Federal Reserve Bulletin, 2000-09

Volume 86 • Number 9 • September 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 623 CREDIT CARDS: USE AND CONSUMER the changes in U.S. banking structure and perfor- ATTITUDES, 1970-2000 mance that took place during that period. From modest origins in the 1950s as a conve- 641 INDUSTRIAL PRODUCTION AND CAPACITY nient way for the relatively well-to-do to settle UTILIZATION FOR JULY 2000 restaurant and department store purchases without carrying cash, credit cards have become a Industrial production increased 0.4 percent in ubiquitous financial product held by households July, to 145.3 percent of its 1992 average. in all economic strata. Since the late 1960s, Capacity utilization for total industry rose much federal legislation has been enacted to 0.1 percentage point, to 82.3 percent, a level ensure that consumers have the protections and 0.3 percentage point above its 1967-99 average. information they need to use this widely available form of open-end credit wisely. Neverthe- 644 STATEMENTS TO THE CONGRESS less, concerns persist about whether consumers Patrick M. Parkinson, Associate Director, Divifully understand the costs and implications of sion of Research and Statistics, Board of Goverusing credit cards and whether credit cards nors, presents the Board's views on the Comhave encouraged widespread overindebtedness. modity Futures Modernization Act of 2000 Drawing on information from commercial (H.R. 4541) and testifies that the Board continbanks, credit reporting agencies, and surveys of ues to believe that such legislation modernizing consumers, this article explores these issues as the Commodity Exchange Act is essential. He well as changes over the past three decades in states further that H.R. 4541 reflects a remarkconsumer impressions of their card-using expeable consensus on the need for legal certainty riences and of conditions in the marketplace. for OTC derivatives and regulatory relief for U.S. futures exchanges, issues that have long eluded resolution (Testimony before the Sub- 635 TREASURY AND FEDERAL RESERVE committee on Finance and Hazardous Materials FOREIGN EXCHANGE OPERATIONS of the House Committee on Commerce, July 12, The dollar ended the second quarter of 2000 2000). little changed against the euro and 3.1 percent 646 Patrick M. Parkinson presents additional testistronger against the yen. On a trade-weighted basis, the dollar ended the period modestly mony on H.R. 4541, including the provisions of stronger, having risen 1.3 percent against the H.R. 1161, which would amend the U.S. Bankcurrencies of the major U.S. trading partners. ruptcy Code to support financial contract net- The U.S. monetary authorities did not inter- ting, and states that enactment of those amendvene in the foreign exchange markets during the ments would reduce uncertainty for market quarter. participants about the disposition of their financial market contracts in the event one of the counterparties becomes insolvent. He testifies 640 STAFF STUDIES further that the Board urges the amendment of H.R. 4541 to include the financial contract net- The U.S. banking industry experienced a susting provisions of H.R. 1161 (Testimony before tained and unprecedented merger movement the House Committee on Banking and Financial from 1980 to 1998. During that period, approxi- Services, July 19, 2000). mately 8,000 bank mergers occurred, involving about $2.4 trillion in acquired assets. In Bank 648 Alan Greenspan, Chairman, Board of Gover- Mergers and Banking Structure in the United nors, presents the Board's report on monetary States, 1980-98, the author describes various policy and testifies that the Federal Reserve has aspects of that bank merger activity and some of been confronting a complex set of challenges in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

judging the stance of policy that will best con- 655 LEGAL DEVELOPMENTS tribute to sustaining the strong and long-running Various bank holding company, bank service expansion of our economy and that the chalcorporation, and bank merger orders; and pendlenges will be no less in coming months. Furing cases. ther, he states that irrespective of the complexities of economic change, the primary goal of the AI FINANCIAL AND BUSINESS STATISTICS Federal Reserve is to find those policies that best contribute to a non-inflationary environment and These tables reflect data available as of hence to growth (Testimony before the Senate July 27, 2000. Committee on Banking, Housing, and Urban Affairs, July 20, 2000. Chairman Greenspan pre- A3 GUIDE TO TABULAR PRESENTATION sented identical testimony before the House A4 Domestic Financial Statistics Committee on Banking and Financial Services A42 Domestic Nonfinancial Statistics on July 25, 2000). A50 International Statistics 652 ANNOUNCEMENTS A63 GUIDE TO STATISTICAL RELEASES AND Public hearings scheduled on predatory prac- SPECIAL TABLES tices in the home equity lending market. A80 INDEX TO STATISTICAL TABLES Proposed rule to allow financial holding companies to act as a "finder" to bring together buyers A82 BOARD OF GOVERNORS AND STAFF and sellers of financial and nonfinancial products for transactions that the buyers and sellers A84 FEDERAL OPEN MARKET COMMITTEE AND themselves negotiate and consummate; proposed revisions to Regulation E to require disclosure STAFF; ADVISORY COUNCILS of ATM fees. Availability of a computer program on vehicle A86 FEDERAL RESERVE BOARD PUBLICATIONS leasing that can be downloaded from the Federal Reserve Board's web site. A88 MAPS OF THE FEDERAL RESERVE SYSTEM Enforcement action. A90 FEDERAL RESERVE BANKS, BRANCHES, AND OFFICES Availability of the Annual Report: Budget Review. Changes in Board staff. 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. • Dolores S. Smith • Richard Spillenkothen • Richard C. Stevens • David J. Stockton 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

Credit Cards: Use and Consumer Attitudes, 1970-2000 Thomas A. Durkin, of the Board's Division of costs of credit cards, for instance, or consumers who Research and Statistics, prepared this article. Nicole overspend because of the wide availability of credit— Price provided research assistance. such examples can never lead to a definitive understanding of issues having broad social or economic A notable change in consumer financial services over impact. Statistically representative surveys can conthe past few decades has been the growth of the use tribute to a more complete understanding of consumof credit cards, both for payments and as sources of ers' experiences. Taken together, such surveys can revolving credit. From modest origins in the 1950s serve as a status report on the use of credit cards as a convenient way for the relatively well-to-do to some fifty years after their introduction. This article settle restaurant and department store purchases with- brings to the discussion some survey evidence on out carrying cash, credit cards have become a ubiqui- the use of credit cards in the United States. It begins tous financial product held by households in all eco- with an examination of long-term trends in consumer nomic strata. indebtedness, with attention to the growth of card- In modern commerce, credit cards (along with based credit. It then moves to an exploration of debit cards) serve as a payment device in lieu of cash the consumer information-consumer understanding or checks for millions of routine purchases as well as issue, with emphasis on consumers' attitudes toward for many transactions that would otherwise be incon- credit cards and their knowledge of costs. venient, or perhaps impossible (for example, making retail purchases by telephone or over the Internet). Credit cards have also become the primary source of CREDIT CARDS AND INDEBTEDNESS unsecured open-end revolving credit, and they have largely replaced the installment-purchase plans that The Federal Reserve Board collects data on amounts were important to the sales volume at many retail of consumer credit outstanding, including amounts of stores in earlier decades. revolving consumer credit, most of which is gener- Along with most major societal changes come ated by credit cards.1 Total (nonmortgage) consumer questions about whether the trend is beneficial or credit outstanding increased from $119 billion at detrimental (or somewhere in between), and the rise year-end 1968 to $1,456 billion in June 2000 (in of plastic cards for payments and open-end credit current dollars, not seasonally adjusted), while the is no exception. Credit cards certainly are widely revolving component grew from $2 billion to about used and accepted by the public. But they have also $626 billion over the same period. Because popularaised concerns in two areas: (1) whether consumers tion, income, employment, prices, and nearly every fully understand the costs and implications of using other economic indicator also rose over the period, credit cards (the consumer information-consumer the growth of consumer credit is often put in perspecunderstanding concern) and (2) whether credit cards tive by comparing it with the growth of consumers' have encouraged widespread overindebtedness, income. particularly among those least able to pay (the Total (nonmortgage) consumer credit outstanding indebtedness-financial distress concern). The two (revolving and nonrevolving forms combined) has issues are related, because one result of lack of understanding may be overindebtedness. Both issues remain prominent in public discourse, as debt and 1. Consumer credit covers most short- and intermediate-term credit personal bankruptcy levels have increased over the extended to individuals. It includes revolving credit (credit card credit and balances outstanding on unsecured revolving lines of credit) and decades and media reports of confused consumers nonrevolving credit (such as secured and unsecured credit for autohave multiplied. mobiles, mobile homes, trailers, durable goods, vacations, and other purposes). Consumer credit excludes loans secured by real estate Although one can usually find anecdotes to illus- (such as mortgage loans, home equity loans, and home equity lines of trate a point—consumers who are unaware of the credit). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

624 Federal Reserve Bulletin • September 2000 1. Consumer credit outstanding as a proportion of disposable tion about the users and uses of credit cards. For this personal income, 1956-99 reason, each Survey of Consumer Finances since 1970 has included questions on the holding and use of credit cards (the 1967 and 1968 surveys also included a few questions about credit cards).2 These surveys show that in 1998 almost threefourths of American families had one or more credit cards, up from about one-half of a smaller population in 1970 (table 1). Among credit cards, the generalpurpose cards that have a revolving feature, referred to in this article as "bank-type" credit cards, show the most notable increase over the period.3 In the Consumer revolving credit ^ —' early 1970s, limited-use cards issued by retail firms, usable only in the firm's stores, were the most com- I II I 11 I II I II M-fTTTTTlI I 1 I II MI I 11 M I I I 11 I II1 monly held type of credit card; bank-type cards were 1959 1967 1975 1983 1991 1999 much less common. By 1995, however, the holding SOURCE. Federal Reserve Board and Bureau of Economic Analysis. of bank-type cards was more common than the holding of retail store cards. The holding of bank-type credit cards has contingrown at approximately the same pace as disposable ued to grow in recent years, whereas the holding of personal income over the past generation, although retail store cards peaked about a decade ago and has with noticeably more cyclically. Since the midfallen off since then. In fact, bank-type cards issued 1960s, total consumer credit outstanding relative to under the Visa and MasterCard brands are so widely this measure of income has fluctuated in a relatively held and used today that it is difficult to imagine that narrow range of about 16 percent to 17 percent durthey were not especially common only three decades ing or following recession periods to about 18 perago. Known at that time as BankAmericard and Mascent to 21 percent near business-cycle highpoints ter Charge, respectively, and issued only by commer- (chart 1). cial banking organizations, they were a new product The revolving component of consumer credit has in the mid-1960s and by 1970 together had reached increased relative to income over the most recent only about one-sixth of families; the other major three decades, and the nonrevolving component has bank-type cards widely available today, Discover and decreased relative to income. Thus, the revolving Optima, were not even on the drawing boards at that component's share has been growing relative to the time. By 1998, bank-type cards (including Discover nonrevolving component's share, reflecting consumer and Optima) were in the hands of about two-thirds of preference and technological change; many consumfamilies. In three decades, the general-purpose card ers seem to like the convenience associated with with a revolving feature has become the most widely prearranged lines of credit, and technological develheld credit device. opments have made it much easier for creditors to Consumers use credit cards for two main purposes: offer this data-intensive product. A substantial poras a substitute for cash and checks when making tion of the new revolving credit probably has merely purchases and as a source of revolving credit. In replaced credit generated by the installment-purchase 1970, just over one-fifth of all families owed a balplans that were common at appliance, furniture, and ance on a credit card after making their most recent other durable goods stores in the past. And some of card payment (table 1). By 1998, the fraction was just the new credit is in the form of "convenience credit" over two-fifths. Most of the increase was due to the on credit cards—amounts that will be paid in full upon receipt of the monthly statement. (Installment- 2. The Survey of Consumer Finances series is sponsored by the purchase plans have no equivalent "convenience" Federal Reserve Board, sometimes jointly with other agencies. The component.) 1977 survey in this series was titled the 1977 Consumer Credit Survey but is referred to in this article as the 1977 Survey of Consumer Finances because it is part of the same series. For a general description of results from recent surveys, see Arthur B. Kennickell, Martha Card Holding among Families Starr-McCluer, and Brian J. Surette, "Recent Changes in U.S. Family Finances: Results from the 1998 Survey of Consumer Finances," Dollar amounts of credit card credit outstanding can Federal Reserve Bulletin, vol. 86 (January 2000), pp. 1-29. 3. "Travel and entertainment" cards such as American Express be estimated from information provided by creditors, and Diners Club are not included here as "bank-type" cards because but only surveys of consumers can provide informa- they do not offer a revolving feature. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Cards: Use and Consumer Attitudes, 1970-2000 625 1. Prevalence of credit cards among U.S. families, selected years, 1970-98 Percent Item 1970 1977 1983 1989 1995 1998 Have a card Any card1 51 63 65 70 74 73 Retail store card 45 2 54 58 61 58 50 Bank-type card3 16 38 43 56 66 68 Have a card with a balance after the most recent payment Any card1 22 34 37 40 44 42 Retail store card 15 25 29 28 24 19 Bank-type card 3 6 16 22 29 37 37 MEMO Families having any card with an outstanding balance after the most recent payment as a proportion of all families having cards 44 56 57 57 59 58 Families having a bank-type card with an outstanding balance after the most recent payment as a proportion of all families having bank-type cards 37 44 51 52 56 55 Proportion of families having a bank-type card who hardly ever pay revolving card balances in full 18 25 26 28 27 NOTE. In 1970, families were asked about using credit cards; in all other 2. Data are for 1971. years, they were asked about having cards. 3. A bank-type card is a general-purpose credit card with a revolving feature; 1. Includes cards issued by banks, gasoline companies, retail stores and includes BankAmericard, Choice, Discover, MasterCard, Master Charge, chains, travel and entertainment card companies (for example, American Optima, and Visa, depending on year. Express and Diners Club), and miscellaneous issuers (for example, car rental . . . Not available. and airline companies). SOURCE. Surveys of Consumer Finances. growing popularity of bank-type cards as devices for increased over the three decades, as did the mean and generating revolving credit. In 1970, only 6 percent median revolving credit balances (in constant dolof families had a bank-type card with an outstanding lars). Despite some shifts within the period, the shares balance after their most recent payment. The propor- of total revolving balances on these cards accounted tion rose steadily until 1995 and then leveled off at for by each income group has not changed dramati- 37 percent. In contrast, the proportion of families cally over the decades, perhaps contrary to popular reporting an outstanding balance on a retail store card impressions. For example, despite a sharp increase in peaked in 1983 at 29 percent, and in 1998, at 19 per- card holding by the lowest income group, the group's cent, it was only a bit higher than the 15 percent share of total revolving debt on bank-type cards rose recorded in 1970. Of those families that had bank- only to 5 percent in 1998, up from 2 percent in 1970 type cards, 37 percent had revolved a balance in the but still not a large proportion of the total. The month before the 1970 survey, compared with 55 per- highest income group accounted for 30 percent of cent in the month before the 1998 survey. In 1977, revolving debt on bank-type cards in 1970, a share 18 percent of holders of bank-type cards reported that that over the three decades fell off only a bit, to they hardly ever paid their revolving accounts in full, 29 percent in 1998. a proportion that rose to 25 percent in 1983 and has The expanded availability of card-based credit, remained at about that level since then. especially to lower-income consumers, has raised concerns that issuers have taken on more credit risk and that instances of financial distress may increase Distribution of Bank-Type Credit Cards sharply at some point. Data on the proportion of dollars of revolving credit delinquent thirty days or Data from the Surveys of Consumer Finances indi- more, available from Call Reports submitted by comcate that the holding of general-purpose credit cards mercial banks since 1991, indicate an upward trend with a revolving feature has become more wide- from 1994 to 1996 and a leveling after that (chart 2). spread among households at all income levels. For This pattern is similar to that for delinquencies on families in the lowest income group, 2 percent had a closed-end (nonrevolving) consumer credit extended bank-type credit card in 1970, compared with 28 per- by banks, much of which is secured credit associated cent in 1998 (table 2). For those in the highest with the purchase of automobiles. Data on the proporincome group, the holding of bank-type cards almost tion of consumers (rather than dollars) delinquent, tripled between 1970 and 1995—from 33 percent to assembled by the Credit Research Center (George- 95 percent. town University) from a random sample of consumer credit reports maintained by a national credit report- For each income group, the percentage of carding agency, show that at year-end 1999, 3.4 percent holders carrying a balance on bank-type cards also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

626 Federal Reserve Bulletin • September 2000 2. Prevalence of bank-type credit cards and outstanding balance amounts, by family income quintiles, selected years, 1970-98 Percent except as noted Income quintile 1970 1977 1983 1989 1995 1998 Lowest Have a card 2 11 11 17 28 28 Carrying a balance 27 40 40 43 57 59 Mean balance (dollars) 896 731 1,147 784 2,386 2,240 Median balance (dollars) 336 538 818 592 995 700 Share of total revolving balance 2 4 4 2 6 5 Second lowest Have a card 9 22 27 36 54 58 Carrying a balance 39 42 49 46 57 58 Mean balance (dollars) 659 1,055 906 1,712 2,622 3,028 Median balance (dollars) 504 565 655 1,315 1,605 1,400 Share of total revolving balance 9 13 8 8 14 13 Middle Have a card 14 36 41 62 71 72 Carrying a balance 47 45 58 56 58 58 Mean balance (dollars) 820 883 1,161 2,159 2,952 4,129 Median balance (dollars) 630 672 736 1,262 1,605 1,900 Share of total revolving balance 22 19 19 21 21 23 Second highest Have a card 22 51 57 76 83 86 Carrying a balance 39 52 56 62 60 60 Mean balance (dollars) 1,010 846 1,259 2,212 2,687 4,334 Median balance (dollars) 840 753 818 1,183 1,605 2.000 Share of total revolving balance 37 30 28 30 23 29 Highest Have a card 33 69 79 89 95 95 Carrying a balance 30 39 47 46 50 45 Mean balance (dollars) 761 898 1,531 3,417 4,460 5,232 Median balance (dollars) 630 672 916 2,630 2,246 2,500 Share of total revolving balance 30 33 40 40 36 29 All families Have a card 16 38 43 56 66 68 Carrying a balance 37 44 51 52 56 55 Mean balance (dollars) 839 889 1,282 2,404 3,160 4,073 Median balance (dollars) 630 672 818 1,315 1,605 1,900 Share of total revolving balance 100 100 100 100 100 100 NOTE. In 1970, families were asked about using cards; in all other years, they the most recent payment and are in 1998 dollars, adjusted using the Consumer were asked about having cards. Proportions that "have a card" are percent- Price Index for All Urban Consumers, all items. Shares may not sum to ages of families; proportions "carrying a balance" are percentages of holders of 100 percent because of rounding. bank-type cards with an outstanding balance after the most recent payment. SOURCE. Surveys of Consumer Finances. Mean and median balances are for cardholders with outstanding balances after of consumers were thirty days delinquent on at least nity Act, for example) or mandatory disclosures (the one bank-type card account (not shown in chart). Truth in Lending Act, for example). The disclosure This source also shows that more serious delinquency requirements have in large part been intended to help (overdue ninety days or more) has remained at or prevent or mitigate overextension and other difficulslightly below 1 percent of holders of active bank- ties resulting from a lack of understanding of credit type card accounts over the past decade.4 terms and the consequences of using credit. Generalpurpose household surveys can help in assessing the effects of these laws. Unfortunately, the specifics of CONSUMER INFORMATION AND many individual consumer's credit-related difficul- CONSUMER UNDERSTANDING ties do not lend themselves to such broad-based surveys. Surveying currently delinquent debtors, for Beginning with the Truth in Lending Act (enacted in example, is difficult with a broad survey because 1968 as Title I of the Consumer Credit Protection delinquency is relatively rare; large numbers of inter- Act, effective July 1, 1969), much federal legislation views must be completed to yield enough cases regulating consumer credit has concerned either man- to analyze an uncommon phenomenon with precidatory fairness procedures (the Equal Credit Opportu- sion. General-purpose surveys can, however, characterize consumers' overall impressions of their cardusing experiences and their views on conditions 4. See Credit Research Center (McDonough School of Business, in the marketplace, including the availability of Georgetown University, Washington, D.C.), Monthly Statements, variinformation. ous issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Cards: Use and Consumer Attitudes, 1970-2000 627 2. Consumer credit delinquency rates, 1991-99 question asked in nationwide Surveys of Consumer Finances in 1970 and again in 1977: "People have Percent different opinions about credit cards. Overall, would you say that using credit cards is a good thing or a bad thing?" Overall opinions about credit cards are somewhat more negative and polarized in 2000 than they were a generation ago, especially among holders of banktype cards (table 3). Opinions among all families that credit card use is "good" register a bit higher in 2000 (33 percent) than in 1970 (28 percent) but a bit lower than in 1977 (39 percent). The view that card use is Bank-type credit card holders3 "bad" is stronger in 2000 than in either of the earlier years. 1991 1992 1993 1994 1995 1996 1997 1998 1999 In all three surveys, views among holders of bank- 1. Percentage of revolving credit (dollars) delinquent thirty days or more. type cards were more favorable than those among the 2. Percentage of nonrevolving credit (dollars) delinquent thirty days or more. population generally. Nonetheless, unfavorable views 3. Percentage of holders of active bank-type credit card accounts delinquent ninety days or more on one or more bank-type cards. among cardholders have increased over the decades; SOURCE. For revolving and nonrevolving credit, Call Reports submitted by negative attitudes among cardholders are much more commercial banks. For bank-type credit card holders, Credit Research Center, Monthly Statements, various issues (based on data from a sample of consumer common in 2000 (42 percent) than they were in 1977 credit reports). (14 percent). This finding is interesting because card use is also much greater in 2000. In 2000, holders of bank-type cards are about equally divided in their Consumers' Attitudes toward Credit Cards opinions that credit card use is good or bad, much To explore consumers' attitudes toward and under- different from 1977, when a considerably larger prostanding of credit cards, as well as to gather informa- portion had a favorable opinion.5 tion about card use, the Credit Research Center in Consumers' opinions about credit cards also vary January 2000 sponsored interviews of nearly 500 depending on their use of and experience with cards. households representative of households in the forty- Less enthusiastic viewpoints are somewhat more eight contiguous states. Interviewing was done by the common among those who use credit cards as credit Survey Research Center of the University of Michi- devices rather than primarily as substitutes for cash gan as part of its monthly Surveys of Consumers. 5. Interestingly, contrary opinions about consumer credit, even General Attitudes from the same person, apparently have been around much longer than these surveys. Referring to the paradox of dichotomous views as the Respondents—both those who used credit cards and "Victorian money-management ethic," a cultural historian recently those who did not—were first asked their broad feel- pointed out that the simultaneous belief that credit is good but debt is bad is actually at least as old as American history. See Lendol Calder, ings about credit cards. So that attitude changes could Financing the American Dream: A Cultural History of Consumer be tracked over time, the question was identical to the Credit (Princeton, N.J.: Princeton University Press, 1999). 3. Opinions about the use of credit cards, selected years Percent 1970 1977 2000 OOppiinniioonn All families ^ YF All families card holders card holders Good 28 45 39 54 33 42 Good, with qualification 13 17 19 20 10 9 Both good and bad 12 14 11 8 6 5 Bad, with qualification 4 4 4 3 11 Bad 43 20 27 14 51 42 Total 100 100 100 100 100 100 NOTE. Components may not sum to 100 because of rounding. SOURCE. For 1970 and 1977, Surveys of Consumer Finances; for 2000, Surveys of Consumers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

628 Federal Reserve Bulletin • September 2000 or checks. Specifically, cards are viewed less posi- hypothesis, one cannot be certain, but from the 2000 tively by those who have three or more cards, have survey results it seems likely that as card use has an outstanding balance of more than $1,500, have become more common, negative opinions about card transferred a balance between cards, hardly ever pay use may have increased as a result of perceptions their outstanding balance in full, hardly ever pay about "the other guy." Views about personal experimore than the monthly minimum, or have received a ences with credit cards, in contrast, are much more collection call. positive. Consumers in 2000 seem to be concerned about Prevalence of negative attitudes toward using credit cards specific practices of credit card issuers. Most holders among holders of bank-type credit cards, 2000 of bank-type credit cards (more than 80 percent) believe that the annual percentage rates charged Percent believing on outstanding balances are too high (table 4). They Cardholder group that using credit cards is bad also express concern over privacy practices. In contrast, relatively few express concern about billing All holders of bank-type cards 42 accuracy. Have a new card account in the past year 47 Have three or more cards 49 Consumers' feelings about experiences with credit Have an outstanding balance greater than $ 1,500 after the most recent payment 57 cards in general are even more negative than their Have i n tr a th n e s f p er a r s e t d y a e a b r1 a lance to another account 60 feelings about specific practices.6 Holders of banktype credit cards in 2000 believe that too much credit Hardly ever pay outstanding balance in full 59 Hardly ever pay more than the minimum1 63 is available, that consumers are confused about some Have paid a late fee in the past year 47 Have received a collection call in the past year1 62 practices, and that credit users have difficulty getting out of debt. Somewhat over half said that issuers Family's annual income is $40,000 to $74,999 49 Respondent has high school diploma or some college, should not be allowed to market cards to college but not a degree 46 Respondent is 35 to 54 years old 48 students. Moreover, they appear to believe that consumers bring on themselves many of the problems 1. Weighted sample size less than fifty. SOURCE. Surveys of Consumers. associated with credit cards: Ninety percent agree to some extent that overspending is the fault of consum- Conversely, those who have fewer cards, have no ers, not of card issuers. balance or a low balance outstanding, generally pay Survey evidence does not suggest that increasingly more than the minimum, or have not received a negative views of credit cards have arisen from collection call have more favorable views (not shown adverse personal experiences. Rather, consumers' in the table). Demographic measures also appear to opinions about their own relations with their current be related to attitudes toward credit cards, but the card issuers are much more favorable than their relationship is not as strong as that associated with opinions about the relations of consumers in general. the variables related to the use of cards. Approximately nine in ten holders of bank-type credit cards said that they are satisfied with their dealings with card companies, that their card companies treat Attitudes toward Card Features, Card Issuers, them fairly, and that it is easy to get another card if and Other Users they are not treated fairly. Almost seven in ten trust To examine why card users might have the general that their own card companies would keep their perattitudes about credit cards that they do, the 2000 sonal information confidential, substantially more survey also asked questions about specific features of than the proportion believing that card companies in credit cards and about card issuers and users. The general show enough concern about protecting priquestions took the form of statements with which vacy (just under five in ten). Cardholders' opinions respondents could agree or disagree. Although data about their own experiences are almost the reverse of from earlier years are not available for comparison, their views about consumers' experiences in general, responses to these questions reveal an interesting suggesting considerable concern over the behavior of divergence of views that might help explain why others and possibly a belief that "I can handle credit overall attitudes have deteriorated. The responses cards, but other people cannot." suggest that the current negativity may have arisen in Despite expressed concerns about some practices part from an individual's perceptions of other con- and experiences, consumers appear to be satisfied sumers' difficulties rather than from the individual's own experiences. Without data from earlier periods 6. Survey interviewers did not offer the statements in the order given in table 4; the table groups topically similar questions for and questions designed specifically to address this analytical purposes. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Cards: Use and Consumer Attitudes, 1970-2000 629 4. Attitudes of holders of bank-type credit cards toward credit cards and card issuers, 2000 Percent Attitude Strongly agree Agree somewhat Disagree somewhat Strongly disagree Specific practices of card issuers The interest rates charged on credit cards are reasonable 3 16 26 55 Credit card companies show enough concern for protecting consumers' privacy 17 30 21 31 Credit card billing statements are accurate 54 39 5 2 Card issuers and consumers in general Credit card companies make too much credit available to most people 68 20 9 4 Sending solicitations that offer low rates but only for a short time probably misleads a lot of people 79 14 4 3 Credit card companies make it hard for people to get out of debt 55 27 10 9 Credit card companies should not be allowed to issue credit cards to college students 30 25 23 22 Overspending is the fault of consumers, not the credit card companies 63 27 6 4 Card issuers and me I am generally satisfied in my dealings with my credit card companies 51 40 6 4 My credit card companies treat me fairly 54 36 6 4 It is easy to get a credit card from another company if I am not treated well 63 23 10 4 I trust that my credit card companies will keep my personal spending information confidential 31 38 16 15 General satisfaction or dissatisfaction Credit card companies provide a useful service to consumers 44 48 6 2 Most people are satisfied in their dealings with credit card companies 15 54 20 11 Consumers would be better off if there were no credit cards 15 26 30 29 Information availability Information on the statement about how long it would take to pay off the balance if I make only the minimum payment would be very helpful to me 65 24 7 4 Mailings and other ads that offer a low rate at first followed by a higher rate are confusing to me 36 25 15 24 MEMO: General satisfaction or dissatisfaction with closed-end creditors and lenders in 1977 They provide a useful service to consumers 42 51 6 1 Most people are satisfied in their dealings with them 17 60 18 5 It would be a good thing for consumers if they were not around 6 21 36 38 NOTE. Components may not sum to 100 because of rounding. SOURCE. Surveys of Consumers; memo items, 1977 Survey of Consumer Finances. with the credit card market in general. Approximately tion would be difficult or impossible, and most likely nine in ten holders of bank-type credit cards said that meaningless (discussed further later). Survey responcredit cards provide a useful service to consumers, dents probably did not consider the implications and and about seven in ten said that most people are complexity of the calculations but were simply satisfied in their dealings with card companies. About acknowledging a desire for a practical measure of six in ten disagreed that consumers would be better the burden they are incurring. Many respondents off without cards. These results are similar to those also reported that "teaser rates" are confusing. They from a 1977 survey of users of nonrevolving credit could, of course, avoid teaser rates altogether by (memo items in table 4). It seems that credit and ignoring the mailings that promote them; consecreditors are not viewed completely favorably, even quently, this survey finding may reflect concerns by users of the service, but that most users are favor- among consumers that card issuers have complicated ably inclined. promotions sufficiently that it is difficult to under- Many holders of bank-type cards in 2000 said that stand and accept advantageous offers when they are it would be helpful to include on their billing state- made. ment information about the length of time it would What emerges from these responses to opinion take to pay off the balance if only the minimum questioning, in sum, is a multifaceted set of attitudes payment were made each month. Exactness in such a about credit cards. Multifaceted opinions are not calculation assumes, of course, that the consumer especially surprising, given that consumers overall does not use the card during the repayment period seem to think that credit cards are both good and bad. and that the balance declines on schedule. If the They believe that finance percentage rates on outbalance were to fluctuate substantially, the calcula- standing balances are too high, are suspicious of how Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

630 Federal Reserve Bulletin • September 2000 personal information is used, and have relatively checked against the rates respondents actually pay, little confidence in other individuals who use credit researchers associated with the National Commission cards. When they imagine "the other guy" in contact on Consumer Finance in the 1970s devised the conwith card issuers, whose behavior is already suspect, cept of "awareness zones" to measure knowledge of they imagine possibly negative consequences, for APRs.8 If a respondent reports an APR within a range example, excessive credit use. When the focus shifts deemed, on the basis of a survey of current market to more-personal experience, however, they view the practices, to be reasonable, the respondent is characoutcome much more favorably, suggesting that actual terized as "aware"; if the respondent reports an APR problems with credit cards are not nearly as wide- outside the range or answers "do not know," the spread as consumers imagine them to be when they individual is characterized as "unaware." Although think about the population of largely unknown "oth- this is an inexact means of measuring awareness of ers." On balance, holders of bank-type credit cards in APRs on actual credit card accounts, it does make 2000 believe that credit cards are useful and that possible a broad look at the phenomenon as well as consumers are better off with them than without comparisons over time. them—despite concerns over the inability of "other "Awareness" of APRs on bank-type credit cards, (unknown) consumers" to exercise self-discipline as measured by the awareness-zones method, has and avoid overuse; these opinions seem to mirror increased sharply since implementation of the Truth earlier views about installment credit. Finally, con- in Lending Act in 1969 (table 5). In that year, only sumers believe that additional, and less-confusing, 27 percent of holders of bank-type credit cards interinformation about payments and rates would be viewed in a Federal Reserve survey were classified as useful. aware. Awareness more than doubled a year after implementation of the act and has continued to rise since then. Information about Credit Terms In 1969, 1970, and 1977, consumers were considered aware if they reported a rate greater than 12 per- In addition to attitudes, the January 2000 Survey of cent per year or within the range of 1 percent to Consumers specifically looked at consumers' knowl- 2 percent per month on the card they used most often. edge of credit terms and their views concerning the For the 2000 survey, the definition of "aware" was availability of information about terms. changed because rates on credit card balances in Assessing consumers' knowledge of credit terms many cases are below 12 percent per year—and and their use of that knowledge is not a straightfor- so-called teaser rates are even lower. Because a very ward matter. One question is which term or terms to low rate could not be automatically ruled out as the focus on. A second question is how, in an interview correct current rate, two definitions of awareness survey, to determine the accuracy of the consumer's were used in 2000. Under the broad definition, only knowledge. Since implementation of the Truth in those reporting that they did not know the rate were Lending Act, the annual percentage rate (APR) has considered "unaware." Under the narrow definition, been considered the most important term concerning those reporting a rate of less than 7.9 percent were the price of credit to be disclosed by creditors, and also considered unaware. (Using 7.9 percent as the consequently it has been the credit term studied most cutoff point may have resulted in an overestimation extensively. It is reasonable to assume that credit of unawareness, as some consumers may have actuusers must be aware of annual percentage rates if ally had a current, "teaser," rate below 7.9 percent: disclosure of this pricing information is to affect their Almost every answer lower than 7.9 percent offered behavior. An awareness of APRs does not necessarily by a respondent ended in .9—for example, 3.9 or mean that consumers will change their behavior, but behavioral change resulting from disclosure of APRs is highly unlikely if credit users are not aware of 8. See National Commission on Consumer Finance, Consumer Credit in the United States: The Report of the National Commission those rates.7 on Consumer Finance (Government Printing Office, 1972); Robert P. Because in interview surveys the annual percent- Shay and Milton P. Schober, Consumer Awareness of Annual Percentage Rates of Charge in Consumer Installment Credit: Before and After age rates reported by respondents typically cannot be Truth in Lending Became Effective, Technical Studies of the National Commission on Consumer Finance, vol. 1, no. 1 (Government Printing Office, 1973); George S. Day and William K. Brandt, A Study of 7. For discussion of this topic, see George S. Day, "Assessing the Consumer Credit Decisions: Implications for Present and Prospective Effects of Information Disclosure Requirements," Journal of Market- Legislation, Technical Studies of the National Commission on Coning, vol. 40 (April 1976), pp. 42-52. sumer Finance, vol. 1, no. 2 (Government Printing Office, 1973). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Cards: Use and Consumer Attitudes, 1970-2000 631 5. Awareness of annual percentage rates among holders of bank-type credit cards, selected years Percent aware 2000 Cardholder group 1969 1970 1977 Narrow definition Broad definition All holders of bank-type cards 27 63 71 85 91 Have a new card account in the past year 83 93 Have three or more cards 89 95 Have an outstanding balance greater than $1,500 after the most recent payment 90 96 Have transferred a balance to another account in the past year1 81 98 Hardly ever pay outstanding balance in full 90 96 Hardly ever pay more than the minimum1 82 88 Have paid a late fee in the past year 88 95 Have received a collection call in the past year1 80 81 Family's annual income is $40,000 to $74,999 .. 90 94 Respondent has high school diploma or some college, but not a degree 86 91 Respondent is 35 to 54 years old 87 92 NOTE. See text for definitions of "awareness." SOURCE. For 1969 and 1970, Federal Reserve Truth in Lending Surveys; for 1. Weighted sample size less than fifty. 1977, Survey of Consumer Finances; for 2000, Surveys of Consumers. . . . Not available. 6.9—a sign of a teaser rate. However, this inexacti- accounts are easy to remember).9 Other groups havtude on the lower side does not change conclusions ing relatively high awareness rates include those actuvery much.) The definition of the upper bound for the ally paying the rates, notably, consumers with an 2000 survey is of little practical importance, as only outstanding balance of more than $1,500 and those one respondent answered with a rate higher than who reported that they hardly ever pay their outstand- 25 percent (with a response of 28 percent, this indi- ing balance in full (for both groups, 96 percent). High vidual was counted as aware). awareness among these groups is not especially sur- Under the broad definition of awareness, 91 per- prising, as consumers who use the credit feature of cent of holders of bank-type credit cards in 2000 are credit cards, as opposed to just the payment feature, aware of the APR charged on the outstanding balance have a clear interest in knowing the cost of the on the bank-type card they use most often; under the additional service. narrow definition 85 percent are aware. Regardless Potentially as important as actual awareness is the of the definition used in 2000, it is clear that aware- perception of ease of obtaining information about ness of rates charged on outstanding balances, as credit terms. About two-thirds of consumers in the measured by the awareness-zones method, has risen 2000 survey who had bank-type credit cards said sharply since implementation of the Truth in Lending that obtaining information on credit terms is easy Act. (table 6). The proportion did not vary greatly or As with attitudes, awareness of rates varies by consistently with the way the respondents used credit. behavioral and demographic group. However, aware- Those who had an outstanding balance of more than ness exceeds 80 percent for all groups by both the $1,500 or had transferred a balance from one card to broad and narrow definitions. Groups tending to be another in the past year were somewhat less likely to less aware (based on the broad definition) include report ease in obtaining information, as were those the relatively small group of cardholders who had who had received a collection call. Conversely, those received a collection call in the past year (81 percent who had three or more cards, hardly ever paid more were aware) and those who hardly ever pay more than the minimum amount, or had income in the than the minimum amount on their account (88 per- middle range were slightly more likely to report ease cent). The group of cardholders who had transferred in obtaining information. a balance to another account within the past year registered the highest awareness rate (98 percent), 9. The large difference between the rates for the narrow and broad consistent with the belief that balance transfers are measures for this group and also for those with new accounts suggests more likely among rate-sensitive consumers (and that some respondents may have been reporting teaser rates and should be counted as aware under the narrow definition, as they were also with the belief that rates on newly transferred under the broad definition. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

632 Federal Reserve Bulletin • September 2000 6. Opinions about the availability of information about credit cards among holders of bank-type credit cards, 2000 Percent aware Information needed Information about credit terms for wise card use Cardholder group Very/somewhat easy Very difficult Card issuers to obtain to obtain provide enough MEMO: All families 67 8 40 All holders of bank-type cards 65 7 46 Have a new card account in the past year 63 8 47 Have three or more cards 69 4 44 Have an outstanding balance greater than $1,500 after the most recent payment 60 5 36 Have transferred a balance to another account in the past year1 58 14 42 Hardly ever pay outstanding balance in full 65 7 46 Hardly ever pay more than the minimum1 69 11 36 Have paid a late fee in the past year 62 12 36 Have received a collection call in the past year1 57 12 28 Family's annual income is $40,000 to $74,999 68 4 45 Respondent has high school diploma or some college, but not a degree 67 3 46 Respondent is 35 to 54 years old 63 8 48 1. Weighted sample size less than fifty. SOURCE. Surveys of Consumers. Only 8 percent of all families and 7 percent of the "other guy" effect discussed earlier might be holders of bank-type cards believe that obtaining exerting a negative bias. Some consumers might information on credit terms is very difficult. These believe that they personally have enough information proportions also vary according to consumer experi- but that other consumers, who can be counted on to ence and behavior. The proportion is highest for make mistakes when dealing with card issuers, do those who have transferred a balance in the past year, not. A question focused on the respondents' own those who hardly ever pay more than the minimum experiences might have produced a higher positive due on their accounts, those who have paid a late fee response. in the past year, and those who have received a To explore these possibilities, two indexes of overcollection call in the past year. However, in no case all attitudes—one of negativity toward the "other does the proportion rise as high as 15 percent of guy" and the other of positiveness about personal cardholders. experiences—were constructed from responses to The proportions of holders of bank-type cards reporting that obtaining information on terms is easy or difficult in 2000 is similar to the proportions in 7. Opinions about the ease of obtaining information about earlier surveys, although in the earlier years the focus credit terms, selected years, 1977-2000 was on credit generally rather than credit cards. The Percent proportion of all families indicating in earlier years Very/somewhat Group/year Very difficult that obtaining information on credit terms was very easy easy or somewhat easy ranged from 57 percent to All families 68 percent, and the proportion indicating that obtain- 1977 58 9 1981 68 7 ing information was very difficult never rose as high 1984 57 8 1993-4 63 7 as 10 percent (table 7). The proportion saying that 1997 59 9 obtaining information was easy was, in all but one 2000 67 8 year, higher among credit users than among all fami- Credit users1 1977 63 8 lies, and the proportion saying that obtaining informa- 1981 78 3 tion was very difficult was lower in every year. 1984 62 1 1993-4 72 5 The 2000 survey also asked whether credit card 1997 72 3 2000 65 7 companies "usually give enough information to NOTE. For 2000, ease of obtaining information about credit card terms; for people to enable them to use their credit cards all other years, information about credit terms. wisely." A bit under half (46 percent) of holders 1. For 1977, families with (closed-end) installment debt outstanding; for 1981, 1993-94, and 1997, families that had incurred (closed-end) installment of bank-type cards answered "yes" (table 6). This debt in the past year; for 1984, families that had made a purchase on the installfrequency seemed low in light of the widespread ment plan in the past year; for 2000, holders of bank-type credit cards. SOURCE. For 1977, Survey of Consumer Finances; for all other years, use of credit cards, raising the question of whether Surveys of Consumers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Credit Cards: Use and Consumer Attitudes, 1970-2000 633 statements about "card issuers and consumers in 8. Proportion of holders of bank-type credit cards general" and "card issuers and me" (see table 4). For believing that specific actions to provide more information would be helpful, 2000 each of the five statements in the former category, Percent which are framed to reflect negatively on issuers and consumers, a value of -2 was assigned to each Bank-type card holders who said All bank-type "strongly agree" response and a value of -1 was Action more information card holders assigned to each "agree" response; other responses would be helpful were assigned a value of zero. The values were then Clearly state interest rates and summed for each respondent, giving an index value changes in interest rates 35 19 within a range of -10 to zero for that respondent. The Clearly define fees and charges 15 8 respondents were then divided into two groups, Make fine print bigger 12 6 "strongly negative" (an index value of -7 through Offer credit counseling 12 6 -10, characterizing about 42 percent of holders of Provide more information bank-type cards) and all others. A similar but positive about overextension 14 8 index was constructed from the favorable responses Give information about costs to the statements about personal experiences ("card if only the minimum amount is paid 11 6 issuers and me" in table 4); and the respondents were All other responses 14 8 similarly divided into two groups, "strongly positive" (about 49 percent of holders of bank-type cards) NOTE. Respondents were allowed to answer with up to two responses. SOURCE. Surveys of Consumers. and all others. Respondents who were not strongly negative about quent that it is almost overwhelming. Those who said other consumers were in fact somewhat more likely that more information would be helpful simultato believe that card issuers give cardholders enough neously seem to be saying that they do not underinformation to enable them to use their credit cards stand the information already provided, as many of wisely; 52 percent of this group answered this way, the features they said would be helpful—clear statecompared with 46 percent of all cardholders. Of the ment of interest rates and changes in rates, and a clear group with a strongly positive index for personal definition of fees for cash advances and other serexperiences, 55 percent said issuers provide enough vices, for example—are already required by discloinformation (figures not in the tables). Although the sure regulations. Respondents indicating that credit differences are not dramatic, it does seem likely that counseling and information about overextension the "other guy" effect exerts a downward bias on would be useful could be expressing concern for views as to whether credit card issuers provide others as well as for themselves. enough information. Even with the possible downward bias, about two-fifths of all families in 2000 believe that creditors provide enough information.10 Information about Payoff Times Holders of bank-type credit cards who said either that card issuers do not provide enough information Some observers have proposed that the Truth in or that they do not know were also asked a follow-up Lending Act be amended to require card issuers to question: "What kind of information do you think disclose to cardholders the period of time necessary would be helpful?" The wording of the question to pay off a credit card balance if only the minimum permits thinking about other consumers as well as amount is paid each month. Consumers indicate that more personally. The responses suggest a concern they would like to have this information. However, about the clarity of already available information precision in such a figure would imply that the con- (table 8), raising a question as to whether the required sumer would not add to the balance in subsequent information provided now is so extensive and fre- months (an assumption that also might be disclosed). If the consumer makes the minimum payment but continues to use the card, and the balance fluctuates 10. It is also possible to examine the association of strongly negasubstantially, the disclosure would in many cases be tive and positive attitudes with overall beliefs that credit cards are good or bad (the measurement in table 3). Notably, 55 percent of those inaccurate. Of course, some consumers who rarely in the strongly negative group (that is, those who expressed negativity pay the balance in full might, nonetheless, benefit on the questions about consumers) believe that credit cards are from an imperfect glimpse of the length of time "bad" (a percentage much higher than that for the population as a whole), compared with 35 percent of those in the strongly positive necessary to repay in full. group (that is, those who feel positive about their personal experi- To learn about consumers' behavior with respect to ences) (much lower than the percentage for the population as a whole). paying balances and the likelihood of their ceasing to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

634 Federal Reserve Bulletin • September 2000 use the card after paying only the minimum amount, only the minimum payment each month would be questions on this subject sponsored by the Federal card users who pay the minimum and then do not Reserve were asked in the monthly Surveys of Con- make additional charges (as noted, if they continued sumers undertaken by the Survey Research Center of to use the accounts, the length of time to repay would the University of Michigan in the summer of 1999, change). Survey findings indicate that 9 percent of and identical questions sponsored by the Credit holders of bank-type cards are in this category. If Research Center were included in the Surveys of only those who say they hardly ever pay more than Consumers in January 2000. In all, 2,000 consumers the minimum are considered, the proportion who were questioned. Findings that 73 percent had a report that they stop using the card falls to 4 percent credit card of some type and 69 percent had a bank- of holders of bank-type cards. type card correspond well with results of the 1998 Survey of Consumer Finances. Just over one-third (35 percent) of holders of bank- CONCLUSION type cards said they hardly ever pay their balance in full, somewhat higher than the 27 percent found in The holding and use of general-purpose credit cards the 1998 Survey of Consumer Finances. Nine percent with a revolving feature, as well as balances outstandof cardholders reported that they sometimes pay more ing, have increased substantially over the past three than the minimum amount due, and only 7 percent decades. These "bank-type" credit cards are, to some said they hardly ever pay more than the minimum. extent, a substitute for the installment-purchase plans formerly offered by retail stores. Consumers apparently like the convenience associated with card-based Card-related behaviors among holders of bank-type open-end credit lines, but they also express concerns. credit cards, 1999 and 2000 Some of their concerns may arise from personal Behavior Percent experiences, but some also apparently come from perceptions of the difficulties of other consumers. Hardly ever pay outstanding balance in full 35 Sometimes pay more than the minimum 9 Many consumers, by one measure of one important Hardly ever pay more than the minimum 7 credit cost term, are aware of the costs associated Sometimes or hardly ever pay more than with the use of revolving credit, and most consumers the minimum, and do not use the card if making minimum payment 9 say that obtaining information on credit card terms is Hardly ever pay more than the minimum, and do not use the card if making not very difficult. Responses to consumer interviews minimum payment 4 suggest that attitudes toward credit cards and card SOURCE. Surveys of Consumers, June-August 1999 and January 2000. companies are similar to attitudes about closed-end credit in an earlier generation. Credit and creditors As discussed earlier, those who would benefit most are never universally popular, it seems, even among directly from information about the length of time it users, and technological change in credit issuance has would take to pay off a revolving account by making not altered this observation. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 635 Treasury and Federal Reserve Foreign Exchange Operations This report, presented by Peter R. Fisher, Executive WEAKENING OF THE EURO AND YEN Vice President, Federal Reserve Bank of New York, AGAINST THE DOLLAR DURING THE FIRST and Manager, System Open Market Account, de- HALF OF THE QUARTER scribes the foreign exchange operations of the U.S. Department of the Treasury and the Federal Reserve During the first half of the quarter, the dollar appreci- System for the period from April 2000 through June ated against most major currencies as market partici- 2000. Laura Sarlo was primarily responsible for pre- pants reaffirmed expectations that U.S. economic paring the report. growth would continue to outpace that of other major economies, including the euro area, and as U.S. asset markets continued to be perceived as generally attrac- The dollar ended the second quarter little changed tive investment opportunities. against the euro and 3.1 percent stronger against the yen. The dollar initially appreciated as much as Data released during this time indicated that the 5.9 percent and 6.2 percent against the euro and yen, U.S. economy grew 5.4 percent year-on-year during respectively, but slipped midquarter as expectations the first quarter, while euro-area fourth-quarter gross for the U.S. economy moderated. On a trade-weighted domestic product rose 3.1 percent; and a June 9 basis, the dollar ended the period modestly stronger, release indicated that first-quarter euro-area economic having risen 1.3 percent against the currencies of growth was 3.2 percent year-on-year. In addition, the major U.S. trading partners. The U.S. monetary surveys reflected global investors' preference for authorities did not intervene in the foreign exchange maintaining lower levels of exposure to euro-area markets during the quarter. assets or to further reduce euro holdings. Traders also suggested that euro sales related to merger and acqui- At the beginning of the quarter, weakness in techsition activity may have increased demand for other nology shares led declines in U.S. equity markets as currencies. Additionally, euro-area political developthe Nasdaq fell 27.4 percent during the first two ments, including the resignation of Italian Prime Minweeks of April. The equity markets' decline reportister Massimo D'Alema and further tension between edly fostered some flows into U.S. Treasury securi- Austria and its European Union partners, may have ties, and two-year yields fell 24 basis points during dampened sentiment toward the euro. the same period. However, economic data released in April were widely interpreted as reflecting a pattern of strong growth along with some inflationary pres- 1. The euro and the yen against the dollar, 2000:Q2 sure, as retail sales and producer and consumer price Dollars per euro Yen per dollar indexes for March had exceeded expectations. Market participants anticipated further rate increases, raising consensus expectations for a May 16 tighten- I.OO Dollar-yen A /^ 105 ing to 25 and then to 50 basis points. After its May 16 meeting, the Federal Open Market Committee / (FOMC) announced a 50-basis-point increase in the federal funds target rate, raising it to 6.50 percent. A/ Immediately after the meeting, the dollar appreciated .90 — Euro-dollar \/ — 95 1.1 percent against the euro but was little changed against most other major currencies. Later in the 1 1 i 1 quarter, economic data were widely interpreted as Apr. May June suggesting signs of moderation in the U.S. economy, 2000 and they contributed to a gradual depreciation of the NOTE. In this and the charts that follow, the data are for business days except dollar from its earlier highs. as noted. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

636 Federal Reserve Bulletin • September 2000 After starting the period at $0.9555, the euro fell 3. The trade-weighted dollar against major currencies, to $0.8845 intraday on May 4, the lowest level since 2000:Q2 its January 1999 launch. The euro then rebounded as Index. March 1973 = 100 markets responded to numerous comments by euroarea senior officials regarding the prospects for intervention. Implied volatility in one-month euro-dollar — — 102 options rose to a high of 15.1 percent on May 5. The yen weakened 1.9 percent against the dollar — *\ — 98 during the first two weeks of the quarter. After Foreign Prime Minister Keizo Obuchi became incapaci- — — 94 tated on the first day of the period and the March — 90 Tankan report indicated an improvement in business sentiment and a smaller-than-expected decline in 1 1 1 1 planned capital expenditures, Japanese monetary Apr. May June authorities reportedly sold yen against other curren- 2000 cies. The yen weakened intraday from ¥102.82 to ¥105.65 against the dollar. For the remainder of the downward their forecasts for further monetary tightsecond quarter, the yen weakened a further 1.2 perening. The implied yield on the July federal funds cent against the dollar although it appeared little futures contract declined 19 basis points from midaffected by the change in the cabinet and the June 25 May to the end of the quarter. During this period, legislative election. Declines in the Nikkei and net market participants reassessed the probability of an portfolio investment outflows during the quarter may FOMC rate increase at the June 28 meeting and have also contributed to the yen's depreciation. began to debate the degree of additional tightening expected before the year-end. The revision in policy MODEST DEPRECIATION OF THE DOLLAR expectations, as well as a series of strong first-quarter DURING THE SECOND HALF OF THE QUARTER earnings reports, boosted U.S. equities, with the Nasdaq gaining 12.4 percent between May 15 and the Beginning in late May, many market participants end of the quarter. perceived a moderating trend in U.S. economic Growing expectations for moderating U.S. ecogrowth, as reflected in several economic data re- nomic growth also contributed to the appreciation of leases. Among these data releases were the weaker- a broad range of currencies against the dollar. On a than-expected National Association of Purchasing trade-weighted basis, the dollar declined 1.9 percent Managers and Chicago Purchasing Managers Index in June against the currencies of the major U.S. surveys, the employment report and the consumer trading partners. After June 1, the Canadian dollar price index for May, and retail sales data. This shift and British pound strengthened 0.7 percent and in growth expectations prompted many to revise 1.5 percent, respectively, against the U.S. dollar as 2. Yields implied on U.S. interest rate futures contracts, 4. The Canadian dollar and the British pound 2000:Q2 against the U.S. dollar, 2000:Q2 Percent Canadian dollar per U.S. dollar British pound per U.S. dollar 1.60 — — .675 1.55 — — .650 Pound 1.50 <V — .625 1.45 —^ — .600 Canadian dollar 1.40 — — .575 1 1 1 1 Apr. May June Apr. May June 2000 2000 SOURCE. Bloomberg L.P. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 637 market participants revisited forecasts for interest 6. Yields on short-term Japanese fixed-income securities, rate differentials. 2000:Q2 In late May, the euro began a reversal of its April depreciation. Demand for the euro appeared to grow as short-term investors reportedly established long euro positions and some longer-term investors began buying the euro on dips. This retracement was also supported by the release of stronger-than-expected euro-area economic data, including euro-area industrial production and national consumer price indexes for March. Increases in M3 solidified expectations that the European Central Bank (ECB) would tighten monetary policy, although the June 8 announcement of a 50-basis-point rate increase, to 4.25 percent, Apr. May June exceeded market expectations. Some market partici- 2000 pants suggested that the expectation for potential SOURCE. Bloomberg L.P. narrowing of the interest rate differential between the United States and the euro area supported the euro the near-zero interest rate policy, a background factor against the dollar. During the quarter, the spread throughout the quarter, intensified after mid-May. between two-year dollar and euro swap rates nar- Comments by Bank of Japan officials contributed rowed 55 basis points, to 190 basis points. to some participants' estimations that the Bank of However, the euro did not appreciate after the Japan's Policy Board was increasingly likely to June 8 ECB announcement and subsequent official repeal the near-zero interest rate policy, perhaps as comments, which were interpreted as a signal that early as July. Yields on six-month Japanese Treathe ECB would not undertake any additional rate sury bills rose sharply, increasing from 0.06 to increases until September. Late in the period, market 0.18 percent. participants reconsidered such expectations after the Although the yen appreciated on a short-term basis release of higher-than-expected national and euroon days when the possible end of the near-zero area producer and consumer price indexes for June, interest rate policy was a market focus, the dollaralong with continued increases in oil prices. Rising yen exchange rate largely remained above the ¥105 shorter-dated yields did not appear to support the level during the period. Widespread market concern currency, which retreated from its quarter-high close that yen appreciation beyond ¥105 per dollar might of $0.9655 on June 16 to end the period at $0.9537. prompt official action in currency markets may have Compared with the euro, the yen appreciated more supported the dollar against the yen. Ongoing conmodestly against the dollar during the second half of cern about the Japanese corporate sector, marked by the quarter. Market discussion of a possible end to several notable bankruptcies and an absence of a pickup in bank lending, may also have limited the Japanese currency's appreciation. The June 25 elec- 5. Yields implied on euro-area interest rate futures contracts, tion success of the Liberal Democratic Party led by 2000:Q2 Prime Minister Yoshiro Mori appeared to have little effect on the currency. Percent December euribor contract 5.2 ELECTION CONCERNS SWAY MEXICAN ASSETS 5.0 The dollar appreciated 5.8 percent against the Mexi- 4.8 can peso as the peso weakened against a broad range of currencies before the July 2 presidential election. 4.6 Yields on short-dated Mexican debt instruments rose September euribor contract 4.4 as investors sought to offset the additional perceived event risk and as the Banco de Mexico tightened monetary conditions by increasing the shortage of reserves in the banking system. Longer-dated yields rose more modestly, remaining within recent ranges. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

638 Federal Reserve Bulletin • September 2000 7. The Mexican peso against the U.S. dollar, 2000:Q2 of the quarter, the current values of euro and Japanese yen reserve holdings totaled $15.5 billion for the Pesos per dollar Federal Reserve System and $15.5 billion for the Treasury's Exchange Stabilization Fund. The U.S. monetary authorities invest all their foreign currency — / ^ — 9.75 balances in various instruments that yield marketrelated rates of return and have a high degree of - — 9.25 liquidity and credit quality. To the extent practicable, these investments are split evenly between the Federal Reserve System and the Exchange Stabilization — — 8.75 Fund. A significant portion of the balances is invested 1 1 1 in German and Japanese government securities Apr. May June 2000 held directly or under repurchase agreement. Government securities held under repurchase agreement SOURCE. Bloomberg L.P. are arranged either through transactions executed The Mexican sub-index of the J.R Morgan Emerging directly in the market or through agreements with Market Bond Index Plus spread over U.S. Treasuries official institutions. Foreign currency reserves are rose from 354 to 381 basis points, underperforming also invested in deposits at the Bank for International the broader index by 50 basis points. Settlements and in facilities at other official institutions. As of June 30, direct holdings of foreign government securities totaled $8.2 billion, split evenly TREASURY AND FEDERAL RESERVE FOREIGN between the two authorities. Foreign government EXCHANGE OPERATIONS securities held under repurchase agreement totaled The U.S. monetary authorities did not undertake any $13.3 billion at the end of the quarter and were also intervention operations during the quarter. At the end split evenly between the two authorities. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 639 1. Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 2000:Q2 Millions of dollars Quarterly changes in balances, by source BBaallaannccee,, BBaallaannccee,, IItteemm MMaarr.. 3311,, 22000000 Net purchases Effect of Investment Currency Interest JJuunnee 3300,, 22000000 and sales1 sales2 income ad v j a u l s u t a m ti e o n n t s3 an a d c c o ru th a e l r4 FEDERAL RESERVE SYSTEM OPEN MARKET ACCOUNT (SOMA) Euro 6,597.4 0.0 0.0 58.6 -18.5 6,637.5 Japanese yen 9.171.4 0.0 0.0 5.8 -299.3 8,877.9 Total 15,768.7 0.0 0.0 64.4 -317.7 15,515.4 Interest receivables (net)5 34.3 .2 34.5 Other cash flow from investments4 4.6 4.6 Total 15,803.0 0 0 64.4 -317.7 4.8 15,554.5 U.S. TREASURY EXCHANGE STABILIZATION FUND (ESF) Euro 6,594.5 0.0 0.0 58.6 -18.5 6,634.7 Japanese yen 9,171.4 0.0 0.0 5.8 -299.4 8,877.8 Total 15,765.9 0.0 0.0 64.4 -317.8 15,512.5 Interest receivables5 59.8 -3.4 56.4 Other cash flow from investments4 4.7 4.7 Total 15,825.7 0 0 64.4 -317.8 1.3 15,573.6 NOTE. Figures may not sum to totals because of rounding. 3. Foreign currency balances are marked to market monthly at month-end 1. Purchases and sales for the purpose of this table include foreign cur- exchange rates. rency sales and purchases related to official activity, swap drawings and repay- 4. Values are cash flow differences from payments and collection of funds ments, and warehousing. between quarters. 2. This figure is calculated using marked-to-market exchange rates; it 5. Interest receivables for the ESF are revalued at month-end exchange rates. represents the difference between the sale exchange rate and the most recent Interest receivables for the Federal Reserve System are carried at average cost revaluation exchange rate. Realized profits and losses on sales of foreign cur- of acquisition and are not marked to market until interest is paid. rencies, computed as the difference between the historical cost-of-acquisition . . . Not applicable. exchange rate and the sale exchange rate, are reflected in table 2. 2. Net profits or losses (-) on U.S. Treasury 3. Reciprocal currency arrangements, June 30, 2000 and Federal Reserve foreign exchange operations, Millions of dollars based on historical cost-of-acquisition exchange rates, 2000:Q2 Institution Amount of Outstanding, facility June 30, 2000 Millions of dollars Reciprocal currency Federal U.S. Treasury arrangements Reserve Exchange Period and item System Open Stabilization BBaannkk ooff CCaannaaddaa 22,,000000 00..00 Market Account Fund BBaannkk ooff MMeexxiiccoo 33,,000000 00..00 Valuation profits and losses on TToottaall 55,,000000 00..00 outstanding assets and liabilities, Mar. 31, 2000 Federal Reserve and U.S. Treasury Euro -851.1 -1,067.8 Exchange Stabilization Fund Japanese yen -2,126.9 -2,339.1 currency arrangements Total -2,978.0 -3,406.9 BBBaaannnkkk ooofff MMMeeexxxiiicccooo 33,,000000 00..00 Realized profits and losses TTToootttaaalll 33,,000000 00..00 from foreign currency sales, Mar. 31, 2000-June 30, 2000 Euro 0.0 0.0 Japanese yen 0.0 0.0 Total 0.0 0.0 Valuation profits and losses on outstanding assets and liabilities, June 30, 2000 Euro -869.6 -1,086.3 Japanese yen 1,823.3 2,044.4 Total 962.7 958.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

640 Staff Studies The staff members of the Board of Governors of the necessarily indicate concurrence by the Board of Federal Reserve System and of the Federal Reserve Governors, by the Federal Reserve Banks, or by Banks undertake studies that cover a wide range of members of their staffs. economic and financial subjects. From time to time, Single copies of the full text of each study are the studies that are of general interest are published available without charge. The titles available are in the Staff Studies series and summarized in the shown under "Staff Studies" in the list of Federal Federal Reserve Bulletin. The analyses and con- Reserve Board publications at the back of each clusions set forth are those of the authors and do not Bulletin. STUDY SUMMARY BANK MERGERS AND BANKING STRUCTURE IN THE UNITED STATES, 1980-98 Stephen A. Rhoades The U.S. banking industry experienced a sustained from 1980 to 1998. Merger activity remained at a and unprecedented merger movement from 1980 to high level throughout most of the period. Neverthe- 1998. During that period, approximately 8,000 bank less, the number of banking offices continued to grow mergers occurred, involving about $2.4 trillion in despite the large decline in the number of banks and acquired assets. The 1990s, especially 1994-98, was the burgeoning of ATMs. Concentration of U.S. bank a period of numerous large bank mergers, including deposits among the largest banks increased greatly, several that were among the largest in U.S. banking especially from 1994 to 1998, when a number of history. This study describes various aspects of that exceptionally large mergers occurred. Concentration bank merger activity and some of the changes in U.S. increased substantially in many local banking marbanking structure and performance that took place kets, especially in large metropolitan areas, where during 1980-98. concentration tended to be relatively low. Initial sta- With respect to bank merger activity, the study tistical tests indicate that bank mergers and a decline examines the number and asset size of the acquiring in the number of banks have played a role in increasand acquired banks, by year and state; the identities ing local market concentration. At the same time, the and sizes of the parties involved in large mergers; the study suggests that "switching costs"—that is, the types of mergers (horizontal and market extension), costs customers incur to change banks—are an increasingly important characteristic of retail banking. markets (urban and rural), and corporate form of Because bank competition within local market areas the acquirers (independent banks and bank holding directly affects retail customers, any trends toward companies); and the number of mergers and related increasing concentration and higher switching costs assets approved by each federal bank regulator. With suggest that antitrust laws may become a constraint respect to U.S. banking structure and performance, on more mergers than in the past. These tendencies the study examines the change in the number of suggest that divestitures will likely become a public banks and offices, the number of automated teller policy remedy that will be used with increasing machines (ATMs) and ATM transactions, nationwide frequency. • and local market banking concentration, and bank profits and stock prices. The study found that there was a very large decline in the number of banks and banking organizations Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

641 Industrial Production and Capacity Utilization for July 2000 Released for publication August 15 try rose 0.1 percentage point, to 82.3 percent, a level 0.3 percentage point above its 1967-99 average. Industrial production increased 0.4 percent in July. Manufacturing output increased 0.5 percent, and mining output rose 1.7 percent; but with unseasonably MARKET GROUPS mild July weather, electric utility output fell more than 3 percent. At 145.3 percent of its 1992 average, The output of consumer goods fell 0.5 percent in industrial production in July was 5.8 percent higher July, as the production of consumer durables fell than in July 1999. Capacity utilization for total indus- sharply. The production of automotive products Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity 150 140 130 120 110 100 1990 1992 1994 1996 1998 2000 Industrial production, market groups Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 155 155 145 145 135 135 125 125 115 115 105 105 95 95 Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 Nondurable goods and energy J I I I 1 1 I 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, July. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

642 Federal Reserve Bulletin • September 2000 Industrial production and capacity utilization, July 2000 Industrial production, index, 1992= 100 Percentage change Category 2000 20001 July 1999 to Apr.r Mayr Juner July r Apr.r Mayr Juner JulyP July 2000 Total 143.5 144.4 144.8 145.3 5.8 Previous estimate 143.5 144.3 144.6 .8 .5 .2 Major market groups Products, total2 131.0 131.0 131.0 131.3 .5 .0 .0 .3 3.5 Consumer goods 118.6 118.5 118.5 117.9 .5 -.1 .0 -.5 1.0 Business equipment 185.0 185.8 186.2 188.6 1.1 .5 .2 1.3 9.3 Construction supplies 139.2 1374 136.7 137.1 .2 -1.3 -.5 .3 2.9 Materials 165.0 167.6 168.7 169.6 1.2 1.6 .7 .5 9.5 Major industry groups Manufacturing 149.3 150.2 150.7 151.6 .6 .5 .4 .5 6.8 Durable 186.8 189.0 190.3 191.4 1.2 1.2 .7 .6 10.1 Nondurable 113.5 113.2 113.1 113.7 -.1 -.3 .0 .5 2.4 Mining 101.2 101.1 102.0 103.7 -.1 -.1 .9 1.7 6.1 Utilities 114.9 117.8 114.8 111.0 3.7 2.5 -2.5 -3.3 -7.4 Capacity utilization, percent MEMO Capacity, cceennttaaggee 1999 2000 cchhaannggee,, Average, Low, High, JJuullyy 11999999 1967-99 1982 1988-89 July Apr/ | May1" Juner JulyP ttoo JJuullyy 22000000 Total 82.0 71.1 85.4 80.7 82.0 82.3 82.2 82.3 3.8 Previous estimate 82.1 82.2 82.1 Manufacturing 81.1 69.0 85.7 79.7 81.3 81.4 81.4 81.6 4.2 Advanced processing 80.5 70.4 84.2 78.6 80.5 80.9 81.0 81.2 5.4 Primary processing . 82.4 66.2 88.9 82.9 83.8 83.3 83.0 83.2 1.6 Mining 87.3 80.3 88.0 81.3 84.7 84.7 85.6 87.2 -1.0 Utilities 87.5 75.9 92.6 93.9 89.2 91.3 88.9 85.9 1.3 NOTE. Data are 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. dropped 6.6 percent, a decline reflecting a large year. The production of industrial equipment was up decrease in motor vehicle assemblies. The output of noticeably, more than reversing the decline in June, other durable goods fell 0.6 percent; the sector, par- and was 4.6 percent higher than July 1999. With a ticularly household appliances, has been weak over drop in the production of both autos and light trucks, the past several months. During the first half of the output of transit equipment decreased for the this year, the output of consumer durable goods third consecutive month. Production of defense and was up 4V4 percent from a year earlier; with the large space equipment jumped 2.1 percent in July after an drop in July, output was just even with its level of upward-revised 1.5 percent increase in June; gains in July 1999. Nondurable consumer goods moved up the production of guidance and navigation equipment 0.3 percent in July; widespread increases in the pro- have accounted for much of the recent strength in this duction of non-energy products were partially offset sector. by a 2.0 percent drop in the output of energy goods After having declined sharply over the previous as mild July weather reduced residential sales of two months, the index for construction supplies electricity. increased 0.3 percent in July. The output of durable The production of business equipment rose 1.3 per- goods materials rose 1.1 percent, with another sizable cent, with most groups posting gains. Reflecting the increase in equipment parts, particularly semiconducongoing strength in the output of computers and tors. The production of nondurable goods materials communications equipment, the index for informa- stayed flat and continued the sluggish pattern that has tion processing equipment increased 2.6 percent after been evident this year. Driven largely by a weathera relatively small rise in June; gains in this sector related decline in electricity generation, the output of have averaged about PA percent per month so far this energy materials dropped 0.8 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 643 INDUSTRY GROUPS years, primarily 1997 through 1999, and the modified methods affect data from 1992 onward. Manufacturing output advanced 0.5 percent in July, a This statistical release will be redesigned with the rise similar to the increases over the past few months. release of the revision. More special aggregates will Excluding motor vehicles and parts, the gain in July be added, but some detailed industry data will be was 0.9 percent. The production of both durables available only on the Federal Reserve Board's public and nondurables posted strong increases. The 0.6 per- web site. Additional details regarding the redesign cent gain in durables was once again led by high- will be provided next month. technology equipment and parts; however, the pro- This regular updating of source data for IP will duction of motor vehicles and parts plunged include annual data from the following reports of the 5.5 percent. Iron and steel output fell 0.7 percent and, Bureau of the Census: the 1997 Census of Manufacon balance, has eased over the past few months. The tures, the 1998 Annual Survey of Manufactures, and production of nondurables, which was unchanged in selected editions of its 1998 and 1999 Current Indus- June, advanced 0.5 percent. Strong rebounds in pro- trial Reports. Annual data from the U.S. Geological duction at many industries, most notably petroleum Survey on metallic and nonmetallic minerals (except and apparel, along with further increases in rubber fuels) for 1998 and 1999 will also be introduced. The and plastics and printing and publishing, accounted updating will also include revisions to the monthly for most of the output gain. The overall factory indicator for each industry (either physical product operating rate rose 0.2 percentage point, to 81.6 per- data, production-worker hours, or electric power cent, with small increases in both advanced- usage) and revised seasonal factors. processing and primary-processing industries. Capacity and capacity utilization will be revised to Production at mines increased 1.7 percent after incorporate preliminary data from the 1999 Survey of having risen 0.9 percent in June. The utilization rate Plant Capacity of the Bureau of the Census, which at mines increased to 87.2 percent, a bit below its covers manufacturing, along with other new data on long-run average. Output at utilities, which dropped capacity from the U.S. Geological Survey, the Depart- 2.5 percent in June, moved down another 3.3 per- ment of Energy, and other organizations. The statiscent in July; the operating rate at utilities fell to tics on the industrial use of electric power will incor- 85.9 percent. porate additional information received from utilities for the past few years and will include some data from the 1997 Census of Manufactures and 1998 REVISION OF INDUSTRIAL PRODUCTION AND Annual Survey of Manufactures. CAPACITY UTILIZATION Aggregate industrial production indexes have been built as annually weighted chain-type indexes, begin- In November the Federal Reserve Board will publish ning with data in 1977; the weights are currently a revision to the index of industrial production (IP), changed at the middle of every year. With the coming the related measures of capacity and capacity utiliza- revision, the weights will change every month, rather tion, and industrial use of electric power. The updated than once a year, beginning with data for 1992. measures will reflect both the incorporation of newly Once the revision is published, it will also be available, more comprehensive source data typical of made available on the Board's web site (http:// annual revisions and, for some series, the introduc- www.federalreserve.gov/releases/gl7). The revised tion of improved compilation methods. The revision data will also be available through the web site of the will also include a refinement of the method used to Department of Commerce. Further information on aggregate the individual series in the production and these revisions is available from the Board's Induscapacity indexes. The new source data are for recent trial Output Section (telephone 202-452-3197). • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

644 Statements to the Congress Statement by Patrick M. Parkinson, Associate Direc- deterring market manipulation and protecting investor, Division of Research and Statistics, Board of tors against fraud and other unfair practices. In the Governors of the Federal Reserve System, before the case of financial derivatives transactions involving Subcommittee on Finance and Hazardous Materials professional counterparties, the PWG concluded of the Committee on Commerce, U.S. House of Repre- that regulation was unnecessary for these purposes sentatives, July 12, 2000 because financial derivatives generally are not readily susceptible to manipulation and because professional I am pleased to be here to present the Federal Reserve counterparties can protect themselves against fraud Board's views on the Commodity Futures Modern- and unfair practices. Consequently, the PWG recomization Act of 2000 (H.R. 4541). My testimony today mended that financial OTC derivatives transactions will be quite similar to testimony that Chairman between professional counterparties be excluded Greenspan and I presented last month to committees from coverage of the CEA. Furthermore, it recomin the Senate and House respectively. The Board mended that these transactions between professional continues to believe that such legislation moderniz- counterparties be excluded even if they are executed ing the Commodity Exchange Act (CEA) is essential. through electronic trading systems. Finally, the PWG To be sure, the Commodity Futures Trading Commis- recommended that transactions that were otherwise sion (CFTC) has recently proposed issuing regulatory excluded from the CEA should not fall within the exemptions that would reduce legal uncertainty about ambit of the act simply because they are cleared. The the enforceability of over-the-counter (OTC) deriva- PWG concluded that clearing should be subject to tives transactions and would conform the regulation government oversight but that such oversight need of futures exchanges to the realities of today's mar- not be provided by the CFTC. Instead, for many ketplace. These administrative actions by no means types of derivatives, oversight could be provided by obviate the need for legislation, however. The great- the Securities and Exchange Commission (SEC), the est legal uncertainty affecting OTC derivatives is in Office of the Comptroller of the Currency, the Fedthe area of securities-based transactions, to which the eral Reserve, or a foreign financial regulator that the CFTC's exemptive authority does not extend. Fur- appropriate U.S. regulator determines to have satisthermore, as events during the past few years have fied its standards. clearly demonstrated, regulatory exemptions carry The provisions of H.R. 4541 that address OTC the risk of amendment by future commissions. If our derivatives are generally consistent with the PWG's derivatives markets are to remain innovative and conclusions. At the margin, the provisions differ from competitive internationally, they need the legal and those recommended by the PWG in terms of the regulatory certainty that only legislation can provide. range of counterparties covered by the exclusions. In my remarks today I shall focus on three of the However, these differences reflect reasonable judgareas that the legislation covers: (1) OTC derivatives, ments regarding the types of counterparties that can (2) regulatory relief for U.S. futures exchanges, and protect themselves against fraud and unfair practices. (3) repeal of the Shad-Johnson prohibition of single- Therefore, the Federal Reserve Board believes it stock futures. would be appropriate to enact these provisions. OTC DERIVATIVES REGULATORY RELIEF FOR U.S. FUTURES EXCHANGES In its November 1999 report, Over-the-Counter Derivatives and the Commodity Exchange Act, the The PWG did not make specific recommendations President's Working Group on Financial Markets about the regulation of traditional exchange-traded (PWG) concluded that OTC derivatives transactions futures markets that use open outcry trading or that should be subject to the CEA only if necessary allow trading by retail investors. Nevertheless, it to achieve the public policy objectives of the act— called for the CFTC to review the existing regulatory Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

645 structures, particularly those applicable to financial of the underlying securities markets and regulatory futures, to ensure that they remain appropriate in arbitrage are resolved. The Board believes that such light of the objectives of the CEA. In February, the instruments should be allowed to trade on futures CFTC published a report by a staff task force that exchanges or on securities exchanges, with primary provided a comprehensive review of its regulatory regulatory authority assigned to the CFTC or the framework and proposed sweeping changes to the SEC respectively. However, the SEC should have existing regulatory structure. Last month the CFTC authority over some aspects of trading of these prodissued a revised set of proposals for public comment. ucts on futures exchanges. The scope of the SEC's With some exceptions, the regulatory relief provi- authority can and should be resolved through negotiasions of H.R. 4541 are consistent with the CFTC's tions between the CFTC and the SEC. The Congress proposals. should continue to urge the two agencies to settle Using the same approach as the PWG, the CFTC their remaining differences. Whatever agreement they has evaluated the regulation of futures exchanges reach should then be incorporated through amendin light of the public policy objectives of deterring ments to H.R. 4541. In any event, the bill should market manipulation and protecting investors. When allow securities exchanges to compete with futures contracts are not readily susceptible to manipulation exchanges in listing single-stock futures. and access to the exchange is limited to sophisticated If it would facilitate repeal of the prohibition, the counterparties, the CFTC has proposed alternative Federal Reserve Board is willing to accept regularegulatory structures that would eliminate unneces- tory authority over levels of margin on single-stock sary regulatory burden and allow domestic exchanges futures, as provided in H.R. 4541, so long as the to compete more effectively with exchanges abroad Board can delegate that authority to the CFTC, the and with the OTC markets. More generally, the CFTC SEC, or an Intermarket Margin Board consisting proposes to transform itself from a frontline regula- of representatives of the three agencies. The Board tor, promulgating relatively rigid rules for exchanges, understands that the purpose of such authority would to an oversight agency, assessing exchanges' compli- be to preserve the financial integrity of the contract ance with more flexible core principles of regulation. market and thereby prevent systemic risk and to The Federal Reserve Board supports the general ensure that levels of margins on single-stock futures approach to regulation that was outlined in the and options are consistent. The Board would note CFTC's proposals. For some time the Board has been that, for purposes of preserving financial integrity arguing that the regulatory framework for futures and preventing systemic risk, margin levels on futures trading, which was designed for the trading of grain and options should be considered consistent, even if futures by the general public, is not appropriate for they are not identical, if they provide similar levels of the trading of financial futures by large institutions. protection against defaults by counterparties, taking The CFTC's proposals recognize that the current into account any differences in (1) the price volatility "one-size-fits-all" approach to regulation of futures of the contracts, (2) the frequency with which margin exchanges is inappropriate, and they generally incor- calls are made, or (3) the period of time within which porate sound judgments regarding the degree of regu- margin calls must be met. lation needed to achieve the CEA's purposes. Similarly, the Federal Reserve Board generally supports the regulatory relief provisions of H.R. 4541. However, the CFTC has expressed con- CONCLUSION cerns that the bill unduly restricts its authority to correct violations of the core principles of regulation. H.R. 4541 reflects a remarkable consensus on the To facilitate expeditious passage of legislation, it thus need for legal certainty for OTC derivatives and may be prudent to address the CFTC's concerns regulatory relief for U.S. futures exchanges, issues about its enforcement authority. that have long eluded resolution. These provisions are vitally important to the soundness and competitiveness of our derivatives markets in what is an increasingly integrated and intensely competitive SINGLE-STOCK FUTURES global economy. The Federal Reserve Board trusts that the remaining differences regarding single-stock The PWG concluded that the current prohibition on futures can be resolved quickly, so that this important single-stock futures (part of the Shad-Johnson piece of legislation can be expedited through this Accord) can be repealed if issues about the integrity Congress. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

646 Federal Reserve Bulletin • September 2000 Statement by Patrick M. Parkinson, Associate Direc- professional counterparties, the PWG concluded tor, Division of Research and Statistics, Board of that regulation was unnecessary for these purposes Governors of the Federal Reserve System, before the because financial derivatives generally are not readily Committee on Banking and Financial Services, U.S. susceptible to manipulation and because professional House of Representatives, July 19, 2000 counterparties can protect themselves against fraud and unfair practices. Consequently, the PWG recom- I am pleased to be here to present the Federal Reserve mended that financial OTC derivatives transactions Board's views on the Commodity Futures Modern- between professional counterparties be excluded ization Act of 2000 (H.R. 4541). Much of my testi- from coverage of the CEA. Furthermore, it recommony today will repeat testimony that Chairman mended that these transactions between professional Greenspan and I have presented during the last few counterparties be excluded even if they are executed weeks to other committees in the Senate and the through electronic trading systems. Finally, the PWG House. recommended that transactions that were otherwise The Board continues to believe that such legis- excluded from the CEA should not fall within the lation modernizing the Commodity Exchange Act ambit of the act simply because they are cleared. The (CEA) is essential. To be sure, the Commodity PWG concluded that clearing should be subject to Futures Trading Commission (CFTC) has recently government oversight but that such oversight need proposed issuing regulatory exemptions that would not be provided by the CFTC. Instead, for many reduce legal uncertainty about the enforceability of types of derivatives, oversight could be provided by over-the-counter (OTC) derivatives transactions and the Securities and Exchange Commission (SEC), the would conform the regulation of futures exchanges to Office of the Comptroller of the Currency, the Fedthe realities of today's marketplace. These adminis- eral Reserve, or a foreign financial regulator that the trative actions by no means obviate the need for appropriate U.S. regulator determines to have satislegislation, however. The greatest legal uncertainty fied its standards. affecting OTC derivatives is in the area of securities- The provisions of H.R. 4541 that address OTC based transactions, to which the CFTC's exemptive derivatives are generally consistent with the PWG's authority does not extend. Furthermore, as events conclusions. Therefore, the Federal Reserve Board during the past few years have clearly demonstrated, believes it would be appropriate to enact these proviregulatory exemptions carry the risk of amendment sions. In addition, the Board recommends incorporatby future commissions. If our derivatives markets are ing into the legislation provisions that would enhance to remain innovative and competitive internationally, the Federal Reserve's enforcement authority with they need the legal and regulatory certainty that only respect to derivatives clearing organizations that seek legislation can provide. to organize as uninsured state member banks. Provi- In my remarks today, I shall focus primarily on sions should also be added that would clarify how three of the areas that the legislation covers: (1) OTC clearing organizations organized as uninsured state derivatives, (2) regulatory relief for U.S. futures member banks or Edge Act corporations would be exchanges, and (3) repeal of the Shad-Johnson pro- resolved in the event of their bankruptcy. hibition of single-stock futures. Before concluding, I shall also discuss the importance of legislation clarifying the treatment of derivatives and other REGULATORY RELIEF FOR U.S. FUTURES financial contracts in bankruptcy. EXCHANGES The PWG did not make specific recommendations OTC DERIVATIVES about the regulation of traditional exchange-traded futures markets that use open outcry trading or that In its November 1999 report, Over-the-Counter allow trading by retail investors. Nevertheless, it Derivatives and the Commodity Exchange Act, the called for the CFTC to review the existing regulatory President's Working Group on Financial Markets structures, particularly those applicable to financial (PWG) concluded that OTC derivatives transactions futures, to ensure that they remain appropriate in should be subject to the CEA only if necessary light of the objectives of the CEA. In February, the to achieve the public policy objectives of the act— CFTC published a report by a staff task force that deterring market manipulation and protecting inves- provided a comprehensive review of its regulatory tors against fraud and other unfair practices. In the framework and proposed sweeping changes to the case of financial derivatives transactions involving existing regulatory structure. Last month, the CFTC Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 647 issued a revised set of proposals for public comment. ucts on futures exchanges. The scope of the SEC's With some exceptions, the regulatory relief provi- authority can and should be resolved through negotiasions of H.R. 4541 are consistent with the CFTC's tions between the CFTC and the SEC. The Congress proposals. should continue to urge the two agencies to settle Using the same approach as the PWG, the CFTC their remaining differences. Whatever agreement they has evaluated the regulation of futures exchanges in reach should then be incorporated through amendlight of the public policy objectives of deterring ments to H.R. 4541. In any event, the bill should market manipulation and protecting investors. When allow securities exchanges to compete with futures contracts are not readily susceptible to manipulation exchanges in listing single-stock futures. and access to the exchange is limited to sophisticated If it would facilitate repeal of the prohibition, the counterparties, the CFTC has proposed alternative Federal Reserve Board is willing to accept regularegulatory structures that would eliminate unneces- tory authority over levels of margin on single-stock sary regulatory burden and allow domestic exchanges futures, as provided in H.R. 4541, so long as the to compete more effectively with exchanges abroad Board can delegate that authority to the CFTC, the and with the OTC markets. More generally, the CFTC SEC, or an Intermarket Margin Board consisting proposes to transform itself from a frontline regula- of representatives of the three agencies. The Board tor, promulgating relatively rigid rules for exchanges, understands that the purpose of such authority would to an oversight agency, assessing exchanges' compli- be to preserve the financial integrity of the contract ance with more flexible core principles of regulation. market and thereby prevent systemic risk and to The Federal Reserve Board supports the general ensure that levels of margins on single-stock futures approach to regulation that was outlined in the and options are consistent. The Board would note CFTC's proposals. For some time, the Board has that, for purposes of preserving financial integrity been arguing that the regulatory framework for and preventing systemic risk, margin levels on fufutures trading, which was designed for the trading of tures and options should be considered consistent, grain futures by the general public, is not appropriate even if they are not identical, if they provide similar for the trading of financial futures by large insti- levels of protection against defaults by counterpartutions. The CFTC's proposals recognize that the ties, taking into account any differences in (1) the current "one-size-fits-all" approach to regulation of price volatility of the contracts, (2) the frequency futures exchanges is inappropriate, and they gener- with which margin calls are made, or (3) the period ally incorporate sound judgments regarding the of time within which margin calls must be met. degree of regulation needed to achieve the CEA's purposes. FINANCIAL NETTING LEGISLATION Similarly, the Federal Reserve Board generally supports the regulatory relief provisions of The Federal Reserve Board continues to support the H.R. 4541. However, the CFTC has expressed conworking group's recommendations for amendments cerns that the bill unduly restricts its authority to to the U.S. Bankruptcy Code to support financial correct violations of the core principles of regulation. contract netting. Enactment of those amendments, To facilitate expeditious passage of legislation, it thus which this committee has introduced as H.R. 1161, may be prudent to address the CFTC's concerns would reduce uncertainty for market participants about its enforcement authority. about the disposition of their financial market contracts in the event one of the counterparties becomes insolvent. This reduced uncertainty should limit mar- SINGLE-STOCK FUTURES ket disruptions in the event of an insolvency, limit risk to federally supervised market participants, The PWG concluded that the current prohibition including insured depositories, and limit systemic on single-stock futures (part of the Shad-Johnson risk. The Board urges this committee to amend Accord) can be repealed if issues about the integrity H.R. 4541 to include the financial contract netting of the underlying securities markets and regulatory provisions of H.R. 1161. arbitrage are resolved. The Board believes that such instruments should be allowed to trade on futures exchanges or on securities exchanges, with primary CONCLUSION regulatory authority assigned to the CFTC or the SEC respectively. However, the SEC should have H.R. 4541 reflects a remarkable consensus on the authority over some aspects of trading of these prod- need for legal certainty for OTC derivatives and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

648 Federal Reserve Bulletin • September 2000 regulatory relief for U.S. futures exchanges, issues integrated and intensely competitive global economy. that have long eluded resolution. Likewise, the work- The Federal Reserve Board trusts that the remaining ing group's recommendations for amendments to the differences regarding single-stock futures can be Bankruptcy Code are the product of several years resolved quickly. However, if those differences of consensus building. These provisions are vitally cannot be resolved, that should not be allowed to important to the soundness and competitiveness of hold up passage by this Congress of these other our derivatives markets in what is an increasingly critical provisions. Statement by Alan Greenspan, Chairman, Board of net, this year. They attribute much of the slowing Governors of the Federal Reserve System, before the of consumer spending to this diminution of the wealth Committee on Banking, Housing, and Urban Affairs, effect through the spring and early summer. This U.S. Senate, July 20, 2000 (Chairman Greenspan view looks to equity markets as a key influence on presented identical testimony before the Committee the trend in consumer spending over the rest of this on Banking and Financial Services, U.S. House of year and next. Representatives, July 25, 2000.) Another factor said by some to account for the spending slowdown is the rising debt burden of I appreciate this opportunity to present the Federal households. Interest and amortization as a percent of Reserve's report on monetary policy. disposable income have risen materially during the The Federal Reserve has been confronting a com- past six years, as consumer and especially mortgage plex set of challenges in judging the stance of policy debt has climbed and, more recently, as interest rates that will best contribute to sustaining the strong and have moved higher. long-running expansion of our economy. The chal- In addition, the past year's rise in the price of oil lenges will be no less in coming months as we judge has amounted to an annual $75 billion levy by forwhether ongoing adjustments in supply and demand eign producers on domestic consumers of imported will be sufficient to prevent distortions that would oil, the equivalent of a tax of roughly 1 percent of undermine the economy's extraordinary performance. disposable income. This burden is another likely For some time now, the growth of aggregate source of the slowed growth in real consumption demand has exceeded the expansion of production outlays in recent months, though one that may prove potential. Technological innovations have boosted to be largely transitory. the growth rate of potential, but as I noted in my Mentioned less prominently have been the effects testimony last February, the effects of this process of the faster increase in the stock of consumer duraalso have spurred aggregate demand. It has been ble assets—both household durable goods and clear to us that, with labor markets already quite houses—in the last several years, a rate of increase tight, a continuing disparity between the growth of that history tells us is usually followed by a pause. demand and potential supply would produce disrup- Stocks of household durable goods, including motor tive imbalances. vehicles, are estimated to have increased at nearly A key element in this disparity has been the very a 6 percent annual rate over the past three years, a rapid growth of consumption resulting from the marked acceleration from the growth rate of the effects on spending of the remarkable rise in house- previous ten years. The number of cars and light hold wealth. However, the growth in household trucks owned or leased by households, for example, spending has slowed noticeably this spring from the apparently has continued to rise in recent years unusually rapid pace observed late in 1999 and early despite having reached nearly PA vehicles per housethis year. Some argue that this slowing is a pause hold by the mid-1990s. Notwithstanding their recent following the surge in demand through the warmer- slowing, sales of new homes continue at extraorthan-normal winter months and hence a reaccelera- dinarily high levels relative to new household formation can be expected later this year. Certainly, we tions. While we will not know for sure until the 2000 have seen slowdowns in spending during this near- census is tabulated, the surge in new home sales is decade-long expansion that have proven tempo- strong evidence that the growth of owner-occupied rary, with aggregate demand growth subsequently homes has accelerated during the past five years. rebounding to an unsustainable pace. Those who focus on the high and rising stocks of But other analysts point to a number of factors that durable assets point out that even without the rise in may be exerting more persistent restraint on spend- interest rates, an eventual leveling out or some tapering. One they cite is the flattening in equity prices, on ing off of purchases of durable goods and construc- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 649 tion of single-family housing would be expected. moving forward even with capital projects that appear Reflecting both higher interest rates and higher stocks quite profitable over the longer run. In addition, the of housing, starts of new housing units have fallen off direct negative effects of the sharp recent run-up in of late. If that slowing were to persist, some reduction energy prices on profits as well as on sales expecin the rapid pace of accumulation of household appli- tations may temporarily damp capital spending. ances across our more than a hundred million house- Despite the marked decline over the past decades in holds would not come as a surprise, nor would a the energy requirements per dollar of GDP, energy slowdown in vehicle demand so often historically inputs are still a significant element in the cost strucassociated with declines in housing demand. ture of many American businesses. Inventories of durable assets in households are just For the moment, the drop-off in overall economic as formidable a factor in new production as inven- growth to date appears about matched by reduced tories at manufacturing and trade establishments. The growth in hours, suggesting continued strength in notion that consumer spending and housing construc- growth in output per hour. The increase of production tion may be slowing because the stock of consumer worker hours from March through June, for example, durables and houses may be running into upside was at an annual rate of V2 percent compared with resistance is a credible addition to the possible expla- 3% percent the previous three months. Of course, we nations of current consumer trends. This effect on do not have comprehensive measures of output on a spending would be reinforced by the waning effects monthly basis, but available data suggest a roughly of gains in wealth. comparable deceleration. Because the softness in outlay growth is so recent, A lower overall rate of economic growth that did all of the aforementioned hypotheses, of course, must not carry with it a significant deterioration in probe provisional. It is certainly premature to make a ductivity growth obviously would be a desirable outdefinitive assessment of either the recent trends in come. It could conceivably slow or even bring to a household spending or what they mean. But it is clear halt the deterioration in the balance of overall demand that, for the time being at least, the increase in and potential supply in our economy. spending on consumer goods and houses has come As I testified before this committee in February, down several notches, albeit from very high levels. domestic demand growth, influenced importantly by In one sense, the more important question for the the wealth effect on consumer spending, has been longer-term economic outlook is the extent of any running IV2 to 2 percentage points at an annual rate productivity slowdown that might accompany a more in excess of even the higher, productivity-driven, subdued pace of production and consumer spending, growth in potential supply since late 1997. That gap should it persist. The behavior of productivity under has been filled both by a marked rise in imports as a such circumstances will be a revealing test of just percent of GDP and by a marked increase in domestic how much of the rapid growth of productivity in production resulting both from significant immigrarecent years has represented structural change as dis- tion and from the employment of previously unutitinct from cyclical aberrations and, hence, how truly lized labor resources. different the developments of the past five years have I also pointed out in February that there are limits been. At issue is how much of the current downshift to how far net imports—or the broader measure, our in our overall economic growth rate can be accounted current account deficit—can rise, or our pool of for by reduced growth in output per hour and how unemployed labor resources can fall. As a consemuch by slowed increases in hours. quence, the excess of the growth of domestic demand So far there is little evidence to undermine the over potential supply must be closed before the notion that most of the productivity increase of recent resulting strains and imbalances undermine the ecoyears has been structural and that structural produc- nomic expansion that now has reached 112 months, a tivity may still be accelerating. New orders for capi- record for peace or war. tal equipment continue quite strong—so strong that The current account deficit is a proxy for the the rise in unfilled orders has actually steepened increase in net claims against U.S. residents held by in recent months. Capital-deepening investment in foreigners, mainly as debt, but increasingly as equia broad range of equipment embodying the newer ties. So long as foreigners continue to seek to hold productivity-enhancing technologies remains brisk. ever-increasing quantities of dollar investments in To be sure, if current personal consumption outlays their portfolios, as they obviously have been, the slow significantly further than the pattern now in exchange rate for the dollar will remain firm. Indeed, train suggests, profit and sales expectations might be the same sharp rise in potential rates of return on scaled back, possibly inducing some hesitancy in new American investments that has been driving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

650 Federal Reserve Bulletin • September 2000 capital accumulation and accelerating productivity these trends toward supply and demand balance perin the United States has also been inducing for- sist, the ongoing need for ever-rising imports and for eigners to expand their portfolios of American securi- a further draining of our limited labor resources ties and direct investment. The latest data published should ease or perhaps even end. Should this favorby the Department of Commerce indicate that the able outcome prevail, the immediate threat to our annual pace of direct plus portfolio investment by prosperity from growing imbalances in our economy foreigners in the U.S. economy during the first quar- would abate. ter was more than two and one-half times its rate in But as I indicated earlier, it is much too soon to 1995. conclude that these concerns are behind us. We can- There has to be a limit as to how much of the not yet be sure that the slower expansion of domestic world's savings our residents can borrow at close to final demand, at a pace more in line with potential prevailing interest and exchange rates. And a narrow- supply, will persist. Even if the growth rates of ing of disparities among global growth rates could demand and potential supply move into better balinduce a narrowing of rates of return here relative to ance, there is still uncertainty about whether the those abroad that could adversely affect the propen- current level of labor resource utilization can be sity of foreigners to invest in the United States. But maintained without generating increased cost and obviously, so long as our rates of return appear to be price pressures. As I have already noted, to date, unusually high, if not rising, balance of payments costs have been held in check by productivity gains. trends are less likely to pose a threat to our prosper- But at the same time, inflation has picked up—even ity. In addition, our burgeoning budget surpluses the core measures that do not include energy prices have clearly contributed to a fending off, if only directly. Higher rates of core inflation may mostly temporarily, of some of the pressures on our balance reflect the indirect effects of energy prices, but the of payments. The stresses on the global savings pool Federal Reserve will need to be alert to the risks that resulting from the excess of domestic private invest- high levels of resource utilization may put upward ment demands over domestic private saving have pressure on inflation. been mitigated by the large federal budget surpluses Moreover, energy prices may pose a challenge to that have developed of late. containing inflation. Energy price changes represent In addition, by substantially augmenting national a one-time shift in a set of important prices, but by saving, these budget surpluses have kept real interest themselves generally cannot drive an ongoing inflarates at levels lower than they would have been tion process. The key to whether such a process could otherwise. This development has helped foster the get under way is inflation expectations. To date, investment boom that in recent years has contributed survey evidence, as well as readings from the Treagreatly to the strengthening of U.S. productivity and sury's inflation-indexed securities, suggests that economic growth. The Congress and the Administra- households and investors do not view the current tion have wisely avoided steps that would materially energy price surge as affecting longer-term inflation. reduce these budget surpluses. Continued fiscal disci- But any deterioration in such expectations would pline will contribute to maintaining robust expansion pose a risk to the economic outlook. of the American economy in the future. As the financing requirements for our ever-rising Just as there is a limit to our reliance on foreign capital investment needs mounted in recent years— saving, so is there a limit to the continuing drain beyond forthcoming domestic saving—real long-term on our unused labor resources. Despite the ever- interest rates rose to address this gap. We at the tightening labor market, as yet, gains in compensa- Federal Reserve, responding to the same economic tion per hour are not significantly outstripping gains forces, have moved the overnight federal funds rate in productivity. But as I have argued previously, up l3/4 percentage points over the past year. To have should labor markets continue to tighten, short of a held to the federal funds rate of June 1999 would repeal of the law of supply and demand, labor costs have required a massive increase in liquidity that eventually would have to accelerate to levels threat- would presumably have underwritten an acceleration ening price stability and our continuing economic of prices and, hence, an eventual curbing of ecoexpansion. nomic growth. The more modest pace of increase in domestic final By our meeting this June, the appraisal of all the spending in recent months suggests that aggregate foregoing issues led the Federal Open Market Comdemand may be moving closer into line with the rate mittee (FOMC) to conclude that, while some signs of of advance in the economy's potential, given our slower growth were evident and justified standing pat continued impressive productivity growth. Should at least for the time being, they were not sufficiently Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Statements to the Congress 651 compelling to alter our view that the risks remained CONCLUSION more on the side of higher inflation. As indicated in their forecasts, FOMC members The last decade has been a remarkable period of and nonvoting presidents expect that the long period expansion for our economy. Federal Reserve policy of continuous economic expansion will be extended through this period has been required to react to a over the next year and one-half, but with growth at a constantly evolving set of economic forces, often somewhat slower pace than over the past several at variance with historical relationships, changing years. For the current year, the central tendency of federal funds rates when events appeared to threaten Board members' and Reserve Bank presidents' fore- our prosperity, and refraining from action when that casts is for real GDP to increase 4 percent to 4xh per- appeared warranted. Early in the expansion, for cent, suggesting a noticeable deceleration over the example, we kept rates unusually low for an extended second half of 2000 from its likely pace over the first period, when financial sector fragility held back the half. The unemployment rate is projected to remain economy. Most recently we have needed to raise close to 4 percent. This outlook is a little stronger rates to relatively high levels in real terms in response than anticipated last February, no doubt owing prima- to the side effects of accelerating growth and related rily to the unexpectedly strong jump in output in the demand-supply imbalances. Variations in the stance first quarter. Mainly reflecting higher prices of energy of policy—or keeping it the same—in response to products than had been foreseen, the central tendency evolving forces are made in the framework of an for inflation this year in prices for personal consump- unchanging objective—to foster as best we can those tion expenditures also has been revised up somewhat, financial conditions most likely to promote sustained to the vicinity of 2Vi percent to 23A percent. economic expansion at the highest rate possible. Given the firmer financial conditions that have Maximum sustainable growth, as history so amply developed over the past eighteen months, the Com- demonstrates, requires price stability. Irrespective of mittee expects economic growth to moderate some- the complexities of economic change, our primary what next year. Real output is anticipated to expand goal is to find those policies that best contribute to a 3 XA percent to 33A percent, somewhat less rapidly non-inflationary environment and hence to growth. than in recent years. The unemployment rate is likely The Federal Reserve, I trust, will always remain to remain close to its recent very low levels. Energy vigilant in pursuit of that goal. • prices could ease somewhat, helping to trim PCE inflation next year to around 2 percent to 2Vz percent, somewhat above the average of recent years. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

652 Announcements PUBLIC HEARINGS SCHEDULED ON authorizes the Board to adjust the high-cost triggers PREDATORY PRACTICES IN HOME EQUITY that could affect the scope of the act's coverage, and LENDING MARKET it directs the Board to prohibit certain mortgage lending acts and practices if the Board makes the findings The Federal Reserve Board on July 20, 2000, invited required by the statute. consumers, consumer advocacy organizations, lend- The first hearing is scheduled for Thursday, ers, and other interested parties to participate in pub- July 27, 2000, at the Charlotte Branch of the Federal lic hearings on predatory practices in the home equity Reserve Bank of Richmond, 530 East Trade Street, lending market. Charlotte, N.C. The second is slated for Friday, Invited speakers will participate in panel discus- August 4, 2000, at the Federal Reserve Bank of sions focused on ways the Board might use its rule- Boston, 600 Atlantic Avenue, Boston, Mass. The writing authority to curb predatory practices in home third is scheduled for Wednesday, August 16, 2000, equity lending while preserving access to credit for at the Federal Reserve Bank of Chicago, 230 South borrowers with less-than-perfect credit ratings. Time LaSalle Street, Chicago, 111. The fourth hearing will will be reserved after the panel discussions for brief be held on Thursday, September 7, 2000, at the statements from other interested parties. Federal Reserve Bank of San Francisco, 101 Market The hearings are being conducted under the author- Street, San Francisco, Calif. ity of the Home Ownership and Equity Protection All hearings are scheduled from 9:00 a.m. to Act of 1994 (HOEPA), which imposes disclosure 4:30 p.m. and will begin with panel discussions by requirements and other limits on certain high-cost, invited speakers. Other interested parties may deliver home-secured loans. HOEPA was enacted in response oral statements of five minutes or less at a two-hour to reports of abusive lending practices by unscrupu- "open-mike" period starting at about 2:30 p.m. Writlous lenders making unaffordable home-secured loans ten statements of any length may be submitted for the to "house-rich but cash-poor borrowers." These cases record. Anyone interested in presenting an oral statefrequently involved elderly and sometimes unsophis- ment is asked to call the Board in advance of the ticated homeowners who were targeted for loans with hearing at (202) 452-3667. high rates and fees and repayment terms that were Written comments may be mailed to Jennifer J. difficult or impossible to meet. Often the transactions Johnson, Secretary, Board of Governors of the Fedinvolved fraud or unlawful misrepresentations by eral Reserve System, 20th Street and Constitution lenders or brokers. Avenue, N.W., Washington, DC 20551 or mailed Since HOEPA's enactment, the volume of home electronically to regs.comments@federalreserve.gov. equity lending has grown significantly, and this Comments are due by September 1, 2000. growth has been accompanied by an increase in subprime lending—lending to borrowers having lessthan-perfect credit histories and to other consumers PROPOSED ACTIONS who do not meet the underwriting standards of prime lenders. Because consumers who obtain subprime The Federal Reserve Board on July 31, 2000, mortgage loans may have fewer credit options than requested public comment on a proposed rule that other borrowers, they may be more vulnerable to would allow financial holding companies to act as a unscrupulous lenders or brokers. Accordingly, while "finder" by bringing together buyers and sellers of certainly not all subprime loans are predatory, the financial and nonfinancial products for transactions increase in the number of subprime loans has raised that the buyers and sellers themselves negotiate and concerns about the potential for a corresponding consummate. Comments will be accepted until Sepincrease in the number of predatory loans. tember 5, 2000. The hearings will seek public views about home The proposed rule, which was developed in consulequity lending in general but will focus specifically tation with the Secretary of the Treasury, would on ways the Board might use its authority. HOEPA allow financial holding companies to, among other Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

653 things, host an Internet marketplace consisting of • A Windows 95, 98, NT, or 2000 operating syslinks to the web sites of third-party buyers and sellers. tem (the program will not run on a Macintosh operat- The rule would also permit financial holding com- ing system) panies to operate a web site that allows buyers and • A level 486 processor or higher sellers to post information about the products and • 24 MB of free disk space on their hard drive services they are willing to buy and sell and to enter • Adobe Acrobat 3.0 or higher (for printing). into transactions among themselves. The Federal Reserve Board on July 7, 2000, The program takes about 25 minutes to download requested comment on proposed revisions to Regu- on a standard 56K modem. Once the program is lation E (Electronic Fund Transfers) to implement downloaded, it is self-extracting. Assistance with the provisions of the Gramm-Leach-Bliley Act (GLBA) downloading process is available by using the feedrequiring disclosure of automated teller machine back form on the Board's web site. (ATM) fees. Comments are due by August 18, 2000. Another new addition to the web site is the Guide The GLBA amends the Electronic Fund Transfer for Educators, a slide presentation with explanatory Act by requiring ATM operators that impose fees on notes for school and community educators. consumers who hold accounts at other institutions to The web site also provides an overview of a post a prominent and conspicuous notice of that fact closed-end lease, the most common type of vehicle on or near the ATM. Before the consumer is commit- lease used by the automotive industry, sample discloted to completing the transaction, ATM operators sure forms required in leasing transactions, and a must also disclose the existence of and the amount glossary of terms used in leasing. of the fee, either on the ATM screen or on a paper Other government agencies and organizations taknotice. Many financial institutions that impose ATM ing part in the "Keys to Vehicle Leasing" educafees already disclose the information required by the tional effort are the American Financial Services GLBA to satisfy existing regulatory and ATM net- Association (AFSA), the AFSA Education Foundawork requirements. tion, the Arizona Attorney General, the Association of Consumer Vehicle Lessors, the Cooperative Extension System, the Federal Trade Commission, the Florida Attorney General, the National Automobile NEW EDUCATION RESOURCE ON VEHICLE Dealers Association, and the National Vehicle Leas- LEASING FOR CONSUMERS ing Association. The brochure Keys to Vehicle Leasing: A Con- The Federal Reserve Board on August 2, 2000, sumer Guide is available in English and Spanish announced a new education resource designed to help from Publications Services, Mail Stop 127, Board of consumers learn more about vehicle leasing. Keys to Governors of the Federal Reserve System, Washing- Vehicle Leasing: A Consumer Resource is a computer ton, DC 20551, or call 202-452-3244. The first 100 program that can be downloaded from the Federal copies are free. It is also available on the Board's Reserve Board's web site (www.federalreserve.gov/ web site: www.federalreserve.gov/pubs/leasing. pubs/leasing) and used on home PCs. It answers the following questions in depth: ENFORCEMENT ACTION • How is leasing different from buying? • What are the up-front, ongoing, and end-of-lease The Federal Reserve Board on July 21, 2000, costs? announced the execution of a written agreement by • How do you compare lease offers and negotiate and among New Century Bancorp, the New Century lease terms? Bank, both of Southfield, Michigan, the Federal Reserve Bank of Chicago, and the Michigan Office of The program also includes information on the Financial and Insurance Services. Consumer Leasing Act and its companion regulation (Regulation M and commentary), a comprehensive glossary, a leasing quiz, and frequently asked PUBLICATION OF THE BUDGET REVIEW questions. To download Keys to Vehicle Leasing: A Con- The Annual Report: Budget Review, 2000, is now sumer Resource to a home computer, consumers will available from Publications Services, Mail Stop 127, need the following: Board of Governors of the Federal Reserve System, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

654 Federal Reserve Bulletin • September 2000 Washington, DC 20551, or phone 202-452-3244. Sandy Struckmeyer will oversee the Economic This companion document to the Board's Annual Activity; the Wages, Prices, and Productivity; and the Report describes the budgeted expenses of the Fed- Macroeconomic and Quantitative Studies Sections. eral Reserve Banks for 2000, the 2000 phase of the Mr. Struckmeyer joined the Board in 1983. In 1994, Board's current two-year (2000-01) budget, and he was appointed to the official staff as an assistant income and expenses for 1998 and 1999. This year's director and chief. Mr. Struckmeyer received a Ph.D. report includes a chapter on the Gramm-Leach- from Yale University. Bliley Act. The Budget Review is available, along Joyce Zickler joined the Board in 1975. She was with the Annual Report, on the Federal Reserve named chief of the Wages, Prices, and Productivity Board's web site: http://www.federalreserve.gov. Section in 1981 and was appointed assistant director in 1986. In 1987, she was named officer in charge of the Industrial Output and Economic Editing Sec- CHANGES IN BOARD STAFF tions. Ms. Zickler received a Ph.D. from George Washington University. The Board of Governors approved a restructuring of Wayne Passmore will oversee the Financial Instithe Division of Research and Statistics. In conjunc- tutions Section. Mr. Passmore joined the Federal tion with the reorganization, the Board announced Reserve Bank of New York in 1984 after receiving a the following official staff appointments and pro- Ph.D. from the University of Michigan. He briefly motions on July 14, 2000: joined the Board as a staff economist in 1987 and then took a position as an assistant vice president at • The appointment of David Wilcox as deputy the Federal Home Loan Bank of San Francisco from director 1987 to 1990. In 1990, Mr. Passmore returned to the • The promotions of Stephen D. Oliner and Board as a senior economist in the Capital Markets Charles S. Struckmeyer to associate directors and Section. He was promoted to chief of the Financial Joyce K. Zickler to deputy associate director Institutions Section in 1997. • The appointments of Wayne S. Passmore and David Reifschneider will oversee the Macroeco- David L. Reifschneider as assistant directors. nomic and Quantitative Studies Section. Mr. Reifschneider joined the Board as an economist in the David Wilcox currently serves as Assistant Sec- National Income Section in 1983. He was promoted retary of the Treasury. He will join the Board on to senior economist in 1989 and became chief of the January 20, 2001. Mr. Wilcox will serve as deputy Macroeconomic and Quantitative Studies Section in director and will oversee the macroeconomic and 1996. Mr. Reifschneider received a Ph.D. from the macrofinancial sections of the division. In 1986, University of Wisconsin. Mr. Wilcox joined the Board as an economist in the Economic Activity Section. He was promoted to The Board of Governors announced on July 14, senior economist in 1991 and transferred to the 2000, its approval of the appointment of David W. Monetary Studies Section in the Division of Mone- Skidmore as Special Assistant to the Board for Media tary Affairs in 1992. In 1994 and 1995, he served as Liaison. In this role, Mr. Skidmore will oversee the a senior economist with the Council of Economic work of the Public Affairs Office in responding to Advisers. After returning to the Board for two years, media inquiries, publicizing Board actions, and pro- Mr. Wilcox was appointed Assistant Secretary of the viding strategic media relations advice to Board Treasury for Economic Affairs, where he directs a members and senior staff. In addition, he will oversee professional staff responsible for the analysis of a the office's plans for technology support related to wide range of fiscal and macroeconomic issues. He media relations services and will coordinate and received a Ph.D. from MIT. support the media relations programs and activi- Stephen Oliner will oversee the Capital Markets, ties of the Reserve Banks. Mr. Skidmore joined the Financial Institutions, and Flow of Funds Sections. Board in 1999 after a career as a journalist covering Mr. Oliner joined the Board in 1984 as an economist economic, banking, and tax policy for the Associated in the Economic Activity Section. In 1997, he was Press. He received a B.A. from Pennsylvania State appointed to the official staff, with responsibility for University. • the Capital Markets and Financial Institutions Sections. He received a Ph.D. from the University of Wisconsin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

655 Legal Developments ORDERS ISSUED UNDER BANK HOLDING COMPANY (8) Underwriting and dealing in, to a limited extent, all ACT types of debt and equity securities that a member bank may not underwrite or deal in, except for Orders Issued Under Section 4 of the Bank Holding ownership interests in open-end investment compa- Company Act nies ("bank-ineligible securities"); and (9) Acting as a digital certification authority.1 The Royal Bank of Scotland Group pic Edinburgh, Scotland Notice of the proposal, affording interested persons an opportunity to submit comments, has been published Order Approving Notice to Engage in Nonbanking (65 Federal Register 37,389 (2000)). The time for filing Activities comments has expired, and the Board has considered the proposal and all comments received in light of the factors The Royal Bank of Scotland Group pic ("RBSG"), a bank set forth in section 4 of the BHC Act. holding company within the meaning of the Bank Holding NatWest Holdings is a wholly owned subsidiary of Company Act ("BHC Act"), has requested the Board's National Westminster Bank pic, London, England approval under sections 4(c)(8) and 4(j) of the BHC Act ("NatWest"). RBSG acquired its indirect ownership inter- (12 U.S.C. §§ 1843(c)(8) and (j)) and section 225.24 of the est in NatWest Holdings in March 2000, as a result of its Board's Regulation Y (12 C.F.R. 225.24) to retain its own- acquisition through a public tender offer of all the voting ership interest in NatWest Group Holdings Corporation, shares of NatWest.2 RBSG and NatWest have not merged New York, New York ("NatWest Holdings") and its sub- with each other and remain separate foreign banking orgasidiaries, and thereby engage in the following activities: nizations. RBSG received the Board's approval under sec- (1) Extending credit and servicing loans, in accordance tion 4(c)(9) of the BHC Act to retain temporarily its with section 225.28(b)(1) of Regulation Y indirect ownership interest in NatWest pending submission (12 C.F.R. 225.28(b)(1)); of this notice. (2) Arranging real estate equity financing, and acquir- NatWest, with consolidated total assets of approximately ing debt in default, in accordance with section $309.3 billion, is the third largest banking organization 225.28(b)(2) of Regulation Y (12 C.F.R. headquartered in the United Kingdom and the 28th largest 225.28(b)(2)); in the world. NatWest operates a branch in New York, (3) Leasing personal or real property, in accordance New York, and a representative office in Houston, Texas.3 with section 225.28(b)(3) of Regulation Y Before its acquisition of NatWest, RBSG had consoli- (12 C.F.R. 225.28(b)(3)); dated total assets of approximately $133.7 billion, and was (4) Providing financial and investment advisory ser- the seventh largest banking organization headquartered in vices, in accordance with section 225.28(b)(6) of the United Kingdom and the 60th largest banking organiza- Regulation Y (12 C.F.R. 225.28(b)(6)); tion in the world.4 In light of its acquisition of NatWest, (5) Providing securities brokerage, riskless principal, RBSG has consolidated total assets of approximately private placement, futures commission merchant, $442.9 billion and is the 14th largest banking organization and other agency transactional services, in accor- in the world. RBSG's principal subsidiary, The Royal dance with section 225.28(b)(7) of Regulation Y (12 C.F.R. 225.28(b)(7)); (6) Underwriting and dealing in government obliga- 1. See Bayerische Hypo- und Vereinsbank AG, 86 Federal Reserve tions and money market instruments that state Bulletin 56 (2000). member banks may underwrite or deal in under 2. See Letter from Robert deV. Frierson, Associate Secretary of the 12 U.S.C. §§ 24 and 335 ("bank-eligible securi- Board, to Gregory J. Lyons, Esq., dated February 7, 2000. ties"), engaging as principal in investing and trad- 3. Because RBSG and NatWest continue to operate in the same corporate form, RBSG's acquisition of NatWest did not result in the ing activities, and buying and selling bullion and establishment by RBSG of any additional branches, agencies or reprerelated activities, in accordance with section sentative offices in the United States for purposes of section 211.24 of 225.28(b)(8) of Regulation Y (12 C.F.R. the Board's Regulation K (12 C.F.R. 211.24). RBSG has provided the 225.28(b)(8)); Board notice of its acquisition of control of NatWest as required by section 211.24(a)(4)(i) of Regulation K (12 C.F.R. 211.24(a)(4)(i)). (7) Data processing activities, in accordance with sec- 4. Asset data for NatWest and ranking data are as of December 31, tion 225.28(b)(14) of Regulation Y (12 C.F.R. 1998, and reflect exchange rates then in effect. Asset data for RBSG 225.28(b)(14)); are as of September 30, 1998, and reflect exchange rates then in effect. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

656 Federal Reserve Bulletin • September 2000 Bank of Scotland pic, Edinburgh, Scotland, operates a ties subject to the 25-percent revenue limitation and the branch in New York, New York. RBSG also controls limitations previously established by the Board. As a con- Citizens Financial Group, Inc., Providence, Rhode Island, dition of this order, RBSG, NatWest Holdings, and GCM and its subsidiary banks, Citizens Bank of Rhode Island, are required to conduct their bank-ineligible securities ac- Providence, Rhode Island; Citizens Bank of Connecticut, tivities subject to the Operating Standards established for New London, Connecticut; Citizens Bank New Hampshire, section 20 subsidiaries ("Operating Standards").9 Manchester, New Hampshire; Citizens Bank of Massachusetts, Boston, Massachusetts; and United States Trust Com- Other Activities Approved by Regulation or Order pany, Boston, Massachusetts. NatWest Holdings engages in bank-ineligible securities The Board previously has determined by regulation or activities in the United States through its section 20 subsid- order that extending credit and engaging in activities reiary, Greenwich Capital Markets, Inc., Greenwich, Con- lated to extending credit; arranging real estate equity finecticut ("GCM"). RBSG has applied to operate GCM nancing; acquiring debt in default; leasing personal or real pursuant to section 4(c)(8) of the BHC Act. GCM is, and property; financial and investment advisory activities; secuwould continue to be, registered as a broker-dealer with the rities brokerage, riskless principal, private placement, fu- Securities and Exchange Commission ("SEC") under the tures commission merchant, and other agency transactional Securities Exchange Act of 1934,5 and as a futures com- services; investing and trading as principal; buying and mission merchant with the Commodity Futures Trading selling bullion and related activities; data processing; bank- Commission ("CFTC") under the Commodity Exchange eligible securities underwriting and dealing; and acting as a Act.6 Accordingly, both are, and would continue to be, digital certification authority, are closely related to banking subject to the recordkeeping and reporting obligations, for purposes of section 4(c)(8) of the BHC Act.10 RBSG fiduciary standards, and other requirements of the Securi- has committed that these activities will be conducted in ties Exchange Act of 1934 and the SEC and of the Com- accordance with the Board's regulations and prior Board modity Exchange Act and the CFTC. decisions relating to the activities. Underwriting and Dealing in Bank-Ineligible Securities Proper Incident to Banking Standard The Board has determined that, subject to the prudential In order to approve the proposal, the Board must consider framework of limitations established in previous decisions whether performance of the proposed activities by RBSG to address the potential for conflicts of interests, unsound "can reasonably be expected to produce benefits to the banking practices, or other adverse effects, underwriting public . . . that outweigh possible adverse effects, such as and dealing in bank-ineligible securities are so closely undue concentration of resources, decreased or unfair comrelated to banking as to be a proper incident thereto within petition, conflicts of interests, or unsound banking practhe meaning of section 4(c)(8) of the BHC Act.7 The Board tices."11 As a part of its evaluation of these factors, the has permitted such securities activities on the condition Board considers the financial condition and managerial that the company engaged in the activities derives no more resources of a notificant and its subsidiaries and the effect than 25 percent of its gross revenues from underwriting the transaction would have on those resources.12 and dealing in bank-ineligible securities over a two-year The Board has considered carefully the financial reperiod.8 RBSG has committed that it will conduct its sources of RBSG and notes that its capital ratios satisfy bank-ineligible securities underwriting and dealing activi- applicable risk-based standards under the Basle Capital Accord, and are considered equivalent to the capital levels that would be required of a United States banking organiza- 5. 15 U.S.C. § 78a et seq. tion. The Board also has reviewed the capitalization of 6. 7 U.S.C. § la etseq. RBSG, NatWest, and GCM in accordance with the stan- 7. See Canadian Imperial Bank of Commerce, et al., 76 Federal Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., dards set forth in the Section 20 Orders and finds the 75 Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities capitalization of each to be consistent with approval. The Industry Ass 'n v. Board of Governors of the Federal Reserve System, Board's determination is based on all the facts of record, 900 F.2d 360 (D.C. Cir. 1990); Citicorp, et al, 73 Federal Reserve including RBSG's projections of the volume of bank- Bulletin 473 (1987), aff'd sub nom. Securities Industry Ass'n v. Board of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir. 1988), cert, denied, 486 U.S. 1059 (1988) (collectively, "Section 20 Orders"). 9. 12 C.F.R. 225.200. GCM may provide services that are necessary 8. See Section 20 Orders. Compliance with the revenue limitation incidents to the proposed underwriting and dealing activities. Unless shall be calculated in accordance with the method stated in the Sec- GCM receives specific approval under section 4(c)(8) of the BHC Act tion 20 Orders, as modified by the Order Approving Modifications to to conduct the incidental activities independently, any revenues from the Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), and such activities must be treated as ineligible revenues subject to the 10 Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries Board's revenue limitation. of Bank Holding Companies Engaged in Underwriting and Dealing in 10. See 12 C.F.R. 225.28(b)(1), (2), (3), (6), (7), (8), and (14); Securities, 61 Federal Register 48,953 (1996); and Revenue Limit on Bayerische Hypo- und Vereinsbank AG, 86 Federal Reserve Bulletin Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies 56 (2000). Engaged in Underwriting and Dealing in Securities, 61 Federal 11 .See 12 U.S.C. § 1843(j)(2)(A). Register 68,750 (1996) (collectively, "Modification Orders"). 12. See 12 C.F.R. 225.26. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 657 ineligible securities underwriting and dealing activities pro- broader array of financial services to customers in the posed to be conducted by GCM. United States. In addition, there are public benefits to be The Board also has carefully reviewed the managerial derived from permitting capital markets to operate so that resources of the organizations involved in light of all the bank holding companies can make potentially profitable facts of record, including confidential examination reports investments in nonbanking companies and from permitting concerning GCM, and the Board's supervisory experience banking organizations to allocate their resources in the with RBSG and NatWest. The Board previously has deter- manner they consider to be most efficient when such investmined that NatWest and GCM have established appropriate ments are consistent, as in this case, with the relevant policies and procedures to ensure compliance with the considerations under the BHC Act. Board's Section 20 Orders, including computer, audit, and Based on all the facts of record, the Board has deteraccounting systems, internal risk management controls, mined that performance of the proposed activities by and the necessary operational and managerial infrastruc- RBSG, under the framework established in this and prior ture.13 RBSG has stated that it intends to use the policies decisions, can reasonably be expected to produce benefits and procedures currently in place at NatWest and GCM to to the public that outweigh any reasonably expected adensure compliance with the Board's Section 20 Orders and verse effects of the proposal. Operating Standards. On the basis of these and all other facts of record, including the commitments provided in this Conclusion case and the proposed managerial structure and risk management systems of GCM, the Board has concluded that financial and managerial considerations are consistent with Based on all the facts of record, the Board has determined approval. that the notice should be, and hereby is, approved, subject The Board also has carefully considered the competitive to all the terms and conditions in this order and the Seceffects of the proposed transaction under section 4 of the tion 20 Orders, as modified by the Modification Orders. BHC Act. To the extent that RBSG and NatWest Holdings The Board's approval of this proposal extends only to offer different types of nonbanking products, the proposed activities conducted within the limitations of those orders acquisition would result in no loss of competition. In those and this order, including the Board's reservation of authormarkets in which the nonbanking product offerings of ity to establish additional limitations to ensure that the RBSG and NatWest Holdings overlap, such as securities activities of RBSG are consistent with safety and soundbrokerage and investment advisory activities, there are ness, avoidance of conflicts of interests, and other relevant numerous existing and potential competitors. Consumma- considerations under the BHC Act. Underwriting and dealtion of the proposal, therefore, would have a de minimis ing in any manner other than as approved in this order and effect on competition in the market for those services. the Section 20 Orders (as modified by the Modification Based on all the facts of record, the Board has concluded Orders) is not within the scope of the Board's approval and that the proposal would not result in any significantly is not authorized for RBSG or GCM. adverse competitive effects in any relevant market. In reaching its conclusion, the Board has considered all As noted above, RBSG has committed that GCM will the facts of record in light of the factors that the Board is conduct its bank-ineligible securities underwriting and required to consider under the BHC Act and other applicadealing activities in accordance with the prudential frame- ble statutes. The Board's approval is specifically condiwork established by the Board's Section 20 Orders. Under tioned on compliance by RBSG with all the commitments the framework and conditions established in this order and made in connection with this notice, and on the Board's the Section 20 Orders, and based on all the facts of record, receiving access to information on the activities or operathe Board concludes that the proposed bank-ineligible un- tions of RBSG and any of its affiliates that the Board derwriting and dealing activities are not likely to result in determines to be appropriate to determine and enforce significantly adverse effects. Similarly, the Board con- compliance by RBSG and its affiliates with applicable cludes that the conduct of the other proposed nonbanking federal statutes. The Board's approval also is subject to all activities by RBSG under the framework and conditions the conditions set forth in this order and in Regulation Y, established in this order, prior orders, and Regulation Y is including those in sections 225.7 and 225.25(c) of Regulanot likely to result in any significantly adverse effects. tion Y (12 C.F.R. 225.7 and 225.25(c)), and to the Board's The Board also expects that the proposed acquisition authority to require such modification or termination of the would provide added convenience to the customers of activities of a bank holding company or any of its subsid- RBSG and NatWest Holdings. RBSG has indicated that the iaries as the Board finds necessary to ensure compliance transaction would strengthen the position of the combined with, and to prevent evasion of, the provisions of the BHC organization in European and international financial mar- Act and the Board's regulations and orders issued thereunkets, and would allow the combined organization to diver- der. These commitments and conditions are deemed to be sify its operations and sources of revenue and provide a conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law. By order of the Board of Governors, effective July 31, 13. See National Westminster Bank Pic, 82 Federal Reserve Bulletin 1044 (1996). 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

658 Federal Reserve Bulletin • September 2000 This action was taken pursuant to the Board's Rules Regarding shall take into account whether the foreign bank engages Delegation of Authority (12 C.F.R. 265.4(b)(1)) by a committee of directly in the business of banking outside the United Board members. Voting for this action: Chairman Greenspan and States and has furnished to the Board the information it Governors Kelley and Gramlich. Absent and not voting: Vice Chairneeds to assess the application adequately. The Board also man Ferguson and Governor Meyer. shall take into account whether the foreign bank and any ROBERT DEV. FRIERSON foreign bank parent is subject to comprehensive supervi- Associate Secretary of the Board sion or regulation on a consolidated basis by its home country supervisor.1 The Board may take into account additional standards set forth in the IBA and Regulation K.2 ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT As noted above, Bank engages directly in the business of banking outside the United States through its banking Deutsche Hyp Deutsche Hypothekenbank operations in Germany and elsewhere. Bank also has pro- Frankfurt-Hamburg AG vided the Board with the information necessary to assess Frankfurt, Germany the application through submissions that address the relevant issues. Order Approving Establishment of a Representative With respect to home country supervision of Bank, the Office Board has considered the following information. The German Federal Banking Supervisory Office is the principal Deutsche Hyp Deutsche Hypothekenbank Frankfurt- supervisory authority of Bank and Dresdner. The Board Hamburg AG ("Bank"), Frankfurt, Germany, a foreign previously has determined, in connection with applications bank within the meaning of the International Banking Act involving other German banks, that those banks were sub- ("IBA"), has applied under section 10(a) of the IBA ject to comprehensive consolidated supervision by the Ger- (12 U.S.C. § 3107(a)) to establish a representative office in man Federal Banking Supervisory Office.3 Bank and New York, New York. The Foreign Bank Supervision Dresdner are supervised by the German Federal Banking Enhancement Act of 1991 ("FBSEA"), which amended Supervisory Office in substantially the same manner as the IBA, provides that a foreign bank must obtain the those other banks. Based on this finding and all the facts of approval of the Board to establish a representative office in record, the Board concludes that Bank and Dresdner are the United States. subject to comprehensive supervision on a consolidated Notice of the application, affording interested persons an basis by its home country supervisor. opportunity to submit comments, has been published in a The Board has taken into account the additional stannewspaper of general circulation in New York (The New dards set forth in the IBA and in Regulation K.4 The York Times, March 15, 2000). The time for filing comments German Federal Banking Supervisory Office has granted has expired, and all comments have been considered. Bank approval to establish the proposed office. With re- Bank, with total consolidated assets of $93 billion, is the spect to the financial and managerial resources of Bank, 16th largest bank in Germany. Dresdner Bank AG, Frank- taking into consideration Bank's record of operations in its furt, Germany ("Dresdner") owns approximately 95 per- home country, its overall financial resources, and its standcent of the voting stock of Bank. A chartered mortgage bank, Bank engages primarily in real estate and public sector financing activities in Germany. Dresdner engages 1. See 12 U.S.C. § 3107(a)(2); 12 C.F.R. 211.24(d)(2). In assessing in a broad range of commercial and investment banking this standard, the Board considers, among other factors, the extent to activities, directly and through subsidiaries, both foreign which the home country supervisors: (i) Ensure that the bank has adequate procedures for monitoring and domestic. In the United States, Dresdner operates and controlling its activities worldwide; branches in New York, New York; and Chicago, Illinois; (ii) Obtain information on the condition of the bank and its an agency in Los Angeles, California; and a representative subsidiaries and offices through regular examination reports, office in Miami, Florida. Dresdner's indirect U.S. opera- audit reports, or otherwise; tions include Dresdner Kleinwort Benson North America, (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; LLC, New York, New York, a wholly owned securities (iv) Receive from the bank financial reports that are consolidated broker-dealer, and the Miami agency of Dresdner Bank on a worldwide basis, or comparable information that permits Lateinamerika AG, Frankfurt, Germany, a wholly owned analysis of the bank's financial condition on a worldwide subsidiary of Dresdner. consolidated basis; (v) Evaluate prudential standards, such as capital adequacy and The proposed representative office is intended to facilirisk asset exposure, on a worldwide basis. These are indicia tate Bank's long-term real estate financing activities in the of comprehensive consolidated supervision; no single factor United States, which to date have been conducted from the is essential and other elements may inform the Board's bank's head office in Frankfurt. All decisions on credit determination. extended by Bank would continue to be made at the head 2. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2). 3. See Deutsche Bank AG, 85 Federal Reserve Bulletin 509 (1999); office. Westdeutsche ImmohilienBank, 85 Federal Reserve Bulletin 346 In acting on an application to establish a representative (1999); Commerzbank AG, 85 Federal Reserve Bulletin 336 (1999). office, the IBA and Regulation K provide that the Board 4. See 12 U.S.C. § 3105(d)(3) and (4); 12 CFR 211.24(c)(2). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 659 ing with its home country supervisor, the Board has deter- conditions set forth in this order, the Board has determined mined that financial and managerial considerations are that Bank's application to establish a representative office consistent with approval. In addition, Bank appears to have in New York should be, and hereby is, approved. Should the experience and capacity to support the proposed office any restrictions on access to information on the operations and has established controls and procedures in the branch or activities of Bank or any of its affiliates subsequently to ensure compliance with applicable U.S. law, as well as interfere with the Board's ability to determine and enforce controls and procedures for its worldwide operations gener- compliance by Bank or its affiliates with applicable federal ally. statutes, the Board may require or recommend termination With respect to access to information, the Board has of any of Bank's direct or indirect activities in the United reviewed the restrictions on disclosure in relevant jurisdic- States. Approval of this application also is specifically tions in which Bank operates and has communicated with conditioned on Bank's compliance with the commitments relevant government authorities about access to informa- made in connection with this application and with the tion. Bank has committed to make available to the Board conditions in this order.5 The commitments and conditions such information on the operations of Bank and any affili- referred to above are conditions imposed in writing by the ate of Bank that the Board deems necessary to determine Board in connection with its decision and may be enforced and enforce compliance with the IBA, the Bank Holding in proceedings against Bank, its offices, and its affiliates Company Act, and other applicable federal law. To the under applicable law. extent that the provision of such information may be pro- By order of the Board of Governors, effective July 26, hibited or impeded by law or otherwise, Bank has commit- 2000. ted to cooperate with the Board to obtain any necessary consents or waivers that might be required from third Voting for this action: Chairman Greenspan, Vice Chairman parties in connection with disclosure of certain informa- Ferguson, and Governors Kelley, Meyer, and Gramlich. tion. In addition, subject to certain conditions, the German Federal Banking Supervisory Office may share information JENNIFER J. JOHNSON Secretary of the Board on Bank's operations with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to the condition described below, the 5. The Board's authority to approve the establishment of the pro- Board has concluded that Bank has provided adequate posed office parallels the continuing authority of the State of assurances of access to any necessary information the New York to license offices of a foreign bank. The Board's approval Board may request. of this application does not supplant the authority of the State of New York or its agent, the New York State Banking Department, to license On the basis of all the facts of record, and subject to the the proposed office of Bank in accordance with any terms or condicommitments made by Bank, as well as the terms and tions that the New York State Banking Department may impose. APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date Zions Bancorporation, Garban-Intercapital pic, July 25, 2000 Salt Lake City, Utah London, United Kingdom Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

660 Federal Reserve Bulletin • September 2000 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 ANB Financial Corporation, Arlington National Bank, Dallas July 6, 2000 Arlington, Texas Arlington, Texas ANB Delaware Financial Corporation, Dover, Delaware American River Holdings, North Coast Bank, N.A., San Francisco July 11, 2000 Sacramento, California Windsor, California Antioch Holding Company, Lakes Region Bancorporation, Inc. Chicago July 14, 2000 Antioch, Illinois Third Lake, Illinois Anchor Bank, Third Lake, Illinois Arvest Bank Group, Inc., Arvest Bank, St. Louis July 7, 2000 Bentonville, Arkansas Hoplin, Missouri Arvest Bank Group, Inc., Arvest State Bank, St. Louis June 22, 2000 Bentonville, Arkansas Tulsa, Oklahoma First Bancshares, Inc., Bartlesville, Oklahoma Century Bancshares, Inc., First State Bank of Gurdon, Dallas July 12, 2000 New Boston, Texas Gurdon, Arkansas Capitol Bancorp Ltd., Arrowhead Community Bank, Chicago June 29, 2000 Lansing, Michigan Glendale, Arizona Sun Community Bancorp Limited, Phoenix, Arizona Central Valley Bancorp, Modesto Commerce Bank, San Francisco July 6, 2000 Modesto, California Modesto, California Cheaha Financial Group, Inc., Cheaha Bank, Atlanta July 6, 2000 Oxford, Alabama Oxford, Alabama First Bancshares Corporation, Baybank Corporation, Minneapolis July 19, 2000 Gladstone, Michigan Gladstone, Michigan Baybank, Gladstone, Michigan First Community Banc Holding First Community Bank of Hillsboro, St. Louis July 6, 2000 Company, Hillsboro, Illinois Hillsboro, Illinois First Graham Bancorp, Inc., First Bryson Bancorporation, Dallas July 19, 2000 Graham, Texas Flower Mound, Texas First Security Bancshares of Delaware, Inc., Dover, Delaware First Security Bank, Flower Mound, Texas First Interstate BancSystem, Inc. Equality Bankshares, Inc., Minneapolis July 7, 2000 Billings, Montana Cheyenne, Wyoming F & M Financial Services, Inc., F & M Community Bank, N.A., Minneapolis July 6, 2000 Preston, Minneapolis Chatfield, Minnesota First Security, Inc., First Security Bank of Owensboro, Inc. St. Louis July 26, 2000 Owensboro, Kentucky Owensboro, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 661 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Hancock Park Acquisition, L.L.C. Bank of Coronado, San Francisco June 29, 2000 Washington, D.C. Coronado, California Hancock Park Acquisition, L.P., Washington, D.C. Heritage Financial Holding Heritage Bank, Atlanta July 20, 2000 Corporation, Decatur, Alabama Decatur, Alabama Heritage Group, Inc., City National Bank and Trust Company, Kansas City June 23, 2000 Aurora, Nebraska Hastings, Nebraska IBT Bancorp, Inc., FSB Bancorp, Inc., Chicago July 12, 2000 Mt. Pleasant, Michigan Breckenridge, Michigan Farmers State Bank of Breckenridge, Breckenridge, Mighigan Inter-Mountain Bancorp, Inc., Three Forks Bancorporation, Minneapolis July 13, 2000 Bozeman, Montana Three Forks, Montana Security Bank of Three Forks, Three Forks, Montana JTB Banc shares, Inc., Whiting Bankshares, Inc., Kansas City July 11, 2000 Mission Hills, Kansas Whiting, Kansas Mahaska Investment Company Mahaska Investment Company, Chicago July 6, 2000 ESOP, Oskaloosa, Iowa Oskaloosa, Iowa MSB Financial, Inc., Manhattan State Bank, Minneapolis June 27, 2000 Manhattan, Montana Manhattan, Montana North Bay Bancorp, Solano Bank, San Francisco June 29, 2000 Napa, California Vacaville, California Northwest Financial Corp., Marquette Bank Oelwein, N.A., Chicago June 30, 2000 Spencer, Iowa Oelwein, Iowa Park Meridian Financial Park Meridian Bank, Richmond June 29, 2000 Corporation, Charlotte, North Carolina Charlotte, North Carolina Peoples Financial Group, Inc., The Peoples Bank, Richmond July 14, 2000 Iva, South Carolina Iva, South Carolina Plains Bancorp, Inc., Sudan Bancshares, Inc., Dallas June 26, 2000 Dimmitt, Texas Sudan, Texas First National Bank, Sudan, Texas Regions Financial Corporation, East Coast Bank Corporation, Atlanta July 13, 2000 Birmingham, Alabama Ormond Beach, Florida Bank at Ormond-By-The-Sea, Ormond Beach, Florida Regions Financial Corporation, First National Bancshares of Louisiana, Atlanta July 13, 2000 Birmingham, Alabama Inc., Alexandria, Louisiana Security First National Bank, Alexandria, Louisiana Salem Community Bankshares, Inc. Salem Bank & Trust, N.A., Richmond June 29, 2000 Salem, Virginia Salem, Virginia S & C Banco, Inc., S & C Bank, Minnesota, Minneapolis July 14, 2000 New Richmond, Wisconsin Almelund, Minnesota Town and Country Bank of Almelund, Almelund, Minnesota Somerset Trust Holding Company, Somerset Trust Company, Cleveland June 29, 2000 Inc., Somerset, Pennsylvania Somerset, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

662 Federal Reserve Bulletin • September 2000 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Sooner Southwest Bankshares, Inc. State National Bancshares, Inc., Kansas City July 27, 2000 Tulsa, Oklahoma Heavener, Oklahoma Stockmens Financial Corporation, First Gothenburg Bancshares, Inc. Kansas City June 23, 2000 Rushville, Nebraska Gothenburg, Nebraska Stamford Banco, Inc., First State Bank, Stamford, Nebraska Gothenburg, Nebraska Nebraska Bankshares, Inc., Farnam, Nebraska Texas Capital Bancshares, Inc., BankDirect, SSB, Dallas June 23, 2000 Dallas, Texas Dallas, Texas Western Acquisitions, L.L.C., West Coast Bancorp, San Francisco June 29, 2000 Washington, D.C. Tustin, California Western Acquisition Partners, L.P, Washington, D.C. Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Century South Banks, Inc., Century South Securities, Inc., Atlanta July 13, 2000 Alpharetta, Georgia Duluth, Georgia CB Bancshares, Citibank Properties, Inc., San Francisco July 10, 2000 Honolulu, Hawaii Honolulu, Hawaii Byron Bancshares, Inc., Byron Bank Financial Services, Chicago July 19, 2000 Byron, Illinois Byron, Illinois Community Bank Group, Inc., Midland Insurance Group, Inc., Minneapolis July 14, 2000 Eden Prairie, Minnesota Winsted, Minnesota Community First Bankshares, Inc., Paula Carper Crop Insurance LLC, Minneapolis July 17, 2000 Fargo, North Dakota Holyoke, Colorado Community Insurance, Inc., Fargo, North Dakota CPB, Inc., CPB Real Estate, Inc., San Francisco July 3, 2000 Honolulu, Hawaii Honolulu, Hawaii Community First Financial Community First Financial Services St. Louis July 11, 2000 Corporation, Agency, Plato, Missouri Plato, Missouri First Merchants Corporation, First Merchants Reinsurance Co. Ltd., Chicago July 6, 2000 Muncie, Indiana Muncie, Indiana Jonesboro Bancompany, Inc., A-J Insurance Agency, St. Louis June 15, 2000 Jonesboro, Illinois Jonesboro, Illinois Lamar Capital Corporation, Lamar Data Solutions, Inc., Atlanta July 17, 2000 Purvis, Mississippi Purvis, Mississippi National Commerce Bancorporation, CCB Financial Corporation, St. Louis June 30, 2000 Memphis, Tennessee Durham, North Carolina Riverside Banking Company, Dockside Finance Company, Atlanta July 11, 2000 Ft. Pierce, Florida Ft. Pierce, Florida Silicon Valley Bancshares, SVB Strategic Investors Fund, L.P, San Francisco June 21, 2000 Santa Clara, California Santa Clara, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 663 Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date CNB Financial Services, Inc., Citizens National Bank of Berkeley Richmond July 20, 2000 Berkeley Springs, West Virginia Springs, Berkeley Springs, West Virginia APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date Westamerica Bank, Bank of Lake County, San Francisco July 19, 2000 San Rafael, California Lakeport, California First Arvest Bank, Delaware County Bank, St. Louis July 6, 2000 Siloam Springs, Arkansas Jay, Oklahoma The First State Bank, Broadway National Bank, Dallas July 7, 2000 Granger, Texas San Antonio, Texas F&M Bank-Emporia, Wachovia Bank, National Association, Richmond June 27, 2000 Emporia, Virginia Winston-Salem, North Carolina James River Bank, One Valley Bank-Central Virginia, Richmond June 30, 2000 Waverly, Virginia National Association, Lynchburg, Virginia James River Bank/Colonial, Bank of Suffolk, Richmond June 30, 2000 Smithfield, Virginia Suffolk, Virginia Somerset Trust Company, Somerset Interim Bank, Cleveland June 29, 2000 Somerset, Pennsylvania Somerset, Pennsylvania PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Hunter v. Board of Governors, No. 00-CV-735 (ESH) (D.D.C., Federal Reserve Banks in which the Board of Governors is not filed April 5, 2000). Action claiming retaliation for whistlenamed a party. blowing activity. Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Individual Reference Services Group, Inc., v. Board of Gover- (D.D.C., filed February 18, 2000). Action challenging the nors et al, No. 00-CV-1828 (ESH) (D.D.C., filed July 28, funding of the retirement plan for certain Board employees. 2000). Action under Administrative Procedure Act challenging a portion of interagency rule regarding Privacy of Toland v. Internal Revenue Service, Federal Reserve System, Consumer Finance Information. et al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed December 29, 1999). Challenge to income taxation and Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C. Federal Reserve notes. On February 16, 2000, the govern- Cir., filed June 30, 2000). Petition for review of interagency ment filed a motion to dismiss the action. rule regarding Privacy of Consumer Financial Information. Irontown Housing Corp. v. Board of Governors, No. 99-9549 Board of Governors v. Interfinancial Services, Ltd., No. 00- (10th Cir., filed December 27, 1999). Petition for review of 5233 (D.C. Cir., filed June 27, 2000). Appeal of district Board order dated December 13, 1999, approving the court order enforcing administrative subpoena issued by the merger of Zions Bancorporation with First Security Corpo- Board. On June 30, 2000, the court of appeals denied the ration. On June 28, 2000, the court dismissed the petition appellant's motion for a stay of the district court order. for review. Bettersworth v. Board of Governors, No. 00-50262 (5th Cir., filed April 14, 2000). Appeal of district court's dismissal of Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed Privacy Act claims. August 3, 1999). Employment discrimination action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

664 Federal Reserve Bulletin • September 2000 Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. transfer or disposition of the individual's assets and appoint- Cal., filed July 21, 1999). Action relating to impounded ing the Federal Reserve Bank of New York as receiver for bank drafts. those assets. Following entry of the Board's order requiring Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., restitution, 85 Federal Reserve Bulletin 142 (1998), the filed April 28, 1999). Appeal of dismissal of action chal- court granted the Board's motion for judgment in the asset lenging income taxation and Federal Reserve notes. freeze action and authorized a judicial sale of the seized property. Sedgwick v. Board of Governors, No. Civ 99 0702 (D. Arizona, filed April 14, 1999). Action under Federal Tort Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed Claims Act alleging violation of bank supervision require- May 4, 1998). Appeal and cross-appeal of district court ments. The Board filed a motion to dismiss on June 15, order granting in part and denying in part the Board's 1999. motion for summary judgment seeking prejudgment interest Hunter v. Board of Governors, No. 1:98CV02994 (ESH) and a statutory surcharge in connection with a civil money (D.D.C., filed December 9, 1998). Action under the Free- penalty assessed by the Board. On February 24, 1999, the dom of Information Act, the Privacy Act, and the first court granted the Board's appeal and denied the crossamendment. On April 26, 2000, the court granted the appeal, and remanded the matter to the district court for Board's motion to dismiss or for summary judgment. determination of prejudgment interest due to the Board. Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed January 14, 2000). Appeal of district court order granting summary judgment to the Board in a Freedom of Information Act case. WRITTEN AGREEMENTS APPROVED BY FEDERAL Fraternal Order of Police v. Board of Governors, No. RESERVE BANKS 1:98CV03116 (WBB)(D.D.C., filed December 22, 1998). Declaratory judgment action challenging Board labor prac- New Century Bancorp and New Century Bank tices. On February 26, 1999, the Board filed a motion to Southfield, Michigan dismiss the action. Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) The Federal Reserve Board announced on July 21, 2000, (S.D.N.Y., filed May 15, 1998). Action to freeze assets of the execution of a Written Agreement by and among New individual pending administrative adjudication of civil Century Bancorp, the New Century Bank, both of Southmoney penalty assessment by the Board. On May 26, 1998, field, Michigan, the Federal Reserve Bank of Chicago, and the court issued a preliminary injunction restraining the the Michigan Office of Financial and Insurance Services. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

47 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued All Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A32 Domestic finance companies—Assets and liabilities 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 A35 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions— A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets 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 All Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • September 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 Residential lending reported under the A55 Banks' own claims on foreigners Home Mortgage Disclosure Act, 1999 A56 Banks' own and domestic customers' claims on A73 Disposition of applications for private foreigners mortgage insurance, 1999 A56 Banks' own claims on unaffiliated foreigners A76 Small loans to businesses and farms, 1999 A57 Claims on foreign countries—Combined A79 Community development lending reported domestic offices and foreign branches under the Community Reinvestment Act, 1999 Reported by Nonbanking Business A80 INDEX TO STATISTICAL TABLES 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 GDP Gross domestic product e Estimated GNMA Government National Mortgage Association 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 IOs Interest only, stripped, mortgage-back securities 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 OCDs Other checkable deposits 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 POs Principal only, stripped, mortgage-back securities CRA Community Reinvestment Act of 1977 REIT Real estate investment trust FFB Federal Financing Bank REMICs Real estate mortgage investment conduits 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 FSA Farm Service Agency SIC Standard Industrial Classification FSLIC Federal Savings and Loan Insurance Corporation VA Department of Veterans Affairs G-7 Group of Seven G-10 Group of Ten GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • September 2000 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999 2000 2000 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q3 Q4 Ql Q2 Feb. Mar. Apr. May June Reserves of depository institutions2 1 Total -16.1 -3.4 1.8 -9.5 -41.1 -34.1 13.8 12.8 -40.4 2 Required -16.0 -4.5 .0 -6.2 -16.6 -37.8 16.0 18.7 -46.4 3 Nonborrowed -17.9 -3.0 2.4 -11.1 -34.0 -36.2 10.2 11.1 -44.2 4 Monetary base3 9.0 20.4 4.3r -3.5 —37.4r —4.5r 2.8r 2.2r 2.6 Concepts of money and debt4 5 Ml -1.8 4.8 ,5r -1.6 — 14.6r 7.1r 4.5r -12.3 -3.0 6 M2 5.3 5.1 6.0 6.0 3.1 9.4 10.3 -1.0 3.1 7 M3 5.0 10.1 10.5 7.8 3.3 13.4 8.2r 4.1r 7.0 8 Debt 6.2 6.4 5.9 n.a. 4.5 7.1 5.7r 3.6 n.a. Nontransaction components 9 In M25 7.6 5.3 7.8 8.4 8.6 10.2 12.0r 2.5 4.9 10 In M3 only6 4.0 23.7 22.4 12.4 3.8 23.5 3.1r 17.0r 16.5 Time and savings deposits Commercial banks 11 Savings, including MMDAs 10.6 4.2 3.6 7.9 12.8 6.5 14.8 -2.7 6.0 12 Small time7 2.1 7.0 9.1 14.7 10.1 10.4r 17.9r i3.r 19.8 13 Large time8'9 .3 38.6 22.6 21.6 3.5 13.7 37.5r 13.9r 20.0 Thrift institutions 14 Savings, including MMDAs 13.3 -3.3 -1.4 1.7 6.4 7.2 —1.1' io.r -2.4 15 Small time7 -3.2 5.0 6.4 3.5 3.0 3.7 -1.8 8.1 9.9 16 Large time8 1.6 6.0 18.2 -2.3 8.9 1.3 -6.3 -16.5r 20.6 Money market mutual funds 17 Retail 8.2 10.5 18.7 9.7 4.3 19.7 19.1 -3.9 -5.8 18 Institution-only 9.3 21.4 23.5 13.8 -11.5 45.1 -1.3 17.3 15.5 Repurchase agreements and Eurodollars 19 Repurchase agreements10 9.1 12.8 17.5 4.5 50.3 -12.9 -17.7 24.0 23.6 20 Eurodollars10 -9.7 13.3 29.2 -2.1 -30.0 65.0 -55.1 30.6 -6.1 Debt components4 21 Federal -.3 -4.3 -4.4 n.a. -12.1 3.1 -5.5 -18.6 n.a. 22 Nonfederal 8.0 9.4 8.7 n.a. 8.9 8.1 8.6r 9.3 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with and Canada. Excludes amounts held by depository institutions, the U.S. government, money regulatory changes in reserve requirements. (See also table 1.20.) market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally by summing large time deposits, institutional money fund balances, RP liabilities, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally component of the money stock, plus (3) (for all quarterly reporters on the "Report of adjusted M2. Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference sectors—the federal sector (U.S. government, not including government-sponsored enterbetween current vault cash and the amount applied to satisfy current reserve requirements. prises or federally related mortgage pools) and the nonfederal sectors (state and local 4. Composition of the money stock measures and debt is as follows: governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, commercial banks other than those owed to depository institutions, the U.S. government, and which are derived from the Federal Reserve Board's flow of funds accounts, are breakforeign banks and official institutions, less cash items in the process of collection and Federal adjusted (that is, discontinuities in the data have been smoothed into the series) and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of month-averaged (that is, the data have been derived by averaging adjacent month-end levels). withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail credit union share draft accounts, and demand deposits at thrift institutions. Seasonally money fund balances, each seasonally adjusted separately. adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities OCDs, each seasonally adjusted separately. (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time term) of U.S. addressees, each seasonally adjusted separately. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 7. Small time deposits—including retail RPs—are those issued in amounts of less than money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions balances at depository institutions and money market funds. Seasonally adjusted M2 is are subtracted from small time deposits. calculated by summing savings deposits, small-denomination time deposits, and retail money 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those fund balances, each seasonally adjusted separately, and adding this result to seasonally booked at international banking facilities. adjusted M1. 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 2000 2000 Apr. May June May 17 May 24 May 31 June 7 June 14 June 21 June 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 560,803 558,972 558,662 556,395 552,655 560,284 557,276 557,301 558,947 559,537 U.S. government securities2 2 Bought outright—System account 505,256 507,413 507,018 508,353 507,682 506,191 506,426 507,528 508,074 506,611 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 143 140 140 140 140 140 140 140 140 140 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty 19,920 17,303 16,905 14,323 11,116 20,913 16,960 15,541 15,563 17,478 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 181 99 87 66 154 46 239 27 46 40 9 Seasonal credit 117 280 389 260 324 356 325 352 395 461 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 303 404 788 -360 1,140 196 694 648 1,168 819 13 Other Federal Reserve assets 34,884 33,333 33,334 33,614 32,099 32,442 32,492 33,065 33,561 33,988 14 Gold stock 11,048 11,048 11,047 11,048 11,048 11,048 11,048 11,048 11,048 11,047 15 Special drawing rights certificate account 5,733 5,200 4,667 5,200 5,200 5,200 5,200 5,200 4,200 4,200 16 Treasury currency outstanding 29,235r 29,589r 29,708 29,597r 29,634r 29,671' 29,685 29,699 29,713 29,727 ABSORBING RESERVE FUNDS 17 Currency in circulation . .. . 564,725r 566,062r 568,296 565,4591 565,221r 568,820' 569,311 568,325 567,583 567,368 18 Reverse repurchase agreements—triparty .. . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 196 198 87 205 204 177 132 81 68 69 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 8,395 7,060 6,232 5,424 5,114 4,880 4,656 5,232 7,943 6,983 21 Foreign 106 95 85 121 78 82 83 82 83 89 22 Service-related balances and adjustments . . 6,836 6,836 6,893 6,858 6,786r 6,746 7,091 6,661 6,918 6,853 23 Other 272 250 234 254 253 217 260 237 251 198 24 Other Federal Reserve liabilities and capital . 19,357 16,265 15,627 15,291 15,339 15,356 15,676 15,636 15,571 15,621 25 Reserve balances with Federal Reserve Banks" 6,932 8,045r 6,631 8,629 5,541r 9,926' 5,999 6,994 5,490 7,330 End-of-month figures Wednesday figures Apr. May June May 17 May 24 May 31 June 7 June 14 June 21 June 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 566,553 566,932 566,538 553,915 555,216 566,932 556,954 560,360 566,210 566,875 U.S. government securities2 2 Bought outright—System account 506,695 506,744 504,950 507,916 509,115 506,744 505,939 507,396 508,531 507,884 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 140 140 140 140 140 140 140 140 140 140 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty 24,905 26,395 26,930 14,620 12,530 26,395 17,620 18,110 20,970 22,975 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 78 88 54 146 128 88 11 79 129 50 9 Seasonal credit 162 344 458 285 356 344 334 378 454 476 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float -237 840 -12 -1,089 634 840 208 1,031 2,203 1,140 13 Other Federal Reserve assets 34,810 32,381 34,019 31,897 32,313 32,381 32,702 33,226 33,783 34,210 14 Gold stock 11,048 11,048 11,046 11,048 11,048 11,048 11,048 11,048 11,048 11,047 15 Special drawing rights certificate account 5,200 5,200 4,200 5,200 5,200 5,200 5,200 5,200 4,200 4,200 16 Treasury currency outstanding 29,348r 29,671r 29,741 29,597r 29,634' 29,671' 29,685 29,699 29,713 29,727 ABSORBING RESERVE FUNDS 17 Currency in circulation . . . . 563,825r 570,520r 570,878 566,084r 567,028' 570,521' 569,771 569,000 568,257 569,637 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 203 140 76 207 183 140 83 68 68 76 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 15,868 5,445 6,208 4,923 4,942 5,445 5,031 5,024 13,668 6,613 21 Foreign 142 110 105 126 76 110 86 107 86 117 22 Service-related balances and adjustments . . 6,804 6,746 7,063 6,858 6,786' 6,746 7,091 6,661 6,918 6,853 23 Other 251 226 203 260 249 226 244 247 238 191 24 Other Federal Reserve liabilities and capital . 18,558 15,271 15,719 15,009 15,019 15,271 15,261 15,339 15,254 15,313 25 Reserve balances with Federal Reserve Banks' 6,498 14,390 11,275 6,294 6,815' 14,390 5,320 9,861 6,683 13,050 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float, under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • September 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. Dec. Jan. Feb. Mar. Apr. May June 1 Reserve balances with Reserve Banks2 10,664 9,026 5,263 5,263 5,169 5,078 6,515 7,078 7,660 6,466 2 Total vault cash3 44,742 44,294 60,630 60,630 74,015 63,764 48,946 46,453 44,632 44,563 3 Applied vault cash4 37,255 36,183 36,392 36,392 39,063 37,017 33,227 33,507 33,895 32,757 4 Surplus vault cash5 7,486 8,111 24,238 24,238 34,952 26,747 15,719 12,946 10,737 11,806 5 Total reserves6 47,919 45,209 41,655 41,655 44,232 42,095 39,742 40,584 41,555 39,222 6 Required reserves 46,235 43,695 40,347 40,347 42,207 40,982 38,533 39,433 40,589r 38,085 7 Excess reserve balances at Reserve Banks7 1,685 1,514 1,308 1,308 2,025 1,113 1,209 1,152 966r 1,137 8 Total borrowing at Reserve Banks 324 117 320 320 374 108 179 304 362 479 9 Adjustment 245 101 179 179 296 45 101 184 86 90 10 Seasonal 79 15 67 67 31 44 71 120 276 389 11 Special Liquidity Facility8 0 0 74 74 46 19 7 0 0 0 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 2000 Mar. 8 Mar. 22 Apr. 5 Apr. 19 May 3 May 17 May 31 June 14 June 28 July 12 1 Reserve balances with Reserve Banks2 6,234 6,245 7,186 6,715 7,491 7,614 7,743 6,502 6,420 6,535 2 Total vault cash3 49,743 48,706 48,613 47,144 44,592 44,114 45,158 43,847 45,105 45,782 3 Applied vault cash4 33,751 32,862 33,330 32,885 34,378 33,227 34,459 32,183 33,332 32,746 4 Surplus vault cash5 15,992 15,844 15,283 14,259 10,214 10,887 10,699 11,664 11,773 13,035 5 Total reserves6 39,985 39,107 40,516 39,600 41,869 40,841 42,202 38,685 39,752 39,281 6 Required reserves 39,054 38,011 38,883 38,516 40,849 39,929 41,194r 37,707 38,471 38,039 7 Excess reserve balances at Reserve Banks7 931 1,095 1,632 1,083 1,019 912 l,008r 978 1,281 1,242 8 Total borrowing at Reserve Banks 119 207 189 368 276 303 440 472 471 589 9 Adjustment 44 133 104 264 120 65 100 134 43 117 10 Seasonal 61 67 85 104 156 238 340 339 428 472 11 Special Liquidity Facility8 15 7 0 0 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 credit Federal Reserve Bank On On On 8/4/00 8/4/00 8/4/00 Previous rate Boston 5/16/00 New York . . 5/19/00 Philadelphia 5/18/00 Cleveland . . 5/16/00 Richmond . . 5/16/00 Atlanta 5/17/00 Chicago 5/17/00 St. Louis 5/18/00 Minneapolis 5/18/00 Kansas City . 5/17/00 Dallas 5/17/00 San Francisco 5/16/00 Range of rates for adjustment credit in recent years Range (or F.R. Bank (or F.R. Bank Range (or level)—All of level)—All of 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 70 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 17 7 7 15 8.5-9 8.5 1 7 4.75 4.75 July 3 7-7.25 7.25 17 8.5 8.5 10 7.25 7.25 1995—Feb. 1 4.75-5.25 5.25 Aug. 771) 7.75 7.75 1984—Apr. 9 8.5-9 9 5.25 5.25 Sept. 8 8 13 9 Oct. lb 8-8.5 8.5 Nov. 21 8.5-9 1996—Jan. 31 5.00-5.25 5.00 70 8.5 8.5 26 8.5 Feb. 5 5.00 5.00 Nov. 1 8.5-9.5 9.5 Dec. 24 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 70 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 vn 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 7| 11 11 Apr. 21 6.5-7 6.5 26 4.75 4.75 Oct. 8 11-12 12 23. 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 12 12 July 11 6 6 1 8 5.00 5.00 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 13 22 5.5 5.5 2000—Feb. 2 5.00-5.25 5.25 19 13 13 4 5.25 5.25 May ?9 12-13 13 1987—Sept. 4 5.5-6 6 Mar. 21 5.25-5.50 5.50 31) 12 12 11 6 6 23 5.50 5.50 June 13 11-12 11 May 16 5.50-6.00 5.50 16 11 11 1988—Aug. 9 6-6.5 6.5 19 6.00 6.00 July 78 10-11 10 11 6.5 6.5 10 10 In effect Aug. 4, 2000 6.00 6.00 Sept. 76 11 11 1989—Feb. 24 6.5-7 7 Nov. 1 / 12 12 27 7 7 Dec. 5 12-13 13 8 13 13 1990—Dec. 19 6.5 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 14 14 4 6 6 Nov. 7 13-14 1133 Apr. 30 5.5-6 5.5 6 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-11.5 11 Dec. 20 3.5^1.5 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 30 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors: Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 1970into account rates charged by market sources of funds and ordinarily is reestablished on the 1979. first business day of each two-week reserve maintenance period; however, it is never less than In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit the discount rate applicable to adjustment credit. borrowings by institutions with deposits of $500 million or more that had borrowed in 3. May be made available to depository institutions when similar assistance is not successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was reasonably available from other sources, including special industry lenders. Such credit may in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed be provided when exceptional circumstances (including sustained deposit drains, impaired on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to access to money market funds, or sudden deterioration in loan repayment performance) or 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, practices involve only a particular institution, or to meet the needs of institutions experiencing and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the difficulties adjusting to changing market conditions over a longer period (particularly at times surcharge was changed from a calendar quarter to a moving thirteen-week period. The of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is surcharge was eliminated on Nov. 17, 1981. charged on extended-credit loans outstanding less than thirty days; however, at the discretion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • September 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 deposits1 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 11/2 years was reduced from 3 percent to 1 '/i percent for by check, draft, debit card, or similar order payable directly to third parties) are savings the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that deposits, not transaction accounts. began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts nonpersonal time deposits with an original maturity of less than 1 l/i years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 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 Vi years (see note 5). Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 1999 2000 Type of transaction ii999977 11999988 11999999 and maturity Nov. Dec. Jan. Feb. Mar. Apr. May U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,147 3,550 0 0 0 0 0 0 2,294 0 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 435,907 450,835 464,218 36,882 42,468 37,029 38,607 48,459 37,141 36,386 4 For new bills 435,907 450,835 464,218 36,882 42,468 37,029 38,607 48,459 37,141 36,386 5 Redemptions 0 2,000 0 0 0 0 0 198 779 2,297 Others within one year 6 Gross purchases 5,549 6,297 11,895 964 1,450 0 0 0 0 164 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 41,716 46,062 50,590 6,675 3,936 3,566 6,877 5,034 0 13,063 9 Exchanges -27,499 -49,434 -53,315 -10,150 -2,175 -4,360 -6,688 -3,515 0 -12,633 10 Redemptions 1,996 2,676 1,429 0 0 390 0 0 568 0 One to five years 11 Gross purchases 20,080 12,901 19,731 1,014 3,514 160 0 740 1,723 890 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,987 -37,777 -44,032 -3,685 -3,936 -3,566 -5,210 -5,034 0 -10,334 14 Exchanges 20,274 37,154 42,604 8,015 2,175 4,045 4,348 3,515 0 10,063 Five to ten years 15 Gross purchases 3,449 2,294 4,303 0 581 809 0 489 930 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -1,954 -5,908 -5,841 -2,273 0 0 -949 0 0 -1,552 18 Exchanges 5,215 7,439 7,583 2,135 0 316 1,170 0 0 2,570 More than ten years 19 Gross purchases 5,897 4,884 9,428 925 1,257 1,069 0 330 0 528 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -1,775 -2,377 -717 -717 0 0 -717 0 0 -1,177 22 Exchanges 2,360 4,842 3,139 0 0 0 1,170 0 0 0 All maturities 23 Gross purchases 44,122 29,926 45,357 2,903 6,802 2,038 0 1,559 4,947 1,582 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 0 0 390 0 198 1,347 2,297 Matched transactions 26 Gross purchases 3,577,954 4,395,430 4,395,998 317,537 488,845 492,277 340,127 401,404 336,103 357,355 27 Gross sales 3,580,274 4,399,330 4,414,253 318,294 510,605 471,663 339,585 401,841 334,751 356,640 Repurchase agreements 28 Gross purchases 810,485 512,671 281,599 0 0 0 0 0 0 0 29 Gross sales 809,268 514,186 301,273 0 0 0 0 0 0 0 30 Net change in U.S. Treasury securities 41,022 19,835 5,999 2,146 -14,959 22,262 542 923 4,952 -1 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 0 32 Gross sales 0 25 0 0 0 0 0 0 0 0 33 Redemptions 1,540 322 157 7 0 6 25 0 10 0 Repurchase agreements 34 Gross purchases 160,409 284,316 360,069 0 0 0 0 0 0 0 35 Gross sales 159,369 276,266 370,772 0 0 0 0 0 0 0 36 Net change in federal agency obligations -500 7,703 -10,859 -7 0 -6 -25 0 -10 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 0 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 0 304,989 81,350 155,578 61,345 82,998 61,230 79,585 107,375 40 Gross sales 0 0 164,349 54,470 64,378 178,880 81,335 62,253 78,425 105,885 41 Net change in triparty obligations 0 0 140,640 26,880 91,200 -117,535 1,663 -1,023 1,160 1,490 42 Total net change in System Open Market Account 40,522 27,538 135,780 29,019 76,241 -95,279 2,180 -100 6,102 1,489 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 Financial Statistics • September 2000 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2000 2000 May 31 June 7 June 14 June 21 June 28 Apr. 30 May 31 June 30 Consolidated condition statement ASSETS 1 Gold certificate account 11,048 11,048 11,048 11,048 11,047 11,048 11,048 11,046 2 Special drawing rights certificate account 5,200 5,200 5,200 4,200 4,200 5,200 5,200 4,200 3 Coin 599 636 661 674 679 569 599 699 Loans 4 To depository institutions 431 345 456 583 526 240 431 512 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 26,395 17,620 18,110 20,970 22,975 24,905 26,395 26,930 Federal agency obligations3 8 Bought outright 140 140 140 140 140 140 140 140 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 506,744 505,939 507,396 508,531 507,884 506,695 506,744 504,950 11 Bought outright4 506,744 505,939 507,396 508,531 507,884 506,695 506,744 504,950 12 Bills 198,323 197,515 198,373 197,899 195,726 199,905 198,323 192,792 13 Notes 223,631 223,633 223,633 224,689 226,138 221,027 223,631 226,138 14 Bonds 84,791 84,791 85,390 85,943 86,020 85,763 84,791 86,020 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 533,710 524,044 526,103 530,224 531,525 531,981 533,710 532,532 17 Items in process of collection 11,985 8,775 8,577 9,812 7,924 5,935 11,985 5,545 18 Bank premises 1,400 1,401 1,402 1,403 1,402 1,393 1,400 1,409 Other assets 19 Denominated in foreign currencies5 15,246 15,251 15,256 15,261 15,266 15,075 15,246 15,550 20 All other6 15,707 16,095 16,619 17,166 17,516 18,526 15,707 17,056 21 Total assets 594,896 582,449 584,865 589,788 589,559 589,727 594,896 588,037 LIABILITIES 22 Federal Reserve notes 541,590 540,805 540,030 539,285 540,664 535,249 541,590 541,912 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 27,416 18,357 22,001 27,573 26,630 29,741 27,416 25,028 25 Depository institutions 21,634 12,996 16,623 13,583 19,709 13,480 21,634 18,513 26 U.S. Treasury—General account 5,445 5,031 5,024 13,668 6,613 15,868 5,445 6,208 27 Foreign—Official accounts 110 86 107 86 117 142 110 105 28 Other 226 244 247 238 191 251 226 203 29 Deferred credit items 10,619 8,026 7,495 7,676 6,952 6,178 10,619 5,379 30 Other liabilities and accrued dividends7 4,752 4,887 4,844 4,767 4,811 4,931 4,752 4,781 31 Total liabilities 584,377 572,076 574,370 579,301 579,057 576,100 584,377 577,099 CAPITAL ACCOUNTS .32 Capital paid in 6,781 6,789 6,856 6,863 6,865 6,752 6,781 6,865 33 Surplus 2,679 2,679 2,679 2,679 2,679 6,259 2,679 2,679 34 Other capital accounts 1,058 905 960 945 958 617 1,058 1,395 35 Total liabilities and capital accounts 594,896 582,449 584,865 589,788 589,559 589,727 594,896 588,037 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) 777,900 776,881 775,873 774,853 773,885 783,126 777,900 773,550 38 LESS: Held by Federal Reserve Banks 236,310 236,076 235,843 235,568 233,221 247,877 236,310 231,639 39 Federal Reserve notes, net 541,590 540,805 540,030 539,285 540,664 535,249 541,590 541,912 Collateral held against notes, net 40 Gold certificate account 11,048 11,048 11,048 11,048 11,047 11,048 11,048 11,046 41 Special drawing rights certificate account 5,200 5,200 5,200 4,200 4,200 5,200 5,200 4,200 42 Other eligible assets 0 859 0 0 0 0 0 0 43 U.S. Treasury and agency securities 525,342 523,699 523,783 524,037 525,417 519,001 525,342 526,665 44 Total collateral 541,590 540,805 540,030 539,285 540,664 535,249 541,590 541,912 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 2000 May 31 June 7 June 14 June 21 June 28 Apr. 30 May 31 June 30 1 Total loans 431 345 456 583 526 240 440 512 2 Within fifteen days1 311 80 180 560 481 178 402 307 3. Sixteen days to ninety days 120 265 276 23 45 63 38 206 4. 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 506,744 505,939 507,396 508,531 507,884 506,693 506,744 504,949 6 Within fifteen days1 15,491 18,827 14,928 18,944 17,350 6,882 15,491 1,038 7 Sixteen days to ninety days 105,584 103,196 108,103 108,419 107,056 117,248 105,584 118,287 8 Ninety-one days to one year 139,209 137,454 137,304 133,553 135,157 137,144 139,209 138,867 9 One year to five years 125,525 125,525 125,525 125,526 126,231 124,898 125,525 124,668 10 Five years to ten years 53,435 53,436 53,437 53,437 53,437 52,387 53,435 53,438 11 More than ten years 67,500 67,500 68,100 68,652 68,652 68,135 67,500 68,652 12 Total federal agency obligations 140 140 140 140 140 140 140 140 13 Within fifteen days' 0 0 0 0 0 0 0 0 14 Sixteen days to ninety days 0 0 10 10 10 0 0 10 15 Ninety-one days to one year 10 10 0 0 0 10 10 0 16 One year to five years 10 10 10 10 10 10 10 10 17 Five years to ten years 120 120 120 120 120 120 120 120 18 More than ten years 0 0 0 0 0 0 0 0 1. Holdings under repurchase agreements are classified as maturing within fifteen days in 2. Includes compensation that adjusts for the effects of inflation on the principal of accordance with maximum maturity of the agreements. inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A12 Domestic Financial Statistics • September 2000 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 2000 11999966 11999977 11999988 11999999 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Nov. Dec. Jan. Feb. Mar. Apr. May June Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 50.17 46.87 45.19 41.74 41.56 41.74 43.11 41.64 40.45 40.92 41.35 39.96 22 NNoonnbboorrrroowweedd rreesseerrvveess44 50.02 46.54 45.07 41.42 41.33 41.42 42.74 41.53 40.27 40.62 40.99 39.48 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt55 50.02 46.54 45.07 41.42 41.33 41.42 42.74 41.53 40.27 40.62 40.99 39.48 44 RReeqquuiirreedd rreesseerrvveess 48.76 45.18 43.68 40.43 40.23 40.43 41.09 40.52 39.24 39.77 40.39 38.83 55 MMoonneettaarryy bbaassee66 451.62 479.17 512.75 591.19 569.43 591.19 591.97 573.50r 571.37r 572.72r 573.76r 575.01 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.31 41.89 41.20 41.89 44.23 42.10 39.75 40.60 41.58 39.25 7 Nonborrowed reserves 51.30 47.69 45.19 41.57 40.96 41.57 43.86 41.99 39.58 40.30 41.21 38.77 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.19 41.57 40.96 41.57 43.86 41.99 39.58 40.30 41.21 38.77 9 Required reserves8 50.04 46.33 43.80 40.58 39.87 40.58 42.20 40.99 38.55 39.45 40.61 38.11 10 Monetary base9 456.63 484.98 518.27 600.63 572.01 600.63 596.90 571.87r 570.24r 571.37r 572.87r 573.93 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves11 51.17 47.92 45.21 41.66 40.97 41.66 44.23 42.10 39.74 40.58 41.56 39.22 17 Nonborrowed reserves 51.02 47.60 45.09 41.33 40.74 41.33 43.86 41.99 39.56 40.28 41.19 38.74 13 Nonborrowed reserves plus extended credit5 51.02 47.60 45.09 41.33 40.74 41.33 43.86 41.99 39.56 40.28 41.19 38.74 14 Required reserves 49.76 46.24 43.70 40.35 39.64 40.35 42.21 40.98 38.53 39.43 40.59 38.09 15 Monetary base12 463.40 491.79 525.06 607.93 578.98 607.93 604.63 579.22r 577.12r 578.19r 579.70r 580.81 16 Excess reserves13 1.42 1.69 1.51 1.31 1.33 1.31 2.03 1.11 1.21 1.15 .97 1.14 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .24 .32 .37 .11 .18 .30 .36 .48 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 2000 IItteemm D 19 e 9 c 6 . D 19 e 9 c 7 . D 19 e 9 c 8 . D 19 e 9 c 9 . Mar. Apr. May June Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,122.9 1,112.3' 1,116.5' 1,105.1' 1,102.3 2 M2 3,822.9 4,041.9 4,396.8 4,655.4 4,728.2r 4,768.7r 4,764.8' 4,777.0 3 M3 4,952.4 5,403.2 5,996.7 6,477.0 6,612.1r 6,657.5r 6,680.3' 6,719.0 4 Debt 14,443.9 15,234.7 16,282.9 17,381.1 17,639.2 17,723.0' 17,776.5 n.a. Ml components 5 Currency3 394.3 424.8 459.5 515.5 551177..55'' 551188..55'' 552200..00'' 521.8 6 Travelers checks4 8.3 8.1 8.2 8.3 8.2 8.2 8.3 8.8 7 Demand deposits5 402.3 395.3 379.3 355.2 343.0 341.9 334.4 330.4 8 Other checkable deposits6 276.1 245.8 250.3 244.0 243.7 247.9' 242.5 241.2 Nontransaction components 9 In M27 2,741.8 2,967.9 3,299.4 3,532.5 3,615.9 3,652.2' 3,659.7' 3,674.7 10 In M3 only8 1,129.5 1,361.3 1,599.9 1,821.5 1,883.9 1,888.8' 1,915.5' 1,941.9 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.7 1,309.1 1,325.2 1,322.2 1,328.8 12 Small time deposits9 593.3 625.4 626.1 634.7 650.0r 659,7 666.9' 677.9 13 Large time deposits'0, 11 413.9 488.3 539.3 614.4 627.6 647.2' 654.7' 665.6 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.7 452.3 449.4' 453.2' 452.3 15 Small time deposits9 353.6 342.8 325.6 320.5 324.7 324.2 326.4 329.1 16 Large time deposits10 78.3 85.6 88.9 91.5 95.1 94.6 93.3' 94.9 Money market mutual funds 17 Retail 524.4 602.8 749.2 842.9 879.8 893.8 890.9 886.6 18 Institution-only 312.0 380.8 518.4 607.4 640.7 640.0 649.2 657.6 Repurchase agreements and Eurodollars 19 Repurchase agreements'2 210.7 256.0 300.8 334.7 339.5 334.5 341.2 347.9 20 Eurodollars12 114.6 150.7 152.6 173.5 180.9 172.6 177.0 176.1 Debt components 21 Federal debt 3,781.3 3,800.3 3,750.8 3,659.5 3,618.8 3,602.3 3,546.5 n.a. 22 Nonfederal debt 10,662.6 11,434.4 12,532.1r 13,721.6r 14,020.4 14,120.7' 14,230.1 n.a. Not seasonally adjusted Measures 23 Ml 1.105.1 1,097.7 1,121.3 1,147.4 1,109.1' 1,125.2' 1,099.0' 1,099.9 24 M2 3.845.2 4,065.0 4,422.0 4,683.7 4,749.2' 4,814.3' 4,736.7' 4,757.6 25 M3 4,973.4 5,427.2 6,026.3 6,512.0 6,645.6' 6,701.5' 6,658.4' 6,695.5 26 Debt 14,440.5 15,231.8 16,279.8 17,380.1' 17,620.2 17,696.0' 17,731.9 n.a. Ml components 27 Currency3 397.9 428.9 464.1 521.2 517.6' 518.9' 519.6' 521.2 28 Travelers checks4 8.6 8.3 8.4 8.4 8.3 8.3 8.4 8.7 29 Demand deposits5 419.9 412.4 395.9 371.2 338.5 344.4 329.2 328.5 30 Other checkable deposits6 278.8 248.2 252.8 246.7 244.6 253.6 241.8' 241.5 Nontransaction components 31 In M27 2,740.0 2,967.4 3,300.7 3,536.3 3,640.1 3,689.1 3,637.7' 3.657.8 32 In M3 only8 1,128.2 1,362.2 1,604.3 1,828.3 1,896.4 1,887.2' 1,921.7' 1.937.9 Commercial banks 33 Savings deposits, including MMDAs . . 903.3 1,020.4 1,186.0 1,288.5 1,311.8 1,341.5 1,317.4 1,329.7 34 Small time deposits' 592.7 625.3 626.5 635.5 652.0' 660.3' 664.6 673.7 35 Large time deposits10' " 413.2 487.2 537.8 612.6 627.8 646.9' 659.3' 667.2 Thrift institutions 36 Savings deposits, including MMDAs . . 366.3 376.5 414.2 449.7 453.2 454.9 451.6' 452.6 37 Small time deposits9 353.2 342.8 325.8 321.0 325.7 324.6' 325.3 327.1 38 Large time deposits10 78.1 85.4 88.6 91.2 95.1 94.5 94.0' 95.1 Money market mutual funds 39 Retail 524.3 602.3 748.1 841.6 897.3 907.8 878.8 874.6 40 Institution-only 315.6 386.7 527.9 618.9 650.5 640.2 644.5 650.3 Repurchase agreements and Eurodollars 41 Repurchase agreements12 205.7 250.5 295.4 330.0 342.2 333.1 345.3 348.9 42 Eurodollars12 115.7 152.3 154.5 175.6 180.8 172.5 178.5 176.3 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,663.1 3,633.6 3,597.2 3,514.0 n.a. 44 Nonfederal debt 10,652.5r 11,426.0 12,524.8' 13,717.1 13,986.5 14,098.8' 14,217.9 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • September 2000 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly prises or federally related mortgage pools) and the nonfederal sectors (state and local statistical release. Historical data starting in 1959 are available from the Money and Reserves governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and seasonally adjusted Ml. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. 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 1999 2000 2000 Juner Dec.r Jan.r Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Seasonally adjusted Assets 1 Bank credit 4,560.3 4,762.9 4,788.1 4,818.8 4,858.5 4,908.3 4,974.0 5,003.5 4,978.0 4,991.5 5,024.6 5,016.3 2 Securities in bank credit 1,214.4 1,263.7 1,267.1 1,267.3 1,276.5 1,284.7 1,302.7 1,297.1 1,295.7 1,297.5 1,299.6 1,296.5 3 U.S. government securities 811.7 804.1 812.1 813.1 812.7 810.9 812.2 813.9 809.5 812.0 816.3 816.1 4 Other securities 402.7 459.6 455.0 454.2 463.8 473.9 490.5 483.1 486.3 485.5 483.3 480.5 5 Loans and leases in bank credit2 . . . 3,345.9 3,499.2 3,521.0 3,551.5 3,582.0 3,623.6 3,671.3 3,706.4 3,682.2 3,694.0 3,725.0 3,719.8 6 Commercial and industrial 963.8 1,002.1 1,011.8 1,019.1 1,027.6 1,040.9 1,061.4 1,064.4 1,066.1 1,064.9 1,068.7 1,059.3 7 Real estate 1,369.8 1,470.6 1,489.0 1,505.2 1,523.5 1,546.7 1,569.8 1,589.6 1,580.8 1,586.0 1,594.9 1,594.1 8 Revolving home equity 104.3 101.6 103.6 104.7 107.1 112.6 116.0 116.6 117.3 117.5 116.8 114.9 9 Other 1,265.5 1,368.9 1,385.5 1,400.5 1,416.4 1,434.1 1,453.8 1,472.9 1,463.5 1,468.4 1,478.1 1,479.2 10 Consumer 488.9 489.7 496.4 502.6 505.5 505.7 508.4 515.5 509.2 512.6 519.1 521.3 11 Security3 130.7 153.1 143.2 142.4 142.6 143.5 144.6 149.5 141.2 147.1 152.4 156.1 1? Other loans and leases 392.7 383.7 380.5 382.2 382.8 386.9 387.0 387.3 385.0 383.5 389.9 389.0 H Interbank loans 223.2 229.5 225.1 236.1 237.4 238.2 242.6 242.8 233.6 238.2 246.2 250.4 14 Cash assets4 261.9 287.5 283.3 281.6 275.1 285.2 277.4 273.0 276.5 268.5 280.5 265.3 15 Other assets5 346.9 377.8 382.7 378.3 376.6 378.0 387.5 389.0 386.2 391.0 390.1 388.8 16 Total assets6 5,333.5 5,597.9 5,620.1 5,655.9 5,688.4 5,750.1 5,8213 5,848.2 5,814.2 5,829.1 5,881.4 5,860.2 Liabilities 17 Deposits 3,383.5 3,524.5 3,540.2 3,558.4 3,575.4 3,626.3 3,631.8 3,656.0 3,643.0 3,661.9 3,652.5 3,651.0 18 Transaction 651.1 630.2 626.6 625.2 626.2 625.9 629.2 616.6 606.8 608.5 627.2 624.0 19 Nontransaction 2,732.3 2,894.3 2,913.6 2,933.2 2,949.3 3,000.4 3,002.6 3,039.3 3,036.1 3,053.5 3,025.3 3,027.0 70 Large time 723.1 828.1 840.3 845.8 853.0 874.4 880.5 894.8 885.1 898.8 896.5 897.2 ?1 Other 2,009.3 2,066.2 2,073.3 2,087.4 2,096.2 2,126.0 2,122.1 2,144.6 2,151.0 2,154.7 2,128.8 2,129.8 ?? Borrowings 1,023.3 1,116.6 1,133.6 1,130.0 1,150.8 1,184.5 1,196.5 1,196.6 1,182.2 1,188.5 1,204.9 1,208.3 ?3 From banks in the U.S 333.7 346.8 359.7 364.8 372.9 373.9 379.9 371.1 373.4 374.9 366.8 365.3 ?4 From others 689.6 769.8 773.8 765.2 777.9 810.6 816.6 825.5 808.8 813.6 838.0 843.1 ?5 Net due to related foreign offices 217.4 221.1 229.7 233.9 233.1 223.9 249.5 259.3 274.7 252.7 258.5 251.1 26 Other liabilities 277.5 302.4 290.4 295.6 289.5 289.5 312.4 303.2 303.1 301.4 306.5 304.9 27 Total liabilities 4,901.6 5,164.6 5,193.9 5,217.8 5,248.9 53243 5,390.2 5,415.1 5,402.9 5,404.5 5,422.4 5,4153 28 Residual (assets less liabilities)7 431.9 433.3 426.2 438.0 439.5 425.8 431.1 433.0 411.3 424.7 459.0 444.8 Not seasonally adjusted Assets ?9 Bank credit 4,546.9 4,795.3 4,812.3 4,821.8 4,852.7 4,908.9 4,966.0 4,987.5 4,971.5 4,978.7 4,998.0 4,997.5 30 Securities in bank credit 1,206.9 1,273.8 1,275.6 1,271.4 1,277.9 1,286.6 1,300.3 1,286.9 1,294.4 1,287.0 1,284.6 1,283.5 31 U.S. government securities 811.2 806.1 813.9 817.0 819.6 819.5 817.5 813.2 815.9 811.7 812.6 811.9 3? Other securities 395.7 467.7 461.8 454.3 458.3 467.1 482.8 473.7 478.5 475.3 471.9 471.6 33 Loans and leases in bank credit2 ... 3,340.0 3,521.4 3,536.6 3,550.4 3,574.8 3,622.3 3,665.8 3,700.7 3,677.2 3,691.7 3,713.4 3,713.9 34 Commercial and industrial 963.2 1,004.1 1,009.3 1,019.8 1,031.6 1,047.9 1,064.3 1,063.8 1,064.7 1,063.6 1,068.4 1,059.0 35 Real estate 1,367.6 1,475.4 1,493.1 1,502.2 1,518.7 1,542.2 1,567.2 1,586.2 1,581.1 1,583.9 1,587.4 1,589.9 36 Revolving home equity 104.4 102.0 103.8 104.4 106.1 111.7 115.6 116.7 116.9 117.6 117.2 115.1 37 Other 1,263.3 1,373.4 1,389.2 1,397.7 1,412.7 1,430.5 1,451.6 1,469.5 1,464.1 1,466.3 1,470.2 1,474.8 38 Consumer 487.0 495.1 503.5 504.7 503.9 504.6 508.0 514.5 507.6 510.8 518.0 521.3 39 Security3 130.2 157.8 147.3 143.9 141.6 144.0 143.1 149.4 140.6 150.6 152.2 153.5 40 Other loans and leases 392.0 389.0 383.4 379.8 378.9 383.6 383.2 386.9 383.2 382.9 387.4 390.2 41 Interbank loans 222.7 234.9 226.0 237.6 243.2 245.0 242.4 242.2 236.4 241.6 239.6 245.8 4? Cash assets4 258.0 307.4 297.4 282.2 266.7 282.3 275.2 269.1 266.3 269.7 270.3 264.2 43 Other assets5 349.2 377.8 381.2 380.6 380.0 381.6 390.8 390.8 390.0 392.5 387.0 391.9 44 Total assets6 5,317.8 5,655.5 5,658.1 5,6633 5,683.4 5,758.5 5,814.4 5,8293 5,803.9 5,8223 5,834.8 5,838.8 Liabilities 45 Deposits 3,373.6 3,566.8 3,553.5 3,557.3 3,579.3 3,644.3 3,617.1 3,644.0 3,644.8 3,665.8 3,614.7 3,627.4 46 Transaction 649.9 662.9 638.1 618.2 619.1 634.6 619.8 615.6 601.5 616.5 610.2 625.8 47 Nontransaction 2,723.6 2,903.9 2,915.4 2,939.0 2,960.2 3,009.7 2,997.3 3,028.5 3,043.3 3,049.3 3,004.5 3,001.7 48 Large time 715.1 843.1 851.3 858.4 861.5 874.0 876.7 883.9 880.4 890.2 884.1 881.7 49 Other 2,008.5 2,060.8 2,064.1 2,080.6 2,098.7 2,135.8 2,120.6 2,144.6 2,162.9 2,159.1 2,120.4 2,119.9 50 Borrowings 1,025.2 1,125.8 1,152.1 1,133.9 1,145.8 1,182.7 1,206.0 1,200.5 1,167.1 1,179.5 1,231.9 1,224.4 51 From banks in the U.S 334.0 351.8 363.6 366.4 372.8 375.2 380.6 372.3 368.2 371.0 373.8 372.5 57 From others 691.1 774.0 788.5 767.5 773.0 807.5 825.4 828.2 798.9 808.5 858.2 851.9 53 Net due to related foreign offices .... 211.0 227.3 233.3 248.3 236.7 213.2 249.9 249.8 256.1 240.9 247.7 256.4 54 Other liabilities 276.1 304.6 291.8 297.9 290.2 288.4 311.0 301.6 302.0 300.1 304.3 303.3 55 Total liabilities 4,885.8 5,224.5 5,230.7 5,2373 5,252.0 5,328.6 5384.0 5,395.9 5,370.1 5386.2 5,398.6 5,411.5 56 Residual (assets less liabilities)7 432.0 431.0 427.4 426.0 431.5 430.0 430.4 433.4 433.8 436.1 436.2 427.3 MEMO 57 Revaluation gains on off-balance-sheet items8 90.6 104.1 102.4 104.9 105.3 104.7 117.5 n.a. 108.2 106.3 104.8 n.a. 58 Revaluation losses on off-balancesheet items8 92.0 102.4 100.9 104.4 102.3 103.5 117.3 n.a. 107.1 105.3 104.4 n.a. Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • September 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 June Dec.r Jan.r Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Seasonally adjusted Assets 1 Bank credit 4,021.6r 4,214.6 4,239.8 4,277.9 4,314.3 4,340.1 4,392.3 4,430.0 4,406.1 4,416.9 4,448.0 4,444.7 2 Securities in bank credit l,015.2r 1,061.3 1,066.0 1,075.4 1,081.7 1,083.5 1,095.4 1,095.8 1,093.9 1,094.1 1,096.9 1,098.2 3 U.S. government securities 724.3r 723.4 731.1 737.3 734.8 731.6 732.9 735.5 731.6 733.9 737.5 737.3 4 Other securities 290.9 338.0 334.9 338.1 346.8 351.9 362.5 360.4 362.3 360.2 359.4 361.0 5 Loans and leases in bank credit2 3,006.4r 3,153.2 3,173.8 3,202.5 3,232.6 3,256.6 3,296.9 3,334.2 3,312.2 3,322.8 3,351.1 3,346.4 6 Commercial and industrial 764.8r 808.7 816.8 822.4 829.5 839.2 853.9 856.7 857.7 856.4 859.7 853.6 7 Real estate 1,350.8r 1,453.6 1,471.6 1,487.5 1,505.4 1,528.2 1,551.0 1,570.5 1,561.9 1,567.2 1,575.7 1,574.9 8 Revolving home equity 104.3r 101.6 103.6 104.7 107.1 112.6 116.0 116.6 117.3 117.5 116.8 114.9 9 Other 1,246.4r 1,351.9 1,368.0 1,382.7 1,398.3 1,415.6 1,435.1 1,453.9 1,444.6 1,449.6 1,458.9 1,459.9 10 Consumer 488.9r 489.7 496.4 502.6 505.5 505.7 508.4 515.5 509.2 512.6 519.1 521.3 11 Security3 78.9 86.1 76.5 75.7 76.2 65.7 63.9 68.7 63.1 68.3 71.8 71.3 12 Other loans and leases 323.1r 315.3 312.6 314.4 316.1 317.8 319.6 322.7 320.3 318.3 324.8 325.3 13 Interbank loans 198.4 199.9 196.2 203.5 209.0 208.9 210.9 214.4 205.7 213.6 216.5 218.9 14 Cash assets4 225.7 234.1 231.0 230.3 226.3 236.3 232.1 227.0 231.8 221.7 234.2 219.2 15 Other assets5 313.lr 341.2 344.1 340.0 337.5 338.2 346.6 345.8 345.1 348.7 345.2 344.8 16 Total assets6 4,700.3r 4,930.3 4,952.2 4,993.1 5,028.2 5,064.3 5,122.3 5,157.4 5,129.0 5,141.0 5,184.1 5,167.2 Liabilities 17 Deposits 3,075.2 3,150.4 3,160.5 3,178.9 3,193.6 3,233.9 3,244.6 3,268.6 3,262.1 3,272.6 3,262.2 3,262.4 18 Transaction 640.3 619.6 615.8 614.2 614.9 614.9 617.7 605.0 594.9 596.1 615.5 613.5 19 Nontransaction 2,434.9 2,530.8 2,544.7 2,564.8 2,578.7 2,619.0 2,626.8 2,663.6 2,667.2 2,676.5 2,646.7 2,648.9 20 Large time 426.8 467.8 473.3 479.0 485.3 496.0 507.3 520.0 517.2 522.6 518.2 520.3 21 Other 2,008.1 2,063.0 2,071.4 2,085.8 2,093.4 2,123.0 2,119.5 2,143.6 2,150.0 2,153.9 2,128.5 2,128.6 22 Borrowings 839.9 935.2 954.1 954.4 973.3 984.2 991.2 990.8 979.9 983.0 998.9 1,001.1 23 From banks in the U.S 307.4r 322.4 340.0 346.6 353.4 353.3 362.2 352.5 358.5 355.0 347.4 346.9 24 From others 532.5r 612.7 614.1 607.8 619.8 630.9 629.0 638.4 621.4 628.0 651.5 654.2 25 Net due to related foreign offices .... 146.2 182.0 194.2 207.1 213.2 208.9 229.4 240.9 249.6 240.0 241.7 231.6 26 Other liabilities 213.8 232.9 220.3 224.1 220.3 218.9 235.2 233.2 232.2 230.2 234.3 238.4 27 Total liabilities 4,275.1 4,500.4 4,529.2 4,564.5 4,600.3 4,645.9 4,700.4 4,733.5 4,723.8 4,725.9 4,737.1 4,733.5 28 Residual (assets less liabilities)7 425.lr 429.9 423.0 428.6 427.9 418.4 421.9 423.9 405.2 415.2 447.0 433.7 Not seasonally adjusted Assets 29 Bank credit 4,016.0r 4,236.9 4,256.2 4,276.7 4,309.8 4,347.0 4,392.8 4,423.5 4,407.3 4,414.7 4,433.2 4,433.9 30 Securities in bank credit l,012.1r 1,067.7 1,070.6 1,078.2 1,086.0 1,089.0 1,096.0 1,091.4 1,095.8 1,090.5 1,089.3 1,090.9 31 U.S. government securities 123.1' 724.0 732.2 741.1 742.0 739.5 737.2 734.7 737.1 733.7 734.4 733.1 32 Other securities 288.3 343.7 338.3 337.1 344.0 349.5 358.8 356.7 358.7 356.8 354.9 357.8 33 Loans and leases in bank credit2 3,004.0r 3,169.2 3,185.6 3,198.4 3,223.8 3,258.0 3,296.8 3,332.2 3,311.5 3,324.3 3,344.0 3,343.1 34 Commercial and industrial 767.0r 807.1 812.9 820.6 831.8 848.0 861.1 859.4 860.1 859.1 862.5 856.0 35 Real estate l,348.7r 1,458.5 1,475.4 1,484.1 1,500.5 1,523.9 1,548.5 1,567.3 1,562.3 1,565.2 1,568.3 1,570.9 36 Revolving home equity 104.4r 102.0 103.8 104.4 106.1 111.7 115.6 116.7 116.9 117.6 117.2 115.1 37 Other l,244.4r 1,356.4 1,371.6 1,379.7 1,394.4 1,412.2 1,432.9 1,450.6 1,445.3 1,447.6 1,451.1 1,455.9 38 Consumer 487.0r 495.1 503.5 504.7 503.9 504.6 508.0 514.5 507.6 510.8 518.0 521.3 39 Security3 78.2 90.3 80.1 77.4 74.9 66.2 62.5 68.3 62.7 71.1 71.7 67.8 40 Other loans and leases 323,0r 318.2 313.7 311.6 312.7 315.3 316.7 322.7 318.8 318.1 323.4 327.0 41 Interbank loans 197.9 205.4 197.0 205.0 214.9 215.7 210.7 213.9 208.4 217.0 209.9 214.3 42 Cash assets4 222.1 249.7 242.9 231.5 218.9 235.6 231.1 223.9 222.2 223.7 224.8 218.9 43 Other assets5 317.0 339.1 341.2 340.5 339.7 342.6 350.6 349.8 350.1 351.8 345.1 351.0 44 Total assets6 4,694.5r 4,971.4 4,978.7 4,995.0 5,024.4 5,081.9 5,125.5 5,151.1 5,128.0 5,147.3 5,153.2 5,157.8 Liabilities 45 Deposits 3,068.3 3,184.2 3,167.0 3,170.8 3,191.3 3,250.8 3,229.1 3,261.0 3,265.3 3,280.0 3,229.4 3,244.5 46 Transaction 639.4 651.8 627.2 607.3 608.0 623.9 608.9 604.3 590.4 604.7 598.9 615.1 47 Nontransaction 2,428.8 2,532.4 2,539.8 2,563.5 2,583.3 2,626.9 2,620.2 2,656.8 2,674.9 2,675.3 2,630.5 2,629.4 48 Large time 422.6 474.0 478.9 485.6 487.0 493.6 502.0 514.5 514.4 518.6 512.5 511.8 49 Other 2,006.3 2,058.4 2,060.9 2,077.9 2,096.3 2,133.4 2,118.2 2,142.2 2,160.5 2,156.7 2,118.0 2,117.5 50 Borrowings 841.8 944.3 972.6 958.3 968.2 982.4 1,000.7 994.7 964.8 974.0 1,026.0 1,017.2 51 From banks in the U.S 307.8r 327.4 343.9 348.1 353.3 354.6 362.9 353.6 353.3 351.1 354.3 354.1 52 From others 534.0r 617.0 628.7 610.2 614.9 627.8 637.8 641.1 611.6 622.8 671.6 663.0 53 Net due to related foreign offices .... 141.4 183.0 195.5 219.1 216.2 202.9 234.0 232.8 235.5 230.8 231.5 234.9 54 Other liabilities 213.6 233.1 220.1 224.4 220.7 219.5 235.2 233.0 232.3 230.1 233.8 238.0 55 Total liabilities 4,265.2 4,544.7 4,555.1 4,572.6 4,596.4 4,655.6 4,699.0 4,721.5 4,697.9 4,715.0 4,720.8 4,734.6 56 Residual (assets less liabilities)7 429.3r 426.8 423.6 422.3 428.0 426.3 426.5 429.5 430.0 432.3 432.5 423.2 MEMO 57 Revaluation gains on off-balance-sheet items8 52.8 64.5 62.7 64.8 66.0 65.4 72.7 n.a. 67.6 66.4 65.7 n.a. 58 Revaluation losses on off-balancesheet items8 55.2 63.9 61.9 64.4 64.1 65.1 73.0 n.a. 67.7 66.3 66.0 n.a. 59 Mortgage-backed securities9 334.5 347.8 348.5 353.1 354.3 358.9 357.4 n.a. 357.0 356.2 353.6 n.a. 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 1999 2000 2000 Juner Dec.r Jan/ Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Seasonally adjusted Assets 1 Bank credit 2,265.8 2,368.5 2,367.3 2,386.0 2,408.1 2,424.2 2,460.2 2,475.2 2,467.3 2,470.5 2,493.0 2,471.2 2 Securities in bank credit 514.5 551.8 550.4 555.6 563.4 566.1 576.5 575.9 576.6 574.3 577.2 576.7 3 U.S. government securities 355.2 354.7 355.5 356.6 356.2 354.7 356.4 359.3 356.9 358.1 362.3 359.5 4 Trading account 23.4 19.5 20.4 21.5 20.4 21.2 23.4 22.7 23.0 21.8 22.9 22.7 5 Investment account 331.7 335.1 335.1 335.1 335.8 333.4 333.0 336.7 333.9 336.3 339.4 336.7 6 Other securities 159.3 197.2 194.8 199.0 207.2 211.5 220.1 216.6 219.7 216.2 215.0 217.2 7 Trading account 69.0 86.7 81.5 85.9 91.1 92.9 101.2 98.0 100.9 97.3 96.0 99.7 8 Investment account 90.3 110.5 113.3 113.1 116.1 118.6 118.9 118.5 118.9 119.0 119.0 117.5 9 State and local government . 23.0 24.1 24.4 24.5 24.7 25.1 25.4 25.7 25.4 25.5 25.5 26.1 10 Other 67.2 86.3 88.9 88.6 91.4 93.4 93.5 92.9 93.4 93.5 93.5 91.5 11 Loans and leases in bank credit2 .. . 1,751.3 1,816.6 1,816.9 1,830.4 1,844.8 1,858.0 1,883.7 1,899.3 1,890.7 1,896.2 1,915.8 1,894.6 12 Commercial and industrial 526.7 552.1 555.6 557.7 560.4 567.8 579.1 578.2 581.6 580.0 581.6 571.5 13 Bankers acceptances 1.0 1.1 1.0 1.0 1.0 1.0 1.1 1.0 1.0 1.0 1.0 1.0 14 Other 525.7 551.0 554.6 556.8 559.5 566.8 578.1 577.2 580.7 579.0 580.6 570.5 15 Real estate 684.0 737.5 744.9 750.3 759.1 774.9 787.8 797.5 794.3 796.6 802.5 795.5 16 Revolving home equity 69.1 64.2 65.5 66.0 67.6 72.4 75.0 75.4 76.0 76.1 76.0 73.7 17 Other 615.0 673.2 679.4 684.3 691.4 702.5 712.8 722.1 718.3 720.5 726.5 721.8 18 Consumer 226.9 220.2 221.6 226.9 228.9 228.0 228.5 229.6 228.4 230.0 231.9 228.6 19 Security3 72.7 79.1 69.8 68.9 69.3 58.6 57.3 61.8 56.2 61.3 64.9 64.6 20 Federal funds sold to and repurchase agreements with broker-dealers 55.1 59.9 49.5 46.5 48.2 37.7 38.8 43.8 39.3 43.2 47.2 45.7 21 Other 17.6 19.2 20.3 22.4 21.1 20.9 18.6 18.0 17.0 18.1 17.7 18.9 22 State and local government 11.1 11.7 11.8 11.9 12.1 12.1 12.1 12.2 12.0 12.3 12.1 12.3 23 Agricultural 7.9 9.0 9.1 9.3 9.3 9.4 9.4 9.5 9.4 9.4 9.5 9.5 24 Federal funds sold to and repurchase agreements with others 16.1 11.7 11.1 11.2 11.2 11.5 11.6 12.5 11.6 11.9 12.0 14.2 25 All other loans 96.2 76.0 75.3 76.5 76.8 76.7 77.9 75.1 76.4 73.8 76.8 73.1 26 Lease-financing receivables 109.7 119.3 117.6 117.7 117.7 119.0 120.1 123.0 120.8 120.9 124.6 125.3 27 Interbank loans 134.5 135.6 132.9 137.9 142.8 136.3 141.3 142.4 137.4 142.2 142.7 144.9 28 Federal funds sold to and repurchase agreements with commercial banks 77.7 64.2 59.0 65.5 68.5 65.7 71.4 70.5 69.2 71.5 68.2 71.3 29 Other 56.9 71.4 73.9 72.4 74.3 70.6 69.8 71.9 68.2 70.7 74.4 73.6 30 Cash assets4 145.0 146.8 147.2 148.3 145.3 153.9 147.6 144.7 148.3 140.0 150.6 139.3 31 Other assets5 222.6 241.1 240.4 236.6 234.5 233.5 237.8 238.0 236.3 239.2 238.4 239.0 32 Total assets6 2,732.8 2,856.7 2,853.1 2,874.5 2,8963 2,913.4 2,952.4 2,966.0 2,954.8 2^57.5 2,990.4 2,9603 Liabilities 33 Deposits 1,584.3 1,593.5 1,589.2 1,596.6 1,601.5 1,623.9 1,629.1 1,622.9 1,631.9 1,633.5 1,620.2 1,601.3 34 Transaction 337.9 320.6 313.7 312.1 311.6 310.0 313.4 305.9 303.1 300.7 313.7 306.4 35 Nontransaction 1,246.4 1,272.9 1,275.6 1,284.5 1,289.9 1,313.8 1,315.8 1,317.0 1,328.8 1,332.8 1,306.5 1,294.9 36 Large time 205.9 227.8 230.2 231.4 234.7 243.1 250.8 257.6 256.1 260.6 255.4 256.7 37 Other 1,040.5 1,045.1 1,045.4 1,053.2 1,055.2 1,070.7 1,065.0 1,059.4 1,072.7 1,072.2 1,051.0 1,038.2 38 Borrowings 562.8 629.0 629.4 627.8 638.7 646.2 645.9 651.4 636.4 643.2 657.3 665.6 39 From banks in the U.S 164.9 176.8 186.2 190.6 193.2 195.9 200.6 194.8 199.8 198.4 189.5 188.9 40 From others 397.9 452.1 443.2 437.2 445.5 450.2 445.3 456.7 436.6 444.8 467.8 476.7 41 Net due to related foreign offices 142.1 177.5 189.1 201.9 207.8 203.6 223.4 231.7 244.6 234.7 236.7 214.0 42 Other liabilities 161.0 176.8 164.6 166.4 164.7 164.3 177.8 177.4 174.9 171.9 174.8 188.7 43 Total liabilities 2,450.2 2,576.8 2,572.3 2,592.6 2,612.8 2,638.0 2,676.2 2,683.6 2,687.7 2,6833 2,689.0 2,669.7 44 Residual (assets less liabilities)7 282.5 279.9 280.7 281.8 283.6 275.4 276.1 282.4 267.1 274.1 301.4 290.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • September 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 1999 2000 2000 Juner Dec.r Jan.r Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Not seasonally adjusted Assets 45 Bank credit 2,255.0 2,390.4 2,390.0 2,397.4 2,409.8 2,427.7 2,453.9 2,463.2 2,462.1 2,462.9 2,473.1 2,453.8 46 Securities in bank credit 509.2 558.7 556.7 561.7 566.7 567.2 573.3 569.6 575.9 568.4 567.5 567.8 47 U.S. government securities 352.2 355.9 358.3 362.9 362.1 359.3 357.4 356.3 359.7 355.6 356.6 353.2 48 Trading account 22.9 19.4 21.1 22.5 21.4 21.5 22.0 22.5 24.7 22.3 22.4 20.4 49 Investment account 329.3 336.5 337.2 340.4 340.7 337.8 335.5 333.9 335.1 333.3 334.2 332.7 50 Mortgage-backed securities . . 213.7 217.3 217.1 221.2 222.1 220.5 217.9 216.5 217.8 216.9 215.6 215.4 51 Other 115.6 119.2 120.0 119.2 118.6 117.3 117.6 117.4 117.2 116.4 118.6 117.3 52 One year or less 22.8 22.5 23.3 27.1 28.8 28.6 30.3 30.2 29.7 29.3 31.4 30.4 53 One to five years 54.7 57.6 57.3 54.4 52.6 51.4 51.6 52.3 52.5 52.1 52.1 52.4 54 More than five years . . . 38.1 39.2 39.5 37.7 37.3 37.3 35.7 34.9 34.9 35.0 35.1 34.6 55 Other securities 157.0 202.8 198.4 198.8 204.6 207.9 215.9 213.3 216.2 212.8 210.9 214.7 56 Trading account 69.0 86.7 81.5 85.9 91.1 92.9 101.2 98.0 100.9 97.3 96.0 99.7 57 Investment account 88.0 116.1 116.9 112.9 113.5 115.0 114.6 115.2 115.3 115.5 114.9 115.0 58 State and local government . . 23.0 24.4 24.7 24.7 24.8 25.2 25.3 25.5 25.4 25.4 25.5 25.8 59 Other 65.0 91.7 92.2 88.2 88.7 89.8 89.3 89.7 89.9 90.1 89.4 89.2 60 Loans and leases in bank credit2 . . 1,745.8 1,831.7 1,833.4 1,835.8 1,843.1 1,860.5 1,880.6 1,893.6 1,886.2 1,894.6 1,905.6 1,886.0 61 Commercial and industrial 527.2 550.9 552.6 557.0 562.7 574.5 583.6 578.8 581.9 580.7 582.4 571.8 62 Bankers acceptances 1.0 1.1 1.0 1.0 1.0 1.0 1.1 1.0 1.0 1.0 1.0 1.0 63 Other 526.2 549.9 551.5 556.1 561.7 573.4 582.6 577.8 581.0 579.7 581.4 570.7 64 Real estate 680.9 743.0 751.1 751.6 757.4 772.0 784.9 793.2 793.1 793.7 794.9 789.8 65 Revolving home equity 69.2 64.4 65.8 65.9 66.9 71.7 74.6 75.5 75.7 76.2 76.4 73.8 66 Other 371.4 416.8 419.4 417.0 420.2 429.3 437.3 442.1 443.4 442.5 443.0 438.6 67 Commercial 240.3 261.8 265.9 268.7 270.3 271.0 273.0 275.6 274.1 275.0 275.5 277.4 68 Consumer 225.4 223.3 228.1 229.9 229.1 227.9 228.0 228.7 227.0 228.5 230.7 228.6 69 Security3 72.0 83.3 73.5 70.6 68.0 59.1 55.9 61.4 55.8 64.2 64.8 61.0 70 Federal funds sold to and repurchase agreements with broker-dealers .... 53.6 63.9 53.9 49.0 46.6 37.7 36.7 42.5 39.0 45.2 45.6 40.6 71 Other 18.5 19.4 19.6 21.6 21.4 21.3 19.2 18.9 16.8 19.0 19.2 20.4 72 State and local government .... 10.9 11.8 11.8 11.8 12.0 12.0 12.0 12.0 11.8 12.1 11.9 12.1 73 Agricultural 7.9 9.0 9.1 9.1 9.0 9.1 9.3 9.4 9.3 9.4 9.5 9.6 74 Federal funds sold to and repurchase agreements with others 16.1 11.7 11.1 11.2 11.2 11.5 11.6 12.5 11.6 11.9 12.0 14.2 75 All other loans 95.7 79.8 76.2 74.8 74.5 74.7 75.1 74.8 74.7 73.2 75.2 73.9 76 Lease-financing receivables .... 109.6 118.9 119.8 119.6 119.2 119.7 120.1 122.8 120.8 120.9 124.2 125.0 77 Interbank loans 137.3 136.7 133.5 138.2 145.6 141.5 145.1 145.5 138.0 147.2 143.6 149.5 78 Federal funds sold to and repurchase agreements with commercial banks 78.3 65.8 60.5 65.2 70.5 68.4 72.1 71.0 66.8 72.7 67.0 74.3 79 Other 58.9 70.9 73.0 73.0 75.0 73.1 73.0 74.5 71.2 74.5 76.6 75.2 80 Cash assets4 142.2 158.1 157.8 150.0 139.9 153.8 146.9 142.2 140.1 142.1 144.1 139.0 81 Other assets5 226.8 239.5 239.5 237.9 236.8 237.0 242.6 242.1 242.0 243.5 240.3 243.5 82 Total assets6 2,726.0 2,889.2 2,886.5 2,8893 2397.7 2,925.8 2,953.8 2,958.5 2,947.5 2,961.0 2,966.5 2,951.8 Liabilities 83 Deposits 1,579.5 1,618.5 1,600.6 1,597.0 1,601.2 1,633.6 1,614.3 1,618.0 1,629.1 1,639.4 1,599.0 1,593.1 84 Transaction 336.7 341.9 323.4 308.6 307.0 317.2 307.0 304.7 295.6 306.5 302.5 309.2 85 Nontransaction 1,242.8 1,276.5 1,277.2 1,288.4 1,294.3 1,316.4 1,307.4 1,313.3 1,333.5 1,332.9 1,296.6 1,283.9 86 Large time 201.6 234.0 235.8 238.0 236.4 240.6 245.5 252.1 253.3 256.5 249.7 248.3 87 Other 1,041.2 1,042.5 1,011.4 1,050.4 1,057.9 1,075.8 1,061.9 1,061.2 1,080.2 1,076.4 1,046.9 1,035.7 88 Borrowings 563.7 635.6 649.5 635.9 639.7 648.0 654.0 653.5 626.4 637.4 678.8 671.5 89 From banks in the U.S 164.4 180.3 190.6 194.7 196.6 199.6 201.9 194.3 196.5 195.5 193.5 189.7 90 From nonbanks in the U.S 399.3 455.3 458.9 441.2 443.2 448.4 452.1 459.2 429.9 441.9 485.3 481.8 91 Net due to related foreign offices .. . 137.3 178.6 190.4 213.9 210.8 197.6 228.0 223.6 230.5 225.5 226.4 217.3 92 Other liabilities 161.0 176.8 164.6 166.4 164.7 164.3 177.8 177.4 174.9 171.9 174.8 188.7 93 Total liabilities 2,441.5 2,609.5 2,605.1 2,613.2 2,616.5 2,643.5 2,674.2 2,672.7 2,660.9 2,674.2 2,679.1 2,670.7 94 Residual (assets less liabilities)7 .... 284.4 279.8 281.4 276.1 281.2 282.3 279.6 285.8 286.6 286.8 287.5 281.1 MEMO 95 Revaluation gains on off-balancesheet items8 52.5 64.2 62.4 64.5 65.7 65.1 72.4 66.2 67.3 66.1 65.4 68.1 96 Revaluation losses on off-balancesheet items8 55.1 63.7 61.7 64.2 64.0 65.0 72.9 66.4 67.6 66.1 65.9 68.4 97 Mortgage-backed securities' 237.6 249.4 251.6 250.9 252.2 253.9 251.1 248.5 251.2 250.0 248.0 245.4 98 Pass-through securities 161.8 172.7 175.3 174.5 175.8 178.6 177.0 176.8 178.0 177.4 176.6 175.3 99 CMOs, REMICs, and other mortgage-backed securities . . 75.8 76.7 76.4 76.4 76.4 75.2 74.0 71.7 73.2 72.7 71.5 70.1 100 Net unrealized gains (losses) on available-for-sale securities10 . .. -.8 -11.3 -13.8 -14.6 -13.6 -15.6 -17.2 -15.6 -17.4 -17.0 -16.8 -12.7 101 Offshore credit to U.S. residents11 . . . 37.0 24.0 23.2 23.6 24.1 24.4 23.5 22.4 22.3 22.5 22.5 22.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 1999 2000 2000 Juner Dec/ Jan.r Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Seasonally adjusted Assets 1 Bank credit 1,755.8 1,846.1 1,872.5 1,891.9 1,906.2 1,915.9 1,932.1 1,954.8 1,938.8 1,946.3 1,954.9 1,973.4 2 Securities in bank credit 500.7 509.5 515.6 519.8 518.3 517.4 518.9 519.9 517.3 519.8 519.7 521.6 3 U.S. government securities 369.1 368.7 375.5 380.7 378.6 377.0 376.5 376.1 374.7 375.8 375.2 377.8 4 Other securities 131.6 140.8 140.1 139.1 139.7 140.4 142.4 143.8 142.6 144.0 144.5 143.8 5 Loans and leases in bank credit2 1,255.0 1,336.6 1,356.9 1,372.1 1,387.9 1,398.6 1,413.2 1,434.8 1,421.5 1,426.6 1,435.3 1,451.9 6 Commercial and industrial 238.1 256.5 261.2 264.7 269.0 271.4 274.8 278.6 276.1 276.4 278.2 282.1 7 Real estate 666.7 716.1 726.7 737.1 746.3 753.3 763.3 773.0 767.6 770.6 773.2 779.4 8 Revolving home equity 35.3 37.4 38.0 38.7 39.5 40.2 41.0 41.2 41.3 41.5 40.9 41.3 9 Other 631.5 678.7 688.6 698.4 706.9 713.1 722.3 731.8 726.3 729.1 732.4 738.1 10 Consumer 262.0 269.5 274.8 275.7 276.6 277.7 279.9 285.9 280.8 282.6 287.2 292.7 11 Security-1 6.2 7.0 6.6 6.8 6.9 7.1 6.6 6.9 6.9 7.0 6.8 6.8 12 Other loans and leases 82.1 87.5 87.6 87.8 89.0 89.1 88.6 90.4 90.2 90.0 89.9 90.9 13 Interbank loans 63.8 64.3 63.3 65.6 66.2 72.6 69.6 72.1 68.3 71.4 73.8 74.0 14 Cash assets4 80.7 87.3 83.7 81.9 81.1 82.5 84.5 82.3 83.5 81.7 83.6 80.0 15 Other assets5 90.6 100.1 103.7 103.5 103.0 104.7 108.8 107.8 108.8 109.5 106.8 105.8 16 Total assets6 1,967.5 2,073.7 2,099.1 2,118.6 2,131.9 2,150.9 2,169.9 2,191.4 2,174.2 2,183.5 2,193.7 2,206.9 Liabilities 17 Deposits 1,490.8 1,556.9 1,571.3 1,582.4 1,592.0 1,610.0 1,615.5 1,645.6 1,630.2 1,639.1 1,642.1 1,661.1 18 Transaction 302.3 299.0 302.2 302.1 303.3 304.8 304.4 299.0 291.8 295.4 301.8 307.1 19 Nontransaction 1,188.5 1,257.9 1,269.1 1,280.2 1,288.7 1,305.2 1,311.1 1,346.6 1,338.4 1,343.7 1,340.2 1,354.0 20 Large time 220.9 240.0 243.1 247.6 250.5 252.9 256.6 262.4 261.1 262.1 262.8 263.6 21 Other 967.6 1,017.9 1,026.0 1,032.6 1,038.2 1,052.3 1,054.5 1,084.2 1,077.3 1,081.7 1,077.5 1,090.4 22 Borrowings 277.1 306.2 324.7 326.6 334.6 338.0 345.3 339.4 343.5 339.8 341.6 335.5 23 From banks in the U.S 142.5 145.6 153.9 156.0 160.2 157.4 161.6 157.7 158.6 156.6 157.9 158.0 24 From others 134.6 160.6 170.8 170.6 174.3 180.7 183.7 181.7 184.9 183.2 183.7 177.5 25 Net due to related foreign offices .... 4.1 4.5 5.1 5.3 5.4 5.3 6.0 9.1 5.0 5.3 5.1 17.6 26 Other liabilities 52.8 56.1 55.8 57.6 55.6 54.5 57.4 55.8 57.4 58.3 59.4 49.6 27 Total liabilities 1,824.9 1,923.7 1,956.8 1,971.8 1,987.6 2,007.9 2,024.1 2,049.9 2,036.1 2,042.5 2,048.2 2,063.8 28 Residual (assets less liabilities)7 142.6 150.0 142.3 146.7 144.3 143.0 145.8 141.5 138.1 141.0 145.6 143.1 Not seasonally adjusted Assets 29 Bank credit 1,761.0 1,846.5 1,866.1 1,879.2 1,900.0 1,919.3 1,938.9 1,960.4 1,945.2 1,951.8 1,960.2 1,980.1 30 Securities in bank credit 502.8 509.0 513.9 516.5 519.3 521.8 522.7 521.8 519.9 522.1 521.8 523.0 31 U.S. government securities 371.5 368.1 374.0 378.2 379.9 380.2 379.8 378.4 377.4 378.1 377.8 379.9 32 Other securities 131.3 140.9 139.9 138.3 139.4 141.6 142.9 143.5 142.5 144.0 144.0 143.1 33 Loans and leases in bank credit2 1,258.2 1,337.5 1,352.2 1,362.7 1,380.7 1,397.5 1,416.2 1,438.6 1,425.3 1,429.7 1,438.4 1,457.1 34 Commercial and industrial 239.8 256.1 260.3 263.6 269.1 273.6 277.4 280.6 278.2 278.3 280.1 284.2 35 Real estate 667.8 715.5 724.3 732.5 743.1 751.9 763.6 774.1 769.1 771.5 773.4 781.1 36 Revolving home equity 35.2 37.6 38.0 38.5 39.2 40.0 40.9 41.2 41.2 41.4 40.8 41.2 37 Other 632.6 677.9 686.3 694.0 703.9 711.8 722.6 732.9 727.9 730.1 732.6 739.9 38 Consumer 261.5 271.8 275.4 274.7 274.8 276.7 280.0 285.8 280.6 282.3 287.3 292.7 39 Security' 6.2 7.0 6.6 6.8 6.9 7.1 6.6 6.9 6.9 7.0 6.8 6.8 40 Other loans and leases 82.9 87.1 85.6 85.1 86.8 88.2 88.6 91.2 90.5 90.6 90.6 92.2 41 Interbank loans 60.7 68.7 63.5 66.8 69.3 74.2 65.7 68.4 70.4 69.9 66.4 64.8 42 Cash assets4 79.9 91.6 85.1 81.5 79.0 81.8 84.3 81.7 82.1 81.5 80.8 79.9 43 Other assets5 90.3 99.6 101.7 102.5 102.9 105.6 108.0 107.7 108.1 108.3 104.8 107.4 44 Total assets6 1,968.5 2,082.2 2,0923 2,105.7 2,126.7 2,156.1 2,171.7 2,192.6 2,180.5 2,186.2 2,186.7 2,206.0 Liabilities 45 Deposits 1,488.7 1,565.7 1,566.3 1,573.8 1,590.1 1,617.2 1,614.7 1,643.0 1,636.1 1,640.7 1,630.4 1,651.4 46 Transaction 302.7 309.9 303.8 298.7 301.1 306.7 301.9 299.6 294.7 298.2 296.4 305.9 47 Nontransaction 1,186.0 1,255.9 1,262.5 1,275.1 1,289.0 1,310.5 1,312.8 1,343.4 1,341.4 1,342.5 1,334.0 1,345.5 48 Large time 220.9 240.0 243.1 247.6 250.5 252.9 256.6 262.4 261.1 262.1 262.8 263.6 49 Other 965.1 1,015.9 1,019.4 1,027.5 1,038.4 1,057.6 1,056.3 1,081.0 1,080.3 1,080.4 1,071.2 1,081.9 50 Borrowings 278.2 308.7 323.1 322.4 328.5 334.4 346.7 341.2 338.4 336.6 347.2 345.6 51 From banks in the U.S 143.4 147.1 153.3 153.4 156.7 155.0 161.0 159.4 156.8 155.7 160.8 164.4 52 From others 134.8 161.6 169.8 169.0 171.8 179.4 185.7 181.8 181.7 180.9 186.4 181.2 53 Net due to related foreign offices .... 4.1 4.5 5.1 5.3 5.4 5.3 6.0 9.1 5.0 5.3 5.1 17.6 54 Other liabilities 52.6 56.2 55.5 58.0 56.0 55.2 57.4 55.5 57.5 58.2 59.0 49.3 55 Total liabilities 1,823.6 1,935.2 1,950.0 1,959.5 1,979.9 2,012.1 2,024.8 2,048.9 2,037.0 2,040.8 2,041.7 2,063.9 56 Residual (assets less liabilities)7 144.9 147.0 142.2 146.2 146.8 144.0 146.9 143.7 143.5 145.5 145.0 142.1 MEMO 57 Mortgage-backed securities' 195.7 198.1 202.0 204.7 206.3 207.4 207.0 205.4 205.5 205.9 204.9 205.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • September 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 1999 2000 2000 Juner Dec. Jan.r Feb.r Mar.r Apr.r Mayr June June 7 June 14 June 21 June 28 Seasonally adjusted Assets 1 Bank credit 538.7 548.3 548.3 540.9 544.2 568.2 581.6 573.5 571.8 574.6 576.7 571.7 2 Securities in bank credit 199.2 202.4r 201.1 191.9 194.8 201.2 207.3 201.3 201.8 203.4 202.7 198.3 3 U.S. government securities 87.4 80.7 81.0 75.8 77.8 79.2 79.3 78.5 77.9 78.1 78.8 78.8 4 Other securities 111.8 121.6 120.1 116.1 117.0 121.9 128.0 122.8 123.9 125.2 123.9 119.5 5 Loans and leases in bank credit2 . .. 339.6 346.0r 347.2 349.0 349.4 367.0 374.4 372.2 370.0 371.3 374.0 373.4 6 Commercial and industrial 199.1 193.4 195.0 196.7 198.2 201.7 207.5 207.7 208.3 208.4 209.0 205.7 7 Real estate 19.0 17.0 17.4 17.8 18.1 18.5 18.7 19.0 18.9 18.8 19.2 19.3 8 Security3 51.8 67.1 66.8 66.7 66.4 77.7 80.7 80.8 78.1 78.8 80.6 84.8 9 Other loans and leases 69.6 68.5 68.0 67.8 66.7 69.1 67.4 64.7 64.7 65.2 65.1 63.7 10 Interbank loans 24.8 29.5 28.9 32.6 28.4 29.3 31.7 28.4 28.0 24.6 29.7 31.5 11 Cash assets4 36.3 53.4r 52.4 51.4 48.8 48.9 45.3 46.0 44.7 46.8 46.3 46.0 12 Other assets5 33.7 36.6 38.6 38.2 39.1 39.8 40.8 43.2 41.0 42.4 44.9 44.0 13 Total assets6 6333 667.6 667.9 662.8 660.2 685.8 699.1 690.8 685.2 688.1 6973 692.9 Liabilities 14 Deposits 308.3 374. lr 379.7 379.4 381.9 392.4 387.2 387.4 380.9 389.3 390.3 388.6 15 Transaction 10.8 10.5 10.8 11.1 11.3 11.1 11.4 11.7 11.9 12.3 11.7 10.5 16 Nontransaction 297.5 363.6 368.9 368.4 370.6 381.3 375.8 375.7 368.9 377.0 378.6 378.1 17 Borrowings 183.3 181.5 179.5 175.6 177.5 200.3 205.3 205.8 202.3 205.5 206.0 207.2 18 From banks in the U.S 26.3 24.4 19.7 18.3 19.5 20.6 17.7 18.7 14.9 19.8 19.4 18.4 19 From others 157.1 157.1 159.8 157.4 158.1 179.7 187.7 187.1 187.3 185.7 186.5 188.9 20 Net due to related foreign offices 71.2 39.1 35.6 26.8 19.9 15.0 20.1 18.5 25.1 12.6 16.8 19.5 21 Other liabilities 63.7 69.4 70.0 71.5 69.2 70.7 77.2 70.0 70.9 71.2 72.2 66.6 22 Total liabilities 6265 664.1r 664.7 653.4 648.6 678.4 689.9 681.7 679.1 678.6 685.2 681.8 23 Residual (assets less liabilities)7 6.7 3.5r 3.2 9.4 11.6 7.4 9.2 9.1 6.1 9.5 12.0 11.1 Not seasonally adjusted Assets 24 Bank credit 530.9 558.4r 556.1 545.1 542.8 561.9 573.2 564.0 564.2 564.0 564.7 563.5 25 Securities in bank credit 194.8 206.1 205.0 193.2 191.9 197.6 204.3 195.5 198.5 196.6 195.3 192.6 26 U.S. government securities 87.5 82.1 81.6 75.9 77.7 80.0 80.3 78.5 78.7 78.0 78.2 78.9 27 Trading account 21.1 6.7 7.9 7.4 9.5 12.0 12.5 12.0 12.1 11.8 11.3 12.6 28 Investment account 66.4 75.4 73.7 68.5 68.2 67.9 67.7 66.5 66.6 66.3 66.9 66.2 29 Other securities 107.4 124.0 123.4 117.3 114.2 117.7 124.0 116.9 119.8 118.5 117.1 113.8 30 Trading account 63.7 80.8r 78.3 74.4 71.9 74.9 81.4 75.1 78.2 76.8 74.7 72.0 31 Investment account 43.7 43.2 45.1 42.9 42.3 42.8 42.6 41.9 41.7 41.7 42.3 41.8 32 Loans and leases in bank credit2 . .. 336.1 352.3r 351.0 352.0 350.9 364.3 369.0 368.5 365.7 367.5 369.4 370.9 33 Commercial and industrial 196.2 197.0 196.5 199.2 199.8 199.9 203.2 204.4 204.6 204.6 205.8 203.0 34 Real estate 18.9 16.9 17.6 18.0 18.3 18.3 18.7 18.9 18.8 18.7 19.1 19.0 35 Security3 52.0 67.5 67.2 66.5 66.6 77.8 80.6 81.1 77.9 79.4 80.5 85.6 36 Other loans and leases 69.0 70.8 69.7 68.2 66.2 68.3 66.5 64.2 64.4 64.8 63.9 63.2 37 Interbank loans 24.8 29.5 28.9 32.6 28.4 29.3 31.7 28.4 28.0 24.6 29.7 31.5 38 Cash assets4 35.8 57.7r 54.6 50.8 47.8 46.7 44.1 45.2 44.1 46.0 45.5 45.3 39 Other assets5 32.1 38.7 40.1 40.1 40.4 39.0 40.3 41.0 39.9 40.7 42.0 40.9 40 Total assets6 623.4 684.0 6793 6683 659.0 676.6 688.9 6783 675.9 675.1 681.6 681.0 Liabilities 41 Deposits 305.3 382.6 386.5 386.5 388.0 393.5 388.1 383.0 379.5 385.7 385.2 382.9 42 Transaction 10.5 11.1 10.9 11.0 11.0 10.7 11.0 11.3 11.1 11.8 11.3 10.6 43 Nontransaction 294.8 371.4r 375.6 375.5 377.0 382.8 377.1 371.7 368.4 374.0 374.0 372.3 44 Borrowings 183.3 181.5 179.5 175.6 177.5 200.3 205.3 205.8 202.3 205.5 206.0 207.2 45 From banks in the U.S 26.3 24.4 19.7 18.3 19.5 20.6 17.7 18.7 14.9 19.8 19.4 18.4 46 From others 157.1 157.1 159.8 157.4 158.1 179.7 187.7 187.1 187.3 185.7 186.5 188.9 47 Net due to related foreign offices .... 69.6 44.3 37.9 29.1 20.5 10.2 15.8 17.0 20.6 10.1 16.2 21.5 48 Other liabilities 62.5 71.5 71.7 73.5 69.5 68.9 75.8 68.6 69.7 69.9 70.4 65.2 49 Total liabilities 620.7 679.9r 675.6 664.7 655.6 673.0 685.0 674.4 672.1 6713 677.8 676.9 50 Residual (assets less liabilities)7 2.7 4.2r 3.8 3.6 3.5 3.7 3.9 3.9 3.8 3.8 3.7 4.1 MEMO 51 Revaluation gains on off-balance-sheet items8 37.8 39.6 39.8 40.2 39.3 39.4 44.8 38.7 40.7 40.0 39.4 35.8 52 Revaluation losses on off-balancesheet items8 36.7 38.6 39.0 40.0 38.2 38.4 44.3 37.6 39.3 39.0 38.4 34.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 • September 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 Dec. Jan. Feb. Mar. Apr. May 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,403,023 1,407,789 1,428,605 1,449,143 1,465,697 1,497,712 Financial companies' 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 786,643 821,870 835,140 849,198 860,843 884,299 3 Directly placed paper, total3 210,829 229,662 252,536 322,030 337,240 337,240 299,599 298,603 302,885 294,328 302,305 4 Nonfinancial companies4 188,260 184,563 200,857 227,132 279,140 279,140 286,319 294,863 297,060 310,526 311,109 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal, and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. B. Bankers Dollar Acceptances Millions of dollars, not seasonally adjusted, year ending September2 Item 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(12U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Rate Period rate Period rate Period rate 1997 Jan 1 8 25 1997 8.44 1998—Jan 8.50 1999—Jan 7.75 Mar. 26 88..5500 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 8.50 7.75 Nov. 18 7.75 Feb 8.25 June 8.50 June 7.75 Mar 8.30 July 8.50 July 8.00 1999—July 1 8.00 Apr 8.50 Aug 8.50 Aug 8.06 Aug. 25 8.25 May 8.50 Sept 8.49 Sept 8.25 Nov. 17 8.50 June 8.50 Oct 8.12 Oct 8.25 July 8.50 Nov 7.89 Nov 8.37 2000—Feb 3 8.75 8.50 Dec 77..7755 Dec 88..5500 Mar. 22 9.00 Sept 8.50 MMaayy 1177 9.50 Oct 8.50 2000—Jan 8.50 Nov 8.50 Feb 8.73 Dec 8.50 Mar 8.83 Apr. 9.00 May 9.24 June 9.50 July 9.50 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover, by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 2000 2000, week ending IItteemm 11999977 11999988 11999999 Mar. Apr. May June June 2 June 9 June 16 June 23 June 30 MONEY MARKET INSTRUMENTS 1 Federal funds1-2'3 5.46 5.35 4.97 5.85 6.02 6.27 6.53 6.53 6.49 6.50 6.51 6.53 2 Discount window borrowing2'4 5.00 4.92 4.62 5.34 5.50 5.71 6.00 6.00 6.00 6.00 6.00 6.00 Commercial paper^'S'6 Nonfinancial 3 1-month 5.57 5.40 5.09 5.93 6.02 6.40 6.53 6.50 6.51 6.52 6.54 6.58 4 2-month 5.57 5.38 5.14 5.96 6.06 6.47 6.55 6.58 6.53 6.53 6.54 6.56 5 3-month 5.56 5.34 5.18 6.00 6.11 6.54 6.57 6.62 6.57 6.57 6.57 6.58 Financial 6 1 -month 5.59 5.42 5.11 5.94 6.03 6.41 6.53 6.50 6.51 6.52 6.55 6.56 7 2-month 5.59 5.40 5.16 5.98 6.07 6.50 6.56 6.60 6.55 6.55 6.55 6.58 8 3-month 5.60 5.37 5.22 6.03 6.15 6.57 6.59 6.65 6.59 6.59 6.57 6.59 Commercial paper (historicalJ 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 (historicalJ3'5'8 12 1-month 5.44 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 3-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 6-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Bankers acceptances3'5'9 15 3-month 5.54 5.39 5.24 6.06 6.19 6.60 6.63 6.72 6.63 6.62 6.60 6.62 16 6-month 5.57 5.30 5.30 6.22 6.32 6.76 6.74 6.88 6.77 6.74 6.69 6.71 Certificates of deposit, secondary market3,10 17 1-month 5.54 5.49 5.19 6.01 6.10 6.49 6.60 6.60 6.58 6.59 6.61 6.63 18 3-month 5.62 5.47 5.33 6.14 6.28 6.71 6.73 6.80 6.72 6.72 6.71 6.73 19 6-month 5.73 5.44 5.46 6.36 6.50 6.94 6.91 7.02 6.92 6.89 6.86 6.92 20 Eurodollar deposits, 3-month3 " 5.61 5.45 5.31 6.13 6.25 6.70 6.73 6.80 6.74 6.73 6.70 6.71 U.S. Treasury bills Secondary market3'5 21 3-month 5.06 4.78 4.64 5.69 5.66 5.79 5.69 5.59 5.76 5.68 5.66 5.67 22 6-month 5.18 4.83 4.75 5.85 5.81 6.10 5.97 6.04 6.01 5.96 5.93 5.95 23 1-year 5.32 4.80 4.81 5.86 5.80 5.94 5.83 5.89 5.87 5.80 5.81 5.79 Auction high3'5,12 74 3-month 5.07 4.81 4.66 5.72 5.67 5.92 5.74 5.73 5.80 5.78 5.69 5.68 75 6-month 5.18 4.85 4.76 5.85 5.82 6.12 6.02 6.15 6.04 6.01 5.92 5.96 26 1-year 5.36 4.85 4.78 5.84 n.a. n.a. 6.00 6.00 n.a. n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities'3 7.7 1-year 5.63 5.05 5.08 6.22 6.15 6.33 6.17 6.30 6.23 6.14 6.15 6.13 78 2-year 5.99 5.13 5.43 6.53 6.40 6.81 6.48 6.64 6.53 6.45 6.48 6.44 7.9 3-year 6.10 5.14 5.49 6.53 6.36 6.77 6.43 6.60 6.47 6.40 6.42 6.37 30 5-year 6.22 5.15 5.55 6.50 6.26 6.69 6.30 6.49 6.35 6.27 6.29 6.25 31 7-year 6.33 5.28 5.79 6.51 6.27 6.69 6.33 6.49 6.36 6.29 6.32 6.30 32 10-year 6.35 5.26 5.65 6.26 5.99 6.44 6.10 6.26 6.13 6.06 6.09 6.08 33 20-year 6.69 5.72 6.20 6.38 6.18 6.55 6.28 6.39 6.27 6.25 6.30 6.30 34 30-year 6.61 5.58 5.87 6.05 5.85 6.15 5.93 6.00 5.90 5.91 5.95 5.94 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 6.33 6.14 6.49 6.23 6.34 6.22 6.21 6.26 6.24 STATE AND LOCAL NOTES AND BONDS Moody's series'4 36 Aaa 5.32 4.93 5.28 5.68 5.60 5.87 5.69 5.80 5.67 5.66 5.65 5.65 37 Baa 5.50 5.14 5.70 6.19 6.18 6.53 6.24 6.40 6.25 6.22 6.18 6.17 38 Bond Buyer series15 5.52 5.09 5.43 5.83 5.75 6.00 5.80 5.92 5.83 5.77 5.73 5.77 CORPORATE BONDS 39 Seasoned issues, all industries15 7.54 6.87 7.45 7.99 7.98 8.41 8.05 8.26 8.03 7.99 8.06 8.08 Rating group 4(1 Aaa 7.27 6.53 7.05 7.68 7.64 7.99 7.67 7.83 7.60 7.59 7.73 7.73 41 Aa 7.48 6.80 7.36 7.83 7.82 8.24 7.87 8.09 7.85 7.82 7.87 7.88 47. A 7.54 6.93 7.53 8.07 8.07 8.49 8.18 8.35 8.14 8.14 8.20 8.22 43 Baa 7.87 7.22 7.88 8.37 8.40 8.90 8.48 8.76 8.51 8.42 8.45 8.48 MEMO Dividend-price ratio17 44 Common stocks 1.77 1.49 1.25 1.18 1.14 1.17 1.12 1.17 1.12 1.12 1.11 1.13 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. Al 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 • September 2000 1.36 STOCK MARKET Selected Statistics 1999 2000 IInnddiiccaattoorr 11999977 11999988 11999999 Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 599.04 634.22 638.17 634.07 606.03 622.28 646.82 640.07 649.61 2 Industrial 574.97 684.35 775.29 753.94 791.41 808.28 814.73 767.08 790.35 822.76 814.75 819.54 3 Transportation 415.08 468.61 491.62 450.13 474.78 461.04 456.35 398.69 384.39 406.14 411.50 395.09 4 Utility 143.87 190.52 284.82 285.16 502.58 511.78 485.82 482.30 509.59 502.78 487.17 501.93 5 Finance 424.84 516.65 530.97 490.92 539.20 510.99 495.23 471.65 491.29 524.05 523.22 544.51 6 Standard & Poor's Corporation (1941-43 = 10)' 873.43 1,085.50 1,327.33 1,300.01 1,390.99 1,428.68 1,425.59 1,388.88 1,442.21 1,461.36 1,418.48 1,461.96 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 786.96 819.60 838.24 878.73 910.00 1,014.03 918.77 917.76 934.90 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 882,422 866,281 884,141 1,058,021 1,032,791 1,124,097 1,047,960 893,896 971,137 9 American Stock Exchange 24,390 28,870 32,629 35,762 33,330 41,076 47,530 51,134 59,449 63,054 44,146 42,490 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 126,090 140,980 228,530 182,272 206,280 228,530 243,490 265,210 278,530 251,700 240,660 247,200 Free credit balances at brokers4 11 Margin accounts5 31,410 40,250 55,130 51,040 49,480 55,130 57,800 56,470 65,020 65,930 66,170 64,970 12 Cash accounts 52,160 62,450 79,070 61,085 68,200 79,070 75,760 79,700 85,530 76,190 73,500 74,140 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 2000 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June U.S. budget1 1 Receipts, total 1,579,292 1,721,798 1,827,454 189,478 108,675 135,582 295,148 146,002 214,875 2 On-budget 1,187,302 1,305,999 1,382,986 143,838 71,090 94,586 244,662 107,469 168,319 3 Off-budget 391,990 415,799 444,468 45,640 37,585 40,996 50,486 38,533 46,556 4 Outlays, total 1,601,235 1,652,552 1,702,940 127,326 150,409 170,962 135,651 149,612 158,598 5 On-budget 1,290,609 1,335,948 1,382,262 97,451 118,340 137,864 105,742 114,829 151,919 Off-budget 310,626 316,604 320,778 29,875 32,069 33,099 29,909 34,783 6,679 1 Surplus or deficit (—), total -21,943 69,246 124,414 62,152 -41,734 -35,380 159,497 -3,611 56,277 8 On-budget -103,307 -29,949 724 46,387 -47,250 -43,278 138,920 -7,360 16,400 9 Off-budget 81,364 99,195 123,690 15,765 5,516 7,897 20,577 3,750 39,877 Source of financing (total) 10 Borrowing from the public 38,171 -51,211 -88,304 -83,985 17,131 39,746 -112,667 -53,755 -23,131 11 Operating cash (decrease, or increase (-)) 604 4,743 -17,580 20,592 40,773 -22,808 -47,787 69,470 -34,350 12 Other 2 -16,832 -22,778 -18,530 1,241 -16,170 18,442 957 -12,104 1,204 MEMO 13 Treasury operating balance (level, end of period) 43,621 38,878 56,458 62,735 21,962 44,770 92,557 23,087 57,437 14 Federal Reserve Banks 7,692 4,952 6,641 6,119 5,004 4,357 15,868 5,445 6,208 15 Tax and loan accounts 35,930 33,926 49,817 56,615 16,958 40,413 76,689 17,642 51,229 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 • September 2000 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1998 1999 2000 2000 11999988 11999999 H2 HI H2 HI Apr. May June RECEIPTS 1 All sources 1,721,798 1,827,454 825,057 966,045 892,266 1,089,760 295,148 146,002 214,875 2 Individual income taxes, net 828,586 879,480 392,332 481,907 425,451 550,208 184,237 63,687 100,458 3 Withheld 646,483 693,940 339,144 351,068 372,012 388,526 56,113 65,946 59,516 4 Nonwithheld 281,527 308,185 65,204 240,278 68,302 281,103 155,452 23,349 44,161 Refunds 99,476 122,706 12,032 109,467 14,841 119,477 27,343 25,619 33,,222288 Corporation income taxes 6 Gross receipts 213,008 216,324 104,163 106,861 110,111 119,166 30,256 7,427 41,899 / Refunds 24,593 31,645 14,250 17,092 13,996 13,781 2,562 1,654 1,366 Social insurance taxes and contributions, net . .. 571,831 611,833 268,466 324,831 292,551 353,514 68,022 60,394 60,771 y Employment taxes and contributions2 540,014 580,880 256,142 306.235 280,059 333,584 65,095 49,212 60,034 10 Unemployment insurance 27,484 26,480 10,121 16,378 10,173 17,562 2,557 10,778 311 n Other net receipts3 4,333 4,473 2,202 2,216 2,319 2,368 370 403 426 12 Excise taxes 57,673 70,414 33,366 31,015 34,262 33,532 5,934 5,391 6,093 13 Customs deposits 18,297 18,336 9,838 8,440 10,287 9,218 1,503 1,598 1,767 14 Estate and gift taxes 24,076 27,782 12,359 14,915 14,001 15,073 4,243 2,480 2,087 lb Miscellaneous receipts4 32,658 34,929 18,735 15,140 19,569 22,831 3,515 6,678 3,165 OUTLAYS 16 A11 types 1,652,552 1,702,940 877,414 817,227 882,795 892,558 135,651 149,612 158,598 17 National defense 268,456 274,873 140,196 134,414 149,820 143,476 21,305 23,640 29,637 18 International affairs 13,109 15,243 8,297 6,879 8,530 7,250 2,190 764 667 19 General science, space, and technology 18,219 18,125 10,142 9,319 10,089 9,601 1,530 1,686 1,862 20 Energy 1,270 912 699 797 -90 -893 135 -167 20 21 Natural resources and environment 22,396 23,970 12,671 10,351 12,100 10,814 1,711 1,839 2,123 22 Agriculture 12,206 23,011 16,757 9,803 20,887 11,164 1,196 615 1,656 23 Commerce and housing credit 1,014 2,649 4,046 -1,629 7,353 -2,497 -1 1,063 -1,237 24 Transportation 40,332 42,531 20,836 17,082 22,972 21,054 3,178 3,892 4,224 25 Community and regional development 9,720 11,870 6,972 5,368 77,,113355 5,050 11,,556611 11,,004477 974 26 Education, training, employment, and social services 54,919 56,402 27,762 29,003 27,532 31,234 4,496 5,143 4,766 27 Health 131,440 141,079 67,838 69,320 74,490 75,871 12,421 12,532 13,443 28 Social security and Medicare 572,047 580,488 316,809 261,146 295,030 306,966 46,309 52,741 58,378 29 Income security 233,202 237,707 109,481 126,552 113,504 133,915 17,801 19,342 18,886 30 Veterans benefits and services 41,781 43,212 22,750 20,105 23,412 23,174 2,189 4,028 5,268 31 Administration of justice 22,832 25,924 12,041 13,149 13,459 13,981 2,066 2,616 2,281 32 General government 13,444 15,771 9,136 6,641 7,006 6,198 1,010 1,201 1,517 33 Net interest5 243,359 229,735 116,954 116,655 112,420 115,545 19,403 21,325 17,503 34 Undistributed offsetting receipts6 -47,194 -40,445 -25,793 -17,724 -22,850 -19,346 -2,849 -3,697 -3,371 1. Functional details do not sum to total outlays for calendar year data because revisions to 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. monthly totals have not been distributed among functions. Fiscal year total for receipts and 5. Includes interest received by trust funds. outlays do not correspond to calendar year data because revisions from the Budget have not 6. Rents and royalties for the outer continental shelf, U.S. government contributions for been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S. 3. Federal employee retirement contributions and civil service retirement and Government, Fiscal Year 2001; monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1998 1999 2000 IItteemm June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 1 Federal debt outstanding 5,578 5,556 5,643 5,681 5,668 5,685 5,805 5,802 n.a. 1 Public debt securities 5,548 5,526 5,614 5,652 5,639 5,656 5,776 5,773 5,686 3 Held by public 3,790 3,761 3,787 3,795 3,685 3,667 3,716 3,688 n.a. 4 Held by agencies 1,758 1,766 1,827 1,857 1,954 1,989 2,061 2,085 n.a. 5 Agency securities 30 29 29 29 29 29 29 28 n.a. 6 Held by public 26 26 29 28 28 28 28 28 n.a. 7 Held by agencies 4 4 1 1 1 1 1 0 n.a. 8 Debt subject to statutory limit 5,460 5,440 5,530 5,566 5,552 5,568 5,687 5,687 5,601 9 Public debt securities 5,460 5,439 5,530 5,566 5,552 5,568 5,687 5,686 5,601 10 Other debt1 0 0 0 0 0 0 0 0 0 MEMO 11 Statutory debt limit 5,950 5,950 5,950 5,950 5,950 5,950 5,950 5,950 5,950 1. Consists of guaranteed debt of U.S. Treasury and other federal agencies, specified SOURCE. U.S. Department of the Treasury, Monthly Statement of the Public Debt of the participation certificates, notes to international lending organizations, and District of Colum- United States and Treasury Bulletin. bia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 1999 2000 TTyyppee aanndd hhoollddeerr 11999966 11999977 11999988 11999999 Q3 Q4 Q1 Q2 1 Total gross public debt 5,323.2 5,502.4 5,614.2 5,776.1 5,656.3 5,776.1 5,773.4 5,685.9 By type 2 Interest-bearing 5,317.2 5,494.9 5,605.4 5,766.1 5,647.2 5,766.1 5,763.8 5,675.9 3 Marketable 3,459.7 3,456.8 3,355.5 3,281.0 3,233.0 3,281.0 3,261.2 3,070.7 4 Bills 777.4 715.4 691.0 737.1 653.2 737.1 753.3 629.9 5 Notes 2,112.3 2,106.1 1,960.7 1,784.5 1,828.8 1,784.5 1,732.6 1,679.1 6 Bonds 555.0 587.3 621.2 643.7 643.7 643.7 653.0 637.7 7 Inflation-indexed notes and bonds1 n.a. 33.0 50.6 68.2 67.6 68.2 74.7 75.9 8 Nonmarketable2 1,857.5 2,038.1 2,249.9 2,485.1 2,414.2 2,485.1 2,502.6 2,605.2 9 State and local government series 101.3 124.1 165.3 165.7 168.1 165.7 161.9 160.4 10 Foreign issues3 37.4 36.2 34.3 31.3 31.0 31.3 28.8 27.7 11 Government 47.4 36.2 34.3 31.3 31.0 31.3 28.8 27.7 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 182.4 181.2 180.3 179.4 180.0 179.4 178.6 177.7 14 Government account series4 1,505.9 1,666.7 1,840.0 2,078.7 2,005.2 2,078.7 2,103.3 2,209.4 15 Non-interest-bearing 6.0 7.5 8.8 10.0 9.0 10.0 9.6 10.1 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 1,989.1 2,060.6 2,085.4 17 Federal Reserve Banks 410.9 451.9 471.7 477.7 496.5 477.7 501.7 18 Private investors 3,431.2 3,414.6 3,334.0 3,233.9 3,175.4 3,233.9 3,182.8 19 Depository institutions 296.6 300.3 237.3 245.1 239.3 245.1 n.a. 20 Mutual funds 315.8 321.5 343.2 350.9 336.9 350.9 n.a. 21 Insurance companies 214.1 176.6 144.5 136.2 138.6 136.2 n.a. n a. 22 State and local treasuries6 257.0 239.3 269.3 266.8 271.6 266.8 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.5 186.2 186.5 185.3 24 Pension funds 392.7 421.0 434.7 445.1 444.8 445.1 n.a. 25 Private 189.2 204.1 218.1 232.8 228.3 232.8 n.a. 26 State and Local 203.5 216.9 216.6 212.3 216.5 212.3 n.a. 21 Foreign and international7 1,102.1 1,241.6 1,278.7 1,268.8 1,281.3 1.268.8 1,274.0 28 Other miscellaneous investors6,8 665.9 527.9 439.6 334.5 276.7 334.5 n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997. 7. Includes nonmarketable foreign series treasury securities and treasury deposit funds. 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Excludes treasury securities held under repurchase agreements in custody accounts at the tion, depository bonds, retirement plan bonds, and individual retirement bonds. Federal Reserve Bank of New York. 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- 8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank rency held by foreigners. personal trusts and estates, corporate and noncorporate businesses, and other investors. 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual Public Debt of the United States; data by holder, Treasury Bulletin. holdings; data for other groups are Treasury estimates. 6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic Nonfinancial Statistics • September 2000 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2000 2000, week ending item Mar. Apr. May May 3 May 10 May 17 May 24 May 31 June 7 June 14 June 21 June 28 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 33,838 27,907 23,171 24,872 19,335 22,827 21,223 29,554 28,693 17,118 18,428 17,957 Coupon securities, by maturity 2 Five years or less 102,265 114,115 116,145 127,230 113,583 114,737 125,687 100,865 122,618 92,777 96,219 100,238 3 More than five years 65,123 69,668 58,444 58,932 69,457 60,045 50,707 51,980 79,094 58,700 62,753 61,828 4 Inflation-indexed 1,022 1,201 837 1,623 915 600 656 670 1,249 1,033 802 778 Federal agency 5 Discount notes 56,650 58,111 66,305 67,597 63,775 79,742 59,625 60,053 55,481 44,941 48,777 45,529 Coupon securities, by maturity 6 One year or less 1,310 1,220 1,046 1,166 1,039 1,531 933 502 811 753 805 11,,117766 7 More than one year, but less than or equal to five years 7,906 9,675 8,626 10,802 7,107 7,638 10,215 8,139 8,034 6,730 8,390 6,033 8 More than five years 8,816 8,295 6,923 7,971 6,275 8,649 6,827 4,907 11,899 7,464 9,671 6,485 9 Mortgage-backed 59,390 72,104 61,536 70,554 89,251 68,603 41,711 36,075 79,762 108,222 49,885 35,406 By type of counterparty With interdealer broker 10 U.S. Treasury 101,083 108,736 98,961 102,449 104,819 100,706 97,750 88,357 115,729 83,721 89,993 86,829 11 Federal agency 8,127 9,029 8,007 7,766 8,057 8,949 8,495 6,338 9,902 8,435 8,801 6,727 12 Mortgage-backed 22,089 26,543 24,010 25,873 31,154 27,020 19,995 14,940 27,907 3388,,119944 2211,,223388 1155,,774466 With other 13 U.S. Treasury 101,164 104,155 99,635 110,209 98,472 97,503 100,523 94,713 115,926 85,906 88,209 93,972 14 Federal agency 66,554 68,271 74,892 79,770 70,139 88,611 69,105 67,262 66,322 51,453 58,843 52,496 15 Mortgage-backed 37,301 45,561 37,525 44,681 58,096 41,583 21,716 21,135 51,855 70,029 28,647 19,660 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills 0 0 0 0 0 n.a. 0 n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 17 Five years or less 4,022 2,667 4,870 3,885 3,650 3,836 6,878 5,916 6,220 3,160 3,267 1,793 18 More than five years 15,073 15,366 14,727 13,956 17,140 13,349 12,706 16,539 16,391 15,261 11,783 11,130 19 Inflation-indexed 0 0 0 0 0 0 0 0 0 00 00 00 Federal agency 20 Discount notes 0 0 0 0 0 0 0 0 0 00 00 00 Coupon securities, by maturity 21 One year or less 0 0 0 0 0 0 0 0 0 00 00 00 22 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 0 23 More than five years 19 56 98 55 43 67 160 158 165 335 158 355 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 2266 Five years or less 1,490 1,608 1,967 2,765 1,872 2,043 2,264 1,021 2,555 628 1,027 1,538 27 More than five years 3,565 4,256 4,460 4,951 5,405 3,977 3,808 4,329 4,312 2,481 3,362 3,027 28 Inflation-indexed 0 0 0 0 0 0 0 0 0 00 00 00 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 00 00 00 31 More than one year, but less than or equal to five years 0 0 0 0 n.a. n.a. n.a. n.a. n.a. 0 n.a. n.a. 32 More than five years 0 0 0 n.a. n.a. 0 n.a. n.a. 30 n.a. n.a. 13 33 Mortgage-backed 856 686 1,078 927 1,058 1,205 1,188 921 2,112 1,722 711 844 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2000 2000, week ending IItteemm Mar. Apr. May May 3 May 10 May 17 May 24 May 31 June 7 June 14 June 21 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 8,065 6,568 -5,764 -6,953 -4,737 -8,719 -5,988 -3,103 5,307 3,773 3,051 Coupon securities, by maturity 2 Five years or less -28,507 -28,803 -42,941 -39,815 -40,347 -51,585 -42,019 -39,154 -40,164 -39,185 -39,720 3 More than five years -20,433 -18,591 -23,820 -21,250 -23,905 -24,238 -21,221 -27,018 -21,941 -21,485 -20,632 4 Inflation-indexed 2,612 2,192 1,849 1,908 1,821 2,141 1,837 1,573 1,328 1,646 1,817 Federal agency 5 Discount notes 32,628 28,299 27,258 30,118 24,144 27,046 26,523 30,094 31,351 31,654 35,903 Coupon securities, by maturity 6 One year or less 12,553 15,284 12,658 14,759 14,726 14,390 10,273 10,343 10,654 10,552 10,222 7 More than one year, but less than or equal to five years 3,418 894 2,883 2,555 106 1,630 7,487 2,449 2,018 1,716 2,173 8 More than five years 2,753 3,316 2,084 3,306 2,763 1,481 2,096 1,472 2,136 381 1,211 9 Mortgage-backed 20,966 27,631 21,502 29,580 25,367 23,584 12,753 20,840 24,844 24,885 20,938 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills 00 00 00 00 00 00 00 00 n.a. n.a. 00 Coupon securities, by maturity 11 Five years or less 13,382 13,480 17,318 16,900 18,598 19,996 16,145 14,711 1133,,662222 13,504 11,838 12 More than five years -7,040 -2,131 1,770 470 1,024 3,293 2,537 783 -770 -265 -222 13 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 Federal agency 14 Discount notes 0 0 00 0 00 0 0 0 0 00 0 Coupon securities, by maturity 15 One year or less 00 00 00 00 00 00 00 00 00 00 00 16 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 17 More than five years -11 -40 -105 -13 — 145 -123 -125 -66 -371 -1,260 -1,314 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 00 00 00 00 00 00 00 00 00 00 00 Coupon securities, by maturity 20 Five years or less -101 74 180 302 818 -395 205 39 --335500 -170 1,407 21 More than five years 5,265 6,471 2,496 4,645 3,685 4,163 549 665 -96 -297 347 22 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 Federal agency 23 Discount notes 0 0 00 00 00 00 00 00 00 00 00 Coupon securities, by maturity 24 One year or less 00 00 00 00 00 00 00 00 00 00 00 25 More than one year, but less than or equal to five years n.a. 139 309 242 273 374 n.a. n.a. 194 n.a. n.a. 26 More than five years 91 70 477 n.a. 184 182 778 762 690 688 700 27 Mortgage-backed 1,261 52 769 1,091 1,299 1,102 655 -118 -336 1,267 1,555 Financing5 Reverse repurchase agreements 78 Overnight and continuing 289,942 298,607 308,541 310,680 297,306 328,312 295,751 311,880 295,654 307,653 283,910 29 Term 818,513 792,459 791,514 844,198 884,511 718,663 768,550 771,755 817,832 844,458 856,451 Securities borrowed 30 Overnight and continuing 261,482 280,029 304,544 297,888 297,278 316,172 307,579 299,999 300,138 294,085 286,170 31 Term 103,451 112,178 108,141 114,967 114,545 101,483 103,676 109,933 108,688 110,588 117,529 Securities received as pledge 32 Overnight and continuing 2,008 1,890 1,748 n.a. 11,,668866 11,,881100 n.a. n.a. n.a. n.a. n.a. 33 Term n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Repurchase agreements 34 Overnight and continuing 715,903 732,319 731,269 733,463 771166,,448800 762,432 711,311 733,912 746,848 762,590 734,882 35 Term 695,275 682,363 671,847 730,516 766,886 592,722 655,885 646,751 695,212 727,831 761,667 Securities loaned 36 Overnight and continuing 8,550 7,750 8,409 7,830 7,676 8,546 8,773 8,887 8,203 8,274 7,186 37 Term 7,671 7,738 9,076 9,053 9,923 8,810 8,977 8,605 7,230 6,712 6,106 Securities pledged 38 58,304 61,754 61,585 60,672 59,059 63,031 60,489 64,152 62,840 59,385 61,708 39 Term 6,848 7,132 5,403 6,880 7,040 4,846 5,138 3,955 4,614 4,434 4,265 Collateralized loans 40 Total 15,816 22,002 15,835 18,054 21,471 8,955 18,053 13,912 23,370 15,842 13,551 1. Data for positions and financing are obtained from reports submitted to the Federal securities are included when the time to delivery is more than five business days. Forward Reserve Bank of New York by the U.S. government securities dealers on its published list of contracts for mortgage-backed agency securities are included when the time to delivery is primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar more than thirty business days. days of the report week are assumed to be constant. Monthly averages are based on the 4. Futures positions reflect standardized agreements arranged on an exchange. All futures number of calendar days in the month. positions are included regardless of time to delivery. 2. Securities positions are reported at market value. 5. Overnight financing refers to agreements made on one business day that mature on the 3. Net outright positions include immediate and forward positions. Net immediate posi- next business day; continuing contracts are agreements that remain in effect for more than one tions include securities purchased or sold (other than mortgage-backed agency securities) that business day but have no specific maturity and can be terminated without advance notice by have been delivered or are scheduled to be delivered in five business days or less and either party; term agreements have a fixed maturity of more than one business day. Financing "when-issued" securities that settle on the issue date of offering. Net immediate positions for data are reported in terms of actual funds paid or received, including accrued interest. mortgage-backed agency securities include securities purchased or sold that have been NOTE, "n.a." indicates that data are not published because of insufficient activity. delivered or are scheduled to be delivered in thirty business days or less. Forward positions reflect agreements made in the over-the-counter market that specify delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • September 2000 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 1999 2000 AAggeennccyy 11999966 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. 1 Federal and federally sponsored agencies 925,823 1,022,609 1,296,477 1,616,492 1,616,492 1,620,814 1,635,828 1,644,276 n.a. 2 Federal agencies 29,380 27,792 26,502 26,376 26,376 26,277 26,168 26,231 26,011 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 84 102 205 126 126 126 155 168 173 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. / Postal Service6 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 26,370 26,271 26,162 26,225 26,005 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 1,590,116 1,594,537 1,609,660 1,618,045 n.a. 11 Federal Home Loan Banks 263,404 313,919 382,131 529,005 529,005 522,692 527,835 535,284 541,673 12 Federal Home Loan Mortgage Corporation 156,980 169,200 287,396 360,711 360,711 372,586 380,660 378,006 388,261 13 Federal National Mortgage Association 331,270 369,774 460,291 547,619 547,619 544,360 547,100 557,543 561,700 14 Farm Credit Banks8 60,053 63,517 63,488 68,883 68,883 69,082 69,147 67,154 69,036 15 Student Loan Marketing Association9 44,763 37,717 35,399 41,988 41,988 43,762 42,723 38,089 n.a. 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation11 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 58,172 49,090 44,129 42,152 42,152 40,753 40,182 39,306 38,700 Lending to federal and federally sponsored agencies 2 2 0 1 E Po x s p t o a r l t- S I e m rv p i o c r e t 6 Bank3 n 1 . , a 4 . 31 n.a. 5 52 T * T T F T T T • T 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. I 1 1 1 1 1 1 24 United States Railway Association6 n.a. n.a. 1 1 1 1 1 1 T Other lending14 25 Farmers Home Administration 18,325 13,530 9,500 6,665 6,665 6,565 6,515 6,350 6,240 26 Rural Electrification Administration 16,702 14,898 14,091 14,085 14,085 13,958 14,016 13,152 13,167 27 Other 21,714 20,110 20,538 21,402 21,402 20,230 19,651 19,804 19,293 1. Consists of mortgages assumed by the Defense Department between 1957 and 1963 10. The Financing Corporation, established in August 1987 to recapitalize the Federal under family housing and homeowners assistance programs. Savings and Loan Insurance Corporation, undertook its first borrowing in October 1987. 2. Includes participation certificates reclassified as debt beginning Oct. 1, 1976. 11. The Farm Credit Financial Assistance Corporation, established in January 1988 to 3. On-budget since Sept. 30, 1976. provide assistance to the Farm Credit System, undertook its first borrowing in July 1988. 4. Consists of debentures issued in payment of Federal Housing Administration insurance 12. The Resolution Funding Corporation, established by the Financial Institutions Reform, claims. Once issued, these securities may be sold privately on the securities market. Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 1989. 5. Certificates of participation issued before fiscal year 1969 by the Government National 13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations Mortgage Association acting as trustee for the Farmers Home Administration, the Department issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the of Health, Education, and Welfare, the Department of Housing and Urban Development, the purpose of lending to other agencies, its debt is not included in the main portion of the table to Small Business Administration, and the Veterans Administration. avoid double counting. 6. Off-budget. 14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally Federal Agricultural Mortgage Corporation, therefore details do not sum to total. Some data being small. The Farmers Home Administration entry consists exclusively of agency assets, are estimated. whereas the Rural Electrification Administration entry consists of both agency assets and 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is guaranteed loans. shown on line 17. 9. Before late 1982, the association obtained financing through the Federal Financing Bank (FFB). Borrowing excludes that obtained from the FFB, which is shown on line 22. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Markets and Corporate Finance A31 1.45 NEW SECURITY ISSUES Tax-Exempt State and Local Governments Millions of dollars 1999 2000 TTyyppee ooff ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. May June 1 All issues, new and refunding1 214,694 262,342 215,427 17,428 14,751 8,969 10,905 16,780 14,233 14,136 20,208 By type of issue 2 General obligation 69,934 87,015 73,308 4,996 3,715 3,454 4,473 5,008 4,598 6,051 8,581 3 Revenue 134,989 175,327 142,120 12,433 11,035 5,516 6,433 11,773 9,635 8,086 11,628 By type of issuer 4 State 18,237 23,506 16,376 929 834 863 1,730 1,570 1,371 1,102 2,907 5 Special district or statutory authority2 134,919 178,421 152,418 12,613 10,640 5,784 7,414 11,098 10,229 9,639 13,520 6 Municipality, county, or township 70,558 60,173 46,634 3,886 3,277 2,322 1,761 4,112 2,633 3,396 3,782 7 Issues for new capital 135,519 160,568 161,065 14,084 11,475 8,009 9,382 13,508 12,029 12,481 16,987 By use of proceeds 8 Education 31,860 36,904 36,563 2,732 3,095 2,189 2,548 3,436 2,484 3,662 4,465 9 Transportation 13,951 19,926 17,394 892 1,201 1,064 723 2,723 768 1,778 1,093 10 Utilities and conservation 12,219 21,037 15,098 1,893 1,008 588 115 1,086 729 537 1,141 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 9,099 668 707 89 647 747 762 585 1,150 13 Other purposes 35,095 42,450 47,896 5,213 3,141 2,885 2,804 2,426 3,903 3,557 5,776 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 iissssuuee,, ooffffeerriinngg,, 11999977 11999988 11999999 oorr iissssuueerr Oct. Nov. Dec. Jan. Feb. Mar. Apr. May 1 All issues' 929,256 1,128,491 1,072,866 58,613 85,016 50,805 55,714 85,679 113,093 61,963r 62,737 2 Bonds2 811,376 1,001,736 941,298 47,103 61,033 42,477 44,220 63,391 96,148 40,941 58,233 By type of offering 3 Sold in the United States 708.188 923,771 818,683 37,721 53,908 36,488 30,784 56,727 87,603 36,724 45,986 4 Sold abroad 103.188 77,965 122,615 9,382 7,125 5,989 13,436 6,664 8,545 4,217 12,247 MEMO 5 Private placements, domestic n.a. n.a. n.a. 1,632 1,237 3,241 967 65 n.a. n.a. n.a. By industry group 6 Nonfinancial 222,603 307,935 293,963 13,990 24,283 14,614 14,599 26,598 28,086 8,060 20,832 7 Financial 588,773 693,801 647,335 33,112 36,750 27,863 29,620 36,792 68,062 32,881 37,400 8 Stocks3 117,880 126,755 131,568 11,510 23,983 8,328 11,494 22,288 16,945 21,022r 4,842 By type of offering 9 Public 117,880 126,755 131,568 11,510 23,983 8,328 11,494 22,288 16,945 21,022r 4,842 10 Private placement4 55,450 78,850 86,300 7,192 7,192 7,192 n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 60,386 74,113 110,284 10,961 22,611 7,450 9,247 21,796 15,679 16,763r 4,708 12 Financial 57,494 52,642 21,284 549 1,372 878 2,247 492 1,266 4,259 134 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 • September 2000 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 2000 IItteemm 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. May' June 1 Sales of own shares2 1,461,430 1,791,894 155,490 185,898 226,251 237,861 269,118 202,248 172,718 182,239 2 Redemptions of own shares 1,217,022 1,621,987 143,688 178,855 204,380 197,423 243,194 176,671 162,984 161,606 3 Net sales3 244,408 169,906 11,801 7,042 21,871 40,438 25,924 25,577 9,735 20,634 4 Assets4 4,173,531 5,233,191 4,874,733 5,233,191 5,114,482 5,375,874 5,606,254 5,391,187 5,232,319 5,462,900 5 Cash5 191,393 219,189 214,751 219,189 222,729 231,480 221,623 254,819 260,426 260,665 3,982,138 5,014,002 4,659,982 5,014,002 4,891,753 5,144,394 5,384,630 5,136,368 4,971,892 5,202,234 6 Other 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 2000 AAccccoouunntt 11999977 11999988 11999999 Q2 Q3 Q4 Ql Q2 Q3 Q4 Ql' 1 Profits with inventory valuation and 838.5 848.4 892.7 849.4 846.8 839.0 886.9 880.5 884.1 919.4 965.6 capital consumption adjustment 795.9 781.9 848.5 792.0 780.1 766.7 818.1 835.8 853.8 886.3 936.5 2 Profits before taxes 238.3 240.2 259.4 241.1 244.3 235.6 248.0 254.4 259.4 275.7 290.8 3 Profits-tax liability 557.6 541.7 589.1 550.9 535.8 531.0 570.1 581.4 594.3 610.6 645.8 4 Profits after taxes 333.7 348.6 364.7 347.3 348.4 352.2 356.4 361.5 367.3 373.5 380.0 5 Dividends 223.9 193.1 224.4 203.6 187.4 178.8 213.7 219.9 227.0 237.1 265.8 6 Undistributed profits 7.4 20.9 -13.0 13.6 19.8 20.8 13.3 -13.6 -26.7 -24.9 -26.7 7 Inventory valuation 35.3 45.6 57.2 43.8 46.9 51.6 55.5 58.2 57.0 58.0 55.7 8 Capital consumption adjustment 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 2000 AAccccoouunntt 11999977 11999988 11999999 Q4 Ql Q2 Q3 Q4 Ql Q2 ASSETS 663.3 711.7 811.5 711.7 733.8 756.5 776.3 811.5 848.7 653.9 1 Accounts receivable, gross2 256.8 261.8 .0 261.8 261.7 .0 .0 .0 .0 77.5 2 Consumer 318.5 347.5 n.a. 347.5 362.8 365.0 n.a. n.a. n.a. 443.7 3 Business 87.9 102.3 126.5 102.3 109.2 113.3 122.3 126.5 128.8 132.7 4 Real estate 52.7 56.3 53.5 56.3 52.9 53.4 54.0 53.5 53.9 n.a. 5 LESS: Reserves for unearned income 13.0 13.8 13.5 13.8 13.4 13.4 13.6 13.5 14.0 n.a. 6 Reserves for losses 597.6 641.6 744.6 641.6 667.6 689.7 708.6 744.6 780.8 653.9 312.4 337.9 406.3 337.9 363.3 373.2 368.5 406.3 412.5 n.a. 7 Accounts receivable, net 8 All other 910.0 979.5 1,150.9 979.5 1,030.8 1,062.9 1,077.2 1,150.9 1,193.3 653.9 9 Total assets LIABILITIES AND CAPITAL 24.1 26.3 35.1 26.3 24.8 25.1 27.0 35.1 30.7 201.5 231.5 227.9 231.5 222.9 231.0 205.3 227.9 229.7 10 Bank loans 11 Commercial paper 64.7 61.8 123.8 61.8 64.6 65.4 84.5 123.8 145.2 n a. DDeebbtt 328.8 339.7 397.0 339.7 366.7 383.1 396.2 397.0 410.0 1122 Owed to parent 189.6 203.2 222.7 203.2 220.3 226.1 216.0 222.7 241.6 13 Not elsewhere classified 101.3 117.0 144.5 117.0 131.5 132.2 148.2 114444..55 113366..22 14 All other liabilities 15 Capital, surplus, and undivided profits 910.0 979.5 1,150.9 979.5 1,030.8 1,062.9 1,077.2 1,150.9 1,193.4 16 Total liabilities and capital 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, 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 11999999 Dec. Jan. Feb. Mar. Apr. May Seasonally adjusted 1 Total 810.5 875.8 993.9 993.9 1,022.4 1,032.2 1,054.1 1,073.0 185.6 2 Consumer 327.9 352.8 385.3 385.3 391.7 395.5 396.7 398.0 185.6 3 Real estate 121.1 131.4 154.7 154.7 159.1 162.3 167.9 173.1 n.a. 4 Business 361.5 391.6 453.9 453.9 471.6 474.4 489.4 501.9 n.a. Not seasonally adjusted 5 Ibtal 818.1 884.0 1,003.2 1,003.2 1,022.4 1,031.9 1,057.0 1,073.2 185.0 6 Consumer 330.9 356.1 388.8 388.8 391.1 392.3 392.8 394.4 185.0 7 Motor vehicles loans 87.0 103.1 114.7 114.7 117.6 121.3 121.1 120.9 123.9 8 Motor vehicle leases 96.8 93.3 98.3 98.3 99.3 100.7 101.7 102.8 n.a. 9 Revolving2 38.6 32.3 33.8 33.8 34.4 32.9 31.5 31.9 29.8 10 Other3 34.4 33.1 33.1 33.1 33.0 32.7 31.1 31.2 31.3 Securitized assets4 11 Motor vehicle loans 44.3 54.8 71.1 71.1 69.6 67.8 71.2 72.1 12 Motor vehicle leases 10.8 12.7 9.7 9.7 9.5 9.2 8.8 8.5 13 Revolving .0 8.7 10.5 10.5 10.4 10.4 10.3 10.1 14 Other 19.0 18.1 17.7 17.7 17.4 17.3 17.1 16.8 15 Real estate 121.1 131.4 154.7 154.7 159.1 162.3 167.9 173.1 16 One- to four-family 59.0 75.7 88.3 88.3 91.1 91.7 90.4 93.6 17 Other 28.9 26.6 38.3 38.3 38.6 38.4 38.4 39.0 Securitized real estate assets4 18 One- to four-family 33.0 29.0 28.0 28.0 29.2 32.0 38.9 40.2 19 Other .2 .1 .2 .2 .2 .2 .2 .2 20 Business 366.1 396.5 459.6 459.6 472.2 477.4 496.3 505.7 21 Motor vehicles 63.5 79.6 87.8 87.8 87.9 89.6 90.2 93.6 22 Retail loans 25.6 28.1 33.2 33.2 33.3 33.7 32.3 32.7 23 Wholesale loans5 27.7 32.8 34.7 34.7 34.6 35.8 37.9 38.9 n.a. 24 Leases 10.2 18.7 19.9 19.9 20.1 20.1 19.9 22.0 25 Equipment 203.9 198.0 221.9 221.9 222.3 225.1 238.0 243.1 26 Loans 51.5 50.4 52.2 52.2 51.9 52.8 54.9 55.6 27 Leases 152.3 147.6 169.7 169.7 170.4 172.3 183.1 187.5 28 Other business receivables6 51.1 69.9 95.5 95.5 99.6 101.4 106.4 107.0 Securitized assets4 29 Motor vehicles 33.0 29.2 31.5 31.5 31.5 31.0 31.5 32.3 30 Retail loans 2.4 2.6 2.9 2.9 2.9 2.8 3.2 3.1 31 Wholesale loans 30.5 24.7 26.4 26.4 26.5 26.1 25.9 26.8 32 Leases .0 1.9 2.1 2.1 2.1 2.1 2.4 2.4 33 Equipment 10.7 13.0 14.6 14.6 22.8 22.5 22.0 21.7 34 Loans 4.2 6.6 7.9 7.9 16.1 15.9 15.4 15.2 35 Leases 6.5 6.4 6.7 6.7 6.7 6.6 6.5 6.5 36 Other business receivables6 4.0 6.8 8.4 8.4 8.1 7.7 8.3 8.0 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidiarbreakdowns have been obtained for some components. In addition, previously unavailable ies of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • September 2000 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 1999 2000 IItteemm 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May June Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 216.3 223.7 216.9 226.0 224.2 232.2 238.6 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 167.2 169.9 165.6 170.7 170.2 176.3 178.3 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 78.6 77.9 78.4 77.7 77.9 78.0 76.9 4 Maturity (years) 28.2 28.4 28.8 29.0 29.1 29.1 29.0 29.1 29.2 29.2 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .71 .75 .71 .68 .68 .71 .69 Yield (percent per year) 6 Contract rate1 7.57 6.95 6.94 7.18 7.34 7.43 7.49 7.52 7.44 7.40 7 Effective rate1,3 7.73 7.08 7.06 7.28 7.45 7.54 7.60 7.63 7.55 7.50 8 Contract rate (HUD series)4 7.76 7.00 7.45 7.95 8.21 8.20 8.19 8.29 8.26 n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.55 8.56 8.53 8.35 8.33 8.58 n.a. 10 GNMA securities6 7.26 6.43 7.03 7.58 7.84 7.96 7.79 7.64 8.06 7.69 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 523,941 527,977 535,096 538,751 539,181 545,803 552,166 12 FHA/VA insured 31,925 33,770 55,318 55,318 57,369 58,294 58,451 58,899 59,140 59,703 13 Conventional 284,753 380,745 468,623 468,623 470,608 476,802 480,300 480,282 486,663 492,463 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 11,416 9,035 11,484 8,801 6,257 12,872 12,842 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 9,931 9,130 9,811 10,051 12,524 10,450 11,825 16 To sell8 1,298 1,880 5,900 1,592 1,287 612 1,954 1,340 1,594 1,254 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 164,421 255,010 324,443 324,443 325,914 328,598 336,338 339,207 347,370 350,836 18 FHA/VA insured 177 785 1,836 1,836 1,806 1.719 2,521 1,987 3,116 2,552 19 Conventional 164,244 254,225 322,607 322,607 324,108 326,879 333,817 337,220 344,254 348,284 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 9,335 12,942 6,747 9,323 8,393 15,741 12,271 21 Sales 114,258 250,565 233,031 8,589 12,764 6,424 8,569 8,077 15,261 11,806 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 11,587 8,341 7,156 10,122 8,750 13,807 13,596 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 1999 2000 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999966 11999977 11999988 Ql Q2 Q3 Q4 Ql 1 All holders 4,877,536 5,211,286 5,736,638 5,876,132 6,029,340 6,238,187 6,387,651 6,503,518 By type of property 2 One- to four-family residences 3,718,723 3,970,848 4,355,376 4,447,543 4,561,061 4,692,093 4,788,204 4,862,061 3 Multifamily residences 289,186 302,517 330,551 341,889 349,310 359,904 373,514 382,602 4 Nonfarm, nonresidential 782,493 847,623 954,205 989,302 1,019,331 1,084,794 1,122,968 1,154,354 5 Farm 87,134 90,299 96,506 97,398 99,638 101,396 102,965 104,501 By type of holder 6 Major financial institutions 1,981,886 2,083,981 2,194,813 2,202,218 2,242,431 2,321,356 2,393,684 2,460,338 7 Commercial banks2 1,145,389 1,245,315 1,337,217 1,336,733 1,361,365 1,418,819 1,495,717 1,547,038 8 One- to four-family 677,603 745,510 797,492 782,446 790,372 827,291 879,676 904,710 9 Multifamily 45,451 49,670 54,116 58,036 60,529 63,964 67,591 72,431 in Nonfarm, nonresidential 397,452 423,148 456,574 466,738 479,929 496,246 516,611 537,224 11 Farm 24,883 26,986 29,035 29,513 30,536 31,320 31,839 32,673 12 Savings institutions3 628,335 631,826 643,957 646,510 656,518 676,346 668,634 680,745 13 One- to four-family 513,712 520,782 533,918 534,898 544,962 560,622 549,072 560,046 14 Multifamily 61,570 59,540 56,821 56,759 55,016 57,282 59,138 57,759 15 Nonfarm, nonresidential 52,723 51,150 52,801 54,417 56,096 57,983 59,948 62,447 16 Farm 331 354 417 435 443 459 475 493 17 Life insurance companies 208,162 206,840 213,640 218,975 224,548 226,190 229,333 232,555 18 One- to four-family 6,977 7,187 6,590 6,953 7,292 7,432 5,935 6,137 19 Multifamily 30,750 30,402 31,522 31,515 31,800 31,998 32,592 32,983 20 Nonfarm, nonresidential 160,315 158,779 164,004 168,795 173,495 174,571 177,817 179,949 21 Farm 10,120 10,472 11,524 11,712 11,961 12,189 12,989 13,486 22 Federal and related agencies 295,192 286,167 292,636 288,176 288,038 320,850 320,105 318,240 23 Government National Mortgage Association 2 8 7 6 8 8 7 7 24 One- to four-family 2 8 7 6 8 8 7 7 25 Multifamily 0 0 0 0 0 0 0 0 76 Fanners Home Administration4 41,596 41,195 40,851 40,691 40,766 73,705 73,871 72,899 27 One- to four-family 17,303 17,253 16,895 16,777 16,653 16,583 16,506 16,456 28 Multifamily 11,685 11,720 11,739 11,731 11,735 11,745 11,741 11,732 79 Nonfarm, nonresidential 6,841 7,370 7,705 7,769 7,943 41,068 41,355 40,509 30 Farm 5,768 4,852 4,513 4,413 4,435 4,308 4,268 4,202 31 Federal Housing and Veterans' Administrations 6,244 3,821 3,674 3,538 3,490 3,889 3,712 3,773 32 One- to four-family 3,524 1,767 1,849 1,713 1,623 2,013 1,851 1,826 33 Multifamily 2,719 2,054 1,825 1,825 1,867 1,876 1,861 1,947 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 2,431 724 361 315 189 163 152 98 40 One- to four-family 365 109 54 47 28 24 23 15 41 Multifamily 413 123 61 54 32 28 26 17 42 Nonfarm, nonresidential 1,653 492 245 214 129 111 103 67 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 168,813 161,308 157,675 157,185 155,637 153,172 151,500 150,312 45 One- to four-family 155,008 149,831 147,594 147,063 145,033 142,982 141,195 139,986 46 Multifamily 13,805 11,477 10,081 10,122 10,604 10,190 10,305 10,326 47 Federal Land Banks 29,602 30,657 32,983 33,128 33,666 34,218 34,187 34,142 48 One- to four-family 1,742 1,804 1,941 1,949 1,981 2,013 2,012 2,009 49 Farm 27,860 28,853 31,042 31,179 31,685 32,205 32,175 32,133 50 Federal Home Loan Mortgage Corporation 46,504 48,454 57,085 53,313 54,282 55,695 56,676 57,009 51 One- to four-family 41,758 42,629 49,106 44,140 43,574 44,010 44,321 43,384 52 Multifamily 4,746 5,825 7,979 9,173 10,708 11,685 12,355 13,625 53 Mortgage pools or trusts5 2,040,848 2,239,350 2,589,764 2,715,196 2,810,119 2,891,187 2,954,836 3,000,462 54 Government National Mortgage Association 506,246 536,879 537,446 543,280 553,196 569,038 582,307 589,385 55 One- to four-family 494,064 523,225 522,498 527,886 537,287 552,670 565,233 571,699 56 Multifamily 12,182 13,654 14,948 15,395 15,909 16,368 17,074 17,686 57 Federal Home Loan Mortgage Corporation 554,260 579,385 646,459 687,179 718,085 738,581 749,081 757,106 58 One- to four-family 551,513 576,846 643,465 684,240 714,844 735,088 744,619 752,607 59 Multifamily 2,747 2,539 2,994 2,939 3,241 3,493 4,462 4,499 60 Federal National Mortgage Association 650,780 709,582 834,518 881,815 911,435 938,484 960,883 975,815 6! One- to four-family 633,210 687,981 804,205 849,513 877,863 903,531 924,941 938,898 62 Multifamily 17,570 21,601 30,313 32,302 33,572 34,953 35,942 36,917 63 Farmers Home Administration4 3 2 1 1 1 0 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 0 0 0 68 Private mortgage conduits 329,559 413,502 571,340 602,921 627,402 645,084 662,565 678,156 69 One- to four-family6 258,800 316,400 412,700 430,653 447,938 455,276 462,600 471,390 70 Multifamily 16,369 21,591 34,323 37,736 39,435 40,936 42,628 43,835 71 Nonfarm, nonresidential 54,390 75,511 124,317 134,532 140,029 148,873 157,337 162,930 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 559,609 601,788 659,425 670,542 688,753 704,794 719,026 724,478 74 One to four-family 363,143 379,516 417,063 419,258 431,603 442,550 450,213 452,891 75 Multifamily 69,179 72,320 73,829 74,302 74,863 75,386 77,799 78,846 76 Nonfarm, nonresidential 109,119 131,173 148,559 156,836 161,711 165,943 169,796 171,228 77 Farm 18,169 18,779 19,974 20,145 20,577 20,916 21,218 21,513 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 • September 2000 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 1999 2000 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. Mayp Seasonally adjusted 1 Total 1,234,461 1,301,023 1,393,657 1,393,657 1,409,387 1,418,756 1,429,431 1,438,201 1,449,968 2 Revolving 531,163 560,504 595,610 595,610 603,782 608,523 615,510 622,005 626,639 3 Nonrevolving2 703,297 740,519 798,047 798,047 805,605 810,233 813,921 816,197 823,330 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,426,151 1,426,151 1,419,258 1,413,585 1,416,228 1,425,998 1,436,845 By major holder 5 Commercial banks 512,563 508,932 499,758 499,758 498,589 499,148 497,120 502,679 507,995 6 Finance companies 160,022 168,491 181,573 181,573 184,887 186,896 183,705 184,050 185,030 7 Credit unions 152,362 155,406 167,921 167,921 168,109 168,209 169,487 171,257 173,679 8 Savings institutions 47,172 51,611 61,527 61,527 60,674 59,821 58,968 59,472 59,976 9 Nonfinancial business 78,927 74,877 80,311 80,311 76,048 73,509 72,908 72,979 73,738 10 Pools of securitized assets3 313,057 372,425 435,061 435,061 430,951 426,002 434,040 435,561 436,427 By major type of credit4 11 Revolving 555,858 586,528 623,245 623,245 614,528 609,387 609,086 615,138 619,027 12 Commercial banks 219,826 210,346 189,352 189,352 185,451 186,379 184,901 188,691 192,351 13 Finance companies 38,608 32,309 33,814 33,814 34,352 32,885 31,456 31,928 29,813 14 Credit unions 19,552 19,930 20,641 20,641 20,175 19,941 19,764 19,929 20,056 15 Savings institutions 11,441 12,450 15,838 15,838 15,551 15,263 14,975 15,291 15,607 16 Nonfinancial business 44,966 39,166 42,783 42,783 39,746 37,918 37,430 37,418 37,945 17 Pools of securitized assets3 221,465 272,327 320,817 320,817 319,253 317,001 320,560 321,881 323,255 18 Nonrevolving 708,245 745,214 802,906 802,906 804,730 804,198 807,142 810,860 817,818 19 Commercial banks 292,737 298,586 310,406 310,406 313,138 312,769 312,219 313,988 315,644 20 Finance companies 121,414 136,182 147,759 147,759 150,535 154,011 152,249 152,122 155,217 21 Credit unions 132,810 135,476 147,280 147,280 147,934 148,268 149,723 151,328 153,623 22 Savings institutions 35,731 39,161 45,689 45,689 45,123 44,558 43,993 44,181 44,369 23 Nonfinancial business 33,961 35,711 37,528 37,528 36,302 35,591 35,478 35,561 35,793 24 Pools of securitized assets3 91,592 100,098 114,244 114,244 111,698 109,001 113,480 113,680 113,172 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, excluding loans secured by real estate. Data in this table also appear are no longer carried on the balance sheets of the loan originator. in the Board's G.19 (421) monthly statistical release. For ordering address, see inside front 4. Totals include estimates for certain holders for which only consumer credit totals are cover. available. 2. Comprises motor vehicle loans, mobile home loans, and all other loans that are not 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 Nov. Dec. Jan. Feb. Mar. Apr. Mayp INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 8.66 n.a. n.a. 8.88 n.a. n.a. 9.21 2 24-month personal 13.90 13.74 13.39 13.52 n.a. n.a. 13.76 n.a. n.a. 13.88 Credit card plan 3 All accounts 15.77 15.71 15.21 15.13 n.a. n.a. 15.47 n.a. n.a. 15.39 4 Accounts assessed interest 15.57 15.59 14.81 14.77 n.a. n.a. 14.32 n.a. n.a. 14.74 Auto finance companies 5 New car 7.12 6.30 6.66 7.44 7.32 7.18 7.34 6.76 6.38 6.51 6 Used car 13.27 12.64 12.60 13.27 13.28 12.95 13.27 13.45 13.52 13.47 OTHER TERMS3 Maturity (months) 7 New car 54.1 52.1 52.7 53.9 53.4 52.9 52.7 53.1 53.8 53.5 8 Used car 51.0 53.5 55.9 55.8 55.6 57.0 57.1 57.1 57.1 57.1 Loan-to-value ratio 9 New car 92 92 92 91 91 91 92 93 93 93 10 Used car 99 99 99 99 99 98 98 99 98 99 Amount financed (dollars) 11 New car 18,077 19,083 19,880 20,517 20,699 20,503 20,206 20,395 20,542 20,621 12 Used car 12,281 12,691 13,642 13,777 13,970 13,809 13,697 13,666 13,871 14,132 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1998 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q3 Q4 QL Q2 Q3 Q4 Ql Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors ... 568.0 712.0 732.5 805.5 1,038.1 909.0 1,087.1 1,287.7 889.1 1,180.9 1,123.7 956.6 By sector and instrument 7 Federal government 155.8 144.4 145.0 23.1 -52.6 -113.5 -54.1 -75.2 -112.2 -83.1 -14.3 -204.0 3 Treasury securities 155.7 142.9 146.6 23.2 -54.6 -113.1 -66.3 -73.7 -112.8 -83.2 -14.3 -201.9 4 Budget agency securities and mortgages .2 1.5 -1.6 -.1 2.0 -.4 12.2 -1.5 .6 .0 .0 -2.1 5 Nonfederal 412.2 567.6 587.5 782.4 1,090.7 1,022.5 1,141.3 1,363.0 1,001.3 1,264.0 1,138.0 1,160.6 By instrument Commercial paper 21.4 18.1 -.9 13.7 24.4 85.6 -43.0 58.3 -2.6 49.8 44.0 36.4 7 Municipal securities and loans -35.9 -48.2 2.6 71.4 96.8 82.9 89.6 100.7 48.0 77.0 47.0 19.3 8 Corporate bonds 23.3 91.1 116.3 150.5 218.7 108.0 193.2 274.0 287.6 202.8 155.2 189.0 Bank loans n.e.c 75.2 103.7 70.5 106.5 108.2 107.8 120.9 70.0 22.2 112.8 125.8 104.5 10 Other loans and advances 34.0 67.2 33.5 69.1 74.3 77.7 102.5 153.9 -14.5 79.0 56.2 172.0 11 Mortgages 169.3 196.7 276.9 318.7 500.6 480.9 608.1 575.4 599.2 666.4 600.4 496.4 1? Home 183.4 180.4 242.2 251.9 383.3 389.8 441.3 413.9 428.1 491.3 398.0 338.0 N Multifamily residential -3.7 5.9 9.5 8.4 18.8 11.1 26.3 35.3 33.4 45.9 48.1 33.8 14 Commercial -12.7 8.9 22.7 55.2 92.3 74.6 131.9 122.6 128.7 122.1 151.8 120.7 15 Farm 2.2 1.6 2.6 3.2 6.2 5.5 8.6 3.6 9.0 7.0 2.5 3.9 16 Consumer credit 124.9 138.9 88.8 52.5 67.6 79.6 69.9 130.5 61.4 76.2 109.5 143.1 By borrowing sector 17 Household 313.6 348.5 347.3 332.9 476.9 477.7 530.4 543.7 511.6 600.9 551155..55 502.5 18 Nonfinancial business 144.8 270.6 247.0 393.4 533.5 474.7 535.8 731.8 454.0 606.2 591.5 643.5 19 Corporate 137.2 237.1 158.4 272.3 416.0 358.4 413.4 628.4 355.2 470.9 463.6 518.8 70 Nonfarm noncorporate 3.3 30.6 83.8 115.0 109.8 109.0 114.8 96.8 99.8 125.7 122.0 111.0 71 Farm 4.4 2.9 4.8 6.2 7.7 7.3 7.5 6.6 -1.0 9.5 5.9 13.8 22 State and local government -46.2 -51.5 -6.8 56.1 80.3 70.0 75.1 87.4 35.7 57.0 31.0 14.6 73 Foreign net borrowing in United States -13.9 71.1 77.2 57.6 33.6 -19.6 -38.9 .17.0 -36.8 62.2 15.6 114.2 74 Commercial paper -26.1 13.5 11.3 3.7 7.8 6.2 -4.7 18.0 -27.5 41.1 33.6 56.8 75 Bonds 12.2 49.7 55.8 47.2 25.1 -27.2 -34.2 .9 -12.6 29.4 -17.2 39.1 76 Bank loans n.e.c 1.4 8.5 9.1 8.5 6.7 3.6 9.8 .9 5.6 -6.6 2.3 15.4 27 Other loans and advances -1.4 -.5 1.0 -1.8 -6.0 -2.2 -9.7 -2.8 -2.3 -1.6 -3.0 2.9 28 Total domestic plus foreign 554.1 783.1 809.7 863.1 1,071.6 889.4 1,048.3 1,304.7 852.3 1,243.1 1,139.3 1,070.8 Financial sectors 29 Total net borrowing by financial sectors 468.4 453.9 545.8 653.7 1,073.9 1,067.9 1,296.9 1,199.2 1,016.1 1,075.2 1,061.2 596.0 By instrument 30 Federal government-related 287.5 204.1 231.5 212.8 470.9 555.8 673.3 592.2 578.9 653.0 543.9 253.8 31 Government-sponsored enterprise securities 176.9 105.9 90.4 98.4 278.3 294.0 510.5 193.0 304.7 407.1 367.9 106.9 32 Mortgage pool securities 115.4 98.2 141.1 114.5 192.6 261.7 162.8 399.2 274.3 245.9 176.0 146.9 33 Loans from U.S. government -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 180.9 249.8 314.4 440.9 603.0 512.1 623.6 607.0 437.2 422.3 517.3 342.3 35 Open market paper 40.5 42.7 92.2 166.7 161.0 141.0 130.7 78.3 57.8 89.8 478.9 130.2 36 Corporate bonds 121.8 195.9 173.8 210.5 296.9 189.0 280.1 475.9 263.2 182.1 -34.0 164.1 37 Bank loans n.e.c -13.7 2.5 12.6 13.2 30.1 60.2 12.4 -8.8 10.5 -6.2 -52.7 6.6 38 Other loans and advances 22.6 3.4 27.9 35.6 90.2 82.3 169.9 41.6 117.9 147.2 121.8 34.3 39 Mortgages 9.8 5.3 7.9 14.9 24.8 39.6 30.6 20.1 -12.3 9.4 3.2 7.0 By borrowing sector 40 Commercial banking 20.1 22.5 13.0 46.1 72.9 61.7 66.3 31.1 72.7 111111..33 5533..88 5566..55 41 Savings institutions 12.8 2.6 25.5 19.7 52.2 63.7 103.2 58.0 58.6 55.2 20.2 25.9 47 Credit unions .2 -.1 .1 .1 .6 1.0 .4 1.5 1.4 2.8 3.3 -2.9 43 Life insurance companies .3 -.1 1.1 .2 .7 1.6 1.8 3.3 3.0 1.1 -4.4 -.7 44 Government sponsored enterprises 172.1 105.9 90.4 98.4 278.3 294.0 510.5 193.0 304.7 407.1 367.9 106.9 45 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 261.7 162.8 399.2 274.3 245.9 176.0 146.9 46 Issuers of asset-backed securities (ABSs) 76.5 142.4 150.8 202.2 321.4 305.8 333.9 285.5 309.2 224.6 116.7 161.4 47 Finance companies 48.7 50.2 45.9 48.7 43.0 -12.0 17.8 71.2 88.4 -22.6 112.6 44.3 48 Mortgage companies -11.5 -2.2 4.1 -4.6 1.6 2.3 3.0 -4.6 5.1 -6.1 6.2 -3.0 49 Real estate investment trusts (REITs) 10.2 4.5 11.9 39.6 62.7 79.3 44.0 25.6 -19.7 7.9 11.3 11.5 50 Brokers and dealers .5 -5.0 -2.0 8.1 7.2 -2.6 12.4 -31.1 -17.4 16.9 -37.3 44.4 51 Funding corporations 23.1 34.9 64.1 80.7 40.7 11.2 40.9 166.5 -63.8 31.2 234.8 5.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • September 2000 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1998 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 Q3 Q4 Qi Q2 Q3 Q4 Ql All sectors 52 Total net borrowing, all sectors 1,022.5 1,237.0 1,355.6 1,516.8 2,145.5 1,957.2 2,345.2 2,503.9 1,868.5 2,318.3 2,200.5 1,666.9 53 Open market paper 35.7 74.3 102.6 184.1 193.1 232.7 83.0 154.6 27.7 180.6 556.5 223.4 54 U.S. government securities 448.1 348.5 376.5 235.9 418.3 442.3 619.1 517.0 466.8 569.8 529.6 49.8 55 Municipal securities -35.9 -48.2 2.6 71.4 96.8 82.9 89.6 100.7 48.0 77.0 47.0 19.3 56 Corporate and foreign bonds 157.3 336.7 345.8 408.2 540.7 269.8 439.1 750.7 538.2 414.3 104.1 392.2 57 Bank loans n.e.c 62.9 114.7 92.1 128.2 145.0 171.6 143.0 62.1 38.3 100.0 75.3 126.5 58 Other loans and advances 50.4 70.1 62.5 102.8 158.5 157.8 262.7 192.7 101.1 224.6 175.0 209.2 59 Mortgages 179.0 202.0 284.8 333.6 525.4 520.5 638.7 595.5 587.0 675.8 603.6 503.4 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 79.6 69.9 130.5 61.4 76.2 109.5 143.1 Funds raised through mutual funds and corporate equities 61 Total net issues 113.4 131.5 209.1 165.6 76.5 -166.6 -3.5 153.3 163.5 102.9 148.0 427.2 62 Corporate equities 12.8 -16.0 -28.5 -99.6 -198.1 -340.0 -228.3 -99.9 -47.3 -20.4 -26.5 106.3 63 Nonfinancial corporations -44.9 -58.3 -69.5 -114.4 -267.0 -308.4 -491.3 -52.1 -338.4 -128.4 -55.0 62.8 64 Foreign shares purchased by U.S. residents 48.1 50.4 60.0 42.0 77.8 -32.8 317.4 -33.4 270.9 108.4 45.2 63.0 65 Financial corporations 9.6 -8.1 -19.0 -27.1 -8.9 1.1 -54.5 -14.5 20.2 -.3 -16.7 -19.5 66 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 173.4 224.8 253.3 210.9 123.2 174.5 320.9 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 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Q3 Q4 Q1 Q2 Q3 Q4 QL NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,022.5 1,237.0 1,355.6 1,516.8 2,145.5 1,957.2 2,345.2 2,503.9 1,868.5 2,318.3 2,200.5 1,666.9 ? Domestic nonfederal nonfinancial sectors 223.4 -98.4 12.0 -43.7 74.7 88.8 -261.5 423.3 397.8 195.4 14.6 -120.5 3 Household 260.2 -3.0 60.3 -29.0 -73.8 -142.2 -439.7 246.4 288.3 186.3 20.7 -170.9 4 Nonfinancial corporate business 17.7 -8.8 -10.2 -12.7 14.0 15.2 36.4 42.0 25.0 52.2 -9.5 36.0 5 Nonfarm noncorporate business .6 4.7 -4.3 -2.1 .1 .1 .1 2.8 1.2 .8 1.4 2.6 6 State and local governments -55.0 -91.4 -33.7 .1 134.5 215.7 141.7 132.2 83.3 -43.9 2.0 11.9 7 Federal government -27.4 -.2 -7.4 5.1 13.5 13.8 11.7 17.0 6.9 11.4 3.2 7.1 8 Rest of the world 132.3 273.9 414.4 310.7 249.3 60.8 390.7 253.3 37.4 382.2 141.3 338.9 9 Financial sectors 694.1 1,061.7 936.6 1,244.6 1,808.1 1,793.8 2,204.3 1,810.3 1,426.4 1,729.4 2,041.4 1,441.4 10 Monetary authority 31.5 12.7 12.3 38.3 21.1 41.6 3.5 71.8 62.4 34.1 -65.7 112.2 11 Commercial banking 163.4 265.9 187.5 324.3 305.2 250.1 531.5 68.9 135.4 435.5 593.1 382.4 12 U.S.-chartered banks 148.1 186.5 119.6 274.9 312.0 309.2 540.2 134.1 231.5 410.7 494.2 417.6 13 Foreign banking offices in United States 11.2 75.4 63.3 40.2 -11.9 -68.1 -12.1 -54.9 -105.7 30.6 49.7 1.9 14 Bank holding companies .9 -.3 3.9 5.4 -.9 6.0 -7.4 -6.0 .4 -12.4 42.6 -42.5 15 Banks in U.S.-affiliated areas 3.3 4.2 .7 3.7 6.0 2.9 10.7 -4.4 9.2 6.6 6.6 5.4 16 Savings institutions 6.7 -7.6 19.9 -4.7 36.3 17.9 113.3 102.7 88.8 60.9 22.3 39.1 17 Credit unions 28.1 16.2 25.5 16.8 19.0 21.0 16.0 34.7 32.1 29.6 13.5 44.8 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 -16.0 -13.5 -7.6 -8.4 -8.6 -9.1 -9.5 19 Life insurance companies 72.0 100.0 69.6 104.8 76.9 65.6 86.0 72.1 63.4 38.4 22.5 75.9 20 Other insurance companies 24.9 21.5 22.5 25.2 20.4 -7.7 67.6 -19.7 26.7 -14.4 -7.7 .1 21 Private pension funds 46.1 56.0 52.3 65.5 118.6 95.5 174.4 60.6 150.1 45.4 131.0 62.1 22 State and local government retirement funds 30.9 33.6 37.3 63.8 66.0 68.7 49.5 76.5 27.3 38.5 59.8 -13.2 23 Money market mutual funds 30.0 86.5 88.8 87.5 244.0 255.5 353.1 227.6 -92.6 232.1 360.8 222.1 74 Mutual funds -7.1 52.5 48.9 80.9 124.8 92.9 103.5 103.0 119.9 -18.8 -11.7 -70.6 ?5 Closed-end funds -3.7 10.5 4.7 -2.9 4.5 4.5 4.5 3.1 3.1 3.1 3.1 3.1 26 Government-sponsored enterprises 117.8 86.7 84.2 94.3 260.8 264.7 429.5 157.2 259.2 287.5 234.1 100.4 27 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 261.7 162.8 399.2 274.3 245.9 176.0 146.9 ?8 Asset-backed securities issuers (ABSs) 69.4 120.6 120.5 163.8 281.7 260.3 310.9 267.9 292.4 216.1 86.9 140.8 ?9 Finance companies 48.3 49.9 18.4 21.9 51.9 79.5 75.3 92.2 79.6 94.7 113.1 141.3 30 Mortgage companies -24.0 -3.4 8.2 -9.1 3.2 4.5 6.0 -9.1 10.2 -12.1 12.3 -6.0 31 Real estate investment trusts (REITs) -.7 1.4 4.4 20.2 -5.1 -11.3 -40.8 1.7 -2.2 -2.7 -7.0 -16.3 3T Brokers and dealers -44.2 90.1 -15.7 14.9 6.8 146.0 -226.1 88.0 -193.7 16.3 -33.7 169.2 33 Funding corporations -17.8 -21.2 14.0 49.8 -7.9 -101.5 -2.8 19.5 98.4 8.0 347.6 -83.3 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,022.5 1,237.0 1,355.6 1,516.8 2,145.5 1,957.2 2,345.2 2,503.9 1,868.5 2,318.3 2,200.5 1,666.9 Other financial sources 35 Official foreign exchange -5.8 8.8 -6.3 .7 6.6 88..99 88..66 --1144..00 --55..44 --88..55 --77..00 ..88 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 .0 .0 -4.0 .0 -4.0 -4.0 ..00 37 Treasury currency .7 .6 .1 .0 .0 1.7 -2.3 .0 2.1 2.0 -4.1 2.2 38 Foreign deposits 52.9 35.3 85.9 106.8 -.2 84.9 -131.9 127.7 99.3 55.1 -12.9 52.0 39 Net interbank transactions 89.8 10.0 -51.6 -19.7 -32.3 44.7 -118.7 49.9 90.9 -35.9 -62.9 -100.6 40 Checkable deposits and currency -9.7 -12.7 15.8 41.5 47.6 -24.9 72.8 61.1 10.1 141.0 394.3 -224.2 41 Small time and savings deposits -39.9 96.6 97.2 97.1 152.4 144.7 281.2 -68.0 100.0 141.9 3.6 113.8 47 Large time deposits 19.6 65.6 114.0 122.5 92.1 81.8 104.4 -5.9 42.6 105.2 379.2 121.1 43 Money market fund shares 43.3 142.3 145.8 157.6 285.5 367.9 313.1 204.9 100.5 180.3 516.7 217.5 44 Security repurchase agreements 78.2 110.5 41.4 120.9 91.3 274.8 -181.8 253.3 -27.9 114.6 346.7 275.4 45 Corporate equities 12.8 -16.0 -28.5 -99.6 -198.1 -340.0 -228.3 -99.9 -47.3 -20.4 -26.5 106.3 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 173.4 224.8 253.3 210.9 123.2 174.5 320.9 47 Trade payables 120.0 128.9 114.8 130.5 27.4 58.8 -61.9 139.9 241.2 218.1 96.9 168.3 48 Security credit -.1 26.7 52.4 111.0 103.3 149.5 -25.7 -66.6 139.9 29.5 271.3 517.5 49 Life insurance reserves 35.5 45.8 44.5 59.3 53.3 51.7 59.0 40.8 75.6 65.5 52.4 49.2 50 Pension fund reserves 254.4 235.4 247.6 304.4 303.9 296.2 349.6 272.4 293.4 271.9 311.8 287.9 51 Taxes payable 2.6 6.2 16.0 15.6 11.8 27.0 7.8 -7.6 42.4 -3.1 24.4 .5 52 Investment in bank personal trusts 17.8 4.0 -8.6 -56.3 -48.0 -51.2 -48.8 -32.0 -25.9 -34.3 -32.3 -40.4 53 Noncorporate proprietors' equity 43.0 35.7 -2.3 -44.4 -45.6 -102.2 -7.9 -7.9 8.9 -66.2 -15.8 -29.7 54 Miscellaneous 250.7 451.1 504.5 481.6 816.8 854.2 668.3 184.6 1,189.7 356.1 501.0 475.0 55 Total financial sources 2,088.9 2,761.5 2,975.5 3,311.1 4,087.9 4,059.2 3,627.4 3,786.0 4,409.3 3,950.3 5,107.9 3,980.3 Liabilities not identified as assets (—) 56 Treasury currency -.2 -.5 -.9 -.6 -.7 1.1 -3.4 -1.5 ..66 .2 -6.3 .6 57 Foreign deposits 43.0 25.1 59.6 105.6 -8.1 70.3 -157.4 61.8 8866..22 9.5 32.4 -8.5 58 Net interbank liabilities -2.7 -3.1 -3.3 -19.9 3.4 22.3 -52.8 58.7 -1.7 -1.0 -39.8 34.5 59 Security repurchase agreements 67.7 20.2 4.5 62.2 54.1 153.8 -11.1 209.3 62.4 48.0 -192.6 571.0 60 Taxes payable 16.6 21.1 22.8 26.8 18.0 28.7 19.6 -14.8 5.8 1.6 -3.1 -16.5 61 Miscellaneous -146.4 -204.8 -70.7 -63.8 -47.4 -14.4 -4.9 -411.4 -430.5 -460.4 -131.6 -392.7 Floats not included in assets ( —) 62 Federal government checkable deposits -4.8 -6.0 .5 -2.7 2.6 32.4 14.0 -1.8 -41.4 23.0 -9.5 28.8 63 Other checkable deposits -2.8 -3.8 -4.0 -3.9 -3.1 -3.6 -1.8 -1.9 -1.0 -.5 .1 .8 64 Trade credit 27.4 15.6 -21.2 -29.3 -42.0 -73.3 -44.3 40.8 -15.5 93.8 60.3 .4 65 Total identified to sectors as assets 2,091.1 2,897.9 2,988.3 3,236.7 4,111.2 3,841.8 3,869.3 3,846.8 4,744.3 4,236.0 5,398.0 3,761.8 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 E5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Financial Statistics • September 2000 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1998 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,723.8 14,456.3 15,260.3 16,298.4 15,967.4 16,298.4 16,613.9 16,791.8 17,113.5 17,453.5 17,686.5 By sector and instrument 2 Federal government 3,636.7 3,781.8 3,804.9 3,752.2 3,720.2 3,752.2 3,759.7 3,651.7 3,632.7 3,681.0 3,653.5 3 Treasury securities 3,608.5 3,755.1 3,778.3 3,723.7 3,694.7 3,723.7 3,731.6 3,623.4 3,604.5 3,652.8 3,625.8 4 Budget agency securities and mortgages 28.2 26.6 26.5 28.5 25.5 28.5 28.1 28.3 28.3 28.3 27.8 5 Nonfederal 10,087.1 10,674.6 11,455.5 12,546.2 12,247.2 12,546.2 12,854.2 13,140.1 13,480.7 13,772.5 14,033.0 By instrument 6 Commercial paper 157.4 156.4 168.6 193.0 216.9 193.0 223.9 232.4 239.3 230.3 260.8 7 Municipal securities and loans 1,293.5 1,296.0 1,367.5 1,464.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 8 Corporate bonds 1,344.1 1,460.4 1,610.9 1,829.6 1,781.3 1,829.6 1,898.1 1,970.0 2,020.7 2,059.5 2,106.7 9 Bank loans n.e.c 863.6 934.1 1,040.5 1,148.8 1,120.6 1,148.8 1,165.2 1,178.5 1,202.9 1,231.5 1,256.8 10 Other loans and advances 736.9 770.4 839.5 913.8 886.8 913.8 957.4 953.5 967.1 982.8 1,030.4 11 Mortgages 4,568.8 4,845.7 5,164.4 5,665.0 5,515.2 5,665.0 5,799.4 5,955.4 6,162.0 6,309.9 6,422.8 12 Home 3,510.4 3,718.8 3,970.7 4,354.0 4,245.9 4,354.0 4,446.5 4,559.7 4,689.6 4,786.8 4,860.2 13 Multifamily residential 265.5 278.7 287.1 305.9 299.3 305.9 315.0 323.3 334.8 346.9 355.3 14 Commercial 708.4 761.1 816.4 908.7 875.7 908.7 940.5 972.8 1,036.2 1,074.2 1,104.4 15 Farm 84.6 87.1 90.3 96.5 94.4 96.5 97.4 99.6 101.4 102.0 103.0 16 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,286.6 1,331.7 1,319.3 1,340.4 1,370.1 1,426.2 1,416.2 By borrowing sector 17 Household 4,782.8 5,104.9 5,441.9 5,920.1 5,761.5 5,920.1 6,000.0 6,142.4 6,308.8 6,464.4 6,532.8 18 Nonfinancial business 4,234.1 4,506.2 4,894.1 5,426.2 5,306.9 5,426.2 5,631.0 5,759.4 5,929.5 6,055.5 6,242.1 19 Corporate 2,936.6 3,120.2 3,386.8 3,801.5 3,712.2 3,801.5 3,983.3 4,083.1 4,220.0 4,314.4 4,472.9 20 Nonfarm noncorporate 1,152.4 1,236.1 1,351.1 1,460.9 1,431.6 1,460.9 1,485.2 1,510.2 1,540.9 1,572.0 1,599.9 21 Farm 145.1 149.9 156.1 163.8 163.1 163.8 162.4 166.1 168.6 169.1 169.4 22 State and local government 1,070.2 1,063.4 1,119.5 1,199.8 1,178.8 1,199.8 1,223.2 1,238.2 1,242.4 1,252.5 1,258.1 23 Foreign credit market debt held in United States 441.4 518.7 570.1 603.7 612.8 603.7 607.8 598.2 614.7 618.2 646.6 24 Commercial paper 56.2 67.5 65.1 72.9 74.0 72.9 77.2 70.1 81.8 89.2 101.6 25 Bonds 291.9 347.7 394.9 420.0 428.6 420.0 420.2 417.1 424.4 420.1 429.9 26 Bank loans n.e.c 34.6 43.7 52.1 58.9 56.4 58.9 59.1 60.5 58.8 59.4 63.3 27 Other loans and advances 58.8 59.8 58.0 52.0 53.8 52.0 51.3 50.5 49.7 49.5 51.8 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,165.3 14,975.0 15,830.5 16,902.1 16,580.2 16,902.1 17,221.7 17,390.0 17,728.2 18,071.8 18,333.1 Financial sectors 29 Total credit market debt owed by financial sectors 4,278.8 4,824.6 5,445.2 6,519.1 6,199.5 6,519.1 6,809.0 7,073.3 7,346.9 7,607.0 7,745.5 By instrument 30 Federal government-related 2,376.8 2,608.3 2,821.1 3,292.0 3,121.7 3,292.0 3,434.1 3,580.7 3,745.9 3,884.0 3,940.8 31 Government-sponsored enterprise securities 806.5 896.9 995.3 1,273.6 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.5 32 Mortgage pool securities 1,570.3 1,711.4 1,825.8 2,018.4 1,975.7 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 1,901.9 2,216.3 2,624.1 3,227.1 3,077.8 3,227.1 3,374.9 3,492.6 3,601.1 3,723.0 3,804.7 35 Open market paper 486.9 579.1 745.7 906.7 874.2 906.7 926.4 940.9 963.4 1,082.9 1,115.7 36 Corporate bonds 1,204.7 1,378.4 1,555.9 1,852.8 1,790.2 1,852.8 1,968.6 2,042.8 2,091.2 2,074.6 2,112.6 37 Bank loans n.e.c 51.4 64.0 77.2 107.2 103.2 107.2 104.1 106.8 105.2 92.9 93.6 38 Other loans and advances 135.0 162.9 198.5 288.7 246.2 288.7 299.1 328.6 365.4 395.8 404.4 39 Mortgages 24.1 31.9 46.8 71.6 64.0 71.6 76.6 73.6 75.9 76.7 78.5 By borrowing sector 40 Commercial banks 102.6 113.6 140.6 188.6 169.6 188.6 187.5 202.7 224.2 230.0 242.2 41 Bank holding companies 148.0 150.0 168.6 193.5 196.1 193.5 202.6 205.5 211.9 219.3 221.4 42 Savings institutions 115.0 140.5 160.3 212.4 186.6 212.4 226.9 241.6 255.4 260.4 266.9 43 Credit unions .4 .4 .6 1.1 1.0 1.1 1.5 1.8 2.5 3.4 2.6 44 Life insurance companies .5 1.6 1.8 2.5 2.0 2.5 3.3 4.0 4.3 3.2 3.0 45 Government-sponsored enterprises 806.5 896.9 995.3 1,273.6 1,146.0 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.5 46 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,975.7 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 47 Issuers of asset-backed securities (ABSs) 712.5 863.3 1,076.6 1,398.0 1,310.9 1,398.0 1,463.1 1,539.9 1,599.1 1,632.0 1,665.8 48 Brokers and dealers 29.3 27.3 35.3 42.5 39.4 42.5 34.8 30.4 34.6 25.3 36.4 49 Finance companies 483.9 529.8 554.5 597.5 589.4 597.5 614.4 639.2 628.5 659.9 670.4 50 Mortgage companies 16.5 20.6 16.0 17.7 16.9 17.7 16.5 17.8 16.3 17.8 17.1 51 Real estate investment trusts (REITs) 44.6 56.5 96.1 158.8 147.8 158.8 165.2 160.3 162.2 165.1 167.9 52 Funding corporations 248.6 312.7 373.7 414.4 417.9 414.4 459.1 449.5 462.0 506.6 510.9 All sectors 53 Total credit market debt, domestic and foreign ... 18,444.0 19,799.6 21,275.7 23,421.2 22,779.6 23,421.2 24,030.7 24,463.3 25,075.1 25,678.8 26,078.6 54 Open market paper 700.4 803.0 979.4 1,172.6 1,165.1 1,172.6 1,227.6 1,243.3 1,284.5 1,402.4 1,478.1 55 U.S. government securities 6,013.6 6,390.0 6,626.0 7,044.3 6,841.9 7,044.3 7,193.8 7,232.4 7,378.6 7,565.0 7,594.3 56 Municipal securities 1,293.5 1,296.0 1,367.5 1,464.3 1,439.9 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 57 Corporate and foreign bonds 2,840.7 3,186.5 3,561.7 4,102.4 4,000.0 4,102.4 4,286.9 4,429.9 4,536.2 4,554.2 4,649.2 58 Bank loans n.e.c 949.6 1,041.7 1,169.8 1,314.9 1,280.3 1,314.9 1,328.3 1,345.7 1,366.9 1,383.8 1,413.6 59 Other loans and advances 930.6 993.1 1,095.9 1,254.4 1,186.8 1,254.4 1,307.8 1,332.6 1,382.2 1,428.1 1,486.6 60 Mortgages 4,592.9 4,877.7 5,211.2 5,736.7 5,579.2 5,736.7 5,876.0 6,029.0 6,237.9 6,386.6 6,501.3 61 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,286.6 1,331.7 1,319.3 1,340.4 1,370.1 1,426.2 1,416.2 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1998 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Q3 Q4 Ql Q2 Q3 Q4 Ql CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,444.0 19,799.6 21,275.7 23,421.2 22,779.6 23,421.2 24,030.7 24,463.3 25,075.1 25,678.8 26,078.6 2 Domestic nonfederal nonfinancial sectors 2,846.3 2,903.6 2,816.2 2,862.6 2,911.9 2,862.6 2,953.6 3,006.2 3,064.9 3,118.0 3,072.7 3 Household 1,885.0 1,990.6 1,917.9 1,815.8 1,927.2 1,815.8 1,885.2 1,907.8 1,962.7 1,998.8 1,963.6 4 Nonfinancial corporate business 280.4 270.2 257.5 271.5 245.2 271.5 259.8 266.7 283.2 298.9 285.5 5 Nonfarm noncorporate business 42.3 38.0 35.9 35.9 35.9 35.9 36.6 36.9 37.1 37.5 38.1 6 State and local governments 638.6 604.8 605.0 739.4 703.6 739.4 772.1 794.8 781.9 782.8 785.4 7 Federal government 202.7 195.3 200.4 213.9 210.9 213.9 218.1 219.8 255.6 256.4 259.7 8 Rest of the world 1,531.1 1,926.6 2,256.8 2,534.3 2,412.2 2,534.3 2,601.8 2,609.8 2,706.2 2,737.9 2,826.5 9 Financial sectors 13,863.9 14,774.1 16,002.3 17,810.4 17,244.6 17,810.4 18,257.1 18,627.5 19,048.5 19,566.5 19,919.7 10 Monetary authority 380.8 393.1 431.4 452.5 446.5 452.5 466.0 485.1 489.3 478.1 501.9 11 Commercial banking 3,520.1 3,707.7 4,031.9 4,335.7 4,195.7 4,335.7 4,338.4 4,383.4 4,488.3 4,644.0 4,724.7 12 U.S.-chartered banks 3,056.1 3,175.8 3,450.7 3,761.2 3,616.2 3,761.2 3,782.9 3,847.6 3,944.3 4,078.9 4,171.2 1.3 Foreign banking offices in United States 412.6 475.8 516.1 504.2 510.1 504.2 487.8 465.7 475.3 484.1 481.9 14 Bank holding companies 18.0 22.0 27.4 26.5 28.3 26.5 25.0 25.1 22.0 32.7 22.0 15 Banks in U.S.-affiliated areas 33.4 34.1 37.8 43.8 41.1 43.8 42.7 45.0 46.7 48.3 49.7 16 Savings institutions 913.3 933.2 928.5 964.8 939.3 964.8 990.8 1,011.4 1,030.8 1,033.4 1,044.0 17 Credit unions 263.0 288.5 305.3 324.2 320.5 324.2 330.2 341.0 348.5 351.7 360.1 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 197.5 194.1 192.2 190.1 188.0 185.7 183.3 19 Life insurance companies 1,587.5 1,657.0 1,751.1 1,828.0 1,810.6 1,828.0 1,853.5 1,869.6 1,880.4 1,881.7 1,903.8 20 Other insurance companies 468.7 491.2 515.3 535.7 518.8 535.7 530.8 537.5 533.9 532.0 532.0 7.1 Private pension funds 716.9 769.2 834.7 953.4 909.8 953.4 968.5 1,006.0 1,017.4 1,050.1 1,065.7 22 State and local government retirement funds 531.0 568.2 632.0 698.0 685.7 698.0 717.2 724.0 733.6 748.6 745.3 73 Money market mutual funds 545.5 634.3 721.9 965.9 869.9 965.9 1,036.2 1,001.8 1,049.7 1,147.8 1,217.1 74 Mutual funds 771.3 820.2 901.1 1,025.9 1,005.9 1,025.9 1,050.8 1,083.8 1,083.1 1,074.0 1,055.0 75 Closed-end funds 96.4 101.1 98.3 102.8 101.7 102.8 103.6 104.3 105.1 105.9 106.7 26 Government-sponsored enterprises 750.0 807.9 902.2 1,163.0 1,055.4 1,163.0 1,201.9 1,267.0 1,338.6 1,397.5 1,422.2 27 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 1,975.7 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 78 Asset-backed securities issuers (ABSs) 653.4 773.9 937.7 1,219.4 1,138.1 1,219.4 1,280.1 1,352.7 1,409.8 1,435.3 1,463.9 79 Finance companies 526.2 544.5 566.4 618.4 592.7 618.4 639.9 660.9 678.2 713.3 747.0 30 Mortgage companies 33.0 41.2 32.1 35.3 33.8 35.3 33.0 35.6 32.5 35.6 34.1 31 Real estate investment trusts (REITs) 26.0 30.4 50.6 45.5 55.7 45.5 45.9 45.3 44.7 42.9 38.8 37 Brokers and dealers 183.4 167.7 182.6 189.4 245.9 189.4 211.4 162.9 167.0 158.6 200.9 33 Funding corporations 87.4 101.4 146.5 140.0 145.7 140.0 154.4 182.2 183.5 258.1 250.9 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,444.0 19,799.6 21,275.7 23,421.2 22,779.6 23,421.2 24,030.7 24,463.3 25,075.1 25,678.8 26,078.6 Other liabilities 35 Official foreign exchange 63.7 53.7 48.9 60.1 54.5 60.1 53.6 50.9 52.1 50.1 49.4 36 Special drawing rights certificates 10.2 9.7 9.2 9.2 9.2 9.2 8.2 8.2 7.2 6.2 6.2 37 Treasury currency 18.2 18.3 18.3 18.3 18.8 18.3 18.3 18.8 19.3 18.3 18.8 38 Foreign deposits 418.8 516.1 618.8 639.9 651.7 639.9 671.8 696.6 710.4 707.2 720.2 39 Net interbank liabilities 290.7 240.8 219.4 189.0 198.9 189.0 182.0 203.5 196.0 197.4 152.7 40 Checkable deposits and currency 1,229.3 1,245.1 1,286.6 1,334.2 1,282.3 1,334.2 1,311.4 1,354.1 1,354.9 1,485.8 1,393.5 41 Small time and savings deposits 2,279.7 2,377.0 2,474.1 2,626.5 2,553.8 2,626.5 2,637.6 2,644.6 2,665.9 2,670.9 2,728.5 47 Large time deposits 476.9 590.9 713.4 805.5 776.5 805.5 804.3 809.0 837.5 935.8 966.1 43 Money market fund shares 745.3 891.1 1,048.7 1,334.2 1,249.7 1,334.2 1,416.0 1,398.1 1,449.6 1,584.8 1,671.2 44 Security repurchase agreements 660.0 701.5 822.4 913.7 960.5 913.7 980.3 970.8 999.3 1,085.4 1,157.0 45 Mutual fund shares 1,852.8 2,342.4 2,989.4 3,610.5 3,137.3 3,610.5 3,758.4 4,049.1 3,932.1 4,552.4 4,751.9 46 Security credit 305.7 358.1 469.1 572.3 573.6 572.3 552.7 589.3 593.2 665.9 792.7 47 Life insurance reserves 566.2 610.6 665.0 718.3 703.5 718.3 730.9 749.8 766.2 779.3 791.6 48 Pension fund reserves 5,766.9 6,642.6 7,895.8 9,097.6 8,123.6 9,097.6 9,275.8 9,731.4 9,479.4 10,386.8 10,395.6 49 Trade payables 1,698.0 1,812.8 1,943.3 1,970.7 1,958.4 1,970.7 1,972.9 2,032.7 2,092.8 2,144.7 2,153.7 50 Taxes payable 107.6 123.6 139.2 151.0 153.3 151.0 157.9 160.5 163.6 165.0 174.2 51 Investment in bank personal trusts 803.0 871.7 942.5 1,001.0 908.6 1,001.0 1,012.5 1,059.8 998.3 1,116.6 1,135.2 52 Miscellaneous 5,645.8 6,017.1 6,333.6 6,868.7 6,806.7 6,868.7 6,843.5 6,954.3 6,965.4 6,821.6 7,169.1 53 Total liabilities 41,382.7 45,222.6 49,913.2 55,341.8 52,900.6 55,341.8 56,418.8 57,944.8 58,358.3 61,053.1 62,306.1 Financial assets not included in liabilities ( + ) 54 Gold and special drawing rights 22.1 21.4 21.1 21.6 21.2 21.6 20.7 20.8 21.3 21.4 21.4 55 Corporate equities 8,495.7 10,255.8 13,181.4 15,413.4 13,121.2 15,413.4 15,893.6 17,018.0 16,008.3 18,876.7 19,557.9 56 Household equity in noncorporate business 3,672.2 3,878.2 4,149.8 4,387.2 4,322.3 4,387.2 4,442.5 4,499.8 4,557.5 4,602.6 4,639.6 Liabilities not identified as assets ( — ) 57 Treasury currency -5.8 -6.7 -7.3 -8.0 -7.2 -8.0 -8.4 -8.2 -8.2 -9.7 -9.6 58 Foreign deposits 360.2 431.4 532.9 545.9 564.1 545.9 561.4 582.9 585.3 593.4 591.3 59 Net interbank transactions -9.0 -10.6 -32.2 -27.0 -15.4 -27.0 -11.3 -10.6 -13.0 -25.0 -13.7 60 Security repurchase agreements 86.4 90.9 153.0 207.2 216.7 207.2 263.5 275.4 293.9 238.9 386.0 61 Taxes payable 62.4 76.7 92.3 101.5 100.4 101.5 88.9 110.2 92.5 93.1 82.8 62 Miscellaneous -1,241.8 -1,692.7 -2,075.3 -2,659.9 -2,338.1 -2,659.9 -2,882.3 -2,998.6 -3,375.9 -3,717.7 -3,554.4 Floats not included in assets (-) 63 Federal government checkable deposits 3.1 -1.6 -8.1 -3.9 -12.0 -3.9 -7.2 -12.4 -10.2 -9.9 -6.5 64 Other checkable deposits 34.2 30.1 26.2 23.1 15.7 23.1 18.9 22.1 14.5 22.3 18.7 65 Trade credit 198.2 176.7 137.0 94.3 31.3 94.3 48.7 29.2 49.7 139.2 83.9 66 Total identified to sectors as assets 54,084.9 60,283.8 68,447.0 76,890.6 71,809.7 76,890.6 78,703.5 81,493.2 81,316.7 87,229.1 88,946.4 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.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 • September 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 Oct. Nov. Dec. Jan. Feb. Mar.r Apr/ May Junep 1 Industrial production1 127.1 132.4 137.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.3 144.6 Market groupings 2 Products, total 119.6 123.7 126.5 128.5 128.0 128.5 129.7 130.1 130.3 131.1 131.3 131.2 3 Final, total 121.1 125.4 128.0 130.2 129.8 130.3 131.6 131.8 132.0 132.8 133.2 133.4 4 Consumer goods 115.1 116.2 116.9 118.2 117.6 118.1 118.8 118.7 118.0 118.6 118.6 118.4 Equipment 132.1 142.7 148.9 151.2 151.4 151.8 154.2 155.0 156.9 158.2 159.2 160.1 6 Intermediate 115.3 118.8 122.1 123.2 122.4 123.1 123.7 124.8 125.1 125.6 125.5 124.5 / Materials 139.0 146.5 154.8 156.8 158.8 159.7 160.5 161.2 163.1 164.9 166.6 167.8 Industry groupings 8 Manufacturing 130.1 136.4 142.3 144.2 145.0 145.6 146.7 147.2 148.4 149.3 150.0 150.5 9 Capacity utilization, manufacturing (percent)2.. 82.4 80.9 79.8 80.2 80.3 80.3 80.7 80.7 81.1 81.3 81.3 81.3 10 Construction contracts3 144.1 160.9 176.9 173.0 175.0 173.0 173.0 177.0 188.0 177.0 169.0 n.a. 11 Nonagricultural employment, total4 120.3 123.4 126.2 127.0 127.3 127.5 127.9 128.0 128.5 128.9 129.1 129.1 12 Goods-producing, total 101.2 102.7 102.3 103.3 103.5 103.6 104.1 103.9 104.3 104.3 104.1 104.2 13 Manufacturing, total 98.3 98.8 97.0 97.3 97.3 97.3 97.4 97.2 97.3 97.3 97.3 97.3 14 Manufacturing, production workers 99.6 99.8 97.8 98.1 98.1 98.1 98.2 98.0 97.9 98.0 97.9 97.9 15 Service-producing 126.5 130.0 133.8 134.6 134.9 135.2 135.5 135.7 136.2 136.8 137.0 137.0 16 Personal income, total 175.4 185.7 196.6 200.5 201.3 201.9 203.2r 204.3r 205.8 207.0 207.8 n.a. 17 Wages and salary disbursements 171.3 184.4 197.0 200.7 201.3 202.6 204. r 205. lr 206.3 207.9 208.0 n.a. 18 Manufacturing 144.6 152.4 156.9 159.7 158.8 158.8 160.0r 160.4r 160.9 162.5 161.7 n.a. 19 Disposable personal income5 172.9 181.7 191.9 195.6 196.4 196.7 197.6r 198.5r 199.9 200.9 201.7 n.a. 20 Retail sales5 169.8 178.4 194.5 198.8 200.8 204.0 205.5 208.3 209.3 208.3 208.9 210.0 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 168.2 168.3 168.3 168.7 169.7 171.1 171.2 171.3 172.3 22 Producer finished goods (1982=100) 131.8 130.7 133.0 135.1 134.9 134.9 134.7 136.0 137.0 137.0 137.5 138.4 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 Nov. Dec. Jan. Feb. Mar. Apr/ May Junep HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 139,834 140,108 140,910 141,165 140,867 141,230 140,489 140,762 Employment 7 126,159 128,085 130,207 130,788 131,141 131,850 131,954 131,801 132,351 131,417 131,858 3 Agriculture 3,399 3,378 3,281 3,310 3,279 3,371 3,408 3,359 3,355 3,298 3,321 Unemployment 4 6,739 6,210 5,880 5,736 5,688 5,689 5,804 5,708 5,524 5,774 5,583 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.1 4.1 4.0 4.1 4.1 3.9 4.1 4.0 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 129,788 130,038 130,387 130,482 131,009 131,419 131,590 131,601 7 Manufacturing 18,675 18,772 18,431 18,484 18,479 18,495 18,473 18,476 18,492 18,480 18,488 8 Mining 596 590 535 527 530 530 533 536 539 537 539 9 Contract construction 5,691 5,985 6,273 6,516 6,552 6,652 6,618 6,726 6,694 6,670 6,673 10 Transportation and public utilities 6,408 6,600 6,792 6,898 6,911 6,925 6,937 6,953 6,970 6,961 6,979 11 Trade 28,614 29,127 29,792 29,882 29,938 29,978 29,989 30,060 30,252 30,128 30,161 1? Finance 7,109 7,407 7,632 7,604 7,613 7,612 7,624 7,621 7,610 7,599 7,593 13 Service 36,040 37,526 39,000 39,606 39,707 39,844 39,914 40,090 40,195 40,212 40,360 14 Government 19,557 19,819 20,161 20,271 20,308 20,351 20,394 20,547 20,667 21,003 20,808 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 2000 1999 2000 1999 2000 SSeerriieess Q3 Q4 Qlr Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 137.7 139.5 141.7 144.2 170.7 172.3 173.8 175.5 80.7 81.0 81.5r 82.1 2 Manufacturing 142.5 144.9 147.4 149.9 178.7 180.6 182.4 184.4 79.7 80.3 80.8 81.3 3 Primary processing3 123.4 125.4 126.0 125.7 149.0 149.8 150.4 150.9 82.8 83.7 83.8r 83.3 4 Advanced processing4 152.5 155.2 158.7 162.7 193.7 196.1 198.7 201.6 78.7 79.1 79.9 80.7 Durable goods 174.4 177.4 182.5 188.2 217.6 221.0 224.8 229.1 80.2 80.3 81.2 82.2 6 Lumber and products 120.5 120.6 121.3 118.5 147.4 148.4 149.0 149.1 81.7 81.2 81.4r 79.5 7 Primary metals 128.7 130.9 132.4 133.2 149.3 150.1 150.7 151.5 86.2 87.2 87.9r 87.9 8 Iron and steel 126.6 129.1 130.9 131.7 151.3 152.5 153.5 154.4 83.7 84.6 85.3 85.3 9 Nonferrous 131.2 133.3 134.3 135.0 147.0 147.2 147.5 148.0 89.3 90.5 91.0 91.2 10 Industrial machinery and equipment 232.3 239.9 252.3 263.3 285.3 295.8 306.1 315.2 81.4 81.1 82.4' 83.5 11 Electrical machinery 400.9 419.0 458.1 507.8 498.5 514.6 537.2 570.7 80.4 81.4 85.3 89.0 12 Motor vehicles and parts 153.3 154.7 155.2 157.0 184.9 185.0 185.7 186.7 82.9 83.6 83.6 84.1 13 Aerospace and miscellaneous transportation equipment . . . 93.8 89.9 88.0 86.8 126.2 125.8 125.2 124.5 74.3 71.5 70.3r 6699..77 14 Nondurable goods 111.5 113.4 113.7 113.4 139.9 140.3 140.5 140.6 79.7 80.9 80.9 80.6 15 Textile mill products 111.6 111.4 111.3 109.6 131.6 131.8 131.9 131.9 84.8 84.5 84.4 83.0 16 Paper and products 116.0 117.9 117.0 117.0 135.3 136.1 136.6 136.7 85.7 86.6 85.6r 85.6 17 Chemicals and products 117.0 121.8 121.7 120.6 150.7 151.0 151.4 151.7 77.6 80.7 80.4 79.5 18 Plastics materials 124.2 132.3 134.0 131.6 138.4 139.6 140.8 141.9 89.7 94.8 95.2 92.8 19 Petroleum products 114.6 114.1 115.8 117.1 122.7 123.1 123.4 123.6 93.4 92.7 93.9 94.8 20 Mining 98.2 99.5 100.4 101.8 120.2 120.2 119.8 119.3 81.7 82.8 83.8 85.3 ?1 Utilities 118.4 113.2 113.6 115.8 127.8 128.2 128.6 129.0 92.7 88.3 88.3r 89.7 22 Electric 120.8 116.5 115.5 118.5 125.6 126.1 126.6 127.1 96.2 92.4 91.2r 93.2 1973 1975 Previous cycle5 Latest cycle6 1999 2000 High Low High Low High Low June Jan. Feb. Mar.r Apr.r May Junep Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.5 81.4 81.5 81.7 82.1 82.2 82.1 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.6 80.7 80.7 81.1 81.3 81.3 81.3 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 82.7 83.9 83.7 83.7 83.8 83.3 82.8 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 78.6 79.7 79.7 80.2 80.5 80.8 80.9 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 79.9 81.0 80.9 81.6 82.0 82.2 82.3 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 83.3 82.0 81.3 80.8 80.9 79.9 77.7 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 85.6 88.2 86.9 88.5 88.8 87.9 87.1 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 82.8 85.4 84.1 86.4 86.1 85.3 84.5 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 89.1 91.7 90.3 91.1 92.2 91.1 90.4 10 Industrial machineiy and equipment 96.0 74.3 93.2 64.0 85.4 72.3 81.8 81.8 82.5 83.0 83.4 83.5 83.6 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 78.7 84.0 84.9 86.9 88.2 89.3 89.4 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 82.7 84.5 82.6 83.6 83.9 84.0 84.5 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 75.2 70.6 69.9 70.4 69.9 69.5 69.6 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 79.7 80.8 81.0 80.9 80.8 80.6 80.5 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 84.2 84.5 84.0 84.6 84.4 82.4 82.3 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 85.9 85.7 85.3 85.9 86.3 85.5 85.0 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 77.3 80.4 80.8 80.0 79.4 79.6 79.5 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 89.5 91.9 102.4 91.3 93.4 93.0 92.0 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 92.6 91.8 93.7 96.1 94.8 95.2 94.3 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 80.7 83.1 83.5 84.7 85.0 84.9 85.9 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 92.1 89.2 89.7 86.1 89.1 91.3 88.9 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 95.5 91.8 91.7 90.3 92.9 94.5 92.2 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data 3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass; latest historical revision of the industrial production index and the capacity utilization rates primary metals; and fabricated metals. was released in November 1999. The recent annual revision is described in an article in the 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing March 2000 issue of the Bulletin. For a description of the methods of estimating industrial and publishing; chemical products such as drugs and toiletries; agricultural chemicals; leather production and capacity utilization, see "Industrial Production and Capacity Utilization: and products; machinery; transportation equipment; instruments; and miscellaneous manufac- Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February tures. 1997), pp. 67-92, and the references cited therein. For details about the construction of 5. Monthly highs, 1978-80; monthly lows, 1982. individual industrial production series, see "Industrial Production: 1989 Developments and 6. Monthly highs, 1988-89; monthly lows, 1990-91. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • September 2000 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp p p r o o r - - 1 a 9 v 9 g 9 . tion June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar.r Apr.1" May Junep Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.1 136.6 137.4 137.7 138.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.3 144.6 2 Products 60.5 126.5 126.8 126.9 127.6 127.6 128.5 128.0 128.5 129.7 130.1 130.3 131.1 131.3 131.2 3 Final products 46.3 128.0 128.3 128.6 129.5 129.1 130.2 129.8 130.3 131.6 131.8 132.0 132.8 133.2 133.4 4 Consumer goods, total 29.1 116.9 117.0 116.8 117.6 117.1 118.2 117.6 118.1 118.8 118.7 118.0 118.6 118.6 118.4 Durable consumer goods 6.1 152.6 154.0 153.4 155.5 153.5 157.4 154.4 155.7 158.9 156.4 156.8 159.1 157.6 158.4 6 Automotive products 2.6 144.7 147.4 143.7 150.6 145.5 147.9 146.2 144.4 149.1 145.4 146.0 148.7 147.7 150.2 7 Autos and trucks 1.7 151.8 157.5 148.9 162.9 152.8 155.1 154.3 148.7 155.0 150.7 151.9 155.8 155.5 158.9 8 Autos, consumer .9 102.6 101.8 102.4 105.0 105.5 103.9 107.2 99.8 105.4 105.0 103.1 107.4 108.7 106.7 y Trucks, consumer .7 202.4 214.2 197.2 221.6 201.9 207.8 203.6 199.0 206.3 198.3 202.3 206.2 204.4 212.7 10 Auto parts and allied goods .... .9 133.9 132.5 135.3 132.8 134.4 136.7 133.8 137.1 139.6 136.9 136.6 137.7 135.8 137.1 li Other 3.5 158.6 158.8 161.1 158.7 159.7 165.0 160.7 164.9 166.6 165.4 165.5 167.4 165.5 164.7 12 Appliances, televisions, and air conditioners 1.0 324.3 319.0 329.9 319.0 326.3 363.1 348.4 357.6 361.6 362.8 367.3 370.0 369.9 370.7 13 Carpeting and furniture .8 121.7 121.0 124.1 122.1 124.1 124.8 117.4 123.0 126.9 122.6 122.6 125.5 122.6 122.0 14 Miscellaneous home goods 1.6 114.7 116.2 115.9 115.4 114.4 114.8 115.0 116.7 116.6 116.6 115.9 116.7 115.4 114.3 15 Nondurable consumer goods 23.0 108.7 108.4 108.3 108.9 108.7 109.3 109.1 109.5 109.7 110.0 109.1 109.4 109.7 109.3 16 Foods and tobacco 10.3 107.3 107.3 106.7 106.5 106.2 106.8 107.3 107.4 107.6 107.9 107.8 108.2 107.7 107.7 17 Clothing 2.4 90.6 90.2 89.2 90.1 89.9 89.4 90.6 89.1 89.3 89.6 89.2 89.6 88.7 87.0 18 Chemical products 4.5 121.8 120.2 119.4 122.7 120.9 123.1 126.0 126.5 125.8 125.1 125.8 124.4 125.0 125.8 iy Paper products 2.9 102.3 101.5 102.0 103.2 104.7 106.3 105.1 103.1 104.3 104.5 103.0 103.0 104.1 105.0 20 Energy 2.9 114.0 115.3 118.6 116.6 117.6 114.5 106.7 112.0 113.0 114.8 108.8 111.3 114.4 110.4 21 Fuels .8 111.3 109.9 111.1 110.0 112.0 112.4 110.1 111.7 108.4 111.5 114.8 112.3 113.5 112.2 22 Residential utilities 2.1 115.0 117.4 121.7 119.3 119.7 114.9 104.3 111.6 114.6 115.8 105.2 110.2 114.3 108.9 23 Equipment 17.2 148.9 148.3 149.3 150.5 150.2 151.2 151.4 151.8 154.2 155.0 156.9 158.2 159.2 160.1 24 Business equipment 13.2 171.6 171.2 172.6 173.9 173.7 174.8 175.0 175.5 179.4 180.6 183.0 185.1 186.2 187.0 25 Information processing and related 5.4 248.6 248.2 253.8 259.9 261.3 265.6 266.7 270.1 277.9 281.2 285.7 290.5 295.1 298.8 26 Computer and office equipment 1.1 840.1 830.2 851.9 892.8 926.9 950.5 970.0 985.6 1,015.3 1,059.5 1,093.5 1,126.1 1,156.4 1,184.5 2/ Industrial 4.0 135.3 133.7 135.4 133.6 133.9 134.9 134.6 135.0 138.4 140.1 140.0 140.1 140.6 140.0 28 Transit 2.5 126.9 128.2 127.5 128.1 124.0 122.3 121.2 118.5 119.9 117.6 118.7 119.1 117.3 116.0 2y Autos and trucks 1.2 131.4 132.2 131.2 135.3 132.0 133.4 134.2 127.8 134.3 134.0 133.9 136.9 136.4 134.7 30 Other 1.3 131.4 130.2 123.8 123.2 126.4 125.1 127.5 128.1 126.8 128.6 136.4 141.2 140.3 142.7 31 Defense and space equipment 3.3 74.4 74.6 74.5 74.7 73.6 73.7 73.0 72.4 70.6 69.7 69.8 69.2 69.5 70.0 32 Oil and gas well drilling .6 106.8 100.1 102.0 107.1 111.3 115.7 121.3 124.3 125.5 129.9 130.6 129.0 135.0 138.7 33 Manufactured homes .2 155.2 158.9 151.5 151.3 144.4 142.6 139.3 138.3 135.4 129.6 129.3 123.4 122.0 120.0 34 Intermediate products, total 14.2 122.1 121.7 121.5 121.7 122.6 123.2 122.4 123.1 123.7 124.8 125.1 125.6 125.5 124.5 35 Construction supplies 5.3 133.4 132.6 133.2 132.9 134.1 135.4 134.3 134.9 136.4 137.5 139.0 139.5 138.3 137.0 36 Business supplies 8.9 115.3 115.3 114.6 115.1 115.8 115.9 115.2 116.0 116.1 117.2 116.9 117.3 118.0 117.0 37 Materials 39.5 154.8 153.1 155.0 154.6 155.7 156.8 158.8 159.7 160.5 161.2 163.1 164.9 166.6 167.8 38 Durable goods materials 20.8 198.9 197.2 200.3 199.9 202.3 203.4 206.7 208.8 211.7 213.1 217.5 220.4 224.1 226.9 3y Durable consumer parts 4.0 150.7 150.5 153.9 147.2 156.0 153.7 154.8 155.0 156.0 153.1 154.7 152.7 155.0 156.3 40 Equipment parts 7.6 360.9 355.2 364.6 369.0 371.4 377.5 386.8 394.9 404.9 418.0 435.4 451.1 466.4 479.7 41 Other 9.2 131.3 130.6 131.1 131.6 131.2 131.7 133.4 134.0 134.8 134.1 134.7 134.9 134.9 134.5 42 Basic metal materials 3.1 121.8 122.6 122.8 123.3 122.1 123.5 125.6 126.3 126.2 124.2 126.3 127.5 126.7 125.8 43 Nondurable goods materials 8.9 114.6 114.2 114.5 114.4 114.7 117.4 119.1 118.7 117.0 117.6 116.8 116.6 116.5 115.9 44 Textile materials 1.1 101.0 101.2 101.2 101.1 100.3 102.3 103.3 100.9 99.3 101.9 102.7 100.6 99.9 99.8 45 Paper materials 1.8 117.0 117.7 116.3 116.3 118.6 118.5 119.3 118.5 117.9 116.6 118.3 119.8 117.7 117.6 46 Chemical materials 3.9 117.3 116.9 117.7 117.4 117.7 122.0 125.1 124.2 122.1 124.5 121.5 121.3 122.3 121.2 47 Other 2.1 113.5 112.0 113.0 113.2 112.5 114.9 114.9 116.8 114.8 112.7 113.3 112.6 112.2 111.9 48 Energy materials 9.7 101.7 101.6 102.9 102.3 101.8 101.5 101.6 101.4 101.2 100.5 100.6 102.5 102.5 102.5 4y Primary energy 6.3 99.2 98.9 100.2 100.3 99.6 98.8 100.1 99.5 98.3 96.7 98.0 100.5 100.4 100.8 50 Converted fuel materials 3.3 107.0 106.8 108.0 106.1 106.1 106.5 104.1 104.8 106.8 108.2 105.5 106.1 106.4 105.4 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.0 136.4 137.3 137.4 138.0 138.9 139.3 140.2 141.0 141.6 142.4 143.5 144.3 144.6 52 Total excluding motor vehicles and parts 95.1 136.4 135.9 136.7 137.1 137.2 138.3 138.7 139.5 140.4 141.1 141.8 143.0 143.8 144.0 53 Total excluding computer and office equipment 98.2 131.1 130.6 131.2 131.4 131.5 132.4 132.7 133.2 134.1 134.4 135.0 136.0 136.6 136.7 54 Consumer goods excluding autos and trucks . 27.4 115.0 114.8 115.0 115.2 115.2 116.3 115.6 116.4 116.9 117.0 116.2 116.6 116.6 116.3 55 Consumer goods excluding energy 26.2 117.3 117.2 116.6 117.7 117.1 118.7 118.8 118.8 119.5 119.1 119.0 119.4 119.1 119.4 56 Business equipment excluding autos and trucks 12.0 176.2 175.7 177.4 178.3 178.5 179.5 179.7 181.1 184.5 186.0 188.7 190.7 191.9 193.1 57 Business equipment excluding computer and office equipment 12.1 143.8 143.6 144.4 144.6 143.6 144.0 143.7 143.8 146.8 146.9 148.4 149.6 149.8 149.9 58 Materials excluding energy 29.8 172.0 169.5 171.6 171.3 173.0 174.7 177.4 178.6 179.8 181.0 183.5 185.3 187.7 189.3 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 SIC pro- Group code portion June July Aug Sept. Apr.r May Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.1 136.6 137.4 137.7 138.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.3 144.6 60 Manufacturing 85.4 142.3 141.4 142.0 142.5 142.9 144.2 145.0 145.6 146.7 147.2 148.4 149.3 150.0 150.5 61 Primary processing 26.5 123.3 122.7 123.3 123.4 123.6 124.8 125.6 125.9 126.0 125.9 126.1 126.3 125.7 125.1 62 Advanced processing 58.9 151.8 151.2 151.8 152.6 153.1 154.5 155.2 155.9 157.5 158.4 160.1 161.5 162.8 163.9 63 Durable goods 45.0 172.8 172.2 173.8 174.4 175.0 176.5 177.4 178.4 181.0 181.8 184.6 186.7 188.4 189.7 64 Lumber and products "24 2.0 121.6 122.2 121.5 120.2 119.7 120.5 119.8 121.4 122.1 121.2 120.5 120.6 119.1 115.8 65 Furniture and fixtures 25 1.4 125.5 124.4 125.7 126.4 127.9 127.0 125.2 128.6 126.9 126.8 126.3 127.0 128.0 127.0 66 Stone, clay, and glass products 32 2.1 130.5 127.8 129.3 130.2 129.6 131.2 132.4 131.4 130.9 131.7 132.7 132.3 132.4 131.7 67 Primary metals 33 3.1 126.6 127.4 128.0 129.6 128.3 129.0 131.1 132.8 132.8 130.9 133.6 134.3 133.1 132.2 68 Iron and steel 331,2 1.7 123.2 124.5 126.2 127.6 125.9 124.9 130.7 131.7 130.8 129.1 132.9 132.7 131.8 130.7 69 Raw steel 331PT .1 113.3 110.7 111.1 115.9 112.4 121.8 124.0 124.2 123.1 118.7 121.1 124.1 123.9 122.7 70 Nonferrous 333-6,9 1.4 130.9 130.8 130.2 132.1 131.4 134.0 131.7 134.1 135.2 133.2 134.5 136.3 134.8 134.0 71 Fabricated metal products .. 34 5.0 128.7 128.3 128.6 128.5 128.4 128.8 129.7 129.0 130.8 130.4 130.6 131.0 131.2 131.4 72 Industrial machinery and equipment 35 8.0 230.1 228.2 230.0 231.4 235.5 238.3 239.7 241.8 247.7 252.6 256.7 260.5 263.3 266.2 73 Computer and office equipment 357 1.8 1,061.4 1,048.2 1,075.1 1,123.7 1,167.5 1,196.6 1,222.8 1,244.6 1,284.5 1,342.2 1,389.6 1,428.4 1,466.3 1,502.5 74 Electrical machinery 36 7.3 390.2 384.2 399.2 401.3 402.1 412.6 418.1 426.4 443.5 455.6 475.2 492.0 509.6 521.8 75 Transportation equipment. . . 37 9.5 122.4 123.5 122.9 122.9 123.1 122.3 121.8 120.4 121.7 119.6 120.9 120.8 120.7 121.3 76 Motor vehicles and parts . 371 4.9 151.0 152.9 152.2 152.2 155.6 155.7 155.8 152.7 156.6 153.4 155.6 156.2 156.7 158.0 77 Autos and light trucks . 371PT 2.6 137.8 142.0 135.8 146.8 139.4 140.7 141.0 135.0 141.0 137.7 138.1 142.1 142.2 144.2 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.9 95.2 94.7 94.7 92.2 90.6 89.5 89.7 88.6 87.5 88.0 8877..22 8866..66 8866..55 79 Instruments 38 5.4 116.5 117.0 117.2 117.7 117.2 118.3 118.9 119.7 118.4 117.3 117.4 117.4 117.5 118.4 80 Miscellaneous 39 1.3 124.7 124.5 125.2 125.2 125.1 125.0 125.0 126.4 126.9 125.5 124.8 125.2 124.9 124.4 81 Nondurable goods 40.4 111.8 111.3 111.0 111.5 111.8 113.0 113.6 113.7 113.5 113.8 113.6 113.6 113.4 113.2 82 Foods " ' 20 9.4 110.1 110.0 108.9 108.9 109.6 110.1 110.3 110.0 109.8 110.7 111.1 111.5 111.0 111.3 83 Tobacco products 21 1.6 94.3 94.5 96.0 94.8 90.9 91.9 93.1 94.7 96.7 94.5 91.4 92.7 92.5 91.0 84 Textile mill products 22 1.8 110.9 110.8 112.3 111.7 110.8 112.7 111.4 110.1 111.5 110.8 111.6 111.4 108.7 108.6 85 Apparel products 23 2.2 90.7 90.7 89.8 89.2 89.0 89.1 89.1 89.1 89.0 89.7 89.5 90.1 88.5 86.7 86 Paper and products 26 3.6 116.2 115.7 115.0 115.8 117.2 118.0 118.1 117.7 117.1 116.5 117.3 118.0 116.8 116.2 87 Printing and publishing .... 27 6.7 104.4 103.5 102.8 103.6 104.6 106.0 105.7 105.3 105.3 105.7 105.9 105.6 106.2 106.1 88 Chemicals and products .... 28 9.9 117.5 116.3 115.8 117.7 117.4 119.8 122.7 122.9 121.6 122.4 121.2 120.3 120.8 120.8 89 Petroleum products 29 1.4 114.7 113.4 115.1 114.1 114.6 114.5 112.8 114.9 113.2 115.6 118.7 117.1 117.7 116.6 90 Rubber and plastic products . 30 3.5 137.7 136.4 138.0 137.6 139.3 138.9 139.3 141.4 142.2 141.2 140.5 141.6 140.6 140.9 91 Leather and products 31 .3 69.8 71.3 69.1 70.2 69.5 68.2 67.7 65.4 68.1 66.2 64.6 63.7 64.2 63.1 92 Mining 6.9 98.0 97.1 97.8 98.5 98.3 99.2 99.7 99.5 99.7 100.0 101.3 101.5 101.3 102.4 93 Metal "lO .5 97.1 98.9 96.2 93.0 91.4 94.2 94.5 95.2 95.5 94.1 92.7 93.9 92.6 92.0 94 Coal 12 1.0 108.1 107.0 110.0 110.7 109.4 108.8 110.0 109.5 106.3 101.9 109.3 112.0 110.1 114.4 95 Oil and gas extraction 13 4.8 92.5 91.4 92.3 93.2 93.0 94.0 94.5 94.6 95.7 96.2 96.0 96.0 96.6 97.6 96 Stone and earth minerals 14 .6 124.4 123.3 120.5 123.0 125.5 126.3 125.0 122.4 120.8 127.5 133.0 131.1 127.8 126.5 97 Utilities 7.7 115.6 117.4 119.8 117.8 117.7 115.2 110.9 113.5 114.6 115.3 110.8 114.8 117.7 114.7 98 Electric 491.493PT 6.2 118.2 119.6 122.6 120.0 119.8 116.9 115.8 116.9 116.0 116.0 114.4 117.9 120.1 117.4 99 Gas 492,493PT 1.6 104.8 107.5 107.4 108.2 108.5 107.9 88.2 98.1 108.4 112.6 94.4 100.8 106.8 102.7 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 140.8 141.4 142.0 142.3 143.6 144.5 145.2 146.2 146.9 148.0 149.0 114499..77 115500..11 101 Manufacturing excluding computer and office equipment 83.6 135.3 134.3 134.8 135.1 135.3 136.5 137.1 137.6 138.5 138.7 139.7 140.5 114411..00 141.3 102 Computers, communications equipment, and semiconductors 5.9 794.1 780.5 812.1 830.4 843.0 863.9 887.7 908.5 952.4 994.7 1,043.7 1,088.6 11,,113311..33 11,,116666..22 103 Manufacturing excluding computers and semiconductors 81.1 121.6 121.2 121.3 121.6 121.7 122.6 122.9 123.1 123.6 123.4 123.8 124.0 124.0 124.0 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.3 118.9 118.9 119.1 119.3 120.1 120.4 120.6 120.9 120.7 121.0 121.1 121.0 120.9 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,726.1 2,723.6 2,726.1 2,742.0 2,740.2 2,762.6 2,740.0 2,751.5 2,781.7 2,791.9 2,795.8 2,812.6 2,818.5 2,812.9 106 Final 1,552.1 2,101.6 2,100.3 2,102.8 2,118.5 2,112.5 2,132.5 2,115.8 2,122.4 2,147.5 2,152.5 2,155.2 2,168.8 2,175.1 2,176.0 107 Consumer goods 1,049.6 1,294.9 1,295.1 1,292.4 1,301.3 1,297.0 1,311.7 1,294.7 1,301.5 1,309.9 1,309.9 1,302.9 1,308.6 1,309.7 1,307.7 108 502.5 808.3 806.7 812.3 819.0 817.5 822.5 823.4 822.9 840.3 845.6 856.0 864.1 869.6 872.7 109 Intermediate 449.9 623.3 622.1 622.0 622.4 626.4 628.9 623.0 627.9 633.0 638.1 639.3 642.5 642.1 635.8 1. Data in this table appear in the Board's G. 17 (419) monthly statistical release. The data Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The 1997), pp. 67-92, and the references cited therein. For details about the construction of latest historical revision of the industrial production index and the capacity utilization rates individual industrial production series, see "Industrial Production: 1989 Developments and was released in November 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 • September 2000 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 2000 11999988 11999999 Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar.r Apr.1" May Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,664 1,658 1,553 1,636 1,678 1,683 1,762 1,661 1,597 1,559 1,511 2 One-family 1,062 1,188 1,247 1,233 1,200 1,204 1,238 1,266 1,317 1,223 1,238 1,164 1,150 3 Two-family or more 379 425 417 425 353 432 440 417 445 438 359 395 361 4 Started 1,474 1,617 1,667 1,657 1,628 1,636 1,663 1,769 1,744 1,822 1,630 1,652 1,596 5 One-family 1,134 1,271 1,335 1,285 1,290 1,343 1,344 1,441 1,361 1,324 1,327 1,310 1,254 6 Two-family or more 340 346 332 372 338 293 319 328 383 498 303 342 342 7 Under construction at end of period' 833 935 1,022 1,026 1,021 1,020 1,022 1,025 1,033 1,041 1,031 1,028 1,027 8 One-family 570 637 704 706 702 706 708 710 712 712 706 701 696 9 Two-family or more 264 297 318 320 319 314 314 315 321 329 325 327 331 10 Completed 1,404 1,473 1,636 1,581 1,642 1,608 1,653 1,675 1,599 1,732 1,728 1,675 1,680 11 One-family 1,120 1,158 1,308 1,251 1,307 1,274 1,345 1,340 1,296 1,382 1,375 1,372 1,381 12 Two-family or more 285 315 328 330 335 334 308 335 303 350 353 303 299 13 Mobile homes shipped 354 374 348 340 320 321 316 304 307 291 287 271 265 Merchant builder activity in one-family units 14 Number sold 804 886 907 914 848 906 895 916 927 905 959 877 875 15 Number for sale at end of period' 287 300 326 307 311 314 317 320 321 309 321 319 322 Price of units sold (thousands of dollars)1 16 Median 146.0 152.5 160.0 154.9 162.0 160.0 172.9 165.0 163.0 162.3 165.0 160.0 165.0 17 Average 176.2 181.9 195.8 193.3 194.4 200.3 212.4 203.0 200.1 199.6 201.9 208.5 201.3 EXISTING UNITS (one-family) 18 Number sold 4,382 4,970 5,197 5,300 5,150 4,880 5,150 5,140 4,450 4,760 5,200 4,880 5,090 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 137.4 134.4 132.5 133.2 133.7 132.2 133.7 134.7 136.1 137.6 20 Average 150.5 159.1 168.3 174.3 170.2 167.2 168.9 168.8 168.9 168.1 171.5 173.3 176.0 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 656,084r 710,104r 765,719r 755,253r 753,081r 756,854r 776,476r 791,698r 794,370r 803,956 817,559 808,224 809,257 22 Private 501,426r 550,983r 592,037r 584,016r 582,464r 584,860r 596,942r 605,802r 614,584r 629,590 637,743 634,033 639,944 23 Residential 289,101r 314,058r 348,584r 348,084r 347,616r 349,968r 353,854r 358,223r 365,149r 368,745 372,118 369,465 368,025 24 Nonresidential 212,325r 236,925r 243,454r 235,932r 234,848r 234,892r 243,088r 247,579r 249,435r 260,845 265,625 264,568 271,919 25 Industrial buildings 36,696r 40,464' 35,016r 34,279r 32,696r 31,354r 32,244r 33,262r 33,947r 38,538 39,030 38,473 42,474 26 Commercial buildings 86,151r 95,753r 103,759r 101,966r 103,930r 103,935r 107,305r 107,187r 107,961r 115,440 116,030 117,161 117,800 27 Other buildings 37,193r 39,607r 41,279r 40,220r 40,198r 41,496r 42,095r 43,392r 43,350r 45,553 45,808 45,363 48,021 28 Public utilities and other 52,287r 61,101r 63,400r 59,467r 58,024r 58,107r 61,444r 63,738r 64,177r 61,314 64,757 63,571 63,624 29 Public 154,657r 159,12 lr 173,682r 171,237r 170,617r 171,994r 179,534r 185,895r 179,787r 174,366 179,816 174,191 169,314 30 Military 2,561r 2,538r 2,122r l,646r l,932r 2,114r l,944r 2,332r l,782r 3,011 2,249 2,182 2,259 31 Highway 43,886r 48,339r 54,447r 51,542r 52,432r 50,646r 56,547r 60,218r 63,368r 53,145 59,007 55,260 51,538 32 Conservation and development 5,708r 5,42 r 6,002r 6,373r 6,145r 5,941r 6,585r 7,001r 6,223r 6,975 6,494 5,826 5,378 33 Other 102,502r 102,823r 111,110r 111,676r 110,108r 113,293r 114,458r 116,344r 108,414r 111,235 112,066 110,923 110,139 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 2000 2000 JJJuuunnneee 11999999 22000000 222000000000111 JJuunnee JJuunnee Sept. Dec. Mar. June Feb. Mar. Apr. May June CONSUMER PRICES2 (1982-84=100) 1 All items 2.0 3.7 3.9 2.4 5.8 2.6 .5 .7 .0 .1 .6 172.3 ?. Food 2.2 2.3 2.5 2.2 1.7 2.7 .4 .1 .1 .5 .1 167.3 Energy items 1.0 21.3 26.0 7.8 50.5 6.6 4.6 4.9 -1.9 -1.9 5.6 129.6 4 All items less food and energy 2.1 2.4 2.5 1.8 3.2 2.0 .2 .4 .2 .2 .2 180.8 Commodities .6 .6 2.5 -.6 .3 .0 .0 .3 .2 .0 -.2 144.5 6 Services 2.6 3.2 2.5 3.1 4.1 3.2 .3 .5 .2 .2 .3 201.6 PRODUCER PRICES (1982=100) 7 Finished goods 1.5 4.3 6.8 .9 8.6 1.2 i.r ,9r -.3 .0 .6 138.4 8 Consumer foods 1.0 1.6 3.3 -2.0 3.3 2.1 ,5r .1 1.0 -.2 -.3 137.3 9 Consumer energy 1.8 23.4 37.6 5.9 59.0 .8 5.3r 5.7r -4.1 -.5 5.1 97.0 1(1 Other consumer goods 2.6 1.6 3.8 1.1 .8 .8 .5 .1 .1 .2 -.1 153.4 11 Capital equipment .0 .9 .3 1.2 .9 1.5 ,0r .1 .2 .1 .0 138.5 Intermediate materials 17. Excluding foods and feeds -.2 5.7 6.6 3.6 9.8 2.5 .9 ,9r -.2 -.1 .9 130.7 13 Excluding energy -.5 3.0 3.4 2.1 3.9 3.0 ,3r ,3r .4 .1 .2 136.9 Crude materials 14 -6.3 2.3 3.7 -3.6 21.0 -10.8 .6 3.5 1.7 -1.8 -2.6 110011..88 15 Energy 15.2 59.4 134.4 -27.9 91.5 99.6 8.9r 3.2r -6.9 9.9 16.2 122.9 16 Other -9.8 11.0 22.6 26.2 10.2 -10.7 ,6r -,5r -1.2 -.3 -1.3 146.8 1. Not seasonally adjusted. SOURCE. U.S. Department of Labor, Bureau of Labor Statistics. 2. Figures for consumer prices are for all urban consumers and reflect a rental-equivalence measure of homeownership. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A48 Domestic Nonfinancial Statistics • September 2000 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Ql Q2 Q3 Q4 Qlr GROSS DOMESTIC PRODUCT 1 Total 8,300.8 8,759.9 9,256.1 9,072.7 9,146.2 9,297.8 9,507.9 9,707.0 By source 2 Personal consumption expenditures 5,524.4 5,848.6 6,257.3 6,090.8 6,200.8 6,303.7 6,434.1 6,612.0 3 Durable goods 642.9 698.2 758.6 739.0 751.6 761.8 782.1 821.8 4 Nondurable goods 1,641.7 1,708.9 1,843.1 1,787.8 1,824.8 1,853.9 1,905.8 1,958.4 5 Services 3,239.8 3,441.5 3,655.6 3,564.0 3,624.3 3,688.0 3,746.2 3,831.8 6 Gross private domestic investment 1,383.7 1,531.2 1,622.7 1,594.3 1,585.4 1,635.0 1,675.8 1,715.1 7 Fixed investment 1,315.4 1,460.0 1,578.0 1,543.3 1,567.8 1,594.2 1,606.8 1,683.6 8 Nonresidential 986.1 1,091.3 1,166.7 1,139.9 1,155.4 1,181.6 1,190.0 1,257.1 9 Structures 254.1 272.8 273.4 274.7 272.5 272.1 274.1 290.4 10 Producers' durable equipment 732.1 818.5 893.4 865.2 882.9 909.5 916.0 966.7 11 Residential structures 329.2 368.7 411.3 403.4 412.4 412.7 416.7 426.5 12 Change in business inventories 68.3 71.2 44.6 51.0 17.6 40.8 69.1 31.5 13 Nonfarm 65.6 70.9 41.3 40.9 12.8 40.1 71.3 33.5 14 Net exports of goods and services -88.3 -149.6 -253.9 -201.6 -245.8 -278.2 -290.1 -326.1 15 Exports 968.0 966.3 998.3 966.9 978.2 1,008.5 1,039.5 1,060.5 16 Imports 1,056.3 1,115.9 1,252.2 1,168.5 1,224.0 1,286.6 1,329.6 1,386.7 17 Government consumption expenditures and gross investment 1,481.0 1,529.7 1,630.1 1,589.1 1,605.9 1,637.2 1,688.0 1,706.1 18 Federal 537.8 538.7 570.6 557.4 561.6 569.8 593.6 579.8 19 State and local 943.2 991.0 1,059.4 1,031.8 1,044.3 1,067.4 1,094.4 1,126.3 By major type of product 20 Final sales, total 8,232.4 8,688.7 9,211.5 9,021.6 9,128.6 9,257.0 9,438.8 9,675.6 21 Goods 3,074.1 3,239.1 3,437.5 3,365.6 3,406.6 3,453.2 3,524.6 3,640.1 22 Durable 1,424.8 1,528.9 1,618.7 1,584.3 1,601.7 1,631.1 1,657.8 1,731.0 23 Nondurable 1,649.3 1,710.3 1,818.8 1,781.3 1,804.9 1,822.2 1,866.9 1,909.1 24 Services 4,434.7 4,664.6 4,932.0 4,820.7 4,885.5 4,963.7 5,058.2 5,144.7 25 Structures 723.7 785.1 842.0 835.3 836.5 840.1 856.0 890.8 26 Change in business inventories 68.3 71.2 44.6 51.0 17.6 40.8 69.1 31.5 27 Durable goods 35.6 39.0 25.8 24.1 6.3 23.0 49.8 21.8 28 Nondurable goods 32.8 32.3 18.9 27.0 11.4 17.8 19.2 9.7 MEMO 29 Total GDP in chained 1996 dollars 8,144.8 8,495.7 8,848.2 8,717.6 8,758.3 8,879.8 9,037.2 9,158.2 NATIONAL INCOME 30 Total 6,635.5 7,038.8 7,496.3 7,339.4 7,428.1 7,527.0 7,690.9 7,848.4 31 Compensation of employees 4,675.7 5,011.2 5,331.7 5,217.7 5,287.1 5,373.6 5,448.3 5,543.9 32 Wages and salaries 3,884.7 4,189.5 4,472.3 4,371.5 4,432.6 4,509.4 4,575.6 4,657.9 33 Government and government enterprises 664.4 692.8 726.5 715.8 721.3 730.3 738.5 754.3 34 Other 3,220.3 3,496.7 3,745.8 3,655.7 3,711.3 3,779.1 3,837.1 3,903.5 35 Supplement to wages and salaries 791.0 821.7 859.4 846.2 854.5 864.2 872.7 886.1 36 Employer contributions for social insurance 290.1 306.0 323.6 318.3 321.5 325.7 329.0 335.7 37 Other labor income 500.9 515.7 535.8 528.0 533.0 538.5 543.7 550.3 38 Proprietors' income1 578.6 606.1 658.5 639.9 655.3 654.0 685.0 687.1 39 Business and professional1 549.1 581.0 627.3 607.5 621.2 633.0 647.4 663.2 40 Farm1 29.5 25.1 31.3 32.5 34.1 21.0 37.6 23.9 41 Rental income of persons2 130.2 137.4 145.9 148.6 148.8 139.0 147.3 146.1 42 Corporate profits1 838.5 848.4 892.7 886.9 880.5 884.1 919.4 965.6 4.3 Profits before tax3 795.9 781.9 848.5 818.1 835.8 853.8 886.3 936.5 44 Inventory valuation adjustment 7.4 20.9 -13.0 13.3 -13.6 -26.7 -24.9 -26.7 45 Capital consumption adjustment 35.3 45.6 57.2 55.5 58.2 57.0 58.0 55.7 46 Net interest 412.5 435.7 467.5 446.3 456.4 476.3 491.0 505.7 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 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Ql Q2 Q3 Q4 Qlr PERSONAL INCOME AND SAVING 1 Total personal income 6,951.1 7,358.9 7,791.8 7,630.2 7,732.6 7,831.4 7,972.9 8,100.5 7 Wage and salary disbursements 3,888.9 4,186.0 4,472.3 4,371.5 4,432.6 4,509.4 4,575.6 4,657.9 Commodity-producing industries 975.5 1,038.7 1,082.4 1,062.9 1,075.1 1,090.2 1,101.4 1,119.0 4 Manufacturing 718.8 757.5 779.7 767.0 774.8 786.4 790.7 797.2 Distributive industries 879.1 944.6 1,005.8 986.3 997.6 1,013.4 1,025.8 1,042.8 6 Service industries 1,369.8 1,509.9 1,657.6 1,606.6 1,638.5 1,675.5 1,709.9 1,741.8 7 Government and government enterprises 664.4 692.8 726.5 715.8 721.3 730.3 738.5 754.3 8 Other labor income 500.9 515.7 535.8 528.0 533.0 538.5 543.7 550.3 9 Proprietors' income' 578.6 606.1 658.5 639.9 655.3 654.0 685.0 687.1 10 Business and professional' 549.1 581.0 627.3 607.5 621.2 633.0 647.4 663.2 11 Farm 29.5 25.1 31.3 32.5 34.1 21.0 37.6 23.9 1? Rental income of persons2 130.2 137.4 145.9 148.6 148.8 139.0 147.3 146.1 N Dividends 333.4 348.3 364.3 356.1 361.2 367.0 373.1 379.6 14 Personal interest income 854.9 897.8 931.3 907.4 920.5 938.8 958.5 979.4 is Transfer payments 962.4 983.6 1,018.2 1,007.8 1,013.6 1,021.3 1,030.2 1,047.5 16 Old age survivors, disability, and health insurance benefits 565.8 578.1 596.4 588.9 593.0 599.0 604.7 618.2 17 LESS: Personal contributions for social insurance 298.1 315.9 334.6 328.9 332.3 336.7 340.4 347.4 18 EQUALS: Personal income 6,951.1 7,358.9 7,791.8 7,630.2 7,732.6 7,831.4 7,972.9 8,100.5 19 LESS: Personal tax and nontax payments 968.3 1,072.6 1,152.1 1,124.8 1,139.4 1,160.4 1,183.8 1,227.6 20 EQUALS: Disposable personal income 5,982.8 6,286.2 6,639.7 6,505.4 6,593.2 6,671.0 6,789.1 6,872.9 21 LESS: Personal outlays 5,711.7 6,056.6 6,483.3 6,310.3 6,425.2 6,531.5 6,666.3 6,849.4 22 EQUALS: Personal saving 271.1 229.7 156.3 195.1 168.0 139.5 122.8 23.5 MEMO Per capita (chained 1996 dollars) 73 Gross domestic product 30,391.0 31,395.8 32,387.3 32,038.3 32,105.0 3322,,446677..44 3322,,995588..44 3333,,333388..99 74 Personal consumption expenditures 20,213.8 20,997.0 21,901.9 21,577.7 21,790.5 21,995.2 22,257.1 22,634.9 25 Disposable personal income 21,887.0 22,569.0 23,244.0 23,043.0 23,172.0 23,275.0 23,485.0 23,527.0 26 Saving rate (percent) 4.5 3.7 2.4 3.0 2.5 2.1 1.8 .3 GROSS SAVING 27 Gross saving 1,521.3 1,646.0 1,727.1 1,727.8 1,709.5 1,735.6 1,735.8 1,763.8 28 Gross private saving 1,362.0 1,371.2 1,364.7 1,389.4 1,359.3 1,355.7 1,354.3 1,300.5 99 Personal saving 271.1 229.7 156.3 195.1 168.0 139.5 122.8 23.5 30 Undistributed corporate profits' 266.6 259.6 268.6 282.5 264.5 257.4 270.1 294.8 31 Corporate inventory valuation adjustment 7.4 20.9 -13.0 13.3 -13.6 -26.7 -24.9 -26.7 Capital consumption allowances 37 Corporate 578.8 616.9 661.1 640.9 665522..22 667711..66 667799..77 669955..88 33 Noncorporate 249.8 261.5 278.6 271.0 274.6 287.2 281.6 286.3 34 Gross government saving 159.3 274.8 362.5 338.3 350.2 379.9 381.4 463.3 35 Federal 37.7 134.3 206.3 187.2 208.3 225.1 204.6 296.4 36 Consumption of fixed capital 86.6 87.4 90.9 89.6 90.2 91.2 92.4 93.4 37 Current surplus or deficit (-), national accounts -48.8 46.9 115.4 97.6 118.1 133.8 112.2 203.0 38 121.5 140.5 156.2 151.1 141.9 154.8 176.9 166.9 39 Consumption of fixed capital 94.0 98.8 105.2 102.4 104.3 106.0 108.1 110.0 40 Current surplus or deficit (—), national accounts 27.5 41.7 51.0 48.7 37.6 48.9 68.8 56.9 41 1,518.1 1,598.4 1,602.0 1,628.4 1,574.0 1,594.4 1,611.3 1,635.6 47 Gross private domestic investment 1,383.7 1,531.2 1,622.7 1,594.3 1,585.4 1.635.0 1,675.8 1,715.1 43 Gross government investment 258.1 268.7 297.9 289.8 292.2 295.7 313.7 320.4 44 Net foreign investment -123.7 -201.5 -318.5 -255.7 -303.7 -336.3 -378.2 -399.9 45 Statistical discrepancy -3.2 -47.6 -125.1 -99.4 -135.5 -141.2 -124.5 -128.2 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • September 2000 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1999 2000 IItteemm ccrreeddiittss oorr ddeebbiittss 11999977 11999988 11999999 Ql Q2 Q3 Q4 Ql 1 Balance on current account -140,540 -217,138 -331,479 -66,627 -78,982 -89,649 -96,223 -102,301 -105,932 -166,898 -264,971 -52,676 -63,300 -72,718 -76,280 -86,176 2 Balance on goods and services 936,937 932,977 956,242 230,321 234,297 241,969 249,653 255,037 3 Exports -1,042,869 -1,099,875 -1,221,213 -282,997 -297,597 -314,687 -325,933 -341,213 4 Imports 6,186 -6,211 -18,483 -3,120 -4,145 -5,535 -5,683 -4,200 5 Income, net 11,050 -1,036 -13,102 -1,775 -2,813 -4,193 -4,319 -2,820 6 Investment, net 71,935 67,728 62,704 16,030 14,698 15,701 16,275 17,687 7 Direct -60,885 -68,764 -75,806 -17,805 -17,511 -19,894 -20,594 -20,507 8 Portfolio -4,864 -5,175 -5,381 -1,345 -1,332 -1,342 -1,364 -1,380 9 Compensation of employees -40,794 -44,029 -48,025 -10,831 -11,537 -11,396 -14,260 -11,925 10 Unilateral current transfers, net 68 -422 2,751 118 -392 -686 3,711 -82 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -1,010 -6,783 8,747 4,068 1,159 1,951 1,569 -554 0 0 0 0 0 0 0 0 12 Change in U.S. official reserve assets (increase, —) -350 -147 10 562 -190 -184 -178 -180 13 Gold -3,575 -5,119 5,484 3 1,413 2.268 1,800 -237 14 Special drawing rights (SDRs) 22,,991155 --11,,551177 3,253 33,,550033 -64 -133 -53 -137 15 Reserve position in International Monetary Fund 16 Foreign currencies -487,998 -328,231 -441,685 -25,741 -171,609 -124,174 -120,162 -142,647 -141,118 -35.572 -69,862 28,487 -41,786 -11,259 -45,304 -45,084 17 Change in U.S. private assets abroad (increase, —) -122,888 -10,612 -92,328 -14,223 -25,734 -27,943 -24,428 -35,183 18 Bank-reported claims3 -118,976 -135,995 -128,594 1,107 -71,131 -41,420 -17,150 -27,535 19 Nonbank-reported claims --110055,,001166 --114466,,005522 -150,901 --4411,,111122 --3322,,995588 --4433,,555522 -33,280 -34,845 20 U.S. purchases of foreign securities, net 21 U.S. direct investments abroad, net 18,876 -20,127 42,864 4,274 -1,096 12,191 27,495 20,442 -6,690 -9,921 12,177 800 -6,708 12,963 5,122 16,198 22 Change in foreign official assets in United States (increase, +) 4,529 6,332 20,350 5,993 5,792 1,835 6,730 8,107 23 U.S. Treasury securities -1,041 -3,550 -3,255 -1,485 -1,099 -760 89 -644 24 Other U.S. government obligations 22,286 -9,501 12,692 -1,139 1,436 -2,032 14,427 -4,150 25 Other U.S. government liabilities3 -208 --..33,,448877 900 105 -517 185 11,,112277 931 26 Other U.S. liabilities reported by U.S. banks3 27 Other foreign official assets4 738,086 502,362 710,700 98,506 273,104 182,019 157,072 194,566 149,026 39,769 67,403 -13,951 37,151 24,585 19,618 -6,701 28 Change in foreign private assets in United States (increase, +) 113,921 -7,001 34,298 27,928 13,663 -8,085 792 42,035 29 U.S. bank-reported liabilities2 146,433 48,581 -20,464 -7,505 -5,407 9,639 -17,191 -9,254 30 U.S. nonbank-reported liabilities 24,782 16,622 22,407 2,440 3,057 4,697 12,213 -6,847 31 Foreign private purchases of U.S. Treasury securities, net 197,892 218,075 331,523 62,815 80,838 95,620 92,250 133,000 32 U.S. currency flows 106,032 186,316 275,533 26,779 143,802 55,563 49,390 42,333 33 Foreign purchases of other U.S. securities, net 34 Foreign direct investments in United States, net 350 637 -3,500 157 165 171 -3,993 166 -127,832 69,702 11,602 -14,755 -22,349 18,177 30,531 30,410 35 Capital account transactions, net5 5,514 -1,511 -9,739 5,738 5,588 36 Discrepancy --112277,,883322 6699,,770022 11,602 --2200,,226699 --2200,,883388 27,916 2244,,779933 24,822 37 Due to seasonal adjustment 38 Before seasonal adjustment MEMO -1,010 -6,783 8,747 4,068 1,159 1,951 1,569 -554 Changes in official assets 39 U.S. official reserve assets (increase, —) 1199,,991177 -16,577 46,119 55,,775599 3 1122,,995511 2277,,440066 21,086 40 Foreign official assets in United States, excluding line 25 (increase, +) 1122,,112244 --1111,,553311 11,,333311 22,,115555 11,,663322 -783 --11,,667733 55,,995511 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^11. corporations and state and local governments. 2. Reporting banks included all types of depository institutions as well as some brokers 5. Consists of capital transfers (such as those of accompanying migrants entering or and dealers. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Associated primarily with military sales contracts and other transactions arranged with nonfinancial assets. or through foreign official agencies. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current 4. Consists of investments in U.S. corporate stocks and in debt securities of private Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A51 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1999 2000 IItteemm 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. May 1 Goods and services, balance -105,932 -166,898 -264,971 -25,711 -25,657 -27,425 -28,144 -30,606 -30,500 -31,036 -196,665 -246,854 -345,559 -32,400 -32,255 -34,049 -34,641 -37,148 -36,894 -37,166 2 Merchandise 90,733 79,956 80,588 6,689 66,,559988 6,624 6,497 66,,554422 6,394 66,,113300 3 Services 936,937 932,977 956,242 83,198 84,107 83,583 84,731 86,723 86,583 85,749 4 Goods and services, exports 679,702 670,324 684,358 59,682 61,211 60,321 60,894 62,513 62,566 61,970 5 Merchandise 257,235 262,653 271,884 23,516 2222,,889966 2233,,226622 2233,,883377 2244,,221100 2244,,001177 2233,,777799 6 Services -175,265 -1,099,875 -1,221,213 -108,909 -109,764 -111,008 -112,875 -117,329 -117,083 -116,785 7 Goods and services, imports -876,367 -917,178 -1,029,917 -92,082 -93,466 -94,370 -95,535 -99,661 - 99,460 -99,136 8 Merchandise --116666,,550022 -182,697 -191,296 -16,827 --1166,,229988 --1166,,663388 --1177,,334400 --1177,,666688 --1177,,662233 --1177,,664499 9 Services 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 Dec. Jan. Feb. Mar. Apr. May June July? 1 Total 75,090 69,954 81,755 71,516 69,898 69,309 70,789 66,587 67,160 67,957 66,516 2 Gold stock, including Exchange Stabilization Fund1 11,049 11,050 11,041 11,089 11,048 11,048 11,048 11,048 11,048 11,048 11,046 3 Special drawing rights2,3 10,312 10,027 10,603 10,336 10,199 10,277 10,335 10,122 10,310 10,444 10,257 4 Reserve position in International Monetary Fund2 15,435 18,071 24,111 17,950 17,710 17,578 17,871 15,403 15,373 15,428 15,083 5 Foreign currencies4 38,294 30,809 36,001 32,182 30,941 30,406 31,535 30,014 30,429 31,037 30,130 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 Dec. Jan. Feb. Mar. Apr. May June Julyp 1 Deposits 167 457 167 71 82 87 125 142 110 104 76 Held in custody 2 U.S. Treasury securities2 638,049 620,885 607,574 632,482 627,326 631,421 641,830 632,216 623,553 627,081 624,177 3 Earmarked gold3 11,197 10,763 10,343 9,933 9,866 9,771 9,711 9,711 9,711 9,688 9,688 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 • September 2000 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999 2000 IItteemm 11999977 11999988 Nov. Dec. Jan. Feb. Mar. Apr. Mayp 1 Total1 776,505 759,928 779,432r 806,288r 808,474r 812,353 828,947r 833,904 825,808 By type ^ 2 Liabilities reported by banks in the United States" 135,384 125,883 122,746r 138,817r 134,753r 130,268 136,240r 137,474 135,308 3 U.S. Treasury bills and certificates3 148,301 134,177 153,465 156,177 153,548 156,995 164,781 157,607 148,820 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 417,304 422,266 429,029 430,806 430,237 436,640 435,235 5 Nonmarketable4 5,994 6,074 6,177 6,111 6,152 6,191 5,734 5,770 5,808 6 U.S. securities other than U.S. Treasury securities5 58,822 61,667 79,740 82,917 84,992 88,093 91,955 96,413 100,637 By area 7 Europe1 252,289 256,026 242,587 244,805 246,022 248,792 251,57 lr 249,685 250,306 8 Canada 36,177 36,715 39,081 38,666 39,439 39,358 39,846 39,501 39,190 9 Latin America and Caribbean 96,942 79,503 70,632 73,518 71,888 71,180 77,014 72,257 69,205 10 Asia 400,144 400,631 441,308r 463,673r 463,801r 466,087 474,355r 486,033 481,943 11 Africa 9,981 10,059 7,177r 7,523r 8,208r 7,976 7,979 8,024 7,709 12 Other countries 7,058 3,080 4,733 4,189 5,202 5,046 4,268 4,490 3,541 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 2000 IItteemm 11999966 11999977 11999988 June Sept. Dec. Mar. 1 Banks' liabilities 103,383 117,524 101,125 90,305 100,112 88,144 85,344 2 Banks' claims 66,018 83,038 78,162 59,597 67,032 67,355 63,573 3 Deposits 22,467 28,661 45,985 31,452 32,713 34,416 32,804 4 Other claims 43,551 54,377 32,177 28,145 34,319 32,939 30,769 5 Claims of banks' domestic customers2 10,978 8,191 20,718 23,474 11,534 20,826 21,753 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 1999 2000 IItteemm 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. Mayp BY HOLDER AND TYPE OF LIABILITY 11,,228833,,002277 11,,334477,,883377 LL,,441133,,668833RR LL,,442222,,771122RR LL,,441133,,668833RR LL,,441133,,881111RR LL,,440077,,330011RR LL,,440066,,447766RR 11,,440055,,883399 11,,446633,,440099 1 Total, all foreigners 882,980 884,939 976,400" 976,682r 976,400' 981,461r 970,752" 960,303r 974,207 1,042,574 2 Banks' own liabilities 31,344 29,558 42,884r 42,853r 42,884r 36,518r 39,61 lr 29,255r 30,202 29,097 3 Demand deposits 198,546 151,761 163,620r 163,177r 163,620r 162,147r 165,682r 167,03 lr 182,683 176,888 4 Time deposits2 168,011 140,752 162,749r 162,661r 162,749r 174,682r 163,884' 161,533r 165,254 178,820 Other3 448855,,007799 562,868 660077,,114477rr 660077,,9999 llrr 607,147r 660088,,111144rr 660011,,557755rr 660022,,448844rr 559966,,006688 665577,,776699 6 Own foreign offices4 400,047 462,898 437,283 446,030 437,283 432,350 436,549 446,173 431,632 420,835 119933,,223399 118833,,449944 118855,,779977 118844,,667755 118855,,779977 118811,,887799 118844,,660044 119955,,005500 118844,,222222 174,310 7 Banks' custodial liabilities5 8 U.S. Treasury bills and certificates6 93,641 141,699 132,575 131,859 132,575 129,551 128,673 127,630 124,209 123,563 9 Other negotiable and readily transferable 113,167 137,705 118,911 129,496 118,911 120,920 123,272 123,493 123,201 122,962 instruments7 10 Other 11,690 11,883 15,276r 14,184r 15,276r 21,807r 20,436 18,361r 20,218 22,577 11,486 10,850 1144,,335577rr 13,297r 1144,,335577rr 20,95 lr 19,513 17,586r 19,428 21,879 11 Nonmonetary international and regional organizations8 . . 16 172 9988 70 9988 202 148 71 58 36 12 Banks' own liabilities 5,466 5,793 10,349 7,675 10,349 9,621 9,251 9,741 11,338 11,433 13 Demand deposits 66,,000044 44,,888855 33,,991100rr 55,,555522rr 33,,991100rr 11 ll,,112288rr 1100,,111144 11,,111144'' 88,,003322 1100,,441100 14 Time deposits2 15 Other3 204 1,033 919 887 919 856 923 775 790 698 69 636 680 658 680 625 704 695 623 582 16 Banks' custodial liabilities5 17 U.S. Treasury bills and certificates6 133 397 233 229 233 225 213 71 77 113 18 Other negotiable and readily transferable 2 0 6 0 6 6 6 9 90 3 instruments7 19 Other 283,685 260,060 294,994r 276,21 lr 294,994r 288,301r 287,263 301,021" 295,081 284,128 102,028 80,256 97,615r 80,270r 97,615r 82,678r 79,652 87,187" 87,129 87,432 20 Official institutions9 2,314 3,003 3,341 2,829 3,341 2,645 3,306 2,381" 2,620 2,781 21 Banks' own liabilities 41,396 29,506 28,942r 27,250r 28,942r 25,909" 27,690 30,117 36,337 31,146 22 Demand deposits 5588,,331188 4477,,774477 6655,,333322 5500,,119911 65,332 5544,,112244 48,656 54,689' 48,172 53,505 23 Time deposits2 24 Other3 181,657 179,804 197,379 195,941 197,379 205,623 207,611 213,834 207,952 196,696 114488,,330011 113344,,117777 115566,,117777 115533,,446655 115566,,117777 115533,,554488 115566,,999955 164,781 157,607 148,820 25 Banks' custodial liabilities5 26 U.S. Treasury bills and certificates6 33,151 44,953 41,152 42,331 41,152 51,522 50,298 48,689 50,118 47,734 27 Other negotiable and readily transferable 205 674 50 145 50 553 318 364 227 142 instruments7 28 Other 815,247 885,336 905,383r 927,515r 905,383r 905,045r 893,042r 887,858" 891,007 948,619 641,447 676,057 733,356' 743,713r 733,356r 740,355r 730,867r 723,761" 730,444 788,499 29 Banks10 156,368 113,189 126,209" 135,722r 126,209r 132,24 lr 129,292r 121,277" 134,376 130,730 30 Banks' own liabilities 16,767 14,071 17,583 14,402 17,583 12,964 12,424 13,930 14,404 13,254 31 Unaffiliated foreign banks 83,433 45,904 48,140r 54,369r 48,140r 51,171r 51,510R 49,716" 57,490 55,665 32 Demand deposits 56,168 53,214 60,486r 66,95 lr 60,486r 68,106r 65,358r 57,631" 62,482 61,811 33 Time deposits2 448855,,007799 556622,,886688 660077,,114477rr 660077,,999911rr 660077,,114477rr 660088,,111144rr 660011,,557755rr 602,484" 559966,,006688 665577,,776699 34 Other3 35 Own foreign offices4 173,800 209,279 172,027 183,802 172,027 164,690 162,175 164,097 160,563 160,120 3311,,991155 3355,,335599 1166,,993366 1199,,551122 1166,,993366 1177,,558822 1144,,663355 15,770 1133,,999933 1144,,117799 36 Banks' custodial liabilities5 37 U.S. Treasury bills and certificates6 35,393 45,332 45,695 44,889 45,695 36,426 34,629 35,453 33,790 33,667 38 Other negotiable and readily transferable 110066,,449922 128,588 109,396 119,401 109,396 110,682 112,911 112,874 112,780 112,274 instruments7 39 Other 172,405 190,558 198,030r 204,802r 198,030" 198,658r 206,560r 199,236" 199,533 208,085 128,019 117,776 131,072r 139,402r 131,072r 137,477r 140,720r 131,769" 137,206 144,764 40 Other foreigners 12,247 12,312 21,862r 25,552r 21,862r 20,707r 23,733r 12,873" 13,120 13,026 41 Banks' own liabilities 68,251 70,558 76,189r 73,883r 76,189r 75,446r 77,231r 77,457" 77,518 78,644 42 Demand deposits 4477,,552211 3344,,990066 3333,,002211rr 3399,,996677rr 3333,,0022 llrr 4411,,332244rr 3399,,775566 41,439" 4466,,556688 5533,,009944 43 Time deposits2 44 Other3 44,386 72,782 66,958 65,400 66,958 61,181 65,840 67,467 62,327 63,321 1122,,995544 1133,,332222 1122,,000044 1111,,004400 12,004 1100,,112244 1122,,227700 13,804 1111,,999999 1100,,772299 45 Banks' custodial liabilities5 46 U.S. Treasury bills and certificates6 24,964 51,017 45,495 44,410 45,495 41,378 43,533 43,417 40,224 42,049 47 Other negotiable and readily transferable 6,468 8,443 9,459 9,950 9,459 9,679 10,037 10,246 10,104 10,543 instruments7 48 Other MEMO 1166,,008833 2277,,002266 3300,,334455 28,320 30,345 28,344 27,266 28,056 2266,,008877 2277,,223388 49 Negotiable time certificates of deposit in custody for foreigners 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 • September 2000 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 2000 IItteemm 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. Mayp AREA 11,,228833,,002277 11,,334477,,883377 ll,,441133,,668833rr ll,,442222,,771122rr ll,,441133,,668833rr ll,,441133,,881111rr ll,,440077,,330011rr ll,,440066,,447766rr 11,,440055,,883399 11,,446633,,440099 50 Total, all foreigners 1,271,337 11,,333355,,995544 l,398,407r l,408,528r ll,,339988,,440077rr ll,,339922,,000044rr ll,,338866,,886655rr ll,,338888,,111155rr 11,,338855,,662211 11,,444400,,883322 51 Foreign countries 419,672 427,375 448,070R 470,941' 448,070' 450,033' 451,022' 449,760' 433,802 435,646 52 Europe 2,717 3,178 2,789 2,842 2,789 2,648 2,997 2,570 2,302 2,468 53 Austria 41,007 42,818 44,692 41,331 44,692 42,433 38,783 36,385 33,100 31,656 54 Belgium and Luxembourg 1,514 1,437 2,196 3,197 2,196 2,510 2,533 3,235 2,601 3,629 2,246 1,862 1,658 1,894 1,658 1,290 1,479 2,015 1,744 1,529 5555 DDeennmmaarrkk 46,607 44,616 49,790 50,261 49,790 48,530 49,839 43,666 45,324 43,577 56 Finland 23,737 21,357 24,748 26,530 24,748 24,097 23,916' 25,176 23,710 24,875 5/ France 1,552 2,066 3,748 3,365 3,748 3,145 4,000 3,216 3,188 3,025 58 Germany 11,378 7,103 6,775 5,264 6,775 6,261 5,405 5,278 4,789 7,145 59 Greece 7,385 10,793 8,310 12,768' 8,310 7,271 7,797 7,617 7,295 6,823 60 Italy 317 710 1,327 1,364 1,327 834 1,169 1,336 1,197 963 61 Netherlands 2,262 3,236 2,228 2,148 2,228 2,034 2,113 2,006 1,913 1,964 62 Norway 7,968 2,439 5,475 3,655 5,475 6,404 7,543 7,360 10,065 11,716 63 Portugal 18,989 15,781 10,426 11,181 10,426 12,531 12,130 12,518 11,208 10,796 64 Russia 1,628 3,027 4,652 5,518 4,652 4,673 4,792 5,425 5,165 4,390 65 Spain 39,023 50,654 65,985 67,025 65,985 64,282 61,335 81,934 69,208 63,700 66 Sweden 4,054 4,286 7,842 8,817 7,842 6,912 7,714 7,995 8,016 7,501 6/ Switzerland 181,904 181,554 176,234' 195,508' 176,234' 184,520' 187,347' 169,156' 169,221 176,801 68 Turkey 239 233 286 267 286 273 294 270 265 275 69 United Kingdom 2255,,114455 3300,,222255 2288,,990099 2288,,000066 2288,,990099 2299,,338855 2299,,883366'' 3322,,660022 33,491 3322,,881133 /0 Yugoslavia11 /I Other Europe and other former U.S.S.R.12 28,341 30,212 34,119 33,746 34,119 32,965 33,387 36,147 40,562 36,264 72 Canada 536,393 554,866 577,737' 594,550' 577,737' 599,593' 596,273' 596,211' 604,667 669,852 20,199 19,014 18,633 15,042 18,633 15,333 16,548' 17,906 18,487 16,496 73 LLaattiinn AAmmeerriiccaa aanndd CCaarriibbbbeeaann 112,217 118,085 134,407 139,179 134,407 149,727 155,720 141,370 159,115 174,082 / 4 Argentina 6,911 6,846 7,877 8,859 7,877 9,910 9,106 10,108 9,710 8,713 /5 Bahamas 31,037 15,815 12,860 14,184 12,860 12,230 12,785 14,889 10,305 9,945 )b Bermuda 276,418 302,486 312,779' 328,185' 312,779' 320,352' 311,990' 320,120' 314,961 365,846 II Brazil 4,072 5,015 7,008 6,521 7,008 6,366 6,244 5,752 5,933 6,095 18 British West Indies 3,652 4,624 5,669' 4,783 5,669' 4,438 4,304 4,314 4,243 4,237 19 Chile 66 62 75 73 75 75 75 100 77 77 8800 Colombia 2,078 1,572 1,956 1,930 1,956 1,985 2,035 2,141 2,193 2,274 8811 Cuba 1,494 1,336 1,626' 1,582' 1,626' 1,636 1,617 1,706 1,628 1,669 82 Ecuador 450 577 520 546 520 540 571 671 670 706 83 Guatemala 33,972 37,157 30,717' 31,189 30,717' 32,090 32,216 31,393 32,832 33,915 8844 Jamaica 5,085 5,010 3,997 3,396' 3,997 4,269 3,692 4,528 5,090 6,561 8855 Mexico 4,241 3,864 4,415 3,834 4,415 4,042 3,737 4,157 3,788 3,764 8866 Netherlands Antilles 893 840 1,142 997 1,142 1,073 1,051 975 1,021 1,096 8877 Panama 2,382 2,486 2,386 2,585 2,386 2,260 2,262 2,377 2,431 2,520 88 Peru 21,601 19,894 20,189 20,311 20,189 21,517 21,297 22,572 21,140 20,469 89 Uruguay 99,,662255 1100,,118833 1111,,448811'' 1111,,335544'' 1111,,448811'' 1111,,775500 1111,,002233'' 1111,,113322 1111,,004433 1111,,338877 90 Venezuela 91 Other 269,379 307,960 319,363' 292,058' 319,363' 290,411' 287,375' 287,636' 288,807 282,324 92 Asia 18,252 13,441 12,325 13,981 12,325 11,570 11,661 8,096 8,530 7,824 China 11,840 12,708 13,600' 14,791 13,600' 11,674' 11,211 14,642 14,488 14,113 9933 Mainland 17,722 20,900 27,697 22,276 27,697 25,951 24,038 22,672' 22,873 23,951 94 Taiwan 4,567 5,250 7,367 5,610 7,367 5,491 5,405 6,258 5,586 5,703 95 Hong Kong 3,554 8,282 6,567 6,486 6,567 6,853 7,495 7,837 7,275 7,064 96 India 6,281 7,749 7,488 5,071 7,488 6,581 7,680 8,338 7,058 5,541 91 Indonesia 143,401 168,563 159,075 152,095 159,075 149,033 145,314 145,074 147,409 148,668 9988 Israel 13,060 12,524 12,853R 8,487' 12,853' 11,573 12,625 16,420 16,820 12,941 9999 Japan 3,250 3,324 3,253 2,639 3,253 1,937' 2,540 2,277 2,290 1,750 100 Korea (South) 6,501 7,359 6,050 5,164 6,050 5,389 5,134 4,370 3,628 3,428 101 Philippines 14,959 15,609 21,284' 17,948' 21,284' 16,927' 15,811' 16,132' 19,005 18,646 102 Thailand 25,992 3322,,225511 41,804' 3377,,551100'' 4411,,880044'' 3377,,443322'' 3388,,446611 3355,,552200 3333,,884455 3322,,669955 103 Middle Eastern oil-exporting countries13 104 Other 10,347 8,905 9,468' 7,798' 9,468' 8,105' 8,270 8,614 8,576 8,439 1,663 1,339 2,022 1,846 2,022 1,616 1,703 1,770 1,663 1,722 110055 AAffrriiccaa 138 97 179 166 179 176 262 115 106 122 106 Egypt 2,158 1,522 1,495 957 1,495 730 698 673 687 662 10/ Morocco 10 5 14 13 14 7 13 13 7 13 108 South Africa 3,060 3,088 2,914' 2,247' 2,914' 2,952' 3,098 3,318 3,558 3,298 109 Zaire 3,318 2,854 2,844 2,569 2,844 22,,662244 22,,449966 22,,772255 22,,555555 22,,662222 110 Oil-exporting countries14 111 Other 7,205 6,636 9,650 9,435' 9,650 10,897 10,538 9,747 9,207 8,307 6,304 5,495 8,377 8,394 8,377 9,910 9,335 8,669 8,414 7,585 111122 OOtthheerr 901 11,,114411 11,,227733 11,,004411'' 11,,227733 987 11,,220033 11,,007788 779933 772222 113 Australia 114 Other 11,690 11,883 15,276' 14,184' 15,276' 21,807' 20,436 18,361' 20,218 22,577 10,517 10,221 12,876' 12,751' 12,876' 19,708' 17,561' 16,306' 18,835 21,145 115 NNoonnmmoonneettaarryy iinntteerrnnaattiioonnaall aanndd rreeggiioonnaall oorrggaanniizzaattiioonnss .. .. 424 594 1,150' 445' 1,150' 1,128 1,858' 1,244 518 624 116 International15 749 11,,006688 11,,225500 988 11,,225500 997711 11,,001177 811 886655 808 11/ Latin American regional16 118 Other regional17 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999 2000 AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 Nov. Dec. Jan.r Feb.r Mar.r Apr. Mayp 1 Total, all foreigners 708,225 734,995 795,377r 780,069r 795,377r 757,214 750,972 813,890 815,853 820,715 2 Foreign countries 705,762 731,378 790,814r 774,407r 790,814r 751,596 746,305 809,581 810,851 816,372 3 Europe 199,880 233,321 315,905r 313,600r 315,905r 308,133 314,504 361,470 350,067 359,858 4 Austria 1,354 1,043 2,643 2,407 2,643 3,020 2,471 2,493 2,429 2,242 5 Belgium and Luxembourg 6,641 7,187 10,193 9,326r 10,193 8,898 9,777 8,022 7,939 5,959 6 Denmark 980 2,383 1,669 1,756 1,669 1,702 1,743 1,625 1,940 2,001 7 Finland 1,233 1,070 2,020 2,034 2,020 2,328 1,846 2,093 2,087 2,414 8 France 16,239 15,251 29,142 24,592 29,142 30,051 28,303 28,127 30,958 35,217 9 Germany 12,676 15,923 29,205 22,365 29,205 29,871 28,890 35,371 33,991 31,521 in Greece 402 575 806 754 806 793 683 842 728 828 11 Italy 6,230 7,284 8,496 7,297 8,496 8,614 6,785 7,048 7,034 6,565 17 Netherlands 6,141 5,697 11,810r 8,100 1 l,810r 11,477 11,484 14,089 13,932 14,377 13 Norway 555 827 l,000r 920 l,000r 1,376 1,146 1,132 1,499 1,832 14 Portugal 777 669 1,571 1,430 1,571 1,307 1,155 1,043 1,085 1,268 15 Russia 1,248 789 713 711 713 701 743 709 709 715 16 Spain 2,942 5,735 3,796 4,641 3,796 4,581 4,339 3,187 3,217 3,126 17 Sweden 1,854 4,223 3,264r 3,853 3,264r 4,556 5,382 7,492 8,100 7,150 18 Switzerland 28,846 46,874 79,158r 91,493 79,158r 68,976 70,250 111,544 97,688 105,535 19 Turkey 1,558 1,982 2,617 2,491 2,617 2,969 3,031 3,053 3,148 3,269 20 United Kingdom 103,143 106,349 120,190r 121,154r 120,190r 120,126 128,252 125,162 126,071 128,221 21 Yugoslavia2 52 53 50 50 50 50 50 50 51 49 22 Other Europe and other former U.S.S.R.3 7,009 9,407 7,562 8,226 7,562 6,737 8,174 8,388 7,461 7,569 23 Canada 27,189 47,037 37,206r 37,060 37,206r 36,474 38,541 42,686 43,300 45,481 24 Latin America and Caribbean 343,730 342,654 353,416r 335,361r 353,416r 323,537 314,839 323,816 328,769 321,210 25 Argentina 8,924 9,552 10,167 10,034 10,167 9,962 10,095 9,845 9,732 9,512 76 Bahamas 89,379 96,455 99,324 87,177 99,324 78,641 68,914 74,018 72,312 71,459 77 Bermuda 8,782 5,011 8,007 9,449 8,007 10,145 11,771 7,441 5,685 6,456 78 Brazil 21,696 16,184 15,706 14,973 15,706 15,031 15,382 14,981 16,210 16,384 79 British West Indies 145,471 153,749 167,189r 158,937 167,189r 157,469 156,776 166,284 173,907 165,920 3n Chile 7,913 8,250 6,607 6,591 6,607 6,672 6,224 6,511 6,447 6,399 31 Colombia 6,945 6,507 4,524r 4,745 4,524r 4,326 4,176 3,937 3,907 4,032 37 Cuba 0 0 0 0 0 0 0 0 0 0 33 Ecuador 1,311 1,400 760 761 760 692 730 688 662 640 34 Guatemala 886 1,127 l,135r l,092r l,135r 1,067 1,170 1,181 1,252 1,245 35 Jamaica 424 239 295 309 295 298 332 328 316 300 36 Mexico 19,428 21,212 17,899 17,924 17,899 17,848 17,489 16,998 16,944 16,771 37 Netherlands Antilles 17,838 6,779 5,982 8,078 5,982 6,194 6,341 6,385 6,388 6,579 38 Panama 4,364 3,584 3,387 3,050 3,387 3,067 2,972 2,912 2,844 2,984 39 Peru 3,491 3,275 2,529 2,507 2,529 2,462 2,414 2,223 2,356 2,515 40 Uruguay 629 1,126 801 775 801 709 111 761 714 708 41 Venezuela 2,129 3,089 3,494 3,587 3,494 3,571 3,524 3,580 3,474 3,595 42 Other 4,120 5,115 5,610r 5,372r 5,610r 5,383 5,752 5,743 5,619 5,711 43 Asia 125,092 98,607 74,914r 78,444r 74,914r 73,342 69,074 72,692 79,027 80,200 China 44 Mainland 1,579 1,261 2,090 2,082 2,090 2,221 2,726 3,161 4,532 2,611 45 Taiwan 922 1,041 1,390 1,495 1,390 1,462 1,501 925 1,080 1,716 46 Hong Kong 13,991 9,080 5,893 6,010 5,893 5,240 4,453 4,519 4,546 4,573 47 India 2,200 1,440 1,738 1,972 1,738 1,616 1,802 1,749 1,786 1,941 48 Indonesia 2,651 1,942 1,776 1,681 1,776 1,711 1,743 1,817 1,821 1,819 49 Israel 768 1,166 1,875 1,053 1,875 1,853 1,832 3,412 3,293 2,857 5n Japan 59,549 46,713 28,636 30,303r 28,636 28,612 25,559 27,310 31,151 31,689 51 Korea (South) 18,162 8,289 9,262r 13,257r 9,262r 11,378 12,066 11,466 12,209 14,018 52 Philippines 1,689 1,465 1,410 990 1,410 1,088 1,058 1,698 1,714 1,884 53 Thailand 2,259 1,807 l,515r 1,430r l,515r 1,155 1,275 1,154 1,081 1,137 54 Middle Eastern oil-exporting countries4 10,790 16,130 14,252 11,631 14,252 10,774 10,947 11,612 10,765 11,666 55 Other 10,532 8,273 5,077 6,540 5,077 6,232 4,112 3,869 5,049 4,289 56 Africa 3,530 3,122 2,268 2,473 2,268 2,786 2,453 1,991 2,054 2,109 57 Egypt 247 257 258 233 258 222 207 243 206 218 58 Morocco 511 372 352 354 352 299 313 279 300 271 59 South Africa 805 643 622 873 622 943 889 428 360 341 6n Zaire 0 0 24 9 24 0 0 0 0 0 61 Oil-exporting countries5 1,212 936 276 275 276 494 228 198 394 508 62 Other 755 914 736 729 736 828 816 843 794 771 63 Other 6,341 6,637 7,105 7,469 7,105 7,324 6,894 6,926 7,634 7,514 64 Australia 5,300 6,173 6,824 7,272 6,824 7,113 6,682 6,674 7,225 7,139 65 Other 1,041 464 281 197 281 211 212 252 409 375 66 Nonmonetary international and regional organizations6 . . . 2,463 3,617 4,563r 5,662r 4,563r 5,618 4,667 4,309 5,002 4,343 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 • September 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 Nov. Dec.r Jan. Feb. Mar.r Apr. Mayp 1 Total 852,852 875,891 945,334 945,334 l,009,002r 2 Banks' claims 708,225 734,995 795,377 780,069r 795,377 757,214r 750,972r 813,890r 815,853 820,715 3 Foreign public borrowers 20,581 23,542 35,090 39,802r 35,090 42,241r 36,541 36,036r 37,278 42,470 4 Own foreign offices2 431,685 484,535 528,397 51 l,981r 528,397 490,280r 496,77 lr 552,218r 557,339 549,165 Unaffiliated foreign banks 109,230 106,206 101,227 99,492r 101,227 93,524 87,666 96,030r 91,849 92,872 6 Deposits 30,995 27,230 34,360 27,835 34,360 24,259 21,275 24,361 22,399 24,771 7 Other 78,235 78,976 66,867 71,657r 66,867 69,265 66,391 71,669r 69,450 68,101 8 All other foreigners 146,729 120,712 130,663 128,794r 130,663 131,169r 129,994 129,606 129,387 136,208 9 Claims of banks' domestic customers' 144,627 140,896 149,957 149,957 195,112 10 Deposits 73,110 79,363 86,164 86,164 127,077 11 Negotiable and readily transferable instruments4 53,967 47,914 51,161 51,161 56,032 12 Outstanding collections and other claims 17,550 13,619 12,632 12,632 12,003 MEMO 13 Customer liability on acceptances 9,624 4,520 4,672 4,672 4,466 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 33,816 39,978 31,125 32,592 31,125 41,544 48,225 53,657 45,383 45,144 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 tiled 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 2000 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999966 11999977 11999988 June Sept. Dec. Mar. 1 Total 258,106 276,550 250,418 261,268 270,102 266,330 261,095 By borrower 2 Maturity of one year or less 211,859 205,781 186,526 186,494 196,821 187,454 180,047 3 Foreign public borrowers 15,411 12,081 13,671 25,354 22,603 22,904 21,332 4 All other foreigners 196,448 193,700 172,855 161,140 174,218 164,550 158,715 5 Maturity of more than one year 46,247 70,769 63,892 74,774 73,281 78,876 81,048 6 Foreign public borrowers 6,790 8,499 9,839 11,704 12,193 12,043 12,803 7 All other foreigners 39,457 62,270 54,053 63,070 61,088 66,833 68,245 By area Maturity of one year or less 8 Europe 55,690 58,294 68,679 84,717 82,567 80,843 79,673 9 Canada 8,339 9,917 10,968 6,674 8,545 7,860 8,408 10 Latin America and Caribbean 103,254 97,207 81,766 64,879 78,102 69,035 62,377 11 38,078 33,964 18,007 22,587 20,864 21,820 22,510 12 Africa 1,316 2,211 1,835 1,543 1,119 1,122 957 13 All other1 5,182 4,188 5,271 6,094 5,624 6,774 6,122 Maturity of more than one year 14 Europe 6,965 13,240 14,923 18,962 18,618 22,950 23,949 15 Canada 2,645 2,525 3,140 3,292 3,192 3,191 3,134 16 Latin America and Caribbean 24,943 42,049 33,442 39,090 38,111 38,741 39,153 17 9,392 10,235 10,018 10,482 10,641 11,257 12,093 18 Africa 1,361 1,236 1,232 1,105 1,087 1,065 965 19 All other3 941 1,484 1,137 1,843 1,632 1,672 1,754 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity. dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1998 1999 2000 AArreeaa oorr ccoouunnttrryy 11999966 11999977 Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. 1 Total 645.8 721.8 1029.8 1017.2 1071.9 1051.6 992.6 939.2r 937.2r 937.5r 950.4 2 G-10 countries and Switzerland 228.3 242.8 250.9 273.9 240.0 217.7 208.5 222.9r 205.9r 237.3r 283.9 3 Belgium and Luxembourg 11.7 11.0 12.0 14.0 11.7 10.7 15.6 16.1 15.7 14.3 14.2 4 France 16.6 15.4 16.5 21.7 20.3 18.4 21.6 20.4 19.9 29.0 27.1 5 Germany 29.8 28.6 27.0 30.5 31.4 30.9 34.7 32.1 37.4 38.7 37.3 6 Italy 16.0 15.5 20.8 21.1 18.5 11.5 17.8 16.4 15.0 18.1 20.0 7 Netherlands 4.0 6.2 7.7 8.6 8.4 7.8 10.7 13.3 10.6 12.3r 17.1 8 Sweden 2.6 3.3 4.8 3.1 2.1 2.3 4.0 2.6 3.6 3.0r 3.9 9 Switzerland 5.3 7.2 5.9 7.0 7.6 8.5 7.8 8.2 8.8 10.3r 10.1 10 United Kingdom 104.7 113.4 114.6 125.9 100.1 85.4 55.9 74. lr 51.5r 73.2r 113.2 11 Canada 14.0 13.7 14.2 16.7 15.9 16.8 15.9 17.1 17.8 16.3 17.5 12 Japan 23.7 28.6 27.3 25.3 23.9 25.4 24.6 22.6 25.6 22.0 23.5 13 Other industrialized countries 66.1 65.5 78.2 78.7 78.5 69.0 80.1 79.7 71.7 68.4r 62.8 14 Austria 1.1 1.5 1.7 1.9 2.1 1.4 2.8 2.8 3.0 3.5 2.6 15 Denmark 1.5 2.4 2.1 2.2 3.0 2.2 3.4 2.9 2.1 2.6 1.5 16 Finland .8 1.3 1.5 1.4 1.6 1.4 1.5 .9 .9 .9 .8 17 Greece 6.7 5.1 6.1 5.8 5.8 5.9 6.5 5.9 6.6 6.0 5.7 18 Norway 8.0 3.6 4.0 3.4 3.2 3.2 3.1 3.0 3.8 3.3r 3.0 19 Portugal .9 .9 .8 1.4 1.1 1.4 1.4 1.2 1.2 1.0 1.0 20 Spain 13.3 12.6 18.1 17.5 19.5 13.7 15.7 16.6 15.1 12.1 11.3 21 Turkey 2.7 4.5 4.9 6.5 5.2 4.8 5.2 4.9 4.7 4.8 5.1 22 Other Western Europe 4.9 8.3 10.2 9.9 10.4 10.4 10.2 10.2 9.2 6.8 8.3 73 South Africa 2.0 2.2 5.5 6.9 5.4 4.4 4.8 4.7 4.0 3.8 4.8 24 Australia 24.0 23.1 23.2 21.8 21.4 20.3 25.4 26.6 21.1 23.5 18.6 75 OPEC2 19.8 26.0 26.0 25.5 26.0 27.1 26.2 26.1 30.1 31.4 28.9 76 Ecuador 1.1 1.3 1.3 1.2 1.2 1.3 1.2 1.1 .9 .8 .7 77 Venezuela 2.4 2.5 3.4 3.3 3.1 3.2 3.5 3.2 3.0 2.8 3.0 78 Indonesia 5.2 6.7 5.6 5.1 4.7 4.7 4.5 5.0 4.4 4.2 3.9 79 Middle East countries 10.7 14.4 14.4 15.6 16.1 17.0 16.7 16.5 21.4 23.0 21.1 30 African countries .4 1.2 1.4 .3 .8 1.0 .4 .4 .5 .5 .2 31 Non-OPEC developing countries 130.3 139.2 149.8 146.1 140.4 143.4 146.7 148.6 142.5 147.3 152.2 Latin America 37 Argentina 14.3 18.4 20.0 20.9 22.9 23.1 24.3 22.8 22.1 22.4 21.3 33 Brazil 20.7 28.6 33.4 30.3 24.0 24.7 24.2 25.1 22.1 26.4 26.9 34 Chile 7.0 8.7 9.0 9.1 8.5 8.3 8.6 8.2 7.7 7.4 8.2 35 Colombia 4.1 3.4 3.3 3.6 3.4 3.2 3.3 3.1 2.7 2.5 2.5 36 Mexico 16.2 17.4 17.8 18.1 18.7 18.9 19.7 18.5 19.4 18.7 18.3 37 1.6 2.0 2.1 2.2 2.2 2.2 2.2 2.1 1.8 1.7 1.9 38 Other 3.3 4.1 4.0 4.4 4.6 5.4 5.3 5.5 5.5 5.9 6.1 Asia China 39 Mainland 2.5 3.2 4.2 3.9 2.8 3.0 5.0 5.3 3.3 3.6 4.6 40 Taiwan 10.3 9.5 12.1 11.8 12.5 13.3 11.8 12.6 12.3 12.0 12.6 41 India 4.3 4.9 5.0 4.9 5.3 5.5 5.5 6.7 7.0 7.7 7.9 47 Israel .5 .7 .7 .9 .9 1.1 1.1 2.0 1.0 1.8 3.3 43 Korea (South) 21.5 15.6 16.2 14.6 13.1 13.7 13.7 15.3 16.0 15.1 17.3 44 Malaysia 6.0 5.1 4.5 4.7 5.0 5.6 5.9 6.0 6.1 6.1 6.5 45 Philippines 5.8 5.7 5.1 5.4 4.7 5.1 5.4 5.7 5.8 6.2 5.3 46 Thailand 5.7 5.4 5.5 5.0 5.3 4.7 4.5 4.2 4.0 4.1 4.3 47 Other Asia 4.1 4.3 4.2 3.7 3.1 2.9 3.0 2.8 2.8 2.9 2.6 Africa 48 Egypt .7 .9 1.0 1.5 1.7 1.3 1.4 1.4 1.3 1.4 1.4 49 Morocco .7 .6 .6 .6 .5 .5 .5 .5 .5 .4 .3 50 Zaire .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .8 1.1 .8 1.1 1.0 1.2 1.0 1.0 1.0 .9 57 Eastern Europe 6.9 9.1 12.3 11.3 6.3 5.5 7.1 5.8 5.4 5.2 4.7 53 Russia4 3.7 5.1 7.5 6.9 2.8 2.2 2.3 2.1 2.0 1.6 1.7 54 Other 3.2 4.0 4.7 4.4 3.5 3.3 4.8 3.7 3.4 3.6 3.0 55 Offshore banking centers 135.1 140.2 133.1 130.0 121.0 93.9 93.6 75.9 90.3 60.1 42.0 56 Bahamas 20.5 24.2 32.6 28.6 30.7 35.4 32.6 20.4 29.4 13.9 2.4 57 Bermuda 4.5 9.8 9.1 9.4 10.4 4.6 3.9 5.7 8.2 8.0 7.3 58 Cayman Islands and other British West Indies 37.2 43.4 24.9 34.3 27.8 12.8 13.9 7.2 6.3 1.3 .0 59 Netherlands Antilles 26.1 14.6 14.0 10.5 6.0 2.6 2.7 1.3 9.1 1.7 2.5 60 Panama5 2.0 3.1 3.2 3.3 4.0 3.9 3.9 3.9 3.9 3.9 3.4 61 Lebanon .1 .1 .1 .1 .2 .1 .1 .1 .2 .1 .1 67 Hong Kong, China 27.9 32.2 33.9 30.0 30.6 23.3 22.8 22.0 22.4 21.0 22.2 63 Singapore 16.7 12.7 15.0 13.6 11.1 11.1 13.5 15.2 10.6 10.1 4.1 64 Other .1 .1 .1 .2 .2 .2 .2 .1 .2 .1 .1 65 Miscellaneous and unallocated7 59.6 99.1 379.7 351.7 459.9 495.1 430.4 380.2 391.2 387.9 376.0 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 • September 2000 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1998 1999 2000 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 Dec. Mar. June Sept. Dec. Mar.p 1 Total 61,782 57,382 46,570 46,570 46,663 49,337 52,979 53,044 52,386 2 Payable in dollars 39,542 41,543 36,668 36,668 34,030 36,032 36,296 37,605 34,601 3 Payable in foreign currencies 22,240 15,839 9,902 9,902 12,633 13,305 16,683 15,415 17,785 By type 4 Financial liabilities 33,049 26,877 19,255 19,255 22,458 25,058 27,422 27,980 28,205 5 Payable in dollars 11,913 12,630 10,371 10,371 11,225 13,205 12,231 13,883 11,935 6 Payable in foreign currencies 21,136 14,247 8,884 8,884 11,233 11,853 15,191 14,097 16,270 1 Commercial liabilities 28,733 30,505 27,315 27,315 24,205 24,279 25,557 25,064 24,181 8 Trade payables 12,720 10,904 10,978 10,978 9,999 10,935 12,651 12,857 12,399 9 Advance receipts and other liabilities 16,013 19,601 16,337 16,337 14,206 13,344 12,906 12,207 11,782 10 Payable in dollars 27,629 28,913 26,297 26,297 22,805 22,827 24,065 23.722 22,666 11 Payable in foreign currencies 1,104 1,592 1,018 1,018 1,400 1,452 1,492 1,318 1,515 By area or country Financial liabilities 12 Europe 23,179 18,027 12,589 12,589 16,098 19,578 21,695 23,241 23,115 13 Belgium and Luxembourg 632 186 79 79 50 70 50 31 4 14 France 1,091 1,425 1,097 1,097 1,178 1,287 1,675 1,659 1,405 15 Germany 1,834 1,958 2,063 2,063 1,906 1,959 1,712 1,974 1,390 16 Netherlands 556 494 1,406 1,406 1,337 2,104 2,066 1,996 1,970 1/ Switzerland 699 561 155 155 141 143 133 147 97 18 United Kingdom 17,161 11,667 5,980 5,980 9,729 13,097 15,096 16,521 16,579 19 Canada 1,401 2,374 693 693 781 320 344 284 313 20 Latin America and Caribbean 1,668 1,386 1,495 1,495 11,,552288 11,,336699 11,,118800 892 847 21 Bahamas 236 141 7 7 11 11 11 1 1 22 Bermuda 50 229 101 101 78 52 26 5 1 23 Brazil 78 143 152 152 137 131 122 126 129 24 British West Indies 1,030 604 957 957 1,064 944 786 492 489 25 Mexico 17 26 59 59 22 19 28 25 22 26 Venezuela 1 1 2 2 2 1 0 0 0 27 Asia 6,423 4,387 3,785 3,785 3,475 3,217 3,622 3,437 3,234 28 Japan 5,869 4,102 3,612 3,612 3,337 3,035 3,384 3,142 2,944 29 Middle Eastern oil-exporting countries' 25 27 0 0 1 2 3 3 4 30 Africa 38 60 28 28 31 29 31 28 28 31 Oil-exporting countries2 0 0 0 0 2 0 0 0 0 32 All other3 340 643 665 665 545 545 550 98 668 Commercial liabilities 33 Europe 9,767 10,228 10,030 10,030 8,580 8,718 9,265 9,262 8,629 34 Belgium and Luxembourg 479 666 278 278 229 189 128 140 78 35 France 680 764 920 920 654 656 620 672 536 36 Germany 1,002 1,274 1,392 1,392 1,088 1,143 1,201 1,131 911 37 Netherlands 766 439 429 429 361 432 535 507 647 38 Switzerland 624 375 499 499 535 497 593 626 536 39 United Kingdom 4,303 4,086 3,697 3,697 3,008 2,959 3,175 3,071 2,652 40 Canada 1,090 1,175 1,390 1,390 1,597 1,670 1,753 1,775 2,013 41 Latin America and Caribbean 2,574 2,176 1,618 1,618 1,612 1,674 1,957 2,310 2,275 42 Bahamas 63 16 14 14 11 19 24 22 9 43 Bermuda 297 203 198 198 225 180 178 152 287 44 Brazil 196 220 152 152 107 112 120 145 115 45 British West Indies 14 12 10 10 7 5 39 48 23 46 Mexico 665 565 347 347 437 490 704 887 796 47 Venezuela 328 261 202 202 155 149 182 305 193 48 Asia 13,422 14,966 12,342 12,342 10,428 10,039 10,428 9,886 9,592 49 Japan 4,614 4,500 3,827 3,827 2,715 2,753 2,689 2,609 2,185 50 Middle Eastern oil-exporting countries' 2,168 3,111 2,852 2,852 2,479 2,209 2,618 2,551 2,308 51 Africa 1,040 874 794 794 727 832 959 950 943 52 Oil-exporting countries" 532 408 393 393 377 392 584 499 536 53 Other3 840 1,086 1,141 1,141 1,261 1,346 1,195 881 729 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 2000 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 Dec. Mar. June Sept. Dec. Mar.p 1 Total 65,897 68,128 77,462 77,462 69,054 63,884 67,566 76,669 85,187 2 Payable in dollars 59,156 62,173 72,171 72,171 64,026 57,006 60,456 69,170 75,252 3 Payable in foreign currencies 6,741 5,955 5,291 5,291 5,028 6,878 7,110 7,472 9,935 By type 4 Financial claims 37,523 36,959 46,260 46,260 38,217 31,957 33,877 40,231 49,167 5 Deposits 21,624 22,909 30,199 30,199 18,686 13,350 15,192 18,566 23,989 6 Payable in dollars 20,852 21,060 28,549 28,549 17,101 11,636 13,240 16,373 22,115 7 Payable in foreign currencies 772 1,849 1,650 1,650 1,585 1,714 1,952 2,193 1,874 8 Other financial claims 15,899 14,050 16,061 16,061 19,531 18,607 18,685 21,665 25,178 9 Payable in dollars 12,374 11,806 14,049 14,049 17,457 14,800 15,718 18,593 20,355 10 Payable in foreign currencies 3,525 2,244 2,012 2,012 2,074 3,807 2,967 3,072 4,823 11 Commercial claims 28,374 31,169 31,202 31,202 30,837 31,927 33,689 36,438 36,020 12 Trade receivables 25,751 27,536 27,202 27,202 26,724 27,791 29,397 32,629 31,402 13 Advance payments and other claims 2,623 3,633 4,000 4,000 4,113 4,136 4,292 3,809 4,618 14 Payable in dollars 25,930 29,307 29,573 29,573 29,468 30,570 31,498 34,204 32,782 15 Payable in foreign currencies 2,444 1,862 1,629 1,629 1,369 1,357 2,191 2,207 3,238 By area or country Financial claims 16 Europe 11,085 14,999 12,294 12,294 12,881 13,978 13,878 13,023 17,394 17 Belgium and Luxembourg 185 406 661 661 469 457 574 529 546 18 France 694 1,015 864 864 913 1,368 1,212 967 1,835 19 Germany 276 427 304 304 302 367 549 504 669 20 Netherlands 493 677 875 875 993 997 1,067 1,229 1,981 21 Switzerland 474 434 414 414 530 504 559 643 612 22 United Kingdom 7,922 10,337 7,766 7,766 8,400 8,631 8,157 7,561 9,646 23 Canada 3,442 3,313 2,503 2,503 3,111 2,828 3,172 2,553 3,549 24 Latin America and Caribbean 20,032 15,543 27,714 27,714 18,825 11,486 12,749 18,206 21,901 25 Bahamas 1,553 2,308 403 403 666 467 755 1,593 1,300 26 Bermuda 140 108 39 39 41 39 524 11 11 27 Brazil 1,468 1,313 835 835 1,112 1,102 1,265 1,476 1,628 28 British West Indies 15,536 10,462 24,388 24,388 14,621 7,393 7,263 12,099 15,814 29 Mexico 457 537 1,245 1,245 1,583 1,702 1,791 1,798 1,981 30 Venezuela 31 36 55 55 72 71 47 48 65 31 Asia 2,221 2,133 3,027 3,027 2,648 2,801 3,205 5,457 4,899 32 Japan 1,035 823 1,194 1,194 942 949 1,250 3,262 2,021 33 Middle Eastern oil-exporting countries1 22 11 9 9 8 5 5 21 29 34 Africa 174 319 159 159 174 228 251 286 197 35 Oil-exporting countries2 14 15 16 16 26 5 12 15 15 36 All other3 569 652 563 563 578 636 622 706 1,227 Commercial claims 37 Europe 10,443 12,120 13,246 13,246 12,782 12,961 14,367 16,389 15,709 38 Belgium and Luxembourg 226 328 238 238 281 286 289 316 271 39 France 1,644 1,796 2,171 2,171 2,173 2,094 2,375 2,236 2,345 40 Germany 1,337 1,614 1,822 1,822 1,599 1,660 1,944 1,960 1,922 41 Netherlands 562 597 467 467 415 389 617 1,429 1,337 4? Switzerland 642 554 483 483 367 385 714 610 611 43 United Kingdom 2,946 3,660 4,769 4,769 4,529 4,615 4,789 5,827 5,354 44 Canada 2,165 2,660 2,617 2,617 2,983 2,855 2,638 2,757 3,088 45 Latin America and Caribbean 5,276 5,750 6,296 6,296 5,930 6,278 5,879 5,959 5,881 46 Bahamas 35 27 24 24 10 21 29 20 15 47 Bermuda 275 244 536 536 500 583 549 390 404 48 Brazil 1,303 1,162 1,024 1,024 936 887 763 905 846 49 British West Indies 190 109 104 104 117 127 157 181 90 50 Mexico 1,128 1,392 1,545 1,545 1,431 1,478 1,613 1,678 1,526 51 Venezuela 357 576 401 401 361 384 365 439 434 52 Asia 8,376 8,713 7,192 7,192 7,080 7,690 8,579 9,165 9,087 53 Japan 2,003 1,976 1,681 1,681 1,486 1,511 1,823 2,074 2,080 54 Middle Eastern oil-exporting countries1 971 1,107 1,135 1,135 1,286 1,465 1,479 1,625 1,531 55 Africa 746 680 711 711 685 738 682 631 711 56 Oil-exporting countries2 166 119 165 165 116 202 221 171 82 57 Other3 1,368 1,246 1,140 1,140 1,377 1,405 1,544 1,537 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 • September 2000 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2000 1999 2000 Transaction, and area or country 1998 1999 J M an a .— y Nov. Dec. Jan. Feb. Mar. Apr. Mayp U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192 2,340,659 1,537,662 240,329 256,414 263,947 293,110 402,373 309,778 268,454 2 Foreign sales 1,524,203 2,233,137 1,465,487 221,911 247,460 253,365 265,365 378,141 306,474 262,142 3 Net purchases, or sales (-) 49,989 107,522 72,175 18,418 8,954 10,582 27,745 24,232 3,304 6,312 4 Foreign countries 50,369 107,578 72,114 18,393 8,983 10,540 27,626 24,414 3,243 6,291 5 Europe 68,124 98,060 78,458 10,695 13,283 15,704 24,375 18,594 12,289 7,496 6 France 5,672 3,813 2,873 -369 66 -240 529 1,831 1,341 -588 7 Germany 9,195 13,410 22,376 2,467 1,587 5,633 5,425 4,532 3,431 3,355 8 Netherlands 8,249 8,083 512 1,375 1,640 -281 516 277 113 -113 9 Switzerland 5,001 5,650 9,091 384 1,495 2,926 4,804 -913 1,689 585 10 United Kingdom 23,952 42,902 15,723 3,966 3,080 2,246 6,685 4,794 558 1,440 11 Canada -4,689 -335 2,685 -958 -940 666 890 286 9 834 12 Latin America and Caribbean 757 5,187 -12,435 7,746 -4,735 -5,190 1,989 4,840 -11,441 -2,633 13 Middle East1 -1,449 -1,068 6,760 -1,197 465 677 1,182 2,125 2,070 706 14 Other Asia -12,351 4,447 -4,294 2,350 752 -1,645 -863 -1,717 53 -122 15 Japan -1,171 5,723 -6,813 630 211 -1,603 -1,115 -2,604 -446 -1,045 16 Africa 639 372 532 1 -18 151 -2 205 228 -50 W Other countries -662 915 408 -244 176 177 55 81 35 60 18 Nonmonetary international and regional organizations -380 -56 61 25 -29 42 119 -182 61 21 BONDS2 19 Foreign purchases 905,782 856,804 462,768 74,940 56,928 79,045 99,605 106,302 88,155 89,661 20 Foreign sales 727,044 602,109 344,407 50,839 41,321 58,889 69,476 76,979 70,900 68,163 21 Net purchases, or sales (—) 178,738 254,695 118,361 24,101 15,607 20,156 30,129 29,323 17,255 21,498 22 Foreign countries 179,081 255,097 118,430 24,172 15,626 20,161 30,147 29,422 17,260 21,440 23 Europe 130,057 140,674 63,715 11,639 7,500 10,083 17,063 19,454 7,640 9,475 24 France 3,386 1,870 1,700 53 269 -114 1,124 620 -34 104 25 Germany 4,369 7,723 895 1,327 -228 -618 702 348 288 175 26 Netherlands 3,443 2,446 536 133 183 -23 -97 94 279 283 27 Switzerland 4,826 4,553 672 429 462 -47 526 202 -18 9 28 United Kingdom 99,637 106,344 49,792 9,241 6,040 10,324 13,478 15,479 4,274 6,237 29 Canada 6,121 6,043 5,986 1,506 961 2,133 1,324 689 764 1,076 30 Latin America and Caribbean 23,938 60,861 25,456 6,652 4,094 4,658 9,659 3,680 4,724 2,735 31 Middle East1 4,997 1,979 707 -506 309 -86 -177 670 347 -47 32 Other Asia 12,662 42,842 21,424 4,566 2,591 2,623 2,545 4,506 3,753 7,997 33 Japan 8,384 17,541 8,367 2,297 1,437 1,113 1,173 2,010 580 3,491 34 Africa 190 1,411 611 146 257 677 -130 -11 35 40 35 Other countries 1,116 1,287 531 169 -86 73 -137 434 -3 164 36 Nonmonetary international and regional organizations -343 -402 -69 -71 -19 -5 -18 -99 -5 58 Foreign securities 37 Stocks, net purchases, or sales (—) 6,227 15,643 -6,695 3,816 -1,504 1,107 -8,882 -8,171 724 8,527 38 Foreign purchases 929,923 1,177,306 788,693 129,534 125,956 134,949 176,938 177,087 154,321 145,398 39 Foreign sales 923,696 1,161,663 795,388 125,718 127,460 133,842 185,820 185,258 153,597 136,871 40 Bonds, net purchases, or sales (-) -17,350 -5,676 -3,854 -512 3,872 -3,502 -1,986 -3,431 798 4,267 41 Foreign purchases 1,328,281 798,267 363,863 59,650 52,227 62,189 74,380 83,838 63,916 79,540 42 Foreign sales 1,345,631 803,943 367,717 60,162 48,355 65,691 76,366 87,269 63,118 75,273 43 Net purchases, or sales (—), of stocks and bonds .... -11,123 9,967 -10,549 3,304 2,368 -2,395 -10,868 -11,602 1,522 12,794 44 Foreign countries -10,778 9,682 -11,078 3,496 2,210 -2,555 -10,897 -11,701 1,357 12,718 45 Europe 12,632 59,247 1,748 2,238 5,001 754 -4,968 -5,922 1,774 10,110 46 Canada -1,901 -999 -5,392 -1,671 1,342 -471 -1,865 -1,400 -422 -1,234 47 Latin America and Caribbean -13,798 -4,726 -15,966 6,403 524 -4,868 -4,252 -701 -5,300 -845 48 -3,992 -42,961 7,821 -4,048 -4,945 1,951 -711 -4,085 5,696 4,970 49 Japan -1,742 -43,637 9,197 -4,453 -3,596 866 -879 -1,457 4,689 5,978 50 Africa -1,225 713 472 160 535 99 183 384 -143 -51 51 Other countries -2,494 -1,592 239 414 -247 -20 716 23 -248 -232 52 Nonmonetary international and regional organizations -345 285 529 -192 158 160 29 99 165 76 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 J M an a .— y Nov. Dec. Jan. Feb. Mar. Apr. Mayp 1 Total estimated 49,039 -9,953 5,737 -3,615 4,642 9,543 5,563 -16,871 14,520 -7,018 2 Foreign countries 46,570 -10,518 5,920 -3,802 4,566 9,578 5,770 -17,092 14,484 -6,820 3 Europe 23,797 -38,228 -15,358 8,643 -5,533 214 -2,443 -9,971 -632 -2,526 4 Belgium and Luxembourg 3,805 -81 -329 -357 -798 731 65 116 -498 -743 5 Germany 144 2,285 -2,114 510 607 1,706 -866 -1,352 -1,676 74 6 Netherlands —5,533 2,122 3,361 360 268 806 2,475 539 700 -1,159 7 Sweden 1,486 1,699 639 369 317 499 -100 263 -289 266 8 Switzerland 5,240 -1,761 -5,409 144 1,403 -3,407 -1,382 5 -288 -337 9 United Kingdom 14,384 -20,232 -7,216 5,837 -3,481 -450 -1,261 -5,150 -533 178 10 Other Europe and former U.S.S.R 4,271 -22,260 -4,290 1,780 -3,849 329 -1,374 -4,392 1,952 -805 11 Canada 615 7,348 1,204 -550 218 -582 8 640 1,819 -681 12 Latin America and Caribbean -3,662 -7,523 -967 -5,417 806 -2,409 6,844 -4,789 2,509 -3,122 13 Venezuela 59 362 121 154 -33 54 13 24 26 4 14 Other Latin America and Caribbean 9,523 1,661 -3,241 1,362 576 -3,837 2,482 -1,596 258 -548 15 Netherlands Antilles -13,244 -9,546 2,153 -6,933 263 1,374 4,349 -3,217 2,225 -2,578 16 Asia 27,433 29,359 20,782 -6,630 9,718 12,403 1,064 -2,943 11,166 -908 17 Japan 13,048 20,102 8,286 -4,378 8,263 1,297 -1,874 494 10,855 -2,486 18 Africa 751 -3,021 -92 -680 -541 -43 80 -19 4 -114 19 Other -2,364 1,547 351 832 -102 -5 217 -10 -382 531 20 Nonmonetary international and regional organizations 2,469 565 -183 187 76 -35 -207 221 36 -198 21 International 1,502 190 -178 125 75 -7 -194 151 30 -158 22 Latin American regional 199 666 62 -4 1 0 0 70 6 -14 MEMO 23 Foreign countries 46,570 -10,518 5,920 -3,802 4,566 9,578 5,770 -17,092 14,484 -6,820 24 Official institutions 4,123 -9,861 12,969 -2,325 4,962 6,763 1,777 -569 6,403 -1,405 25 Other foreign 42,447 -657 -7,049 -1,477 -396 2,815 3,993 -16,523 8,081 -5,415 Oil-exporting countries 26 Middle East2 -16,554 2,207 4,749 -2,050 -3,556 2,913 170 283 811 572 27 Africa3 2 0 0 0 -1 0 0 0 0 0 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria. countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • September 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 2000 11999977 11999999 Feb. Mar. Apr. May June July Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 62.78 60.94 59.60 57.84 59.49 58.70 2 Austria/schilling 12.206 12.379 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3 Belgium/franc 35.81 36.31 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4 Brazil/real 1.0779 1.1605 1.8207 1.7765 1.7424 1.7696 1.8278 1.8099 1.7982 5 Canada/dollar 1.3849 1.4836 1.4858 1.4512 1.4608 1.4689 1.4957 1.4770 1.4778 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2781 8.2786 8.2793 8.2781 8.2772 8.2794 7 Denmark/krone 6.6092 6.7030 6.9900 7.5725 7.7228 7.8872 8.2329 7.8501 7.9471 8 European Monetary Union/euro3 n.a. n.a. 1.0653 0.9834 0.9643 0.9449 0.9059 0.9505 0.9386 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 273.28 295.70 306.30 338.87 346.33 355.02 371.63 354.14 359.04 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7816 7.7848 7.7880 7.7907 7.7934 7.7969 14 India/rupee 36.36 41.36 43.13 43.65 43.64 43.68 44.08 44.76 44.84 15 Ireland/pound2 151.63 142.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italyflira 1,703.81 1,736.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 17 Japan/yen 121.06 130.99 113.73 109.39 106.31 105.63 108.32 106.13 108.21 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 9.427 9.289 9.394 9.506 9.834 9.419 20 Netherlands/guilder 1.9525 1.9837 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 New Zealand/dollar2 66.25 53.61 52.94 49.03 49.02 49.60 47.08 47.05 45.97 22 Norway/krone 7.0857 7.5521 7.8071 8.2374 8.4100 8.6272 9.0533 8.6807 8.7185 23 Portugal/escudo 175.44 180.25 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Singapore/dollar 1.4857 1.6722 1.6951 1.7028 1.7153 1.7096 1.7286 1.7277 1.7414 25 South Africa/rand 4.6072 5.5417 6.1191 6.3209 6.4675 6.6480 7.0238 6.9147 6.8971 26 South Korea/won 947.65 1,400.40 1,189.84 1,129.75 1,116.39 1,110.32 1,119.49 1,117.94 1,115.08 27 Spain/peseta 146.53 149.41 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 Sri Lanka/rupee 59.026 65.006 70.868 73.552 73.810 74.123 74.867 76.736 78.852 29 Sweden/krona 7.6446 7.9522 8.2740 8.6480 8.6971 8.7486 9.0925 8.7471 8.9640 30 Switzerland/franc 1.4514 1.4506 1.5045 1.6348 1.6636 1.6657 1.7190 1.6420 1.6519 31 Taiwan/dollar 28.775 33.547 32.322 30.806 30.724 30.520 30.772 30.831 30.984 32 Thailand/baht 31.072 41.262 37.887 37.759 37.923 37.993 38.951 39.087 40.318 33 United Kingdom/pound2 163.76 165.73 161.72 160.00 157.99 158.23 150.90 150.92 150.76 34 Venezuela/bolivar 488.87 548.39 606.82 659.44 666.82 672.73 680.00 680.96 685.86 Indexes4 NOMINAL 35 Broad (January 1997= 100)5 104.44 116.48 116.87 117.44 117.44 118.10 120.70 119.43 119.86 36 Major currencies (March 1973 = 100)6 91.24 95.79 94.07 95.31 95.64 96.31 99.31 96.74 97.68 37 Other important trading partners (January 1997=100)' 104.67 126.03 129.94 129.11 128.54 129.05 130.43 131.62 131.08 REAL 38 Broad (March 1973 = 100)5 91.33 99.36 98.77R 99.36R 100.07R 100.72R 102.76R 102.07R 102.60 39 Major currencies (March 1973 = 100)6 92.25 97.25 96.75 99.18 99.92R 100.63R 103.57 101.25R 102.44 40 Other important trading partners (March 1973 = 100)7 95.87 108.52 107.76R 105.86R 106.59R 107.17R 108.14R 109.61R 109.27 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 June 2000 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks June 30, 1999 November 1999 A64 September 30, 1999 February 2000 A64 December 31, 1999 May 2000 A64 March 31, 2000 August 2000 A64 Terms of lending at commercial banks August 1999 November 1999 A66 November 1999 February 2000 A66 February 2000 May 2000 A66 May 2000 August 2000 A66 Assets and liabilities of U.S. branches and agencies of foreign banks June 30, 1999 November 1999 A72 September 30, 1999 February 2000 A72 December 31, 1999 May 2000 A72 March 31, 2000 August 2000 All Pro forma balance sheet and income statements for priced service operations June 30, 1999 October 1999 A64 September 30, 1999 January 2000 A64 March 31, 2000 August 2000 A76 Residential lending reported under the Home Mortgage Disclosure Act 1998 September 1999 A64 1999 September 2000 A64 Disposition of applications for private mortgage insurance 1998 September 1999 A73 1999 September 2000 A73 Small loans to businesses and farms 1998 September 1999 A76 1999 September 2000 A76 Community development lending reported under the Community Reinvestment Act 1998 September 1999 A79 1999 September 2000 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • September 2000 4.34 RESIDENTIAL LENDING ACTIVITY OF FINANCIAL INSTITUTIONS COVERED BY HMDA, 1987-1999 Number Item 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1 Loans or applications (millions)2 3.42 3.39 3.13 6.59 7.89 12.01 15.38 12.19 11.23 14.81 16.41 24.66 22.90 2 Reporting institutions 9,431 9,319 9,203 9,332 9,358 9,073 9,650 9,858 9,539 9,328 7,925 7,836 7,832 3 Disclosure reports 13,033 13,919 14,154 24,041 25,934 28,782 35,976 38,750 36,611 42,946 47,416 57,294 56,966 1. Before 1990, includes only home purchase, home refinancing, and home improvement 2. Revised from preliminary data published in Glenn B. Canner and Dolores S. Smith, loans originated by covered institutions; beginning in 1990 (first year under revised reporting "Home Mortgage Disclosure Act: Expanded Data on Residential Lending," Federal Reserve system), includes such loans originated and purchased, applications approved but not ac- Bulletin, vol. 77 (November 1991), p. 861, to reflect corrections and the reporting of cepted by the applicant, applications denied or withdrawn, and applications closed because additional data. information was incomplete. SOURCE. FFIEC, Home Mortgage Disclosure Act. 4.35 APPLICATIONS FOR HOME LOANS REPORTED UNDER HMDA, 1999 By Type of Dwelling, Purpose of Loan, and Loan Program Thousands One- to four-family dwellings MMuullttiiffaammiillyy LLooaann pprrooggrraamm ddwweelllliinnggss11 AAllll Home purchase Home refinancing Home improvement All 1 FHA 1,061.1 312.0 117.5 1,490.5 4.5 1,495.0 2 VA 247.4 124.8 * 372.5 * 372.7 3 FSA/RHS 29.6 2.4 * 32.1 * 32.1 4 Conventional 7,088.0 8,941.9 1,931.9 17,961.8 44.2 18,006.0 5 Total 8,426.0 9,381.1 2,049.9 19,856.9 48.9 19,905.9 *Fewer than 500. SOURCE. FFIEC, Home Mortgage Disclosure Act. 1. Multifamily dwellings are those for five or more families. 4.36 HOME LOANS ORIGINATED BY LENDERS REPORTED UNDER HMDA, 1999 By Type of Dwelling, Purpose of Loan, and Type of Lender Percent One- to four-family dwellings Type of lender Home purchase Multifamily Home Home dwellings1 VA- refinancing improvement guaranteed 1 Commercial bank . . . 7.8 9.4 13.1 23.9 20.5 29.1 63.1 28.2 47.0 2 Savings association . 5.7 5.2 4.1 15.3 13.2 13.5 9.0 12.9 35.2 3 4 M Cr o e r d t i g t a u g n e io c n o mpany2 . 86. . 3 1 8 2 3 . . 1 2 82. . 6 2 58 2. .7 0 64 1 . . 6 7 53 3. . 5 8 1 1 3 5 . . 0 0 55 3. . 5 3 17 . . 5 4 5 Total 100 100 100 100 100 100 100 100 MEMO Distribution of loans 6 Number 832,890 194,963 22,147 3,799,772 4,849,772 4,386,235 956,996 10,193,003 34,511 7 Percent 8.1 1.9 .2 37.2 47.4 42.9 9.4 99.7 .3 *Less than .05 percent. 2. Comprises all covered mortgage companies, including those affiliated with a commer- 1. Multifamily dwellings are those for five or more families. cial bank, savings association, or credit union. SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A65 4.37 APPLICATIONS FOR LOANS FOR ONE- TO FOUR-FAMILY HOMES REPORTED UNDER HMDA, 1999 By Purpose of Loan and Characteristics of Applicant and Census Tract Home purchase Home refinancing Home improvement Government-backed Characteristic MEMO MEMO Percentage of Percentage of Number Percent characteristic's Number Percent characteristic's home purchase home purchase loans loans APPLICANT Racial/ethnic identity 1 American Indian or Alaskan Native . . . 6,714 .5 11.5 51,461 .8 33,746 8,415 2 Asian or Pacific Islander 22,180 1.8 9.9 201,932 3.2 90.1 189,537 2.9 23,523 1.7 .3 Black 179,746 14.4 24.0 568,126 9.0 76.0 679,352 10.5 164,342 12.1 4 Hispanic 198,866 16.0 31.2 437,672 6.9 68.8 446,316 6.9 133,704 9.8 5 White 785,232 63.1 13.9 4,850,742 76.6 86.1 4,901,857 75.6 983,698 72.4 6 Other 11,507 .9 10.6 96,915 1.5 89.4 106,081 1.6 20,102 1.5 7 All 40,539 3.3 24.0 128,527 2.0 76.0 129,958 2.0 25,302 1.9 8 Total 1,244,784 100.0 16.4 6,335,375 100.0 6,486,847 100.0 1,359,086 100.0 Income (percentage of MSA median)2 9 Less than 50 141,024 12.2 19.1 596,242 11.9 80.9 907,610 13.0 250,877 15.3 10 50-79 399,060 34.6 26.8 1,090,916 21.9 73.2 1,595,678 22.9 380,422 23.3 11 80-99 236,054 20.5 25.9 674,145 13.5 74.1 1,036,485 14.9 242,676 14.8 12 100-119 159,694 13.8 21.8 573,904 11.5 78.2 866,978 12.4 203,700 12.5 13 120 or more 217,868 18.9 9.6 2,056,188 41.2 90.4 2,572,822 36.9 557,773 34.1 14 Total 1,153,700 100.0 18.8 4,991,395 100.0 81.2 6,979,573 100.0 1,635,448 100.0 CENSUS TRACT Racial/ethnic composition (minorities as percentage of population) IS Less than 10 434,412 37.9 15.0 2,453,925 4488..33 85.0 3,513,605 46.2 767,546 46.9 16 10-19 262,128 22.9 19.0 1,120,865 22.1 81.0 1,472,702 19.4 296,058 18.1 17 20-49 289,133 25.2 22.7 984,971 19.4 77.3 1,419,505 18.7 290,181 17.7 18 50-79 92,449 8.1 22.9 312,057 6.1 77.1 582,416 7.7 124,932 7.6 19 80-100 67,578 5.9 24.6 207,650 4.1 75.4 618,205 8.1 157,528 9.6 20 Total 1,145,700 100.0 18.4 5,079,468 100.0 81.6 7,606,433 100.0 1,636,245 100.0 Income 3 21 Low 22,811 2.0 17.1 110,620 2.2 82.9 248,127 3.2 65,832 3.9 22 Moderate 182,992 15.8 21.7 661,040 13.0 78.3 1,189,330 15.6 295,466 17.6 23 Middle 671,004 57.9 20.9 2,536,395 49.8 79.1 3,975,192 52.0 882,284 52.7 24 Upper 282,792 24.4 13.7 1,781,137 35.0 86.3 2,230,910 29.2 431,637 25.8 25 Total 1,159,599 100.0 18.6 5,089,192 100.0 81.4 7,643,559 100.0 1,675,219 100.0 Location 4 26 Central city 520,710 44.4 20.2 2,055,163 39.8 79.8 3,149,164 40.7 725,389 42.5 27 Non-central city 653,347 55.6 17.3 3,114,603 60.2 82.7 4,597,855 59.3 979,978 57.5 28 Total 1,174,057 100.0 18.5 5,169,766 100.0 7,747,019 1,705,367 NOTE. Lenders reported 19,905,868 applications for home loans in 1999. Not all character- median family income for the MSA in which the tract is located. Categories are defined as istics were reported for all applications; thus the number of applications being distributed by follows: Low income, median family income for census tract less than 50 percent of median characteristic varies by characteristic. family income for MSA; Moderate income, median family income for census tract at least 50 1. Loans backed by the Federal Housing Administration, the Department of Veterans and less than 80 percent of MSA median; Middle income, median family income at least 80 Affairs, or the Farmers Home Administration. percent and less than 120 percent of MSA median; Upper income, median family income 120 2. Median family income of the metropolitan statistical area (MSA) in which the property percent and greater of MSA median. related to the loan is located. 4. For census tracts located in MSAs. 3. Census tracts are categorized by the median family income for the tract relative to the SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • September 2000 4.38 APPLICATIONS FOR LOANS FOR ONE- TO FOUR-FAMILY HOMES REPORTED UNDER HMDA, 1999 By Purpose of Loan, with Denial Rate, and by Characteristic of Applicant Home purchase HHoommee rreeffiinnaanncciinngg HHoommee iimmpprroovveemmeenntt ccchhh AAA aaarrr ppp aaa ppp cccttt lll eee iiiccc rrr aaa iiisss nnn ttt ttt iii ccc111 Government-backed 2 Conventional Distribution Denial rate Distribution Denial rate Distribution Denial rate Distribution Denial rate American Indian or Alaskan Native 1 One male 34.70 11.00 32.70 41.00 34.30 26.10 34.40 33.90 2 Two males 1.40 4.90 8.20 9.10 4.30 15.10 4.50 11.40 3 One female 28.30 11.00 27.30 49.20 24.30 25.10 27.30 35.60 4 Two females 1.90 10.10 2.70 46.90 1.40 24.00 1.60 24.80 5 One male and one female 33.60 11.20 29.00 47.50 35.60 20.70 32.20 28.70 6 Total3 100.00 9.40 100.00 42.10 100.00 23.00 100.00 31.50 Asian or Pacific Islander 1 One male 24.40 9.90 23.70 13.80 18.30 20.30 26.70 31.90 8 Two males 3.50 11.70 2.20 14.80 1.50 17.40 1.80 29.10 9 One female 16.30 9.50 17.00 14.10 16.40 19.50 19.80 30.60 10 Two females 2.50 10.30 1.60 14.20 1.30 16.60 1.10 31.50 11 One male and one female 53.40 9.30 55.50 10.00 62.40 15.30 50.60 24.20 12 Total3 100.00 9.50 100.00 11.80 100.00 17.00 100.00 27.80 Black 13 One male 28.60 12.90 29.50 47.10 26.70 29.90 27.70 43.90 14 Two males .90 13.30 1.10 47.50 .80 24.80 .80 38.70 15 One female 37.20 12.40 39.30 52.20 34.90 29.30 40.10 46.60 16 Two females 2.50 12.90 2.90 60.70 1.70 30.90 1.80 52.80 17 One male and one female 30.80 12.90 27.30 45.40 35.80 27.30 29.50 46.30 18 Total3 100.00 12.70 100.00 49.00 100.00 28.80 100.00 45.80 Hispanic 19 One male 27.30 10.20 33.30 38.90 22.70 25.70 35.40 40.10 20 Two males 6.00 10.00 2.90 36.80 2.00 21.80 1.50 40.40 21 One female 14.20 10.30 18.70 37.30 17.10 23.30 24.60 40.80 22 Two females 2.40 12.20 1.80 41.60 1.40 23.50 1.00 43.50 23 One male and one female 50.20 9.60 43.30 30.50 56.80 21.10 37.50 38.60 24 Total3 100.00 10.00 100.00 35.00 100.00 22.60 100.00 39.60 White 25 One male 27.40 8.20 25.80 30.70 21.80 19.90 23.30 27.80 26 Two males 1.50 7.70 1.30 26.60 1.00 15.60 .90 24.90 27 One female 18.00 7.50 19.20 31.20 16.10 18.20 18.80 28.80 28 Two females 1.30 7.70 1.20 35.50 .80 17.50 1.00 32.30 29 One male and one female 51.80 7.40 52.40 20.60 60.40 14.30 56.00 20.00 30 Total3 100.00 7.60 100.00 25.50 100.00 16.20 100.00 23.70 All 31 One male 27.60 9.30 26.70 32.80 22.40 21.70 25.20 31.90 32 Two males 2.20 9.20 1.50 28.00 1.10 17.30 1.00 28.40 33 One female 20.20 9.20 21.00 34.90 18.20 20.90 22.10 34.30 34 Two females 1.70 10.00 1.40 40.10 .90 20.80 1.10 37.60 35 One male and one female 48.30 8.30 49.40 22.20 57.40 15.70 50.60 23.50 36 Total3 100.00 8.80 100.00 28.00 100.00 18.10 100.00 28.20 1. Applicants are categorized by race of first applicant listed on Loan Application Register, 3. Includes all applicants from racial or ethnic group regardless of whether gender was except for joint white and minority applications, which are not shown in this table. reported. 2. Loans backed by the Federal Housing Administration, the Department of Veterans SOURCE. FFIEC, Home Mortgage Disclosure Act. Affairs, or the Farmers Home Administration. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A67 4.39 APPLICATIONS FOR HOME LOANS REPORTED UNDER HMDA, 1999 By Loan Program and Size of Dwelling Percent One- to four-family dwellings Home purchase Home refinancing Type of loan Approved Approved Approved Approved and but not Denied Withdrawn File closed Total and but not Denied Withdrawn File closed Total accepted accepted accepted accepted 1 FHA 78.5 2.8 8.8 8.3 1.6 100 58.7 8.5 10.7 15.7 6.4 100 2 VA 78.8 2.8 8.8 8.2 1.4 100 62.1 7.1 7.4 17.2 6.2 100 3 FSA/RHS 74.9 2.1 12.7 9.1 1.2 100 23.5 3.7 30.9 35.0 6.8 100 4 Conventional 53.6 10.0 27.9 7.0 1.5 100 46.1 10.9 23.7 14.7 4.5 100 5 All 57.6 8.8 24.9 7.2 1.5 100 46.8 10.8 23.1 14.7 4.6 100 One- to four-family dwellings Home improvement Approved Approved Approved Approved and but not Denied Withdrawn File closed Total and but not Denied Withdrawn File closed Total accepted accepted accepted accepted 1 FHA 18.9 13.8 62.3 4.7 .3 100 52.8 11.2 16.8 15.4 3.8 100 2 VA 56.6 10.8 17.1 14.3 1.0 100 63.4 4.7 13.6 13.1 5.2 100 3 FSA/RHS 25.4 2.5 38.1 33.5 .5 100 100.0 * * * * 100 4 Conventional 48.4 12.1 32.2 6.6 .8 100 72.4 3.6 12.6 7.7 3.7 100 5 All 46.7 12.2 33.9 6.5 .8 100 70.5 4.3 13.0 8.4 3.7 100 NOTE. Loans approved and accepted were approved by the lender and accepted by the *Less than .05 percent, applicant. Loans approved but not accepted were approved by the lender but not accepted by 1. Multifamily dwellings are those for five or more families, the applicant. Applications denied were denied by the lender, and applications withdrawn SOURCE. FFIEC, Home Mortgage Disclosure Act. were withdrawn by the applicant. When an application was left incomplete by the applicant, the lender reported file closed and took no further action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • September 2000 4.40 APPLICATIONS FOR ONE- TO FOUR-FAMILY HOME LOANS REPORTED UNDER HMDA, 1999 By Disposition of Loan and Characteristics of Applicant and Census Tract A. Home Purchase Loans Percent Government-backed 1 Conventional Characteristic Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total APPLICANT Racial or ethnic identity 1 American Indian or Alaskan Native .... 79.2 9.4 9.4 2.0 100 51.4 42.1 5.4 1.2 100 2 Asian or Pacific Islander . 79.7 9.5 9.2 1.7 100 76.6 11.8 9.1 2.6 100 3 Black 76.1 12.7 9.2 2.0 100 42.1 49.0 7.1 1.8 100 4 Hispanic 78.9 10.0 9.1 2.0 100 55.6 35.0 7.5 1.9 100 5 White 83.9 7.6 7.1 1.3 100 67.4 25.5 5.9 1.2 100 6 Other 76.9 11.5 9.3 2.2 100 53.8 35.4 9.3 1.5 100 7 Joint2 82.9 8.3 7.5 1.3 100 68.9 22.5 7.0 1.5 100 Income ratio (percentage of MSA median 8 Less than 50 76.5 12.9 8.5 2.0 100 49.1 43.1 6.2 1.6 100 9 American Indian or Alaskan Native . . 73.4 12.7 9.8 4.0 100 62.9 31.2 4.6 1.3 100 10 Asian or Pacific Islander 75.3 13.5 9.2 2.1 100 68.3 20.3 8.8 2.6 100 11 Black 73.2 15.4 9.0 2.3 100 40.2 50.3 7.2 2.3 100 12 Hispanic 77.7 12.2 8.0 2.1 100 49.1 43.1 6.0 1.9 100 13 White 78.7 11.7 7.8 1.8 100 51.7 42.4 4.8 1.1 100 14 Other 71.8 14.9 10.7 2.6 100 40.6 51.8 6.3 1.3 100 15 Joint2 76.5 14.1 7.9 1.4 100 49.8 42.1 6.0 2.2 100 16 50-79 82.9 8.5 7.1 1.4 100 63.1 28.4 6.7 1.7 100 17 American Indian or Alaskan Native . . 82.7 8.4 7.0 1.9 100 63.8 28.6 5.7 1.9 100 18 Asian or Pacific Islander 81.8 9.2 7.6 1.4 100 76.2 13.3 8.1 2.4 100 19 Black 78.5 11.7 8.1 1.8 100 49.9 38.9 8.6 2.6 100 20 Hispanic 81.7 9.4 7.2 1.7 100 57.4 33.8 6.9 1.9 100 21 White 85.3 7.2 6.3 1.2 100 66.9 26.2 5.5 1.3 100 22 Other 79.5 10.9 7.6 2.1 100 56.9 34.3 7.0 1.7 100 23 Joint2 82.4 9.2 7.0 1.4 100 60.1 32.1 6.3 1.6 100 24 80-119 84.6 7.3 6.8 1.3 100 72.4 18.6 7.3 1.8 100 25 American Indian or Alaskan Native . . 84.0 6.8 7.9 1.3 100 68.8 21.5 8.0 1.7 100 26 Asian or Pacific Islander 82.3 7.8 8.3 1.5 100 78.8 10.4 8.2 2.6 100 27 Black 79.7 10.8 7.9 1.6 100 56.1 31.4 9.7 2.8 100 28 Hispanic 80.9 9.5 7.9 1.7 100 63.2 26.4 8.1 2.3 100 29 White 87.1 6.0 5.9 1.1 100 76.0 16.4 6.1 1.4 100 30 Other 62.3 8.3 6.6 1.6 100 24.7 8.1 2.8 .8 100 31 Joint2 85.3 7.2 6.5 1.0 100 72.1 19.6 6.7 1.5 100 32 120 or more 84.4 6.7 7.5 1.4 100 80.7 10.2 7.3 1.8 100 33 American Indian or Alaskan Native . . 82.2 8.3 8.3 1.2 100 74.1 14.4 9.0 2.5 100 34 Asian or Pacific Islander 80.6 8.9 8.8 1.7 100 79.8 8.9 8.6 2.7 100 35 Black 79.6 10.3 8.2 1.9 100 65.4 21.7 10.0 2.8 100 36 Hispanic 79.1 8.1 10.6 2.2 100 71.9 16.2 9.4 2.6 100 37 White 87.3 5.6 6.1 1.1 100 83.4 8.7 6.3 1.5 100 38 Other 79.4 10.3 8.2 2.1 100 75.5 13.6 8.7 2.2 100 39 Joint2 85.8 6.3 6.7 1.2 100 81.5 9.7 7.2 1.7 100 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 40 Less than 10 85.3 7.2 6.3 1.1 100 75.1 17.0 6.5 1.5 100 41 10-19 83.8 7.7 7.1 1.4 100 71.4 18.9 7.8 1.9 100 42 20-49 81.3 9.1 8.0 1.6 100 65.7 23.6 8.6 2.1 100 43 50-79 77.9 11.1 9.1 1.9 100 60.2 27.8 9.5 2.5 100 44 80-100 73.6 13.1 10.7 2.6 100 53.0 33.0 11.1 2.8 100 Income4 45 Low 72.6 13.7 11.2 2.5 100 52.1 34.7 10.5 2.7 100 46 Moderate 79.5 10.2 8.4 1.9 100 58.7 31.0 8.3 2.0 100 47 Middle 83.3 8.2 7.2 1.4 100 69.0 22.1 7.3 1.7 100 48 Upper 83.8 7.4 7.5 1.3 100 78.7 11.9 7.5 1.8 100 Location5 49 Central city 81.7 8.9 7.8 1.6 100 68.1 21.9 8.1 2.0 100 50 Non-central city 83.2 8.0 7.3 1.4 100 72.2 19.0 7.2 1.7 100 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure A69 4.40 APPLICATIONS FOR ONE- TO FOUR-FAMILY HOME LOANS REPORTED UNDER HMDA, 1999 By Disposition of Loan and Characteristics of Applicant and Census Tract—Continued B. Home Refinancing and Home Improvement Loans Percent Home refinancing Home improvement CChhaarraacctteerriissttiicc Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total APPLICANT Racial or ethnic identity 1 American Indian or Alaskan Native .... 53.2 23.0 16.7 7.0 100 63.2 31.5 4.8 .4 100 2 Asian or Pacific Islander . 64.7 17.0 12.4 5.9 100 65.8 27.8 5.4 1.1 100 3 Black 48.2 28.8 15.2 7.9 100 49.9 45.8 3.9 .4 100 4 Hispanic 55.6 22.6 14.6 7.2 100 56.5 39.6 3.4 .5 100 5 White 68.0 16.2 11.4 4.4 100 72.9 23.7 3.1 .4 100 6 Other 49.2 28.4 18.3 4.1 100 57.4 36.8 5.3 .6 100 7 Joint2 66.5 17.1 11.8 4.7 100 70.3 25.8 3.6 .4 100 Income ratio (percentage of MSA median )3 8 Less than 50 44.9 32.9 16.0 6.2 100 44.3 49.4 5.7 .6 100 9 American Indian or Alaskan Native . . 43.2 30.8 18.0 8.0 100 53.7 41.5 4.6 .2 100 10 Asian or Pacific Islander 49.2 25.2 15.6 10.0 100 52.5 42.1 4.3 1.1 100 11 Black 42.0 32.5 15.6 9.8 100 44.3 51.4 4.0 .4 100 12 Hispanic 44.4 30.1 16.0 9.6 100 45.6 50.4 3.5 .6 100 13 White 54.8 24.6 13.8 6.9 100 58.4 37.9 3.4 .3 100 14 Other 34.9 40.3 21.6 3.2 100 40.5 54.7 4.5 .3 100 15 Joint2 51.3 27.6 13.6 7.5 100 50.2 45.5 3.9 .4 100 16 50-79 53.6 26.3 14.7 5.3 100 52.1 41.4 5.9 .6 100 17 American Indian or Alaskan Native . . 51.8 25.3 15.5 7.4 100 60.4 34.2 4.9 .5 100 18 Asian or Pacific Islander 59.5 19.5 13.9 7.1 100 59.2 35.5 4.6 .8 100 19 Black 46.3 30.2 15.2 8.3 100 48.2 47.5 3.9 .4 100 20 Hispanic 52.1 25.5 14.6 7.9 100 50.1 45.7 3.6 .6 100 21 White 63.5 18.8 12.3 5.4 100 66.9 29.6 3.1 .4 100 22 Other 46.8 31.1 18.0 4.1 100 52.2 42.2 5.0 .5 100 23 Joint2 58.9 22.1 12.9 6.1 100 58.6 38.2 3.1 .1 100 24 80-119 59.2 22.4 13.7 4.6 100 60.1 32.7 6.5 .7 100 25 American Indian or Alaskan Native . . 56.1 21.6 14.9 7.4 100 68.1 27.3 4.4 .3 100 26 Asian or Pacific Islander 64.5 17.1 12.8 5.7 100 68.3 26.7 4.0 .9 100 27 Black 48.6 28.7 15.1 7.7 100 52.5 43.3 3.9 .4 100 28 Hispanic 54.3 24.2 14.4 7.1 100 55.5 40.5 3.4 .5 100 29 White 68.1 15.9 11.4 4.5 100 73.9 22.8 3.0 .4 100 30 Other 6.0 2.9 1.9 .5 100 4.9 2.6 .4 .0 100 31 Joint2 63.7 19.0 12.2 5.0 100 67.5 28.4 3.6 .4 100 32 120 or more 67.4 17.1 11.6 3.8 100 68.8 23.5 6.7 .9 100 33 American Indian or Alaskan Native . . 62.4 18.7 12.8 6.1 100 75.1 19.8 4.4 .7 100 34 Asian or Pacific Islander 69.8 14.9 10.6 4.7 100 73.1 20.9 4.6 1.3 100 35 Black 53.5 26.0 13.8 6.7 100 58.6 37.0 3.9 .4 100 36 Hispanic 62.7 18.2 13.1 6.1 100 64.1 32.5 3.0 .5 100 37 White 74.5 12.5 9.5 3.4 100 81.0 15.6 3.0 .5 100 38 Other 61.6 20.6 13.8 4.0 100 68.4 26.0 5.1 .6 100 39 Joint2 71.5 14.5 10.3 3.8 100 76.8 19.4 3.4 .5 100 CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 40 Less than 10 62.9 19.6 13.5 4.0 100 65.1 27.0 7.2 .7 100 41 10-19 59.6 21.4 14.4 4.6 100 59.6 32.9 6.6 1.0 100 42 20-49 54.3 24.9 15.6 5.3 100 53.6 39.6 5.9 .9 100 43 50-79 49.1 27.8 16.8 6.3 100 48.5 45.1 5.6 .8 100 44 80-100 44.7 31.3 17.2 6.8 100 45.9 47.7 5.7 .7 100 Income4 45 Low 44.6 32.1 17.3 6.1 100 44.0 49.5 5.7 .7 100 46 Moderate 49.6 28.4 16.4 5.6 100 49.7 43.8 5.8 .7 100 47 Middle 57.5 22.9 14.9 4.7 100 59.1 33.7 6.6 .7 100 48 Upper 65.5 17.5 12.9 4.2 100 66.0 26.2 6.8 1.0 100 Location5 49 Central city 55.6 24.0 15.2 5.1 100 55.3 38.0 6.0 .8 100 50 Non-central city 59.9 21.4 14.2 4.5 100 61.1 31.4 6.8 .8 100 NOTE. Applicant income ratio is applicant income as a percentage of MSA median. MSA median family income for the MSA in which the tract is located. Categories are defined as median is median family income of the metropolitan statistical area (MSA) in which the follows: Low income, median family income for census tract less than 50 percent of median property related to the loan is located. family income for MSA; Moderate income, median family income for census tract at least 50 1. Loans backed by the Federal Housing Administration, the Department of Veterans and less than 80 percent of MSA median; Middle income, median family income at least 80 Affairs, or the Farmers Home Administration. percent and less than 120 percent of MSA median; Upper income, median family income 120 2. White and minority. percent and greater of MSA median. 3. MSA median is median family income of the metropolitan statistical area (MSA) in 5. For census tracts located in MSAs. which the property related to the loan is located. SOURCE. FFIEC, Home Mortgage Disclosure Act. 4. Census tracts are categorized by the median family income for the tract relative to the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • September 2000 4.41 HOME LOANS SOLD, 1999 By Purchaser and Characteristics of Borrower and Census Tract Fannie Mae Ginnie Mae Freddie Mac FAMC Commercial bank CChhaarraacctteerriissttiicc Number Percent Number Percent Number Percent Number Percent Number Percent 1 All 1,815,193 100.0 1,145,948 100.0 1,331,081 100.0 2,398 100.0 152,788 100.0 BORROWER Racial or ethnic identity 4,317 .3 3,174 .5 2,803 .3 74 7.4 535 .4 2 American Indian or Alaskan Native .... 53,853 4.0 12,127 1.7 36,591 3.4 12 1.2 3,154 2.6 3 Asian or Pacific Islander 47,838 3.5 91,563 13.1 30,670 2.9 188 18.7 10,072 8.2 4 Black 67,566 5.0 100,477 14.4 46,137 4.3 132 13.1 11,514 9.4 5 Hispanic 1,138,734 83.9 458,920 65.9 910,093 85.6 575 57.2 9933,,227744 76.4 b White 13,901 1.0 7,512 1.1 14,315 1.3 10 1.0 888822 .7 1 Other 30,451 2.2 22,743 3.3 22,266 2.1 15 1.5 2,661 2.2 8 1,356,660 100.0 696,516 100.0 1,062,875 100.0 1,006 100.0 122,092 100.0 9 Total Income ratio (percentage of MSA median) 79,607 6.1 63,842 10.5 62,778 6.4 103 10.4 8,838 7.7 1100 Less than 50 246,010 18.9 202,597 33.3 186,914 19.1 190 19.2 22,887 20.0 11 50-79 196,390 15.1 128,495 21.1 151,218 15.4 146 14.8 16,376 14.3 12 80-99 188,086 14.5 91,045 15.0 139,411 14.2 104 10.5 14,585 12.8 13 100-119 590,217 45.4 112222,,778855 20.2 443399,,880044 44.9 446 45.1 5511,,550077 45.1 14 120 or more 1,300,310 100.0 608,764 100.0 980,125 100.0 989 100.0 114,193 100.0 15 Total CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 856,529 54.4 378,854 36.5 643,553 56.6 503 29.5 66,138 50.4 1166 Less than 10 344,013 21.9 242,700 23.4 244,382 21.5 256 15.0 29,646 22.6 1/ 10-19 262,390 16.7 271,030 26.1 180,883 15.9 418 24.5 23,016 17.5 18 20-49 72,994 4.6 83,890 8.1 46,865 4.1 235 13.8 6,462 4.9 19 50-79 3377,,661177 2.4 6600,,119933 5.8 2222,,004422 1.9 292 17.1 55,,888888 44..55 20 80-100 1,573,543 100.0 1,036,667 100.0 1,137,725 100.0 1,704 100.0 131,150 100.0 21 Total Income 14,310 .9 17,373 1.7 9,017 .8 83 4.8 2,074 1.5 2222 Low 131,336 8.3 151,394 14.5 90,188 7.9 337 19.4 14,849 10.9 23 Moderate 791,738 50.2 608,852 58.4 579,428 50.9 980 56.4 65,577 48.3 24 Middle 663388,,883399 40.5 226644,,668866 25.4 446600,,773300 40.4 338 19.4 5533,,330044 3399..33 2B Upper 1,576,223 100.0 1,042,305 100.0 1,139,363 100.0 1,738 100.0 135,804 100.0 26 Total Location 572,573 36.3 440,651 42.3 405,190 35.5 802 46.1 51,961 38.2 2277 Central city 11,,000044,,552211 63.7 660011,,994499 57.7 773344,,666677 64.5 993366 5533..99 8833,,993333 6611..88 28 Non-central city 11,,557777,,009944 100.0 11,,004422,,660000 100.0 11,,113399,,885577 100.0 11,,773388 100.0 113355,,889944 110000..00 2299 TToottaall Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Home Mortgage Disclosure All 4.41 HOME LOANS SOLD, 1999 By Purchaser and Characteristics of Borrower and Census Tract—Continued Savings bank or savings and loan Life insurance company association Characteristic 60,396 5,650 2,340,625 BORROWER Racial or ethnic identity 219 .5 41 2,754 .4 10,000 .5 31 American Indian or Alaskan Native 1,189 2.5 77 1.6 36,853 5.3 52,833 2.9 32 Asian or Pacific Islander 3,721 8.0 205 4.1 45,265 6.5 191,755 10.5 33 Black 2,358 5.1 213 4.3 46,612 6.7 154,769 8.5 34 Hispanic 37,818 81.1 4,312 542,568 77.5 1,349,868 73.9 35 White 412 .9 29 9,502 1.4 22,156 1.2 36 Other 928 2.0 90 1.8 16,436 2.3 45,981 2.5 37 Joint 46,645 100.0 4,967 100.0 699,990 100.0 1,827,362 100.0 38 Total Income ratio (percentage of MSA median)1 2,642 6.5 240 5.5 52,398 8.0 188,909 11.1 39 Less than 50 8,173 20.0 982 22.6 128,950 19.6 406,288 23.9 40 50-79 5,976 14.6 746 17.1 80,666 12.3 259,073 15.2 41 80-99 5,240 12.8 640 14.7 71,622 10.9 209,076 12.3 42 100-119 18,890 46.2 1,746 40.1 323,979 49.3 636,921 37.5 43 120 or more 40,921 100.0 4,354 100.0 657,615 100.0 1,700,267 100.0 44 Total CENSUS TRACT Racial or ethnic composition (minorities as percentage of population) 29,652 57.4 3,525 73.2 393,061 45.7 858,111 43.3 45 Less than 10 9,708 18.8 701 14.6 203,357 23.6 439,815 22.2 46 10-19 7,732 15.0 422 170,652 19.8 420,483 21.2 47 20-49 2,500 4.8 117 2.4 53,371 6.2 142,145 7.2 48 50-79 2,090 4.0 51 1.1 40,213 4.7 123,325 6.2 49 80-100 51,682 100.0 4,816 100.0 860,654 100.0 1,983,879 100.0 50 Total Income2 940 1.8 67 1.4 17,984 2.1 49,591 2.5 51 Low 5,211 10.1 382 7.8 100,697 11.7 281,103 14.1 52 Moderate 23,795 46.0 2,769 56.9 384,307 44.5 1,014,616 51.0 53 Middle 21,779 42.1 1,650 33.9 361,353 41.8 644,178 32.4 54 Upper 51,725 100.0 4,868 100.0 864,341 100.0 1,989,488 100.0 55 Total Location 17,215 33.2 1,842 37.8 346,856 40.1 827,397 41.6 56 Central city 34,586 66.8 3,027 62.2 518,041 59.9 1,163,257 58.4 57 Non-central city 51,801 4,869 100.0 864,897 1,990,654 58 Total Note. Includes securitized loans. See also notes to table 4.40. 2. Census tracts are categorized by the median family income for the tract relative to the Fannie Mae—Federal National Mortgage Association median family income for the MSA in which the tract is located. Categories are defined as Ginnie Mae—Government National Mortgage Association follows: Low income, median family income for census tract less than 50 percent of median Freddie Mac—Federal Home Loan Mortgage Corporation family income for MSA; Moderate income, median family income for census tract at least 50 FmHA—Farmers Home Administration and less than 80 percent of MSA median; Middle income, median family income at least 80 Affiliate—Affiliate of institution reporting the loan percent and less than 120 percent of MSA median; Upper income, median family income 120 1. Median family income of the metropolitan statistical area (MSA) in which the property percent and greater of MSA median. related to the loan is located. SOURCE. FFIEC, Home Mortgage Disclosure Act. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • September 2000 4.411 LENDER SHARE AND DOLLAR VOLUME OF RESIDENTIAL-MORTGAGE ORIGINATIONS, 1993-99 Mortgage companies YYeeaarr SSaavviinnggss iinnssttiittuuttiioonnss22 CCoommmmeerrcciiaall bbaannkkss CCrreeddiitt uunniioonnss DDoollllaarr vvoolluummee o S r u s b a s v i i d n i g a s r ie i s n s o t f i tu b t a io n n ks s 3 Independently owned4 ((bbiilllliioonnss ooff ddoollllaarrss)) Conventional single-family 1 1993 23 19 19 35 4 871 2 1994 26 21 18 30 5 553 3 1995 26 20 25 26 3 452 4 1996 27 18 26 26 4 548 5 1997 26 15 27 29 3 610 6 1998 25 12 32 28 3 1,124 7 1999 23 14 31 28 4 892 FHA, VA, and RHS single-family 8 1993 9 8 25 57 1 156 9 1994 10 9 28 52 1 90 10 1995 10 8 33 48 1 76 11 1996 10 7 33 49 1 96 12 1997 9 5 37 49 1 100 13 1998 7 4 39 50 1 149 14 1999 6 4 42 47 1 131 Total, single-family 15 1993 21 18 20 39 4 1,027 16 1994 24 19 20 35 5 643 17 1995 24 18 26 29 3 528 18 1996 24 16 27 30 3 644 19 1997 24 14 29 31 3 710 20 1998 23 11 32 31 3 1,273 21 1999 21 23 33 7 4 1,022 Total, multifamily 22 1993 52 33 5 4 3 16 23 1994 56 34 3 4 3 17 24 1995 53 35 4 7 4 13 25 1996 50 34 6 12 3 16 26 1997 48 32 6 15 3 19 27 1998 44 27 11 38 3 25 28 1999 37 26 9 32 3 31 Total, residential 29 1993 21 18 19 29 4 1,043 30 1994 25 19 19 29 5 660 31 1995 24 19 25 31 3 541 32 1996 25 17 26 29 3 660 33 1997 24 14 26 28 3 729 34 1998 23 12 28 32 3 1,297 35 1999 21 13 32 32 4 1,052 NOTE. Coverage of depository institutions declined in 1997 because of an increase in the 3. Includes mortgage company subsidiaries of a bank holding company or a service asset size threshold for exempt institutions from $10 million to $28 million. corporation. 1. Based on the dollar volume of originations reported under the Home Mortgage Disclo- 4. Coverage of independently owned mortgage companies expanded in 1993 when those sure Act. Originations insured or guaranteed by the Rural Housing Service (RHS) include the companies with less than $10 million in assets but with 100 or more home-purchase former Farmers Home Administration. originations were included. 2. Includes savings and loan associations and savings banks. SOURCE. Home Mortgage Disclosure Act, 1990-98. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Private Mortage Insurance A73 4.42 APPLICATIONS RECEIVED AND POLICIES WRITTEN FOR PRIVATE MORTGAGE INSURANCE, 1996-99 By Insurance Company 1996 1997 1998 1999 CCoommppaannyy Applications P w o r l i i t c te ie n s Applications P w o r l i i t c t i e e n s Applications P w o r l i i t c t i e e n s Applications P w o r l i i t c te ie n s 1 Amerin Guaranty 61,401 61,378 60,149 60,105 116,744 116,725 * * 2 Commonwealth Mortgage Assurance 151,261 106,768 152,874 112,513 212,097 165,336 * * 3 Radian1 * * * * * * 317,775 256,924 4 GE Capital Mortgage Insurance 269,133 199,728 210,493 160,847 302,606 244,496 304,365 221,970 5 Mortgage Guaranty Insurance 360,167 283,897 325,336 265,566 436,225 356,419 479,425 377,195 6 PMI Mortgage Insurance 181,904 142,896 152,129 119,181 255,656 211,074 267,470 212,177 7 Republic Mortgage Insurance 158,731 123,289 132,204 102,221 183,240 145,023 157,794 144,618 8 Triad Guaranty Insurance 23,942 19,143 36,908 31,129 46,568 38,518 43,633 33,116 9 United Guaranty 170,868 132,661 147,256 120,182 214,162 182,327 244,637 204,667 10 Total 1,377,407 1,069,760 1,217,349 971,744 1,767,298 1,459,818 1,815,099 1,450,667 1. Radian is the result of a merger between Amerin Guaranty and Commonwealth SOURCE. Federal Financial Institutions Examination Council. Mortgage Insurance in 1999. 4.43 APPLICATIONS RECEIVED AND POLICIES WRITTEN FOR PRIVATE MORTGAGE INSURANCE, 1999 By Purpose of Loan and Insurance Company Percent Home purchase Home refinance Total CCoommppaannyy Applications Policies written Applications Policies written Applications Policies written 1 Radian1 17.2 17.4 18.4 18.7 17.5 17.7 2 GE Capital Mortgage Insurance 16.7 15.3 16.8 15.2 16.8 15.3 3 Mortgage Guaranty Insurance 25.2 24.8 29.4 29.4 26.4 26.0 4 PMI Mortgage Insurance 15.0 15.0 14.0 13.5 14.7 14.6 5 Republic Mortgage Insurance 9.1 10.2 7.8 9.4 8.7 10.0 6 Triad Guaranty Insurance 2.5 2.3 2.3 2.1 2.4 2.3 7 United Guaranty 14.3 15.0 11.3 11.6 13.5 14.1 8 Total 100.0 100.0 100.0 100.0 100.0 100.0 MEMO 9 Number of applications or policies 1,305,286.0 1,069,307.0 509,813.0 381,360.0 1,815,099.0 1,450,667.0 1. Radian is the result of a merger between Amerin Guaranty and Commonwealth SOURCE. Federal Financial Institutions Examination Council. Mortgage Insurance in 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • September 2000 4.44 APPLICATIONS FOR PRIVATE MORTGAGE INSURANCE, 1999 By Purpose of Loan and Characteristic of Applicant and Census Tract Home purchase Home refinance CChhaarraacctteerriissttiicc Number Percent Number Percent APPLICANT Race or ethnic group 1 American Indian or Alaskan Native 2,915 .3 1,015 .3 2 Asian or Pacific Islander 29,417 3.1 8,234 2.5 3 Black 46,541 4.9 17,869 5.5 4 Hispanic 62,902 6.6 19,766 6.1 5 White 751,132 78.9 258,534 79.9 6 Other 38,952 4.1 11,141 3.4 2200,,229922 2.1 77,,00..3355 2.2 7 Joint (white and minority) 995522,,115511 100.0 332233,,559944 100.0 8 Total Income (percentage of MSA median 53,254 5.2 15,564 3.9 9 Less than 50 204,852 19.9 71,731 18.1 10 50-79 164,203 15.9 64,207 16.2 11 80-99 155,348 15.1 62,719 15.8 12 100-119 445522,,550088 43.9 118822,,556677 46.0 13 120 or more 11,,003300,,116655 100.0 339966,,778888 100.0 14 Total CENSUS TRACT Racial composition (minorities as percentage of population) 545,744 52.3 209,845 49.5 15 Less than 10 227,927 21.9 90,435 21.3 16 10-19 182,708 17.5 79,349 18.7 17 20-49 55,229 5.3 25.531 6.0 18 50-79 3300,,992222 3.0 1188,,885533 4.4 19 80-100 11,,004422,,553300 100.0 442244,,001133 100.0 20 Total Income2 14,360 1.4 5,240 1.2 21 Lower 103,356 9.9 44,599 10.5 22 Moderate 526,006 50.5 229,748 54.2 23 Middle 339977,,770022 38.2 114444,,115555 34.0 24 Upper 11,,004411,,442244 100.0 442233,,774422 100.0 25 Total Location3 414,222 39.4 155,070 36.2 26 Central city 663377,,554444 60.6 227733,,337788 63.8 27 Non-central city 11,,005511,,776666 100.0 442288,,444488 100.0 28 Total NOTE. Not all characteristics were reported for all loans. 3. For census tracts located in MSAs. 1. MSA median is median family income of the metropolitan statistical area (MSA) in SOURCE. Federal Financial Institutions Examination Council, which the property related to the loan is located. 2. Lower: median family income for census tract less than 50 percent of median family income for MSA. Moderate-. 50 percent to less than 80 percent. Middle: 80 percent to less than 120 percent. Upper: 120 percent or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Private Mortgage Insurance A75 4.45 APPLICATIONS FOR PRIVATE MORTGAGE INSURANCE, 1999 By Purpose of Loan, Disposition of Application, Characteristic of Applicant, and Census Tract Percent Home purchase Home refinance CChhaarraacctteerriissttiicc Approved Denied Withdrawn File closed Total Approved Denied Withdrawn File closed Total 1 Total 90.4 5.1 3.1 1.3 100.0 90.7 4.7 3.3 1.2 100.0 APPLICANT Race or ethnic group 2 American Indian or Alaskan Native 86.8 8.1 4.0 1.1 100.0 87.4 6.1 5.2 1.3 100.0 3 Asian or Pacific Islander 87.8 6.5 4.4 1.4 100.0 88.8 5.2 4.7 1.3 100.0 4 Black 82.9 11.0 4.4 1.7 100.0 85.4 8.7 4.2 1.6 100.0 5 Hispanic 85.5 8.6 4.4 1.5 100.0 87.6 6.7 4.2 1.5 100.0 6 White 90.9 5.0 3.0 1.1 100.0 90.5 4.9 3.4 1.2 100.0 7 Other 97.8 1.2 .9 .1 100.0 97.4 1.3 1.2 .1 100.0 8 Joint (white and minority) 89.6 6.0 3.4 1.1 100.0 90.7 5.0 3.1 1.2 100.0 Income (percentage of MSA median)' Less than 50 88.0 7.8 3.1 1.2 100.0 85.7 8.8 3.9 1.7 110000..00 10 50-79 91.6 4.8 2.6 1.0 100.0 88.6 6.2 3.8 1.4 100.0 11 80-99 92.4 4.2 2.4 .9 100.0 90.2 5.0 3.6 1.3 100.0 1? 100-119 92.9 3.8 2.4 .9 100.0 90.8 4.7 3.3 1.3 100.0 13 120 or more 92.9 3.7 2.5 .9 100.0 91.2 4.1 3.4 1.3 100.0 CENSUS TRACT Racial composition (minorities as percentage of population) 14 Less than 10 93.8 3.3 2.1 .8 100.0 91.6 4.3 3.1 1.1 100.0 15 10-19 92.1 4.3 2.6 1.0 100.0 90.7 4.5 3.4 1.4 100.0 lb 20-49 90.5 5.4 3.0 1.1 100.0 90.2 4.9 3.5 1.4 100.0 1/ 50-79 88.5 6.5 3.7 1.3 100.0 89.4 5.4 3.8 1.4 100.0 18 80-100 86.7 7.8 4.0 1.5 100.0 88.9 6.2 3.6 1.3 100.0 Income1 19 Lower 86.6 7.9 3.8 1.7 100.0 88.1 7.3 3.4 1.3 100.0 20 Moderate 89.7 6.1 3.1 1.2 100.0 89.7 5.7 3.4 1.2 100.0 21 Middle 92.6 4.1 2.5 .8 100.0 91.0 4.6 3.3 1.2 100.0 22 Upper 92.9 3.7 2.4 .9 100.0 91.2 4.2 3.3 1.3 100.0 Location3 23 Central city 91.7 4.6 2.7 1.0 100.0 90.7 4.8 3.3 1.2 100.0 24 Non-central city 92.8 3.9 2.4 .9 100.0 91.0 4.5 3.3 1.2 100.0 NOTE. Not all characteristics were reported for all loans. 3. For census tracts located in MSAs. 1. Median family income of the metropolitan statistical area (MSA) in which the property SOURCE. Federal Financial Institutions Examination Council, related to the loan is located. 2. Lower: median family income for census tract less than 50 percent of median family income for MSA of tract. Moderate: 50 percent to less than 80 percent. Middle: 80 percent to less than 120 percent. Upper: 120 percent or more. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • September 2000 4.46 SMALL LOANS TO BUSINESSES AND FARMS, 1997-99 Item 1997 19984 1999 Total business loans 1 Number 2,560,795.0 2,736,389.0 3,287,974.0 2 Amount (thousands of dollars) 159,401,302.0 161,211,231.0 174,538,571.0 Percent to small firms1 3 Number 50.0 54.5 60.2 4 Amount 42.1 47.0 48.5 Total farm loans 5 Number 212,822.0 206,267.0 220,587.0 6 Amount (thousands of dollars) 11,192,400.0 11,373,691.0 12,302,881.0 Percent to small farms2 7 Number 89.5 90.4 90.6 8 Amount 81.3 83.0 83.7 Activity of CRA reporters (percent) All small loans to businesses2 9 Number 67.9 66.2 71.8 10 Amount 66.2 65.8 78.7 All small loans to farms2 11 Number 22.2 22.3 23.3 12 Amount 27.8 27.4 29.4 Distribution of business loans by asset size of lender Number (percent) 13 Less than 100 1.2 1.9 11..00 14 100 to 249 6.5 5.5 1.4 15 250 to 999 15.7 20.3 15.9 16 1,000 or more 76.6 72.3 81.8 17 Total 100.0 100.0 100.0 Amount (percent) 18 Less than 100 1.4 .8 11..00 19 100 to 249 3.5 3.2 2.2 20 250 to 999 20.9 22.7 21.6 21 1,000 or more 74.2 73.3 75.2 22 Total 100.0 100.0 100.0 Distribution of farm loans by asset size of lender Number (percent) 23 Less than 100 6.4 4.9 44..99 24 100 to 249 10.4 8.2 6.6 25 250 to 999 37.4 38.7 37.7 26 1,000 or more 45.8 48.2 50.8 27 Total 100.0 100.0 100.0 Amount (percent) 28 Less than 100 5.1 3.5 4.0 29 100 to 249 8.2 6.6 5.6 30 250 to 999 34.2 36.0 36.3 31 1,000 or more 52.5 53.9 54.1 32 Total 100.0 100.0 100.0 Distribution of business loans by income of census tract3 Number 33 Low 4.6 4.3 3.6 34 Moderate 16.0 15.5 14.6 35 Middle 49.1 49.5 50.1 36 Upper 29.8 30.3 31.2 37 Income not reported .5 .5 .4 38 Total 100.0 100.0 100.0 Amount 39 Low 5.4 5.2 5.0 40 Moderate 16.0 15.7 15.5 41 Middle 46.5 46.8 47.1 42 Upper 31.4 31.6 31.7 43 Income not reported .7 .7 .7 44 Total 100.0 100.0 100.0 MEMO Number of reporters 45 Commercial banks 1,421.0 1,576.0 1,450.0 46 Savings institutions 475.0 290.0 461.0 47 Total 1,896.0 1,866.0 1,911.0 1. Businesses and farms with revenues of $1 million or less. 3. Low income: census tract median family income less than 50 percent of MSA median 2. Percentages reflect the ratio of activity by CRA reporters to activity by all lenders. family income or nonmetropolitan portion of state median family income; moderate income: Calculations are based on information reported in the June 1997, 1998, and 1999 Call Reports 50-79 percent; middle income: 80-120 percent; upper income: 120 percent or more. Excludes for commercial banks and the Thrift Financial Reports. loans where census tract or block number area was not reported. 4. Revised to reflect correction of reported data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Loans to Businesses and Farms All 4.47 ORIGINATIONS AND PURCHASES OF SMALL LOANS TO BUSINESSES AND FARMS, 1999 By Size of Loan Size of loan (dollars) MMEEMMOO LLooaannss ttoo ffiirrmmss AAllll llooaannss wwiitthh rreevveennuueess ooff $$11 mmiilllliioonn Type of borrower and loan 100,000 or less 100,001 to 250,000 More than 250,000 oorr lleessss Total Percent Total Percent Total Percent Total Percent Total Percent Number of Loans Business 1 2,795,095 88.3 201,103 6.4 169,001 5.3 3,165,199 100 1,893,538 59.8 2 Purchases 118,430 96.5 1,751 1.4 2,594 2.1 122,775 100 84,863 69.1 3 Total 2,913,525 88.6 202,854 6.2 171,595 5.2 3,287,974 100 1,978,401 60.2 Farm 4 183,441 84.7 23,947 11.1 9,104 4.2 216,492 100 197,397 91.2 5 Purchases 3,481 85.0 421 10.3 193 4.7 4,095 100 2,548 62.2 6 Total 186,922 84.7 24,368 11.0 9,297 4.2 220,587 100 199,945 90.6 All 77 2,978,536 88.1 225,050 6.7 178,105 5.3 3,381,691 100 2,090,935 61.8 88 Purchases 121,911 96.1 2,172 1.7 2,787 2.2 126,870 100 87,411 68.9 9 Total 3,100,447 88.4 227,222 6.5 180,892 5.2 3,508,561 100 2,178,346 62.1 Amount of loans (thousands of dollars) Business 10 Originations 49,998,809 29.1 34,780,115 20.2 87,262,751 50.7 172,041,675 100 83,824,238 48.7 11 Purchases 782,082 31.3 297,840 11.9 1,416,974 56.7 2,496,896 100 875,384 35.1 12 Total 50,780,891 29.1 35,077,955 20.1 88,679,725 50.8 174,538,571 100 84,699,622 48.5 Farm 13 Originations 4,843,039 40.0 3,958,258 32.7 3,301,695 27.3 12,102,992 100 10,207,099 84.3 14 Purchases 61,293 30.7 69,185 34.6 69,411 34.7 199,889 100 94,835 47.4 15 Total 4,904,332 39.9 4,027,443 32.7 3,371,106 27.4 12,302,881 100 10,301,934 83.7 All 16 Originations 54,841,848 29.8 38,738,373 21.0 90,564,446 49.2 184,144,667 100 94,031,337 51.1 17 Purchases 843,375 31.3 367,025 13.6 1,486,385 55.1 2,696,785 100 970,219 36.0 18 Total 55,685,223 29.8 39,105,398 20.9 92,050,831 49.3 186,841,452 100 95,001,556 50.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Special Tables • September 2000 4.48 ORIGINATIONS AND PURCHASES OF SMALL LOANS TO BUSINESSES AND FARMS, 1999 By Type of Borrower and Loan, and Distributed by Size of Lending Institution Institutions, by asset size (millions of dollars) Type of borrower and loan Less than 100 100 to 249 250 to 999 1,000 or more Total Percent Total Percent Total Percent Total Percent Total Percent Number of loans Business 1 Originations 30,815 1.0 46,277 1.5 519,130 16.4 2,568,977 81.2 3,165,199 100 2 Purchases 1,059 0.9 226 0.2 2,534 2.1 118,956 96.9 122,775 100 3 Total 31,874 1.0 46,503 1.4 521,664 15.9 2,687,933 81.8 3,287,974 100 Farm 4 Originations 10,470 4.8 14,418 6.7 81,968 37.9 109,636 50.6 216,492 100 5 Purchases 293 7.2 137 3.3 1,140 27.8 2,525 61.7 4,095 100 6 Total 10,763 4.9 14,555 6.6 83,108 37.7 112,161 50.8 220,587 100 All 7 Originations 41,285 1.2 60,695 1.8 601,098 17.8 2,678,613 79.2 3,381,691 100 8 Purchases 1,352 1.1 363 0.3 3,674 2.9 121,481 95.8 126,870 100 9 Total 42,637 1.2 61,058 1.7 604,772 17.2 2,800,094 79.8 3,508,561 100 Amount of loans (thousands of dollars) Business 10 Originations 1,768,035 1.0 3,678,309 2.1 37,248,268 21.7 129,347,063 75.2 172,041,675 100 11 Purchases 36,335 1.5 98,467 3.9 537,874 21.5 1,824,220 73.1 2,496,896 100 12 Total 1,804,370 1.0 3,776,776 2.2 37,786,142 21.6 131,171,283 75.2 174,538,571 100 Farm 13 Originations 483,863 4.0 684,921 5.7 4,361,772 36.0 6,572,436 54.3 12,102,992 100 14 Purchases 9,061 4.5 2,578 1.3 104,540 52.3 83,710 41.9 199,889 100 15 Total 492,924 4.0 687,499 5.6 4,466,312 36.3 6,656,146 54.1 12,302,881 100 All 16 Originations 2,251,898 1.2 4,363,230 2.4 41,610,040 22.6 135,919,499 73.8 184,144,667 100 17 Purchases 45,396 1.7 101,045 3.7 642,414 23.8 1,907,930 70.7 2,696,785 100 18 Total 2,297,294 1.2 4,464,275 2.4 42,252,454 22.6 137,827,429 73.8 186,841,452 100 MEMO 19 Number of institutions reporting 148 226 1,028 509 1,911 20 Number of institutions extending loans . 136 216 960 459 1,771 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Community Reinvestment A79 4.49 COMMUNITY DEVELOPMENT LENDING, 1999 Number of loans Amount of loans MEMO: CRA reporters (thousands of dollars) AAAsssssseeettt sssiiizzzeee ooofff llleeennndddeeerrr Community development loans (((mmmiiilllllliiiooonnnsss ooofff dddooollllllaaarrrsss))) TToottaall PPeerrcceenntt TToottaall PPeerrcceenntt NNuummbbeerr PPeerrcceenntt Number Percent extending extending 1 Less than 100 355 1.4 141,014 0.8 148 7.7 41 3.7 2 100 to 249 408 1.6 155,024 0.9 226 11.8 87 7.9 3 250 to 999 10,788 41.8 2,274,841 13.3 1,028 53.8 572 51.8 4 1,000 or more 14,273 55.3 14,528,451 85.0 509 26.6 404 36.6 5 All 25,824 100.0 17,099,330 100.0 1,911 100.0 1,104 100.0 MEMO 6 Lending by all affiliates 485 1.9 702,299 4.1 38 3.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • September 2000 Index to Statistical Tables References are to pages A3-A79, although the prefix 'A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Federal finance Assets and liabilities (See also Foreigners) Debt subject to statutory limitation, and types and ownership Commercial banks, 15-21 of gross debt, 27 Domestic finance companies, 32, 33 Receipts and outlays, 25, 26 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 25 Foreign-related institutions, 20 Treasury operating balance, 25 Automobiles Federal Financing Bank, 30 Consumer credit, 36 Federal funds, 23, 25 Production, 44, 45 Federal Home Loan Banks, 30 Federal Home Loan Mortgage Corporation, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Housing Administration, 30, 34, 35 Bankers balances, 15-21. (See also Foreigners) Federal Land Banks, 35 Bonds (See also U.S. government securities) Federal National Mortgage Association, 30, 34, 35 New issues, 31 Federal Reserve Banks Rates, 23 Condition statement, 10 Business activity, nonfinancial, 42 Discount rates (See Interest rates) Business loans (See Commercial and industrial loans) U.S. government securities, 5, 10, 11, 27 Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 CAPACITY utilization, 43 Federally sponsored credit agencies, 30 Capital accounts Finance companies Commercial banks, 15-21 Federal Reserve Banks, 10 Assets and liabilities, 32 Certificates of deposit, 23 Business credit, 33 Commercial and industrial loans Loans, 36 Business and farms, loans to, 76-8 Paper, 22, 23 Commercial banks, 15-21 Float, 5 Weekly reporting banks, 17, 18 Flow of funds, 37^1 Commercial banks Foreign currency operations, 10 Foreign deposits in U.S. banks, 5 Assets and liabilities, 15-21 Foreign exchange rates, 62 Commercial and industrial loans, 15-21, 76-9 Foreign-related institutions, 20 Consumer loans held, by type and terms, 36, 68-72 Foreign trade, 51 Real estate mortgages held, by holder and property, 35, 64-72 Foreigners Time and savings deposits, 4 Claims on, 52, 55-7, 59 Commercial paper, 22, 23, 32 Liabilities to, 51-3, 58, 60, 61 Community development loans, under CRA, 79 Condition statements (See Assets and liabilities) Construction, 42, 46 GOLD Consumer credit, 36 Certificate account, 10 Consumer prices, 42 Stock, 5, 51 Consumption expenditures, 48, 49 Government National Mortgage Association, 30, 34, 35 Corporations Gross domestic product, 48, 49 Profits and their distribution, 32 Security issues, 31, 61 HOME Mortgage Disclosure Act Cost of living (See Consumer prices) Applications for home loans, 66-9 Credit unions, 36 Home loans, 70-2 Currency in circulation, 5, 13 Residential lending by financial institutions, 66, 70-2 Customer credit, stock market, 24 Housing, new and existing units, 46 DEBT (See specific types of debt or securities) INCOME, personal and national, 42, 48, 49 Demand deposits, 15—21 Industrial production, 42, 44 Depository institutions Insurance, private mortgage, 73-5 Reserve requirements, 8 Insurance companies, 27, 35 Reserves and related items, 4-6, 12 Interest rates Deposits (See also specific types) Bonds, 23 Commercial banks, 4, 15-21 Consumer credit, 36 Federal Reserve Banks, 5, 10 Federal Reserve Banks, 7 Discount rates at Reserve Banks and at foreign central banks and Money and capital markets, 23 foreign countries (See Interest rates) Mortgages, 34 Discounts and advances by Reserve Banks (See Loans) Prime rate, 22 Dividends, corporate, 32 International capital transactions of United States, 50-61 International organizations, 52, 53, 55, 58, 59 EMPLOYMENT, 42 Inventories, 48 Euro, 62 Investment companies, issues and assets, 32 Investments (See also specific types) FARM mortgage loans, 35, 76-8 Commercial banks, 4, 15-21 Federal agency obligations, 5, 9-11, 28, 29 Federal Reserve Banks, 10, 11 Federal credit agencies, 30 Financial institutions, 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A81 LABOR force, 42 Residential mortgage loans, 34, 35, 64-72 Life insurance companies (See Insurance companies) Retail credit and retail sales, 36, 42 Loans (See also specific types) Business, 76—8 SAVING Commercial banks, 15-21, 64-9, 76-9 Flow of funds, 37-41 Community development, 79 National income accounts, 48 Conventional, 64—6, 68 Saving deposits (See Time and savings deposits) Fannie Mae, 70 Savings institutions, 35, 36, 37—41 Farms, 76-8 Securities (See also specific types) Federal Reserve Banks, 5-7, 10, 11 Federal and federally sponsored credit agencies, 30 FHA, 64 Foreign transactions, 60 Financial institutions, 35 New issues, 31 FmHA, 64, 70 Prices, 24 Freddie Mac, 70 Special drawing rights, 5, 10, 50, 51 Ginnie Mae, 70 State and local governments Home purchase, 65-7 Holdings of U.S. government securities, 27 Insured or guaranteed by United States, 34, 35 New security issues, 31 VA, 64, 67 Rates on securities, 23 Stock market, selected statistics, 24 MANUFACTURING Stocks (See also Securities) Capacity utilization, 43 New issues, 31 Production, 43, 45 Prices, 24 Margin requirements, 24 Member banks, reserve requirements, 8 Student Loan Marketing Association, 30 Mining production, 45 Mobile homes shipped, 46 T T A hr X if t r i e n c s e t i i p tu ts t , i o f n e s d , e r 4 a . l, ( S 2 e 6 e also Credit unions and Savings Monetary and credit aggregates, 4, 12 institutions) Money and capital market rates, 23 Time and savings deposits, 4, 12, 14, 15-21 Money stock measures and components, 4, 13 Trade, foreign, 51 Mortgage insurance, 73-5 Treasury cash, Treasury currency, 5 Mortgages (See Real estate loans) Treasury deposits, 5, 10, 25 Mutual funds, 13, 32 Treasury operating balance, 25 Mutual savings banks (See Thrift institutions) UNEMPLOYMENT, 42 NATIONAL defense outlays, 26 U.S. government balances National income, 48 Commercial bank holdings, 15-21 Treasury deposits at Reserve Banks, 5, 10, 25 OPEN market transactions, 9 U.S. government securities Bank holdings, 15-21, 27 PERSONAL income, 49 Dealer transactions, positions, and financing, 29 Prices Federal Reserve Banks holdings, 5, 10, 11, 27 Consumer and producer, 42, 47 Foreign and international holdings and transactions, 10, 27, 61 Stock market, 24 Open market transactions, 9 Prime rate, 22 Outstanding, by type and holder, 27, 28 Private mortgage insurance, 73-5 Rates, 23 Producer prices, 42, 47 U.S. international transactions, 50-62 Production, 42, 44 Utilities, production, 45 Profits, corporate, 32 VETERANS Administration, 34, 35 REAL estate loans Banks, 15-21, 35 WEEKLY reporting banks, 17, 18 Terms, yields, and activity, 34 Wholesale (producer) prices, 42, 47 Type and holder and property mortgaged, 35 Reserve requirements, 8 YIELDS (See Interest rates) Reserves Commercial banks, 15-21 Depository institutions, 4—6, 12 Federal Reserve Banks, 10 U.S. reserve assets, 51 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin • September 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 DAVID W. SKIDMORE, Special Assistant to the Board DONALD B. ADAMS, Senior Adviser DIANE E. WERNEKE, Special Assistant to the Board RICHARD T. FREEMAN, Assistant Director WILLIAM L. HELKIE, Assistant Director STEVEN B. KAMIN, Assistant Director LEGAL DIVISION RALPH W. TRYON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS RICHARD M. ASHTON, Associate General Counsel DAVID J. STOCKTON, Director OLIVER IRELAND, Associate General Counsel EDWARD C. ETTIN, Deputy Director KATHLEEN M. O'DAY, Associate General Counsel WILLIAM R. JONES, Associate Director ANN E. MISBACK, Assistant General Counsel MYRON L. KWAST, Associate Director SANDRA L. RICHARDSON, Assistant General Counsel STEPHEN D. OLINER, Associate Director STEPHEN L. SICILIANO, Assistant General Counsel PATRICK M. PARKINSON, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel LAWRENCE SLIFMAN, Associate Director CHARLES S. STRUCKMEYER, Associate Director MARTHA S. SCANLON, Deputy Associate Director OFFICE OF THE SECRETARY JOYCE K. ZICKLER, Deputy Associate Director JENNIFER J. JOHNSON, Secretary WAYNE S. PASSMORE, Assistant Director ROBERT DEV. FRIERSON, Associate Secretary DAVID L. REIFSCHNEIDER, Assistant Director BARBARA R. LOWREY, Associate Secretaty and Ombudsman JANICE SHACK-MARQUEZ, Assistant Director ALICE PATRICIA WHITE, Assistant Director GLENN B. CANNER, Senior Adviser DIVISION OF BANKING DAVID S. JONES, Senior Adviser SUPERVISION AND REGULATION THOMAS D. SIMPSON, Senior Adviser RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS HERBERT A. BIERN, Associate Director ROGER T. COLE, Associate Director DONALD L. KOHN, Director WILLIAM A. RYBACK, Associate Director DAVID E. LINDSEY, Deputy Director GERALD A. EDWARDS, JR., Deputy Associate Director BRIAN F. MADIGAN, Associate Director STEPHEN M. HOFFMAN, JR., Deputy Associate Director RICHARD D. PORTER, Deputy Associate Director JAMES V. HOUPT, Deputy Associate Director WILLIAM C. WHITESELL, Assistant Director JACK P. JENNINGS, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board MICHAEL G. MARTINSON, Deputy Associate Director DIVISION OF CONSUMER SIDNEY M. SUSSAN, Deputy Associate Director MOLLY S. WASSOM, Deputy Associate Director AND COMMUNITY AFFAIRS HOWARD A. AMER, Assistant Director DOLORES S. SMITH, Director NORAH M. BARGER, Assistant Director GLENN E. LONEY, Deputy Director BETSY CROSS, Assistant Director SANDRA F. BRAUNSTEIN, Assistant Director RICHARD A. SMALL, Assistant Director MAUREEN P. ENGLISH, Assistant Director WILLIAM C. SCHNEIDER, JR., Project Director, ADRIENNE D. HURT, Assistant Director National Information Center IRENE SHAWN MCNULTY, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 EDWARD M. GRAMLICH OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS STEPHEN R. MALPHRUS, Staff Director LOUISE L. ROSEMAN, Director PAUL W. BETTGE, Assistant Director MANAGEMENT DIVISION KENNETH D. BUCKLEY, Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JACK DENNIS, JR., Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources JOSEPH H. HAYES, JR., Assistant Director Function JEFFREY C. MARQUARDT, Assistant Director SHEILA CLARK, EEO Programs Director EDGAR A. MARTINDALE, Assistant Director MARSHA REIDHILL, Assistant Director DIVISION OF SUPPORT SERVICES JEFF 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

A84 Federal Reserve Bulletin • September 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 DAVID J. STOCKTON, Economist MARK S. SNIDERMAN, Associate Economist JACK H. BEEBE, 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

A85 CONSUMER ADVISORY COUNCIL DWIGHT GOLANN, Boston, Massachusetts, Chairman LAUREN ANDERSON, New Orleans, Louisiana, Vice Chairman WALTER J. BOYER, Dallas, Texas GWENN S. KYZER, Allen, Texas DOROTHY BROADMAN, San Francisco, California JOHN C. LAMB, Sacramento, California TERESA A. BRYCE, St. Louis, Missouri ANNE S. LI, Trenton, New Jersey MALCOLM M. BUSH, Chicago, Illinois MARTHA W. MILLER, Greensboro, North Carolina ROBERT M. CHEADLE, Ada, Oklahoma DANIEL W. MORTON, Columbus, Ohio MARY ELLEN DOMEIER, New ULM, Minnesota JEREMY NOWAK, Philadelphia, Pennsylvania JEREMY D. EISLER, Biloxi, Mississippi MARTA RAMOS, San Juan, Puerto Rico ROBERT F. ELLIOTT, Prospect Heights, Illinois DAVID L. RAMP, St. Paul, Minnesota LESTER W. FIRSTENBERGER, Hopkinton, Massachusetts RUSSELL W. SCHRADER, San Francisco, California JOHN C. GAMBOA, San Francisco, California 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 M. DEAN KEYES, St. Louis, Missouri 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

A86 Federal Reserve Bulletin • September 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, 1999. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 2000. 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

A87 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. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Federal Reserve Bulletin • September 2000 Maps of the Federal Reserve System JMBfltBl 1 itSm^ •KHflBBfHBI Bos ION 2 H NEW YORK PSL \ DELPHI A flBMiifa« MM ATLANTA ^HHBFLFTL HMHHWHHMMHHH• •HHHHHMSM Wm ALASKA HAWAII NOTE 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. 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

A89 1-A 2-B 3-C 4-D 5-E ME Pittsburgh Baltimore MD X CT vr / cinnati Buffalo MA / 1 KY CT NJ NY sc • R1 BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G TJV} •iNashville B irmingham^ ^ • sville ( I " GA TN LA Jackson\ ille Aft cmphis New Cleans > Little Miami ATLANTA CHICAGO ST. LOUIS 9-1 MT • Helena It ifa'- •w MINNEAPOLIS 10-J 12-L " mm ••til Omaha* MO • • •I r NM Ok lahoma Cit\ OK KANSAS CITY 11-K TX •NM• • ~i m L\ • 11 11 PPaassoo i . H y Houston v • San Antonio DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A90 Federal Reserve Bulletin • September 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 Barbara L. Walter1 PHILADELPHIA 19105 Joan Carter Anthony Santomero Charisse R. Lillie William H. Stone, Jr. CLEVELAND* 44101 David H. Hoag Jerry L. Jordan Robert W. Mahoney 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 JackGuynn 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 James M. Lyon 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. Gay lord Robert Smith III1 San Antonio 78295 Patty P. Mueller James L. Stull1 SAN FRANCISCO 94120 Gary G. Michael Robert T. Parry Nelson C. Rising John F. Moore Los Angeles 90051 Lonnie Kane Mark L. Mullinix1 Portland 97208 Nancy Wilgenbusch Raymond H. Laurence1 Salt Lake City 84125 Barbara L. Wilson Andrea P. Wolcott Seattle 98124 Richard R. Sonstelie Gordon R. G. Werkema2 *Additional offices of these Banks are located at Windsor Locks, Connecticut 06096; East Rutherford, New Jersey 07016; Utica at Oriskany, New York 13424; Columbus, Ohio 43216; Columbia, South Carolina 29210; Charleston, West Virginia 25311; Des Moines, Iowa 50306; Indianapolis, Indiana 46204; Milwaukee, Wisconsin 53202; and Peoria, Illinois 61607. 1. Senior Vice President. 2. Executive Vice President Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis