Appointed by the Board of Governors Lonnie Kane President, Karen Kane, Inc., Los Angeles, California 2000 William D. Jones Chairman, President, and Chief Executive Officer, CityLink Investment 2001 Corporation, San Diego, California Lori R. Gay President, Los Angeles Neighborhood Housing Service, 2002 Los Angeles, California PORTLAND BRANCH Appointed by the Federal Reserve Bank Guy L. Williams President and Chief Executive Officer, Security Bank, Coos Bay, Oregon 2000 Vacancy 2001 Phyllis A. Bell President, Oregon Coast Aquarium, Newport, Oregon 2002 Martin Brantley President and General Manager, Oregon's 12—KPTV, Portland, Oregon 2002 Appointed by the Board of Governors Patrick Borunda Director, Oweesta Fund, First Nation's Development Institute, 2000 Vancouver, Washington Karla S. Chambers Vice President, Stahlbush Island Farms, Inc., Corvallis, Oregon 2001 Nancy Wilgenbusch President, Marylhurst University, Marylhurst, Oregon 2002 SALT LAKE CITY BRANCH Appointed by the Federal Reserve Bank R.D. Cash Chairman, President, and Chief Executive Officer, Questar Corporation, 2000 Salt Lake City, Utah Curtis H. Harris Chairman, President, and Chief Executive Officer, Barnes Banking 2001 Company, Kaysville, Utah J. Pat McMurray President, First Security Bank, N.A., Boise, Idaho 2002 Maria Garciaz Executive Director, Salt Lake Neighborhood Housing Services, 2002 Salt Lake City, Utah Appointed by the Board of Governors Barbara L. Wilson Idaho and Regional Vice President, U. S. West, Boise, Idaho 2000 Vacancy 2001 H. Roger Boyer Chairman, The Boyer Company, Salt Lake City, Utah 2002 SEATTLE BRANCH Appointed by the Federal Reserve Bank Betsy Lawer Vice Chair and Chief Operating Officer, First National Bank of Anchorage, 2000 Anchorage, Alaska Peter H. van Oppen Chairman and Chief Executive Officer, Advanced Digital Information 2001 Corp., Redmond, Washington Mary E. Pugh President, Pugh Capital Management, Inc., Seattle, Washington 2002 James C. Hawkanson Managing Director and Chief Executive Officer, The Commerce Bank of 2002 Washington, N.A., Seattle, Washington Appointed by the Board of Governors Richard R. Sonstelie Chairman, Puget Sound Energy, Inc., Bellevue, Washington 2000 Helen M. Rockey Seattle, Washington 2001 Boyd E. Givan Senior Vice President and Chief Financial Officer (Retired), 2002 The Boeing Company, Seattle, Washington Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

366 Federal Reserve Bulletin • May 2000 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued A27 Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A3 2 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A32 Domestic finance companies—Assets and liabilities A3 3 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A34 Mortgage markets—New homes A3 5 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock and debt measures Consumer Credit A36 Total outstanding Commercial Banking Institutions— A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets 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 U.S. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • May 2000 INTERNATIONAL STATISTICS Securities Holdings and Transactions A60 Foreign transactions in securities Summary Statistics A61 Marketable U.S. Treasury bonds and A50 U.S. international transactions notes—Foreign transactions A51 U.S. foreign trade A51 U.S. reserve assets Interest and Exchange Rates A51 Foreign official assets held at Federal Reserve A62 Foreign exchange rates Banks A52 Selected U.S. liabilities to foreign official A63 GUIDE TO STATISTICAL RELEASES AND institutions SPECIAL TABLES Reported by Banks in the United States SPECIAL TABLES A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A64 Assets and liabilities of commercial banks, A55 Banks' own claims on foreigners December 31, 1999 A56 Banks' own and domestic customers' claims on A66 Terms of lending at commercial banks, foreigners February 2000 A56 Banks' own claims on unaffiliated foreigners A72 Assets and liabilities of U.S. branches and agencies A57 Claims on foreign countries—Combined of foreign banks, December 31, 1999 domestic offices and foreign branches A76 INDEX TO STATISTICAL TABLES Reported by Nonbanking Business Enterprises in the United States A58 Liabilities to unaffiliated foreigners A59 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 Nonfinancial Statistics • May 2000 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999 1999r 2000 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Ql Q2 Q31 Q4r Oct. Nov. Dec. Jan.1 Feb. Reserves of depository institutions2 1 Total -1.2 -6.6 -15.4 -7.9 -33.3 7.5 9.4 47.0 -46.3 2 Required 1.0 -5.6 -15.0 —9.4 -33.0 2.2 10.4 27.2 -22.0 3 Nonborrowed -1.3 -6.7 -17.1 -7.5 -32.0 8.9 7.0 45.8 -39.2 4 Monetary base3 8.7 9.6 9.2 20.0 16.4 25.6 44.2 1.3 -38.1 Concepts of money and debt4 5 Ml 1.9 2.1 -1.8 4.9 5.6 9.0 15.6 -3.1 -17.0 6 M2 7.5 6.0 5.2 5.0 4.2 4.9 7.3 5.9 2.2 7 M3 8.2 6.0 4.9 9.7 9.2 14.4 16.8 8.1 4.2 8 Debt 6.7 Iff 6.1 6.4 6.4 4.7 6.8 6.0 n.a. Nontransaction components 9 In M25 9.3 7.3 7.5 5.0 3.8 3.7 4.6 8.8 8.2 10 In M3 only6 10.1 5.9 4.0 22.8 22.9 39.9 41.9 13.7 9.2 Time and savings deposits Commercial banks 11 Savings, including MMDAs 14.0 10.7 10.6 4.2 3.7 -.7 -3.1 2.1 12.4 12 Small time7 -5.2 -2.0 2.1 6.8 6.6 9.0 8.2 7.4 9.2 13 Large time8'9 .5 -.9 .2 36.9 50.2 52.7 47.8 6.3 19.0 Thrift institutions 14 Savings, including MMDAs 14.2 14.5 13.3 -3.3 -6.1 -4.5 -8.0 -3.7 7.2 15 Small time7 -6.7r -6.3 -3.2 5.0 4.2 8.3 6.4 8.2 2.2 16 Large time8 8.0 -4.4 1.2 6.3 .0 20.1 5.3 36.8 7.6 Money market mutual funds 17 Retail 18.7 11.2 8.0 9.4 7.1 9.2 20.2 26.9 4.1 18 Institution-only 19.8 14.1 9.3 21.4 22.9 29.9 31.0 31.8 -11.5 Repurchase agreements and Eurodollars 19 Repurchase agreements10 17.4 -1.2r 9.1 12.8 -.4 31.0 49.3 -20.4 47.4 20 Eurodollars10 -1.3 21.7 -9.7 9.1 -11.6 61.4 65.8 29.5 -21.2 Debt components4 21 Federal -3.1 -2.3 -.3 -4.4 -5.8 -7.7 .8 -4.4 n.a. 22 Nonfederal 9.6 9.7 8.0 9.4 9.8 8.1 8.4 8.8 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 2000 Dec. Jan. Feb. Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 595,909 582,309 556,692 589,581 571,877 565,741 558,370 555,751 557,686 557,049 U.S. government securities2 2 Bought outright—System account 492,467 491,902 501,923 484,695 494,824 497,578 500,503 501,838 502,470 502,193 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 181 180 158 181 181 179 175 175 150 150 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 68,012 53,099 19,991 67,421 40,754 28,821 21,143 18,419 19,826 21,041 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 160 315 40 856 242 117 82 41 27 42 9 Seasonal credit 69 30 44 31 28 27 24 29 44 52 10 Special Liquidity Facility credit 74 48 17 127 16 17 33 17 19 15 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 761 1,344 679 1,032 403 3,365 976 201 667 1,010 13 Other Federal Reserve assets 34,186 35,392 33,840 35,238 35,430 35,637 35,434 35,030 34,483 32,546 14 Gold stock 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 15 Special drawing rights certificate account 6,652 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 16 Treasury currency outstanding 27,928 28,177 28,314 28,146 28,192 28,237 28,282 28,296 28,310 28,324 ABSORBING RESERVE FUNDS 17 Currency in circulation . .. . 601,159 587,982 565,424 599,272 581,666 571,880 566,817 565,669 565,704 565,747 18 Reverse repurchase agreements—triparty . .. 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 110 121 148 121 122 125 126 131 146 162 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 8,250 8,148 5,259 5,326 5,390 7,205 6,131 5,259 5,306 5,334 21 Foreign 136 93 92 74 101 83 146 91 88 81 22 Service-related balances and adjustments . . 7,513 7,676r 7,415 7,967 7,473 7,771 7,230 7,872 7,895 6,960 23 Other 248 361 244 191 250 237 248 249 237 238 24 Other Federal Reserve liabilities and capital . 18,505 18,240 18,684 18,188 18,446 18,491 18,344 18,469 18,795 18,823 25 Reserve balances with Federal Reserve Banks' 5,616 5,114 4,987 3,835 3,870 5,434 4,859 3,556 5,074 5,278 End-of-month figures Wednesday figures Dec. Jan. Feb. Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 653,561 561,444 558,483 585,632 568,808 571,162 554,775 563,385 557,308 560,717 U.S. government securities2 2 Bought outright—System account 477,963 500,228 500,771 485,719 496,110 499,138 501,078 502,331 502,699 500,423 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 181 175 150 181 181 175 175 175 150 150 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 140,640 23,105 24,768 62,895 34,610 25,105 19,110 25,280 21,505 24,2550 7 Acceptances 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 140 86 29 946 127 154 77 37 19 48 9 Seasonal credit 47 21 64 32 32 23 27 41 49 53 10 Special Liquidity Facility credit 47 22 16 22 13 21 23 17 18 16 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float -237 2,986 339 365 2,335 10,713 -629 242 482 2,998 13 Other Federal Reserve assets 34,781 34,820 32,347 35,472 35,401 35,832 34,914 35,262 32,385 32,775 14 Gold stock 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 15 Special drawing rights certificate account 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 16 Treasury currency outstanding 28,013 28,282 28,338 28,146 28,192 28,237 28,282 28,296 28,310 28,324 ABSORBING RESERVE FUNDS 17 Currency in circulation 628,359 566,568 564,593 589,928 577,837 569,593 566,771 566,967 566,545 566,033 18 Reverse repurchase agreements—triparty4 . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 109 125 162 121 125 125 129 143 162 162 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 28,402 6,119 5,004 5,454 3,716 8,780 4,896 4,860 4,775 4,818 21 Foreign 71 82 129 110 80 81 143 81 108 107 22 Service-related balances and adjustments . . 7,867 7,230 6,917 7,967 7,473 7,771 7,231 7,872 7,895 6,960 23 Other 1,261 265 243 229 256 237 266 247 256 238 24 Other Federal Reserve liabilities and capital . 17,256 18,101 18,785 18,019 18,187 18,363 17,802 18,487 18,548 18,609 25 Reserve balances with Federal Reserve Banks" 15,498 8,484 8,237 9,200 6,574 11,697 3,069 10,273 4,578 9,362 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 Nonfinancial Statistics • May 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. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. 1 Reserve balances with Reserve Banks" 10,664 9,021 5,260 7,802 7,698 6,768 6,285 5,260 5,207 5,072 2 Total vault cash3 44,742 44,293 60,499 44,603 44,447 47,030 50,754 60,499 73,898 63,745 3 Applied vault cash4 37,255 35,997 36,384 34,069 34,089 33,933 34,660 36,384 39,097 37,015 4 Surplus vault cash5 7,486 8,296 24,116 10,533 10,359 13,096 16,094 24,116 34,802 26,731 5 Total reserves6 47,920 45,018 41,643 41,871 41,787 40,702 40,944 41,643 44,304 42,087 6 Required reserves 46,235 43,435 40,332 40,742 40,590 39,549 39,610 40,332 42,279 40,971 7 Excess reserve balances at Reserve Banks7 1,685 1,583 1,311 1,129 1,197 1,153 1,334 1,311 2,025 1,116 8 Total borrowing at Reserve Banks 324 117 320 344 338 281 236 320 374 108 9 Adjustment 245 101 179 72 56 52 157 179 296 45 10 Seasonal 79 15 67 271 282 221 71 67 31 44 11 Special Liquidity Facility8 74 0 8 7 74 46 19 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 Nov. 3 Nov. 17 Dec. 1 Dec. 15 Dec. 29 Jan. 12 Jan. 26r Feb. 9r Feb. 23 Mar. 8 1 Reserve balances with Reserve Banks2 6,721 6,524 5,927 5,434 4,888 6,308 4,644 4,145 5,172 6,233 2 Total vault cash3 47,593 49,519 52,813 56,693 63,663 68,851 75,759 80,804 58,780 49,745 3 Applied vault cash4 34,014 34,046 35,470 35,346 37,329 37,491 40,031 40,334 36,271 33,772 4 Surplus vault cash5 13,579 15,474 17,343 21,347 26,334 31,360 35,728 40,470 22,509 15,973 5 Total reserves6 40,735 40,569 41,397 40,780 42,217 43,799 44,675 44,479 41,443 40,005 6 Required reserves 39,742 39,196 40,027 39,682 40,956 40,674 43,278 43,333 40,260 39,090 7 Excess reserve balances at Reserve Banks7 993 1,373 1,370 1,098 1,261 3,125 1,396 1,146 1,183 915 8 Total borrowing at Reserve Banks 246 329 133 181 425 657 224 114 100 119 9 Adjustment 72 263 64 94 222 530 180 62 35 44 10 Seasonal 153 62 62 61 79 38 28 27 48 61 11 Special Liquidity Facility8 22 5 7 27 124 90 17 25 17 15 12 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 8. Borrowing at the discount window under the terms and conditions established for the those banks and thrift institutions that are not exempt from reserve requirements. Dates refer Century Date Change Special Liquidity Facility in effect from October 1, 1999 through to the maintenance periods in which the vault cash can be used to satisfy reserve require- April 7, 2000. ments. 9. Consists of borrowing at the discount window under the terms and conditions estab- 4. All vault cash held during the lagged computation period by "bound" institutions (that lished for the extended credit program to help depository institutions deal with sustained is, those whose required reserves exceed their vault cash) plus the amount of vault cash liquidity pressures. Because there is not the same need to repay such borrowing promptly as applied during the maintenance period by "nonbound" institutions (that is, those whose vault with traditional short-term adjustment credit, the money market effect of extended credit is cash exceeds their required reserves) to satisfy current reserve requirements. similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit Extended credit3 Special Liquidity Facility credit Federal Reserve Bank On Effective Previous On Effective Previous On Effective Previous On Effective 4/7/00 date rate 4/7/00 date rate 4/7/00 date rate 4/7/00 date Boston 3/21/00 New York . . . 3/21/00 Philadelphia . 3/21/00 Cleveland .. . 3/21/00 Richmond . .. 3/21/00 Atlanta 3/21/00 Chicago 3/21/00 St. Louis 3/22/00 Minneapolis . 3/21/00 Kansas City . . 3/21/00 Dallas 3/23/00 San Francisco 3/22/00 6.45 7.50 3/21/00 7.25 Range of rates for adjustment credit in recent years Range (or F.R. Bank Range (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 17 ... . 4.75 4.75 July 3 7-7.25 7.25 17 8.5 8.5 10 7.25 7.25 1995—Feb. 1 . . . . 4.75-5.25 5.25 Aug. 21 7.75 7.75 1984—Apr. 9 8.5-9 9 9 .... 5.25 5.25 Sept. 22 8 13 9 9 Oct. 16 8.5 Nov. 21 8.5-9 8.5 1996—Jan. 31.... 5.00-5.25 5.00 20 8.5 8.5 26 8.5 8.5 Feb. 5 . . . . 5.00 5.00 Nov. 1 8.5-9.5 9.5 Dec. 24 8 8 3 9.5 9.5 1998—Oct. 15 4.75-5.00 4.75 1985—May 20 7.5-8 7.5 16 .... 4.75 4.75 1979—July 20 10 10 24 7.5 7.5 Nov. 17 ... . 4.50-4.75 4.50 Aug. 17 10-10.5 10.5 19 ... . 4.50 4.50 20 10.5 10.5 1986—Mar. 7 7-7.5 7 Sept. 19 10.5-11 11 10 7 7 1999—Aug. 24 4.50-4.75 4.75 21 11 11 Apr. 21 6.5-7 6.5 26 .... 4.75 4.75 Oct. 8 11-12 12 23. 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 12 12 July 11 6 6 18 5.00 5.00 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 13 22 5.5 5.5 2000—Feb. 2 .... 5.00-5.25 5.25 19 13 13 4 .... 5.25 5.25 May 29 12-13 13 1987—Sept. 4 5.5-6 6 Mar. 21 ... . 5.25-5.50 5.50 30 12 12 11 6 6 23 ... . 5.50 5.50 June 13 11-12 11 16 11 11 1988—Aug. 9 6-6.5 6.5 In effect Apr. 7, 2000 5.50 5.50 July 28 10-11 10 11 6.5 6.5 29 10 10 Sept. 26 11 11 1989—Feb. 24 6.5-7 7 Nov. 17 12 12 27 7 7 Dec. 5 12-13 13 8 13 13 1990—Dec. 19 6.5 6.5 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 14 14 4 6 6 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 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—4.5 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 30 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for ordinarily is reestablished on the first business day of each two-week reserve maintenance funds that cannot be met through reasonable alternative sources. The highest rate established period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis for loans to depository institutions may be charged on adjustment credit loans of unusual size points. that result from a major operating problem at the borrower's facility. 4. Available in the period between October 1, 1999, and April 7, 2000, to help depository 2. Available to help relatively small depository institutions meet regular seasonal needs for institutions in sound financial condition meet unusual needs for funds in the period around the funds that arise from a clear pattern of intrayearly movements in their deposits and loans and century date change. The interest rate on loans from the special facility is the Federal Open that cannot be met through special industry lenders. The discount rate on seasonal credit takes Market Committee's intended federal funds rate plus 150 basis points. into account rates charged by market sources of funds and ordinarily is reestablished on the 5. For earlier data, see the following publications of the Board of Governors: Banking and first business day of each two-week reserve maintenance period; however, it is never less than Monetary Statistics, 1914-1941, and 1941-1970', and the Annual Statistical Digest, 1970the discount rate applicable to adjustment credit. 1979. 3. May be made available to depository institutions when similar assistance is not In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit reasonably available from other sources, including special industry lenders. Such credit may borrowings by institutions with deposits of $500 million or more that had borrowed in be provided when exceptional circumstances (including sustained deposit drains, impaired successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was access to money market funds, or sudden deterioration in loan repayment performance) or in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed practices involve only a particular institution, or to meet the needs of institutions experiencing on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to difficulties adjusting to changing market conditions over a longer period (particularly at times 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the charged on extended-credit loans outstanding less than thirty days; however, at the discretion surcharge was changed from a calendar quarter to a moving thirteen-week period. The of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a surcharge was eliminated on Nov. 17, 1981. flexible rate somewhat above rates charged on market sources of funds is charged. The rate Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • May 2000 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit Net transaction accounts 1 $0 million-$44.3 million3. 12/30/99 2 More than $44.3 million4 . 12/30/99 3 Nonpersonal time deposits5 12/27/90 4 Eurocurrency liabilities6.. . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve Banks succeeding calendar year by 80 percent of the percentage increase in the total reservable or vault cash. Nonmember institutions may maintain reserve balances with a Federal liabilities of all depository institutions, measured on an annual basis as of June 30. No Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For corresponding adjustment is made in the event of a decrease. The exemption applies only to previous reserve requirements, see earlier editions of the Annual Report or the Federal accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions maintenance period beginning December 30, 1999, for depository institutions that report include commercial banks, savings banks, savings and loan associations, credit unions, weekly, and with the period beginning January 20, 2000, for institutions that report quarterly, agencies and branches of foreign banks, and Edge Act corporations. the exemption was raised from $4.9 million to $5.0 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on to make withdrawals by negotiable or transferable instruments, payment orders of with- Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that drawal, or telephone or preauthorized transfers for the purpose of making payments to third report quarterly. persons or others. However, accounts subject to the rules that permit no more than six 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits preauthorized, automatic, or other transfers per month (of which no more than three may be with an original maturity of less than 1 '/i 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 l/z years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 1 as of June 30 of each year. Effective with the reserve maintenance period beginning 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 '/2 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 July Aug. Sept. Oct. Nov. Dec. Jan. 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 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 435,907 450,835 464,218 42,037 37,052 42,643 35,844 36,882 42,468 37,029 4 For new bills 435,907 450,835 464,218 42,037 37,052 42,643 35,844 36,882 42,468 37,029 5 Redemptions 0 2,000 0 0 0 0 0 0 0 0 Others within one year 6 Gross purchases 5,549 6,297 11,895 951 429 960 0 996644 11,,445500 00 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 41,716 46,062 50,590 3,279 7,669 3,468 3,831 6,675 3,936 3,566 9 Exchanges -27,499 -49,434 -53,315 -368 -10,798 -2,125 -368 -10,150 -2,175 -4,360 10 Redemptions 1,996 2,676 1,429 41 0 0 170 0 0 390 One to five years 11 Gross purchases 20,080 12,901 19,731 0 1,272 0 0 1,014 33,,551144 116600 1? Gross sales 0 0 0 0 0 0 0 0 0 0 N Maturity shifts -37,987 -37,777 -44,032 -3,279 -4,751 -3,468 -3,831 -3,685 -3,936 -3,566 14 Exchanges 20,274 37,154 42,604 0 8,433 2,125 0 8,015 2,175 4,045 Five to ten years 15 Gross purchases 3,449 2,294 4,303 0 447 0 00 00 558811 880099 16 Gross sales 0 0 0 0 0 0 0 0 0 00 17 Maturity shifts -1,954 -5,908 -5,841 0 -2,918 0 0 — 2,273 0 0 18 Exchanges 5,215 7,439 7,583 373 1,290 0 0 2,135 0 316 More than ten years 19 Gross purchases 5,897 4,884 9,428 0 1,075 0 0 992255 11,,225577 11,,006699 70 Gross sales 0 0 0 0 0 0 0 0 0 0 ?1 Maturity shifts -1,775 -2,377 -717 0 0 0 0 -717 0 0 22 Exchanges 2,360 4,842 3,139 0 1,075 0 374 0 0 0 A11 maturities Gross purchases 44,122 29,926 45,357 951 3,223 960 0 2,903 66,,880022 22,,003388 74 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 41 0 0 170 0 0 390 Matched transactions 76 Gross purchases 3,577,954 4,395,430 4,395,998 347,067 374,032 348,014 332,708 317,537 488,845 449922,,227777 27 Gross sales 3,580,274 4,399,330 4,414,253 346,747 373,159 350,151 330,856 318,294 510,605 471,663 Repurchase agreements 78 Gross purchases 810,485 512,671 281,599 27,707 23,097 2299,,336699 110000 00 00 00 29 Gross sales 809,268 514,186 301,273 33,612 23,717 24,337 7,707 0 0 0 30 Net change in U.S. Treasury securities 41,022 19,835 5,999 -4,675 3,476 3,855 -5,924 2,146 -14,959 22,262 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 00 00 00 00 3? Gross sales 0 25 0 0 0 0 0 0 0 0 33 Redemptions 1.540 322 157 10 11 0 50 7 0 6 Repurchase agreements 34 Gross purchases 160,409 284,316 360,069 4466,,994411 6611,,996688 5533,,222244 99,,663366 00 00 00 35 Gross sales 159,369 276,266 370,772 48,840 56,053 47,963 24,092 0 0 0 36 Net change in federal agency obligations -500 7,703 -10,859 -1,909 5,904 5,261 -14,506 -7 0 -6 Reverse repurchase agreements 37 Gross purchases 0 0 00 00 00 00 00 00 00 00 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 0 304,989 0 0 0 6688,,006611 8811,,335500 115555,,557788 6611,,334455 40 Gross sales 0 0 164,349 0 0 0 45,501 54,470 64,378 178,880 41 Net change in triparty obligations 0 0 140,640 0 0 0 22,560 26,880 91,200 -117,535 42 Total net change in System Open Market Account. .. 40,522 27,538 135,780 -6,584 9,380 9,116 2,130 29,019 76,241 -95,279 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 • May 2000 t.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2000 1999 2000 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Dec. 31 Jan. 31 Feb. 29 Consolidated condition statement ASSETS 1 Gold certificate account 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 2 Special drawing rights certificate account 6.200 6.200 6,200 6,200 6,200 6,200 6,200 6,200 3 Coin 325 351 389 408 425 207 357 422 Loans 4 To depository institutions 198 127 95 86 117 233 130 109 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 25,105 19,110 25,280 21,505 24,255 140,640 23,105 2244,,776688 Federal agency obligations' 8 Bought outright 175 175 175 150 150 181 175 150 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 499,138 501,078 502,331 502,699 500,423 477,963 500,228 500,771 11 Bought outright4 499,138 501,078 502,331 502,699 500,423 477,963 500,228 500,771 12 Bills 197,111 197,981 199,234 199,601 197,326 176,517 197,131 197,674 13 219,012 219,013 219,013 217,843 217,843 218,467 219,013 217,843 14 Bonds 83,015 84,084 84,084 85,254 85,254 82,978 84,084 85,254 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 524,617 520,490 527,881 524,440 524,945 619,017 523,638 525,798 17 Items in process of collection 17,122 7,756 7,649 7,965 13,285 6,524 4,511 9,642 18 Bank premises 1,366 1,365 1,374 1,375 1,375 1,365 1,365 1,380 Other assets 19 Denominated in foreign currencies5 16,155 15,500 15,504 15,508 15,513 16,140 15,528 15,234 20 All other6 18,307 18,023 18,369 15,479 15,874 17,294 17,949 15,633 21 Total assets 595,140 580,733 588,414 582,423 588,665 677,795 580,597 585,357 LIABILITIES 22 Federal Reserve notes 541,807 538,969 539,203 538,804 538,296 600,662 538,768 536,839 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 28,592 16,116 23,243 17,632 21,703 53,760 21,789 20,548 25 Depository institutions 19,494 10,812 18,055 12,493 16,539 24,027 15,322 15,173 26 U.S. Treasury—General account 8,780 4,896 4,860 4,775 4,818 28,402 6,119 5,004 27 Foreign—Official accounts 81 143 81 108 107 71 82 129 28 Other 237 266 247 256 238 1,261 265 243 79 Deferred credit items 6,379 7.845 7,481 7,439 10,056 6,117 1,939 9,186 30 Other liabilities and accrued dividends7 4,465 4,410 4,715 4,716 4,689 4,392 4,461 4,683 31 Total liabilities 581,243 567,341 574,642 568,591 574,744 664,931 566,957 571,256 CAPITAL ACCOUNTS 3? Capital paid in 6,648 6.650 6,664 6,678 6,697 6,432 6,650 6,699 33 Surplus 6,432 6,325 6,364 6,404 6,431 6,432 6,314 6,404 34 Other capital accounts 818 417 744 751 792 0 676 999 35 Total liabilities and capital accounts 595,140 580,733 588,414 582,423 588,665 677,795 580,597 585,357 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) 811,652 807,687 805,873 804,031 801,624 821,959 809,367 799,674 38 LESS: Held by Federal Reserve Banks 269,846 268,717 266,670 265,227 263,327 221,297 270,599 262,835 39 Federal Reserve notes, net 541,807 538,969 539,203 538,804 538,296 600,662 538,768 536,839 Collateral held against notes, net 40 Gold certificate account 11,048 11,048 11,048 11,048 11,048 11,048 11,048 11,048 41 Special drawing rights certificate account 6,200 6,200 6,200 6,200 6,200 6,200 6,200 6,200 42 Other eligible assets 140 1,358 0 0 0 0 0 0 43 U.S. Treasury and agency securities 524,418 520,363 521,955 521,556 521,048 583,414 521,520 519,590 44 Total collateral 541,807 538,969 539,203 538,804 538,296 600,662 538,768 536,839 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 2000 1999 2000 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 Dec. 31 Jan. 31 Feb. 29 1 Total loans 198 127 95 86 117 233 130 109 2 Within fifteen days' 175 79 54 71 99 207 101 81 3. Sixteen days to ninety days 23 48 41 15 18 20 29 28 4. 91 days to 1 year 0 0 0 0 0 7 0 0 5 Total U.S. Treasury securities2 499,138 501,078 502,331 502,699 500,423 477,963 500,228 500,771 6 Within fifteen days1 16,070 20,579 15,184 16,535 14,512 4,632 20,547 13,372 7 Sixteen days to ninety days 100,111 101,043 102,705 102,973 102,796 91,919 100,224 106,030 8 Ninety-one days to one year 141,636 136,588 141,573 139,878 139,803 139,866 136,588 138,688 9 One year to five years 124,330 124,808 124,808 124,578 124,578 124,169 124,808 123,947 10 Five years to ten years 50,720 50,720 50,720 50,941 50,941 51,107 50,720 50,941 11 More than ten years 66,271 67,340 67,340 67,793 67,793 66,270 67,340 67,793 12 Total federal agency obligations 175 175 175 150 150 181 175 150 13 Within fifteen days1 25 25 25 0 0 0 25 0 14 Sixteen days to ninety days 10 10 10 10 10 31 10 10 15 Ninety-one days to one year 10 10 10 10 10 20 10 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 10 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 • May 2000 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 2000 1996 1997 1998 1999 IItteemm Dec. Dec. Dec. Dec. July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 50.16 46.86 44.90 41.52 41.98 42.07 42.11 40.94 41.20 41.52 43.15 41.48 2 Nonborrowed reserves4 50.01 46.54 44.79 41.20 41.67 41.72 41.77 40.66 40.96 41.20 42.77 41.38 3 Nonborrowed reserves plus extended credit5 50.01 46.54 44.79 41.20 41.67 41.72 41.77 40.66 40.96 41.20 42.77 41.38 4 Required reserves 48.75 45.18 43.32 40.21 40.90 40.94 40.92 39.79 39.86 40.21 41.12 40.37 5 Monetary base6 451.61 479.16 512.59 590.65r 541.25 544.63 550.22 557.75r 569.66r 590.65r 591.30 572.51 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.12 41.72 41.85 41.92 41.85 40.77 41.02 41.72 44.29 42.10 7 Nonborrowed reserves 51.30 47.69 45.00 41.40 41.54 41.58 41.51 40.49 40.78 41.40 43.92 41.99 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.00 41.40 41.54 41.58 41.51 40.49 40.78 41.40 43.92 41.99 9 Required reserves8 50.04 46.33 43.54 40.41 40.77 40.79 40.65 39.62 39.68 40.41 42.27 40.98 10 Monetary base9 456.63 484.98 518.28 600.46r 540.98 543.87 548.13 555.51 571.89 600.46r 597.03 571.68 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 51.17 47.92 45.02 41.64 41.80 41.87 41.79 40.70 40.94 41.64 44.30 42.09 12 Nonborrowed reserves 51.02 47.60 44.90 41.32 41.49 41.53 41.45 40.42 40.71 41.32 43.93 41.98 13 Nonborrowed reserves plus extended credit5 51.02 47.60 44.90 41.32 41.49 41.53 41.45 40.42 40.71 41.32 43.93 41.98 14 Required reserves 49.76 46.24 43.44 40.33 40.73 40.74 40.59 39.55 39.61 40.33 42.28 40.97 15 Monetary base12 463.40 491.79 525.06 607.93r 548.07 550.86 555.19 562.64 579.02 607.93r 604.76 579.02 16 Excess reserves13 1.42 1.69 1.58 1.31 1.08 1.13 1.20 1.15 1.33 1.31 2.03 1.12 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .31 .34 .34 .28 .24 .32 .37 .11 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 1996 1997 1998 1999r IItteemm Dec. Dec. Dec. Dec. Nov. Dec. Jan.r Feb. Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,123.8 1,109.4 1,123.8 1,120.9 1,105.0 2 M2 3,822.9 4,040.8 4,397.0 4,652.2 4,624.2 4,652.2 4,675.2 4,683.7 3 M3 4,952.4 5,402.2 5,996.9r 6,467.3 6,378.0 6,467.3 6,511.0 6,533.6 4 Debt 14,446.5r 15,209.2r 16,230.9r 17,314.9 17,217.5 17,314.9 17,401.7 n.a. Ml components 5 Currency3 394.3 424.8 459.5 515.6 504.3 515.6 524.3 551188..22 6 Travelers checks4 8.3 8.1 8.2 8.3 8.2 8.3 8.2 8.1 7 Demand deposits5 402.3 395.3 379.3 355.9 355.7 355.9 345.4 338.1 8 Other checkable deposits6 276.1 245.8 250.3 244.0 241.2 244.0 243.0 240.6 Nontransaction components 9 In M27 2,741.8 2,966.9 3,299.6 3,528.4 3,514.9 3,528.4 3,554.4 33,,557788..77 10 In M3 only8 1,129.5 1,361.3 1,599.9 1,815.1 1,753.8 1,815.1 1,835.8 1,849.9 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.8 1,289.1 1,285.8 1,288.1 1,301.4 12 Small time deposits9 593.3 625.4 626.1 634.5 630.2 634.5 638.4 643.3 13 Large time deposits'0, 11 413.9 488.3 539.3 610.5 587.1 610.5 613.7 623.4 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.7 451.7 448.7 447.3 450.0 15 Small time deposits9 353.6 342.8 325.6 320.6 318.9 320.6 322.8 323.4 16 Large time deposits'0 78.3 85.6 88.9 91.4 91.0 91.4 94.2 94.8 Money market mutual funds 17 Retail 524.4 601.7 749.4 838.9 825.0 838.9 857.7 886600..66 18 Institution-only 312.0 380.8 518.4 607.4 592.1 607.4 623.5 617.5 Repurchase agreements and Eurodollars 19 Repurchase agreements12 210.7 256.0 330000..88rr 334.7 321.5 334.7 329.0 334422..00 20 Eurodollars12 114.6 150.7 152.6 171.1 162.2 171.1 175.3 172.2 Debt components 21 Federal debt 3,781.3 3,800.3 3,750.8 3,658.9 3,656.5 3,658.9 33,,664455..66 n.a. 22 Nonfederal debt 10,665.2r ll,408.9r 12,480.1r 13,656.0 13,561.0 13,656.0 13,756.1 n.a. Not seasonally adjusted Measures2 23 Ml 1,105.1 1,097.7 1,121.3 1,148.3 1,112.8 1,148.3 1,127.6 1,096.5 24 M2 3,845.1 4,063.9 4,422.2 4,680.5 4,626.6 4,680.5 4,685.8 4,681.8 25 M3 4,973.4 5,426.1 6,026.5 6,502.3 6,389.6 6,502.3 6,527.4 6,553.0 26 Debt 14,443.3r 15,206.3r 16,227.8r 17,313.0 17,192.2 17,313.0 17,382.9 n.a. Ml components 27 Currency3 397.9 428.9 464.1 521.3 505.2 552211..33 523.1 551177..22 28 Travelers checks4 8.6 8.3 8.4 8.4 8.3 8.4 8.4 8.3 29 Demand deposits5 419.9 412.4 395.9 371.9 359.0 371.9 350.1 331.7 30 Other checkable deposits6 278.8 248.2 252.8 246.7 240.4 246.7 246.0 239.3 Nontransaction components 31 In M2 2,740.0 2,966.3 3,300.9 3,532.2 3,513.7 3,532.2 3,558.2 3,585.3 32 In M3 only8 1,128.2 1,362.2 1,604.3 1,821.9 1,763.1 1,821.9 1,841.6 1,871.2 Commercial banks 33 Savings deposits, including MMDAs 903.3 1,020.4 1,186.0 1,288.6 1,288.8 1,288.6 1,286.3 1,294.0 34 Small time deposits9 592.7 625.3 626.5 635.3 631.7 635.3 640.0 645.8 35 Large time deposits10' 11 413.2 487.2 537.8 608.6 590.1 608.6 604.9 619.0 Thrift institutions 36 Savings deposits, including MMDAs 366.3 376.5 414.2 449.7 451.6 449.7 446.7 444477..44 37 Small time deposits9 353.2 342.8 325.8 321.0 319.7 321.0 323.6 324.7 38 Large time deposits10 78.1 85.4 88.6 91.1 91.4 91.1 92.9 94.1 Money market mutual funds 39 Retail 524.3 601.3 748.3 837.5 822.0 837.5 861.5 887733..44 40 Institution-only 315.6 386.7 527.9 618.9 595.1 618.9 638.2 640.6 Repurchase agreements and Eurodollars 41 Repurchase agreements12 205.7 250.5 295,4r 330.0 324.1 330.0 329.2 334433..99 42 Eurodollars12 115.7 152.3 154.5 173.2 162.4 173.2 176.5 173.6 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,662.5 3,641.4 3,662.5 3,638.4 n.a. 44 Nonfederal debt 10,655.4r 1 l,400.5r 12,472.9r 13,650.5 13,550.8 13,650.5 13,744.5 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • May 2000 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly prises or federally related mortgage pools) and the nonfederal sectors (state and local statistical release. Historical data starting in 1959 are available from the Money and Reserves governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and seasonally adjusted M1. 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 Feb. Aug. Sept. Oct. Nov. Dec. Jan.' Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Seasonally adjusted Assets 1 Bank credit 4,520.0 4,583.3 4,607.7 4,639.5 4,702.8 4,781.4 4,788.5 4,810.1 4,800.4 4,792.8 4,801.9 4,818.5 2 Securities in bank credit 1,204.7 1,242.9 1,247.1 1,256.2 1,250.3 1,268.6 1,260.1 1,251.0 1,253.5 1,245.2 1,248.6 1,256.2 3 U.S. government securities 793.3 820.2 817.8 813.8 799.0 803.7 805.2 800.7 804.5 796.7 797.2 803.0 4 Other securities 411.4 422.7 429.3 442.4 451.3 464.9 454.9 450.3 449.1 448.5 451.4 453.2 5 Loans and leases in bank credit2 . . . 3,315.3 3,340.4 3,360.6 3,383.3 3,452.5 3,512.8 3,528.4 3,559.2 3346.9 3,547.5 3,553.3 3,562.3 6 Commercial and industrial 950.6 972.3 980.3 986.0 1,004.2 1,006.9 1,008.9 1,022.3 1,018.2 1,018.2 1,022.9 1,024.9 7 Real estate 1348.0 1,380.2 1,396.5 1,420.5 1,434.5 1,472.0 1,489.3 1,504.2 1,493.5 1,498.2 1,502.3 1,506.7 8 Revolving home equity 102.7 99.6 99.4 100.3 101.8 107.3 110.7 112.6 111.8 112.1 112.3 112.9 9 Other 1,245.2 1,280.6 1,297.1 1,320.2 1,332.6 1,364.7 1,378.6 1,391.6 1,381.7 1,386.1 1,390.0 1,393.7 10 Consumer 498.3 479.3 480.2 478.7 482.2 492.6 499.2 503.9 502.6 503.1 503.6 504.3 11 Security3 139.0 122.4 116.2 111.2 134.1 155.6 147.1 144.6 146.7 143.4 141.4 143.5 12 Other loans and leases 379.4 386.2 387.5 386.9 397.5 385.7 384.0 384.2 385.9 384.5 383.0 382.9 13 Interbank loans 227.9 215.1 208.2 222.6 219.1 223.7 220.7 235.5 226.1 232.2 235.4 239.6 14 Cash assets4 254.6 253.8 264.0 270.1 276.2 290.5 283.3 280.9 270.8 289.5 260.4 285.7 15 Other assets5 355.8 343.8 354.0 358.2 366.2 372.3 387.3 395.0 387.9 389.5 389.9 406.0 16 Total assets6 5,300.0 5,3373 5374.7 5,4313 5,504.9 5,608.0 5,620.6 5,662.4 5,626.0 5,645.0 5,628.4 5,690.7 Liabilities 17 Deposits 3,378.7 3,384.4 3,394.3 3,434.8 3,482.2 3,533.3 3,547.2 3,572.9 3,561.1 3,561.0 3,558.6 3,575.3 18 Transaction 655.7 635.9 634.0 630.4 623.3 630.2 621.5 621.2 610.7 614.8 607.2 638.8 19 Nontransaction 2,723.0 2,748.4 2,760.3 2,804.5 2,859.0 2,903.1 2,925.7 2,951.6 2,950.4 2,946.2 2,951.4 2,936.6 20 Large time 732.2 718.0 727.7 766.0 806.3 836.7 847.4 853.4 851.7 847.7 858.6 851.3 21 Other 1,990.8 2,030.5 2,032.5 2,038.4 2,052.6 2,066.5 2,078.2 2,098.2 2,098.7 2,098.5 2,092.8 2,085.3 22 Borrowings 994.6 1,028.0 1,047.1 1,045.2 1,061.6 1,123.6 1,130.5 1,129.5 1,129.0 1,124.9 1,108.7 1,144.6 23 From banks in the U.S 314.1 336.4 340.4 347.6 349.2 346.2 358.6 367.5 359.2 364.8 367.1 369.2 24 From others 680.5 691.6 706.7 697.6 712.3 777.4 771.9 762.0 769.7 760.2 741.6 775.4 25 Net due to related foreign offices 206.6 222.5 218.3 219.8 226.2 221.5 227.9 233.0 219.1 234.7 240.1 222.1 26 Other liabilities 294.3 279.0 282.0 291.5 297.1 298.8 284.4 290.3 297.1 291.4 295.0 291.9 27 Total liabilities 4,874.2 4,913.9 4^»41.6 4,9913 5,067.0 5,1773 5,189.9 5,225.7 5,206.2 5,212.0 5,202.4 5,233.9 28 Residual (assets less liabilities)7 425.9 423.4 433.0 439.9 437.9 430.7 430.6 436.7 419.7 433.0 426.0 456.7 Not seasonally adjusted Assets 29 Bank credit 4,517.5 4,562.3 4,597.8 4,643.9 4,716.8 4,797.7 4,798.7 4,806.2 4,809.3 4,790.9 4,799.1 4,802.3 30 Securities in bank credit 1,210.1 1,230.0 1,235.9 1,252.7 1,256.8 1,272.6 1,265.1 1,257.6 1,262.2 1,253.6 1,254.9 1,259.6 31 US. government securities 797.5 808.4 807.6 808.2 801.2 805.0 806.5 805.9 809.2 802.7 802.2 807.1 32 Other securities 412.6 421.6 428.3 444.5 455.6 467.7 458.6 451.6 452.9 450.9 452.8 452.5 33 Loans and leases in bank credit2 . .. 3,307.4 3,332.3 3,361.9 3,391.3 3,460.1 3,525.1 3,533.6 3,548.6 3,547.1 3,537.3 3,544.2 3,542.7 34 Commercial and industrial 952.1 963.6 976.4 987.0 1,004.2 1,005.9 1,007.0 1,022.4 1,017.9 1,016.5 1,023.3 1,023.6 35 Real estate 1,342.2 1,382.8 1,400.1 1,424.2 1,439.2 1,474.5 1,488.7 1,497.7 1,490.2 1,495.9 1,496.9 1,496.0 36 Revolving home equity 102.3 99.8 100.2 101.0 102.7 107.7 110.7 112.0 111.6 111.7 111.8 112.2 37 Other 1,239.9 1,283.0 1,300.0 1,323.2 1,336.5 1,366.8 1,378.0 1,385.7 1,378.6 1,384.1 1,385.1 1,383.8 38 Consumer 498.1 480.4 483.1 479.4 482.5 497.5 505.0 503.5 506.2 504.0 503.5 503.2 39 Security3 138.6 118.7 112.8 112.0 135.5 157.8 147.0 143.5 146.9 139.8 139.5 141.5 40 Other loans and leases 376.3 386.7 389.4 388.6 398.7 389.4 386.0 381.4 386.0 381.1 381.0 378.4 41 Interbank loans 227.7 207.4 204.7 219.2 225.9 230.3 222.1 235.0 226.7 230.9 236.7 234.4 42 Cash assets4 255.7 243.4 261.3 270.4 283.5 307.2 296.8 281.5 271.8 273.5 270.2 295.1 43 Other assets5 352.5 346.6 356.0 355.6 364.7 373.1 379.2 391.3 386.6 384.0 386.9 400.0 44 Total assets6 5,295.2 5300.7 53603 5,430.0 5,531.4 5,6483 5,637.8 5,654.9 5,635.4 5,6203 5,633.9 5,672.8 Liabilities 45 Deposits 3,355.7 3,370.5 3,392.9 3,437.4 3,508.6 3,565.6 3,544.8 3,548.3 3,541.9 3,528.2 3,541.6 3,541.1 46 Transaction 650.8 619.6 628.2 622.2 632.9 662.7 635.6 615.3 612.0 596.8 610.7 629.7 47 Nontransaction 2,704.9 2,750.8 2,764.7 2,815.2 2,875.7 2,902.9 2,909.3 2,933.0 2,929.9 2,931.5 2,930.8 2,911.5 48 Large time 732.9 715.3 729.2 767.6 811.5 842.5 845.3 854.2 849.3 848.1 857.7 852.2 49 Other 1,972.0 2,035.5 2,035.5 2,047.6 2,064.2 2,060.4 2,064.0 2,078.9 2,080.7 2,083.4 2,073.1 2,059.2 50 Borrowings 997.3 1,004.6 1,042.0 1,048.4 1,068.7 1,125.8 1,147.8 1,130.5 1,149.9 1,124.3 1,114.5 1,142.0 51 From banks in the U.S 314.4 329.3 336.7 345.3 353.5 352.3 363.9 367.7 363.9 363.8 368.7 368.6 52 From others 682.8 675.2 705.3 703.2 715.2 773.5 783.8 762.9 786.0 760.5 745.7 773.3 53 Net due to related foreign offices .... 216.2 217.4 214.3 221.5 227.9 227.2 230.8 245.7 219.7 244.1 250.1 248.4 54 Other liabilities 296.7 278.9 280.9 290.0 297.2 299.6 285.3 293.0 298.9 294.4 297.5 294.4 55 Total liabilities 4,865.9 4,871.4 4,930.1 4,9973 5,1023 5,218.2 5,208.7 5,2173 5,210.4 5,191.0 5,203.7 5,225.9 56 Residual (assets less liabilities)7 429.3 429.3 430.2 432.7 428.9 430.3 429.1 437.5 425.0 429.5 430.3 446.9 MEMO 57 Revaluation gains on off-balance-sheet items8 107.3 96.5 98.5 100.1 99.9 103.9 100.6 104.1 104.8 102.7 107.1 104.8 58 Revaluation losses on olf-balancesheet items8 106.2 98.7 97.2 97.8 98.9 102.3 99.3 104.1 105.7 103.1 107.3 104.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • May 2000 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 1999' 2000 2000 Feb. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Seasonally adjusted Assets 1 Bank credit 3,955.8 4,059.6 4,088.7 4,109.8 4,154.6 4,225.5 4,241.6 4,272.8 4,259.4 4,256.6 4,269.5 4,283.2 2 Securities in bank credit 1,002.6 1,052.9 1,057.7 1,060.9 1,051.4 1,062.0 1,061.5 1,064.2 1,061.0 1,057.6 1,064.7 1,070.9 3 U.S. government securities 708.5 736.2 736.1 731.4 719.5 722.1 726.1 727.6 727.4 722.1 725.4 731.5 4 Other securities 294.0 316.7 321.5 329.5 331.9 339.9 335.4 336.6 333.6 335.5 339.3 339.4 5 Loans and leases in bank credit2 2,953.2 3,006.6 3,031.1 3,048.9 3,103.3 3,163.6 3,180.1 3,208.6 3,198.4 3,199.0 3,204.9 3,212.3 6 Commercial and industrial 739.7 776.9 783.2 787.2 804.2 812.3 814.6 825.1 822.8 822.3 826.7 826.7 7 Real estate 1,327.2 1,362.7 1,379.0 1,403.1 1,417.5 1,455.2 1,472.2 1,486.9 1,476.1 1,481.1 1,485.1 1,489.3 8 Revolving home equity 102.7 99.6 99.4 100.3 101.8 107.3 110.7 112.6 111.8 112.1 112.3 112.9 9 Other 1,224.5 1,263.1 1,279.6 1,302.8 1,315.7 1,347.9 1,361.6 1,374.4 1,364.3 1,368.9 1,372.8 1,376.4 10 Consumer 498.3 479.3 480.2 478.7 482.2 492.6 499.2 503.9 502.6 503.1 503.6 504.3 11 Security3 79.3 67.5 64.8 56.2 68.8 88.6 80.2 77.8 80.1 77.9 75.9 79.1 12 Other loans and leases 308.7 320.3 323.9 323.6 330.5 315.0 313.9 314.8 316.7 314.7 313.6 312.9 13 Interbank loans 196.5 189.4 185.3 197.1 193.9 195.4 191.4 202.2 193.7 200.2 198.5 205.6 14 Cash assets4 220.0 214.3 221.6 225.2 225.2 235.2 229.5 229.0 221.5 238.0 208.6 232.8 15 Other assets5 318.4 314.8 324.7 326.6 331.7 335.1 348.1 356.5 348.4 350.9 351.7 367.2 16 Total assets6 4,632.5 4,719.6 4,761.3 4,799.8 4,846.3 4,931.6 4,951.6 5,001.7 4,964.1 4,987.0 4,969.4 5,030.0 Liabilities 17 Deposits 3,056.3 3,075.4 3,083.5 3,106.0 3,124.0 3,155.4 3,161.1 3,188.7 3,176.4 3,178.9 3,172.1 3,192.0 18 Transaction 643.8 624.9 623.2 619.7 612.7 619.4 611.1 610.6 599.8 603.8 596.6 628.2 19 Nontransaction 2,412.5 2,450.4 2,460.3 2,486.2 2,511.3 2,535.9 2,550.0 2,578.1 2,576.6 2,575.0 2,575.5 2,563.8 20 Large time 423.1 423.9 433.0 449.7 460.6 470.3 473.1 481.3 478.9 477.6 483.8 480.4 21 Other 1,989.4 2,026.5 2,027.4 2,036.6 2,050.7 2,065.6 2,076.9 2,096.8 2,097.7 2,097.4 2,091.7 2,083.4 22 Borrowings 811.9 853.5 875.9 868.2 874.8 942.0 948.9 951.9 946.2 947.7 935.7 968.3 23 From banks in the U.S 296.0 312.9 315.3 325.7 323.2 321.7 336.6 347.0 336.6 344.1 347.0 349.3 24 From others 515.9 540.6 560.6 542.5 551.6 620.3 612.3 604.9 609.7 603.7 588.7 619.0 25 Net due to related foreign offices .... 117.3 150.4 152.1 166.3 182.2 182.5 194.4 209.4 193.9 207.6 213.9 202.8 26 Other liabilities 224.2 217.5 217.6 226.1 230.2 228.8 215.1 219.4 223.9 221.1 224.1 221.2 27 Total liabilities 4,209.7 4,296.8 4,329.1 4,366.5 4,411.3 4,508.6 4,519.4 4,569.3 4,540.5 4,555.2 4,545.8 4,584.3 28 Residual (assets less liabilities)7 422.8 422.8 432.2 433.3 435.0 423.0 432.1 432.4 423.6 431.7 423.5 445.7 Not seasonally adjusted Assets 29 Bank credit 3,949.7 4,042.2 4,079.7 4,110.3 4,165.6 4,238.6 4,248.3 4,265.6 4,263.2 4,251.0 4,263.3 4,267.1 30 Securities in bank credit 1,006.4 1,041.3 1,047.2 1,054.7 1,054.7 1,066.9 1,065.9 1,069.1 1,067.2 1,063.7 1,069.4 1,074.3 31 U.S. government securities 712.4 725.4 726.9 725.8 721.3 723.1 727.6 732.4 732.0 727.4 730.1 735.2 32 Other securities 294.0 315.9 320.3 328.9 333.4 343.9 338.3 336.8 335.2 336.3 339.2 339.1 33 Loans and leases in bank credit2 2,943.3 3,000.9 3,032.5 3,055.6 3,110.9 3,171.7 3,182.3 3,196.5 3,195.9 3,187.3 3,194.0 3,192.8 34 Commercial and industrial 739.3 770.0 779.6 787.2 803.0 808.6 811.0 823.7 821.5 819.3 824.5 824.2 35 Real estate 1,321.1 1,365.4 1,382.6 1,406.6 1,422.1 1,457.6 1,471.5 1,480.1 1,472.6 1,478.4 1,479.4 1,478.3 36 Revolving home equity 102.3 99.8 100.2 101.0 102.7 107.7 110.7 112.0 111.6 111.7 111.8 112.2 37 Other 1,218.7 1,265.6 1,282.5 1,305.6 1,319.4 1,349.9 1,360.8 1,368.1 1,361.0 1,366.6 1,367.5 1,366.1 38 Consumer 498.1 480.4 483.1 479.4 482.5 497.5 505.0 503.5 506.2 504.0 503.5 503.2 39 Security3 79.3 63.7 61.2 57.4 71.0 90.3 80.1 77.3 80.1 75.0 75.2 78.1 40 Other loans and leases 305.4 321.5 325.9 325.0 332.3 317.7 314.8 311.8 315.6 310.6 311.3 309.0 41 Interbank loans 196.2 181.7 181.7 193.7 200.7 202.1 192.7 201.7 194.3 198.8 199.7 200.5 42 Cash assets4 221.7 204.3 219.1 224.9 231.6 249.5 242.3 230.8 222.8 222.9 219.2 243.7 43 Other assets5 313.9 317.0 326.3 324.1 330.0 334.5 339.7 351.8 346.6 344.1 347.9 360.6 44 Total assets6 4,623.7 4,686.5 4,747.8 4,794.2 4,868.7 4,965.1 4,964.3 4,991.2 4,968.2 4,958.2 4,971.4 5,013.2 Liabilities 45 Deposits 3,034.6 3,064.1 3,082.5 3,108.5 3,151.0 3,183.4 3,162.0 3,165.4 3,160.6 3,148.2 3,158.1 3,158.2 46 Transaction 639.2 608.7 616.8 611.5 622.5 651.6 625.1 604.8 601.1 586.2 600.3 619.2 47 Nontransaction 2,395.4 2,455.3 2,465.7 2,496.9 2,528.5 2,531.7 2,536.8 2,560.5 2,559.5 2,561.9 2,557.9 2,539.0 48 Large time 425.6 422.1 432.5 451.7 466.6 473.6 475.1 483.9 481.1 480.8 487.1 482.0 49 Other 1,969.8 2,033.2 2,033.2 2,045.3 2,061.9 2,058.1 2,061.7 2,076.6 2,078.4 2,081.1 2,070.8 2,056.9 50 Borrowings 814.5 830.0 870.8 871.5 882.0 944.1 966.1 952.9 967.2 947.1 941.4 965.6 51 From banks in the U.S 296.4 305.8 311.6 323.4 327.6 327.7 341.9 347.2 341.2 343.1 348.7 348.7 52 From others 518.2 524.2 559.2 548.1 554.4 616.4 624.2 605.8 626.0 604.0 592.8 616.9 53 Net due to related foreign offices .... 123.4 147.5 149.8 166.2 181.2 183.0 195.4 219.1 194.7 215.2 220.5 224.1 54 Other liabilities 225.0 217.3 216.9 225.2 229.5 228.1 215.8 220.4 224.8 222.3 225.0 222.2 55 Total liabilities 4,197.6 4,258.9 4,320.0 4,371.3 4,443.7 4,538.6 4,539.3 4,557.8 4,547.3 4,532.8 4,545.1 4,570.1 56 Residual (assets less liabilities)7 426.1 427.7 427.8 422.8 425.0 426.5 425.0 433.4 420.9 425.4 426.4 443.1 MEMO 57 Revaluation gains on off-balance-sheet items8 64.9 58.4 60.1 60.9 59.8 64.5 62.7 64.8 63.6 63.6 67.9 66.3 58 Revaluation losses on off-balancesheet items8 65.4 62.5 59.8 60.0 59.8 63.9 61.8 64.3 63.9 63.3 67.7 66.0 59 Mortgage-backed securities9 342.1 343.7 346.5 346.6 348.1 347.7 347.7 347.6 345.5 344.9 345.7 349.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 1999r 2000 2000 Feb. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Seasonally adjusted Assets 1 Bank credit 2,482.9 2,509.8 2,525.6 2,524.6 2,566.1 2,625.8 2,626.4 2,640.7 2,640.5 2,633.1 2,637.7 2,647.0 2 Securities in bank credit 571.8 597.9 601.0 601.9 598.0 610.8 607.2 605.8 606.0 600.9 607.2 611.0 3 U.S. government securities 387.7 399.4 397.7 391.6 385.6 392.1 391.7 388.5 391.7 384.6 386.8 391.3 4 Trading account 17.9 23.3 20.9 20.0 18.0 19.4 21.4 22.3 25.1 21.7 22.9 23.0 5 Investment account 369.8 376.2 376.8 371.6 367.6 372.7 370.3 366.1 366.7 362.9 363.9 368.3 6 Other securities 184.2 198.5 203.3 210.3 212.4 218.7 215.5 217.4 214.3 216.4 220.4 219.7 7 Trading account 87.5 77.5 78.1 81.7 82.4 87.1 81.8 86.2 84.3 86.0 88.7 87.9 8 Investment account 96.7 121.0 125.2 128.5 129.9 131.7 133.7 131.2 130.1 130.4 131.7 131.8 9 State and local government . 24.7 25.7 25.7 25.8 26.4 26.4 26.7 26.9 26.8 27.0 27.0 26.8 10 Other 72.0 95.3 99.5 102.7 103.5 105.3 107.0 104.3 103.3 103.4 104.7 105.0 11 Loans and leases in bank credit2 . .. 1,911.1 1,911.9 1,924.6 1,922.7 1,968.1 2,015.0 2,019.2 2,034.9 2,034.4 2,032.1 2,030.5 2,035.9 12 Commercial and industrial 548.9 573.4 576.8 574.6 589.5 595.8 595.2 603.3 601.9 601.6 604.8 604.3 13 Bankers acceptances 1.2 1.1 1.2 1.1 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 14 Other 547.8 572.3 575.6 573.5 588.4 594.7 594.2 602.3 600.9 600.5 603.8 603.3 15 Real estate 739.7 738.4 749.7 760.6 769.1 800.8 811.3 817.0 812.3 814.6 815.6 817.6 16 Revolving home equity 74.0 69.4 69.2 69.2 70.6 75.5 78.2 79.5 79.1 79.3 79.3 79.7 17 Other 665.7 669.0 680.6 691.3 698.5 725.3 733.2 737.5 733.2 735.3 736.3 737.9 18 Consumer 308.8 284.8 282.8 281.6 285.5 291.1 294.9 298.8 299.6 299.9 297.8 298.5 19 Security3 74.0 62.6 59.8 51.3 63.3 83.2 75.0 72.5 74.9 72.5 70.6 73.9 20 Federal funds sold to and repurchase agreements with broker-dealers 58.0 45.4 42.2 34.2 45.2 63.4 53.9 49.1 52.0 48.4 46.6 51.0 21 Other 16.1 17.2 17.6 17.0 18.1 19.8 21.1 23.4 23.0 24.1 24.0 22.9 22 State and local government 11.6 12.2 12.3 12.3 12.2 12.1 12.3 12.4 12.3 12.3 12.4 12.4 23 Agricultural 9.2 8.9 9.2 9.6 9.6 9.6 9.8 10.1 10.0 10.0 10.0 10.1 24 Federal funds sold to and repurchase agreements 11.0 with others 12.8 7.9 11.2 10.0 12.3 11.8 11.2 11.3 11.1 10.8 11.6 25 All other loans 92.5 100.4 98.0 95.6 97.5 80.5 79.3 79.7 82.0 79.7 78.5 78.1 26 Lease-financing receivables 113.5 123.4 124.7 127.0 129.2 130.1 130.1 129.8 130.4 130.3 130.0 129.4 27 Interbank loans 135.7 138.4 136.5 149.9 141.6 141.8 138.9 146.8 140.0 144.7 142.3 150.2 28 Federal funds sold to and repurchase agreements with commercial banks 84.9 86.7 83.8 92.4 73.8 70.9 66.0 73.2 6644..88 70.9 68.8 75.3 29 Other 50.9 51.7 52.7 57.6 67.8 70.9 72.8 73.6 75.2 73.8 73.6 74.9 30 Cash assets4 152.9 143.5 150.2 154.3 153.2 159.8 160.5 160.9 153.4 169.8 144.4 162.7 31 Other assets5 248.7 236.5 246.7 244.4 250.3 252.6 261.2 272.2 263.7 266.3 269.1 282.4 32 Total assets6 2,981.2 2,989.5 3,020.0 3,034.2 3,072.1 3,140.6 3,148.5 3,182.5 3,1593 3,175.9 3,155.4 3,204.1 Liabilities 33 Deposits 1,725.4 1,709.7 1,715.8 1,716.7 1,724.4 1,738.3 1,734.0 1,744.5 1,743.1 1,741.4 1,732.2 1,741.7 34 Transaction 365.2 342.8 343.7 340.1 335.7 343.5 337.2 335.0 328.2 332.3 324.2 344.6 35 Nontransaction 1,360.2 1,366.9 1,372.0 1,376.6 1,388.7 1,394.9 1,396.8 1,409.6 1,414.8 1,409.1 1,408.0 1,397.1 36 Large time 233.8 227.7 235.5 245.7 252.7 260.4 261.7 265.9 265.9 263.5 268.1 264.3 37 Other 1,126.4 1,139.2 1,136.5 1,131.0 1,136.0 1,134.4 1,135.0 1,143.6 1,149.0 1,145.6 1,139.8 1,132.9 38 Borrowings 640.2 653.8 671.4 667.5 675.5 735.9 735.7 735.6 734.7 734.1 723.1 749.9 39 From banks in the U.S 216.3 220.2 222.3 238.7 238.4 237.6 250.6 260.4 251.1 259.6 261.5 263.5 40 From others 423.9 433.7 449.0 428.8 437.1 498.3 485.1 475.3 483.6 474.5 461.6 486.4 41 Net due to related foreign offices 114.1 147.0 148.7 162.0 177.7 178.0 189.3 204.1 188.6 202.5 209.0 197.3 42 Other liabilities 195.5 184.9 183.9 191.1 195.5 193.7 181.5 183.6 188.7 185.3 187.4 184.9 43 Total liabilities 2,675.1 2,695.4 2,719.8 2,7373 2,773.0 2,845.9 2,840.5 2,867.9 2,855.0 2,8633 2,851.6 2^73.7 44 Residual (assets less liabilities)7 306.1 294.1 300.3 296.9 299.0 294.7 307.9 314.6 304.3 312.6 303.8 330.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • May 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 Feb. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Not seasonally adjusted Assets 45 Bank credit 2,487.6 2,490.3 2,513.4 2,526.3 2,580.0 2,640.8 2,640.0 2,645.0 2.653.2 2,637.8 2,643.7 2,643.5 46 Securities in bank credit 577.9 587.9 592.8 598.8 603.5 615.9 612.1 612.8 614.0 608.4 614.3 616.9 47 U.S. government securities 393.1 390.4 390.3 389.0 389.7 393.0 393.7 394.7 397.8 390.8 393.4 396.8 48 Trading account 18.6 22.2 20.7 20.8 19.9 20.0 21.7 23.2 25.6 21.7 23.9 23.5 49 Investment account 374.5 368.3 369.6 368.2 369.7 373.0 372.0 371.6 372.2 369.1 369.5 373.2 50 Mortgage-backed securities . . 258.2 243.1 246.3 244.3 244.7 244.5 242.8 243.2 240.0 240.7 241.6 245.7 51 Other 116.3 125.2 123.3 123.8 125.0 128.5 129.2 128.4 132.2 128.4 127.9 127.6 52 One year or less 26.6 25.2 24.8 25.6 23.9 25.2 26.1 30.3 28.9 29.4 29.6 30.2 53 One to five years 48.6 59.9 59.1 59.9 60.6 61.6 61.2 58.0 61.6 58.8 58.0 57.6 54 More than five years . . . 41.1 40.0 39.4 38.3 40.4 41.7 41.9 40.1 41.7 40.2 40.4 39.8 55 Other securities 184.8 197.4 202.6 209.8 213.9 222.9 218.5 218.0 216.2 217.7 221.0 220.1 56 Trading account 87.5 77.5 78.1 81.7 82.4 87.1 81.8 86.2 84.3 86.0 88.7 87.9 57 Investment account 97.3 120.0 124.5 128.1 131.5 135.8 136.7 131.9 131.9 131.7 132.3 132.1 58 State and local government . . 24.8 25.4 25.6 25.9 26.6 26.6 26.9 27.0 26.9 27.1 27.1 26.9 59 Other 72.5 94.6 98.9 102.2 1019 109.2 109.7 104.9 105.0 104.6 105.2 105.2 60 Loans and leases in bank credit2 . . 1,909.7 1,902.5 1,920.6 1,927.5 1,976.5 2,024.9 2,027.8 2,032.2 2,039.2 2,029.4 2,029.4 2,026.6 61 Commercial and industrial 548.9 567.6 574.3 576.1 589.8 593.1 592.5 602.3 601.2 599.3 603.3 602.2 62 Bankers acceptances 1.2 1.1 1.2 1.1 1.1 1.1 1.1 1.0 1.0 1.0 1.0 1.0 63 Other 547.7 566.6 573.2 575.0 588.7 592.0 591.4 601.3 600.2 598.2 602.3 601.2 64 Real estate 738.4 739.0 750.0 762.6 773.2 805.1 814.6 815.4 813.1 816.8 815.3 812.2 65 Revolving home equity 73.7 69.7 69.6 69.8 71.2 75.7 78.2 79.1 78.8 79.0 78.9 79.1 66 Other 408.8 408.4 413.3 419.7 426.0 450.3 453.5 451.7 450.7 453.7 451.8 448.3 67 Commercial 255.9 260.9 267.1 273.1 276.1 279.1 282.9 284.6 283.6 284.1 284.6 284.8 68 Consumer 309.2 285.3 284.7 281.6 285.3 294.2 300.0 299.3 302.8 301.2 298.5 298.4 69 Security3 74.1 58.8 56.3 52.4 65.5 84.9 74.9 72.0 74.9 69.6 69.9 72.9 70 Federal funds sold to and repurchase agreements with broker-dealers .... 58.5 41.9 38.9 35.3 47.5 64.6 54.5 49.6 53.3 47.5 47.2 50.5 71 Other 15.6 16.9 17.4 17.1 18.0 20.2 20.4 22.5 21.6 22.2 22.7 22.4 72 State and local government .... 11.7 12.3 12.4 12.4 12.3 12.2 12.3 12.4 12.3 12.3 12.4 12.4 73 Agricultural 8.8 9.1 9.5 9.8 9.6 9.6 9.8 9.7 9.7 9.7 9.7 9.7 74 Federal funds sold to and repurchase agreements with others 12.8 7.9 11.2 10.0 12.3 11.8 11.2 11.3 11.0 11.1 10.8 11.6 75 All other loans 91.1 99.6 98.6 96.6 100.7 84.5 80.5 78.6 82.2 77.5 78.0 76.4 76 Lease-financing receivables .... 114.8 122.8 123.5 126.1 127.8 129.5 132.1 131.2 132.0 131.8 131.5 130.8 77 Interbank loans 135.5 133.3 134.2 145.4 142.3 144.4 140.3 146.6 141.1 142.9 144.1 147.8 78 Federal funds sold to and repurchase agreements with commercial banks 85.5 81.8 81.9 88.6 76.6 74.6 68.9 74.0 68.6 71.1 71.0 73.3 79 Other 50.1 51.5 52.3 56.7 65.6 69.8 71.3 72.6 72.5 71.8 73.0 74.5 80 Cash assets4 153.6 136.7 149.0 154.8 157.4 170.5 170.2 161.5 153.9 157.0 152.4 171.0 81 Other assets5 245.6 238.0 248.0 241.8 246.9 252.0 256.3 269.1 263.2 262.2 266.5 276.9 82 Total assets6 2,983.4 2,9593 3,0053 3,029.4 3,087.4 3,168.4 3,168.7 3,184.2 3,1733 3,161.9 3,168.7 3,201.4 Liabilities 83 Deposits 1,721.2 1,699.8 1,711.8 1,715.4 1,738.7 1,761.7 1,743.1 1,738.7 1,740.6 1,728.5 1,734.9 1,729.5 84 Transaction 362.3 333.5 340.3 334.9 341.8 365.2 347.2 330.9 329.3 318.4 328.0 339.1 85 Nontransaction 1,358.9 1,366.3 1,371.4 1,380.4 1,396.9 1,396.5 1,395.9 1,407.8 1,411.3 1,410.1 1,406.9 1,390.4 86 Large time 236.2 225.9 235.1 247.7 258.7 263.7 263.8 268.5 268.0 266.7 271.4 266.0 87 Other 1,122.7 1,140.4 1,136.4 1,132.7 1,138.1 1,132.8 1,132.2 1,139.3 1,143.2 1,143.4 1,135.6 1,124.4 88 Borrowings 645.4 630.3 663.6 667.9 680.4 736.1 752.8 739.8 755.1 737.3 730.5 750.2 89 From banks in the U.S 217.8 213.8 218.2 234.5 240.9 241.6 255.2 261.8 255.4 260.2 263.9 263.9 90 From nonbanks in the U.S 427.6 416.5 445.5 433.4 439.5 494.4 497.6 478.0 499.7 477.1 466.7 486.3 91 Net due to related foreign offices . . . 120.2 144.0 146.4 161.9 176.7 178.6 190.4 213.9 189.4 210.1 215.6 218.6 92 Other liabilities 195.5 184.9 183.9 191.1 195.5 193.7 181.5 183.6 188.7 185.3 187.4 184.9 93 Total liabilities 2,6823 2,659.0 2,705.6 2,7363 2,7913 2,870.1 2,867.7 2,876.0 2,873.8 2,8613 2,8685 2,883.2 94 Residual (assets less liabilities)7 .... 301.1 300.3 299.7 293.1 296.1 298.4 300.9 308.3 299.4 300.6 300.3 318.2 MEMO 95 Revaluation gains on off-balancesheet items8 64.9 58.4 60.1 60.9 59.8 64.5 62.7 M.8 63.6 63.6 67.9 66.3 96 Revaluation losses on off-balancesheet items8 65.4 62.5 59.8 60.0 59.8 63.9 61.8 64.3 63.9 63.3 67.7 66.0 97 Mortgage-backed securities9 286.6 278.6 281.0 279.4 282.1 282.1 279.8 278.4 277.3 276.2 276.9 280.4 98 Pass-through securities 191.4 186.8 185.4 184.8 187.9 188.8 187.9 190.3 189.0 187.8 188.8 192.4 99 CMOs, REMICs, and other mortgage-backed securities . . 95.2 91.7 95.6 94.6 94.2 93.2 92.0 88.2 88.3 88.4 88.2 88.0 100 Net unrealized gains (losses) on available-for-sale securities10 . . . 2.3 -4.2 -4.9 -5.6 -5.8 -6.0 -7.4 -7.8 -8.1 -7.8 -7.9 -7.8 101 Offshore credit to U.S. residents" . . . 38.9 32.2 27.8 26.7 24.8 24.0 23.2 23.6 23.5 23.2 23.8 23.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 Feb. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Seasonally adjusted Assets 1 Bank credit 1,472.8 1,549.8 1,563.1 1,585.2 1,588.6 1,599.8 1,615.3 1,632.0 1,618.9 1,623.6 1,631.8 1,636.2 2 Securities in bank credit 430.7 455.0 456.7 459.0 453.4 451.2 454.3 458.4 455.0 456.7 457.5 459.9 3 U.S. government securities 320.9 336.8 338.5 339.8 333.9 330.0 334.4 339.1 335.7 337.5 338.6 340.2 4 Other securities 109.9 118.2 118.2 119.3 119.5 121.2 119.9 119.3 119.3 119.2 118.9 119.7 5 Loans and leases in bank credit2 1,042.1 1,094.7 1,106.4 1,126.2 1,135.2 1,148.6 1,161.0 1,173.7 1,164.0 1,166.9 1,174.3 1,176.4 6 Commercial and industrial 190.8 203.6 206.4 212.6 214.7 216.5 219.3 221.8 220.9 220.7 221.9 222.4 7 Real estate 587.5 624.3 629.3 642.5 648.4 654.4 660.9 669.9 663.8 666.5 669.5 671.7 8 Revolving home equity 28.7 30.2 30.3 31.0 31.3 31.8 32.5 33.1 32.7 32.8 33.0 33.3 9 Other 558.7 594.1 599.0 611.5 617.2 622.6 628.4 636.9 631.1 633.6 636.5 638.4 10 Consumer 189.5 194.5 197.4 197.2 196.7 201.5 204.3 205.1 203.0 203.3 205.8 205.9 11 Security3 5.3 4.9 4.9 5.0 5.5 5.4 5.2 5.3 5.2 5.3 5.3 5.2 12 Other loans and leases 69.1 67.4 68.4 69.0 69.8 70.9 71.2 71.5 71.1 71.2 71.9 71.2 13 Interbank loans 60.7 50.9 48.7 47.2 52.3 53.6 52.5 55.4 53.7 55.5 56.1 55.4 14 Cash assets4 67.1 70.8 71.4 70.9 72.0 75.4 69.0 68.2 68.1 68.2 64.2 70.1 15 Other assets5 69.6 78.3 78.0 82.2 81.4 82.6 86.9 84.2 84.7 84.6 82.6 84.9 16 Total assets6 1,651.4 1,730.1 1,7413 1,765.7 1,774.2 1,791.0 1,803.1 1,819.1 1,804.8 1,811.1 1,814.0 1,825.9 Liabilities 17 Deposits 1,331.0 1,365.7 1,367.7 1,389.3 1,399.6 1,417.0 1,427.1 1,444.2 1,433.3 1,437.4 1,439.9 1,450.2 18 Transaction 278.7 282.2 279.4 279.7 277.0 276.0 273.9 275.6 271.5 271.5 272.4 283.6 19 Nontransaction 1,052.3 1,083.5 1,088.3 1,109.6 1,122.6 1,141.1 1,153.2 1,168.6 1,161.8 1,165.9 1,167.6 1,166.6 20 Large time 189.3 196.2 197.4 204.0 207.9 209.9 211.4 215.4 213.1 214.1 215.7 216.1 21 Other 863.0 887.3 890.9 905.6 914.7 931.1 941.8 953.2 948.7 951.8 951.9 950.6 22 Borrowings 171.7 199.7 204.5 200.7 199.3 206.1 213.2 216.2 211.6 213.6 212.6 218.4 23 From banks in the U.S 79.7 92.7 93.0 87.0 84.9 84.1 85.9 86.6 85.5 84.5 85.6 85.8 24 From others 92.0 106.9 111.6 113.8 114.4 122.0 127.2 129.6 126.1 129.2 127.1 132.6 25 Net due to related foreign offices .... 3.2 3.5 3.4 4.3 4.5 4.5 5.1 5.2 5.3 5.1 4.9 5.5 26 Other liabilities 28.7 32.6 33.7 35.0 34.7 35.1 33.6 35.8 35.2 35.8 36.7 36.4 27 Total liabilities 1,534.6 1,601.4 1,609.3 1,6293 1,638.2 1,662.6 1,678.9 1,701.4 1,685.4 1,691.9 1,6943 1,710.6 28 Residual (assets less liabilities)7 116.8 128.7 132.0 136.4 136.0 128.3 124.2 117.7 119.3 119.2 119.7 115.3 Not seasonally adjusted Assets 29 Bank credit 1,462.1 1,551.9 1,566.3 1,584.0 1,585.5 1,597.8 1,608.3 1,620.6 1,610.0 1,613.1 1,619.6 1,623.6 30 Securities in bank credit 428.5 453.4 454.3 455.9 451.2 451.0 453.8 456.3 453.2 455.3 455.0 457.4 31 U.S. government securities 319.3 335.0 336.6 336.8 331.6 330.1 334.0 337.6 334.2 336.6 336.8 338.5 32 Other securities 109.2 118.4 117.7 119.1 119.6 120.9 119.8 118.7 119.0 118.6 118.3 119.0 33 Loans and leases in bank credit2 1,033.6 1,098.5 1,112.0 1,128.1 1,134.4 1,146.8 1,154.5 1,164.3 1,156.7 1,157.9 1,164.6 1,166.2 34 Commercial and industrial 190.4 202.3 205.3 211.1 213.2 215.5 218.5 221.4 220.3 220.0 221.3 222.0 35 Real estate 582.7 626.4 632.7 644.0 648.9 652.6 656.8 664.8 659.5 661.6 664.1 666.1 36 Revolving home equity 28.6 30.1 30.5 31.2 31.6 32.0 32.5 33.0 32.7 32.8 32.9 33.1 37 Other 554.0 596.3 602.1 612.7 617.4 620.5 624.4 631.8 626.8 628.8 631.2 633.0 38 Consumer 188.9 195.1 198.5 197.8 197.2 203.2 205.0 204.2 203.4 202.8 205.0 204.8 39 Security' 5.3 4.9 4.9 5.0 5.5 5.4 5.2 5.3 5.2 5.3 5.3 5.2 40 Other loans and leases 66.3 69.7 70.6 70.2 69.6 70.1 69.0 68.6 68.4 68.1 68.9 68.1 41 Interbank loans 60.7 48.4 47.5 48.3 58.4 57.7 52.4 55.1 53.2 55.9 55.6 52.6 42 Cash assets4 68.1 67.6 70.1 70.1 74.2 79.0 72.1 69.2 68.9 65.9 66.8 72.6 43 Other assets5 68.4 79.0 78.4 82.2 83.1 82.5 83.4 82.7 83.4 81.9 81.4 83.7 44 Total assets6 1,640.3 1,727.2 1,742.4 1,764.8 1,7813 1,796.7 1,795.6 1,807.0 1,794.9 1,7963 1,802.7 1,811.8 Liabilities 45 Deposits 1,313.4 1,364.3 1,370.8 1,393.1 1,412.3 1,421.6 1,418.9 1,426.6 1,420.0 1,419.7 1,423.2 1,428.7 46 Transaction 276.9 275.3 276.5 276.6 280.7 286.4 277.9 274.0 271.8 267.9 272.2 280.1 47 Nontransaction 1,036.5 1,089.0 1,094.3 1,116.5 1,131.6 1,135.2 1,140.9 1,152.7 1,148.2 1,151.8 1,151.0 1,148.6 48 Large time 189.3 196.2 197.4 204.0 207.9 209.9 211.4 215.4 213.1 214.1 215.7 216.1 49 Other 847.2 892.8 896.8 912.5 923.7 925.3 929.6 937.3 935.2 937.7 935.3 932.5 50 Borrowings 169.1 199.7 207.2 203.6 201.6 208.0 213.4 213.2 212.1 209.7 210.9 215.4 51 From banks in the U.S 78.5 92.0 93.4 88.9 86.6 86.1 86.7 85.4 85.8 82.9 84.8 84.8 52 From others 90.6 107.7 113.7 114.7 115.0 121.9 126.7 127.8 126.2 126.9 126.1 130.7 53 Net due to related foreign offices .... 3.2 3.5 3.4 4.3 4.5 4.5 5.1 5.2 5.3 5.1 4.9 5.5 54 Other liabilities 29.5 32.4 33.0 34.1 34.0 34.4 34.2 36.8 36.1 37.0 37.6 37.3 55 Total liabilities 1,515.3 1,599.8 1,614.4 1,635.0 1,652.4 1,668.6 1,671.5 1,681.8 1,673.5 1,671.5 1,676.6 1,686.9 56 Residual (assets less liabilities)7 125.0 127.4 128.1 129.7 128.9 128.1 124.1 125.2 121.4 124.8 126.1 124.9 MEMO 57 Mortgage-backed securities' 55.6 65.1 65.5 67.3 66.0 65.6 67.8 69.2 68.2 68.7 68.8 69.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • May 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 Feb. Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Feb. 2 Feb. 9 Feb. 16 Feb. 23 Seasonally adjusted Assets 1 Bank credit 564.2 523.8 519.0 529.7 548.2 555.9 546.9 537.4 541.0 536.1 532.3 535.3 2 Securities in bank credit 202.1 190.0 189.4 195.3 198.9 206.6 198.6 186.8 192.5 187.6 183.9 185.3 3 U.S. government securities 84.7 84.0 81.6 82.4 79.5 81.6 79.2 73.1 77.1 74.7 71.8 71.5 4 Other securities 117.4 106.0 107.8 112.8 119.4 125.0 119.5 113.7 115.4 113.0 112.1 113.8 5 Loans and leases in bank credit2 . . . 362.1 333.8 329.6 334.4 349.2 349.2 348.3 350.6 348.5 348.5 348.4 350.0 6 Commercial and industrial 210.9 195.3 197.1 198.8 199.9 194.6 194.3 197.1 195.4 196.0 196.3 198.2 7 Real estate 20.8 17.5 17.5 17.4 17.0 16.9 17.0 17.3 17.4 17.2 17.2 17.3 8 Security3 59.6 55.0 51.4 54.9 65.3 67.0 66.9 66.7 66.6 65.5 65.5 64.4 9 Other loans and leases 70.7 66.0 63.6 63.3 67.0 70.7 70.0 69.5 69.2 69.8 69.4 70.1 10 Interbank loans 31.5 25.7 22.9 25.5 25.2 28.3 29.4 33.3 32.4 32.0 37.0 33.9 11 Cash assets4 34.7 39.5 42.4 44.9 51.1 55.4 53.8 51.8 49.3 51.5 51.8 53.0 12 Other assets5 37.4 29.0 29.3 31.6 34.5 37.2 39.2 38.5 39.4 38.7 38.2 38.8 13 Total assets6 667.5 617.7 613.4 631.4 658.7 676.4 669.0 660.7 661.9 658.1 659.0 660.7 Liabilities 14 Deposits 322.4 309.0 310.8 328.9 358.2 377.9 386.1 384.2 384.7 382.1 386.5 383.4 15 Transaction 11.8 11.0 10.8 10.6 10.5 10.7 10.4 10.7 10.9 11.0 10.6 10.6 16 Nontransaction 310.5 298.0 299.9 318.2 347.7 367.2 375.7 373.5 373.8 371.2 375.9 372.8 17 Borrowings 182.7 174.6 171.2 176.9 186.8 181.7 181.6 177.6 182.7 177.2 173.0 176.4 18 From banks in the U.S 18.1 23.5 25.1 21.9 26.0 24.5 22.1 20.5 22.6 20.7 20.1 19.9 19 From others 164.7 151.0 146.1 155.1 160.8 157.2 159.6 157.1 160.1 156.5 153.0 156.4 20 Net due to related foreign offices 89.3 72.0 66.1 53.5 44.0 39.0 33.5 23.7 25.2 27.1 26.2 19.4 21 Other liabilities 70.1 61.5 64.4 65.5 66.8 70.1 69.3 71.0 73.2 70.4 70.8 70.6 22 Total liabilities 664.5 617.1 6123 624.8 655.8 668.7 6703 656.4 665.8 656.8 656.6 649.7 23 Residual (assets less liabilities)7 3.0 .6 .8 6.6 2.9 7.7 -1.5 4.3 -3.9 1.3 2.5 11.0 Not seasonally adjusted Assets 24 Bank credit 567.8 520.0 518.1 533.6 551.3 559.1 550.4 540.5 546.1 540.0 535.8 535.2 25 Securities in bank credit 203.7 188.7 188.7 197.9 202.0 205.7 199.1 188.4 195.0 189.9 185.6 185.3 26 U.S. government securities 85.1 83.0 80.7 82.4 79.9 81.9 78.9 73.5 77.3 75.3 72.0 71.9 27 Trading account 20.0 16.5 14.9 14.3 8.5 6.7 7.5 7.3 9.3 7.8 6.3 6.6 28 Investment account 65.1 66.5 65.9 68.0 71.5 75.2 71.4 66.3 68.0 67.5 65.8 65.3 29 Other securities 118.6 105.7 108.0 115.6 122.1 123.8 120.3 114.9 117.7 114.6 113.5 113.4 30 Trading account 70.8 64.9 69.3 69.3 80.7 80.6 76.0 73.1 73.8 72.6 71.9 72.1 31 Investment account 47.8 40.9 38.7 46.2 41.5 43.2 44.3 41.8 43.9 42.0 41.6 41.3 32 Loans and leases in bank credit2 . .. 364.1 331.3 329.4 335.7 349.2 353.3 351.3 352.1 351.2 350.0 350.2 349.9 33 Commercial and industrial 212.8 193.6 196.7 199.9 201.2 197.3 196.0 198.7 196.4 197.2 198.7 199.4 34 Real estate 21.2 17.4 17.5 17.6 17.1 16.9 17.2 17.6 17.6 17.5 17.5 17.7 35 Security3 59.3 55.0 51.6 54.6 67.5 66.9 66.2 66.8 64.8 64.3 63.4 36 Other loans and leases 70.9 65.2 63.6 63.6 66.4 71.6 71.2 69.6 70.4 70.5 69.7 69.4 37 Interbank loans 31.5 25.7 22.9 25.5 25.2 28.3 29.4 33.3 32.4 32.0 37.0 33.9 38 Cash assets4 34.0 39.1 42.1 45.5 51.8 57.7 54.5 50.7 49.0 50.6 51.0 51.4 39 Other assets5 38.5 29.6 29.7 31.5 34.6 38.7 39.5 39.5 40.0 40.0 39.0 39.4 40 Total assets6 671.5 6142 612.6 635.8 662.7 683.4 6733 663.7 667.2 6623 6623 659.6 Liabilities 41 Deposits 321.1 306.4 310.3 328.9 357.7 382.3 382.9 383.0 381.3 380.1 383.4 383.0 42 Transaction 11.6 10.9 11.3 10.6 10.4 11.1 10.4 10.5 10.8 10.5 10.5 10.5 43 Nontransaction 309.5 295.5 299.0 318.3 347.2 371.2 372.4 372.5 370.5 369.5 372.9 372.5 44 Borrowings 182.7 174.6 171.2 176.9 186.8 181.7 181.6 177.6 182.7 177.2 173.0 176.4 45 From banks in the U.S 18.1 23.5 25.1 21.9 26.0 24.5 22.1 20.5 22.6 20.7 20.1 19.9 46 From others 164.7 151.0 146.1 155.1 160.8 157.2 159.6 157.1 160.1 156.5 153.0 156.4 47 Net due to related foreign offices .... 92.8 69.9 64.6 55.3 46.7 44.2 35.3 26.5 25.0 28.9 29.6 24.3 48 Other liabilities 71.7 61.7 64.0 64.8 67.7 71.5 69.5 72.6 74.1 72.1 72.6 72.2 49 Total liabilities 668.4 6123 610.1 626.0 658.8 679.6 669.4 659.7 663.1 658.2 658.6 655.8 50 Residual (assets less liabilities)7 3.2 1.7 2.4 9.8 3.9 3.8 4.1 4.0 4.1 4.1 3.9 3.9 MEMO 51 Revaluation gains on off-balance-sheet items8 42.4 38.1 38.4 39.2 40.1 39.4 38.0 39.4 41.1 39.1 39.2 38.5 52 Revaluation losses on off-balancesheet items8 40.7 36.3 37.4 37.8 39.1 38.4 37.5 39.8 41.8 39.8 39.6 38.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 • May 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 2000 IItteemm 1995 1996 1997 1998 1999 Aug. Sept. Oct. Nov. Dec. Jan. 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,257,658 1,274,726 1,321,163 1,369,100 1,403,023 1,407,789 Financial companies1 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 710,320 718,380 751,245 802,194 786,643 821,870 3 Directly placed paper, total3 210,829 229,662 252,536 322,030 337,240 290,228 293,381 296,998 299,777 337,240 299,599 4 Nonfinancial companies4 188,260 184,563 200,857 227,132 279,140 257,110 262,965 272,920 267,128 279,140 286,319 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal, and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. B. Bankers Dollar Acceptances1 Millions of dollars, not seasonally adjusted, year ending September2 Item 1996 1997 1998 1999 1 Total amount of reporting banks' acceptances in existence 25,832 25,774 14,363 10,094 2 Amount of other banks' eligible acceptances held by reporting banks 709 736 523 461 3 Amount of own eligible acceptances held by reporting banks (included in item 1) 7,770 6,862 4,884 4,261 4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries (included in item 1) 9,361 10,467 5,413 3,498 1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United 2. Data on bankers dollar acceptances are gathered from approximately 55 institutions; States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks; includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal agencies of foreign banks, and Edge and agreement corporations. The reporting group is Reserve Act (12 U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Av r e a r t a e ge Period Av r e a r te a ge Period Av r e a r t a e ge 1997—Jan. 1 8.25 1997 8.44 1998—Jan 8.50 1999—Jan 7.75 Mar. 26 8.50 1998 8.35 Feb 8.50 Feb 7.75 1999 . 8.00 Mar. 8.50 Mar. 7.75 1998—Sept. 30 8.25 Apr. 8.50 Apr 7.75 Oct. 16 8.00 1997—Jan 8.25 May 8.50 May 7.75 Nov. 18 7.75 Feb 8.25 June 8.50 June 7.75 Mar 8.30 July 8.50 July 8.00 1999—July 1 8.00 Apr. 8.50 Aug 8.50 Aug 8.06 Aug. 25 8.25 Mav 8.50 Sept 8.49 Sept 8.25 Nov. 17 8.50 June 8.50 Oct 8.12 Oct 8.25 July 8.50 Nov 7.89 Nov 8.37 2000—Feb. 3 8.75 Aug 8.50 Dec 7.75 Dec 8.50 Mar. 22 9.00 Sept 8.50 Oct 8.50 2000—Jan 8.50 Nov. 8.50 Feb 8.73 Dec 88..5500 88..8833 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 2000, week ending IItteemm 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Jan. 28 Feb. 4 Feb. 11 Feb. 18 Feb. 25 MONEY MARKET INSTRUMENTS 1 Federal funds1'23 5.46 5.35 4.97 5.42 5.30 5.45 5.73 5.43 5.66 5.71 5.75 5.72 2 Discount window borrowing2'4 5.00 4.92 4.62 4.86 5.00 5.00 5.24 5.00 5.04 5.25 5.25 5.25 Commercial paper3,5,6 Nonfinancial 3 1-month 5.57 5.40 5.09 5.37 5.97 5.59 5.76 5.64 5.77 5.75 5.75 5.76 4 2-month 5.57 5.38 5.14 5.82 5.91 5.67 5.81 5.71 5.80 5.80 5.80 5.83 5 3-month 5.56 5.34 5.18 5.81 5.87 5.74 5.87 5.79 5.85 5.86 5.86 5.88 Financial 6 1-month 5.59 5.42 5.11 5.38 6.02 5.62 5.78 5.65 5.79 5.77 5.77 5.77 7 2-month 5.59 5.40 5.16 5.85 5.95 5.72 5.84 5.74 5.82 5.84 5.84 5.87 8 3-month 5.60 5.37 5.22 5.85 5.93 5.81 5.90 5.82 5.88 5.88 5.90 5.92 Commercial paper (historical)3'5'7 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 5.94 6.00 5.88 5.94 5.87 5.94 5.93 5.94 5.96 16 6-month 5.57 5.30 5.30 5.83 5.94 5.99 6.11 5.98 6.05 6.10 6.11 6.15 Certificates of deposit, secondary market7"10 17 1-month 5.54 5.49 5.19 5.50 6.34 5.74 5.83 5.78 5.85 5.82 5.82 5.82 18 3-month 5.62 5.47 5.33 6.00 6.05 5.95 6.01 5.94 6.01 6.01 6.00 6.02 19 6-month 5.73 5.44 5.46 5.97 6.07 6.15 6.26 6.15 6.24 6.25 6.25 6.28 20 Eurodollar deposits, 3-month3'11 5.61 5.45 5.31 5.97 6.06 5.94 6.02 5.94 6.03 6.01 6.00 6.02 U.S. Treasury bills Secondary market3,5 ?] 3-month 5.06 4.78 4.64 5.07 5.20 5.32 5.55 5.41 5.50 5.49 5.55 5.62 ?? 6-month 5.18 4.83 4.75 5.20 5.44 5.50 5.72 5.55 5.66 5.72 5.74 5.74 23 1-year 5.32 4.80 4.81 5.24 5.51 5.75 5.84 5.78 5.86 5.83 5.85 5.84 Auction high 24 3-month 5.07 4.81 4.66 5.07 5.23 5.34 5.57 5.39 5.56 5.55 5.51 5.64 25 6-month 5.18 4.85 4.76 5.17 5.43 5.52 5.75 5.52 5.71 5.77 5.76 5.77 26 1-year 5.36 4.85 4.78 5.17 5.35 5.65 5.91 n.a. 5.91 n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities'3 71 1-year 5.63 5.05 5.08 5.55 5.84 6.12 6.22 6.17 6.24 6.20 6.23 6.22 28 2-year 5.99 5.13 5.43 5.86 6.10 6.44 6.61 6.48 6,61 6.68 6.65 6.54 29 3-year 6.10 5.14 5.49 5.92 6.14 6.49 6.65 6.54 6.63 6.74 6.71 6.57 30 5-year 6.22 5.15 5.55 5.97 6.19 6.58 6.68 6.63 6.66 6.76 6.74 6.59 31 7-year 6.33 5.28 5.79 6.17 6.38 6.70 6.72 6.72 6.70 6.80 6.76 6.63 32 10-year 6.35 5.26 5.65 6.03 6.28 6.66 6.52 6.68 6.58 6.62 6.55 6.38 33 20-year 6.69 5.72 6.20 6.48 6.69 6.86 6.54 6.77 6.61 6.60 6.55 6.44 34 30-year 6.61 5.58 5.87 6.15 6.35 6.63 6.23 6.57 6.33 6.30 6.23 6.13 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 6.42 6.63 6.81 6.49 6.73 6.56 6.56 6.50 66..3399 STATE AND LOCAL NOTES AND BONDS Moody's series14 36 Aaa 5.32 4.93 5.28 5.77 5.82 5.91 5.88 5.92 5.89 5.93 5.85 5.83 37 BBaaaa 5.50 5.14 5.70 6.23 6.25 6.38 6.35 6.39 6.37 6.39 6.34 6.31 38 BBoonndd BBuuyyeerr sseerriieess1155 5.52 5.09 5.43 5.86 5.95 6.08 6.00 6.08 6.05 6.02 5.98 5.94 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.73 7.87 8.06 7.96 7.99 7.92 7.98 7.99 7.96 Rating group 40 Aaa 7.27 6.53 7.05 7.36 77..5555 7.78 7.68 77..7733 7.65 7.69 7.70 7.68 41 Aa 7.48 6.80 7.36 7.62 7.78 7.96 7.82 7.86 7.78 7.84 7.84 7.82 4? A 7.54 6.93 7.53 7.79 7.96 8.15 8.02 8.08 8.02 8.08 8.09 8.04 43 Baa 7.87 7.22 7.88 8.15 8.19 8.33 8.29 8.29 8.22 8.30 8.32 8.29 MEMO Dividend-price ratio 44 Common stocks 1.77 1.49 1.25 1.21 1.18 1.18r 1.21 1.20 1.19 1.19 1.21 1.24 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 • May 2000 1.36 STOCK MARKET Selected Statistics 1999 2000 IInnddiiccaattoorr 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 629.53 648.83 621.03 607.87 599.04 634.22 638.17 634.07 606.03 2 Industrial 574.97 684.35 775.29 783.96 809.33 778.82 769.47 753.94 791.41 808.28 814.73 767.08 3 Transportation 415.08 468.61 491.62 520.66 528.72 492.13 462.33 450.13 474.78 461.04 456.35 398.69 4 Utility 143.87 190.52 284.82 241.36 250.50 241.84 237.71 285.16 502.58 511.78 485.82 482.30 5 Finance 424.84 516.65 530.97 546.43 557.92 521.59 493.37 490.92 539.20 510.99 495.23 471.65 6 Standard & Poor's Corporation (1941-43 = 10)1 873.43 1,085.50 1,327.33 1,322.55 1,380.99 1,327.49 1,318.17 1,300.01 1,390.99 1,428.68 1,425.59 1,388.88 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 772.01 803.75 781.33 788.74 786.96 819.60 838.24 878.73 910.00 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 723.025 721,294 709,569 772,627 882,422 866,281 884,141 1,058,021 1,032,791 9 American Stock Exchange 24,390 28,870 32,629 28,806 25,754 27,795 32,540 35,762 33,330 41,076 47,530 51,134 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers" 126,090 140,980 228,530 176,930 178,360 176,390 179,316 182,272 206,280 228,530 243,490 265,210 Free credit balances at brokers'' 11 Margin accounts5 31,410 40,250 55,130 42,865 44,330 44,230 47,125 51,040 49,480 55,130 57,800 56,470 12 Cash accounts 52,160 62,450 79,070 64,100 60,000 62,600 62,810 61,085 68,200 79,070 75,760 79,700 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 Sept. Oct. Nov. Dec. Jan. Feb. U.S. budget1 1 Receipts, total 1,579,292 1,721,798 1,827,454 200,413 121,035 121,375 201,196 189,478 108,675 2 On-budget 1,187,302 1,305,999 1,382,986 161,321 89,009 86,909 162,772 143,838 71,090 3 Off-budget 391,990 415,799 444,468 39,092 32,026 34,466 38,424 45,640 37,585 4 Outlays, total 1,601,235 1,652,552 1,702,940 142,369 147,691 148,407 168,114 127,326 150,409 5 On-budget 1,290,609 1,335,948 1,382,262 107,250 119,495 116,387 165,504 97,451 118,340 6 Off-budget 310,626 316,604 320,778 35,119 28,196 32,020 2,611 29,875 32,069 7 Surplus or deficit (—), total -21,943 69,246 124,414 58,044 -26,656 -27,031 33,081 62,152 -41,734 8 On-budget -103,307 —29,949 724 54,071 -30,486 -29,478 -2,732 46,387 -47,250 9 Off-budget 81,364 99,195 123,690 3,973 3,830 2,446 35,813 15,765 5,516 Source of financing (total) 10 Borrowing from the public 38,171 -51,211 -88,304 -47,718 5,754 6,132 35,749 -83,985 17,131 11 Operating cash (decrease, or increase (—)) 604 4,743 -17,580 -20,069 8,891 41,488 -77,248 20,592 40,773 12 Other2 -16,832 -22,778 -18,530 9,743 12,011 -20,589 8,418 1,241 -16,170 MEMO 13 Treasury operating balance (level, end of period) 43,621 38,878 56,458 56,458 47,567 6,079 83,327 62,735 21,962 14 Federal Reserve Banks 7,692 4,952 6,641 6,641 4,527 5,025 28,402 6,119 5,004 15 Tax and loan accounts 35,930 33,926 49,817 49,817 43,040 1,054 54,925 56,615 16,958 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 • May 2000 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS' Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1998 1999 1999 2000 11999988 11999999 HI H2 HI H2 Dec. Jan. Feb. RECEIPTS 1 All sources 1,721,798 1,827,454 922,630 825,057 966,045 892,266r 201,196 189,478 108,675 2 Individual income taxes, net 828,586 879,480 447,514 392,332 481,527 425,451 94,535 111,306 45,731 3 Withheld 646,483 693,940 316,309 339,144 351,068 372,012 88,311 65,922 65,868 4 Nonwithheld 281,527 308,185 219,136 65,204 240,278 68,302 7,373 46,556 3,730 5 Refunds 99,476 122,706 87,989 12,032 109,467 14,841 1,149 1,173 23,875 Corporation income taxes 6 Gross receipts 213,008 216,324 109,353 104,163 106,861 110,111 46.486 7,135 4,903 7 Refunds 24,593 31,645 14,220 14,250 17,092 13,996 1,540 1,800 3,126 8 Social insurance taxes and contributions, net . . . 571,831 611,833 312,713 268,466 324,831 292,551 48,421 60,484 50,514 9 Employment taxes and contributions2 540,014 580,880 293,520 256,142 306,235 280,059 47,742 58,819 47,859 10 Unemployment insurance 27,484 26,480 17,080 10,121 16,378 10,173 266 1,319 2,280 11 Other net receipts3 4,333 4,473 2,112 2,202 2,216 2,319 412 346 376 12 Excise taxes 57,673 70,414 29,922 33,366 31,015 34,262r 5,709 5,316 5,076 13 Customs deposits 18,297 18,336 8,546 9,838 8,440 10,287 1,612 1,457 1,212 14 Estate and gift taxes 24,076 27,782 12,971 12,359 14,915 14,001 2,575 2,116 1,768 15 Miscellaneous receipts4 32,658 34,929 15,829 18,735 15,140 19,569r 3,398 3,464 2,597 OUTLAYS 16 All types 1,652,552 l,702,940r 815,884 877,414 817,227r 882,794r 168,114 127,326 150,409 17 National defense 268,456 274,873 129,351 140,196 134,414 149,820 31,261 17,581 22,136 18 International afFairs 13,109 15,243 4,610 8,297 6,879 8,530 3,527 1,404 1,366 19 General science, space, and technology 18,219 18,125 9,426 10,142 9,319 10,089 1,853 1,229 1,569 20 Energy 1,270 912 957 699 797 -90 32 94 -238 21 Natural resources and environment 22,396 23,970r 10,051 12,671 10,351 12,100r 2,350 1,490 1,779 22 Agriculture 12,206 23,011 2,387 16,757 9,803 20,887 4,362 4,213 1,896 23 Commerce and housing credit 1,014 2,649r -2,483 4,046 -1,629 7,353r -696 -1,336 -1.685 24 Transportation 40,332 42,531 16,196 20,836 17,082 22,971 3,858 3,112 2,909 25 Community and regional development 9,720 11,870 4,863 6,972 5,368 7,135 1,300 270 -23 26 Education, training, employment, and social services 54,919 56,402 25,928 27,762 29,003 27,532 5,593 4,788 5,385 27 Health 131,440 141,079 65,053 67,838 69,320 74,490 13,462 11,575 11,567 28 Social security and Medicare 572,047 580,488 286,305 316,809 261,146 295,030 52,720 45,336 49,858 29 Income security 233,202 237,707 125,196 109,481 126,552 113,504 23,747 16,565 32,110 30 Veterans benefits and services 41,781 43,212 19,615 22,750 20,105 23,412 5,320 1,991 3,741 31 Administration of justice 22,832 25,924 11,287 12,041 13.149 13,459 2,163 2,224 2,147 32 General government 13,444 15,771r 6,139 9,136 6,64 lr 7,006r 1,974 490 38 33 Net interest5 243,359 229,735 122,345 116,954 116,655 112,420 18,328 19,428 18,884 34 Undistributed offsetting receipts6 -47,194 -40,445 -21,340 -25,793 -17,724 -22,850 -3,040 -3,129 -3,030 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 All 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 3,716r 4 Held by agencies 1,656 1,670 1,758 1,766 1,827 1,857 1,954 1,989 2,06 r 5 Agency securities 34 31 30 29 29 29 29 29 29 6 Held by public 27 26 26 26 29 28 28 28 28r 7 Held by agencies 7 5 4 4 1 1 1 1 lr 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 US. 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 5,776.1 5,651.6 5,638.8 5,656.3 5,776.1 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 bonds' 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 holder 5 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. 246.5r 240.6r 240.6 n.a. 20 Mutual funds 315.8 321.5 343.2 n.a. 351.8r 335.4r 332.6 n.a. 21 Insurance companies 214.1 176.6 144.5r n.a. 143.8 142.5r 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 187.0 186.5 186.7 186.5 186.6 186.6 186.6r 186.5 24 Pension funds 392.7 421.0 434.7 n.a. 438.3r 449. r 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. 218.3r 222.5r 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 investors6,8 665.9 527.9 439.6 n.a. 416.6 307.4r 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 • May 2000 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 1999 2000 1999-2000, week ending 2000, week ending item Nov. Dec. Jan. Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Feb. 23 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 3333,,110066rr 3322,,115522rr 2277,,227700 34,003 30,830 28,132 26,516 23,388 29,997 25,658 28,301 36,030 Coupon securities, by maturity 2 Five years or less 110000,,772200rr 7722,,667700rr 104,587 3377,,661155 77,282 99,003 93,941 120,711 132,069 123,653 107,635 111,093 3 More than five years 64,919r 42,039 68,628 16,996 41,462 64,020 65,701 76,617 95,038 117,810 82,512 65,400 4 Inflation-indexed 750 481 1,548 318 743 2,950 1,309 827 1,618 1,379 601 687 Federal agency 5 Discount notes 4488,,001144rr 44,153r 47,295 4433,,557777 39,820 43,264 48,908 48,762 56,356 57,374 52,220 47,914 Coupon securities, by maturity 6 One year or less 779944rr 779922 11,,449966 558899 683 1,905 1,779 1,716 790 876 1,245 1,236 7 More than one year, but less than or equal to five years 5,867r 4,356 8,147 2,071 4,500 10,158 7,655 9,228 7,461 7,940 11,369 7,153 8 More than five years 4,039r 2,886 7,269 894 1,810 14,777 4,311 5,897 7,432 9,004 9,240 5,113 9 Mortgage-backed 55,736 43,291 66,234 10,951 41,333 96,924 74,707 46,093 59,435 103,218 66,634 50,841 By type of counterparty With interdealer broker 10 U.S. Treasury 104,228r 77,166r 102,847 45,922 78,684 97,212 98,129 111,093 130,522 136,646 112,587 106,793 11 Federal agency 4,651' 3,741r 6,092 2,597 3,372 6,498 5,476 6,697 8,152 8,417 7,220 6,855 12 Mortgage-backed 20,443 16,453 25,422 3,223 15,946 32,779 28,794 20,734 24,832 36,862 28,271 22,804 With other 13 U.S. Treasury 95,267r 70,174r 99,186 43,008 71,633 96,893 89,337 110,452 128,200 131,854 106,461 106,417 14 Federal agency 54,063r 48,447r 58,115 44,533 43,442 63,604 57,177 58,906 63,887 66,776 66,854 54,560 15 Mortgage-backed 35,294 26,838 40,812 7,728 25,386 64,145 45,914 25,359 34,602 66,356 38,363 28,037 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S." Treasury bills .' n.a. n.a. 0 n.a. n.a. n.a. 0 n.a. 0 n.a. 0 0 Coupon securities, by maturity 17 Five years or less 3,292r 3,356r 3,687 668 2,782 3,550 2,921 3,222 6,875 6,521 5,817 5,662 18 More than five years 16,038r 12,095r 18,119 4,105 11,224 16,249 19,068 19,182 24,776 26,651 16,193 20,458 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 1.8161 1,045' 1,457 456 1,105 1,676 1,623 1,439 1,200 1,480 1,145 1,847 27 More than five years 4,759r 3,831' 5,536 0 5,118 7,460 3,941 4,987 6,323 6,800 4,147 7,022 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 0 n.a. 0 0 0 0 0 0 0 32 More than five years 0 0 0 0 n.a. 0 0 0 0 0 0 0 33 Mortgage-backed 671 577' 647 0 432 370 1,203 590 494 931 404 948 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4, Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 1999-2000, week ending 2000, week ending Nov. Dec. Jan. Dec. 29 Jan. 5 Jan. 12 Jan. 19 Jan. 26 Feb. 2 Feb. 9 Feb. 16 Positions2 NET OUTRIGHT POSITIONS- By type of security 1 U.S. Treasury bills 9,570r 21,385r 14,304 16,191 25,113 22,050 11,137 8,118 5,747 3,667 -2,846 Coupon securities, by maturity 2 Five years or less -28,928r — 24,622r -38,777 -21,275 -34,261 —42,507 -43,659 -31,790 -41,018 -39,008 -40,533 3 More than five years -23,25 lr —29,849r -32,995 -31,002 -32,798 -32,520 -33,589 -36,048 -28,754 -21,045 -23,939 4 Inflation-indexed 3,164 2,438 2,894 2,041 2,150 2,739 3,303 2,626 3,659 3,131 3,049 Federal agency 5 Discount notes 43,941 45,011 39,668 44,790 47,888 37,799 38,342 41,467 33,400 41,209 35,515 Coupon securities, by maturity 6 One year or less 6,272r 5,436 7,101 5,043 5,179 6,271 6,797 8,558 8,571 8,474 10,855 7 More than one year, but less than or equal to five years 4,525r 1,910 7,172 114 1,824 6,276 8,669 10,333 7,252 2,519 7,556 8 More than five years 3,356r 2,706r 6,114 2,187 3,606 7,382 7,414 5,808 5,453 3,162 4,627 9 Mortgage-backed 23,743 25,603 21,183 26,331 23,834 24,008 27,317 15,517 13,922 18,182 20,133 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills n.a. 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 11 Five years or less 4,327r 7,121r 11,986 6,865 10,084 13,989 12,347 10,623 12,487 17,902 13,660 12 More than five years 324 408 8,056 1,455 4,336 7,687 10,229 10,737 5,497 1,658 -615 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 00 0 0 0 0 0 0 0 17 More than five years 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 —475r — l,855r -3,840 -2,483 -3,413 -4,289 -4,939 -3,192 -3,009 -3,616 -3,870 21 More than five years -359r 241r -1,465 593 -2,202 -3,562 -3,911 1,129 2,003 2,310 2,222 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 175 n.a. 0 n.a. n.a. 0 0 n.a. n.a. n.a. n.a. 26 More than five years 29 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27 Mortgage-backed -272 1,260 2,215 1,360 2,043 1,804 2,498 2,188 2,602 3,271 2,616 Financing5 Reverse repurchase agreements 28 Overnight and continuing 288,146 260,169 281,382 237,547 264,786 273,333 286,065 284,404 298,458 281,516 313,199 29 Term 799,629 847,806 729,307 881,410 670,899 735,505 718,016 754,718 759,268 823,767 652,298 Securities borrowed 30 Overnight and continuing 239,510 224,527 240,177 220,331 217,192 225,106 245,091 248,722 265,418 262,639 258,495 31 Term 97,728 117,116 112,088 130,567 130,230 122,843 105,809 103,952 99,073 102,979 101,040 Securities received as pledge 32 Overnight and continuing 1,965 1,647 1,677 n.a. n.a. n.a. n.a. 1,709 1,632 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 673,755 647,385 690,465 587,167 639,876 670,637 708,930 707,884 718,575 727,628 742,894 35 Term 715,763 761,776 619,703 823,824 581,011 626,160 601,385 644,252 640,630 682,425 517,879 Securities loaned 36 Overnight and continuing 9,049 8,843 9,344 9,012 7,970 8,711 9,012 10,005 11,143 11,513 9,980 37 Term 6,744 7,283 7,149 8,040 8,026 7,855 6,544 6,633 6,856 6,642 5,732 Securities pledged 38 Overnight and continuing 50,099 49,236 47,887 46,612 46,789 44,444 50,609 48,243 49,496 50,432 48,757 39 Term 6,745 10,713 10,985 13,866 14,118 13,837 8,608 9,529 9,223 7,750 8,255 Collateralized loans 40 Total 23,590 14,892 20,093 23,821 26,109 22,766 17,113 19,539 15,282 16,272 17,367 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 • May 2000 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1999 AAggeennccyy 11999966 11999977 11999988 11999999 Aug. Sept. Oct. Nov. Dec. 1 Federal and federally sponsored agencies 925,823 1,022,609 1,296,477 1,616,492 1,491,900 1,525,916 n.a. n.a. 1,616,492 2 Federal agencies 29,380 27,792 26,502 26,376 26,107 26,384 28,218 28,218 26,376 3 Defense Department1 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2'3 1,447 552 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 84 102 205 126 109 114 126 126 126 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. V Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 27,853 27,786 26,496 26,370 26,101 26,378 28,212 28,212 26,370 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 896,443 994,817 1,269,975 1,590,116 1,465,793 1,499,532 n.a. n.a. 1,590,116 11 Federal Home Loan Banks 263,404 313,919 382,131 529,005 458,320 481,639 489,401 502,842 529,005 12 Federal Home Loan Mortgage Corporation 156,980 169,200 287,396 360,711 340,972 341,144 352,487 357,317 360,711 13 Federal National Mortgage Association 331,270 369,774 460,291 547,619 517,200 524,880 527,403 540,364 547,619 14 Farm Credit Banks8 60,053 63,517 63,488 68,883 67,269 67,938 68,338 67,654 68,883 15 Student Loan Marketing Association9 44,763 37,717 35,399 41,988 40,310 41,921 44,224 44,402 41,988 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 58,172 49,090 44,129 42,152 39,341 43,116 42,843R 42,843 42,152 Lending to federal and federally sponsored agencies + 2 2 0 1 P E o x s p t o a r l t- S I e m r p v o ic r e t 6 Bank3 n 1 . , a 4 . 31 n.a. 5 52 T FT T T FT F T FT 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 T U e n n it n e e d s s S e t e a t V es a l R le a y i l A w u ay th o A r s it s y o ciation6 n n . . a a . . n n . . a a . . 1 I 1 1 I T 1 •1 T I 1 I Other lending14 25 Farmers Home Administration 18,325 13,530 9,500 6,665 7,270 7,125 6,115' 6,775 6,665 26 Rural Electrification Administration 16,702 14,898 14,091 14,085 13,969 13,885 14,025r 14,025 14,085 21 Other 21,714 20,110 20,538 21,402 18,102 22,106 22,043r 22,043 21,402 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 iissssuuee oorr iissssuueerr,, oorr uussee 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 AH issues, new and refunding1 214,694 262,342 215,427 18,671 15,746 18,433 17,497 17,428 14,751 8,969 10,905 By type of issue 2 General obligation 69,934 87,015 73,308 6,206 4,268 5,171 4,183 4,996 3,715 3,454 4,473 3 Revenue 134,989 175,327 142,120 12,465 11,478 13,262 13,314 12,433 11,035 5,516 6,433 By type of issuer 4 State 18,237 23,506 16,376 2,194 911 2,341 1,753 929 834 863 1,730 5 Special district or statutory authority2 134,919 178,421 152,418 13,572 11,578 13,449 12,186 12,613 10,640 5,784 7,414 6 Municipality, county, or township 70,558 60,173 46,634 2,906 3,257 2,642 3,557 3,886 3,277 2,322 1,761 7 Issues for new capital 135,519 160,568 161,065 12,172 12,530 14,973 14,908 14,084 11,475 8,009 9,382 By use of proceeds 8 Education 31,860 36,904 36,563 3,415 2,842 2,885 2,049 2,732 3,095 2,189 2,548 9 Transportation 13,951 19,926 17,394 1,264 1,955 1,886 1,674 892 1,201 1,064 723 10 Utilities and conservation 12,219 21,037 15,098 535 1,038 1,976 1,176 1,893 1,008 588 115 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 9,099 850 585 1,271 726 668 707 89 647 13 Other purposes 35,095 42,450 47,896 2,729 3,255 3,941 4,509 5,213 3,141 2,885 2,804 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 2000 TTyyppee ooff oo rr ii ssss iiss uu ss ee uu ,, ee oo rr ffffeerriinngg,, 11999977 11999988 11999999rr June July Aug. Sept. Oct. Nov. Dec.r Jan. 1 All issues1 929,256 1,128,491 1,072,877 96,608 96,608 83,466 82,414 58,613 85,016r 50,815 55,550 2 Bonds2 811,376 1,001,736 941,309 88,338 83,546 75,708 75,807 47,103 61,033 42,487 44,220 By type of offering 3 Sold in the United States 708,188 923,771 818,694 79,031 69,451 63,383 65,679 37,721 53,908 36,499 30,784 4 Sold abroad 103,188 77,965 122,615 9,306 14,095 12,325 10,128 9,382 7,125 5,989 13,436 MEMO 5 Private placements, domestic n.a. n.a. n.a. 6,441 2,133 1,670 1,640 1,632 1,237 3,241 967 By industry group 6 Nonfinancial 222,603 307,935 293,974 24,531 25,526 22,704 20,655 13,990 24,283 14,625 14,599 7 Financial 588,773 693,801 647,335 63,807 58,020 53,005 55,151 33,112 36,750 27,863 29,620 8 Stocks3 117,880 126,755 131,568 8,270 13,062 7,758 6,607 11,510 23,983r 8,328 11,330 By type of offering 9 Public 117,880 126,755 131,568 8,270 13,062 7,758 6,607 11,510 23,983r 8,328 11,330 10 Private placement4 55,450 78,850 86,300 7,192 7,192 7,192 7,192 7,192 7,192 7,192 n.a. By industry group 11 Nonfinancial 60,386 74,113 110,284 6,436 11,589 6,379 5,647 10,961 22,61 lr 77,,445500 9,083 12 Financial 57,494 52,642 21,284 1,834 1,473 1,379 960 549 1,372 887788 2,247 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 • May 2000 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 2000 IItteemm 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. 1 Sales of own shares2 1,461,430 1,791,894 140,926 132,991 132,226 140,738 155,490 185,898 226,251 237,595 2 Redemptions of own shares 1,217,022 1,621,987 128,173 125,908 126,207 124,052 143,688 178,855 204,380 197,214 3 Net sales3 244,408 169,906 12,754 7,084 6,019 16,686 11,801 7,042 21,871 40,381 4 Assets4 4,173,531 5,233,191 4,585,131 4,548,784 4,498,964 4,705,746 4,874,733 5,233,191 5,114,482 5,378,593 5 Cash5 191,393 219,189 209,061 209,349 209,709 225,762 214,751 219,189 222,729 233,181 6 Other 3,982,138 5,014,002 4,376,070 4,339,435 4,289,255 4,479,985 4,659,982 5,014,002 4,891,753 5,145,412 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 QI 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 52.0R SOURCE. U.S. Department of Commerce, Survey of Current Business. 1.51 DOMESTIC FINANCE COMPANIES Assets and Liabilities1 Billions of dollars, end of period; not seasonally adjusted 1998 1999 AAccccoouunntt 11999977 11999988 11999999 Q2 Q3 Q4 QL Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 663.3 711.7 812.5 676.0 687.6 711.7 733.8 756.5 776.3 812.5 2 Consumer 256.8 261.8 279.8 251.3 254.0 261.8 261.7 269.2 271.0 279.8 3 Business 318.5 347.5 406.2 334.9 335.1 347.5 362.8 373.7 383.0 406.2 4 Real estate 87.9 102.3 126.5 89.9 98.5 102.3 109.2 113.5 122.3 126.5 5 LESS: Reserves for unearned income 52.7 56.3 54.1 53.2 52.4 56.3 52.9 53.4 54.0 54.1 6 Reserves for losses 13.0 13.8 13.6 13.2 13.2 13.8 13.4 13.4 13.6 13.6 7 Accounts receivable, net 597.6 641.6 744.8 609.6 622.0 641.6 667.6 689.7 708.6 744.8 8 All other 312.4 337.9 388.1 340.1 313.7 337.9 363.3 373.2 368.5 388.1 9 Total assets 910.0 979.5 1,132.9 949.7 935.7 979.5 1,030.8 1,062.9 1,077.2 1,132.9 LIABILITIES AND CAPITAL 10 Bank loans 24.1 26.3 35.1 22.3 24.9 26.3 24.8 25.1 27.0 35.1 11 Commercial paper 201.5 231.5 223.9 225.9 226.9 231.5 222.9 231.0 205.3 223.9 Debt 12 Owed to parent 64.7 61.8 105.8 60.0 58.3 61.8 64.6 65.4 84.5 105.8 13 Not elsewhere classified 328.8 339.7 394.8 348.7 337.6 339.7 366.7 383.1 396.2 394.8 14 All other liabilities 189.6 203.2 228.9 188.9 185.4 203.2 220.3 226.1 216.0 228.9 15 Capital, surplus, and undivided profits 101.3 117.0 144.5 103.9 103.6 117.0 131.5 132.2 148.2 144.5 16 Total liabilities and capital 910.0 979.5 1,132.9 949.7 936.6 979.5 1,030.8 1,062.9 1,077.2 1,132.9 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses, and banks. Data are amounts carried on the balance sheets of finance companies; securitized pools are not shown, as they are not on the books. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Market and Corporate Finance A33 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 1999 2000 TTyyppee ooff ccrreeddiitt 11999977 11999988 11999999rr Aug. Sept. Oct. Nov. Dec. Jan. Seasonally adjusted 1 Total 810.5 875.8 993.9 967.4 972.8 980.6r 984.8r 993.9r 1,019.1 2 Consumer 327.9 352.8 385.3 380.8 381.9 384.0 385.2 385.3r 391.4 3 Real estate 121.1 131.4 154.7 146.7 148.9 149.3 152.7 154.7 158.9 4 Business 361.5 391.6 453.9 439.9 442.0 447.2r 446.9r 453.9 468.9 Not seasonally adjusted 5 Total 818.1 884.0 1,003.2 962.2 968.4 978.8r 986.3r l,003.2r 1,019.1 6 Consumer 330.9 356.1 388.8 382.0 383.1 384.5 386.5 388.8r 390.8 7 Motor vehicles loans 87.0 103.1 114.7 112.7 109.5 110.2 111.6 114.7r 117.5 8 Motor vehicle leases 96.8 93.3 98.3 98.3 98.1 98.4 99.1 98.3 99.3 9 Revolving2 38.6 32.3 33.8 33.0 30.7 31.5 30.5 33.8r 33.9 10 Other3 34.4 33.1 33.1 31.6 32.8 32.4 33.2 33.lr 33.1 Securitized assets4 11 Motor vehicle loans 44.3 54.8 71.1 68.0 73.5 74.1 74.6 71.1 69.6 12 Motor vehicle leases 10.8 12.7 9.7 10.8 10.6 10.3 10.0 9.7 9.5 13 Revolving .0 8.7 10.5 9.4 10.2 10.1 10.2 10.5 10.4 14 Other 19.0 18.1 17.7 18.1 17.8 17.6 17.4 17.7 17.4 15 Real estate 121.1 131.4 154.7 146.7 148.9 149.3 152.7 154.7 158.9 16 One- to four-family 59.0 75.7 88.3 86.0 87.7 87.7 89.4 88.3 90.8 17 Other 28.9 26.6 38.3 33.7 34.6 35.1 37.1 38.3 38.6 Securitized real estate assets4 18 One- to four-family 33.0 29.0 28.0 26.8 26.5 26.2 25.9 28.0 29.3 19 Other .2 .1 .2 .2 .2 .2 .2 .2 .2 20 Business 366.1 396.5 459.6 433.5 436.3 445.0r 447.r 459.6 469.5 21 Motor vehicles 63.5 79.6 87.8 78.6 80.3 84.3 85.4 87.8 88.1 22 Retail loans 25.6 28.1 33.2 33.3 34.5 34.9 33.7 33.2 33.5 23 Wholesale loans5 27.7 32.8 34.7 26.8 26.8 30.3 32.6 34.7 34.6 24 Leases 10.2 18.7 19.9 18.5 19.0 19.1 19.2 19.9 19.9 25 Equipment 203.9 198.0 221.9 210.5 208.0 212.8r 211.2r 221.9 222.4 26 Loans 51.5 50.4 52.2 53.1 48.2 51.5r 49.1 52.2 51.8 27 Leases 152.3 147.6 169.7 157.4 159.8 161.3 162.1r 169.7 170.5 28 Other business receivables6 51.1 69.9 95.5 92.7 94.7 97.1 98.2 95.5 97.6 Securitized assets4 29 Motor vehicles 33.0 29.2 31.5 30.4 31.0 28.8 30.6 31.5 31.5 30 Retail loans 2.4 2.6 2.9 2.7 2.6 2.5 3.0 2.9 2.9 31 Wholesale loans 30.5 24.7 26.4 25.7 26.4 24.3 25.6 26.4 26.5 32 Leases .0 1.9 2.1 2.0 2.0 2.0 2.0 2.1 2.1 33 Equipment 10.7 13.0 14.6 13.5 14.6 14.3 14.0 14.6 21.8 34 Loans 4.2 6.6 7.9 6.9 7.7 7.6 7.4 7.9 15.1 35 Leases 6.5 6.4 6.7 6.6 6.9 6.8 6.6 6.7 6.7 36 Other business receivables6 4.0 6.8 8.4 7.8 7.7 7.7 7.7 8.4 8.1 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 NonfinancialS tatistics • May 2000 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1999 2000 IItteemm 11999977 11999988 11999999 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 213.8 210.3 214.4 220.8 216.3 223.7 216.9 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 163.1 161.8 165.1 167.0 167.2 169.9 165.6 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 78.3 78.8 79.0 77.4 78.6 77.9 78.4 4 Maturity (years) 28.2 28.4 28.8 28.5 29.1 29.1 29.0 29.0 29.1 29.1 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .68 .64 .71 .73 .71 .75 .71 Yield (percent per year) 6 Contract rate' 7.57 6.95 6.94 6.99 6.99 7.06 7.13 7.18 7.34 7.43 7 Effective rate1'3 7.73 7.08 7.06 7.09 7.09 7.17 7.24 7.28 7.45 7.54 8 Contract rate (HUD series)4 7.76 7.00 7.45 7.87 7.76 7.77 7.79 7.95 8.21 8.20 SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.10 8.05 8.02 8.06 8.55 8.56 8.53 10 GNMA securities6 7.26 6.43 7.03 7.53 7.42 7.52 7.37 7.58 7.84 7.96 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 495,302 504,938 509,990 518,337 523,941 527,977 535,096 12 FHA/VA insured 31,925 33,770 55,318 47,846 49,456 50,639 52,632 55,318 57,369 58,294 13 Conventional 284,753 380,745 468,623 447,456 455,482 459,351 465,705 468,623 470,608 476,802 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 21,094 15,200 10,057 14,683 11,416 9,035 11,484 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 18,153 7,998 10,480 12,050 9,931 9,130 9,811 16 To sell8 1,298 1,880 5,900 478 609 1,710 381 1,592 1,287 612 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 164,421 255,010 324,443 306,214 315,968 318,682 323,027 324,443 325,914 328,598 18 FHA/VA insured 177 785 1,848 1,708 1,689 1,744 1,848 1,848 1,806 1,719 19 Conventional 164,244 254,225 322,595 304,506 314,279 316,938 321,179 322,595 324,108 326,879 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 18,674 15,238 13,323 11,869 9,335 12,942r 6,747 21 Sales 114,258 250,565 233,031 17,468 14,153 12,671 11,129 8,589 12,764r 6,424 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 18,951 14,608 10,810 10,501 11,587 8,341 7,156 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mortgages; from U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured exclude swap activity. by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A35 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1998 1999 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999966 11999977 11999988 Q4 QL Q2 Q3' Q4P 1 All holders 4,880,736r 5,184,691r 5,683,280r 5,683,280r 5,819,743r 5,968,122r 6,173,523 6,318,783 By type of property 2 One- to four-family residences 3,721,917 3,959,565 4,328,434 4,328,434 4,420,898' 4,533,031' 4,663,148 4,759,962 3 Multifamily residences 288,929r 301,516r 328,714r 328,714r 339,266' 346,240' 357,423 370,381 4 Nonfarm, nonresidential 782,755r 833,31 lr 929,626r 929,626r 962,175' 989,206' 1,051,551 1,085,896 5 Farm 87,134 90,299 96,506 96,506 97,404 99,644' 101,403 102,544 By type of holder 6 Major financial institutions 1,981,885 2,083,978 2,194,813r 2,194,813r 2,202,306' 2,242,525' 2,321,448 2,393,404 7 Commercial banks2 1,145,389 1,245,315 1,337,217 1,337,217 1,336,733' 1,361,365' 1,418,819 1,495,717 8 One- to four-family 677,603 745,510 797,195r 797,195r 782,135' 790,043' 826,936 879,299 9 Multifamily 45,451 49,670 52,871 52,871 56,731' 59,15 lr 62,477 66,010 10 Nonfarm, nonresidential 397,452 423,148 458,115 458,115 468,355' 481,635' 498,087 518,569 11 Farm 24,883 26,986 29,035 29,035 29,513' 30,536r 31,320 31,839 12 Savings institutions3 628,335 631,822 643,957 643,957 646,510 656,518 676,346 668,634 13 One- to four-family 513,712 520,672 533,792 533,792 534,772 544,832 560,483 548,926 14 Multifamily 61,570 59,543 56,825 56,825 56,763 55,020 57,286 59,143 15 Nonfarm, nonresidential 52,723 51,252 52,923 52,923 54,539 56,222 58,118 60,090 16 Farm 331 354 417 417 435 443 459 475 17 Life insurance companies 208,161 206,841 213,640 213,640 219,063 224,642 226,282 229,053 18 One- to four-family 6,977 7,187 6,590 6,590 6,956 7,295 7,435 7,278 19 Multifamily 30,750 30,402 31,522 31,522 31,528 31,813 32,011 32,460 20 Nonfarm, nonresidential 160,314 158,780 164,004 164,004 168,862 173,568 174,642 177,092 21 Farm 10,120 10,472 11,524 11,524 11,717 11,966 12,194 12,223 22 Federal and related agencies 295,192 286,167 292,636 292,636 288,176' 288,038 322,098 321,717 23 Government National Mortgage Association 2 8 7 7 6 8 8 7 24 One- to four-family 2 8 7 7 6 8 8 7 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 41,596 41,195 40,851 40,851 40,691 40,766 73,705 73,871 27 One- to four-family 17,303 17,253 16,895 16,895 16,777 16,653 16,583 16,506 28 Multifamily 11,685 11,720 11,739 11,739 11,731 11,735 11,745 11,741 29 Nonfarm, nonresidential 6,841 7,370 7,705 7,705 7,769 7,943 41,068 41,355 30 Farm 5,768 4,852 4,513 4,513 4,413 4,435 4,308 4,268 31 Federal Housing and Veterans' Administrations 6,244 3,821 3,674 3,674 3,538' 3,490 3,889 3,737 32 One- to four-family 3,524 1,767 1,849 1,849 1,713' 1,623 2,013 1,862 33 Multifamily 2,719 2,054 1,825 1,825 1,825 1,867 1,876 1,876 34 Resolution Trust Corporation 0 0 0 0 0 0 0 0 35 One- to four-family 0 0 0 0 0 0 0 0 36 Multifamily 0 0 0 0 0 0 0 0 37 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 2,431 724 361 361 315 189 163 152 40 One- to four-family 365 109 54 54 47 28 24 23 41 Multifamily 413 123 61 61 54 32 28 26 42 Nonfarm, nonresidential 1,653 492 245 245 214 129 111 103 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 168,813 161,308 157,675 157,675 157,185 155,637 154,420 152,633 45 One- to four-family 155,008 149,831 147,594 147,594 147,063 145,033 142,982 141,195 46 Multifamily 13,805 11,477 10,081 10,081 10,122 10,604 11,438 11,438 47 Federal Land Banks 29,602 30,657 32,983 32,983 33,128 33,666 34,218 34,640 48 One- to four-family 1,742 1,804 1,941 1,941 1,949 1,981 2,013 2,038 49 Farm 27,860 28,853 31,042 31,042 31,179 31,685 32,205 32,602 50 Federal Home Loan Mortgage Corporation 46,504 48,454 57,085 57,085 53,313 54,282 55,695 56,676 51 One- to four-family 41,758 42,629 49,106 49,106 44,140 43,574 44,010 44,321 52 Multifamily 4,746 5,825 7,979 7,979 9,173 10,708 11,685 12,355 53 Mortgage pools or trusts5 2,044,049r 2,240,928r 2,587,942r 2,587,942r 2,715,181' 2,810,119' 2,891,145 2,954,654 54 Government National Mortgage Association 506,340 536,879 537,446 537,446 543,280 553,196' 569,038 582,296 55 One- to four-family 494,158 523,225 522,498 522,498 527,886 537,287' 552,670 565,222 56 Multifamily 12,182 13,654 14,948 14,948 15,395 15,909 16,368 17,074 57 Federal Home Loan Mortgage Corporation 554,260 579,385 646,459 646,459 687,179 718,085 738,581 749,081 58 One- to four-family 551,513 576,846 643,465 643,465 684,240 714,844 735,088 744,619 59 Multifamily 2,747 2,539 2,994 2,994 2,939 3,241 3,493 4,462 60 Federal National Mortgage Association 650,780 709,582 834,518 834,518 881,815 911,435 938,484 960,883 61 One- to four-family 633,210 687,981 804,205 804,205 849,513 877,863 903,531 924,941 62 Multifamily 17,570 21,601 30,313 30,313 32,302 33,572 34,953 35,942 63 Farmers Home Administration4 3 2 1 1 1 1 0 0 64 One- to four-family 0 0 0 0 0 0 0 0 65 Multifamily 0 0 0 0 0 0 0 0 66 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 67 Farm 3 2 1 1 1 1 0 0 68 Private mortgage conduits 332,666r 415,080r 569,518r 569,518r 602,906' 627,403' 645,041 662,394 69 One- to four-family6 261,900 318,000 410,900 410,900 430,653 447,938 455,276 462,600 70 Multifamily 16,113r 20,278r 32,586r 32,586r 35,455' 37,065' 38,551 40,164 71 Nonfarm, nonresidential 54,654r 76,802r 126,033r 126,033' 136,798' 142,400' 151,215 159,630 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 559,609 573,619 607,888 607,888 614.081 627,440' 638,833 649,008 74 One- to four-family 363,143 366,744 392,343 392,343 393,047 404,028 414,094 421,125 75 Multifamily 69,179 72,629 74,971 74,971 75,249 75,524 75,512 77,690 76 Nonfarm, nonresidential 109,119 115,467 120,600 120,600 125,638 127,310 128,311 129,057 77 Farm 18,169 18,779 19,974 19,974 20,147 20,578' 20,917 21,137 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 • May 2000 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1999 2000 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999rr Aug. Sept. Oct.r Nov.1" Dec/ Jan. Seasonally adjusted 1 Total 1,234,122 1,300,491 1,395,406 1,363,184 1,366,575 1,371,887 1,385,037 1,395,406 1,412,361 2 Revolving 531,295 560,653 595,964 584,523 584,512 584,845 589,803 595,964 603,455 3 Nonrevolving2 702,828 739,838 799,442 778,661 782,063 787,041 795,233 799,442 808,906 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,428,519 1,364,404 1,370,079 1,376,998 1,391,686 1,428,519 1,421,679 By major holder 5 Commercial banks 512,563 508,932 499,758 476,561 472,524 474,042 480,763 499,758 498,137 6 Finance companies 160,022 168,491 181,573 177,331 172,956 174,081 175,296 181,573 184,553 / Credit unions 152,362 155,406 170,284 162,412 164,055 165,912 167,887 170,284 170,168 8 Savings institutions 47,172 51,611 61,527 59,091 60,055 60,544 61,035 61,527 62,019 9 Nonfinancial business 78,927 74,877 80,316 68,896 67,456 67,965 70,289 80,316 76,041 10 Pools of securitized assets3 313,057 372,425 435,061 420,113 433,033 434,454 436,416 435,061 430,761 By major type of credit4 11 Revolving 555,858 586,528 623,444 580,691 581,361 583,612 592,179 623,444 614,056 12 Commercial banks 219,826 210,346 189,352 170,272 168,882 167,469 172,345 189,352 184,353 13 Finance companies 38,608 32,309 33,814 33,014 30,731 31,453 30,512 33,814 33,938 14 Credit unions 19,552 19,930 20,840 19,335 19,489 19,452 19,739 20,840 20,325 IS Savings institutions 11,441 12,450 15,838 13,233 13,461 14,254 15,046 15,838 16,631 16 Nonfinancial business 44,966 39,166 42,783 35,421 34,156 34,534 36,002 42,783 39,746 17 Pools of securitized assets3 221,465 272,327 320,817 309,416 314,642 316,450 318,535 320,817 319,063 18 Nonrevolving 708,245 745,214 805,075 783,713 788,718 793,386 799,507 805,075 807,623 19 Commercial banks 292,737 298,586 310,406 306,289 303,642 306,573 308,418 310,406 313,784 20 Finance companies 121,414 136,182 147,759 144,317 142,225 142,628 144,784 147,759 150,615 21 Credit unions 132,810 135,476 149,444 143,077 144,566 146,460 148,148 149,444 149,843 22 Savings institutions 35,731 39,161 45,689 45,858 46,594 46,290 45,989 45,689 45,388 23 Nonfinancial business 33,961 35,711 37,533 33,475 33,300 33,431 34,287 37,533 36,295 24 Pools of securitized assets3 91,592 100,098 114,244 110,697 118,391 118,004 117,881 114.244 111,698 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 2000 IItteemm 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. Jan. INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 n.a. 8.44 n.a. n.a. 8.66 n.a. n.a. 2 24-month personal 13.90 13.74 13.39 n.a. 13.38 n.a. n.a. 13.52 n.a. n.a. Credit card plan 3 All accounts 15.77 15.71 15.21 n.a. 15.08 n.a. n.a. 15.13 n.a. n.a. 4 Accounts assessed interest 15.57 15.59 14.81 n.a. 14.79 n.a. n.a. 14.77 n.a. n.a. Auto finance companies 5 New car 7.12 6.30 6.66 6.68 6.28 6.47 7.07 7.44 7.32 7.18 6 Used car 13.27 12.64 12.60 12.67 12.96 13.13 13.28 13.27 13.28 12.95 OTHER TERMS3 Maturity (months) 7 New car 54.1 52.1 52.7 52.0 51.7 52.1 53.2 53.9 53.4 52.9 8 Used car 51.0 53.5 55.9 56.1 55.8 55.9 55.8 55.8 55.6 56.8 Loan-to-value ratio 9 New car 92 92 92 92 92 92 92 91 91 91 10 Used car 99 99 99 99 100 100 100 99 99 98 Amount financed (dollars) 11 New car 18,077 19,083 19,880 19,873 20,012 20,154 20,335 20,517 20,699 20,503 12 Used car 12,281 12,691 13,642 13,609 13,374 13,449 13,613 13,777 13,970 13,906 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A37 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q2 Q3 Q4 Q1 Q2 Q3' Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors ... 568.0r 712.0r 735.6r 775.8r l,011.3r l,033.7r 888.2r l,056.5r l,276.6r 871.5r 1,168.2 1,107.4 By sector and instrument 2 Federal government 155.8 144.4 145.0 23.1 -52.6 -28.4 -113.5 -54.1 -75.2 -112.2 -83.1 -16.9 3 Treasury securities 155.7 142.9 146.6 23.2 -54.6 -26.9 -113.1 -66.3 -73.7 -112.8 -83.2 -16.9 4 Budget agency securities and mortgages .2 1.5 -1.6 -.1 2.0 -1.4 -.4 12.2 -1.5 .6 .0 .0 5 Nonfederal 412.2r 567.6 590.6r 752.7r l,063.9r l,062.0r 1,001.7' l,110.7r l,351.8r 983.7r 1,251.3 1,124.3 By instrument 6 Commercial paper 21.4 18.1 -.9 13.7 24.4 3.8 85.6 -43.0 58.3r -2.6r 49.8 44.0 7 Municipal securities and loans -35.9 -48.2 2.6 71.4 96.8 101.3 82.9 89.6 100.7 48.0 77.0 47.0 8 Corporate bonds 23.3 91.1 116.3 150.5 218.7 294.8 108.0 193.2 274.0 287.6 202.8 155.2 9 Bank loans n.e.c 75.2 103.7 70.5 106.5 108.2 169.2 107.8 120.9 70.0 22.2 112.8 123.7 10 Other loans and advances 34.0 67.2 33.5 69.1 74.3 40.8 77.7 102.5 154,lr — 14.3r 78.9 66.6 11 Mortgages 169.3r 196.7r 280.0r 289.0r 473.9s 390. r 460.2r 577.5' 563. r 580.4r 652.8 571.9 17 Home 183.4 180.4 245.3 237.6 367.9 289.1 375.2 429.1 414.9r 422.9 492.8 396.4 13 Multifamily residential -3.5r 5.5r 9.3r 7.7' 19.2' 19.8r 13.2r 25.9r 32,4r 32.(f 43.7 45.7 14 Commercial — 12.9r 9.3r 22.9r 40.6r 80.5r 74.5r 66.3r 113.9r 112,lr 116.6r 109.1 124.9 15 Farm 2.2 1.6 2.6 3.2 6.2 6.7 5.5 8.6 3.6 9.0 7.2 4.9 16 Consumer credit 124.9 138.9 88.8 52.5 67.6 62.1 79.6 69.9 131.5r 62.4r 77.3 115.9 By borrowing sector 17 Household 316.3 350.9 354.0 327.3 471.9 420.3 473.4 528.6 558.6r 519.4r 614.6 533.8 18 Nonfinancial business 142.2r 268.2r 243.4r 369.4r 511.7r 559.8r 458.3' 507.0r 705.8r 428.6r 579.7 559.8 19 Corporate 134.5r 234.7r 154.91 285.7r 405.7r 456.9' 353.4r 396. lr 597.5r 315.3r 449.9 413.4 20 Nonfarm noncorporate 3.3 30.6 83.8 77.4 98.4 95.4 97.6 103.3 101.6 114.2 120.2 140.8 21 Farm 4.4 2.9 4.8 6.2 7.7 7.5 7.3 7.5 6.6 — 1.0r 9.7 5.6 22 State and local government -46.2 -51.5 -6.8 56.1 80.3 82.0 70.0 75.1 87.4 35.7 57.0 30.7 23 Foreign net borrowing in United States -13.9 71.1 77.2 57.6 33.6 97.9 -19.6 -38.9 17.0r -36.8r 62.2 30.8 24 Commercial paper -26.1 13.5 11.3 3.7 7.8 -25.5 6.2 -4.7 IS.O1 -27.5' 41.1 33.6 75 Bonds 12.2 49.7 55.8 47.2 25.1 119.2 -27.2 -34.2 .9 -12.6 29.4 -8.2 26 Bank loans n.e.c 1.4 8.5 9.1 8.5 6.7 8.4 3.6 9.8 .9 5.6 -6.6 2.4 27 Other loans and advances -1.4 -.5 1.0 -1.8 -6.0 -4.2 -2.2 -9.7 -2.8 -2.3 -1.6 3.0 28 Total domestic plus foreign 554.1r 783.1r 812.9r 833.4r l,044.9r l,131.6r 868.6r l,017.7r l,293.5r 834.8r 1,230.4 1,138.2 Financial sectors 29 Total net borrowing by financial sectors 468.4 453.9 548.9 652.2 1,068.8 988.9 1,056.3 1,298.7 l,213.1r l,016.1r 1,078.0 1,056.5 By instrument 30 Federal government-related 287.5 204.1 231.5 212.8 470.9 405.4 555.8 673.3 592.2 578.9' 653.0 543.9 31 Government-sponsored enterprise securities 176.9 105.9 90.4 98.4 278.3 166.4 294.0 510.5 193.0 304.7 407.1 367.9 32 Mortgage pool securities 115.4 98.2 141.1 114.5 192.6 239.0 261.7 162.8 399.2 274.3 245.9 176.0 33 Loans from U.S. government -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 180.9 249.8 317.5 439.4 597.9 583.5 500.5 625.4 620.9' 437.2' 425.1 512.6 35 Open market paper 40.5 42.7 92.2 166.7 161.0 135.6 141.0 130.7 78.3 57.8 89.8 478.9 36 Corporate bonds 121.8 195.9 176.9 209.0 291.8 361.8 177.4 281.9 489.7r 263.2' 184.9 -56.8 37 Bank loans n.e.c -13.7 2.5 12.6 13.2 30.1 -9.7 60.2 12.4 -8.8 10.5 -6.2 -50.1 38 Other loans and advances 22.6 3.4 27.9 35.6 90.2 76.0 82.3 169.9 41.6 117.9 147.2 121.8 39 Mortgages 9.8 5.3 7.9 14.9 24.8 19.9 39.6 30.6 20.1 -12.3 9.4 18.8 By borrowing sector 40 Commercial banking 20.1 22.5 13.0 46.1 72.9 80.8 61.7 66.3 31.1 72.7 111.3 62.7 41 Savings institutions 12.8 2.6 25.5 19.7 52.2 31.2 63.7 103.2 58.0 58.6 55.2 11.5 42 Credit unions .2 -.1 .1 .1 .6 .2 1.0 .4 1.5 1.4 2.8 3.3 43 Life insurance companies .3 -.1 1.1 .2 .7 -.6 1.6 1.8 3.3 3.0 1.1 -4.4 44 Government-sponsored enterprises 172.1 105.9 90.4 98.4 278.3 166.4 294.0 510.5 193.0 304.7 407.1 367.9 45 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 239.0 261.7 162.8 399.2 274.3' 245.9 176.0 46 Issuers of asset-backed securities (ABSs) 76.5 142.4 153.9 200.7 316.3 352.4 294.2 335.7 299.4r 309.2' 227.4 114.3 47 Finance companies 48.7 50.2 45.9 48.7 43.0 91.9 -12.0 17.8 71.2 88.4 -22.6 88.2 48 Mortgage companies -11.5 -2.2 4.1 -4.6 1.6 -28.2 2.3 3.0 -4.6 5.1 -6.1 6.2 49 Real estate investment trusts (REITs) 10.2 4.5 11.9 39.6 62.7 64.4 79.3 44.0 25.6 -19.7 7.9 17.7 50 Brokers and dealers .5 -5.0 -2.0 8.1 7.2 20.0 -2.6 12.4 -31.1 -17.4 16.9 -37.3 51 Funding corporations 23.1 34.9 64.1 80.7 40.7 -28.6 11.2 40.9 166.5 -63.8 31.2 250.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • May 2000 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Q2 Q3 Q4 Ql Q2 Q3' Q4 All sectors 52 Total net borrowing, all sectors l,022.5r 1,237.0r l,361.8r l,485.6r 2,113.7r 2,120.5r l,924.9r 2,316.4r 2,506.6r l,850.9r 2,308.5 2,194.7 2i.r 53 Open market paper 35.7 74.3 102.6 184.1 193.1 113.8 232.7 83.0 154.6' 180.6 556.5 54 U.S. government securities 448.1 348.5 376.5 235.9 418.3 377.1 442.3 619.1 517.0 466.8' 569.8 527.0 55 Municipal securities -35.9 -48.2 2.6 71.4 96.8 101.3 82.9 89.6 100.7 48.0 77.0 47.0 56 Corporate and foreign bonds 157.3 336.7 348.9 406.7 535.6 775.8 258.2 440.9 764.6' 538.2' 417.1 90.3 57 Bank loans n.e.c 62.9 114.7 92.1 128.2 145.0 167.9 171.6 143.0 62.1 38.3 100.0 75.9 58 Other loans and advances 50.4 70.1 62.5 102.8 158.5 112.5 157.8 262.7 192.9' 101.3' 224.5 191.4 59 Mortgages 179.0' 202.0' 287.9r 303.9' 498.6' 410.0' 499.8' 608.1' 583.2' 568.2' 662.1 590.7 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 62.1 79.6 69.9 131.5' 62.4' 77.3 115.9 Funds raised through mutual funds and corporate equities 61 Total net issues 113.4 131.5 209.1 165.6 76.5r 261.6r —166.6r —3.5r 135.4r 143.3r 47.7 167.7 62 Corporate equities 12.8 -16.0 -28.5 -99.6 -198.1' -116.2' -340.0' -228.3' -117.9' -64.91 -79.1 -9.2 63 Nonfinancial corporations -44.9 -58.3 -69.5 -114.4 -267.0 -129.1 -308.4 -491.3 -52.2' -338.2' -138.6 -41.6 6 6 4 5 F Fi o n r a e n ig c n ia l s h c a o r r e p s o p ra u t r i c o h n a s s ed by U.S. residents 48 9 . . 1 6 - 5 8 0 . . 1 4 -1 6 9 0 . . 0 0 -2 4 7 2 . . 1 0 - 7 8 7 . . 9 8 ' 12. . 3 6 ' -321.8.1 ' - 3 5 1 4 7 . . 5 4 ' - -3 3 2 3 . .4 3 ' 270 2 . . 9 4 ' -1 7 7 6 . . 2 7 -3 6 1 4 . . 6 0 66 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 377.8 173.4 224.8 253.3 208.2 126.8 176.9 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Q2 Q3 Q4 Q1 Q2 Q3' Q4 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets l,022.5r l,237.0r l,361.8r l,485.6r 2,113.7r 2,120.5r l,924.9r 2,316.4r 2,506.6r l,850.9r 2,308.5 2,194.7 7 Domestic nonfederal nonfinancial sectors 223.4R -98.4R I5.R —79.2R 35.lr 461.4R 27.9R -304.3R 398.8' 351.3' 147.9 55.0 3 Household 260.2R -3.0R 63.4R -76.5R —64.0R 335,OR - 106.6R —425.4R 347.4R 280.9' 147.9 -59.1 4 Nonfinancial corporate business 17.7 -8.8 - 10.2R -2.3 — .3R -47.9 8.9R 29.3R -I.r 17.3' 34.6 82.1 5 Nonfarm noncorporate business .6 4.7 -4.3 -.6 .0 .0 .0 .0 .4 -.2 -.6 .0 6 State and local governments -55.0 -91.4 -33.7 .1 99.5 174.3 125.7 91.7 52.2 53.3 -33.9 32.0 7 Federal government -27.4 -.2 -7.4 5.1 13.5 12.9 13.8 11.7 17.0' 6.9' 11.4 12.9 8 Rest of the world 132.3 273.9 414.4 310.7 249.3 321.8 60.8 390.7 253.3' 37.4' 371.3 237.3 9 Financial sectors 694.1 1,061.7 939.7 1,249.0 L,815.8R L,324.5R L,822.3R 2,218.3' 1,837.5' 1,455.2' 1,777.8 1,889.5 10 Monetary authority 31.5 12.7 12.3 38.3 21.1 11.5 41.6 3.5 71.8 62.4 34.1 -65.7 11 Commercial banking 163.4 265.9 187.5 324.3 305.2 132.7 250.1 531.5 68.9 135.4 435.5 592.8 1? U.S.-chartered banks 148.1 186.5 119.6 274.9 312.0 130.0 309.2 540.2 134.1 231.5 410.7 494.2 13 Foreign banking offices in United States 11.2 75.4 63.3 40.2 -11.9 15.2 -68.1 -12.1 -54.9 -105.7 30.6 49.5 14 Bank holding companies .9 -.3 3.9 5.4 -.9 -17.6 6.0 -7.4 -6.0 .4 -12.4 42.6 15 Banks in U.S.-affiliated areas 3.3 4.2 .7 3.7 6.0 5.1 2.9 10.7 -4.4 9.2 6.6 6.6 16 Savings institutions 6.7 -7.6 19.9 -4.7 36.3 2.1 17.9 113.3 102.7 88.8 60.9 22.0 17 Credit unions 28.1 16.2 25.5 16.8 19.0 22.7 21.0 16.0 34.7 32.1 36.6 21.2 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 -11.3 -16.0 -13.5 -7.6 -8.4 -8.6 -9.1 19 Life insurance companies 72.0 100.0 69.6 104.8 76.9 63.4 65.6 86.0 82.2 84.0 52.9 71.3 ?0 Other insurance companies 24.9 21.5 22.5 25.2 20.4 -1.5 -7.7 67.6 -19.7 26.7 -14.4 -12.6 71 Private pension funds 46.1 56.0 52.3 65.5 118.7 130.1 95.5r 174.5' 60.6' 150.0 45.4 104.9 ?.?. State and local government retirement funds 30.9 33.6 37.3 63.8 66.0r 78.4 68.7r 49.5' 76.5' 27.3' 38.4 49.1 ?3 Money market mutual funds 30.0 86.5 88.8 87.5 244.0 208.1 255.5 353.1 227.6 -92.6 232.1 360.8 74 Mutual funds -7.1 52.5 48.9 80.9 124.8 146.4 92.9 103.5 103.0 121.0 -20.2 1.1 ?5 Closed-end funds -3.7 10.5 4.7 -2.9 4.5 4.5 4.5 4.5 4.4 4.4 4.3 4.3 26 Government-sponsored enterprises 117.8 86.7 84.2 94.3 260.8 150.6 264.7 429.5 157.2 259.2 287.5 264.6 71 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 239.0 261.7 162.8 399.2 274.3' 245.9 176.0 78 Asset-backed securities issuers (ABSs) 69.4 120.6 123.6 162.3 276.7 321.4 248.7 312.7 281.8' 292.4' 218.9 84.5 79 Finance companies 48.3 49.9 18.4 21.9 51.9 24.0 79.5 75.3 92.2 79.6 94.7 116.9 30 Mortgage companies -24.0 -3.4 8.2 -9.1 3.2 -56.4 4.5 6.0 -9.1 10.2 -12.1 12.3 31 Real estate investment trusts (REITs) -.7 1.4 4.4 20.2 -5.1 6.1 -11.3 -40.8 1.7 -2.2 -2.7 -7.3 3? Brokers and dealers -44.2 90.1 -15.7 14.9 6.8r — 133.2r 146.0r -226.1' 88.0' -193.7' 16.3 -37.4 33 Funding corporations -17.8 -21.2 14.0 55.6 5.0r — 14.2r -61.4r 9.4' 21.5' 104.4' 32.4 140.0 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets l,022.5r l,237.0r l,361.8r l,485.6r 2,113.7r 2,120.5r 1,924.9r 2,316.4r 2,506.6r 1,850.9' 2,308.5 2,194.7 Other financial sources 35 Official foreign exchange -5.8 8.8 -6.3 .7 6.6 8.1 8.9 8.6 --1144..00 --55..44 --88..55 --55..55 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 .0 .0 .0 -4.0 .0 -4.0 -4.0 37 Treasury currency .7 .6 .1 .0 .0 .2 1.7 -2.3 .0 2.1 2.0 -4.1 38 Foreign deposits 52.9 35.3 85.9 106.8 -.2 92.9 84.9 -131.9 127.7 99.3 63.6 -55.9 39 Net interbank transactions 89.8 10.0 -51.6 -19.7 —32.3' 40.1 44.7r -118.9' 49.5' 90.6' -36.0 -55.4 40 Checkable deposits and currency -9.7 -12.7 15.8 41.5 47.6 90.1 -24.9 72.8 61.1 10.1 141.0 394.2 41 Small time and savings deposits -39.9 96.6 97.2 97.1 152.4 84.9 144.7 281.2 -68.0 100.0 144.7 4.3 4? Large time deposits 19.6 65.6 114.0 122.5 92.1 -5.6 81.8 104.4 -5.9 42.6 105.2 379.2 43 Money market fund shares 43.3 142.3 145.8 157.6 285.5 247.2 367.9 313.1 204.9 100.5 180.3 516.7 44 Security repurchase agreements 78.2 110.5 41.4 120.9 91.3r 50.7r 274.8r -181.8' 253.3' -27.9' 114.6 345.7 45 Corporate equities 12.8 -16.0 -28.5 -99.6 -198.1' — 116.2r —340.0r -228.3' -117.9' -64.9' -79.1 -9.2 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 377.8 173.4 224.8 253.3 208.2 126.8 176.9 47 Trade payables 120.0 128.9 114.8 125.9 27.9r -27.9 51.9' -56.9' 144.8' 237.1' 190.8 90.4 48 Security credit -.1 26.7 52.4 111.0 103.3r 131.3r 149.5r -25.7' -66.6' 139.9' 29.5 271.1 49 Life insurance reserves 35.5 45.8 44.5 59.3 53.3 53.3 51.7 59.0 40.8 59.6 41.5 63.2 50 Pension fund reserves 254.7 235.1 246.9 304.0 290.4r 272.8r 219.2' 314.8' 286.1' 324.4 305.0 373.5 51 Taxes payable 2.6 6.2 16.0 16.8 12.5r 1.9r 27.5 8.4' -8.0' 41.8' -1.8 14.0 5? Investment in bank personal trusts 17.8 4.0 -8.6 -56.3 -48.0 -46.5 -51.2 -48.8 -32.0 -25.9 -34.3 -32.3 53 Noncorporate proprietors' equity 62.7r 65.6r 5.1' 9.9r - 19.9r - 19.2r —64.0r 16.3' 10.1' 16.0' -47.4 -18.5 54 Miscellaneous 253.4' 453.6r 508.lr 527.5R 710.0r 434. lr 749.8R 577.8R 129.4' 1,223.6' 360.0 682.3 55 Total financial sources 2,ttl.6r 2,793.Sr 2,992.0r 3,376.2*" 3,962.6r 3,790.4r 3,943.2r 3,502.8r 3,751.3r 4,422.5r 3,902.2 5,321.4 Liabilities not identified as assets (-) 56 Treasury currency -.2 -.5 -.9 -.6 -.7 -.3 1.1 -3.4 -1.5 .6 .2 -6.3 57 Foreign deposits 43.0 25.1 59.6 106.8 -8.1 149.9 69.9 -156.5 62.7 83.5' 19.9 13.6 58 Net interbank liabilities -2.7 -3.1 -3.3 -19.9 3.4 8.9 22.3 -52.8 58.7 -1.7 -1.0 -53.1 59 Security repurchase agreements 67.7 20.2 4.5 62.3 54. lr -18.6r 153.8' -11.0' 209.4' 67.5' 43.0 -153.9 60 Taxes payable 16.6 21.1 22.8 26.8 17.7r 9.1 28.2 19.1r - 15.4r 4.8r 2.4 -10.1 61 Miscellaneous - 120.2r -179.5r -37.3r — 214.7r -58.3r — 323.0r —70.6r .7' -408.9' -568.0' -539.2 -112.4 Floats not included in assets ( —) 62 Federal government checkable deposits -4.8 -6.0 .5 -2.7 2.6 -44.4 32.4 14.0 -1.8 -41.4 23.0 -8.7 63 Other checkable deposits -2.8 -3.8 -4.0 -3.9 -3.1 -2.9 -3.6 -1.8 -1.9 -1.0 -.5 .1 64 Trade credit 27.4 15.6 -21.2 33.2 —30.9r -110.5 —65.0r -20.2' 45.8' -9.9' 71.7 39.7 65 Total identified to sectors as assets 2,087.5r 2,904.5r 2,971.4r 3,388.8r 3,986.1r 4,122.2r 3,774.7r 3,714.5r 3,804.3r 4,888. lr 4,282.6 5,612.6 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • May 2000 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1998 1999 11999977 11999988 Q2 Q3 Q4 Qi Q2 Q3' Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,723.8r 14,459.4r 15,233.8r 16,245.0r 15,710.4r 15,921.7r 16,245.0' 16,557.5' 16,730.6r 17,048.8 17,385.6 By sector and instrument 2 Federal government 3,636.7 3,781.8 3,804.9 3,752.2 3,749.0 3,720.2 3,752.2 3,759.7 3,651.7 3,632.7 3,680.4 3 Treasury securities 3,608.5 3,755.1 3,778.3 3,723.7 3,723.4 3,694.7 3,723.7 3,731.6 3,623.4 3,604.5 3,652.1 4 Budget agency securities and mortgages 28.2 26.6 26.5 28.5 25.6 25.5 28.5 28.1 28.3 28.3 28.3 5 Nonfederal 10,087. lr 10,677.7r ll,428.9r 12,492.8' 11,961.4' 12,201.5' 12,492.8' 12,797.8' 13,078.9' 13,416.1 13,705.2 By instrument 6 Commercial paper 157.4 156.4 168.6 193.0 202.5 216.9 193.0 223.9 232.4 239.3 230.3 7 Municipal securities and loans 1,293.5 1,296.0 1,367.5 1,464.3 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 8 Corporate bonds 1,344.1 1,460.4 1,610.9 1,829.6 1,754.3 1,781.3 1,829.6 1,898.1 1,970.0 2,020.7 2,059.5 y Bank loans n.e.c 863.6 934.1 1,040.5 1,148.8 1,097.6 1,120.6 1,148.8 1,165.2 1,178.5 1,202.9 1,231.0 10 Other loans and advances 736.9 770.4 839.5 913.8 873.1 886.8 913.8 957.5' 953.5' 967.1 985.4 ii Mortgages 4,568.8r 4,848.9r 5,137.8r 5,611.7' 5,347.9' 5,469.5' 5,611.7' 5,742.9' 5,894.2' 6,097.4 6,238.1 12 Home 3,510.4 3,721.9 3,959.5 4,327.5 4,122.0 4,222.4 4,327.5 4,420.2' 4,532.1 4,662.4 4,759.2 13 Multifamily residential 265.5r 278.4r 286. lr 305.3' 295.5' 298.8' 305.3' 313.6' 321.6' 332.6 344.0 14 Commercial 708.5r 761.4r 801.9r 882.4' 837.4' 853.9' 882.4' 911.7' 940.8' 1,001.0 1,032.2 13 Farm 84.6 87.1 90.3 96.5 93.0 94.4 96.5 97.4 99.6' 101.4 102.7 lb Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,256.8 1,286.6 1,331.7 1,319.3 1,340.4 1,370.1 1,428.5 By borrowing sector 17 Household 4,782.8 5,108.0 5,438.0 5,909.9 5,618.8 5,752.1 5,909.9 5,993.0 6,136.7 6,306.1 6,466.8 18 Nonfinancial business 4,234. lr 4,506.2r 4,871.4r 5,383.1' 5,171.8' 5,270.7' 5,383.1' 5,581.7' 5,704.0' 5,867.6 5,985.9 19 Corporate 2,936.6r 3,120.2r 3,401.7' 3,807.3' 3,649.0' 3,722.1' 3,807.3' 3,981.8' 4,071.9' 4,203.6 4,285.7 20 Nonfarm noncorporate 1,152.4 1,236.1 1,313.6 1,411.9 1,361.8 1,385.5 1,411.9 1,437.4 1,466.0 1,495.3 1,531.1 21 Farm 145.1 149.9 156.1 163.8 161.0 163.1 163.8 162.4 166.1 168.7 169.1 22 State and local government 1,070.2 1,063.4 1,119.5 1,199.8 1,170.8 1,178.8 1,199.8 1,223.2 1,238.2 1,242.4 1,252.5 23 Foreign credit market debt held in United States 441.4 518.7 570.1 603.7 617.1 612.8 603.7 607.8 598.2 614.7 622.0 24 Commercial paper 56.2 67.5 65.1 72.9 71.4 74.0 72.9 77.2 70.1 81.8 89.2 23 Bonds 291.9 347.7 394.9 420.0 435.4 428.6 420.0 420.2 417.1 424.4 422.4 26 Bank loans n.e.c 34.6 43.7 52.1 58.9 55.5 56.4 58.9 59.1 60.5 58.8 59.4 27 Other loans and advances 58.8 59.8 58.0 52.0 54.8 53.8 52.0 51.3 50.5 49.7 51.0 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,165.2r 14,978.1r 15,803.9r 16,848.7r 16,327.4' 16,534.4r 16,848.7r 17,165.3r 17,328.8r 17,663.6 18,007.6 Financial sectors 29 Total credit market debt owed by financial sectors 4,278.8 4,827.7 5,446.8 6,515.6 5,926.8 6,195.5 6,515.6 6,809.0r 7,073.3r 7,347.6 7,606.6 By instrument 30 Federal government-related 2,376.8 2,608.3 2,821.1 3,292.0 2,981.4 3,121.7 3,292.0 3,434.1 3,580.7' 3,745.9 3,884.0 31 Government-sponsored enterprise securities 806.5 896.9 995.3 1,273.6 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 32 Mortgage pool securities 1,570.3 1,711.4 1,825.8 2,018.4 1,908.9 1,975.7 2,018.4 2,112.3 2,182.7' 2,246.1 2,292.3 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 2,945.4 3,073.8 3,223.6 3,374.9' 3,492.6' 3,601.8 3,722.6 35 Open market paper 486.9 579.1 745.7 906.7 838.9 874.2 906.7 926.4 940.9 963.4 1,082.9 36 Corporate bonds 1,204.7 1,381.5 1,557.5 1,849.4 1,738.7 1,786.2 1,849.4 1,968.6' 2,042.8' 2,091.9 2,069.6 il Bank loans n.e.c 51.4 64.0 77.2 107.2 88.2 103.2 107.2 104.1 106.8 105.2 93.6 38 Other loans and advances 135.0 162.9 198.5 288.7 225.6 246.2 288.7 299.1 328.6 365.4 395.8 39 Mortgages 24.1 31.9 46.8 71.6 54.1 64.0 71.6 76.6 73.6 75.9 80.6 By borrowing sector 40 Commercial banks 102.6 113.6 140.6 188.6 159.6 169.6 188.6 187.5 202.7 224.2 232.2 41 Bank holding companies 148.0 150.0 168.6 193.5 190.5 196.1 193.5 202.6 205.5 211.9 219.4 42 Savings institutions 115.0 140.5 160.3 212.4 170.7 186.6 212.4 226.9 241.6 255.4 258.3 43 Credit unions .4 .4 .6 1.1 .8 1.0 1.1 1.5 1.8 2.5 3.4 44 Life insurance companies .5 1.6 1.8 2.5 1.6 2.0 2.5 3.3 4.0 4.3 3.2 43 Government-sponsored enterprises 806.5 896.9 995.3 1,273.6 1,072.5 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 46 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,908.9 1,975.7 2,018.4 2,112.3 2,182.7' 2,246.1 2,292.3 47 Issuers of asset-backed securities (ABSs) 712.5 866.4 1,078.2 1,394.6 1,230.4 1,307.0 1,394.6 1,463.1' 1,539.9' 1,599.8 1,632.1 48 Brokers and dealers 29.3 27.3 35.3 42.5 40.1 39.4 42.5 34.8 30.4 34.6 25.3 49 Finance companies 483.9 529.8 554.5 597.5 596.9 589.4 597.5 614.4 639.2 628.5 653.8 30 Mortgage companies 16.5 20.6 16.0 17.7 16.3 16.9 17.7 16.5 17.8 16.3 17.8 31 Real estate investment trusts (REITs) 44.6 56.5 96.1 158.8 128.0 147.8 158.8 165.2 160.3 162.2 166.7 32 Funding corporations 248.6 312.7 373.7 414.4 410.5 417.9 414.4 459.1 449.5 462.0 510.5 All sectors 53 Total credit market debt, domestic and foreign ... 18,444.0r 19,805.8r 21,250.7r 23,364.4r 22,254.2r 22,730.0' 23,364.4' 23,974.3r 24,402.2r 25,011.2 25,614.2 54 Open market paper 700.4 803.0 979.4 1,172.6 1,112.7 1,165.1 1,172.6 1,227.6 1,243.3 1,284.5 1,402.4 33 U.S. government securities 6,013.6 6,390.0 6,626.0 7,044.3 6,730.3 6,841.9 7,044.3 7,193.8 7,232.4' 7,378.6 7,564.4 36 Municipal securities 1,293.5 1,296.0 1,367.5 1,464.3 1,429.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 3/ Corporate and foreign bonds 2,840.7 3,189.6 3,563.3 4,098.9 3,928.3 3,996.0 4,098.9 4,286.9' 4,429.9' 4,536.9 4,551.5 58 Bank loans n.e.c 949.6 1,041.7 1,169.8 1,314.9 1,241.3 1,280.3 1,314.9 1.328.3 1,345.7 1,366.9 1,383.9 39 Other loans and advances 930.6 993.1 1,095.9 1,254.4 1,153.6 1,186.8 1,254.4 1,307.8' 1,332.6' 1,382.2 1,432.2 60 Mortgages 4,592.9r 4,880.8r 5,184.7' 5,683.3' 5,402.0' 5,533.5' 5,683.3' 5,819.6' 5,967.8' 6,173.3 6,318.7 61 Coasumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,256.8 1,286.6 1,331.7 1,319.3 1,340.4 1,370.1 1,428.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1998 1999 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Q2 Q3 Q4 Q1 Q2 Q3' Q4 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,444.0r 19,805.8r 21,250.7r 23,364.4r 22,254.2r 22,730.0r 23,364.4r 23,974.3' 24,402.2r 25,011.2 25,614.2 7 Domestic nonfederal nonfinancial sectors 2,846.3' 2,906.7' 2,783.8' 2,790.6' 2,837.8' 2,850.6' 2,790.6' 2,877.6' 2,918.4' 2,964.9 3,021.4 3 Household 1,885.0' 1,993.7' l,873.5r 1,781. LR 1,910.3' 1,889.0' 1,781.1' 1,878.2' 1,898.9' 1,944.2 1,960.4 4 Nonfinancial corporate business 280.4 270.2 268.0 267.6' 238.5 243.2' 267.6' 244.9' 249.6' 261.4 300.9 5 Nonfarm noncorporate business 42.3 38.0 37.4 37.4 37.4 37.4 37.4 37.5 37.5' 37.3 37.3 6 State and local governments 638.6 604.8 605.0 704.4 651.6 681.1 704.4 717.1 732.3 721.9 722.8 7 Federal government 202.7 195.3 200.4 213.9 207.5 210.9 213.9 218.1' 219.8 255.6 258.8 8 Rest of the world 1,531.1 1,926.6 2,256.8 2,534.3 2,396.0 2,412.2 2,534.3 2,601.8' 2,609.8' 2,703.5 2,736.7 9 Financial sectors 13,863.9 14,777.2 16,009.8 17,825.6' 16,812.9' 17,256.3' 17,825.6' 18,276.7' 18,654.2' 19,087.3 19,597.3 10 Monetary authority 380.8 393.1 431.4 452.5 440.3 446.5 452.5 466.0 485.1 489.3 478.1 11 Commercial banking 3,520.1 3,707.7 4,031.9 4,335.7 4,136.4 4,195.7 4,335.7 4,338.4 4,383.4 4,488.3 4,643.9 12 U.S.-chartered banks 3,056.1 3,175.8 3,450.7 3,761.2 3,543.6 3,616.2 3,761.2 3,782.9 3,847.6 3,944.3 4,078.9 N Foreign banking offices in United States 412.6 475.8 516.1 504.2 525.6 510.1 504.2 487.8 465.7 475.3 484.0 14 Bank holding companies 18.0 22.0 27.4 26.5 26.8 28.3 26.5 25.0 25.1 22.0 32.6 15 Banks in U.S.-affiliated areas 33.4 34.1 37.8 43.8 40.4 41.1 43.8 42.7 45.0 46.7 48.3 16 Savings institutions 913.3 933.2 928.5 964.8 930.8 939.3 964.8 990.8 1,011.4 1,030.8 1,033.4 17 Credit unions 263.0 288.5 305.3 324.2 315.1 320.5 324.2 330.2 341.0 350.2 355.3 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 201.5 197.5 194.1 192.2 190.1 188.0 185.7 19 Life insurance companies 1,587.5 1,657.0 1,751.1 1,828.0 1,793.2 1,810.6 1,828.0 1,853.7 1,874.7 1,889.2 1,902.7 20 Other insurance companies 468.7 491.2 515.3 535.7 520.8 518.8 535.7 530.8 537.5 533.9 530.7 21 Private pension funds 716.9 769.2 834.7 953.4 885.9 909.8 953.4 968.5 1,006.0 1,017.4 1,043.6 22 State and local government retirement funds 531.0 568.2 632.0 698.01 668.5 685.7' 698.0' 717.2' 724.0' 733.6 745.8 7.3 Money market mutual funds 545.5 634.3 721.9 965.9 815.9 869.9 965.9 1,036.2 1,001.8 1,049.7 1,147.8 24 Mutual funds 771.3 820.2 901.1 1,025.9 979.1 1,005.9 1,025.9 1,050.8 1,084.0 1,083.0 1,077.1 25 Closed-end funds 96.4 101.1 98.3 102.8 100.5 101.7 102.8 103.9 105.0 106.1 107.1 26 Government-sponsored enterprises 750.0 807.9 902.2 1,163.0 989.4 1,055.4 1,163.0 1,201.9 1,267.0 1,338.6 1,405.1 27 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,908.9 1,975.7 2,018.4 2,112.3 2,182.7' 2,246.1 2,292.3 28 Asset-backed securities issuers (ABSs) 653.4 777.0 939.3 1,216.0 1,068.9 1,134.2 1,216.0 1,280.1' 1,352.7' 1,410.5 1,435.4 79 Finance companies 526.2 544.5 566.4 618.4 579.0 592.7 618.4 639.9 660.9 678.2 714.2 30 Mortgage companies 33.0 41.2 32.1 35.3 32.7 33.8 35.3 33.0 35.6 32.5 35.6 31 Real estate investment trusts (REITs) 26.0 30.4 50.6 45.5 58.5 55.7 45.5 45.9 45.3 44.7 42.8 3? Brokers and dealers 183.4 167.7 182.6 189.4' 209.4' 245.9' 189.4' 211.4 162.9' 167.0 157.7 33 Funding corporations 87.4 101.4 152.3 158.7' 178.3 161.3' 158.7' 173.5' 202.9' 210.3 263.0 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,444.0r 19,805.8r 21,250.7r 23,364.4r 22,254.2r 22,730.0r 23,364.4r 23,974.3r 24,402.2r 25,011.2 25,614.2 Other liabilities 35 Official foreign exchange 63.7 53.7 48.9 60.1 50.1 54.5 60.1 53.6 50.9 52.1 50.1 36 Special drawing rights certificates 10.2 9.7 9.2 9.2 9.2 9.2 9.2 8.2 8.2 7.2 6.2 37 Treasury currency 18.2 18.3 18.3 18.3 18.4 18.8 18.3 18.3 18.8 19.3 18.3 38 Foreign deposits 418.8 516.1 618.8 639.9 630.4 651.7 639.9 671.8 696.6 712.5 698.5 39 Net interbank liabilities 290.7 240.8 219.4 188.9' 189.2 198.9' 188.9' 181.8' 203.2' 195.8 199.1 40 Checkable deposits and currency 1,229.3 1,245.1 1,286.6 1,334.2 1,320.7 1,282.3 1,334.2 1,311.4 1,354.1 1,354.9 1,485.8 41 Small time and savings deposits 2,279.7 2,377.0 2,474.1 2,626.5 2,531.0 2,553.8 2,626.5 2,637.6 2,644.6 2,666.6 2,671.8 42 Large time deposits 476.9 590.9 713.4 805.5 754.0 776.5 805.5 804.3 809.0 837.5 935.8 43 Money market fund shares 745.3 891.1 1,048.7 1,334.2 1,153.7 1,249.7 1,334.2 1,416.0 1,398.1 1,449.6 1,584.8 44 Security repurchase agreements 660.0 701.5 822.4 913.7' 892.1' 960.5' 913.7' 980.3 970.8' 999.3 1,085.2 45 Mutual fund shares 1,852.8 2,342.4 2,989.4 3,610.5 3,438.4 3,137.3 3,610.5 3,758.4 4,049.4 3,933.6 4,515.3 46 Security credit 305.7 358.1 469.1 572.3' 539.6' 573.6' 572.3' 552.7 589.3' 593.2 665.8 47 Life insurance reserves 566.2 610.6 665.0 718.3 690.6 703.5 718.3 730.9 745.8 756.2 772.0 48 Pension fund reserves 5,767.8 6,642.5 7,894.4 9,079.2' 8,730.8 8,116.5' 9,079.2' 9,267.0' 9,729.0' 9,487.5 10,360.4 49 Trade payables 1,698.0 1,812.8 1,938.6 1,966.5' 1,933.9 1,953.0' 1,966.5' 1,970.0' 2,028.8' 2,082.0 2,132.3 50 Taxes payable 107.6 123.6 140.4 152.8' 144.6 155.0 152.8' 159.6' 162.1' 165.5 164.4 51 Investment in bank personal trusts 803.0 871.7 942.5 1,001.0 999.8 908.6 1,001.0 1,012.5 1,059.8 998.3 1,116.6 52 Miscellaneous 5,645.8' 6,119.6' 6,698.5' 7,147.3' 6,860.2' 7,041.3' 7,147.3' 7,162.6' 7,311.5' 7,255.7 7,542.8 53 Total liabilities 41,383.6 45,331.1 50,248.3 55,542.8r 53,140.9r 53,074.8r 55,542.8r 56,671.4r 58,232.1r 58,577.8 61,619.3 Financial assets not included in liabilities ( +) 54 Gold and special drawing rights 22.1 21.4 21.1 21.6 21.0 21.2 21.6 20.7 20.8 21.3 21.4 55 Corporate equities 8,495.7 10,255.8 13,181.4 15,413.4 14,987.0 13,121.2 15,413.4 15,893.6 17,018.0 16,008.3 18,876.7 56 Household equity in noncorporate business 3,640.4 3,833.2' 4,171.8 4,395.3 4,284.7 4,331.3 4,395.3 4,404.7' 4,488.7' 4,543.3 4,630.3 Liabilities not identified as assets (—) 57 Treasury currency -5.8 -6.7 -7.3 -8.0 -7.4 -7.2 -8.0 -8.4 -8.2 -8.2 -9.7 58 Foreign deposits 360.2 431.4 534.0 547.2 547.6 565.1 547.2 562.8 583.7' 588.7 592.1 59 Net interbank transactions -9.0 -10.6 -32.2 -27.0 -17.1 -15.4 -27.0 -11.3 -10.6 -13.0 -28.2 60 Security repurchase agreements 86.4 90.9 153.1 207.2' 171.6' 216.8' 207.2' 263.6' 276.8' 294.0 248.7 61 Taxes payable 62.4 76.7 93.5 103.4' 95.8 102.2 103.4' 90.6' 111.8' 94.4 92.4 62 Miscellaneous -1,000.3' -1,318.8' -1,636.8' -2,213.3' -1,907.9' -1,959.4' -2,213.3' -2,382.4' -2,510.0' -2,974.4 -2,953.8 Floats not included in assets (—) 63 Federal government checkable deposits 3.1 -1.6 -8.1 -3.9 -16.1 -12.0 -3.9 -7.2 -12.4 -10.2 -9.8 64 Other checkable deposits 34.2 30.1 26.2 23.1 24.2 15.7 23.1 18.9 22.1 14.5 22.3 65 Trade credit 198.2 176.7 199.5 168.0 119.4 98.9r 168.0 123.4' 105.0' 119.8 204.8 66 Total identified to sectors as assets 53,812.5r 59,973.5r 68,300.6r 76,576.3r 73,423.6r 71,543.7r 76,576.3r 78,340.3r 81,201.2r 81,045.3 86,988.9 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 • May 2000 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 1999 2000 MMeeaassuurree 11999977 11999988 11999999 June July Aug. Sept. Oct. Nov/ Dec.r Jan.r Feb/ 1 Industrial production1 127.1 132.4 137.1 136.6 137.4 137.7 138.1 139.1 139.4 140.2 141.7 142.1 Market groupings 2 Products, total 119.6 123.7 126.5 126.8 126.9 127.6 127.6 128.5 128.0 128.5 130.1 130.2 3 Final, total 121.1 125.4 128.0 128.3 128.6 129.5 129.1 130.2 129.8 130.1 132.1 132.1 4 Consumer goods 115.1 116.2 116.9 117.0 116.8 117.6 117.1 118.2 117.6 118.2 119.6 119.5 5 Equipment 132.1 142.7 148.9 148.3 149.3 150.5 150.2 151.2 151.4 151.3 154.2 154.4 6 Intermediate 115.3 118.8 122.1 121.7 121.5 121.7 122.6 123.2 122.4 123.2 123.9 124.2 7 Materials 139.0 146.5 154.8 153.1 155.0 154.6 155.7 156.8 158.8 160.1 161.3 162.3 Industry groupings 8 Manufacturing 130.1 136.4 142.3 141.4 142.0 142.5 142.9 144.2 145.0 145.6 147.0 147.5 9 Capacity utilization, manufacturing (percent)2. . 82.4 80.9 79.8 79.6 79.7 79.7 79.7 80.2 80.3 80.4 80.9 80.9 10 Construction contracts3 144.1 161.1 176.0 186.0 181.0 166.0 172.0 172.0 172.0 171.0 174.0 175.0 11 Nonagricultural employment, total4 120.3 123.4 126.2 126.0 126.3 126.5 126.6 126.9 127.1 127.4 127.8 127.8 12 Goods-producing, total 101.2 102.7 102.3 102.1 102.3 101.9 102.1 102.1 102.4 102.5 103.0 102.9 13 Manufacturing, total 98.3 98.8 97.0 96.8 97.1 96.7 96.7 96.6 96.6 96.6 96.8 96.8 14 Manufacturing, production workers 99.6 99.8 97.8 97.5 98.0 97.4 97.4 97.3 97.4 97.4 97.5 97.6 15 Service-producing 126.5 130.0 133.8 133.6 134.0 134.3 134.4 134.7 135.0 135.4 135.7 135.8 16 Personal income, total 175.4 185.7 196.6 196.4 197.0 197.9 198.1 200.5r 201.3r 201.9r 203.3 204.2 17 Wages and salary disbursements 171.3 184.4 197.0 196.3 197.8 198.6 199.5 200.7 201.3 202.6r 204.4 205.0 18 Manufacturing 144.6 152.4 156.9 156.8 158.2 158.0 158.6 159.7 158.8 158.8r 160.3 161.0 19 Disposable personal income5 172.9 181.7 191.9 191.8 192.1 193.4 193.0 195.6 196.4r 196.7r 198.5 199.1 20 Retail sales5 170.1 178.5 194.4 192.6 194.5 197.1 197.1 197.7 200.3 204.2 205.0 207.2 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 166.2 166.7 167.1 167.9 168.2 168.3 168.3 168.7 169.7 22 Producer finished goods (1982=100) 131.8 130.7 133.1 132.7 132.9 133.7 134.7 135.1 135.0 135.0 134.7 136.0 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data 3. Index of dollar value of total construction contracts, including residential, nonresidenare also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge latest historical revision of the industrial production index and the capacity utilization rates Division. was released in November 1999. The recent annual revision is described in an article in the 4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series March 2000 issue of the Bulletin. For a description of the methods of estimating industrial covers employees only, excluding personnel in the armed forces. production and capacity utilization, see "Industrial Production and Capacity Utilization: 5. Based on data from U.S. Department of Commerce, Survey of Current Business. Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price 1997), pp. 67-92, and the references cited therein. For details about the construction of indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, individual industrial production series, see "Industrial Production: 1989 Developments and Monthly Labor Review. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series 2. Ratio of index of production to index of capacity. Based on data from the Federal mentioned in notes 3 and 6, can also be found in the Survey of Current Business. Reserve, 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 11999999 July Aug. Sept. Oct. Nov. Dec/ Jan/ Feb. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 139,336 139,372 139,475 139,697 139,834 140,108 140,910 141,165 Employment 2 Nonagricultural industries3 126,159 128,085 130,207 130,121 130,296 130,471 130,702 130,788 131,141 131,850 131,954 3 Agriculture 3,399 3,378 3,281 3,278 3,234 3,179 3,238 3,310 3,279 3,371 3,408 Unemployment 4 Number 6,739 6,210 5,880 5,937 5,842 5,825 5,757 5,736 5,688 5,689 5,804 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.3 4.2 4.2 4.1 4.1 4.1 4.0 4.1 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 128,816 128,945 129,048 129,332 129,589 129,898 130,282 130,325 7 Manufacturing 18,675 18,772 18,431 18,449 18,378 18,366 18,356 18,361 18,361 18,382 18,387 8 Mining 596 590 535 528 524 527 528 527 529 528 530 9 Contract construction 5,691 5,985 6,273 6,270 6,246 6,293 6,314 6,369 6,393 6,509 6,483 10 Transportation and public utilities 6,408 6,600 6,792 6,799 6,813 6,831 6,841 6,862 6,897 6,902 6,894 11 Trade 28,614 29,127 29,792 29,915 29,919 29,903 29,955 29,972 30,061 30,115 30,156 12 Finance 7,109 7,407 7,632 7,647 7.650 7,653 7,668 7,675 7,685 7,679 7,689 13 Service 36,040 37,526 39,000 39,055 39,205 39,257 39,433 39,554 39,657 39,799 39,805 14 Government 19,557 19,819 20,161 20,153 20,210 20,218 20,237 20,269 20,315 20,368 20,381 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 139.2 140.9 142.5 145.0 174.8 176.9 178.7 180.6 79.6 79.6 79.7 80.3 3 Primary processing3 122.2 122.5 123.4 125.4 147.4 148.2 149.0 149.8 82.9 82.7 82.8 83.7 4 Advanced processing4 148.1 150.5 152.5 155.2 188.6 191.4 193.7 196.1 78.5 78.6 78.7 79.2 Durable goods 167.1 170.8 174.4 177.4 210.3 214.2 217.6 221.0 79.5 79.8 80.2 80.3 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 81.3 7 Primary metals 122.3 125.1 128.7 130.9 147.6 148.5 149.3 150.1 82.9 84.2 86.2 87.2 8 Iron and steel 116.9 121.4 126.6 129.1 148.5 150.0 151.3 152.5 78.7 80.9 83.7 84.6 9 Nonferrous 129.1 129.6 131.2 133.1 146.5 146.8 147.0 147.2 88.1 88.3 89.3 90.4 10 Industrial machinery and equipment 221.3 227.9 232.3 240.0 265.7 275.5 285.3 295.8 83.3 82.7 81.4 81.1 11 Electrical machinery 349.4 374.6 400.9 420.5 461.8 482.0 498.5 514.6 75.7 77.7 80.4 81.7 12 Motor vehicles and parts 147.5 150.6 153.3 154.7 184.8 184.8 184.9 185.0 79.8 81.5 82.9 83.6 13 Aerospace and miscellaneous transportation equipment 98.9 95.9 93.8 89.6 126.8 126.6 126.2 125.8 78.0 75.7 7744..33 7711..22 14 Nondurable goods 111.8 111.6 111.5 113.4 139.1 139.5 139.9 140.3 80.4 80.0 79.7 80.8 I5! Textile mill products 109.6 111.1 111.6 111.6 131.4 131.5 131.6 131.8 83.4 84.5 84.8 84.7 16 Paper and products 115.8 115.1 116.0 117.9 133.8 134.5 135.3 136.1 86.6 85.6 85.7 86.6 17 Chemicals and products 115.9 116.3 117.0 121.7 150.0 150.4 150.7 151.0 77.3 77.3 77.6 80.6 18 Plastics materials 122.9 123.5 124.2 130.2 135.9 137.2 138.4 139.6 90.4 90.0 89.7 93.3 19 Petroleum products 116.3 114.1 114.6 114.1 121.8 122.2 122.7 123.1 95.6 93.3 93.4 92.7 70 Mining 97.6 97.1 98.2 99.6 120.4 120.3 120.2 120.2 81.1 80.7 81.7 82.9 71 Utilities 114.6 116.6 118.4 113.5 126.9 127.3 127.8 128.2 90.3 91.6 92.7 88.5 22 Electric 116.6 118.9 120.8 116.5 124.7 125.2 125.6 126.1 93.5 95.0 96.2 92.4 1973 1975 Previous cycle5 Latest cycle6 1999 1999 2000 High Low High Low High Low Feb. Sept. Oct. Nov.r Dec.r Jan.r Feb.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.4 80.6 81.0 80.9 81.1 81.7 81.7 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.7 79.7 80.2 80.3 80.4 80.9 80.9 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 82.8 82.8 83.4 83.8 83.8 84.0 84.2 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 78.7 78.7 79.1 79.2 79.2 79.9 79.7 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 79.3 80.0 80.3 80.3 80.3 81.1 81.0 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 84.2 81.0 81.4 80.7 81.6 82.3 81.8 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 81.4 85.8 86.1 87.4 88.2 88.1 88.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 77.1 83.0 82.1 85.7 86.2 85.7 86.3 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 86.7 89.3 91.1 89.4 90.7 91.2 90.9 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 83.4 81.6 81.6 81.1 80.7 81.8 81.3 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 75.2 79.8 81.1 81.3 82.8 84.9 85.0 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 80.0 84.1 84.2 84.2 82.5 84.6 83.9 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 78.3 73.1 71.9 71.2 70.5 70.2 6699..66 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.7 79.9 80.6 81.0 81.0 81.1 81.3 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 84.1 84.1 85.5 84.5 84.0 85.6 84.9 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.7 86.4 86.9 86.7 86.3 86.3 86.9 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 77.7 77.8 79.4 81.3 81.0 80.7 81.4 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 92.0 90.5 94.0 95.4 90.3 91.5 94.8 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 96.0 93.3 93.2 91.7 93.3 92.6 93.4 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 80.9 81.8 82.6 83.0 83.1 83.7 83.3 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 88.7 92.0 89.9 86.5 89.1 91.3 91.9 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 92.1 95.2 92.8 91.8 92.6 94.2 94.5 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. individual industrial production series, see "Industrial Production: 1989 Developments and 6. Monthly highs, 1988-89; monthly lows, 1990-91. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • May 2000 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp pro- 1999 por- avg. tion Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov.r Dec.r Jan. Feb.p Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.1 139.4 140.2 141.7 142.1 2 Products 60.5 126.5 125.8 126.0 126.2 126.8 126.8 126.9 127.6 127.6 128.5 128.0 128.5 130.1 130.2 3 Final products 46.3 128.0 127.3 127.3 127.6 128.2 128.3 128.6 129.5 129.1 130.2 129.8 130.1 132.1 132.1 4 Consumer goods, total 29.1 116.9 117.2 116.7 116.5 116.8 117.0 116.8 117.6 117.1 118.2 117.6 118.2 119.6 119.5 5 Durable consumer goods 6.1 152.6 150.9 149.9 152.0 152.8 154.0 153.4 155.5 153.5 157.4 154.4 155.6 159.3 157.8 6 Automotive products 2.6 144.6 142.0 140.0 142.0 145.4 147.4 143.7 150.6 145.5 147.9 146.2 144.4 149.5 146.9 7 Autos and trucks 1.7 151.8 148.7 147.0 149.0 153.2 157.5 148.9 162.9 152.8 155.1 154.3 148.7 155.2 150.5 8 Autos, consumer .9 102.6 100.2 101.6 102.3 99.9 101.8 102.4 105.0 105.5 103.9 107.2 99.8 105.4 105.0 9 Trucks, consumer .7 202.4 198.5 194.1 197.3 207.4 214.2 197.2 221.6 201.9 207.8 203.6 199.0 206.6 198.0 10 Auto parts and allied goods .... .9 133.8 131.8 129.3 131.4 133.6 132.5 135.3 132.8 134.4 136.7 133.8 137.0 140.3 140.6 11 Other 3.5 158.6 158.0 157.8 160.0 158.3 158.8 161.1 158.7 159.7 165.0 160.7 164.8 167.1 166.6 12 Appliances, televisions, and air conditioners 1.0 324.5 320.0 317.6 325.8 311.1 319.0 329.9 319.0 326.3 363.1 348.4 359.4 364.5 361.8 13 Carpeting and furniture .8 121.7 122.8 119.6 120.2 121.0 121.0 124.1 122.1 124.1 124.8 117.4 122.1 126.5 125.1 14 Miscellaneous home goods 1.6 114.7 113.6 115.7 116.9 117.2 116.2 115.9 115.4 114.4 114.8 115.0 116.7 116.9 117.4 15 Nondurable consumer goods 23.0 108.7 109.3 108.9 108.3 108.4 108.4 108.3 108.9 108.7 109.3 109.1 109.5 110.5 110.7 16 Foods and tobacco 10.3 107.3 109.4 108.4 107.8 107.7 107.3 106.7 106.5 106.2 106.8 107.3 107.4 107.9 107.8 17 Clothing 2.4 90.6 92.0 91.3 91.8 90.2 90.2 89.2 90.1 89.9 89.4 90.6 89.6 91.0 90.4 18 Chemical products 4.5 121.7 122.8 121.6 118.7 120.5 120.2 119.4 122.7 120.9 123.1 126.0 126.4 126.7 127.4 19 Paper products 2.9 102.3 100.4 98.8 99.9 100.3 101.5 102.0 103.2 104.7 106.3 105.1 103.1 104.3 104.5 20 Energy 2.9 114.1 109.9 115.4 115.1 114.7 115.3 118.6 116.6 117.6 114.5 106.7 112.4 115.6 117.1 21 Fuels .8 111.3 113.4 110.7 111.5 110.9 109.9 111.1 110.0 112.0 112.4 110.1 111.7 110.9 114.6 22 Residential utilities 2.1 115.1 108.2 117.2 116.4 116.1 117.4 121.7 119.3 119.7 114.9 104.3 112.1 117.2 117.7 23 Equipment 17.2 148.9 144.9 145.9 147.0 148.4 148.3 149.3 150.5 150.2 151.2 151.4 151.3 154.2 154.4 24 Business equipment 13.2 171.6 166.3 167.5 169.4 171.2 171.2 172.6 173.9 173.7 174.8 175.0 174.9 179.4 179.6 25 Information processing and related 5.4 248.6 224.5 229.2 236.9 244.3 248.2 253.8 259.9 261.3 265.6 266.7 270.1 278.8 282.3 26 Computer and office equipment 1.1 840.1 703.1 736.1 773.0 805.8 830.2 851.9 892.8 926.9 950.5 970.0 985.6 1,016.1 1,041.5 27 Industrial 4.0 135.3 135.8 135.2 136.0 135.3 133.7 135.4 133.6 133.9 134.9 134.6 134.9 138.5 138.2 28 Transit 2.5 126.7 131.2 129.5 129.4 128.9 128.2 127.5 128.1 124.0 122.3 121.2 116.6 119.3 116.6 29 Autos and trucks 1.2 131.4 128.9 129.0 130.7 131.2 132.2 131.2 135.3 132.0 133.4 134.2 127.8 135.7 133.1 30 Other 1.3 131.3 139.9 143.0 135.7 134.0 130.2 123.8 123.2 126.4 125.1 127.5 126.8 125.6 125.1 31 Defense and space equipment 3.3 74.4 75.4 75.6 75.1 75.2 74.6 74.5 74.7 73.6 73.7 73.0 72.4 70.6 70.2 32 Oil and gas well drilling .6 106.8 97.4 100.8 97.2 99.8 100.1 102.0 107.1 111.3 115.7 121.3 124.3 125.5 127.7 33 Manufactured homes .2 155.2 169.2 168.8 164.7 161.3 158.9 151.5 151.3 144.4 142.6 139.3 138.3 138.5 134.3 34 Intermediate products, total 14.2 122.1 121.3 121.6 121.7 122.3 121.7 121.5 121.7 122.6 123.2 122.4 123.2 123.9 124.2 35 Construction supplies 5.3 133.4 132.5 131.7 131.3 132.9 132.6 133.2 132.9 134.1 135.4 134.3 135.0 136.6 137.4 36 Business supplies 8.9 115.4 114.7 115.6 116.1 116.1 115.3 114.6 115.1 115.8 115.9 115.2 116.2 116.4 116.4 37 Materials 39.5 154.8 148.7 150.3 150.8 151.7 153.1 155.0 154.6 155.7 156.8 158.8 160.1 161.3 162.3 38 Durable goods materials 20.8 198.9 189.2 191.9 193.1 194.3 197.2 200.3 199.9 202.3 203.4 206.7 209.6 212.0 213.7 39 Durable consumer parts 4.0 150.7 148.4 149.9 147.7 148.4 150.5 153.9 147.2 156.0 153.7 154.8 154.8 155.4 157.0 40 Equipment parts 7.6 360.9 324.4 331.5 340.5 345.0 355.2 364.6 369.0 371.4 377.5 386.8 398.8 406.8 414.0 41 Other 9.2 131.4 129.8 130.9 130.4 130.4 130.6 131.1 131.6 131.2 131.7 133.4 134.1 134.9 134.8 42 Basic metal materials 3.1 121.8 116.8 119.8 120.1 119.9 122.6 122.8 123.3 122.1 123.5 125.6 126.4 126.2 126.1 43 Nondurable goods materials 8.9 114.5 112.4 112.7 112.8 113.8 114.2 114.5 114.4 114.7 117.4 119.1 118.3 117.3 118.7 44 Textile materials 1.1 101.0 100.2 101.2 101.8 101.8 101.2 101.2 101.1 100.3 102.3 103.3 100.9 99.3 99.6 45 Paper materials 1.8 117.0 115.6 116.3 116.5 115.3 117.7 116.3 116.3 118.6 118.5 119.3 118.5 117.7 118.8 46 Chemical materials 3.9 117.2 112.8 113.6 114.2 116.0 116.9 117.7 117.4 117.7 122.0 125.1 123.3 122.5 124.8 47 Other 2.1 113.5 114.4 113.3 111.9 114.2 112.0 113.0 113.2 112.5 114.9 114.9 116.9 115.7 116.2 48 Energy materials 9.7 101.7 101.7 102.4 102.2 102.2 101.6 102.9 102.3 101.8 101.5 101.6 101.9 103.0 102.3 49 Primary energy 6.3 99.2 99.1 99.1 97.3 98.3 98.9 100.2 100.3 99.6 98.8 100.1 99.8 100.5 99.0 50 Converted fuel materials 3.3 107.2 106.7 108.9 111.7 109.9 106.8 108.0 106.1 106.1 106.5 104.1 105.9 107.7 108.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.0 134.4 135.1 135.4 136.1 136.4 137.3 137.4 138.0 138.9 139.3 140.3 141.6 142.1 52 Total excluding motor vehicles and parts 95.1 136.4 133.9 134.6 134.9 135.6 135.9 136.7 137.1 137.2 138.3 138.7 139.6 141.0 141.5 53 Total excluding computer and office equipment 98.2 131.1 129.1 129.5 129.7 130.2 130.6 131.2 131.4 131.5 132.4 132.7 133.3 134.6 134.9 54 Consumer goods excluding autos and trucks . 27.4 115.1 115.5 115.1 114.8 114.8 114.8 115.0 115.2 115.2 116.3 115.6 116.5 117.7 117.9 55 Consumer goods excluding energy 26.2 117.3 118.0 116.9 116.7 117.0 117.2 116.6 117.7 117.1 118.7 118.8 118.8 120.0 119.8 56 Business equipment excluding autos and trucks 12.0 176.1 170.6 171.9 173.8 175.7 175.7 177.4 178.3 178.5 179.5 179.7 180.3 184.4 184.9 57 Business equipment excluding computer and office equipment 12.1 143.7 142.4 142.6 143.4 144.2 143.6 144.4 144.6 143.6 144.0 143.7 143.2 146.8 146.3 58 Materials excluding energy 29.8 171.9 163.6 165.5 166.3 167.4 169.5 171.6 171.3 173.0 174.7 177.4 179.0 180.2 181.8 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 - tion Mar. Apr. May June July Aug Sept. Oct. Nov.r Dec Feb.? Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.1 134.5 135.1 135.5 136.2 136.6 137.4 137.7 138.1 139.1 139.4 140.2 141.7 142.1 60 Manufacturing 85.4 142.3 139.3 139.7 140.2 141.0 141.4 142.0 142.5 142.9 144.2 145.0 145.6 147.0 147.5 61 Primary processing 26.5 123.3 122.1 122.4 122.2 122.5 122.7 123.3 123.4 123.6 124.8 125.6 125.8 126.3 126.7 62 Advanced processing 58.9 151.8 148.4 148.8 149.6 150.7 151.2 151.8 152.6 153.1 154.5 155.2 156.0 157.9 158.4 63 Durable goods 45.0 172.8 166.8 168.1 169.4 170.8 172.2 173.8 174.4 175.0 176.5 177.4 178.5 181.3 181.9 64 Lumber and products " ' 24 2.0 121.6 122.3 121.7 121.5 123.9 122.2 121.5 120.2 119.7 120.5 119.8 121.4 122.5 122.1 65 Furniture and fixtures 25 1.4 125.4 124.6 125.8 123.8 124.4 124.4 125.7 126.4 127.9 127.0 125.2 126.9 125.8 126.6 66 Stone, clay, and glass products 32 2.1 130.5 132.2 130.8 128.8 128.5 127.8 129.3 130.2 129.6 131.2 132.4 131.3 131.1 131.4 67 Primary metals 33 3.1 126.6 120.1 124.0 123.9 123.9 127.4 128.0 129.6 128.3 129.0 131.1 132.6 132.7 133.1 68 Iron and steel 331,2 1.7 123.2 114.6 118.1 119.4 120.1 124.5 126.2 127.6 125.9 124.9 130.7 131.8 131.3 132.4 69 Raw steel 331PT .1 113.3 106.8 108.3 109.3 111.4 110.7 111.1 115.9 112.4 121.8 124.0 124.2 123.1 124.6 70 Nonferrous 333-6,9 1.4 130.9 127.0 131.4 129.4 128.6 130.8 130.2 132.1 131.4 134.0 131.7 133.5 134.4 134.0 71 Fabricated metal products .. 34 5.0 128.7 128.4 128.5 128.0 127.2 128.3 128.6 128.5 128.4 128.8 129.7 128.8 130.4 130.6 72 Industrial machinery and equipment 35 8.0 230.1 221.7 224.6 227.0 228.4 228.2 230.0 231.4 235.5 238.3 239.7 241.8 247.8 249.2 73 Computer and office equipment 357 1.8 1,061.6 907.1 947.6 987.5 1,021.6 1,048.2 1,075.1 1,123.7 1,167.5 1,196.6 1,222.8 1,246.3 1,285.2 1,317.3 74 Electrical machinery 36 7.3 390.1 347.5 354.0 366.4 373.3 384.2 399.2 401.3 402.1 412.6 418.1 430.8 447.8 455.4 75 Transportation equipment. . . 37 9.5 122.4 123.2 122.6 122.1 122.8 123.5 122.9 122.9 123.1 122.3 121.8 119.8 121.5 120.6 76 Motor vehicles and parts . 371 4.9 151.0 147.8 148.1 148.4 150.6 152.9 152.2 152.2 155.6 155.7 155.8 152.7 156.9 155.8 77 Autos and light trucks . 371PT 2.6 137.8 135.0 134.0 135.7 138.3 142.0 135.8 146.8 139.4 140.7 141.0 135.0 141.2 137.6 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.8 99.3 97.9 96.5 96.0 95.2 94.7 94.7 92.2 90.6 89.5 88.6 88.0 87.2 79 Instruments 38 5.4 116.5 112.9 113.7 115.1 116.7 117.0 117.2 117.7 117.2 118.3 118.9 119.7 118.2 118.6 80 Miscellaneous 39 1.3 124.7 121.8 122.9 124.2 125.5 124.5 125.2 125.2 125.1 125.0 125.0 126.4 127.0 125.7 81 Nondurable goods 40.4 111.8 112.3 111.8 111.5 111.9 111.3 111.0 111.5 111.8 113.0 113.6 113.7 113.9 114.2 82 Foods 20 9.4 110.1 111.4 110.9 110.6 110.6 110.0 108.9 108.9 109.6 110.1 110.3 110.0 110.1 110.6 83 Tobacco products 21 1.6 94.3 99.2 95.4 94.1 95.4 94.5 96.0 94.8 90.9 91.9 93.1 94.7 96.7 94.6 84 Textile null products 22 1.8 110.9 110.5 110.1 111.4 110.9 110.8 112.3 111.7 110.8 112.7 111.4 110.8 113.0 112.0 85 Apparel products 23 2.2 90.7 92.2 91.8 92.4 91.2 90.7 89.8 89.2 89.0 89.1 89.1 89.2 89.7 89.8 86 Paper and products 26 3.6 116.2 115.9 115.9 115.0 114.6 115.7 115.0 115.8 117.2 118.0 118.1 117.7 117.8 118.8 87 Printing and publishing .... 27 6.7 104.4 104.3 103.7 104.2 104.1 103.5 102.8 103.6 104.6 106.0 105.7 105.6 105.5 105.3 88 Chemicals and products .... 28 9.9 117.4 116.6 116.8 115.6 117.0 116.3 115.8 117.7 117.4 119.8 122.7 122.4 122.1 123.3 89 Petroleum products 29 1.4 114.7 117.0 114.9 114.6 114.2 113.4 115.1 114.1 114.6 114.5 112.8 115.0 114.1 115.3 90 Rubber and plastic products . 30 3.5 137.7 135.6 135.8 136.2 137.4 136.4 138.0 137.6 139.3 138.9 139.3 141.4 142.6 141.8 91 Leather and products 31 .3 69.8 71.5 71.3 70.6 70.9 71.3 69.1 70.2 69.5 68.2 67.7 65.2 68.1 66.4 92 Mining 6.9 98.0 97.4 97.5 96.7 97.4 97.1 97.8 98.5 98.3 99.2 99.7 99.8 100.5 99.8 93 Metal 10 .5 97.2 101.3 98.5 100.5 100.2 98.9 96.2 93.0 91.4 94.2 94.5 95.8 95.8 93.5 94 Coal 12 1.0 108.1 108.9 103.9 107.3 106.1 107.0 110.0 110.7 109.4 108.8 110.0 109.5 106.3 101.9 95 Oil and gas extraction 13 4.8 92.5 90.7 92.1 90.8 91.8 91.4 92.3 93.2 93.0 94.0 94.5 95.0 96.6 95.8 96 Stone and earth minerals 14 .6 124.4 127.1 126.6 121.8 123.9 123.3 120.5 123.0 125.5 126.3 125.0 122.7 121.7 127.9 97 Utilities 7.7 115.7 112.6 116.8 116.3 116.1 117.4 119.8 117.8 117.7 115.2 110.9 114.3 117.3 118.1 98 Electric 491,493PT 6.2 118.2 114.9 119.1 118.6 118.4 119.6 122.6 120.0 119.8 116.9 115.8 116.9 119.1 119.6 99 Gas 492,493PT 1.6 105.4 102.5 106.4 105.7 105.8 107.5 107.4 108.2 108.5 107.9 88.2 102.6 109.9 111.6 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 138.9 139.3 139.8 140.5 140.8 141.4 142.0 142.3 143.6 144.5 145.3 114466..55 147.1 101 Manufacturing excluding computer and office equipment 83.6 135.3 133.0 133.1 133.4 134.1 134.3 134.8 135.1 135.3 136.5 137.1 137.6 138.8 139.1 102 Computers, communications equipment, and semiconductors 5.9 794.1 676.0 700.3 731.6 753.3 780.5 812.1 830.4 843.0 863.9 887.7 917.1 959.9 984.6 103 Manufacturing excluding computers and semiconductors 81.1 121.6 121.1 121.0 120.9 121.3 121.2 121.3 121.6 121.7 122.6 122.9 122.9 123.9 123.9 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.3 119.1 118.9 118.7 119.1 118.9 118.9 119.1 119.3 120.1 120.4 120.5 121.1 121.1 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,726.1 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 2,740.0 2,751.0 2,792.2 2,793.7 106 Final 1,552.1 2,101.5 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 2,115.8 2,120.8 2,157.5 2,158.2 107 Consumer goods 1,049.6 1,295.0 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 1,294.7 1,302.4 1,319.3 1,320.8 108 Equipment 502.5 808.1 788.1 793.3 800.1 806.7 806.7 812.3 819.0 817.5 822.5 823.4 820.3 840.7 839.8 109 Intermediate 449.9 623.4 619.1 620.4 621.7 625.2 622.1 622.0 622.4 626.4 628.9 623.0 628.9 633.5 634.3 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 • May 2000 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 2000 IItteemm 11999977 11999988 11999999'' Apr. May June July Aug. Sept. Oct. Nov.r Dec.r Jan. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,640 1,572 1,591 1,641 1,641 1,619 1,506 1,594 1,612 1,622 1,772 2 One-family 1,062 1,188 1,232 1,214 1,243 1,241 1,247 1,210 1,171 1,178 1,200 1,228 1,318 3 Two-family or more 379 425 408 358 348 400 394 409 335 416 412 394 454 4 Started 1.474 1,617 1,667 1,561 1,649 1,562 1,704 1,657 1,628 1,636 1,663 1,769 1,758 b One-family 1,134 1,271 1,335 1,248 1,368 1,269 1,348 1,285 1,290 1,343 1,344 1,441 1,363 6 Two-family or more 340 346 332 313 281 293 356 372 338 293 319 328 395 / Under construction at end of period1 833r 935 1,022 l,026r 1,026r l,013r l,017r 1,026 1,021 1,020r 1,022 1,028 1,041 8 One-family 570 637r 704 704r 706r 698r 702r 706r 702r 706r 708 712 720 9 Two-family or more 264 297 318 322r 320r 315 315r 320r 319r 314 314 316 321 10 Completed 1,404r 1,473 1,634 l,635r 1,680r l,657r 1,619' l,581r 1,642r l,608r 1,653 1,644 1,556 11 One-family 1,120 1,158 1,306 l,325r l,355r l,336r l,262r l,251r l,307r l,274r 1,345 1,315 1,258 12 Two-family or more 285 315 328 310r 325r 321r 357r 330r 335r 334r 308 329 298 13 Mobile homes shipped 354 374 348 368 365 355 336 340 320 321 316 304 307 Merchant builder activity in one-family units 14 Number sold 804 886 907 930r 896r 948r 936r 914r 848r 906r 886 921 882 15 Number for sale at end of period1 287 300 327 301r 305r 305r 306r 307 311 314R 318 321 326 Price of units sold (thousands of dollars)2 16 Median 146.0 152.5 160.0 160.0 154.8 158.3 157.9 154.9 162.0 160.0r 170.7 164.0 154.4 17 Average 176.2 181.9 194.9 191.4 188.2 193.4 188.8 193.3 194.4 200.3r 211.5 203.8 194.8 EXISTING UNITS (one-family) 18 Number sold 4,382r 4,970 5,197 5,240r 5,040r 5,590r 5,310r 5,300r 5,150r 4,880r 5,150 5,140 4,450 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 130.7 132.8 136.9 136.0 137.4 134.4 132.5 133.2 133.7 132.2 20 Average 150.5 159.1 168.3 163.8 167.4 174.2 171.9 174.3 170.2 167.2 168.9 168.8 168.9 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 617,877 664,451 706,216 704,582 698,461 698,852 701,961 698,439 698,168 701,933 716,458 731,832 751,764 22 Private 474,842 518,987 547,282 547,885 546,880 546,931 545,992 541,793 540,939 543,796 549,331 556,327 569,007 23 Residential 265,908 293,569 321,746 322,213 321,803 320,913 320,350 319,656 320,048 322,658 325,734 330,133 338,234 24 Nonresidential 208,933 225,418 225,536 225,672 225,077 226,018 225,642 222,137 220,891 221,138 223,597 226,194 230,773 25 Industrial buildings 31,355 32,308 26,621 26,217 24,975 25,465 26,246 25,703 25,566 25,268 26,036 26,063 26,116 26 Commercial buildings 86,190 95,252 103,028 102,180 104,134 104,457 103,355 102,407 102,728 102,454 104,182 103,485 107,929 2/ Other buildings 37,198 39,438 38,734 39.737 38,876 38,592 38,412 37,791 37,727 38,436 37,726 38,393 38,946 28 Public utilities and other 54,190 58,421 57,153 57,538 57,092 57,504 57,629 56,236 54,870 54,980 55,653 58,253 57,782 29 Public 143,035 145,464 158,934 156,697 151,581 151,921 155,969 156,646 157,229 158,137 167,128 175,505 182,757 30 Military 2,559 2,588 2,133 2,268 2,128 2,137 2,275 1,682 1,947 2,092 1,946 2,380 1,848 31 Highway 44,295 45,067 50,749 50,897 48,542 45,518 47,822 48,182 49,031 46,988 54,061 59,434 66,242 32 Conservation and development 5,576 5,487 6,174 6,016 5,101 5,845 5,820 6,598 6,268 6,305 6,683 6,970 6,465 33 Other 90,605 92,322 99,878 97,516 95,810 98,421 100,052 100,184 99,983 102,752 104,438 106,721 108,202 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 FFFeeebbb... 11999999 22000000 222000000000 FFeebb.. FFeebb.. Mar. June Sept. Dec. Oct. Nov. Dec. Jan. Feb. CONSUMER PRICES2 (1982-84=100) 1 All items 1.6 3.2 1.7 2.7 3.9 2.4 .2 .2 .2 .2 .5 169.7 2 Food 2.4 1.8 1.7 1.5 2.5 2.2 .2 .2 .1 -.1 .4 166.3 3 Energy items -5.7 19.9 4.5 16.5 26.0 7.8 .0 .1 1.8 1.0 4.6 116.7 4 All items less food and energy 2.1 2.1 1.4 2.1 2.5 1.8 .2 .2 .1 .2 .2 179.4 5 Commodities .7 .3 -2.7 1.7 2.5 -.6 .1 -.2 -.1 -.2 .0 144.2 6 Services 2.8 2.8 2.9 2.3 2.5 3.1 .2 .4 .2 .3 .3 199.5 PRODUCER PRICES (1982=100) 7 Finished goods .5 4.0 1.5 2.5 6.8 1.2 .0 .2 .1 .0 1.0 136.0 8 Consumer foods .4 1.3 2.7 -.6 3.3 -1.8 -,3r -.f .0 .1 .4 135.9 9 Consumer energy -7.6 24.7 8.6 22.4 37.6 6.9 — ,4r 1.7r .4 .7 5.2 87.4 10 Other consumer goods 3.6 1.5 -.8 .8 3.8 1.1 .2 .0 .1 -.4 .5 153.6 11 Capital equipment .1 .3 -.3 .0 .3 1.2 .2 -.1 .1 .1 .0 138.4 Intermediate materials 12 Excluding foods and feeds -2.6 5.6 .7 5.7 6.6 4.2 ,2r ,5r .4 .4 .8 127.7 13 Excluding energy -1.8 2.7 -.9 2.8 3.4 2.4 .2 .1 .2 .3 .2 135.4 Crude materials 14 Foods -6.6 -.6 10.2 -7.7 3.7 -4.0 .R 1.0R -2.1 .7 .7 97.6 15 Energy -18.0 73.8 -21.1 163.8 134.4 -24.3 -7.01 9.9r -8.7 4.4 10.0 102.2 16 Other -13.1 15.4 2.2 7.0 22.6 24.5 2.4r l.lr 2.0 3.2 -.2 151.0 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 • May 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 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 7 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 y 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 ii 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 li 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 25 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 35 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' income1 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 Ptofits 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 11999999rr Q4 Qi Q2 Q3 Q4r PERSONAL INCOME AND SAVING 1 Total personal income 6,951.1 7,358.9 7,791.0 7,530.8 7,630.2 7,732.6 7,831.4 7,969.6 2 Wage and salary disbursements 3,888.9 4,186.0 4,472.4 4,297.3 4,371.5 4,432.6 4,509.4 4,576.0 Commodity-producing industries 975.5 1,038.7 1,082.4 1,056.6 1,062.9 1,075.1 1,090.2 1,101.3 4 Manufacturing 718.8 757.5 779.7 765.6 767.0 774.8 786.4 790.6 5 Distributive industries 879.1 944.6 1,005.8 969.9 986.3 997.6 1,013.4 1,025.7 6 Service industries 1,369.8 1,509.9 1,657.7 1,568.0 1,606.6 1,638.5 1,675.5 1,710.4 7 Government and government enterprises 664.4 692.8 726.5 702.8 715.8 721.3 730.3 738.6 8 Other labor income 500.9 515.7 535.8 522.1 528.0 533.0 538.5 543.7 9 Proprietors' income 578.6 606.1 658.5 637.1 639.9 655.3 654.0 684.8 10 Business and professional' 549.1 581.0 627.1 596.0 607.5 621.2 633.0 646.6 11 Farm 29.5 25.1 31.4 41.1 32.5 34.1 21.0 38.2 12 Rental income of persons2 130.2 137.4 145.9 147.0 148.6 148.8 139.0 147.1 n Dividends 333.4 348.3 364.3 351.9 356.1 361.2 367.0 373.1 14 Personal interest income 854.9 897.8 930.5 906.4 907.4 920.5 938.8 955.5 15 Transfer payments 962.4 983.6 1,018.1 991.0 1,007.8 1,013.6 1,021.3 1,029.8 16 Old age survivors, disability, and health insurance benefits 565.8 578.1 596.4 581.1 588.9 593.0 599.0 604.7 17 LESS: Personal contributions for social insurance 298.1 315.9 334.6 322.0 328.9 332.3 336.7 340.4 18 EQUALS: Personal income 6,951.1 7,358.9 7,791.0 7,530.8 7,630.2 7,732.6 7,831.4 7,969.6 19 LESS: Personal tax and nontax payments 968.3 1,072.6 1,151.9 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 6,639.0 6,417.8 6,505.4 6,593.2 6,671.0 6,786.5 21 LESS: Personal outlays 5,711.7 6,056.6 6,483.5 6,190.3 6,310.3 6,425.2 6,531.5 6,666.8 22 EQUALS: Personal saving 271.1 229.7 155.5 227.5 195.1 168.0 139.5 119.6 MEMO Per capita (chained 1996 dollars) ?3 Gross domestic product 30,466.7 31,471.8 32,456.0 31,882.1 32,112.7 32,179.8 3322,,554433..44 3333,,000088..22 24 Personal consumption expenditures 20,275.2 21,059.2 21,965.4 21,339.3 21,640.6 21,854.1 22,059.5 22,320.5 25 Disposable personal income 21,954.0 22,636.0 23,309.0 22,924.0 23,110.0 23,239.0 23,343.0 23,542.0 26 Saving rate (percent) 4.5 3.7 2.3 3.5 3.0 2.5 2.1 1.8 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 271.1 229.7 155.5 227.5 195.1 168.0 139.5 119.6 30 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 665577..22 667766..55 668855..88 33 Noncorporate 249.8 261.5 278.9 267.7 271.0 274.6 287.2 282.8 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 90.9 88.1 89.6 90.2 91.2 92.4 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. 42 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 43 Gross government investment 258.1 268.7 297.6 272.6 289.8 292.2 295.7 312.8 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 • May 2000 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1998 1999 IItteemm ccrreeddiittss oorr ddeebbiittss 11999977 11999988 11999999 Q4 Ql Q2 Q3 Q4P 1 Balance on current account -143,465 -220,562 -338,918 -61,669 —68,902r -81,157r -89,085 -99,779 ? Balance on goods and services -104,730 -164,282 -267,548 -43,262 -54,177r —65,290r -72,588 -75,496 3 Exports 938,543 933,907 960,088 236,904 231,567r 234,174r 243,254 251,092 4 Imports -1,043,273 -1,098,189 -1,227,636 -280,166 —285,744' -299,464' -315,842 -326,588 5 Income, net 3,231 -12,205 -24,789 -4,933 —4,419r —4,692r -5,289 -10,391 6 Investment, net 8,185 -6,956 -19,186 -3,571 —3,029r -3,308r -3,887 -8,964 7 Direct 69,220 59,405 58,433 14,558 14,757r 13,913r 16,543 13,218 8 Portfolio -61,035 -66,361 -77,619 -18,129 — 17,786r -17,221r -20,430 -22,182 9 Compensation of employees -4,954 -5,249 -5,603 -1,362 — l,390r - l,384r -1,402 -1,427 10 Unilateral current transfers, net -41,966 -44,075 -46,581 -13,474 -10,306r — ll,175r -11,208 -13,892 11 Change in U.S. government assets other than official reserve assets, net (increase, —) 68 -429 -365 -50 119 -392 -686 559944 12 Change in U.S. official reserve assets (increase, -) -1,010 -6,784 8,749 -2,369 4,068 1,159 1,950 1,572 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -350 -149 12 -227 563 -190 -185 -176 15 Reserve position in International Monetary Fund -3,575 -5,118 5,485 -1,924 3 1,413 2,268 1,801 16 Foreign currencies 2,915 -1,517 3,252 -218 3,502 -64 -133 -53 17 Change in U.S. private assets abroad (increase, -) -464,354 -285,605 -380,951 -48,188 - 19,581r — 155,726r -114,652 -90,988 18 Bank-reported claims3 -144,822 -24,918 -61,424 37,192 27,771 -42,519 -8,799 -37,877 19 Nonbank-reported claims -120,403 -25,041 -69,493 16,202 -13,853 -16,816 -24,066 -14,758 20 U.S. purchases of foreign securities, net -89,174 -102,817 -97,882 -70,809 8,132 -64,579 -34,431 -7,004 21 U.S. direct investments abroad, net -109,955 -132,829 -152,152 -30,773 -41,631r -31,812r -47,356 -31,349 22 Change in foreign official assets in United States (increase, +) 18,119 -21,684 44,570 24,352 4,708 -628 11,881 28,609 73 U.S. Treasury securities -6,690 -9,957 12,073 31,836 800 -6,708 12,963 5,018 24 Other U.S. government obligations 4,529 6,332 20,350 1,562 5,993 5,792 1,835 6,730 25 Other U.S. government liabilities3 -1,798 -3,113 -3,698 -1,054 -1,594 -647 -1,070 -387 26 Other U.S. liabilities reported by U.S. banks' 22,286 -11,469 14,937 -7,133 -589 1,437 -2,032 16,121 27 Other foreign official assets4 -208 -3,477 908 -859 98 -502 185 1,127 28 Change in foreign private assets in United States (increase, +) 733,542 524,321 706,195 125,453 84,260r 275,007r 195,854 151,077 29 U.S. bank-reported liabilities* 149,026 40,731 67,713 -21,811 -14,184 34,938 22.629 24,330 30 U.S. nonbank-reported liabilities 107,779 9,412 29,411 -53,210 20,188 8,871 3,475 -3,123 31 Foreign private purchases of U.S. Treasury securities, net 146,433 46,155 -21,756 24,391 -8,781 -5,407 9,639 -17,207 37 U.S. currency flows 24,782 16,622 22,407 6,250 2,440 3,057 4,697 12,213 33 Foreign purchases of other U.S. securities, net 196,258 218,026 325,913 49,328 61,540 79,067 94,573 90,733 34 Foreign direct investments in United States, net 109,264 193,375 282,507 120,505 23,057r 154,481r 60,841 44,131 35 Capital account transactions, net5 292 617 -172 166 166 178 175 -691 36 Discrepancy -143,192 10,126 -39,108 -37,695 —4,838r —38,441r -5,437 9,606 37 Due to seasonal adjustment 4,144 5,650r 662r -9,615 3,301 38 Before seasonal adjustment -143,192 10,126 -39,108 -41,839 -10,488 -39,103 4,178 6,305 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) -1,010 -6,784 8,749 --22,,336699 4,068 1,159 1,950 11,,557722 40 Foreign official assets in United States, excluding line 25 (increase, +) 19,917 -18,571 48,268 25,406 6,302 19 12,951 28,996 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,124 -11,499 968 2,057 2,058 1,966 -983 --22,,007733 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 1. corporations and state and local governments. 2. Reporting banks included all types of depository institutions as well as some brokers 5. Consists of capital transfers (such as those of accompanying migrants entering or and dealers. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Associated primarily with military sales contracts and other transactions arranged with nonfinancial assets. or through foreign official agencies. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current 4. Consists of investments in U.S. corporate stocks and in debt securities of private Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A51 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1999r 2000 IItteemm 11999977 11999988 11999999 July Aug. Sept. Oct. Nov. Dec. Jan.p 1 Goods and services, balance -104,731 -164,282 -271,310 -25,295 —23,747 -23,548 -24,935 -25,974 -24,610 -28,003 2 Merchandise -196,652 -246,932 -347,130 -31,482 -30,192 -30,271 -31,876 -32,869 -31,494 -34,740 3 Services 91,921 82,650 75,820 6,187 6,445 6,723 6,941 6,895 6,884 6,737 4 Goods and services, exports 938,543 933,907 958,491 78,798 82,188 82,266 82,711 83,021 85,562 84,064 5 Merchandise 679,715 670,246 683,021 55,795 59,044 58,839 58,832 59,184 61,942 60,426 6 Services 258,828 263,661 275,470 23,003 23,144 23,427 23,879 23,837 23,620 23,638 7 Goods and services, imports -1,043,273 —1,098,189 -1,229,802 -104,093 -105,935 -105,814 -107,646 -108,995 -110,172 -112,067 8 Merchandise -876,366 -917,178 -1,030,152 -87,277 -89,236 -89,110 -90,708 -92,053 -93,436 —95,166 9 Services -166,907 -181,011 -199,650 -16,816 -16,699 -16,704 -16,938 -16,942 -16,736 -16,901 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Total 75,090 69,954 81,755 72,649 73,414 73,230 72,318 71,516 69,898 69,309 70,789 2 Gold stock, including Exchange Stabilization Fund1 11,049 11,050 11,041 11,046 11,047 11,049 11,049 11,089 11,048 11,048 11,048 3 Special drawing rights2'3 10,312 10,027 10,603 10,152 10,284 10,232 10,326 10,336 10,199 10,277 10,335 4 Reserve position in International Monetary Fund2 15,435 18,071 24,111 19,885 19,978 19,571 18,707 17,950 17,710 17,578 17,871 5 Foreign currencies4 38,294 30,809 36,001 31,566 32,105 32,378 32,236 32,182 30,941 30,406 31,535 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 Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.p 1 Deposits 167 457 167 166 243 189 501 71 82 87 125 Held in custody 2 U.S. Treasury securities2 638,049 620,885 607,574 626,669 634,086 621,351 629,430 632,482 627,326 631,421 641,830 3 Earmarked gold3 11,197 10,763 10,343 10,271 10,155 10,114 10,015 9,933 9,866 9,771 9,711 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 • May 2000 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999r 2000 IItteemm 11999977 11999988 July Aug. Sept. Oct. Nov. Dec. Jan.? 1 Total1 776,505 759,928 773,497 782,490 778,640 782,865 779,191 805,939 803,786 By type 2 Liabilities reported by banks in the United States 135,384 125,883 125,873 126,220 124,148 124,523 122,505 138,572 130,065 3 U.S. Treasury bills and certificates3 148,301 134,177 147,492 153,499 152,457 154,582 153,465 156,073 153,548 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 420,197 422,591 420,877 419,629 417,304 422,266 429,029 5 Nonmarketable4 5,994 6,074 6,022 6,060 6,098 6,139 6,177 6,111 6,152 6 U.S. securities other than U.S. Treasury securities5 58,822 61,667 73,913 74,120 75,060 77,992 79,740 82,917 84,992 By area 7 Europe1 252,289 256,026 240,546 243,334 241,233 243,412 242,587 244,802 241,577 8 Canada 36,177 36,715 39,147 39,342 39,337 39,682 39,081 38,666 39,439 9 Latin America and Caribbean 96,942 79,503 77,832 75,339 74,279 73,627 70,632 73,414 71,888 10 Asia 400,144 400,631 430,032 438,264 437,895 439,811 441,070 463,434 463,561 11 9,981 10,059 8,397 8,140 8,236 7,868 7,174 7,520 8,205 12 Other countries 7,058 3,080 3,629 4,157 3,746 4,551 4,733 4,189 5,202 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 1999 IItteemm 11999966 11999977 11999988 Mar.r Juner Sept.r Dec. 1 Banks' liabilities 103,383 117,524 101,125 101,360 97,820 111,221 97,223 2 Banks' claims 66,018 83,038 78,162 80,640 67,946 79,418 79,155 3 Deposits 22,467 28,661 45,985 40,957 39,801 45,099 46,232 4 Other claims 43,551 54,377 32,177 39,683 28,145 34,319 32,923 5 Claims of banks' domestic customers2 10,978 8,191 20,718 11,039 23,474 11,534 20,826 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1999 2000 IItteemm 11999977 11999988 11999999'' July Aug. Sept. Oct. Nov. Dec. Jan.P BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,283,027 1,347,837 1,425,495 1,342,632 1,387,383 1,378,738 1,374,075 l,444,376r 1,425,495 1,422,102 2 Banks' own liabilities 882,980 884,939 975,822 889,734 907,997 927,131 931,730 976,368r 975,822 980,232 3 Demand deposits 31,344 29,558 42,917 43,183 44,940 44,594 39,451 42,889r 42,917 36,580 4 Time deposits2 198,546 151,761 167,253 156,294 154,433 156,352 162,273 166,483r 167,253 164,416 5 Other3 168,011 140,752 162,445 152,455 152,766 160,883 155,743 162,825r 162,445 174,462 6 Own foreign offices4 485,079 562,868 603,207 537,802 555,858 565,302 574,263 604,171r 603,207 604,774 7 Banks' custodial liabilities5 400,047 462,898 449,673 452,898 479,386 451,607 442,345 468,008' 449,673 441,870 8 U.S. Treasury bills and certificates6 193,239 183,494 185,677 187,872 192,096 189,030 188,486 184,675 185,677 181,819 9 Other negotiable and readily transferable instruments7 93,641 141,699 132,575 123,813 133,789 131,726 131,464 131,859 132,575 128,899 10 Other 113,167 137,705 131,421 141,213 153,501 130,851 122,395 151,474' 131,421 131,152 11 Nonmonetary international and regional organizations8 .. 11,690 11,883 14,902 18,463 18,268 18,646 17,893 14,043 14,902 20,949 12 Banks' own liabilities 11,486 10,850 13,983 16,964 16,856 17,726 17,052 13,156 13,983 20,093 13 Demand deposits 16 172 98 66 31 21 187 70 98 202 14 Time deposits2 5,466 5,793 10,349 7,380 6,419 7,370 8,772 7,675 10,349 9,621 15 Other3 6,004 4,885 3,536 9,518 10,406 10,335 8,093 5,411 3,536 10,270 16 Banks' custodial liabilities5 204 1,033 919 1,499 1,412 920 841 887 919 856 17 U.S. Treasury bills and certificates6 69 636 680 953 896 661 628 658 680 625 18 Other negotiable and readily transferable instruments7 133 397 233 533 516 259 213 229 233 225 19 Other 2 0 6 13 0 0 0 0 6 6 20 Official institutions9 283,685 260,060 294,645 273,365 279,719 276,605 279,105 275,970' 294,645 283,613 21 Banks' own liabilities 102,028 80,256 97,373 80,400 77,801 76,780 79,376 80,029' 97,373 82,435 22 Demand deposits 2,314 3,003 3,341 2,652 2,537 2,932 2,314 2,829 3,341 2,645 23 Time deposits2 41,396 29,506 28,770 26,326 24,407 25,301 29,152 27,009' 28,770 25,195 24 Other3 58,318 47,747 65,262 51,422 50,857 48,547 47,910 50,191 65,262 54,595 25 Banks' custodial liabilities5 181,657 179,804 197,272 192,965 201,918 199,825 199,729 195,941 197,272 201,178 26 U.S. Treasury bills and certificates6 148,301 134,177 156,073 147,492 153,499 152,457 154,582 153,465 156,073 153,548 27 Other negotiable and readily transferable instruments7 33,151 44,953 41,152 45,094 48,297 46,633 44,804 42,331 41,152 47,077 28 Other 205 674 47 379 122 735 343 145 47 553 29 Banks10 815,247 885,336 914,005 853,461 888,409 877,973 874,089 945,756' 914,005 915,848 30 Banks' own liabilities 641,447 676,057 729,472 656,476 677,012 692,332 698,212 739,976' 729,472 736,959 31 Unaffiliated foreign banks 156,368 113,189 126,265 118,674 121,154 127,030 123,949 135,805' 126,265 132,185 32 Demand deposits 16,767 14,071 17,583 14,086 15,436 14,084 17,111 14,402 17,583 12,955 33 Time deposits2 83,433 45,904 48,273 49,523 49,623 49,655 48,693 54,388 48,273 51,183 34 Other3 56,168 53,214 60,409 55,065 56,095 63,291 58,145 67,015' 60,409 68,047 35 Own foreign offices4 485,079 562,868 603,207 537,802 555,858 565,302 574,263 604,171' 603,207 604,774 36 Banks' custodial liabilities5 173,800 209,279 184,533 196,985 211,397 185,641 175,877 205,780' 184,533 178,889 37 U.S. Treasury bills and certificates6 31,915 35,359 16,927 28,284 26,314 24,749 22,203 19,512 16,927 17,582 38 Other negotiable and readily transferable instruments7 35,393 45,332 45,695 37,663 41,541 40,370 41,529 44,889 45,695 40,393 39 Other 106,492 128,588 121,911 131,038 143,542 120,522 112,145 141,379' 121,911 120,914 40 Other foreigners 172,405 190,558 201,943 197,343 200,987 205,514 202,988 208,607 201,943 201,692 41 Banks' own liabilities 128,019 117,776 134,994 135,894 136,328 140,293 137,090 143,207 134,994 140,745 42 Demand deposits 12,247 12,312 21,895 26,379 26,936 27,557 19,839 25,588' 21,895 20,778 43 Time deposits2 68,251 70,558 79,861 73,065 73,984 74,026 75,656 77,411' 79,861 78,417 44 Other3 47,521 34,906 33,238 36,450 35,408 38,710 41,595 40,208 33,238 41,550 45 Banks' custodial liabilities5 44,386 72,782 66,949 61,449 64,659 65,221 65,898 65,400 66,949 60,947 46 U.S. Treasury bills and certificates6 12,954 13,322 11,997 11,143 11,387 11,163 11,073 11,040 11,997 10,064 47 Other negotiable and readily transferable instruments7 24,964 51,017 45,495 40,523 43,435 44,464 44,918 44,410 45,495 41,204 48 Other 6,468 8,443 9,457 9,783 9,837 9,594 9,907 9,950 9,457 9,679 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 16,083 27,026 30,345 21,811 22,565 24,367 26,550 28,320 30,345 28,344 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 • May 2000 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 2000 IItteemm 11999977 11999988 11999999RR July Aug. Sept. Oct. Nov. Dec. Jan.P AREA 50 Total, all foreigners 1,283,027 1,347,837 1,425,495 1,342,632 1,387,383 1,378,738 1,374,075 l,444,376r 1,425,495 1,422,102 51 Foreign countries 1,271,337 1,335,954 1,410,593 1,324,169 1,369,115 1,360,092 1,356,182 l,430,333r 1,410,593 1,401,153 52 Europe 419,672 427,375 447,999 440,903 452,653 456,956 442,523 470,915R 447,999 449,106 53 Austria 2,717 3,178 2,789 2,770 3,210 3,205 3,299 2,842 2,789 2,675 54 Belgium and Luxembourg 41,007 42,818 44,692 33,913 36,668 36,890 38,590 41,33 lr 44,692 42,434 55 Denmark 1,514 1,437 2,196 1,143 1,811 1,903 2,658 3,197 2,196 2,510 56 Finland 2,246 1,862 1,658 1,358 1,335 1,222 1,269 1,894 1,658 1,290 57 France 46,607 44,616 49,790 42,622 42,424 45,809 45,764 50,262 49,790 48,530 58 Germany 23,737 21,357 24,748 23,950 23,719 24,485 25,479 26,537 24,748 23,279 59 Greece 1,552 2,066 3,748 3,168 3,121 3,358 3,322 3,365 3,748 3,118 60 Italy 11,378 7,103 6,775 6,426 5,832 6,231 6,306 5,264 6,775 6,259 61 Netherlands 7,385 10,793 8,310 12,206 11,292 11,634 13,882 12,775 8,310 7,266 62 Norway 317 710 1,327 1,184 1,333 1,225 951 1,364 1,327 834 63 Portugal 2,262 3,236 2,228 2,237 1,912 1,976 1,875 2,148 2,228 2,034 64 Russia 7,968 2,439 5,475 2,756 2,665 2,816 3,713 3,655 5,475 6,404 65 Spain 18,989 15,781 10,426 7,700 8,202 9,479 9,287 11,181 10,426 12,531 66 Sweden 1,628 3,027 4,652 3,851 3,779 4,571 5,381 5,518 4,652 4,673 67 Switzerland 39,023 50,654 65,985 60,758 76,176 69,338 65,967 67,027 65,985 68,718 68 Turkey 4,054 4,286 7,842 7,786 7,883 8,368 8,252 8,817r 7,842 6,897 69 United Kingdom 181,904 181.554 176,165 200,038 192,431 196,490 178,022 195,465 176,165 184,442 70 Yugoslavia11 239 233 286 289 270 266 267 267 286 273 71 Other Europe and other former U.S.S.R.1" 25,145 30,225 28,907 26,748 28,590 27,690 28,239 28,006 28,907 24,939 72 Canada 28,341 30,212 34,119 29,862 30,409 29,728 34,995 33,746 34,119 32,951 73 Latin America and Caribbean 536,393 554,866 590,004 554,419 581,419 570,309 573,215 616,376r 590,004 610,074 74 Argentina 20,199 19,014 18,529 17,205 17,064 15,547 17,546 15,042r 18,529 15,321 75 Bahamas 112,217 118,085 134,407 122,465 132,442 139,101 134,111 139,179 134,407 149,643 76 Bermuda 6,911 6,846 7,877 9,410 9,319 8,747 10,902 8,859 7,877 9,975 77 Brazil 31,037 15,815 12,860 15,413 15,423 16,241 13,253 14,184r 12,860 12,135 78 British West Indies 276,418 302,486 325,159 294,245 315,843 299,669 308,593 350,030r 325,159 331,243 79 Chile 4,072 5,015 7,008 6,744 5,805 6,601 6,559 6,521 7,008 6,363 80 Colombia 3,652 4,624 5,656 4,637 4,455 4,711 5,011 4,783 5,656 4,427 81 Cuba 66 62 75 70 72 76 72 73 75 75 82 Ecuador 2,078 1,572 1,956 1,975 1,724 1,792 1,833 1,930 1,956 1,969 83 Guatemala 1,494 1,336 1,621 1,425 1,521 1,471 1,484 1,577 1,621 1,619 84 Jamaica 450 577 520 471 533 550 549 546 520 540 85 Mexico 33,972 37,157 30,718 39,024 36,301 35,028 32,208 31,187 30,718 32,064 86 Netherlands Antilles 5,085 5.010 3,997 3,010 3,408 2,927 2,688 3,389 3,997 4,269 87 Panama 4,241 3,864 4,415 3,846 3,816 4,029 4,007 3,834 4,415 4,020 88 Peru 893 840 1,142 837 995 1,042 959 991' 1,142 1,068 89 Uruguay 2,382 2,486 2,386 2,323 2,151 2,177 2,218 2,585r 2,386 2,257 90 Venezuela 21,601 19,894 20,189 20,437 19,797 19,451 19,914 20,311 20,189 21,397 91 Other 9,625 10,183 11,489 10,882 10,750 11,149 11,308 ll,349r 11,489 11,689 92 269,379 307,960 319,350 283,218 288,982 287,227 228877,,996633 229922,,007788rr 331199,,335500 229900,,008855 China 93 Mainland 18,252 13,441 12,325 10,872 12,359 11,914 10,460 13,981 12,325 11,565 94 Taiwan 11,840 12,708 13,595 12,482 12,678 12,514 12,023 14,791 13,595 11,666 95 Hong Kong 17,722 20,900 27,697 24,200 24,149 23,368 24,299 22,276r 27,697 25,943 96 India 4,567 5,250 7,367 5,864 5,408 5,625 5,659 5,610 7,367 5,490 9/ Indonesia 3,554 8,282 6,567 7,309 6,633 6,468 6,037 6,486 6,567 6,853 98 Israel 6,281 7,749 7,488 5,076 5,059 5,688 5,175 5,071 7,488 6,569 99 Japan 143,401 168,563 159,064 145,652 145,403 149,578 151,632 152,095 159,064 149,097 100 Korea (South) 13,060 12,524 12,840 12,792 12,723 11,903 9,935 8,474 12,840 11,215 101 Philippines 3,250 3,324 3,253 2,177 2,189 2,414 2,134 2,639 3,253 1,924 102 Thailand 6,501 7,359 6,050 6,054 5,809 5,281 4,983 5,164 6,050 5,399 103 Middle Eastern oil-exporting countries13 14,959 15,609 21,280 15,581 15,942 14,367 16,825 17,944 21,280 16,901 104 Other 25,992 32,251 41,824 35,159 40,630 38,107 38,801 37,547 41,824 37,463 105 Africa 10,347 8,905 9,469 7,508 7,660 8,045 8,037 7,799 9,469 8,032 106 Egypt 1,663 1,339 2,022 1,566 1,851 1,852 1,364 1,846 2,022 1,613 107 Morocco 138 97 179 116 108 118 174 166 179 176 108 South Africa 2,158 1,522 1,495 1,049 885 753 828 957 1,495 651 109 Zaire 10 5 14 13 13 13 14 13 14 7 110 Oil-exporting countries14 3,060 3,088 2,915 2,281 2,510 2,807 2,912 2,248r 2,915 2,953 111 Other 3,318 2,854 2,844 2,483 2,293 2,502 2,745 2,569r 2,844 2,632 112 Other 7,205 6,636 9,652 8,259 7,992 7,827 9,449 9,419 9,652 10,905 113 Australia 6,304 5,495 8,377 7,252 6,963 6,788 8,199 8,394 8,377 9,911 114 Other 901 1,141 1,275 1,007 1,029 1,039 1,250 1,025 1,275 994 115 Nonmonetary international and regional organizations . . 11,690 11,883 14,902 18,463 18,268 18,646 17,893 14,043 14,902 20,949 116 International15 10,517 10,221 13,002 15,822 16,112 16,570 16,009 12,710 13,002 18,850 117 Latin American regional16 424 594 650 819 725 662 960 345 650 1,128 118 Other regional17 749 1,068 1,250 1,822 1,431 1,414 924 988 1,250 971 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999 2000 AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999rr July Aug. Sept. Oct. Nov. Dec. Jan.p 1 Total, all foreigners 708,225 734,995 791,863 721,360 731,130 758,620 752,264 779,740r 791,863 753,584 2 Foreign countries 705,762 731,378 787,718 716,953 727,974 755,030 746,974 774,075r 787,718 748,685 3 Europe 199,880 233,321 313,490 293,100 305,205 316,152 293,602 313,288' 313,490 305,878 4 Austria 1,354 1,043 2,643 3,855 3,080 2,335 2,751 2,407 2,643 3,030 5 Belgium and Luxembourg 6,641 7,187 10,112 9,224 7,478 7,239 9,624 9,332 10,112 8,825 6 Denmark 980 2,383 1,669 1,763 1,442 1,756 2,352 1,756 1,669 1,692 7 Finland 1,233 1,070 1,988 2,197 1,915 1,855 1,669 2,034 1,988 2,319 8 France 16,239 15,251 29,088 19,964 19,040 19,253 21,527 24,592r 29,088 29,997 9 Germany 12,676 15,923 29,190 23,965 23,558 22,995 23,616 22,365 29,190 29,871 in Greece 402 575 806 628 659 663 743 754 806 806 ii Italy 6,230 7,284 8,496 7,451 7,748 7,958 6,682 7,297 8,496 8,619 i? Netherlands 6,141 5,697 10,431 9,334 10,132 9,425 8,940 8,100r 10,431 10,119 1 1 3 4 N Po o r r t w ug a a y l 51515 1 8 6 2 6 7 9 1, 7 5 9 7 4 1 1, 8 0 2 5 1 6 1, 5 2 8 2 3 2 1 1 , , 3 2 4 5 2 2 1, 9 6 4 9 9 1 1, 9 4 2 3 0 0 1, 7 5 9 7 4 1 1 1, , 1 3 9 0 6 7 IS Russia 1,248 789 713 831 782 814 871 711 713 701 1<S Spain 2,942 5,735 3,796 4,606 3,700 5,104 4,073 4,641 3,796 4,581 17 Sweden 1,854 4,223 3,213 3,199 4,082 4,184 4,325 3,853 3,213 4,503 IS Switzerland 28,846 46,874 78,979 66,927 71,866 90,187 78,448 91,493r 78,979 68,892 19 Turkey 1,558 1,982 2,617 2,221 2,270 2,385 2,394 2,49 r 2,617 2,668 70 United Kingdom 103,143 106,349 119,772 125,633 137,680 129,347 114,209 120,836r 119,772 119,951 21 Yugoslavia2 52 53 50 50 49 50 51 50 50 50 22 Other Europe and other former U.S.S.R.3 7,009 9,407 7,562 9,375 7,919 8,008 8,687 8,226 7,562 6,751 23 Canada 27,189 47,037 37,127 31,957 32,109 37,197 35,903 37,060 37,127 36,353 74 Latin America and Caribbean 343,730 342,654 353,239 311,685 310,088 320,952 335,151 335,356r 353,239 323,223 7 7 5 6 A Ba rg h e a n m ti a n s a 8 8 9 , , 9 3 2 7 4 9 96 9 , , 4 5 5 5 5 2 9 1 9 0 , , 3 1 2 6 4 7 7 1 7 0 , , 0 4 4 7 9 9 7 1 7 0 , , 6 2 7 5 4 3 8 1 5 0 , , 3 2 8 9 6 3 8 1 7 0 , , 0 1 8 5 5 3 910,,103 M4r l' 9 1 9 0 , , 3 1 2 6 4 7 78 9 , ,9 6 5 4 1 1 77 Bermuda 8,782 5,011 8,007 7,813 9,747 8,481 9,887 9,449 8,007 10,129 78 Brazil 21,696 16,184 15,706 14,605 13,793 13,983 14,216 14,973r 15,706 14,965 79 British West Indies 145,471 153,749 167,062 146,858 137,214 142,500 159,145 158,937r 167,062 157,590 30 Chile 7,913 8,250 6,607 7,153 6,900 6,810 6,846 6,591 6,607 6,666 31 Colombia 6,945 6,507 4,527 5,587 5,040 4,818 4,800 4,745 4,527 4,347 3 3 7 3 C Ec u u b a a d or 11,,331111 0 1,40 0 0 760 0 993 0 889 0 844 0 793 0 ie0\ ' 760 0 685 0 34 Guatemala 888866 1,127 1,133 1,075 1,053 1,064 1,084 1,090 1,133 1,062 35 Jamaica 424 239 295 311 322 330 318 309r 295 298 36 Mexico 19,428 21,212 17,835 18,978 17,819 18,255 17,800 17,924r 17,835 17,614 37 Netherlands Antilles 17,838 6,779 5,962 5,101 14,032 13,298 7,497 8,078 5,962 6,194 38 Panama 4,364 3,584 3,387 3,064 2,898 2,941 2,917 3,050 3,387 3,051 39 Peru 3,491 3,275 2,529 2,710 2,515 2,533 2,442 2,507 2,529 2,458 40 Uruguay 629 1,126 801 1,101 1,041 945 778 775 801 709 41 Venezuela 2,129 3,089 3,494 3,501 3,460 3,325 4,103 3,587 3,494 3,518 42 Other 4,120 5,115 5,643 5,307 5,438 5,146 5,287 5,369r 5,643 5,345 43 125,092 98,607 74,522 72,636 73,257 72,449 73,072 78,429r 74,522 73,211 China 44 Mainland 1,579 1,261 2,090 3,144 2,758 2,032 1,998 2,082 2,090 2,221 45 Taiwan 922 1,041 1,339 904 937 790 816 1,495 1,339 1,411 46 Hong Kong 13,991 9,080 5,706 5,333 4,969 5,224 4,740 6,010 5,706 5,055 47 India 2,200 1,440 1,738 1,708 1,728 1,736 1,856 1,972 1,738 1,616 48 Indonesia 2,651 1,942 1,776 1,791 1,711 1,689 1,636 1,681 1,776 1,711 49 Israel 768 1,166 1,875 1,433 1,669 951 857 l,053r 1,875 1,853 50 Japan 59,549 46,713 28,611 25,900 26,226 27,978 28,339 30,280 28,611 28,612 51 Korea (South) 18,162 8,289 9,237 12,753 12,194 11,093 12,432 13,262r 9,237 11,362 57 Philippines 1,689 1,465 1,410 1,380 1,279 1,491 1,562 990 1,410 1,088 53 Thailand 2,259 1,807 1,518 1,683 1,549 1,432 1,411 1,433 1,518 1,158 54 Middle Eastern oil-exporting countries4 10,790 16,130 14,252 9,792 11,221 11,379 10,667 11,631 14,252 10,998 55 Other 10,532 8,273 4,970 6,815 7,016 6,654 6,758 6,540 4,970 6,126 56 Africa 3,530 3,122 2,274 2,499 2,178 2,293 2,299 2,473 2,274 2,754 57 Egypt 247 257 258 252 209 225 251 233 258 222 58 Morocco 511 372 352 431 444 437 439 354 352 299 59 South Africa 805 643 622 598 449 506 589 873 622 943 60 Zaire 0 0 24 0 0 0 0 9 24 0 61 Oil-exporting countries5 1,212 936 276 297 280 323 253 275 276 462 62 Other 755 914 742 921 796 802 767 729 742 828 63 Other 6,341 6,637 7,066 5,076 5,137 5,987 6,947 7,469 7,066 7,266 64 Australia 5,300 6,173 6,785 4,811 4,907 5,770 6,696 7,272 6,785 7,055 65 Other 1,041 464 281 265 230 217 251 197 281 211 66 Nonmonetary international and regional organizations6. . . 2,463 3,617 4,145 4,407 3,156 3,590 5,290 5,665 4,145 4,899 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 • May 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 2000 TTyyppee ooff ccllaaiimm 11999977 11999988 11999999RR July Aug. Sept. Oct. Nov.r Dec. Jan.p 1 Total 852,852 875,891 941,799 900,582 941,799 2 Banks' claims 708,225 734,995 791,863 721,360 731,130 758,620 752,264 779,740 791,863 753,584 3 Foreign public borrowers 20,581 23,542 34,792 38,471 35,701 35,002 40,948 39,910 34,792 41,624 4 Own foreign offices2 431,685 484,535 527,956 461,013 457,994 488,355 487,578 511,658 527,956 489,836 5 Unaffiliated foreign banks 109,230 106,206 101,310 99,727 108,902 102,029 97,287 99,508 101,310 93,919 6 Deposits 30,995 27,230 34,320 24,804 23,708 24,407 24,868 27,835 34,320 24,227 7 Other 78,235 78,976 66,990 74,923 85,194 77,622 72,419 71,673 66,990 69,692 8 All other foreigners 146,729 120,712 127,805 122,149 128,533 133,234 126,451 128,664 127,805 128,205 9 Claims of banks' domestic customers3 144,627 140,896 149,936 141,962 149,936 10 Deposits 73,110 79,363 86,293 87,222 86,293 11 Negotiable and readily transferable instruments4 53,967 47,914 51,011 40,604 51,011 12 Outstanding collections and other claims 17.550 13,619 12,632 14,136 12,632 MEMO 13 Customer liability on acceptances 9,624 4,520R 4,672 4,620R 4,672 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 33,816 39,978 34,789 32,857 32,336 27,750 33,847 37,163 34,789 45,963 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 1999 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999966 11999977 11999988 Mar. Juner Sept.1" Dec.p 1 Total 258,106 276,550 250,418 242,348r 260,554 270,085 263,548 By borrower 2 Maturity of one year or less 211,859 205,781 186,526 175,391r 186,818 196,816 187,396 3 Foreign public borrowers 15,411 12,081 13,671 20,902 24,661 22,603 22,527 4 All other foreigners 196,448 193,700 172,855 154,489' 162,157 174,213 164,869 5 Maturity of more than one year 46,247 70,769 63,892 66,957r 73,736 73,269 76,152 6 Foreign public borrowers 6,790 8,499 9,839 13,290 11,677 12,193 12,043 7 All other foreigners 39,457 62,270 54,053 53,667r 62,059 61,076 64,109 By area Maturity of one year or less 8 Europe 55,690 58,294 68,679 66,875 84,723 82,567 80,967 9 Canada 8,339 9,917 10,968 7,832 6,705 8,545 7,860 10 Latin America and Caribbean 103,254 97,207 81,766 71,11 lr 65,776 78,122 69,299 11 38,078 33,964 18,007 21,347 21,977 20,839 21,795 1? Africa 1,316 2,211 1,835 1,571 1,543 1,119 1,122 13 All other3 5,182 4,188 5,271 6,655 6,094 5,624 6,353 Maturity of more than one year 14 Europe 6,965 13,240 14,923 16,949 18,863 18,618 20,896 15 Canada 2,645 2,525 3,140 2,766 3,261 3,192 3,112 16 Latin America and Caribbean 24,943 42,049 33,442 33,538r 38,193 38,091 38,558 17 9,392 10,235 10,018 10,972 10,471 10,649 10,888 18 Africa 1,361 1,236 1,232 1,160 1,105 1,087 1,065 19 Allother3 941 1,484 1,137 1,572 1,843 1,632 1,633 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1997 1998r 1999 AArreeaa oorr ccoouunnttrryy 11999955 11999966 Dec. Mar. June Sept. Dec. Mar.1" Juner Sept. Dec.p 1 556.4r 645.8r 721.8r 1029.8 1017.2 1071.9 1051.6 992.7 938.5 936.9 934.4 ? G-10 countries and Switzerland 206.0 228.3 242.8 250.9 273.9 240.0 217.7 208.5 222.2 205.5 235.0 3 Belgium and Luxembourg 13.6 11.7 11.0 12.0 14.0 11.7 10.7 15.6 16.1 15.7 14.2 4 France 19.4 16.6 15.4 16.5 21.7 20.3 18.4 21.6 20.4 19.9 29.0 Germany 27.3 29.8 28.6 27.0 30.5 31.4 30.9 34.7 32.1 37.4 38.7 6 11.5 16.0 15.5 20.8 21.1 18.5 11.5 17.8 16.4 15.0 18.1 7 Netherlands 3.7 4.0 6.2 7.7 8.6 8.4 7.8 10.7 13.3 10.6 10.9 8 Sweden 2.7 2.6 3.3 4.8 3.1 2.1 2.3 4.0 2.6 3.6 2.9 9 Switzerland 6.7 5.3 7.2 5.9 7.0 7.6 8.5 7.8 8.2 8.8 10.1 10 United Kingdom 82.4 104.7 113.4 114.6 125.9 100.1 85.4 55.9 73.4 51.1 72.7 11 Canada 10.3 14.0 13.7 14.2 16.7 15.9 16.8 15.9 17.1 17.8 16.2 12 Japan 28.5 23.7 28.6 27.3 25.3 23.9 25.4 24.6 22.6 25.6 22.0 13 Other industrialized countries 51.9r 66.r 65.5r 78.2 78.7 78.5 69.0 80.1 79.7 71.7 68.1 14 Austria .9 1.1 1.5 1.7 1.9 2.1 1.4 2.8 2.8 3.0 3.5 15 Denmark 2.6 1.5 2.4 2.1 2.2 3.0 2.2 3.4 2.9 2.1 2.6 16 Finland .8 .8 1.3 1.5 1.4 1.6 1.4 1.5 .9 .9 .8 17 Greece 5.7 6.7 5.1 6.1 5.8 5.8 5.9 6.5 5.9 6.6 6.0 18 Norway 3.2 8.0 3.6 4.0 3.4 3.2 3.2 3.1 3.0 3.8 3.1 19 Portugal 1.3 .9 .9 .8 1.4 1.1 1.4 1.4 1.2 1.2 1.0 70 Spain 12.5r 13.3r 12.6r 18.1 17.5 19.5 13.7 15.7 16.6 15.1 12.1 21 Turkey 1.9 2.7 4.5 4.9 6.5 5.2 4.8 5.2 4.9 4.7 4.8 22 Other Western Europe 4.8r 4.9r 8.3r 10.2 9.9 10.4 10.4 10.2 10.2 9.2 6.8 23 South Africa 1.2 2.0 2.2 5.5 6.9 5.4 4.4 4.8 4.7 4.0 3.8 24 Australia 16.9r 24.0 23.1 23.2 21.8 21.4 20.3 25.4 26.6 21.1 23.5 25 22.1 19.8r 26.0 26.0 25.5 26.0 27.1 26.2 26.1 30.1 31.4 76 Ecuador .7 1.1 1.3 1.3 1.2 1.2 1.3 1.2 1.1 .9 .8 71 Venezuela 2.7 2.4 2.5 3.4 3.3 3.1 3.2 3.5 3.2 3.0 2.8 28 Indonesia 4.8 5.2 6.7 5.6 5.1 4.7 4.7 4.5 5.0 4.4 4.2 29 Middle East countries 13.3 10.7 14.4 14.4 15.6 16.1 17.0 16.7 16.5 21.4 23.0 30 African countries .6 .4 1.2 1.4 .3 .8 1.0 .4 .4 .5 .5 31 Non OPEC developing countries 112.9r 130.3 139.2r 149.8 146.1 140.4 143.4 146.7 148.6 142.5 147.2 Latin America 3? Argentina 12.9 14.3 18.4 20.0 20.9 22.9 23.1 24.3 22.8 22.1 22.4 33 Brazil 13.7 20.7 28.6 33.4 30.3 24.0 24.7 24.2 25.1 22.1 26.4 34 Chile 6.8 7.0 8.7 9.0 9.1 8.5 8.3 8.6 8.2 7.7 7.4 35 Colombia 2.9 4.1 3.4 3.3 3.6 3.4 3.2 3.3 3.1 2.7 2.5 36 Mexico 17.3 16.2 17.4 17.8 18.1 18.7 18.9 19.7 18.5 19.4 18.6 37 .8 1.6 2.0 2.1 2.2 2.2 2.2 2.2 2.1 1.8 1.7 38 Other 2.8 3.3 4.1 4.0 4.4 4.6 5.4 5.3 5.5 5.5 5.9 Asia China 39 Mainland 1.8 2.5 3.2 4.2 3.9 2.8 3.0 5.0 5.3 3.3 3.6 40 Taiwan 9.4 10.3 9.5r 12.1 11.8 12.5 13.3 11.8 12.6 12.3 12.0 41 India 4.4 4.3 4.9 5.0 4.9 5.3 5.5 5.5 6.7 7.0 7.7 47 Israel .5 .5 .7 .7 .9 .9 1.1 1.1 2.0 1.0 1.8 43 Korea (South) 19.1 21.5 15.6 16.2 14.6 13.1 13.7 13.7 15.3 16.0 15.0 44 Malaysia 4.4 6.0 5.1 4.5 4.7 5.0 5.6 5.9 6.0 6.1 6.1 45 Philippines 4.1 5.8 5.7 5.1 5.4 4.7 5.1 5.4 5.7 5.8 6.2 46 Thailand 5.2r 5.7 5.4 5.5 5.0 5.3 4.7 4.5 4.2 4.0 4.1 47 Other Asia 4.5 4.1 4.3 4.2 3.7 3.1 2.9 3.0 2.8 2.8 2.9 Africa 48 Egypt .4 .7 .9 1.0 1.5 1.7 1.3 1.4 1.4 1.3 1.4 49 .7 .7 .6 .6 .6 .5 .5 .5 .5 .5 .4 50 Zaire .0 .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .9 .8 1.1 .8 1.1 1.0 1.2 1.0 1.0 1.0 52 Eastern Europe 4.2 6.9 9.1 12.3 11.3 6.3 5.5 7.1 5.8 5.4 5.2 53 Russia4 1.0 3.7 5.1 7.5 6.9 2.8 2.2 2.3 2.1 2.0 1.6 54 Other 3.2 3.2 4.0 4.7 4.4 3.5 3.3 4.8 3.7 3.4 3.6 55 Offshore banking centers 102.2r 135.lr 140.2r 133.1 130.0 121.0 93.9 93.6 75.9 90.3 60.0 56 Bahamas 12.9r 20.5r 24.2r 32.6 28.6 30.7 35.4 32.6 20.4 29.4 13.9 57 Bermuda 6.3 4.5 9.8 9.1 9.4 10.4 4.6 3.9 5.7 8.2 8.0 58 Cayman Islands and other British West Indies 32.4 37.2 43.4 24.9 34.3 27.8 12.8 13.9 7.2 6.3 1.3 59 Netherlands Antilles 10.3 26.1 14.6 14.0 10.5 6.0 2.6 2.7 1.3 9.1 1.7 60 Panama5 1.4 2.0 3.1 3.2 3.3 4.0 3.9 3.9 3.9 3.9 3.9 61 Lebanon .1 .1 .1 .1 .1 .2 .1 .1 .1 .2 .1 62 Hong Kong, China 25.0 27.9 32.2 33.9 30.0 30.6 23.3 22.8 22.0 22.4 21.0 63 Singapore 13.7r 16.7 12.7 15.0 13.6 11.1 11.1 13.5 15.2 10.6 10.0 64 Other" .1 .1 .1 .1 .2 .2 .2 .2 .1 .2 .1 65 Miscellaneous and unallocated7 57.6 59.6 99.1 379.7 351.7 459.9 495.1 430.4 380.2 391.2 387.5 1. The banking offices covered by these data include U.S. offices and foreign branches of 2. Organization of Petroleum Exporting Countries, shown individually; other members of U.S. banks, including U.S. banks that are subsidiaries of foreign banks. Offices not covered OPEC (Algeria, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, and United include U.S. agencies and branches of foreign banks. Beginning March 1994, the data include Arab Emirates); and Bahrain and Oman (not formally members of OPEC). large foreign subsidiaries of U.S. banks. The data also include other types of U.S. depository 3. Excludes Liberia. Beginning March 1994 includes Namibia. institutions as well as some types of brokers and dealers. To eliminate duplication, the data 4. As of December 1992, excludes other republics of the former Soviet Union. are adjusted to exclude the claims on foreign branches held by a U.S. office or another foreign 5. Includes Canal Zone. branch of the same banking institution. 6. Foreign branch claims only. These data are on a gross claims basis and do not necessarily reflect the ultimate country 7. Includes New Zealand, Liberia, and international and regional organizations. risk or exposure of U.S. banks. More complete data on the country risk exposure of U.S. banks are available in the quarterly Country Exposure Lending Survey published by the Federal Financial Institutions Examination Council. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A58 International Statistics • May 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 52,979r 2 Payable in dollars 33,903 39,542 41,543 40,026 38,410 36,668 34,030 36,032 36,296r 3 Payable in foreign currencies 12,545 22,240 15,839 11,407 10,869 9,902 12,633 13,305 16,683r By type 4 Financial liabilities 24,241 33,049 26,877 22,322 19,331 19,255 22,458 25,058 27,422r 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 15,191r 7 Commercial liabilities 22,207 28,733 30,505 29,111 29,948 27,315 24,205 24,279 25,557r 8 Trade payables 11,013 12,720 10,904 9,537 10,276 10,978 9,999 10,935 12,65 lr y 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 24,065r ii Payable in foreign currencies 1,207 1,104 1,592 1,073 1,350 1,018 1,400 1,452 1,492 By area or country Financial liabilities 12 Europe 15,622 23,179 18,027 15,468 12,905 12,589 16,098 19,578 21,695 13 Belgium and Luxembourg 369 632 186 75 150 79 50 70 50 14 France 999 1,091 1,425 1,699 1,457 1,097 1,178 1,287 1,675 15 Germany 1,974 1,834 1,958 2,441 2,167 2,063 1,906 1,959 1,712 16 Netherlands 466 556 494 484 417 1,406 1,337 2,104 2,066 17 Switzerland 895 699 561 189 179 155 141 143 133 18 United Kingdom 10,138 17,161 11,667 8,765 6,610 5,980 9,729 13,097 15,096 19 Canada 632 1.401 2,374 539 389 693 781 320 344 20 Latin America and Caribbean 1,783 1,668 1,386 1,320 11,,335511 1,495 11,,552288 11,,336699 11,,118800 21 Bahamas 59 236 141 6 11 7 11 11 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 3,622r 28 Japan 5,436 5,869 4,102 3,869 3,754 3,612 3,337 3,035 3,384r 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 All other1 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 9,265r 34 Belgium and Luxembourg 331 479 666 557 623 278 229 189 128 35 France 481 680 764 612 740 920 654 656 620r 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 l,957r 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 120r 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 10,428r 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 2,618r 51 Africa 619 1,040 874 921 810 794 727 832 959r 52 Oil-exporting countries2 254 532 408 354 372 393 377 392 584 53 Other3 687 840 1,086 1,101 1,245 1,141 1,261 1,346 1,195 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A59 3.23 CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1998 1999 Type of claim, and area or country 11999955 11999966 11999977 June Sept. Dec. Mar. June Sept. 1 Total 52,509 65,897 68,128 63,188 67,976 77,462 69,054r 63,884r 67,566r 2 Payable in dollars 48,711 59,156 62,173 57,587 62,034 72,171 64,026r 57,006r 60,456r 3 Payable in foreign currencies 3,798 6,741 5,955 5,601 5,942 5,291 5,028r 6,878r 7,110 By type 4 Financial claims 27,398 37,523 36,959 32,341 37,262 46,260 38,217r 31,957r 33,877r 5 Deposits 15,133 21,624 22,909 14,762 15,406 30,199 18,686 13,350 15.192' 6 Payable in dollars 14,654 20,852 21,060 13,084 13,374 28,549 17,101 11,636 13,240r 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 19,531r 18,607r 18,685r 9 Payable in dollars 10,976 12,374 11,806 14,904 19,867 14,049 17,457r 14,800r 15,718r 10 Payable in foreign currencies 1,289 3,525 2,244 2,675 1,989 2,012 2,074'' 3,807r 2,967 11 Commercial claims 25,111 28,374 31,169 30,847 30,714 31,202 30,837 31,927 33,689r 12 Trade receivables 22,998 25,751 27,536 26,764 26,330 27,202 26,724 27,791 29,397r 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 31,498r 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 12,881r 13,978r 13,878r 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 l,212r 2 1 0 9 N G e e t r h m e a rl n a y n ds 4 5 3 1 6 7 4 2 9 7 3 6 4 6 2 7 7 7 9 2 7 9 5 0 3 8 5 6 9 7 3 8 0 7 4 5 9 3 9 02 3 r 93697 1' 1, 5 0 4 67 9 r 21 Switzerland 498 474 434 403 409 414 530 504 559 22 United Kingdom 4,303 7,922 10,337 9,639 9,849 7,766 8,400r 8,63 lr 8,157r 23 Canada 2,851 3,442 3,313 3,020 4,090 2,503 3,111 2,828 3,172r 24 Latin America and Caribbean 14,500 20,032 15,543 11,967 15,758 27,714 18,825 11,486 12,749r 25 Bahamas 11,,996655 1,553 2,308 1,306 2,105 403 666 467 755 26 Bermuda 8811 140 108 48 63 39 41 39 524r 27 Brazil 830 1,468 1,313 1,394 710 835 1,112 1,102 1,265 28 British West Indies 10,393 15,536 10,462 7,349 10,960 24,388 14,621 7,393 7,263r 29 Mexico 554 457 537 1,089 1,122 1,245 1,583 1,702 1,791 30 Venezuela 32 31 36 57 50 55 72 71 47 31 Asia 1,579 2,221 2,133 2,376 2,121 3,027 2,648 2,801 3,205 32 Japan 871 1,035 823 886 928 1,194 942 949 1,250 33 Middle Eastern oil-exporting countries 3 22 11 12 13 9 8 5 5 34 Africa 276 174 319 155 157 159 174 228 251 5 14 15 15 16 16 26 5 12 35 Oil-exporting countries- 583 569 652 732 663 563 578 636 622 36 All other3 Commercial claims 9,824 10,443 12,120 12,882 13,029 13,246 12,782 12,961 14,367r 37 Europe 231 226 328 216 219 238 281 286 289 38 Belgium and Luxembourg 1,830 1,644 1,796 1,955 2,098 2,171 2,173 2,094 2,375r 39 France 1,070 1,337 1,614 1,757 1,502 1,822 1,599 1,660 l,944r 40 Germany 452 562 597 492 463 467 415 389 617 41 Netherlands 520 642 554 418 546 483 367 385 714 42 Switzerland 2,656 2,946 3,660 4,664 4,681 4,769 4,529 4,615 4,789 43 United Kingdom 44 Canada 1,951 2,165 2,660 2,779 2,291 2,617 2,983 2,855 2,638 45 Latin America and Caribbean 4,364 5,276 5,750 6,082 5,773 6,296 5,930 6,278 5,879r 46 Bahamas 30 35 27 12 39 24 10 21 29 4 4 7 8 B B r e a r z m il u da 2 8 7 9 2 8 1, 2 3 7 0 5 3 1, 2 1 4 6 4 2 1, 3 1 5 8 9 3 1,0 1 6 7 2 3 1, 5 0 3 2 6 4 5 9 0 3 0 6 5 8 8 8 3 7 15469 3' 49 British West Indies 79 190 109 110 91 104 117 127 157 50 Mexico 993 1,128 1,392 1,462 1,356 1,545 1,431 1,478 1,613 51 Venezuela 285 357 576 585 566 401 361 384 365 52 Asia 7,312 8,376 8,713 7,367 7,190 7,192 7,080 7,690 8,579r 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 1,479r 55 Africa 654 746 680 657 740 711 685 738 682r 56 Oil-exporting countries 87 166 119 116 128 165 116 202 221 57 Other3 1,006 1,368 1,246 1,080 1,691 1,140 1,377 1,405 1,544 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • May 2000 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2000 1999 2000 Transaction, and area or country 1998 1999 Jan.- Jan. My Aug. Sept. Oct. Nov. Dec. Jan.? U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192 2,340,659 263,990 187,705 178,051 175,193 218,983 240,329 256,414 263,990 2 Foreign sales 1,524,203 2,233,137 253,447 179,386 165,889 171,908 211,213 221,911 247,460 253,447 3 Net purchases, or sales (-) 49,989 107,522 10,543 8,319 12,162 3,285 7,770 18,418 8,954 10,543 4 Foreign countries 50,369 107,578 10,501 8,364 12,179 3,282 7,796 18,393 8,983 10,501 5 Europe 68,124 98,060 15,702 6,183 9,511 7,196 7,760 10,695 13,283 15,702 6 France 5,672 3,813 -233 -57 254 91 1,020 -369 66 -233 V Germany 9,195 13,410 5,622 -334 1,309 114 1,719 2,467 1,587 5,622 8 Netherlands 8,249 8,083 -263 403 564 -539 159 1,375 1,640 -263 9 Switzerland 5,001 5,650 2,917 -2,809 814 1,194 -1,418 384 1,495 2,917 10 United Kingdom 23,952 42,902 2,247 8,491 4,560 4,786 3,836 3,966 3,080 2,247 11 Canada -4,689 -335 613 143 -7 -931 543 -958 -940 613 12 Latin America and Caribbean 757 5,187 -4,855 2,933 841 -4,693 -3,162 7,746 -4,735 -4,855 13 Middle East1 -1,449 -1,068 677 -273 170 -25 -14 -1,197 465 677 14 Other Asia -12,351 4,447 -1,965 -670 1,643 1,438 2,386 2,350 752 -1,965 15 Japan -1,171 5,723 -1,923 -452 1,269 2,652 1,695 630 211 -1,923 16 Africa 639 372 151 14 -39 61 -23 1 -18 151 17 Other countries -662 915 178 34 60 236 306 -244 176 178 18 Nonmonetary international and regional organizations -380 -56 42 -45 -17 3 -26 25 -29 42 BONDS2 19 Foreign purchases 905,782 856,429r 78,539 76,427 65,007 76,263 80,926 74,940 56,928r 78,539 20 Foreign sales 727,044 602,109 59,066 47,982 46,661 48,902 55,120 50,839 41,321 59,066 21 Net purchases, or sales (-) 178,738 254,320r 19,473 28,445 18,346 27,361 25,806 24,101 15,607r 19,473 22 Foreign countries 179,081 254,722r 19,478 28,171 18,373 27,030 26,670 24,172 15,626r 19,478 23 Europe 130,057 140,299r 9,783 18,194 11,105 13,719 14,376 11,639 7,500r 9,783 24 France 3,386 1,870 -114 447 160 24 52 53 269 -114 25 Germany 4,369 7,723 -618 1,707 31 752 1,203 1,327 -228 -618 26 Netherlands 3,443 2,446 -23 336 144 279 103 133 183 -23 27 Switzerland 4,826 4,553 -47 705 322 496 360 429 462 -47 28 United Kingdom 99,637 105,969r 10,024 13,580 8,643 9,761 10,668 9,241 6,040r 10,024 29 Canada 6,121 6,043 2,133 -22 286 908 271 1,506 961 2,133 30 Latin America and Caribbean 23,938 60,861 4,655 5,076 5,561 5,488 6,396 6,652 4,094 4,655 31 Middle East1 4,997 1,979 -86 -182 -219 257 178 -506 309 -86 32 Other Asia 12,662 42,842 2,243 4,695 1,179 6,698 4,847 4,566 2,591 2,243 33 Japan 8,384 17,541 733 3,684 827 4,375 2,081 2,297 1,437 733 34 Africa 190 1,411 677 122 59 -189 343 146 257 677 35 Other countries 1,116 1,287 73 288 402 149 259 169 -86 73 36 Nonmonetary international and regional organizations -343 -402 -5 274 -27 331 -864 -71 -19 -5 Foreign securities 37 Stocks, net purchases, or sales (-) 6,227 15,643 1,095 -2,198 598 825 -8,206 3,816 -1,504 1,095 38 Foreign purchases 929,923 1,177,304 134,790 106,244 91,801 97,384 96,523 129,534 125,954 134,790 39 Foreign sales 923,696 1,161,661 133,695 108,442 91,203 96,559 104,729 125,718 127,458 133,695 40 Bonds, net purchases, or sales (-) -17,350 -5,676 -3,523 -4,777 -6,421 1,132 -1,320 -512 3,872 -3,523 41 Foreign purchases 1,328,281 798,267 62,161 63,975 70,061 66,661 62,533 59,650 52,227 62,161 42 Foreign sales 1,345,631 803,943 65,684 68,752 76,482 65,529 63,853 60,162 48,355 65,684 43 Net purchases, or sales (—), of stocks and bonds .... -11,123 9,967 -2,428 -6,975 -5,823 1,957 -9,526 3,304 2,368 -2,428 44 Foreign countries -10,778 9,682 -2,588 -7,066 -6,006 2,027 -9,532 3,496 2,210 —2,588 45 Europe 12,632 59,247 741 -3,747 -1,814 2,224 2,202 2,238 5,001 741 46 Canada -1,901 -999 -471 -1,038 528 301 315 -1,671 1,342 -471 47 Latin America and Caribbean -13,798 -4,726 -4,868 453 -312 581 -1,950 6,403 524 -4,868 48 -3,992 -42,961 1,963 -3,329 -4,304 -429 -9,603 -4,048 -4,945 11,,996633 49 Japan -1,742 -43,637 866 -4,323 -4,805 -565 -10,006 -4,453 -3.596 886666 50 Africa -1,225 713 99 -21 4 -116 63 160 535 99 51 Other countries -2,494 -1,592 -52 616 -108 -534 -559 414 -247 -52 52 Nonmonetary international and regional organizations -345 285 160 91 183 -70 6 -192 158 160 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 2000 1999 2000 AArreeaa oorr ccoouunnttrryy 11999988 11999999 Jan.- July Aug. Sept. Oct. Nov. Dec. Jan.p Jan. 1 Total estimated 49,039 -9,953 8,116 -6,236 19,118 90 -9,733 -3,615 4,642 8,116 2 Foreign countries 46,570 -10,518 8,151 -6,220 18,847 -1 -9,904 -3,802 4,566 8,151 3 Europe 23,797 -38,228 -974 -5,739 1,771 -9,265 -405 8,643 -5,533 -974 4 Belgium and Luxembourg 3,805 -81 731 37 105 12 -351 -357 -798 731 5 Germany 144 2,285 1,706 643 1,438 -963 78 510 607 1,706 6 Netherlands -5,533 2,122 806 -1,224 453 -423 130 360 268 806 7 Sweden 1,486 1,699 499 -229 876 -45 -6 369 317 499 8 Switzerland 5,240 -1,761 -3,407 -215 -714 237 365 144 1,403 -3,407 9 United Kingdom 14,384 -20,232 -1,638 1,385 1,934 -3,534 -1,854 5,837 -3,481 -1,638 in Other Europe and former U.S.S.R 4,271 -22,260 329 -6,136 -2,321 -4,549 1,233 1,780 -3,849 329 n Canada 615 7,348 -582 1,382 1,339 1,459 -656 -550 218 -582 17 Latin America and Caribbean -3,662 -7,523 -2,409 698 8,695 3,003 -9,911 -5,417 806 -2,409 13 Venezuela 59 362 54 131 15 10 25 154 -33 54 14 Other Latin America and Caribbean 9,523 1,661 -3,837 -38 1,650 2,982 -1,777 1,362 576 -3,837 15 Netherlands Antilles -13,244 -9,546 1,374 605 7,030 11 -8,159 -6,933 263 1,374 16 27,433 29,359 12,164 -2,319 6,832 5,344 942 -6,630 9,718 12,164 17 Japan 13,048 20,102 1,058 -394 2,913 5,259 344 -4,378 8,263 1,058 18 Africa 751 -3,021 -43 -178 -622 -302 -202 -680 -541 -43 19 Other -2,364 1,547 -5 -64 832 -240 328 832 -102 -5 2n Nonmonetary international and regional organizations 2,469 565 -35 -16 271 91 171 187 76 -35 71 International 1,502 190 -7 -101 233 98 184 125 75 -7 22 Latin American regional 199 666 0 191 175 -9 -1 -4 1 0 MEMO 73 Foreign countries 46,570 -10,518 8,151 -6,220 18,847 -1 -9,904 -3,802 4,566 8,151 74 Official institutions 4,123 -9,861 6,763 -1,773 2,394 -1,714 -1,248 -2,325 4,962 6,763 25 Other foreign 42,447 -657 1,388 -4,447 16,453 1,713 -8,656 -1,477 -396 1,388 Oil-exporting countries 76 Middle East2 -16,554 2,207 2,913 -38 130 401 201 -2,050 --33,,555566 2,913 27 2 0 0 0 1 0 0 0 -1 0 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria. countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • May 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 Oct. Nov. Dec. Jan. Feb. Mar. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 65.09 63.88 64.10 65.60 62.78 60.94 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 1.0779 1.1605 1.8207 1.9688 1.9314 1.8442 1.8057 1.7765 1.7424 5 Canada/dollar 1.3849 1.4836 1.4858 1.4776 1.4674 1.4722 1.4486 1.4512 1.4608 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2775 8.2782 8.2794 8.2792 8.2781 8.2786 7 Denmark/krone 6.6092 6.7030 6.9900 6.9450 7.2019 7.3597 7.3492 7.5725 7.7228 8 European Monetary Union/euro3 n.a. n.a. 1.0653 1.0706 1.0328 1.0110 1.0131 0.9834 0.9643 9 Finland/markka 5.1956 5.3473 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 France/franc 5.8393 5.8995 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 Germany/deutsche mark 1.7348 1.7597 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Greece/drachma 273.28 295.70 306.30 307.71 318.24 326.19 326.86 338.87 346.33 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7696 7.7718 7.7728 7.7791 7.7816 7.7848 14 India/rupee 36.36 41.36 43.13 43.55 43.46 43.52 43.59 43.65 43.64 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. 17 121.06 130.99 113.73 105.97 104.65 102.58 105.30 109.39 106.31 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 9.575 9.416 9.427 9.494 9.427 9.289 ?0 Netherlands/guilder 1.9525 1.9837 n.a. n.a. n.a. n.a. n.a. n.a. n.a. ?1 New Zealand/dollar2 66.25 53.61 52.94 51.42 51.22 50.87 51.27 49.03 49.02 22 Norway/krone 7.0857 7.5521 7.8071 7.7402 7.9367 8.0113 8.0241 8.2374 8.4100 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 1.6757 1.6699 1.6745 1.6757 1.7028 1.7153 75 South Africa/rand 4.6072 5.5417 6.1191 6.1029 6.1424 6.1503 6.1309 6.3209 6.4675 7,6 South Korea/won 947.65 1,400.40 1,189.84 1,205.29 1,176.98 1,136.80 1,130.99 1,129.75 1,116.39 77 146.53 149.41 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 78 Sri Lanka/rupee 59.026 65.006 70.868 71.747 72.040 72.018 73.140 73.552 73.810 79 Sweden/krona 7.6446 7.9522 8.2740 8.1492 8.3586 8.4910 8.4918 8.6480 8.6971 30 Switzerland/franc 1.4514 1.4506 1.5045 1.4896 1.5543 1.5841 1.5903 1.6348 1.6636 31 Taiwan/dollar 28.775 33.547 32.322 31.828 31.794 31.625 30.890 30.806 30.724 3? Thailand/baht 31.072 41.262 37.887 39.416 38.749 38.227 37.380 37.759 37.923 33 163.76 165.73 161.72 165.72 162.05 161.32 164.04 160.00 157.99 34 Venezuela/bolivar 488.39 548.39 606.82 630.75 634.80 644.28 652.81 659.44 666.82 Indexes4 NOMINAL 35 Broad (January 1997 = 100)5 104.44 116.48 116.87 115.88 116.08 116.09 115.95 117.44 117.44 36 Major currencies (March 1973 = 100)6 91.24 95.79 94.07 91.94 92.87 93.23 93.14 95.31 95.64 37 Other important trading partners (January 1997= 100)7 104.67 126.03 129.94 131.06 129.93 129.34 129.14 129.11 128.54 REAL 38 Broad (March 1973 = 100)5 91 33r 99.36r 98.75r 98.02r 98.20 98.14 98.09r 99.33r 100.11 39 Major currencies (March 1973= 100)6 92.25 97.25 96.74 95.01 96.12 96.42 96.64r 99.06r 99.98 40 Other important trading partners (March 1973= 100)7 95.87r 108.52r 107.74r 108.38r 107.23 106.651 106.24r 105.95' 106.58 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 March 31, 1999 August 1999 A64 June 30, 1999 November 1999 A64 September 30, 1999 February 2000 A64 December 31, 1999 May 2000 A64 Terms of lending at commercial banks May 1999 August 1999 A66 August 1999 November 1999 A66 November 1999 February 2000 A66 February 2000 May 2000 A66 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 1999 August 1999 All June 30, 1999 November 1999 A72 September 30, 1999 February 2000 All December 31, 1999 May 2000 All Pro forma balance sheet and income statements for priced service operations March 31, 1999 July 1999 A64 June 30, 1999 October 1999 A64 September 30, 1999 January 2000 A64 Residential lending reported under the Home Mortgage Disclosure Act 1997 September 1998 A64 1998 September 1999 A64 Disposition of applications for private mortgage insurance 1997 September 1998 All 1998 September 1999 A73 Small loans to businesses and farms 1997 September 1998 A76 1998 September 1999 A76 Community development lending reported under the Community Reinvestment Act 1997 September 1998 A79 1998 September 1999 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • May 2000 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, December 31, 1999 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall DDoo tt mm oott ; a s l tic Total Domestic Over 100 Under 100 I Total assets3 5,668,287 4,947,888 3,907,522 3,187,123 1,477,819 282,946 2 Cash and balances due from depository institutions 363,785 249,631 284,021 169,868 64,320 15,444 4 3 Ca C sh a s i h te i m te s m i s n i p n r o p c r e o s c s e s o s f o c f o l c l o ec ll t e io ct n i , o n u n a p n o d s t u e n d p d o e s b te i d ts , d a e n b d it s c urrency and coin 1 n 2 . 2 a , . 5 65 1 7 1 6 9 , , 2 6 2 9 2 8 3 1 7 6 , , 8 2 3 6 6 0 F1 5 Currency and coin n.a. n.a. 43,475 21,576 n.a. 6 Balances due from depository institutions in the United States 34,325 25,210 18,737 1 1 Balances due from banks in foreign countries and foreign central banks n.a. 109,566 7,628 971 1 8 Balances due from Federal Reserve Banks 17,565 17,332 6,776 • MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) 30,950 n.a. 12,123 14,008 4,819 10 Total securities, held to-maturity (amortized cost) and available-for-sale (fair value) 1,028,372 597,306 357,516 73,550 11 U.S. Treasury securities 110,536 73,500 29,417 7,619 12 U.S. government agency and corporation obligations (excludes mortgage-backed securities) 199,332 64,099 9999,,995511 3355,,228822 13 Issued by U.S. government agencies 4,627 2,067 1,829 731 14 Issued by U.S. government-sponsored agencies 194,705 62,032 98,122 34,552 15 Securities issued by states and political subdivisions in the United States 8 5,802 28,251 47,710 12,841 16 General obligations 64,824 19,540 36,051 9,234 17 Revenue obligations 23,314 8,262 11,490 3,562 18 Industrial development and similar obligations 664 449 169 45 19 Mortgage-backed securities (MBS) 448,873 294,009 140,938 13,925 20 Pass-through securities 282,057 191,456 81,261 9,340 21 Guaranteed by GNMA 74,753 n.a. 44,250 n a. 27,010 3,494 22 Issued by FNMA and FHLMC 204,164 145,775 52,571 5,818 23 Privately issued 3,140 1,431 1,680 29 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 166,815 102,553 59,677 4,585 25 Issued or guaranteed by FNMA, FHLMC or GNMA 117,071 69,876 43,077 4,118 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 3,316 2,235 897 184 27 All other mortgage-backed securities 46,429 30,443 15,703 282 28 Other debt securities 144,182 112,998 28,892 2,292 29 Other domestic debt securities n.a. 53,737 28,539 n.a. 30 Foreign debt securities n a. 59,261 353 n.a. 31 Equity securities 36,648 24,449 10,609 1,591 32 Investments in mutual funds and other equity securities with readily determinable fair value 11,563 8,224 2,760 579 33 All other equity securities 25,085 16,225 7,849 1,012 34 Federal funds sold and securities purchased under agreements to resell 225,534 185,433 174,152 134,051 40,127 11,255 35 Total loans and lease-financing receivables, gross 3,454,774 3,174,021 2,329,042 2,048,290 952,282 173,449 36 LESS: Unearned income on loans 3,363 2,647 1,766 1,050 1,241 357 37 Total loans and leases (net of unearned income) 3,451,411 3,171,374 2,327,276 2,047,240 951,042 173,093 38 LESS: Allowance for loan and lease losses 57,465 n.a. 39,152 n.a. 15,743 2,570 39 LESS: Allocated transfer risk reserves 126 n.a. 125 n.a. 1 1 40 EQUALS: Total loans and leases, net 3,393,820 n a. 2,288,000 n.a. 935,298 170,521 Total loans and leases, gross, by category 41 Loans secured by real estate 1,497,156 1,464,622 865,753 833,219 531,857 99,546 4 4 2 3 C Fa o r n m st l r a u n c d t ion and land development 1 3 3 1 4 , , 8 13 3 5 9 1F 1 70 5 , , 0 80 0 7 2 5 1 5 4 , , 5 5 5 6 6 9 1 8 1 , , 5 4 7 6 7 4 44 One- to four-family residential properties 831,426 526,014 257,320 48,092 45 Revolving, open-end loans, extended under lines of credit n.a. 102,302 n.a. 72,424 27,396 2,481 4 4 6 7 Mu A lt l i l fa o m th i e l r y l ( o f a i n v s e or more) residential properties 1 72 5 9 2 , , 1 9 2 1 5 1 I 1 45 2 3 9 , , 5 8 9 6 0 9 22 2 9 0 , , 9 8 2 0 4 9 45 2 , , 6 2 1 3 2 3 48 Nonfarm nonresidential properties T 414,310 T 201,527 183,604 29,180 49 Loans to depository institutions 9 8,521 82,196 95,056 78,731 3,370 95 50 Commercial banks in the United States n.a. n.a. 70,717 70,429 2,992 n.a. 51 Other depository institutions in the United States n.a. n.a. 4,480 4,459 189 n.a. 52 Banks in foreign countries n.a. n.a. 19,859 3,842 189 n.a. 53 Loans to finance agricultural production and other loans to farmers 45,032 44,202 11,215 10,385 17,414 16,403 54 964,892 810,254 762,606 607,967 172,216 30,070 55 U.S. addressees (domicile) n.a. n.a. 620,154 599,794 171,416 n.a. 56 Non-U.S. addressees (domicile) n.a. n.a. 142,452 8,174 800 n.a. 57 Acceptances of other banks 1,250 694 1,168 613 68 13 58 n.a. n.a. 326 322 n.a. n.a. 59 n.a. n.a. 842 290 n.a. n.a. 60 Loans to individuals for household, family, and other personal expenditures (includes 541,293 499,662 314,013 272,382 202,274 25,006 61 199,656 n.a. 114,763 n.a. 81,948 2,945 62 Other (includes single payment and installment) 341,637 n a. 199,250 n.a. 120,326 22,061 63 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 19,579 19,574 12,396 12,390 66,,336600 824 64 All other loans 135,595 106,875 126,555 97,835 8,195 845 65 Loans to foreign governments and official institutions n.a. n a. 8,492 1,649 15 n.a. 66 n.a. n a. 118,062 96,186 8,180 n.a. 67 Loans for purchasing and carrying securities n .a. n.a. n.a. 18,703 1,875 n.a. 68 All other loans (excludes consumer loans) n.a. n.a. n.a. 77,483 6,305 n.a. 69 151,456 145,942 140,282 134,768 10,528 646 7 7 1 0 Premises and fixed assets (including capitalized leases) 25 7 7 2 , , 2 9 0 7 8 3 F 1 2 4 5 4 6, , 5 9 4 5 1 9 F1 22,4 6 7 4 7 8 5,537 1 72 Other real estate owned 3,040 n.a. 1,590 n.a. 1,130 320 73 Investments in unconsolidated subsidiaries and associated companies 8,891 1 8,412 I 403 75 74 Customers' liability on acceptances outstanding 8,923 I 8,686 • 232 5 75 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. 18,927 n.a. 18,927 n.a. n.a. 76 Intangible assets 94,778 n.a. 79,481 n.a. 14,439 858 77 All other assets 210,963 n.a. 164,372 n.a. 41,230 5,362 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A65 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, December 31, 1999 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 IItteemm TToottaall DDoo tt mm oott ee aa ss ll ttiicc Total Domestic Over 100 Under 100 78 Total liabilities, limited-life preferred stock, and equity capital 5,668,287 n.a. 3,907,522 n.a. 1,477,819 282,946 79 Total liabilities 5,197,743 4,477,345 3,598,507 2,878,108 1,345,499 253,738 80 Total deposits 3,802,488 3,147,113 2,491,757 1,836,382 1,070,445 240,286 81 Individuals, partnerships, and corporations 3,389,214 2,922,278 2,180,449 1,713,513 991,989 216,777 82 U.S. government n.a. 7,487 n.a. 6,538 803 146 83 States and political subdivisions in the United States n.a. 150,457 n.a. 70,071 61,314 19,073 84 Commercial banks in the United States 78,761 30,266 71,200 22,705 6,380 1,182 85 Other depository institutions in the United States n.a. 9,132 n a. 4,290 3,376 1,467 86 Foreign banks, governments, and official institutions 142,136 10,897 141,702 10,463 414 20 87 Banks n.a. n.a. 9 3,961 9,384 411 n.a. 88 Governments and official institutions n.a. n.a. 42,742 1,079 3 n.a. 89 Certified and official checks 17,712 16,595 9,919 8,802 6,171 1,622 90 Total transaction accounts 679,329 381,563 229,303 68 463 91 Individuals, partnerships, and corporations 578,521 319,989 199,105 59,427 92 U.S. government 2,101 1,615 416 70 93 States and political subdivisions in the United States 46,716 21,535 18,247 6,934 94 Commercial banks in the United States 23,868 19,285 4,275 309 95 Other depository institutions in the United States 3,299 2,518 700 81 96 Foreign banks, governments, and official institutions 8,230 7,820 390 19 97 Banks n.a. 7,103 388 n.a. 98 Governments and official institutions n.a. 717 3 n a. 99 Certified and official checks 16,595 8,802 6,171 1,622 100 Demand deposits (included in total transaction accounts) 519,861 332,642 151,406 35,812 101 Individuals, partnerships, and corporations 445,588 278,920 134,221 32,448 102 U.S. government 1,856 1,442 357 58 103 States and political subdivisions in the United States 20,453 13,861 5,313 1,279 104 Commercial banks in the United States n.a. 23,863 n.a. 19,283 4,271 308 105 Other depository institutions in the United States 3,280 2,518 683 79 106 Foreign banks, governments, and official institutions 8,226 7,818 390 18 107 Banks n.a. 7,103 388 n a. 108 Governments and official institutions n.a. 715 3 n.a. 109 Certified and official checks 16,595 8,802 6,171 1,622 110 Total nontransaction accounts 2,467,784 1,454,819 841,142 171,823 111 Individuals, partnerships, and corporations 2,343,758 1,393,524 792,884 157,350 112 U.S. government 5,386 4,923 387 76 113 States and political subdivisions in the United States 103,741 48,536 43,066 12,139 114 Commercial banks in the United States 6,398 3,420 2,105 873 115 Other depository institutions in the United States 5,833 1,772 2,676 1,385 116 Foreign banks, governments, and official institutions 2,668 2,644 24 0 11/ Banks n.a. 2,282 23 n.a. 118 Governments and official institutions n.a. 362 1 n.a. 119 Federal funds purchased and securities sold under agreements to repurchase 436,955 415,719 342,515 321,279 90,640 3,801 120 Demand notes issued to the U.S. Treasury 47,461 47,461 42,805 42,805 4,517 139 121 Trading liabilities 186,871 n.a. 186,783 n.a. 88 1 122 Other borrowed money 48' ),222 452,302 331,610 294,691 150,546 7,065 123 Banks' liability on acceptances executed and outstanding 9,016 6,596 ,779 6,359 232 5 124 Notes and debentures subordinated to deposits 75,808 n.a, 71,091 n.a. 4,694 23 125 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. 143,854 n.a. 143,854 n.a. n.a. 126 All other liabilities 149,922 n.a. 123,168 n.a. 24,337 2,418 127 Total equity capital 470,544 n.a. 309,015 n.a. 132,320 29,208 MEMO 128 Trading assets at large banks4 256,928 105,507 256,431 105,010 498 129 U.S. Treasury securities (domestic offices) < • 13,384 13,374 10 130 U.S. government agency corporation obligations 4,184 4,051 133 131 Securities issued by states and political subdivisions in the United States n a. 750 n a. 696 53 132 Mortgage-backed securities 4,865 4,774 91 n.a. 133 Other debt securities 11,044 11,042 2 134 Other trading assets 10,882 10,758 123 135 Trading assets in foreign banks 151,421 0 151,421 0 0 136 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 60,400 60,400 60,313 60,313 86 137 Total individual retirement (IRA) and Keogh plan accounts 148,124 78,687 57,271 12,166 138 Total brokered deposits 95,547 58,969 32,650 3,928 139 Fully insured brokered deposits 68,038 34,235 30,048 3,755 140 Issued in denominations of less than $100,000 1122,,115555 44,,889988 55,,999988 1,259 141 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. 55,883 n. a. 29,337 24,050 2,496 142 Money market deposit accounts (MMDAs) 835,791 582,061 225,978 27,751 143 Other savings deposits (excluding MMDAs) 420,736 254,540 143,918 22,278 144 Total time deposits of less than $100,000 739,254 341,423 312,002 85,828 145 Total time deposits of $100,000 or more 472,003 276,794 159,244 35,966 146 All negotiable order of withdrawal (NOW) accounts 152,448 44,126 76,386 31,936 147 Number of banks ,557 8,557 160 n.a. 2,943 5,454 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) foreign offices, the inapplicability of certain items to banks that have only domestic offices or "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were the absence of detail on a fully consolidated basis for banks that have foreign offices. less than $100 million. (These banks file the FFIEC 034 Call Report.) 1. All transactions between domestic and foreign offices of a bank are reported in "net due 3. Because the domestic portion of allowances for loan and lease losses and allocated from" and "net due to" lines. All other lines represent transactions with parties other than the transfer risk reserves are not reported for banks with foreign offices, the components of total domestic and foreign offices of each bank. Because these intraoffice transactions are nullified assets (domestic) do not sum to the actual total (domestic). by consolidation, total assets and total liabilities for the entire bank may not equal the sum of 4. Components of "Trading assets at large banks" are reported only by banks with either assets and liabilities respectively of the domestic and foreign offices. total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and off-balance-sheet derivative contracts. possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corporations wherever located; and IBFs. 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • May 2000 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Feb. 7-11, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 W a e v i e g r h a t g e e d - Amount of Average loan W a e v i e g r h a t g e e d - Amount of loans (percent) effective loans size maturity- ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s s ) of Days S c e o c l u la re te d r a b l y p S re u p p b e a n je y a c m l t t y e t n o t c M om ad m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 7.44 117,861 728 375 43.8 10.9 32.5 2 Minimal risk 6.47 16,743 2,723 219 73.3 6.7 82.2 3 Low risk 6.87 21,029 1,435 329 18.1 13.4 34.8 69.2 4 Moderate risk 7.54 38,110 700 509 39.2 10.1 26.7 76.7 5 Other 8.24 23,376 505 380 41.9 12.0 16.9 69.8 By maturity/repricing interval6 6 Zero interval 8.64 19,753 353 459 54.7 14.6 3.5 71.1 7 Minimal risk 7.99 559 447 562 44.0 31.3 22.8 97.5 8 Low risk 8.33 2,130 519 535 32.8 16.0 11.3 93.7 9 Moderate risk 8.49 7,672 339 441 62.3 13.3 1.6 97.5 10 Other 9.32 3,972 187 597 76.8 30.7 1.7 87.8 11 Daily 6.84 54,728 1,321 170 42.9 9.4 41.6 69.6 12 Minimal risk 6.17 12,205 16,152 74 84.9 3.5 94.6 99.5 13 Low risk 6.60 11,904 5,873 209 12.7 13.8 39.3 55.6 14 Moderate risk 6.98 14,630 1,147 261 25.9 11.1 28.5 65.4 15 Other 7.60 6,867 771 29.5 7.7 3.9 42.0 16 2 to 30 days 7.42 25,414 1,315 456 31.1 41.2 84.2 17 Minimal risk 6.88 2,638 2,096 502 41.6 59.5 99.7 18 Low risk 6.69 4,362 2,334 333 14.5 6.8 42.6 90.8 19 Moderate risk 7.31 9,882 1,497 587 29.0 5.3 46.1 84.7 20 Other 8.28 7,001 900 400 34.7 3.9 24.7 77.4 21 31 to 365 days 7.67 12,407 500 37.9 9.8 30.1 80.2 22 Minimal risk 7.70 933 461 53.0 16.5 54.4 92.0 2 2 4 3 M Lo o w d e r r i a s t k e risk 7 7 . . 0 5 7 9 2 3 , , 2 6 2 5 5 4 5 58 9 7 6 4 7 9 9 2 5 4 3 0 1 . . 4 8 2111..10 2 3 3 4 . . 4 9 7 79 7 . . 2 9 25 Other 8.05 4,532 1,071 29.4 3.5 30.5 79.8 26 More than 365 days 8.81 4,013 238 82.8 26.6 15.5 53.1 27 Minimal risk . . . 7.80 374 466 11.4 83.8 1.3 87.8 28 Low risk 7.93 139 60.8 16.4 7.1 60.0 29 Moderate risk .. 9.16 415 94.4 2.3 2.3 27.2 30 Other 9.03 259 94.4 70.5 73.3 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 2,782 3.3 159 85.3 29.8 3.8 78.3 32 100-999 11,169 3.2 146 73.6 19.5 11.3 86.1 33 1,000-9,999 7.83 35,661 3.0 44.5 13.2 26.9 81.0 34 10,000 or more 6.90 68,249 2.5 36.8 7.5 40.0 68.0 BASE RATE OF LOAN4 35 Prime7 9.27 23,612 3.2 123 73.7 22.4 2.8 77.5 36 Fed funds 6.64 31,663 2.8 9 29.5 8.9 17.9 46.0 37 Other domestic 6.73 13,666 2.4 37 9.7 20.3 70.6 71.9 38 Foreign 7.13 35,416 2.4 35 50.5 2.5 57.4 94.5 39 Other 7.61 13,503 3.1 231 41.8 8.1 14.2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A67 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Feb. 7-11, 2000 B. Commercial and industrial loans made by all domestic banks1 Weighted- Amount of loans (percent) Weighted- Amount of Average loan average average loans size maturity3 ( l e p o f e a f r e n c c e t r i n a v t t e e ^ , o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u l r a e te d r a b l y p S re u p p b e a n je y a c m l t t y e t n o t c M o a m d m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 7.84 69,934 456 599 45.0 15.9 26.4 78.6 2 Minimal risk 6.62 5,604 1,184 371 34.9 17.5 56.5 96.6 3 Low risk 7.00 12,370 905 548 23.6 22.1 37.9 80.6 4 Moderate risk 7.81 28,322 543 45.7 12.6 28.6 82.8 5 Other 8.84 12,530 288 64.9 19.1 18.7 84.2 By maturity/repricing interval6 6 Zero interval 8.64 19,249 446 54.2 15.0 3.5 71.0 7 Minimal risk 7.99 559 447 562 44.0 31.3 22.8 97.5 8 Low risk 8.33 2,127 520 536 32.7 15.9 11.4 93.9 9 Moderate risk 8.48 7,581 339 439 62.5 13.5 1.3 97.5 10 Other 9.39 3,562 170 525 76.7 34.2 1.9 11 Daily 7.21 24,178 616 396 36.5 19.4 40.8 78.5 12 Minimal risk 6.32 3,281 5,469 272 45.8 12.9 82.2 98.2 13 Low risk 6.54 5,545 3,278 427 15.3 27.9 55.5 73.8 14 Moderate risk 7.25 8,819 723 452 32.2 17.3 44.7 73.2 15 Other 8.01 3.046 364 205 47.4 9.8 4.7 59.2 16 2 to 30 days 7.65 14,793 907 695 34.3 7.8 38.3 94.3 17 Minimal risk 6.26 937 1,473 251 3.9 1.7 18.4 99.1 18 Low risk 6.79 2,594 1,742 550 20.0 11.5 38.3 92.5 19 Moderate risk 7.46 7.047 1,224 812 30.6 5.6 45.1 94.0 20 Other 9.06 3,474 511 771 59.2 6.5 38.1 95.9 21 31 to 365 days 7.63 6,910 309 836 46.3 12.6 23.9 80.0 22 Minimal risk 6.74 419 302 552 22.2 4.0 38.9 84.7 23 Low risk 6.92 1,697 489 607 35.7 27.5 20.5 72.6 24 Moderate risk 7.71 2,603 458 1,067 45.1 12.5 32.0 79.8 25 Other 8.59 1,446 432 970 65.4 1.9 21.0 91.4 26 More than 365 days 8.82 4,011 238 82.9 15.5 53.1 27 Minimal risk . . . 7.80 374 466 11.4 1.3 87.8 28 Low risk 7.93 139 60.8 16.4 7.1 60.0 29 Moderate risk . . 9.16 415 94.4 2.3 2.3 27.2 30 Other 9.04 259 94.7 70.7 73.2 86.7 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 3 3 1 2 1 1 0 -9 0 9 - 999 9 8 . . 6 9 5 9 9 2 , , 7 7 7 4 6 2 3 3 . . 2 3 116612 7 8 7 5 . . 1 9 2 2 0 9 . . 2 8 3 7. . 4 6 7 85 8 . . 4 2 33 1,000-9,999 8.09 24,261 3.1 106 49.6 15.8 22.9 83.1 34 10,000 or more 7.18 33,155 2.6 83 28.8 13.5 36.4 73.4 BASE RATE OF LOAN4 35 Prime7 9.23 21,726 3.2 131 75.5 19.7 2.8 75.6 36 Fed funds 6.51 10,131 2.4 13 41.2 22.9 27.2 55.1 37 Other domestic 6.67 11,376 2.4 44 8.0 23.9 65.4 86.3 38 Foreign 7.78 14,440 3.0 56 36.4 4.8 39.4 87.7 39 Other 7.65 12,262 3.0 252 38.6 8.9 15.6 85.6 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • May 2000 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Feb. 7-11, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Weighted- Amount of loans (percent) e a f v f e e r c a ti g v e e Am l o o u an n s t of Avera si g z e e loan m a a v t e u r r a i g t e y 3 ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s s ) of Days S c e o c l u la re te d r a b l y p S re u p p b e a n je y a c m l t t y e t n o t c M o a m d m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 7.68 60,966 853 564 40.0 13.0 28.3 78.0 2 Minimal risk 6.54 5,206 4,844 346 33.4 18.1 59.7 98.9 3 Low risk 6.81 11,136 3,018 17.7 20.2 41.6 81.2 4 Moderate risk 7.69 25,109 1,020 672 42.0 10.6 30.5 82.8 5 Other 8.67 9,957 414 594 57.5 10.6 16.7 82.3 By maturity/repricing interval6 6 Zero interval 16,094 673 424 49.0 8.1 3.8 67.6 7 Minimal risk 7.94 500 1,759 574 41.6 31.8 25.1 100.0 8 Low risk 8.18 1,607 1,583 400 19.4 5.7 13.3 98.3 9 Moderate risk 8.35 6,437 615 412 59.8 7.7 1.1 99.1 10 Other 9.09 2,409 239 561 69.3 21.2 2.3 88.4 11 Daily 7.12 23,127 743 375 34.3 19.3 42.5 77.9 12 Minimal risk 6.28 3,241 10,561 272 45.2 12.8 83.2 98.3 13 Low risk 6.49 5,445 4,007 416 14.4 28.4 56.5 73.4 14 Moderate risk 7.14 8,319 949 409 28.9 16.9 47.0 72.4 15 Other 7.90 2,878 464 190 44.7 8.9 4.7 57.2 16 2 to 30 days 7.62 13,398 1,442 736 32.0 5.0 39.3 94.0 17 Minimal risk 6.23 910 7,691 248 1.2 1.3 18.2 99.9 18 Low risk 6.68 2,425 3,316 577 15.5 6.6 40.9 92.1 19 Moderate risk 7.45 6,361 2,154 861 29.7 4.0 44.9 93.5 20 Other 9.09 3,256 662 789 57.4 5.6 38.4 96.3 21 31 to 365 days 7.49 5,743 1,685 901 42.6 13.2 25.0 81.7 22 Minimal risk 6.66 201 1,003 401 12.8 6.1 57.6 99.8 23 Low risk 6.71 1,490 3,883 642 31.5 27.2 21.6 72.2 24 Moderate risk 7.55 2,322 2,454 1,163 40.9 13.2 33.3 82.4 25 Other 8.56 1,225 845 934 61.5 1.7 18.3 92.6 26 More than 365 days 8.62 2,266 1,332 72.7 16.4 4.6 47.8 27 Minimal risk . . . 7.66 326 2,335 .3 96.3 1.5 99.8 28 Low risk 6.79 156 1,552 10.5 22.1 16.7 92.9 29 Moderate risk . . 9.14 1,472 2,631 93.4 .4 2.4 23.5 30 Other 8.61 119 210 71.8 14.3 31.4 68.2 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Davs SIZE OF LOAN (thousands of dollars) 31 1-99 9.51 1,253 3.5 87.4 6.1 86.0 32 100-999 8.90 6,520 3.4 73.3 8.2 88.7 33 1,000-9,999 8.01 20,616 3.0 45.4 9.3 22.9 82.2 34 10,000 or more 7.16 32,576 2.6 28.2 13.2 36.4 73.0 BASE RATE OF LOAN4 35 Prime7 9.13 17,049 3.1 126 72.8 13.5 3.3 73.7 36 Fed funds 6.44 9,615 2.4 4 38.8 20.1 28.2 52.7 37 Other domestic 6.66 11,293 2.4 40 7.4 24.0 65.8 86.9 38 Foreign 7.80 13,291 3.0 47 36.0 4.5 38.4 86.9 39 Other 7.41 9,717 3.0 69 27.2 3.6 13.9 88.3 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A69 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Feb. 7-11, 2000 D. Commercial and industrial loans made by small domestic banks1 Weighted- Amount of loans (percent) Weighted- Amount of Average loan average average loans size maturity3 ( l e p o f e a f r e n c c e t r n i a v t t ) e e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s s ) of Days S c e o c l u la re te d r a b l y Callable p S re u p p e b a n je y a c m l t t y e t n o t c M om ad m e it u m nd e e n r t LOAN RISK3 1 All commercial and industrial loans 8.93 8,969 109 78.8 35.7 13.8 82.7 2 Minimal risk 7.60 399 109 707 54.4 9.8 15.0 66.3 3 Low risk 8.72 1,235 124 1,082 76.8 39.0 4.5 75.5 4 Moderate risk 8.72 3,213 117 824 74.1 27.9 13.7 83.2 5 Other 9.49 2,573 133 1,055 93.3 52.2 26.0 91.7 By maturity/repricing interval6 6 Zero interval 9.45 3,156 101 616 50.0 2.1 88.3 7 Minimal risk 8.37 60 62 446 63.9 26.9 3.7 76.5 8 Low risk 8.80 520 169 1,206 73.8 47.7 5.2 80.2 9 Moderate risk 9.17 1,144 96 632 77.4 45.8 2.3 88.7 10 Other 10.02 1,154 107 92.0 61.5 1.0 92.7 11 Daily 9.26 1,051 130 836 84.7 20.8 91.0 12 Minimal risk 9.45 40 137 273 96.2 22.0 88.8 13 Low risk 9.29 100 301 961 62.5 1.8 97.3 14 Moderate risk 9.10 500 146 1,166 88.2 24.4 5.0 86.8 15 Other 9.77 168 78 454 92.6 25.6 3.5 92.7 16 2 to 30 days 7.92 1,395 199 256 55.9 35.0 28.9 96.9 17 Minimal risk 7.50 27 52 359 94.6 15.2 25.3 72.2 18 Low risk 8.43 169 223 84.4 81.7 .1 98.0 19 Moderate risk 7.53 686 245 38.3 20.1 47.0 99.1 20 Other 8.62 218 116 85.8 19.8 32.9 21 31 to 365 days 8.35 1,166 61 521 64.3 9.6 18.7 71.6 22 Minimal risk 6.81 218 184 682 31.0 2.0 23.4 70.8 23 Low risk 8.50 207 67 317 65.7 29.6 12.7 76.0 24 Moderate risk 9.00 280 59 348 80.2 6.5 21.4 58.1 25 Other 8.76 221 117 1,172 87.1 2.8 34.8 84.5 26 More than 365 days 9.06 1,745 115 96.2 39.8 60.0 27 Minimal risk ... 8.74 49 73 85.9 .3 8.0 28 Low risk 8.70 232 94.6 12.7 .7 38.0 29 Moderate risk . . 9.24 355 92 98.3 9.8 2.1 42.5 30 Other 9.12 620 271 99.1 81.6 81.1 90.3 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 9.77 1,489 3.1 260 84.6 24.4 1.5 71.7 32 100-999 9.15 3,256 3.0 412 84.7 23.1 5.6 78.6 33 1,000-9,999 8.54 3,645 3.3 465 73.3 52.9 22.4 88.0 34 10,000 or more 7.88 579 2.9 171 65.7 27.4 36.8 100.0 BASE RATE OF LOAN4 35 Prime7 9.58 4,677 3.3 149 85.2 42.1 82.7 36 Fed funds 7.88 516 2.8 182 85.2 75.0 9.2 99.1 37 Other domestic 9.24 83 2.3 560 93.1 11.4 1.5 16.9 38 Foreign 7.48 1,148 3.2 151 41.9 8.2 51.8 96.5 39 Other 8.57 2,544 3.0 1,037 82.1 29.2 21.9 75.2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • May 2000 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, Feb. 7-11, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Amount of loans (percent) AAmmoouunntt ooff AAvveerraaggee llooaann IItteemm loans size maturity3 ((ppeerrcceenntt))22 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s) s of S c e o c l u l r a e te d r a b l y Callable p S re u p b a je y c m t e t n o t cc M oo mm d mm e iittmm d ee nn r tt DDaayyss penalty LOAN RISK5 1 All commercial and industrial loans 6.84 47,926 5,620 68 42.0 3.7 41.3 66.9 2 Minimal risk 6.39 11,139 7,864 143 92.6 1.2 95.1 99.9 Low risk 6.69 8,659 8,737 42 10.2 1.1 30.4 53.0 4 Moderate risk 6.78 9,788 4,414 31 20.4 3.1 21.2 58.8 5 Other 7.55 10,846 3,897 84 15.3 3.8 15.0 53.1 By maturity/repricing interval6 6 Zero interval 8.89 504 770 1,051 72.2 .8 4.6 74.9 7 Minimal risk * * * * * * * * 8 Low risk * * * * * * * * 9 Moderate risk 9.75 91 343 626 45.0 1.4 25.4 98.6 10 Other 8.70 410 1,082 1,180 78.1 * .1 70.1 11 Daily 6.56 30,550 13,887 11 48.0 1.5 42.3 62.5 12 Minimal risk 6.11 8,923 57,328 1 99.2 * 99.2 100.0 13 Low risk 6.66 6,359 18,953 40 10.5 1.4 25.1 39.7 14 Moderate risk 6.57 5,811 10,338 1 16.2 1.6 4.1 53.6 15 Other 7.27 3,821 7,081 15 15.2 6.1 3.2 28.3 16 2 to 30 days 7.10 10,621 3,511 135 26.6 1.7 45.1 70.0 1/ Minimal risk 7.22 1,701 2,732 640 62.3 * 82.2 100.0 18 Low risk 6.53 1,768 4,647 27 6.5 * 48.9 88.3 19 Moderate risk 6.92 2,835 3,346 42 24.9 4.7 48.4 61.3 20 Other 7.50 3,527 3,628 46 10.7 1.3 12.2 59.3 21 31 to 365 days 7.71 5,497 2,261 195 27.5 6.3 37.7 80.4 22 Minimal risk 8.48 514 805 1,272 78.0 26.7 66.4 98.0 23 Low risk 7.52 528 1,997 119 19.5 .4 32.5 94.9 24 Moderate risk 7.30 1,051 1,935 127 28.7 7.2 41.9 77.6 25 Other 7.80 3,086 3,478 105 12.5 4.3 34.7 74.4 Months 26 More than 365 days * * * * * * * * 27 Minimal risk * * * * * * * * 28 Low risk * * * * * * * * 29 Moderate risk * * * * * * * * 30 Other * * * * * * * * Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 8.86 40 2.9 39 45.4 28.6 21.4 87.6 32 100-999 8.15 1,393 3.0 37 49.1 14.4 38.4 90.9 33 1,000-9,999 7.28 11,400 2.9 26 33.7 7.5 35.5 76.7 34 10,000 or more 6.64 35,093 2.4 9 44.4 2.0 43.4 62.8 BASE RATE OF LOAN4 35 Prime7 9.74 1,886 3.3 25 52.9 53.6 3.4 99.0 it Fed funds 6.70 21,532 3.1 6 24.0 2.4 13.5 41.7 37 Other domestic 6.99 2,290 2.8 4 18.3 2.6 96.6 * 38 Foreign 6.68 20,977 2.0 21 60.2 .8 69.7 99.2 39 Other 7.30 1,241 3.9 33 73.1 .0 2 33.6 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A71 NOTES TO TABLE 4.23 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions 5. A complete description of these risk categories is available from the Banking Analysis made during the first full business week in the mid-month of each quarter. The authorized Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC panel size for the survey is 348 domestically chartered commercial banks and fifty U.S. 20551. The category "Moderate risk" includes the average loan, under average economic branches and agencies of foreign banks. The sample data are used to estimate the terms of conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as loans extended during that week at all domestic commercial banks and all U.S. branches and well as special mention or classified loans. The weighted-average risk ratings published for agencies of foreign banks. Note that the terms on loans extended during the survey week may loans in rows 31-39 are calculated by assigning a value of "1" to minimal risk loans; "2" to differ from those extended during other weeks of the quarter. The estimates reported here are low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special not intended to measure the average terms on all business loans in bank portfolios. mention and classified loans. These values are weighted by loan amount and exclude loans 1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion. with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26, and 31 -39 are not rated for Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches risk. and agencies averaged 1.3 billion. 6. The maturity/repricing interval measures the period from the date the loan is made until it 2. Effective (compounded) annual interest rates are calculated from the stated rate and first may reprice or it matures. For floating-rate loans that are subject to repricing at any other terms of the loans and weighted by loan amount. The standard error of the loan rate for time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate all commercial and industrial loans in the current survey (line 1, column 1) is 0.16 percentage loans that have a scheduled repricing interval, the maturity/repricing interval measures the number point. The chances are about two out of three that the average rate shown would differ by less of days between the date the loan is made and the date on which it is next scheduled to reprice. For than this amount from the average rate that would be found by a complete survey of the loans having rates that remain fixed until the loan matures (fixed-rate loans), the maturity/repricing universe of all banks. interval measures the number of days between the date the loan is made and the date on which it 3. Average maturities are weighted by loan amount and exclude loans with no stated matures. Loans that reprice daily mature or reprice on the business day after they are made. Owing maturities. to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day; 4. The most common base pricing rate is that used to price the largest dollar volume of such loans are not included in the "2 to 30 day" category. loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or 7. For the current survey, the average reported prime rate, weighted by the amount of "reference" rate); the federal funds rate; domestic money market rates other than the prime loans priced relative to a prime base rate, was 8.26 percent for all banks; 8.25 percent for rate and the federal funds rate; foreign money market rates; and other base rates not included large domestic banks, 8.35 percent for small domestic banks; and 8.19 percent for U.S. in the foregoing classifications. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • May 2000 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1999'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s 1 Total assets4 903,486 154,617 723,502 128,120 29,254 6,841 55,115 5,412 2 Claims on nonrelated parties 734,730 78,459 582,994 69,038 27,803 2,430 53,125 1,017 3 Cash and balances due from depository institutions 97,525 36,588 94,309 35,701 870 233 1,257 443 4 Cash items in process of collection and unposted debits 2,591 0 2,537 0 7 0 17 0 5 Currency and coin (U.S. and foreign) 33 n.a. 24 n.a. 1 n.a. 1 n.a. b Balances with depository institutions in United States 6688,,223333 1155,,000022 6655,,992244 1144,,771133 721 140 767 30 / U.S. branches and agencies of other foreign banks (including IBFs) 55,052 13,582 53,338 13,323 399 140 731 30 8 Other depository institutions in United States (including IBFs) . . . 1133,,118811 11,,442200 1122,,558866 11,,339900 323 0 36 0 y Balances with banks in foreign countries and with foreign central banks 25,492 21,586 24,797 20,988 104 93 425 413 10 Foreign branches of U.S. banks 1,326 1,223 1,298 1,198 0 0 0 0 n Banks in home country and home-country central banks 6,113 5,210 6,090 5,192 18 18 0 0 12 All other banks in foreign countries and foreign central banks .... 18,053 15,153 17,409 14,598 86 75 424 413 13 Balances with Federal Reserve Banks 1,176 n.a. 1,027 n.a. 37 n.a. 48 n.a. 14 Total securities and loans 444,190 37,471 343,318 29,164 26,037 2,136 35,324 534 15 Total securities, book value 120,308 4,712 109,209 4,115 1,314 486 8,599 79 lb U.S. Treasury 2244,,885544 n.a. 21,163 n.a. 66 n.a. 3,613 n.a. 17 Obligations of U.S. government agencies and corporations 4488,,885511 n.a. 4466,,227788 n.a. 228 n.a. 11,,994400 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 46,603 4,712 41,768 4,115 1,020 486 3,047 79 19 Securities of foreign governmental units 11,079 2,634 10,725 2,466 277 128 29 29 20 All Other 35,523 2,078 31,043 1,649 742 357 3,018 50 21 Federal funds sold and securities purchased under agreements to resell 63,811 2,328 55,919 2,303 274 2 7,092 0 22 U.S. branches and agencies of other foreign banks 7,134 1,494 6,904 1,474 112 2 0 0 23 Commercial banks in United States 11,719 269 11,157 264 162 0 1 0 24 Other 44,958 565 37,858 565 0 0 7,091 0 25 Total loans, gross 324,184 32,785 234,317 25,073 24,762 11,,665522 26,745 455 26 LESS: Unearned income on loans 301 26 208 23 39 11 20 0 27 EQUALS: Loans, net 323,882 32,759 234,109 25,049 24,723 1,651 26,725 455 Total loans, gross, by category 28 Real estate loans 16,433 95 11,009 93 3,194 0 446 0 29 Loans to depository institutions 24,694 15,223 16,399 9,814 1,915 1,338 1,172 397 30 Commercial banks in United States (including IBFs) 6,589 2,939 4,998 2,275 1,096 555 65 25 31 U.S. branches and agencies of other foreign banks 5,214 2,700 3,760 2,073 1,060 532 55 15 32 Other commercial banks in United States 1,375 239 1,238 202 36 23 11 10 33 Other depository institutions in United States (including IBFs) 15 0 0 0 0 0 0 0 34 Banks in foreign countries 18,090 12,284 11,400 7,539 820 783 1,107 372 33 Foreign branches of U.S. banks 991 373 960 346 3 0 0 0 3b Other banks in foreign countries 17,099 11,911 10,440 77,,119944 817 783 1,107 372 37 Loans to other financial institutions 53,375 1,208 41,545 889988 1,179 50 3,950 5 38 Commercial and industrial loans 205,030 13,746 144,190 11,921 18,187 240 19,490 49 39 U.S. addressees (domicile) 166,312 223 115,762 223 16,645 0 17,546 0 40 Non-U.S. addressees (domicile) 38,718 13,523 28,427 11,698 1,542 240 1,944 49 41 Acceptances of other banks 641 5 102 5 14 0 522 0 42 U.S. banks 11 0 7 0 3 0 0 0 43 Foreign banks 630 5 95 5 11 0 522 0 44 Loans to foreign governments and official institutions (including foreign central banks) 3,711 2,389 3,091 2,238 154 24 107 4 43 Loans for purchasing or carrying securities (secured and unsecured) . . . 12,865 20 12,095 20 35 0 1 0 46 All other loans 6,656 99 5,664 85 84 0 503 0 47 Lease financing receivables (net of unearned income) 778 0 223 0 0 0 555 0 48 U.S. addressees (domicile) 778 0 223 0 0 0 555 0 49 Non-U.S. addressees (domicile) 0 0 0 0 0 0 0 0 30 Trading assets 90,442 790 57,042 787 71 2 5,755 0 31 All other assets 38,762 1,282 32,406 1,082 551 56 3,696 40 52 Customers' liabilities on acceptances outstanding 11,,446677 n.a. 1,026 n.a. 181 n.a. 216 n.a. 33 U.S. addressees (domicile) 883388 n.a. 644 n.a. 179 n.a. 10 n.a. 34 Non-U.S. addressees (domicile) 630 n.a. 382 n.a. 1 n.a. 206 n.a. 55 Other assets including other claims on nonrelated parties 37,295 1,282 31,380 1,082 370 56 3,480 40 36 Net due from related depository institutions5 168,756 76,158 140,509 59,082 1,450 4,412 1,991 4,395 57 Net due from head office and other related depository institutions5. . . 116688,,775566 n.a. 114400,,550099 n.a. 11,,445500 n.a. 11,,999911 n.a. 58 Net due from establishing entity, head office, and other related depository institutions5 n.a. 76,158 n.a. 59,082 n.a. 4,412 n.a. 4,395 59 Total liabilities4 903,486 154,617 723,502 128,120 29,254 6,841 55,115 5,412 60 Liabilities to nonrelated parties 753,176 134,190 617,267 109,749 13,214 6,713 45,272 5,297 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A73 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1999'—Continued Millions of dollars except as noted ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u t F d a s i l ng I o B n F ly s ex T c IB l o u t F d a s i l ng I o B n F ly s exc T IB l o u t F d a s i l ng I o B n F ly s 61 Total deposits and credit balances 380,028 96,135 307,380 81,081 5,057 1,430 19,469 3,459 62 Individuals, partnerships, and corporations 278,633 11,505 216,094 6,214 2,626 229 17,0m22 15 63 U.S. addressees (domicile) 261,289 0 204,547 0 1,049 0 16, 0 64 Non-U.S. addressees (domicile) 17,345 11,505 11,547 6,214 1,577 229 141 15 65 Commercial banks in United States (including IBFs) 52,163 13,419 46,877 12,673 550 117 969 471 66 U.S. branches and agencies of other foreign banks 23,480 10,724 21,377 10,197 0 92 410 301 67 Other commercial banks in United States 28,683 2,694 25,500 2,476 550 25 559 170 68 Banks in foreign countries 11,973 50,452 11,516 45,833 21 232 151 1,533 69 Foreign branches of U.S. banks 1,266 4,433 1,265 4,158 0 0 0 255 70 Other banks in foreign countries 10,707 46,019 10,251 41,674 21 232 151 1,278 71 Foreign governments and official institutions (including foreign central banks) 18,213 20,651 16,153 16,271 8 837 1,320 1,437 72 All other deposits and credit balances 18,860 108 16,575 91 1,84 8 15 6 2 73 Certified and official checks 185 164 4 1 74 Transaction accounts and credit balances (excluding IBFs) . . . 9,107 7,247 336 273 75 Individuals, partnerships, and corporations 7,261 5,695 306 268 76 U.S. addressees (domicile) 5,255 4,585 98 244 77 Non-U.S. addressees (domicile) 2,005 1,110 108 24 78 Commercial banks in United States (including IBFs) 53 43 0 0 79 U.S. branches and agencies of other foreign banks 16 15 0 0 80 Other commercial banks in United States 36 28 0 0 81 Banks in foreign countries 1,044 851 21 1 82 Foreign branches of U.S. banks 2 1 0 0 83 Other banks in foreign countries 1,042 850 21 1 84 Foreign governments and official institutions (including foreign central banks) 491 428 2 2 85 All other deposits and credit balances 74 65 2 1 86 Certified and official checks 185 164 4 1 87 Demand deposits (included in transaction accounts and credit balances) 8,369 6,750 270 270 88 Individuals, partnerships, and corporations 6,594 5,266 242 265 89 U.S. addressees (domicile) 4,873 4,245 179 241 90 Non-U.S. addressees (domicile) 1,721 1,021 64 24 91 Commercial banks in United States (including IBFs) 49 n a. 40 n.a. 0 n a. 0 n.a. 92 U.S. branches and agencies of other foreign banks 16 15 0 0 93 Other commercial banks in United States 33 25 0 0 94 Banks in foreign countries 1,015 823 21 1 95 Foreign branches of U.S. banks 2 1 0 0 96 Other banks in foreign countries 1,013 822 21 1 97 Foreign governments and official institutions (including foreign central banks) 485 423 2 2 98 All other deposits and credit balances 41 34 1 1 99 Certified and official checks 185 164 4 1 100 Nontransaction accounts (including MMDAs, excluding IBFs) 370,920 300,132 4,721 19,196 101 Individuals, partnerships, and corporations 271,373 210,399 2,319 16,753 102 U.S. addressees (domicile) 256,033 199,962 851 16,636 103 Non-U.S. addressees (domicile) 15,339 10,437 1,4 68 117 104 Commercial banks in United States (including IBFs) 52,110 46 834 550 969 105 U.S. branches and agencies of other foreign banks 23,463 21,362 0 410 106 Other commercial banks in United States 28,647 25,472 550 559 107 Banks in foreign countries 10,929 10,665 0 150 108 Foreign branches of U.S. banks 1,264 1,264 0 0 109 Other banks in foreign countries 9,665 9,401 0 150 110 Foreign governments and official institutions (including foreign central banks) 17,723 15,724 7 1,318 111 All other deposits and credit balances 18,786 16,509 1,8 46 5 112 IBF deposit liabilities 96,135 81,081 1,430 3,459 113 Individuals, partnerships, and corporations 11,505 6,214 229 15 114 U.S. addressees (domicile) 0 0 0 0 115 Non-U.S. addressees (domicile) 11,505 6,214 229 15 116 Commercial banks in United States (including IBFs) 13,419 12,673 117 471 117 U.S. branches and agencies of other foreign banks 10,724 10,197 92 301 118 Other commercial banks in United States n.a. 2,694 n.a. 2,476 n a. 25 n.a. 170 119 Banks in foreign countries 50,452 45,833 232 1,533 120 Foreign branches of U.S. banks 4,433 4,158 0 255 121 Other banks in foreign countries 46,019 41,674 232 1,278 122 Foreign governments and official institutions (including foreign central banks) 20,651 16,271 837 1,437 123 All other deposits and credit balances 108 91 15 2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • May 2000 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1999'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o I n B ly F ~ s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 124 Federal funds purchased and securities sold under agreements to repurchase 106,180 9,891 93,553 6,790 373 33 8,243 1,472 125 U.S. branches and agencies of other foreign banks 9,507 3,607 5,783 2,1) 88 98 8 1,514 802 17.6 Other commercial banks in United States 9,015 702 6,889 524 175 25 1,126 153 177 Other 87,658 5,582 80,882 4,178 101 0 5,604 517 128 Other borrowed money 81,482 26,479 64,414 20,378 5,879 5,174 5,590 330 129 Owed to nonrelated commercial banks in United States (including IBFs) 14,680 5,555 11,922 4,308 1,552 1,134 616 10 130 Owed to U.S. offices of nonrelated U.S. banks 5,647 404 4,990 286 324 115 180 0 131 Owed to U.S. branches and agencies of nonrelated foreign banks 9,033 5,151 6,932 4,023 1,229 1,019 437 10 132 Owed to nonrelated banks in foreign countries 20,805 17,628 16,461 13,335 3,665 3,653 273 270 133 Owed to foreign branches of nonrelated U.S. banks 1,153 1,104 647 618 486 4 86 0 0 134 Owed to foreign offices of nonrelated foreign banks 19,652 16,524 15,814 12,717 3,179 3,167 273 270 135 Owed to others 45,997 3,296 36,030 2,735 662 387 4,701 50 136 All other liabilities 89,352 1,685 70,839 1,501 475 75 8,509 35 137 Branch or agency liability on acceptances executed and outstanding 1,875 1,220 n.a. 182 n.a. 441188 n.a. 138 Trading liabilities 56,662 28 43,199 128 52 0 6.813 0 139 Other liabilities to nonrelated parties 30,815 1,556 26,419 1,373 241 75 1,278 35 140 Net due to related depository institutions5 150,310 20,427 106,236 18,371 16,039 128 9,844 115 141 Net due to head office and other related depository institutions .... 150,310 n.a. 106,236 n.a. 16,039 n.a. 9,844 n.a. 142 Net due to establishing entity, head office, and other related depository institutions5 n.a. 20,427 n.a. 18,371 n.a. 128 n.a. 115 MEMO 143 Non-interest-bearing balances with commercial banks in United States 3,618 0 3,428 0 64 0 22 0 144 Holding of own acceptances included in commercial and industrial loans 1,998 1,591 • 134 < 196 145 Commercial and industrial loans with remaining maturity of one year or less (excluding those in nonaccrual status) 101,397 63,377 9,381 14,228 146 Predetermined interest rates 59,511 n.a. 34,042 n.a. 4,458 n.a. 12,441 n.a. 147 Floating interest rates 41,886 29,334 4,923 1,787 148 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 101,219 78,808 8,738 5,203 149 Predetermined interest rates 22,989 19,242 1,218 622 150 Floating interest rates 78,231 59,566 7,520 4,581 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, December 31, 1999Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l ng I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l ng I o B n F ly s 111155551111 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ((((eeeexxxxcccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss)))) 373,939 n.a. 304,379 n.a. 4,500 n.a. 19,244 n.a. 111155552222 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 366,347 n.a. 296,990 n.a. 4,480 n.a. 19,073 n.a. 111155553333 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 7,592 n.a. 7,389 n.a. 20 n.a. 172 n.a. All states2 New York California Illinois inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s 111155554444 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 37,015 n.a. 32,445 n.a. 2,754 n.a. 1,046 n.a. 111155555555 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 361 0 188 0 73 0 30 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G.l 1, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G.l 1 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G. 11 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Federal Reserve Bulletin • May 2000 Index to Statistical Tables References are to pages A3-A75, although the prefix " " 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 of Commercial banks, 15-21, 64-65 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 banks, U.S. branches and agencies, 72-75 Treasury operating balance, 25 Foreign-related institutions, 20 Federal Financing Bank, 30 Automobiles Federal funds, 23, 25 Consumer credit, 36 Federal Home Loan Banks, 30 Production, 44, 45 Federal Home Loan Mortgage Corporation, 30, 34, 35 Federal Housing Administration, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Land Banks, 35 Bankers balances, 15-21, 72-75. (See also Foreigners) Federal National Mortgage Association, 30, 34, 35 Bonds (See also U.S. government securities) Federal Reserve Banks New issues, 31 Condition statement, 10 Rates, 23 Discount rates (See Interest rates) Business activity, nonfinancial, 42 U.S. government securities, 5, 10, 11, 27 Business loans (See Commercial and industrial loans) Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 Federally sponsored credit agencies, 30 CAPACITY utilization, 43 Finance companies Capital accounts Commercial banks, 15-21, 64—65 Assets and liabilities, 32 Federal Reserve Banks, 10 Business credit, 33 Certificates of deposit, 23 Loans, 36 Commercial and industrial loans Paper, 22, 23 Commercial banks, 15-21, 64-65, 66-71 Float, 5 Weekly reporting banks, 17, 18 Flow of funds, 37^41 Commercial banks Foreign banks, U.S. branches and agencies, 71, 72-75 Assets and liabilities, 15-21, 64—65 Foreign currency operations, 10 Commercial and industrial loans, 15-21, 64-65, 66-71 Foreign deposits in U.S. banks, 5 Consumer loans held, by type and terms, 36, 66-71 Foreign exchange rates, 62 Real estate mortgages held, by holder and property, 35 Foreign-related institutions, 20 Terms of lending, 64-65 Foreign trade, 51 Time and savings deposits, 4 Foreigners Commercial paper, 22, 23, 32 Claims on, 52, 55, 56, 57, 59 Condition statements (See Assets and liabilities) Liabilities to, 51, 52, 53, 58, 60, 61 Construction, 42, 46 Consumer credit, 36 GOLD Consumer prices, 42 Certificate account, 10 Consumption expenditures, 48, 49 Stock, 5, 51 Corporations Government National Mortgage Association, 30, 34, 35 Profits and their distribution, 32 Gross domestic product, 48, 49 Security issues, 31, 61 Cost of living (See Consumer prices) HOUSING, new and existing units, 46 Credit unions, 36 Currency in circulation, 5, 13 INCOME, personal and national, 42, 48, 49 Customer credit, stock market, 24 Industrial production, 42, 44 Insurance companies, 27, 35 DEBT (See specific types of debt or securities) Interest rates Demand deposits, 15—21 Bonds, 23 Depository institutions Commercial banks, 66-71 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4-6, 12, 64—65 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21, 64—65 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22, 66-71 Discount rates at Reserve Banks and at foreign central banks and 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, 66-71 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

A77 Loans (See also specific types) Saving deposits (See Time and savings deposits) Commercial banks, 15-21, 64-65, 66-71 Savings institutions, 35, 36, 37-41 Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Foreign banks, U.S. branches and agencies, 72 Foreign transactions, 60 Insured or guaranteed by United States, 34, 35 New issues, 31 Prices, 24 MANUFACTURING Special drawing rights, 5, 10, 50, 51 Capacity utilization, 43 State and local governments Production, 43, 45 Holdings of U.S. government securities, 27 Margin requirements, 24 New security issues, 31 Member banks, reserve requirements, 8 Rates on securities, 23 Mining production, 45 Stock market, selected statistics, 24 Mobile homes shipped, 46 Stocks (See also Securities) Monetary and credit aggregates, 4, 12 New issues, 31 Money and capital market rates, 23 Prices, 24 Money stock measures and components, 4, 13 Mortgages (See Real estate loans) Student Loan Marketing Association, 30 Mutual funds, 13, 32 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 Thrift institutions, 4. (See also Credit unions and Savings NATIONAL defense outlays, 26 institutions) National income, 48 Time and savings deposits, 4, 13, 15-21, 64—65 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, 66-71 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 Banks holdings, 5, 10, 11, 27 REAL estate loans Foreign and international holdings and transactions, 10, 27, 61 Banks, 15-21, 35 Open market transactions, 9 Terms, yields and activity, 34 Outstanding, by type and holder, 27, 28 Type and holder and property mortgaged, 35 Rates, 23 Reserve requirements, 8 U.S. international transactions, 50-62 Reserves Utilities, production, 45 Commercial banks, 15-21 Depository institutions, 4—6, 12 VETERANS Administration, 34, 35 Federal Reserve Banks, 10 U.S. reserve assets, 51 WEEKLY reporting banks, 17, 18 Residential mortgage loans, 34, 35 Wholesale (producer) prices, 42, 47 Retail credit and retail sales, 36, 42 YIELDS (See Interest rates) SAVING Flow of funds, 37-41 National income accounts, 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • May 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 SUPERVISION AND REGULATION JOYCE K. ZICKLER, Assistant Director 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 WILLIAM A. RYBACK, Associate Director DONALD L. KOHN, Director GERALD A. EDWARDS, JR., Deputy Associate Director DAVID E. LINDSEY, Deputy Director STEPHEN M. HOFFMAN, JR., Deputy Associate Director BRIAN F. MADIGAN, Associate Director JAMES V. HOUPT, Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director JACK P. JENNINGS, Deputy Associate Director WILLIAM C. WHITESELL, Assistant Director MICHAEL G. MARTINSON, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board SIDNEY M. SUSSAN, Deputy Associate Director MOLLY S. WASSOM, Deputy Associate Director DIVISION OF CONSUMER 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

A79 EDWARD M. GRAMLICH OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS STEPHEN R. MALPHRUS, Staff Director LOUISE L. ROSEMAN, Director PAUL W. BETTGE, Assistant Director MANAGEMENT DIVISION KENNETH D. BUCKLEY, Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JACK DENNIS, JR., Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources JOSEPH H. HAYES, JR., Assistant Director Function JEFFREY C. MARQUARDT, Assistant Director 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

80 Federal Reserve Bulletin • May 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

A81 CONSUMER ADVISORY COUNCIL DWIGHT GOLANN, Boston, Massachusetts, Chairman LAUREN ANDERSON, New Orleans, Louisiana, Vice Chairman WALTER J. BOYER, Dallas, Texas M. DEAN KEYES, St. Louis, Missouri TERESA A. BRYCE, Charlotte, North Carolina GWENN S. KYZER, Allen, Texas DOROTHY BROADMAN, San Francisco, California JOHN C. LAMB, Sacramento, California MALCOLM M. BUSH, Chicago, Illinois ANNE S. LI, Trenton, New Jersey ROBERT M. CHEADLE, Ada, Oklahoma MARTHA W. MILLER, Greensboro, North Carolina MARY ELLEN DOMEIER, New ULM, Minnesota DANIEL W. MORTON, Columbus, Ohio JEREMY D. EISLER, Biloxi, Mississippi JEREMY NOWAK, Philadelphia, Pennsylvania ROBERT F. ELLIOTT, Prospect Heights, Illinois MARTA RAMOS, San Juan, Puerto Rico LESTER W. FIRSTENBERGER, Middletown, Connecticut DAVID L. RAMP, St. Paul, Minnesota JOHN C. GAMBOA, San Francisco, California RUSSELL W. SCHRADER, San Francisco, California ROSE M. GARCIA, Las Cruces, New Mexico ROBERT G. SCHWEMM, Lexington, Kentucky VINCENT J. GIBLIN, West Caldwell, New Jersey DAVID J. SHIRK, Tarrytown, New York KARLA S. IRVINE, Cincinnati, Ohio GARY S. WASHINGTON, Chicago, Illinois WILLIE M. JONES, Boston, Massachusetts ROBERT L. WYNN, II, Madison, Wisconsin THRIFT INSTITUTIONS ADVISORY COUNCIL F. WELLER MEYER, Falls Church, Virginia, President THOMAS S. JOHNSON, New York, New York, Vice President JAMES C. BLAINE, Raleigh, North Carolina CORNELIUS D. MAHONEY, Westfield, Massachusetts LAWRENCE L. BOUDREAUX III, New Orleans, Louisiana KATHLEEN E. MARINANGEL, McHenry, Illinois TOM R. DORETY, Tampa, Florida ANTHONY J. POPP, Marietta, Ohio BABETTE E. HEIMBUCH, Santa Monica, California MARK H. WRIGHT, San Antonio, Texas WILLIAM A. LONGBRAKE, Seattle, Washington CLARENCE ZUGELTER, Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • May 2000 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Rates for subscribers outside the United States are as follows MS-127, Board of Governors of the Federal Reserve System, and include additional air mail costs: Washington, DC 20551, or telephone (202) 452-3244, or FAX Federal Reserve Regulatory Service, $250.00 per year. (202) 728-5886. You may also use the publications order Each Handbook, $90.00 per year. form available on the Board's World Wide Web site FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL (http://www.federalreserve.gov). When a charge is indicated, pay- COMPUTERS. CD-ROM; updated monthly. ment should accompany request and be made payable to the Standalone PC. $300 per year. Board of Governors of the Federal Reserve System or may be Network, maximum 1 concurrent user. $300 per year. ordered via Mastercard, Visa, or American Express. Payment from Network, maximum 10 concurrent users. $750 per year. foreign residents should be drawn on a U.S. bank. Network, maximum 50 concurrent users. $2,000 per year. Network, maximum 100 concurrent users. $3,000 per year. Subscribers outside the United States should add $50 to cover BOOKS AND MISCELLANEOUS PUBLICATIONS additional airmail costs. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. THE FEDERAL RESERVE ACT AND OTHER STATUTORY PROVISIONS 1994. 157 pp. AFFECTING THE FEDERAL RESERVE SYSTEM, as amended ANNUAL REPORT, 1998. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 1999. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 COUNTRY MODEL, May 1984. 590 pp. $14.50 each. each in the United States, its possessions, Canada, and INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. Mexico. Elsewhere, $35.00 per year or $3.00 each. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST: period covered, release date, num- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. ber of pages, and price. December 1986. 264 pp. $10.00 each. 1981 October 1982 239 pp. $ 6.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1982 December 1983 266 pp. $ 7.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1983 October 1984 264 pp. $11.50 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1984 October 1985 254 pp. $12.50 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1985 October 1986 231 pp. $15.00 578 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 1993 December 1994 281 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1994 December 1995 190 pp. $25.00 Consumer Handbook to Credit Protection Laws 1990-95 November 1996 404 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small Businesses Series on the Structure of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Board of Governors of the Federal Reserve System CHARTS. Weekly. $30.00 per year or $.70 each in the United The Federal Open Market Committee States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each. Federal Reserve Bank Board of Directors Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volume to Fair Lending $5.00. How to File a Consumer Complaint about a Bank GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. Making Sense of Savings 1,186 pp. $20.00 each. SHOP: The Card You Pick Can Save You Money FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Welcome to the Federal Reserve monthly. (Requests must be prepaid.) When Your Home is on the Line: What You Should Know Consumer and Community Affairs Handbook. $75.00 per year. About Home Equity Lines of Credit Monetary Policy and Reserve Requirements Handbook. $75.00 Keys to Vehicle Leasing per year. Looking for the Best Mortgage Securities Credit Transactions Handbook. $75.00 per year. 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

A83 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. 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- Group on Disclosure, Federal Reserve System, March 2000. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. 35 pp. Rhoades. February 1992. 11 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • May 2000 Maps of the Federal Reserve System 2^ Bos• I ON Q • NEW YORK 3 — PHI•I \DELPHIA ONI) ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. most recently in February 1996. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 1-A 2-B 3-C 4-D 5-E Baltimore MD MR NY Pittsburgh CT PA • \T % I < WV NTI Bui kiln fcj DE^ < O •T H C-LI in • ci^n—naWtVi •Charloiie CT T VM KY sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F ^ ^ ^ 7-G 8-H JH KY • j® ' ' Louisville iSS®--™ MO Ui ^C •Memphis NewUrleans ATLANTA * CHICAGO ST. LOUIS MINNEAPOLIS 10-J ^ 1122--LL MM \\SSKK\\ •• Oklahoma Cit> KANSAS CITY DALLAS SSAANN FFRRAANNCCIISSCCOO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • May 2000 Federal Reserve Banks, Branches, and Offices FEDERAL RESERVE BANK Chairman President Vice President branch, or facility Zip Deputy Chairman First Vice President in charge of branch BOSTON* 02106 William C. Brainard Cathy E. Minehan William O. Taylor Paul M. Connolly NEW YORK* 10045 Peter G. Peterson William J. McDonough Charles A. Heimbold, Jr. Jamie B. Stewart, Jr. Buffalo 14240 Bal Dixit Carl W. Turnipseed1 PHILADELPHIA 19105 Joan Carter Edward G. Boehne Charisse R. Lillie William H. Stone, Jr. CLEVELAND* 44101 David H. Hoag Jerry L. Jordan To be announced Sandra Pianalto Cincinnati 45201 George C. Juilfs Barbara B.Henshaw Pittsburgh 15230 John T. Ryan, III Robert B. Schaub RICHMOND* 23219 Jeremiah J. Sheehan J. Alfred Broaddus, Jr. Wesley S. Williams, Jr. Walter A. Varvel Baltimore 21203 George L. Russell, Jr. William J. Tignanelli1 Charlotte 28230 Joan H. Zimmerman Dan M. Bechter1 ATLANTA 30303 John F. Wieland Jack Guynn Paula Lovell Patrick K. Barron James M. McKee Birmingham 35283 D. Bruce Carr Andre T. Anderson Jacksonville 32231 William E. Flaherty Robert J. Slack Miami 33152 Karen Johnson-Street James T. Curry III Nashville 37203 Frances F. Marcum Melvyn K. Purcell1 New Orleans 70161 Dwight H. Evans Robert J. Musso1 CHICAGO* 60690 Arthur C. Martinez Michael H. Moskow Robert J. Darnall William C. Conrad Detroit 48231 Timothy D. Leuliette David R. Allardice1 ST. LOUIS 63166 Susan S. Elliott William Poole Charles W. Mueller W. LeGrande Rives Little Rock 72203 Diana T. Hueter Robert A. Hopkins Louisville 40232 J. Stephen Barger Thomas A. Boone Memphis 38101 Mike P. Sturdivant, Jr. Martha Perine Beard MINNEAPOLIS 55480 James J. Howard Gary H. Stern Ronald N. Zwieg Colleen K. Strand Helena 59601 William P. Underriner Samuel H. Gane KANSAS CITY 64198 Jo Marie Dancik Thomas M. Hoenig Terrence P. Dunn Richard K. Rasdall Denver 80217 Kathryn A. Paul Carl M. Gambs1 Oklahoma City 73125 Larry W. Brummett Kelly J. Dubbert Omaha 68102 Gladys Styles Johnston Steven D. Evans DALLAS 75201 Roger R. Hemminghaus Robert D. McTeer, Jr. H. B. Zachry, Jr. Helen E. Holcomb El Paso 79999 Beauregard Brite White Sammie C. Clay Houston 77252 Edward O. Gaylord Robert Smith, III1 San Antonio 78295 Patty P. Mueller James L. Stull1 SAN FRANCISCO 94120 Gary G. Michael Robert T. Parry Nelson C. Rising John F. Moore Los Angeles 90051 Lonnie Kane Mark L. Mullinix1 Portland 97208 Nancy Wilgenbusch Raymond H. Laurence1 Salt Lake City 84125 Barbara L. Wilson Andrea P. Wolcott Seattle 98124 Richard R. Sonstelie Gordon R. G. Werkema2 *Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Executive Vice President Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications Services, mail stop 127, Board contains Regulations B, C, E, M, Z, AA, BB, and DD, of Governors of the Federal Reserve System, Washingand associated materials. ton, DC 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications Services, Board of Goverare constructed. It lists each flow series in the Board's nors of the Federal Reserve System, Washington, DC flow of funds publication, "Flow of Funds Accounts of 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • May 2000 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis