Federal Reserve Bulletin, 2000-10

Volume 86 • Number 10 • October 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 665 PRODUCTIVITY DEVELOPMENTS ABROAD keeping its target for the federal funds rate at 6V2 percent. The Committee also indicated that This article reviews recent productivity trends the risks continue to be weighted mainly toward in foreign industrial countries. The focus of the conditions that may generate heightened inflaanalysis is on whether productivity abroad has tion pressures in the foreseeable future. accelerated to an extent comparable to that observed in the United States. The authors find 695 LEGAL DEVELOPMENTS that foreign labor productivity, unlike that of the United States, has not accelerated in the latter Various bank holding company, bank service half of the 1990s and discuss the role played corporation, and bank merger orders; and pendby information technology in influencing for- ing cases. eign productivity trends as well as cyclical and methodological factors that are important in the AI FINANCIAL AND BUSINESS STATISTICS analysis of these trends. These tables reflect data available as of August 29, 2000. 682 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FOR AUGUST 2000 A3 GUIDE TO TABULAR PRESENTATION Industrial production posted a 0.3 percent A4 Domestic financial Statistics gain in August and was unchanged in July; the A42 Domestic Nonfinancial Statistics level of output in July was initially estimated to A50 International Statistics have risen by 0.4 percent. Capacity utilization for total industry rose 0.1 percentage point, to A63 GUIDE TO STATISTICAL RELEASES AND 82.3 percent, a level 0.3 percentage point above TABULAR PRESENTATION its 1967-99 average. A64 INDEX TO STATISTICAL TABLES 685 ANNOUNCEMENTS Federal Open Market Committee directive. A66 BOARD OF GOVERNORS AND STAFF Issuance of guidance on framework for Board A68 FEDERAL OPEN MARKET COMMITTEE AND supervision of financial holding companies. Joint agency proposal on consumer protec- STAFF; ADVISORY COUNCILS tion rules for insurance sold by depository institutions. A70 FEDERAL RESERVE BOARD PUBLICATIONS Availability of wireless access to the Board's A72 MAPS OF THE FEDERAL RESERVE SYSTEM web site through hand-held devices. A74 FEDERAL RESERVE BANKS, BRANCHES, Enforcement actions and terminations of previ- AND OFFICES ous actions. 688 MINUTES OF THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE HELD ON JUNE 27-28, 2000 At this meeting, the Committee voted to maintain the existing stance of monetary policy, 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

Productivity Developments Abroad Christopher Gust and Jaime Marquez, of the tion of these advances leads to heightened efficiency. Board's Division of International Finance, pre- In this article we review the recent productivity pared this article. Jennifer Kahn, Timothy Troha, and trends in foreign industrial countries to examine Lisa Workman provided research assistance. whether they, too, are experiencing an improvement comparable to that seen in the United States. In recent years, the U.S. economy has surprised (In this study, we will not focus on the level of observers by growing briskly, even as inflation has productivity but, rather, on trends in the growth rate remained quiescent. During 1996-99, for example, of productivity.) U.S. real gross domestic product (GDP) grew at Our main finding is that, with only a few excep- 4.2 percent annually, whereas inflation, measured by tions, labor productivity in foreign industrial counthe consumer price index, averaged only 2.3 percent. tries does not appear to have accelerated in the latter This impressive performance of the economy reflects half of the 1990s. Thus, labor productivity in the in part an acceleration in recorded labor productivity. United States has changed from increasing less rap- After having averaged 1.4 percent per year from idly than that of most foreign industrial countries to 1973 to 1995, output per hour in the nonfarm busi- rising more rapidly. In this article, we also consider ness sector rose almost 2.6 percent from 1996 to factors that may account for this divergence in pro- 1999. This acceleration has allowed many firms to ductivity trends and discuss the extent to which this increase output without experiencing significant difference is likely to persist. increases in unit costs. Our conclusions need to be tempered, however, for The most prominent explanation for the pickup several reasons. First, there are significant problems in productivity growth centers on new developments in data comparability and availability (such as meain the high-technology sector—in particular, the pro- sures of capital). Moreover, much of the data are liferation of computer and information technology. published with a considerable delay. Difficult concep- Insofar as most of the recent technological advances tual issues, especially with respect to measurement of in this area are available to businesses worldwide, it the high-tech sector, make it difficult to ascertain the is natural to expect them to contribute to faster pro- role of information technology as an engine of productivity growth abroad as well.1 ductivity growth abroad. Also, because the sample The availability of new technologies on a world- period is rather brief, the task of identifying a change wide basis need not, however, translate into an auto- in trend productivity growth is complicated. On the matic improvement in productivity performance. whole, these difficulties suggest that there is much An economy's structure, institutions, and regula- room for further work on this important topic. tions influence the rapidity with which technological advances are adopted and the extent to which adop- DEFINING PRODUCTIVITY 1. For a more detailed discussion of the role of information Labor productivity—the output of workers per unit of technology as an explanation for the recent pickup in U.S. productivity time—is a commonly used and straightforward meagrowth, see Robert Gordon, "Does the 'New Economy' Measure sure of productivity (see box "Measures of Produc- Up to the Great Inventions of the Past?" Journal of Economic Perspectives (forthcoming); Alan Greenspan (remarks before the tivity"). The growth rate of labor productivity is New York Association for Business Economics, New York, N.Y., approximately equal to the difference between the June 13, 2000), available on line at http://www.federalreserve.gov/ growth rate of output and the growth rate of the boarddocs/speeches/2000/20000613.htm; Stephen Oliner and Daniel Sichel, "The Resurgence of Growth in the Late 1990s: Is Information number of hours worked in the economy. Technology the Story?" Journal of Economic Perspectives (forthcom- If output is produced by two factors, labor and ing); and Dale W. Jorgenson and Kevin Stiroh, "Raising the Speed capital, then the growth of labor productivity, in turn, Limit: US. Economic Growth in the Information Age," Brookings Papers on Economic Activity, 1:2000, pp. 125-211. depends upon the rate of "capital deepening" and the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

666 Federal Reserve Bulletin • October 2000 Measures of Productivity Measures of productivity address the question of how much consensus on the exact specification of this function. In output is produced, on average, by different factors of practice, a production function is often used that carries the production. The measure of productivity that is most com- implication that the marginal contribution of each factor of monly used is labor productivity because it is easy to production is proportional to the share of total production calculate and interpret: How much output is produced, on that it receives as compensation. Thus, total input growth average, by each unit of labor employed in production. We can be expressed as express this idea as q - wl • / + wk • k, LP = Y/L, where q represents the combined growth of productive where LP is labor productivity, Y is the amount of output, inputs, wl is the weight of labor (usually the share of labor and L represents the amount of labor input. Because the compensation in total income), I is the growth rate of labor focus of our study is on productivity growth rather than the input, wk is the weight of capital (usually the share of level of productivity, we construct capital compensation in total income), and k is the growth rate of capital services, which we assume to be proportional lp=y-l, to the capital stock. Given the measure of overall input growth, we define multifactor productivity growth as where lowercase variables represent the growth rates of the corresponding uppercase variables. mfp = y - q = y - [wl • / + wk' k], The growth of labor productivity, in turn, can be decomposed into the contributions of "capital deepening"—the where mfp is multifactor productivity growth, and y is the growth of the capital-labor ratio—and the growth of "multigrowth of output. Thus, in this framework, any increase in factor productivity"—increases in productivity attributable the growth of output in excess of the contribution of factor to technological advances or improvements in production inputs would be attributed to an increase in multifactor arrangements rather than to increases in factor inputs. Estiproductivity growth. mating the contributions of capital deepening and multifac- Rearranging the last equation slightly, output growth can tor productivity to labor productivity growth requires makbe expressed as a function of total factor input growth—the ing assessments about the relative importance of capital, weighted growth of labor and capital—and multifactor prolabor, and multifactor productivity in the production productivity growth: cess. In particular, it requires specifying the form of the production function: y = q + mfp = [wl • I + wk • k] + mfp. Y= F(K, L, MFP), Subtracting the growth of labor input, /, from both sides, and keeping in mind that wl = 1 - wk, this relationship can where Y is the amount of output, and the expression F() be further rearranged to decompose labor productivity indicates the maximum amount of output that can be progrowth into two components: (1) (k - /) • wk, or the rate of duced with given amounts of capital stock (K), labor, (L), capital deepening adjusted by the contribution of capital to and multifactor productivity (MFP).1 the production process, and (2) mfp. Therefore, we have Multifactor productivity growth is estimated as the difference between output growth and the growth of total factor inputs—that is, the combined growth of the factors of y - / = (k - /) • wk + mfp. production: labor and capital. Total input growth can be calculated as a weighted average of labor and capital If capital is relatively unimportant—that is, if the wk term is growth, with the marginal contributions of each of these small, then labor and multifactor productivity growth would factors to output being used as the weights. In principle, the be virtually identical. Similarly, if the capital-labor ratio marginal contribution of labor and capital to output depends remains essentially fixed, then the growth rates of labor and upon the form of the production function, and there is no multifactor productivity would, again, be virtually identical. If, however, capital is an important factor and the capitallabor ratio is not fixed, then labor and multifactor productiv- 1. The role of land in the production process is generally ignored. ity growth need not move together. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 667 growth of "multifactor productivity." Capital deepen- Conventional models of the production function suging refers to a rise in the ratio of capital to labor, that gest that one reasonable means of measuring the is, an increase in the amount of capital—machines, growth rate of total factor inputs is to add the growth structures, and infrastructure—available to workers. rate of labor to that of capital, each weighted by its For a given level of technology, capital deepening share in the value of production. The resulting sum raises workers' ability to produce more output with constitutes a measure of total input growth, which the same level of effort.2 can be subtracted from output growth to estimate Multifactor productivity growth refers to increases multifactor productivity growth. Thus, any increase in the productive capacity of the economy that are not in the growth of output in excess of total input attributable to increases in the contributions of labor growth would be attributed to an increase of multiand capital inputs. Increases in multifactor productiv- factor productivity growth. ity may reflect advances in technology, but they may also reflect any other developments that result in greater efficiency, such as reorganization of tasks in a firm or improvements in distribution channels used to ESTIMATING PRODUCTIVITY GROWTH deliver goods and services. In either case, an acceleration in multifactor productivity allows labor to be Estimating labor and multifactor productivity growth more productive even if the capital-labor ratio is for many countries requires data on a range of varifixed. ables: output, employment, labor hours, capital, and labor's share of output. The choice of data series for Measuring multifactor productivity requires first these variables is frequently constrained by the need estimating the contribution of the factors of to obtain recent statistics that are comparable across production—capital and labor—to aggregate output. countries. For the United States, a complete and Developing such a measure involves specifying the conceptually consistent data set is available from the economy's production function, that is, the way Bureau of Labor Statistics (BLS).4 Similar data are in which the economy transforms inputs of capital, labor, and other potential factors into final products.3 not available for many of the other countries in this study.5 Because this study emphasizes comparisons across 2. Early studies on productivity include Robert Solow, "Technical countries, we supplement the BLS data for the United Change and the Aggregate Production Function," Review of Econom- States with data from the Organisation for Economic ics and Statistics, vol. 39 (August 1957), pp. 312-20; Edward F. Co-operation and Development (OECD) on output, Denison, Why Growth Rates Differ: Postwar Experience in Nine Western Countries (The Brookings Institution, 1967); Simon Kuznets, labor, capital, and factor shares for seventeen indus- Economic Growth of Nations: Total Output and Production Structure trialized countries (including the United States). Most (Harvard University Press, 1971); Dale W. Jorgenson, Frank M. of these data are collected for the business sector, Gollop, and Barbara M. Fraumeni, Productivity and U.S. Economic Growth (Harvard University Press, 1987); and Dale W. Jorgenson, defined as "the institutional sector whose primary "Productivity and Economic Growth" in Ernst R. Berndt and Jack E. role is the production and sale of goods and ser- Triplett, eds., Fifty Years of Economic Measurement: The Jubilee vices."6 Hence, this data set nets out the general of the Conference on Research in Income and Wealth (University of Chicago Press, 1990). government sector from our measures of output, More recent work includes Wolodar Lysko, "Manufacturing Multi- capital, and employment. Focusing on the business factor Productivity in Three Countries," Monthly Labor Review, sector avoids the potential for distortion in measures vol. 118 (July 1995), pp. 29-38; Chrys Dougherty and Dale W. Jorgenson, "International Comparisons of the Sources of Economic of productivity due to the complexities involved in Growth," American Economic Review (May 1996, Papers and Pro- assigning a market value to the associated flow of ceedings, 1996), pp. 25-29; Jeremy Greenwood, Zvi Hercowitz, and goods and services in the government sector. Also, Per Krusell, "Long-Run Implications of Investment-Specific Technological Change," American Economic Review, vol. 87 (June 1997), the OECD has standardized its definition of the busipp. 342-62; Stefano Scarpetta, Andrea Bassanini, Dirk Pilat, and Paul ness sector across OECD countries to enhance the Schreyer, "Economic Growth in the OECD Area: Recent Trends at comparability of the data. the Aggregate and Sectoral Level," OECD Economics Department Working Paper, no. 248; and Paul Schreyer, "The Contribution of Information and Communication Technology to Output Growth: A Study of the G-7 Countries," OECD Science, Technology, and Indus- 4. The BLS documents describing the multifactor productivity try Working Paper, 2000/2 (OECD, 2000). series are available on line at http://www.bls.gov/mprhome.htm. 3. For surveys of the literature on production functions, see 5. Complete and conceptually consistent data sets on labor and Dale W. Jorgenson, "Econometric Methods for Modeling Producer multifactor productivity are also published for Australia and Canada Behavior," in Zvi Griliches and Michael D. Intriligator, Handbook by their respective national statistical agencies. of Econometrics, vol. 3 (New York: North-Holland, 1986); and 6. For our purposes, the business sector data ideally would exclude Ulrich Kohli, Technology, Duality, and Foreign Trade: The GNP the flow of services from owner-occupied dwellings in the household Function Approach to Modeling Imports and Exports (University of sector. But the OECD definition of output includes the flow of Michigan Press, 1991). services because of data limitations in various OECD countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

668 Federal Reserve Bulletin • October 2000 Trends in Output and Factor Inputs The OECD measure of labor hours per worker is for the overall economy instead of for the business Table 1 reports average annual growth rates for busi- sector. Ideally, we would prefer a measure of hours ness sector GDP, labor hours, capital stock, and fac- worked that corresponds to the OECD definition of tor shares for selected periods: 1981-89, 1990-98, the business sector, but such series are not available. 1990-95, and 1996-98 for the seventeen industrial- However, the mismatch in the measure of hours is ized countries examined here.7 For the United States, probably more relevant for estimating the level of it includes the data both from the BLS and from the productivity than for estimating the growth rate of OECD. It also shows figures for 1996-99, although productivity, unless the government and business secfor the OECD data the calculations are based on tors had significant differences in the trends of hours our own estimates of growth in hours per worker. By per worker. and large, average growth rates for the 1996-98 and For the United States, over 1996-98 the average 1996-99 periods are quite similar in the BLS and the annual growth rate of labor hours, based on BLS data OECD data sets. for the nonfarm business sector, is 2.5 percent, which is higher than the averages for the 1980s (2.1 percent) and the early 1990s (1.0 percent).8 For the United GDP Growth States, the OECD data follow a similar pattern, with growth rates of 2.2 percent, 2.1 percent, and 1.4 per- For the United States, based on BLS data, the average cent respectively.9 annual growth rate of business GDP over 1996-98 is Turning to foreign countries, we find that growth 4.9 percent (table 1), an increase of 2.3 percentage in labor hours also picked up in 1996-98, relative to points relative to the first half of the 1990s and of the earlier periods, for many countries. Growth rates 1.2 percentage points compared with the 1980s; the of labor hours in Canada, Denmark, Finland, France, OECD-based estimates of U.S. output growth are Ireland, Italy, the Netherlands, Norway, Spain, and quite similar to those of the BLS. For the foreign the United Kingdom over 1996-98 are higher than industrial countries, Finland, Ireland, and Norway during 1990-95 and the 1980s. However, in many show a greater increase in output growth over industrial countries, hours worked declined between 1996-98 relative to either the first half of the 1990s the 1980s and the early 1990s. or the 1980s. Other countries with a sizable increase of growth in the late 1990s relative to the earlier Capital Growth periods are Australia, Canada, the Netherlands, and Spain. The OECD data use a gross capital stock measure from which the full value of an asset is subtracted when it is retired from production. For the United Labor Growth States, the BLS-based measure of capital is a net capital stock measure (that is, net of period-by-period The measure of labor that is used corresponds to depreciation). With this measure, individual types of business sector employment adjusted by hours per capital are aggregated according to their marginal worker. Accounting for changes in hours worked, product weights, as proxied by user costs for different as opposed to merely accounting for changes in the types of capital.10 number of employees, is important. First, from a For the United States, the average annual growth secular standpoint, the past two decades have seen a rate of capital according to the BLS-based data over decline in the number of hours worked per employee 1996-98 was 5.3 percent (table 1); this growth rate in foreign industrial economies. Thus, abstracting from the role of hours worked would overstate the amount of growth of labor input and understate labor 8. The BLS adjusts its measure of labor inputs for changes in labor productivity growth. Second, from a cyclical stand- quality. Here we report the BLS measure without the labor-quality adjustments. point, hours per worker change over time relative to 9. Unlike the OECD, the BLS definition of the nonfarm business trend, as they provide firms with another means with sector excludes government enterprises such as the Postal Service. which to vary labor input. 10. The BLS-based data for capital are from Oliner and Sichel, "The Resurgence of Growth in the Late 1990s." They construct a measure of capital through 1999 that is consistent with both BLS methodology and the October 1999 comprehensive revisions of the 7. We adopt the convention that the average annual growth rate for U.S. national income and product accounts. Since that paper was output over, for example, 1996-98 refers to the mean growth rate from finalized, the U.S. national accounts have been revised further. That the 1995 output level to the 1998 output level. revision would raise the growth rate of capital slightly over 1996-99. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 669 1. Average growth rates for GDP, labor hours, and capital 1.—Continued stock, and labor's share of GDP, in the Group of Seven and other OECD countries, selected periods, 1981-99 Percent Percent Country and measure Country and measure 1981-89 1990-98 1990-95 1996-98 1996-99" 1981-89 1990-98 1990-95 1996-98 1996-99' of growth or share of growth or share United States Belgium4 BLS data2 GDP 1.96 2.05 1.79 2.56 2.39 GDP 3.64 3.30 2.52 4.86 4.84 Labor hours .61 .15 -.37 1.20 1.33 Labor hours 2.06 1.51 1.04 2.47 2.30 Capital stock 2.84 3.14 3.26 2.90 2.93 Capital stock 4.36 3.87 3.16 5.30 5.59 Labor share .64 .64 .64 .63 .63 Labor share .68 .68 .68 .67 .67 Denmark 5 OECD data GDP 2.01 2.97 2.82 3.27 2.74 GDP 3.44 3.13 2.41 4.55 4.43 Labor hours -.06 .33 -.82 2.63 1.88 Labor hours 2.10 1.69 1.41 2.24 2.08 Capital stock 3.02 2.91 2.69 3.35 3.42 Capital stock 2.90 2.40 1.90 3.41 3.70 Labor share .69 .63 .63 .63 .63 Labor share .67 .66 .66 .66 .66 Finland 6 Canada GDP 3.54 1.68 -.46 5.94 5.51 GDP 3.25 2.11 1.51 3.31 3.53 Labor hours -.29 -2.05 -4.18 2.20 2.34 Labor hours 1.81 .84 .17 2.19 2.59 Capital stock n.a. .35 -.14 .67 .85 Capital stock 5.74 4.12 3.86 4.64 4.85 Labor share .71 .69 .71 .65 .64 Labor share .66 .70 .70 .70 .70 Ireland7 France GDP 3.91 7.28 5.84 10.14 9.87 GDP 2.40 1.70 1.30 2.50 2.53 Labor hours -.10 3.20 1.67 6.24 5.79 Labor hours -.95 -.42 -.94 .62 .91 Capital stock 2.58 2.97 2.28 4.34 4.74 Capital stock 2.57 2.41 2.58 2.06 2.17 Labor share .76 .68 .70 .64 .63 Labor share .67 .61 .62 .61 .61 Germany 3 Netherlands8 GDP n.a. 1.68 1.62 1.77 1.72 GDP 2.00 3.02 2.66 3.75 3.65 Labor hours n.a. -.43 -.62 -.18 -.41 Labor hours -1.35 1.02 -.24 3.55 3.31 Capital stock n.a. 2.65 2.95 2.25 2.33 Capital stock 1.66 2.29 2.08 2.70 2.78 Labor share n.a. .64 .66 .62 .62 Labor share .61 .60 .61 .60 .60 Italy Norway GDP 2.36 1.54 1.59 1.45 1.38 GDP 1.17 2.84 2.10 4.33 3.15 Labor hours .04 -.51 -1.09 .64 .71 Labor hours -.26 .14 -1.03 2.48 1.73 Capital stock 2.78 2.82 2.87 2.72 2.73 Capital stock 3.02 1.66 1.05 2.87 2.69 Labor share .68 .64 .65 .62 .62 Labor share .72 .68 .67 .68 .69 Japan Spain9 GDP 4.09 1.84 2.15 1.21 1.31 GDP 2.70 2.31 1.67 3.57 3.69 Labor hours .95 -.64 -.73 -.45 -.76 Labor hours -1.10 .38 -.86 2.86 3.34 Capital stock 5.84 4.46 4.88 3.62 3.31 Capital stock 5.63 4.27 4.47 3.87 4.00 Labor share .77 .72 .72 .72 .72 Labor share .67 .61 .62 .60 .60 United Kingdom Sweden GDP 3.54 2.61 2.37 3.08 2.78 GDP 2.43 1.63 1.21 2.47 2.93 Labor hours .22 .88 .60 1.46 1.29 Labor hours .90 -.42 -.88 .51 1.19 Capital stock 1.69 2.73 2.64 2.92 3.10 Capital stock 2.93 2.24 2.10 2.51 n.a. Labor share .69 .69 .70 .67 .69 Labor share .69 .68 .68 .68 .68 Australia Switzerland10 GDP 3.97 3.69 3.09 4.90 4.78 GDP 1.93 .82 .46 1.52 1.52 Labor hours 2.50 1.31 1.29 1.33 1.61 Labor hours n.a. -.86 -.88 -.81 -.35 Capital stock 3.96 3.48 3.02 4.42 4.44 Capital stock 3.58 3.18 3.30 2.94 3.04 Labor share .65 .62 .62 .62 .62 Labor share .67 .69 .69 .70 .69 NOTE. In this and subsequent tables, the G-7 countries are listed first. 4. Data for Belgium's growth of labor hours start in 1984. 1. Uses authors' estimates for labor hours in 1999 for OECD data. 5. Data for Denmark's growth of labor hours start in 1984, and data for 2. Data for the nonfarm business sector of the United States. Observations for capital-stock growth start in 1988. GDP and labor hours are from the U.S. Bureau of Labor Statistics; data for 6. Data for Finland's growth of capital stock start in 1994. capital stock and labor share are for nonfarm business as computed by Oliner 7. Data for Ireland's growth of labor hours start in 1984. and Sichel, "The Resurgence of Growth in the Late 1990s." They include 8. Data for the Netherland's labor share start in 1987. software in their measure of investment expenditure and extend the BLS data 9. Data for Spain's growth of capital stock start in 1989. beyond 1997. 10. Data for Switzerland's growth of labor hours start in 1991. 3. Calculations for Germany use growth rates starting in 1992 to avoid the n.a. Not available. distortions induced by the German Unification during 1990-91. exceeded the corresponding growth rates over the BLS data capture the effect of shifts in the com- 1980s and the early 1990s. The OECD measure of position of the capital stock toward types of capital the growth of the U.S. capital stock follows much the with higher productivities, such as those embodying same pattern but is consistently below the growth computer technology. The OECD data do not capture rate of U.S. capital in the BLS-based data. The main such compositional shifts because they do not weight reason for this difference in growth rates is that, different types of capital by their user costs. Although as noted, the BLS-based data aggregate individual we would prefer to use a series of capital for the types of capital by their user costs. As a result, the foreign industrial countries comparable to the BLS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

670 Federal Reserve Bulletin • October 2000 series, we do not have access to sufficiently disaggre- BLS data was 2.4 percent, compared with 1.5 percent gated data to construct such a measure.11 for 1990-95 and 1.6 percent for the 1980s (table 2). Among foreign industrial countries, only five have This pickup in U.S. labor productivity growth is growth rates of capital during 1996-98 that, as in the evident in the OECD data as well. Specifically, the United States, exceeded their own 1981-95 averages: average annual growth rate of U.S. labor productivity Australia, Denmark, Ireland, the Netherlands, and was 2.3 percent in 1996-98, compared with 1.0 perthe United Kingdom. Canada, Norway, and Sweden cent for the 1990-95 period and 1.3 percent for the experienced a pickup in capital growth in the late 1980s. 1990s relative to the early 1990s, but not relative to Only two of the foreign industrial economies in the 1980s. Capital growth declined in 1996-98 rela- our sample, Australia and Switzerland, show a rise tive to the earlier periods for Japan, France, Spain, in labor productivity growth over 1996-98 compared and Switzerland; for Italy and Belgium, capital with the earlier periods. For Australia, the acceleragrowth was relatively unchanged. tion in labor productivity was particularly strong: an increase of 2 percentage points in 1996-98 over its average in the 1980s. In contrast, labor productivity Factor Shares in Compensation growth slowed in Canada, Japan, and the major European countries in the latter half of the 1990s rela- Even after data on labor and capital have been com- tive to both the 1981-89 and the 1990-95 periods. In piled, the problem remains of weighting their sepa- most smaller European countries, such as Belgium, rate contributions so that a single aggregate measure Denmark, and the Netherlands, labor productivity of productive inputs can be estimated, thereby allow- also decelerated in the latter half of the 1990s relative ing for the calculation of multifactor productivity. to the two earlier periods. In a few countries, includ- Here we follow the general practice of setting these ing Finland, Ireland, and Sweden, labor productivity weights equal to the share of the value of production growth was relatively unchanged in the most recent received by each factor as compensation for its ser- period compared with the earlier periods. vices. Labor's share is calculated as the fraction of On the whole, table 2 shows that, based on OECD the value of GDP in the business sector that is paid data, during the 1980s and the first half of the 1990s, to workers in that sector in the form of compensation; U.S. labor productivity growth was below labor prothe share for capital is constructed as one minus the ductivity growth in every foreign Group of Seven share for labor. (G-7) country. However, in the latter half of the For the United States, labor's share (compensation) 1990s, the situation reversed: Labor productivity in the business sector has been roughly two-thirds of growth in the United States was higher than that in the value of production for the past two decades foreign G-7 countries. Furthermore, of the foreign regardless of the source of data (table 1); other coun- countries included in table 2, only Australia, Finland, tries exhibit labor shares that are rather similar to that Ireland, and Switzerland had a higher rate of labor of the United States. The exception is Japan, where productivity growth than the United States in the the share has exceeded 70 percent for the past twenty 1996-98 period. years. For France, Denmark, Spain, and Ireland, the labor share has shown a marked tendency to decline over time. Capital Deepening and Multifactor Productivity As noted earlier, the growth of labor productivity Trends in Labor and Multifactor Productivity depends on both the rate of capital deepening and the Growth growth of multifactor productivity. For most countries, recent movements in the rate of capital deepen- Labor Productivity ing have been in the same direction as movements in labor productivity growth. For the United States, For the United States, the average annual growth rate capital deepening rose in the latter half of the 1990s of U.S. labor productivity over 1996-98 based on relative to the 1981-95 period regardless of data source. However, the contribution of U.S. capital deepening is significantly higher with BLS data than 11. One study, discussed later in this article, that does construct a measure of capital, using the same methodology as the BLS, for the with OECD data because of differences in the mea- G-7 countries is Schreyer, "The Contribution of Information and sures of capital growth drawn from these data Communication Technology to Output Growth." A drawback to his sources, as shown in table 1. Unlike the U.S. experiseries is that they extend only to 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 671 2. Average growth rate of productivity estimates, 2.—Continued in the Group of Seven and other OECD countries, selected periods, 1981-99 Percent Percent Country and Country and productivity 1981-89 1990-98 1990-95 1996-98 1996-99' productivity 1981-89 1990-98 1990-95 1996-98 1996-99' estimate estimate United States Belgium 4 BLS data2 Labor productivity — 2.32 1.90 2.18 1.35 1.05 Labor productivity 1.59 1.78 1.47 2.42 2.57 Capital deepening .. .82 1.06 1.28 .63 .60 Capital deepening .. .73 .77 .68 .96 1.11 MFP 1.51 .83 .87 .73 .46 MFP .86 1.01 .79 1.46 1.47 Of which labor Denmark5 quality .34 .39 .42 .32 .31 Labor productivity 2.53 2.67 3.69 .62 .86 Capital deepening .. n.a. .94 1.27 .27 .56 OECD data MFP n.a. 1.70 2.37 .37 .31 Labor productivity 1.31 1.43 1.02 2.26 2.30 Capital deepening .. .25 .24 .16 .40 .54 Finland6 MFP 1.09 1.20 .85 1.91 1.80 Labor productivity 3.85 3.82 3.91 3.66 3.10 Capital deepening .. n.a. n.a. n.a. -.54 -.53 Canada MFP n.a. n.a. n.a. 4.28 3.70 Labor productivity 1.42 1.26 1.34 1.10 .92 Capital deepening .. 1.31 .96 1.08 .73 .67 Ireland1 MFP .14 .31 .26 .39 .27 Labor productivity 5.14 4.01 4.10 3.81 3.96 Capital deepening .. n.a. -.14 .15 -.71 -.39 France MFP n.a. 4.22 4.01 4.62 4.47 Labor productivity 3.41 2.12 2.26 1.86 1.61 Capital deepening .. 1.10 1.09 1.35 .57 .50 Netherlands 8 MFP 2.26 1.03 .89 1.31 1.12 Labor productivity 3.40 2.07 2.98 .23 .35 Capital deepening .. n.a. .49 .90 -.33 -.21 Germany 3 MFP n.a. 1.51 1.99 .54 .55 Labor productivity n.a. 2.13 2.26 1.96 2.14 Capital deepening .. n.a. 1.09 1.22 .91 1.06 Norway MFP n.a. 1.03 1.02 1.04 1.07 Labor productivity 1.44 2.72 3.18 1.80 1.39 Capital deepening .. .92 .48 .66 .12 .29 Italy MFP .50 2.2? 2.48 1.73 1.13 Labor productivity 2.33 2.09 2.72 .81 .67 Capital deepening .. .87 1.18 1.36 .82 .82 Spain9 MFP 1.45 .88 1.32 -.01 -.14 Labor productivity 3.89 1.96 2.58 .70 .34 Capital deepening .. n.a. 1.48 2.01 .40 .26 Japan MFP n.a. .45 .52 .31 .08 Labor productivity 3.12 2.48 2.89 1.64 2.07 Capital deepening .. 1.15 1.44 1.56 1.21 1.23 Sweden MFP 2.00 1.03 1.31 .46 .85 Labor productivity 1.52 2.06 2.11 1.96 1.73 Capital deepening .. .61 .81 .89 .65 n.a. United Kingdom MFP .92 1.23 1.19 1.32 n.a. Labor productivity 3.37 1.72 1.78 1.60 1.47 Capital deepening .. .42 .53 .57 .44 .54 Switzerland10 MFP 2.90 1.20 1.21 1.18 .95 Labor productivity n.a. 1.31 .66 2.38 1.90 Capital deepening .. n.a. 1.18 1.21 1.13 1.03 Australia MFP n.a. .10 -.57 1.20 .84 Labor productivity — 1.45 2.37 1.79 3.52 3.12 Capital deepening .. .45 .82 .64 1.16 1.06 4. Data for Belgium's growth of labor hours start in 1984. MFP 1.01 1.57 1.15 2.41 2.11 5. Data for Denmark's growth of labor hours start in 1984, and data for capital-stock growth start in 1988. NOTE. The sum of capital deepening growth and multifactor productivity 6. Data for Finland's growth of capital stock start in 1994. (MFP) growth does not always add up to labor productivity growth because of 7. Data for Ireland's growth of labor hours start in 1984. rounding errors. 8. Data for the Netherland's labor share start in 1987. 1. Uses authors' estimates for labor hours in 1999 for OECD data. 9. Data for Spain's growth of capital stock start in 1989. 2. Measures of labor productivity, capital deepening, and MFP reported here 10. Data for Switzerland's growth of labor hours start in 1991. are those in Oliner and Sichel, "The Resurgence of Growth in the Late 1990s," n.a. Not available. plus their estimated growth of labor quality. 3. Calculations for Germany use growth rates starting in 1992 to avoid the distortions induced by the German Unification during 1990-91. ence, capital deepening in most foreign economies 1.5 percent in 1996-98. The OECD data also show slowed in 1996-98 compared with 1981-95. The a pickup in U.S. multifactor productivity growth, slowdown was particularly sharp in Ireland, the Neth- from around 1.0 percent in the 1981-95 period to erlands, and Spain, and somewhat more moderate in close to 1.9 percent in 1996-98. The difference in esti- Canada, France, and Germany. A notable exception mated multifactor productivity growth rates for the to the slowing of capital deepening abroad was United States stems from the differences in estimated Australia. growth rates of capital deepening in the two U.S. data The results for multifactor productivity growth are sources; with labor productivity growth about the also consistent with the pattern of labor productivity same in the two data sets, the higher rate of capital growth. The results using the BLS-based data show a deepening in the more conceptually accurate BLS pickup in U.S. multifactor productivity growth from data, compared with the OECD data, leads to a lower around 0.8 percent in the 1981-95 period to close to estimated rate of multifactor productivity growth. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

672 Federal Reserve Bulletin • October 2000 1. Growth rates of labor productivity in the Group of Seven and other OECD countries, 1981-99 Percent United States Canada Four-year moving average a Actual France Germany United Kingdom Australia NOTE. Calculations for the United States use the OECD data; results for the German unification during 1990-91. Calculations for growth rates (actual) Germany use growth rates starting in 1992 to avoid the distortions induced by for Belgium, Denmark, and Ireland start in 1984. In contrast to the results for the United States, OECD data yield comparable results, although these most of the foreign G-7 countries—the exception is data do not embody quality adjustments for capital to Canada—experienced slowing multifactor productiv- the same extent as the BLS data. ity growth in the latter half of the 1990s relative to Among the foreign industrial countries, the results the 1981-95 period. Multifactor productivity growth indicate that changes in the growth rate of labor also slowed in Belgium, the Netherlands, and Spain. productivity have been dominated, for the most part, Both Australia and Sweden experienced an accelera- by changes in the growth rate of multifactor production in multifactor productivity, with the Australian tivity. The exceptions to this pattern are Belgium, pickup particularly sharp. Canada, and Spain, where movements in the growth An important question is which component— rate of capital deepening are important for explaining capital deepening or multifactor productivity—was changes in the growth of labor productivity. Changes the driving force behind the 1.0 percentage point in multifactor productivity growth rates thus appear acceleration in U.S. labor productivity recorded in the to have played the preeminent role in accounting for BLS-based data from 1990-95 to 1996-98. Table 2 divergences in the movements of growth in U.S. and shows that in the BLS data, capital deepening foreign labor productivity. accounts for 0.3 percentage point and that multifactor productivity accounts for 0.7 percentage point.12 The by Oliner and Sichel. Also, the above estimate of the change of 12. As indicated earlier, the recent annual revision of the U.S. multifactor productivity growth includes the change in the growth rate national account implies a little more capital deepening than reported of labor quality over these two periods, which was -0.1 percent. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 673 1.—Continued Percent Percent Belgium Denmark Four-year moving average Actual Finland Ireland Netherlands Norway Sweden Sensitivity to Period Selection Hence, a focus on 1996-98 as the period when productivity performance broke with its prior historical In an examination of the data in table 2, one question trend certainly makes sense for the United States.13 that comes to mind is whether movements in mea- For many of the foreign economies shown in sured average productivity growth from period to chart 1, 1995 does not represent a comparable break period accurately reflect underlying movements in date in productivity performance. Thus, the question productivity performance or, alternatively, reflect arises whether the improved performance of mealargely the choice of time periods used to make sured U.S. productivity growth relative to that of the average growth rate calculations. Chart 1 shows foreign economies might not be merely an artifact of annual growth rates for labor productivity for the the periods chosen to calculate the growth comparicountries in our study. For some countries, year-to- sons. To put it another way, if an alternative year year movements in labor productivity are extremely volatile, a fact that is masked by period averages. 13. One motivation to use 1995 as the cut-off date for comparisons This fact further supports the possibility that period is the abrupt change in the rate of decline in prices for computer and averages of growth rates may not appropriately peripheral equipment: from an annual average rate of 15 percent over characterize underlying trends in productivity 1990-95 to 30 percent over 1995-98; see Robert Gordon's article "Not Much of a New Economy," in the Financial Times, July 26, performance. 2000. This abrupt change in price declines is credited with accelerat- Even so, in the United States it is clear that the ing the pace of adoption of computers and the increased growth rate recent surge in measured productivity growth did not of labor productivity; see the interview with Dale Jorgenson in Steve Liesman, "Further Gains in Productivity Are Predicted—Economists occur until the mid-1990s (for both BLS and OECD Say Study Has Made Them Believers in the New Economy," Wall data) and since then has remained consistently high. Street Journal, August 1, 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

674 Federal Reserve Bulletin • October 2000 were chosen as a potential break date in productivity productivity performance may be attributable to difperformance—say, 1993, so that productivity growth ferences in cyclical positions. in 1994-99 would be compared with growth in One way that a cyclical pickup in activity may lead 1980-93—might not a step-up in productivity growth to a corresponding uptick in productivity involves be discerned for many foreign industrial countries as "factor hoarding." This phenomenon arises from well? firms' tendency to adjust the intensity with which In fact, a closer look at chart 1 fails to support this labor and capital are used before adjusting the numhypothesis. To abstract somewhat from year-to-year ber of workers or machines. During recessions, firms movements in productivity growth, a four-year mov- may choose not to lay off workers or reduce their ing average of productivity growth (which includes hours to an extent commensurate with reduced prothe current and three previous years) is also shown duction schedules; this unwillingness to lay off workfor each of the countries in this chart. These series ers is referred to as "labor hoarding." In consemake clear that for most foreign industrial countries, quence, output may decline by more than labor hours it is impossible to identify a point at which the during recessions, as (unobservable) labor effort falls, moving averages started moving up on a sustained leading to declines in measured labor productivity. basis—that is, a break date in the past decade such Conversely, during subsequent recoveries, output has that productivity growth after that date is discernibly a tendency to rise more than labor hours as employhigher than growth before that date.14 Overall, our ees work harder, thereby boosting measured labor failure to discern a pickup of productivity growth productivity. in most foreign industrial countries does not appear Similarly, a firm may choose to decrease the numto be an artifact of the periods chosen to calculate ber of hours or the speed at which it uses a particular productivity. piece of equipment during a period of economic The conclusions reached from table 2 and chart 1 slack. As a result, the measured capital input will raise two questions. First, what accounts for the fail- tend to fall less than the effective use of the capital ure of productivity growth abroad to rise, especially stock, which will depress measures of multifactor given the pickup in U.S. productivity growth? (In productivity growth, while the reverse holds true fact, in some countries, productivity growth seems to during economic recoveries. Thus one would like to be trending down.) Second, is this divergent perfor- use a measure of the capital inputs that would adjust mance likely to be sustained? Although no definitive for rates of capacity utilization. The best measures of answers to these questions exist, the following sec- capacity utilization are available for the manufacturtions survey the range of available evidence and ing sector, but these are not, unfortunately, suitable explanations. for use in this analysis. By definition, business sector capital includes the capital of firms in the service sector, a sector that makes up a large share of activity in most industrialized countries and for which data on EXPLAINING DIFFERENCES IN PRODUCTIVITY capacity utilization are not available. GROWTH To examine the role of cyclical considerations To account for the recent divergence in the patterns in the determination of labor productivity growth, of U.S. and foreign labor productivity growth, we we review the four-year moving averages of growth group the existing hypotheses into three categories: rates of labor productivity shown in chart 1. Although cyclical, methodological, and structural. such moving averages do not necessarily correspond to trends in labor productivity adjusted for cyclical influences, they do make it easier to identify visually Cyclical Considerations a long-term trend in the underlying series, with cyclical influences minimized.15 Trends in labor pro- One of the factors that is considered important in ductivity growth in many foreign industrial countries explaining productivity growth is the cyclical posi- during 1996-99 appear to be a continuation of ongotion of the economy. With the U.S. economy grow- ing downward trends rather than the result of cyclical ing rapidly in recent years while foreign industrial influences. economies have generally been growing more slowly, Specifically, as shown in chart 1, the countries with it is possible that some part of the divergence in a relatively long-term decline in labor productivity 15. We considered the robustness of our findings by computing 14. The one exception to this pattern is Australia, where productiv- trend productivity growth using a Hodrick-Prescott filter; the conity growth picked up in the early 1990s. clusions are robust to this alternative method. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 675 growth are France, the United Kingdom, the Nether- nominal basis, price indexes must be calculated to lands, and Spain. For other countries, such as Italy, deflate these nominal figures to a real (constant-price) Japan, Belgium, Finland, and Norway, the decline in basis. This adjustment can be difficult when changes trend productivity growth started in the early 1990s, in prices reflect changes in quality. One method for whereas Canada, Ireland, and Sweden showed a measuring quality change in prices is to use hedonic relatively unchanged level of productivity growth. pricing. This method seeks to identify the quality Australia is the only foreign country in our sample component of a product's price by redefining goods that showed a rising trend in productivity growth, according to their characteristics and computing a an observation that confirms the results shown in quality-adjusted price based on those characteristics. table 2. Because the trend has been rising since the For example, for computers, hedonic pricing derives early 1990s, it suggests that factors other than the a price for a bundle of computing power from the business cycle have been important.16 observed price of a computer "box" by estimating a The pickup in labor productivity growth in the relationship between the observed price and charac- United States may be due in part to cyclical factors, teristics such as processor speed and memory size. but chart 1 suggests that the increase of U.S. labor With the rapid advancement in product development productivity growth relative to foreign growth, as and quality change in high-tech goods, hedonic price shown in table 2, is not due solely to cyclical factors. indexes have gained increasing, albeit still limited, Nevertheless, not enough time has elapsed to allow a use among industrial countries (table 3). firm judgment as to whether the recent divergence in Countries that do not use hedonic price indexes for U.S. and foreign productivity performance reflects a goods such as computers, whose quality has changed secular shift. rapidly over time, tend to understate output growth for these goods. If the price of a good reflects a quality improvement and is not quality adjusted, then Methodological Considerations the price change will be overstated and the output change understated. As a result, labor productivity The much stronger measured productivity perfor- growth will tend to be understated for countries that mance in the United States relative to the foreign do not use hedonic price indexes relative to those countries in recent years does not reflect only the countries that do make these quality adjustments. more conceptually accurate statistics embodied in the Because both the change in output and the change in BLS data set (table 2). Even based on the OECD data the capital stock will be understated for countries that set, measured productivity growth moves up appre- do not make this type of quality adjustment, the effect ciably in the United States in recent years. Neverthe- on multifactor productivity of using hedonic price less, despite the efforts of the OECD to enhance indexes is less clear to the extent that computers are cross-country comparability of measures of output both an output and a capital input. and input, methodological differences in national Can the failure of many foreign countries to use statistical agencies could still play a role in comparihedonic price indexes for computer products explain sons of the movements of U.S. and foreign productivthe relatively lower measured productivity perfority growth. Two methodological considerations that mance abroad? Probably not. First, many of the counaffect our measures of productivity growth are the tries that do use hedonic indexes, including Denmark, method for measuring quality change in price indexes France, and Japan, still show declines in productivity and the evolution of the system of national accounts. growth. Second, in many of the countries that do not employ hedonic indexes, including Germany and Italy, a relatively small fraction of their output Quality Change and Price Measurement is composed of computers and other products related to information technology. Furthermore, other meth- Calculations of capital deepening and multifactor odological differences between the United States and productivity growth depend on measures of real outmany foreign industrial countries, such as the use in put and of real capital. Because the data used to the United States of chain-weighted instead of fixedestimate output and investment are collected on a weight price indexes (table 3), may offset, to some extent, the effect of not using hedonic price indexes. 16. For a detailed discussion of Australia's productivity performance, see David Gruen and Glenn Stevens, "Australian Macroeconomic Performance in the 1990s," Reserve Bank of Australia Working Paper (July 2000). They argue that Australia's good perfor- economy" sectors rather than to advances in the information technolmance in the 1990s is due to deregulation and privatization of "old ogy sector. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

676 Federal Reserve Bulletin • October 2000 Evolution of National Income Accounting Systems (ESA79) to the 1995 system (ESA95).17 The changes to national accounts introduced by these new systems International comparisons of productivity are also are fairly substantial and include broadening the conaffected by the ongoing transition from the 1968 cept of investment to include expenditures such as System of National Accounts (SNA68) to the 1993 software and mineral exploration, reclassifying some System of National Accounts (SNA93), developed social expenditures as government consumption under the auspices of the United Nations, and from instead of private consumption, and providing a more the 1979 European System of National Accounts comprehensive treatment of the financial services sector. In addition, both SNA93 and ESA95 recommend greater use of chain-weighted price indexes. The changeover to the new systems ultimately will 3. Features of national accounts in the Group of Seven lead to greater international comparability of producand other OECD countries tivity measures. At present, however, our measures of productivity are complicated by the changeover, not Hedonic only across countries but also over time for some Expenditure Chain- Benchmark/ price index CCoouunnttrryy accounts weighted base year used for countries, because implementation has been gradual computers and is not uniform. In a number of countries, the United States .. NIPA Yes 1996 Yes changes required by the new system have been imple- Canada SNA93 Yes 1992 Yes mented only over a short range of historical data and starting from 1955 represent only preliminary estimates of the national France ESA95 Yes 1995 Yes1 accounts on the new basis. Table 3 shows the current starting national accounting system used in many countries from 1978 and also lists the starting dates for which the data Germany ESA95 No 1995 No starting became available on the new basis for these counfrom 1991 tries. Some countries, such as Sweden and Spain, Italy .... ESA95 No 1995 No starting have published data in terms of the new accounts from 1988 system only for the latter portion of our sample, Japan SNA68 No 1990 Yes while other countries have made these data available United Kingdom ESA95 Yes 1995 No for the full sample period (1980-99). For those counstarting from 1987 tries that have revised data only for the latter part of Australia SNA93 Yes 1997/98 Yes2 the sample, the early part of the sample is based on starting from 1959 the old national accounts system, SNA68 or ESA79. Belgium ESA95 No 1995 No For each country, the switch to the new accounting starting from 1980 system raises both the level and growth rates of GDP Denmark ESA95 No 1990 Yes2 relative to the old accounting system. The quantitastarting from 1988 tive effect varies from country to country, with the Finland ESA95 No 1995 No OECD estimating that, relative to the old system, the starting new accounting system raises the level of GDP from 1988 in 1996 from as little as 0.3 percent in Belgium to Ireland ESA95 No 1995 No starting as much as 5.1 percent in Denmark. Therefore, in a from 1990 country such as Denmark, where the changeover to Netherlands ESA95 Yes 1995 No starting the new accounting system occurred in 1988, the from 1995 effect of this change will tend to raise output growth Norway SNA93 Yes 1996 No in the 1990s relative to the 1980s. Other countries starting from 1978 where the changeover affects our data in the middle Spain ESA95 No 1995 No of the sample include Italy, Finland, and Sweden. For starting from 1995 these countries, labor productivity growth will tend Sweden ESA95 No 1995 Yes2 to be biased down in the 1980s relative to the starting from 1993 NOTE. NIPA refers to the national income and product accounts of the United States; SNA93, to the 1993 United Nations System of National Accounts, which represents a major revision to the 1968 United Nations System of National 17. The 1995 European System of National Accounts (ESA95) is Accounts; and ESA95, to the 1995 European System of National Accounts. 1. Hedonic price index used for microcomputers only. designed to be consistent with SNA93 and is used by European Union 2. Uses current U.S. hedonic index, exchange-rate adjusted. member states. It further enhances the comparability of national SOURCE. OECD and national statistical agencies. account data among members of the European Union. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 677 1990s simply because of the transition to the new United States, in adopting recent innovations in inforaccounting system.18 mation technology. Therefore, in countries most affected by this transition, labor productivity growth may be artificially Labor Quality low in the early part of our sample, a result that may bias our estimates toward showing an acceleration To examine the role played by changes in the quality in labor productivity. Thus, the switchovers to new of the labor force in the United States and abroad, we national accounting methods do not help to account examined data from a study undertaken at the OECD for the absence of an upswing in recorded foreign by Scarpetta, Bassinini, Pilat, and Schreyer, who productivity growth. allow for change in average worker quality by using data on wages and employment for laborers with Structural Considerations different educational levels.19 Chart 2 shows the growth rate of their labor input measure for thirteen If the failure of foreign productivity growth to pick of the countries in this study for the 1986-98 period, up in a manner commensurate with the recent rise including a breakdown of growth in labor input into in U.S. productivity growth cannot be wholly attrib- hours growth and the change in quality of labor. As uted to either measurement or cyclical factors, then shown in the chart, changes in labor quality have part of the divergence in performance may be struc- generally been a much more important component of tural in origin. Accordingly, this divergence may labor productivity growth abroad than in the United have its roots in more fundamental economic forces. States. Two important structural factors affecting move- In fact, although the data in chart 2 do not distinments in U.S. and foreign productivity growth rates guish between changes in labor quality in different are changes in the quality of the labor force—as periods, the OECD study reports that growth of U.S. reflected in the skills, educational attainment, and labor quality remained relatively stable throughout demographic characteristics of workers—and the the 1981-98 period.20 The results suggest that a sluggishness of the rest of the world, relative to the pickup in labor quality growth was not an important 18. The bias to our multifactor productivity estimates for these countries is less clear because their capital stock growth as well as 19. See "Economic Growth in the OECD Area." their output growth in the 1980s will be understated. 20. Ibid. 2. Change in labor hours, labor quality, and total labor input, selected countries, 1986-98 Percent • Labor quality 3.0 • Labor hours Total labor output 2.5 2.0 1.5 1.0 .+5 0 .5 1.0 1.5 2.0 NOTE. The data for Germany include both the pre- and post-unification DK = Denmark periods. FN = Finland The country abbreviations are the following: IR = Ireland NE = Netherlands US = United States NO = Norway GE = Germany SD = Sweden FR = France IT = Italy SOURCE. Stefano Scarpetta, Andrea Bassanini, Dirk Pilat, and Paul Schreyer, UK = United Kingdom "Economic Growth in the OECD Area: Recent Trends at the Aggregate and CA = Canada Sectoral Level," OECD Economics Department Working Paper, no. 248. AL = Australia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

678 Federal Reserve Bulletin • October 2000 factor in explaining the acceleration in U.S. produc- Comparable data on the computer and semicontivity. This finding is consistent with the evidence ductor industries do not exist for many foreign indusbased on BLS data from table 2 that show little trial countries. Instead, we examine production of IT change in the growth rate of labor quality during the goods, which include data processing equipment, past two decades. telecommunications equipment, and consumer elec- However, in some European countries, such as tronics, relative to total output for the seventeen France and Italy, a slowdown in the growth of labor countries in this study. In 1997, Ireland, Japan, Finskills does appear to partially explain the slowdown land, and Sweden were the only countries with IT in productivity growth.21 In particular, the OECD production shares that were greater than that of the study reports that, once an adjustment has been made United States (chart 3). High IT production shares in for labor quality, trend multifactor productivity Finland and Ireland are consistent with their relagrowth in France and Italy picks up in the latter half tively fast multifactor productivity growth and may of the 1990s relative to the first half of the 1990s. partially explain it, although neither Finland nor However, even after one adjusts for labor quality, the Ireland has experienced a sizable acceleration in estimates of trend multifactor productivity growth in multifactor productivity in recent years. Low multi- France and Italy in the latter half of the 1990s are still factor productivity growth in Denmark and Spain is lower than the estimates of multifactor productivity consistent with these countries' relatively low level growth in the 1980s. In sum, unmeasured changes of IT production. in labor quality do not appear to account for most The other two channels relate to the use of inforof the divergences in U.S. and foreign productivity mation technology in other sectors of the economy. performance in recent years. Investment in IT goods can boost the capital-labor ratio and therefore raise labor productivity. In recent years, with the price of IT goods falling rapidly as a Diffusion of Technology result of technological improvements, investment in IT equipment has been increasing rapidly relative to A second hypothesis explaining why foreign proinvestment in other types of capital. Finally, informaductivity growth has not risen as much as U.S. protion technologies, such as Internet-ready computers, ductivity growth is the slower pace with which may create network effects that spur the disseminaforeign countries have adopted recent innovations tion of information, resulting in disembodied techniin information technology (IT). Researchers have cal change. focused on three channels by which those innova- Investment in information technology abroad does tions may increase productivity growth. The first not appear to have translated into higher productivity channel is the contribution that IT industries make growth through these two channels as much as in the toward productivity growth through heightened pro- United States. One reason is that, compared with the ductivity performance in the production of IT goods, United States, foreign investment in information techsuch as computers, software, and other high-tech nology has been a smaller share of foreign economies equipment. Even though these industries generally than of the U.S. economy, so that the payoffs to contribute only a small fraction of total production, information technology in terms of improved producthey may make a large contribution to overall productivity growth have yet to show up. tivity growth if there are strong productivity gains in As evidence of this possibility, table 4 displays these industries. For example, Oliner and Sichel estidata from Schreyer on several measures of the IT mate that, although the computer and semiconductor sector in the G-7 economies.23 From this table, one sectors' share of total output in the nonfarm business sector is only about 2Vi percent in the United States for 1996-99, these sectors accounted for about half of their estimate of multifactor productivity growth in the annual growth rate of labor productivity from 1991-95 to from 1996 to 1999.22 1996-99. See Oliner and Sichel, "The Resurgence of Growth in the 1990s." Other studies that have also found a significant contribution to the acceleration in labor productivity growth from the production of computer hardware include Gordon, "Does the 'New Economy' 21. One possible explanation for this slowdown in labor quality in Measure Up to the Great Inventions of the Past?"; Jorgenson and some European countries is that in the 1980s and the 1990s, declines Stiroh, "Raising the Speed Limit: U.S. Economic Growth in the in hours worked in these countries (see table 1) fell particularly hard Information Age;" Karl Whelan, "Computers, Obsolescence, and on low-skilled workers. This trend tended to boost the average quality Productivity," Finance and Economics Discussion Series 2000-06 of a worker in those years. In more recent years, with labor market (Board of Governors of the Federal Reserve System, January 2000); conditions improving, the utilization of low-skilled workers has and Council of Economic Advisers, Economic Report of the President increased, thereby slowing labor quality growth. (February 2000). 22. Oliner and Sichel also estimate that these sectors contributed 23. See Schreyer, "The Contribution of Information and Communi- 0.35 percentage point to an acceleration of roughly 1 percentage point cation Technology to Output Growth." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 679 3. Production of information technology goods, selected countries, 1997 NOTE. IT goods include data processing equipment, telecommunications FR = France equipment, and consumer electronics. BE = Belgium The country abbreviations are the following: NE = Netherlands GE = Germany IR = Ireland CA = Canada JA = Japan IT = Italy FN = Finland SP = Spain SD = Sweden DK = Denmark US = United States AL = Australia UK = United Kingdom NO = Norway can see that information technology's share of non- total income in the United States is also higher than residential gross fixed capital formation has been in the other G-7 countries. As a result, IT equipment increasing in all of the G-7 countries as producers makes a larger contribution to output growth in the substitute IT equipment for other types of investment United States than in the other G-7 countries.24 goods. As a result, information technology's share of Finally, Schreyer's study also reports that the conthe total nominal capital stock has increased in all of tribution of IT capital to output growth is somewhat these countries, with the United States, at 7.4 percent, higher in the United Kingdom and Canada than it is having the highest share of IT capital in 1996 and Italy, at 2.1 percent, the lowest. With IT equipment making up a larger share of total capital, it is not 24. Schreyer's analysis probably understates the contribution of information technology to growth in all countries because his definisurprising that information technology's share of tion of IT equipment does not include software. 4. Share and contribution of information technology in the Group of Seven countries, 1985, 1990, and 1996 Percent except as noted United Western United IT measures Canada France Italy Japan States Germany Kingdom Share of IT In nonresidential gross fixed capital formation 1985 12.1 11.1 10.1 7.1 5.8 4.2 10.4 1990 15.7 12.6 8.8 7.2 7.7 5.3 13.3 1996 19.9 16.2 10.9 10.9 9.6 8.1 18.3 In nominal productive capital stock 1985 6.2 4.3 2.4 2.9 1.3 1.2 3.6 1996 7.4 5.0 3.2 3.0 2.1 2.3 5.2 In total income 1985 .8 .7 .3 .3 .5 .5 .4 1990 1.3 1.4 .9 .7 .8 .7 1.0 1996 1.7 1.5 .9 .8 .9 .8 1.5 Contributions to output growth (percentage points) from IT equipment 1980-85 .28 .25 .17 .12 .13 .11 .16 1985-90 .34 .31 .23 .17 .18 .17 .27 1990-96 .42 .28 .17 .19 .21 .19. .29 SOURCE. Paul Schreyer, "The Contribution of Information and Communication Technology to Output Growth: A Study of the G-7 Countries," OECD Science, Technology, and Industry Working Paper, 2000/2 (OECD, 2000). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

680 Federal Reserve Bulletin • October 2000 4. Acceleration in multifactor productivity in relation to the number of Internet hosts, selected countries Percent change1 Australia • — 1.5 United States • — 10 Ireland Sweden _ «- • ^ ^ • Norway France Belgium Canada 5 — • • — .5 < > United Kingdom Denmark _ L0 Italy O Japan Netherlands # • • - 15 — 2.0 1 1 1 1 1 1 1 1 1 1 10 20 30 40 50 60 70 80 Internet hosts per 1,000 inhabitants, 1998 1. Change in growth rates of multifactor productivity between 1981-95 and SOURCE. Number of Internet hosts from OECD Information Outlook 2000, 1996-98. figure 2, p. 79. in France, Germany, Italy, and Japan. This finding observations into four quadrants. The countries that also reflects information technology's relatively low are in the northeast quadrant in both charts are Canshare of total income in those countries.25 ada, Norway, Sweden, and the United States— Unfortunately, Schreyer's analysis does not extend countries in which a relatively large improvement in beyond 1996. It therefore does not include the latter multifactor productivity growth has been accompahalf of the 1990s, for which researchers such as nied by a substantial proliferation of information Oliner and Sichel have found that the use of informa- technology. The countries in the southwest quadrant tion technology as a capital input played a significant include Japan, France, and Italy; in these countries role in the pickup in labor productivity growth in the declines in multifactor productivity growth have the United States.26 To present more recent evidence, been accompanied by a more limited diffusion of we examine the change in multifactor productivity information technology. growth for selected OECD countries during 1981-95 and 1996-98 plotted against the number of Internet hosts (chart 4) and also against the number of secure SUSTAINED VERSUS TRANSITORY GROWTH servers (chart 5), which is a more relevant measure of DIFFERENTIALS the extent of electronic commerce than the number of Internet hosts.27 Using the median of the correspond- An important question raised by the estimated differing variables as critical values, we can group the ential between U.S. and foreign productivity growth rates is how long it will be sustained. Even if the 25. Although the data on both IT production and investment are higher measured productivity growth experienced in consistent with a slower rate of innovation and adoption of information technology abroad than in the United States, the reasons for this development are not clear. One explanation is that, relative to foreign network number, forms its unique IP address. If you use Point-tocountries, several institutional features of the United States are more Point Protocol to get access to your access provider, you have a hospitable to innovation and adoption of these technologies. Such unique IP address for the duration of any connection you make to features include the regulatory environment, the flexibility of the labor the Internet and your computer is a host for that period. In this force, and the breadth and depth of financial markets. For a more context, a "host" is a node in a network. detailed discussion of these features, see Roger Ferguson, "Is Information Technology the Key to Higher Productivity Growth in the United See whatis.com. On line. TechTarget.com, Inc. Available: http:// States and Abroad?" (remarks before the 2000 Global Economic whatis.techtarget.com/WhatIs_Definition_Page/0,4152,212254,00.html and Investment Outlook Conference, Carnegie Bosch Institute, Oct. 21, 1999 [last update] Pittsburgh, Pa., September 21, 1999), available on line at http:// www.federalreserve.gov/boarddocs/speeches/1999/19990921 .htm. Specific to the Web, a Web server is the computer program 26. See Oliner and Sichel, "The Resurgence of Growth in the Late (housed in a computer) that serves requested HTML pages or 1990s." files. A Web client is the requesting program associated with the 27. We used the following definitions of an Internet host and a user. The Web browser in your computer is a client that requests server: HTML files from Web servers. On the Internet, the term "host" means any computer that has See whatis.com. On line. TechTarget.com, Inc. Available: http:// full two-way access to other computers on the Internet. A host whatis.techtarget.com/WhatIs_Definition_Page/0,4152,212964,00.html has a specific "local or host number" that, together with the Nov. 29, 1999 [last update]. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Productivity Developments Abroad 681 5. Acceleration in multifactor productivity in relation to the number of secure Internet servers, selected countries Percent change1 <1 Australia — 1.5 United States • — 1.0 Norway Canada — .5 ® • # Sweden • + France Ireland — 0 'mw Belgium — .5 # United Kingdom — Italy D™rk — 1.0 — ^Japan ^ — 1.5 Netherlands — 2.0 1 1 1 1 1 1 1 1 1 1 10 20 30 40 50 60 70 80 Secure servers per 1 million inhabitants, 1998 1. Change in growth rates of multifactor productivity between 1981-95 and SOURCE. Number of Internet servers from OECD Information Outlook 2000, 1996-98. figure 3, p. 80. the United States in recent years is attributable to second half of the 1990s, measured as either labor or structural factors, rather than cyclical or methodologi- multifactor productivity growth, does not appear to cal considerations, this does not mean that US. pro- have occurred in most foreign industrial countries. In ductivity growth will indefinitely remain higher than fact, in many foreign industrialized economies, meathat in the rest of the world. In fact, there are reasons sured growth rates of labor and multifactor productivto believe that the differential is likely to erode over ity actually declined during this period. time. In the absence of more definitive answers, the First, to the extent that past experience is a useful following explanations may be relevant as to why guide, these countries will likely exhibit a phenom- foreign economies have not experienced the acceleenon known as convergence: Countries that are ration in productivity witnessed in the United States. behind in terms of their implementation of technolo- First, to some extent, recent U.S. productivity perforgies can learn from countries that are more advanced mance may contain a cyclical element related to the and increase their productivity more rapidly. As these strength of the economy, compared with more muted countries take advantage of new technologies and the growth abroad, although this factor does not seem availability of unexploited returns to scale, productiv- to explain all the divergence in U.S. and foreign ity growth rates first rise and then diminish over time. productivity performance. Second, although it is Second, the U.S. experience and that of some other difficult to determine the overall quantitative effect of countries suggests that the increasing use of informa- differences in measurement across countries, the evition technology has been an important part of a dence suggests that measurement bias has, at most, pickup in multifactor productivity growth. For exam- only a small role in accounting for the failure of ple, Sweden, Norway, and Canada all tend to be measured productivity growth to pick up abroad. relatively intensive users of information technology, Finally, some of the upswing in U.S. productivity and they seem to be starting to reap the benefits of growth compared with that abroad is likely due to this investment. Because investment in and use of more fundamental changes in the U.S. economy, information technology is becoming increasingly reflecting more advanced diffusion of technological important, even in countries where structural impedi- improvements, especially in the IT sector, than has ments such as inflexible labor markets and a burden- occurred in most foreign industrialized countries. some regulatory environment are thought to inhibit Nevertheless, there are reasons to expect that the the adoption of new technologies, it is not unreason- differential will not be sustained indefinitely. First, able to expect that IT investments will help boost the historical record suggests that productivity growth productivity growth abroad in the future. has tended to converge among industrial countries. Second, there is evidence that, although the diffusion of information technology has not occurred as rapidly CONCLUSION abroad as in the United States, the proliferation of We have documented that a pickup in productivity these technologies is occurring there as well. • growth such as occurred in the United States in the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

682 Industrial Production and Capacity Utilization for August 2000 Released for publication September 15 first half of the year, when increases in manufacturing production averaged a little more than Vz percent per Industrial production posted a 0.3 percent gain in month. Mining output was unchanged in August, August and was unchanged in July; the level of while production at utilities surged 4.0 percent. output in July was initially estimated to have risen Capacity utilization for total industry rose 0.1 per- 0.4 percent. Manufacturing output inched up 0.1 per- centage point, to 82.3 percent, a level 0.3 percentage cent in both July and August, a slower rate than in the point above its 1967-99 average. Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity — Industrial production 150 Capacity utilization - // - 140 A — Manufacturing 130 A 85 - - ^^ Total industry _ 120 t wb"\Total industry j - 110 Manufacturing " v^' ~ 80 T 100 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 1988 1990 1992 1994 1996 1998 2000 Industrial production, market groups Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 — Consumer goods 155 — Intermediate products - 155 - 145 - - 145 — Durable /V^f \ - 135 135 _ _ — vJ 125 — 175 Construction supplies s^f — f - 115 — 115 - 105 - 105 Nondurable 95 ^Xtftt' Business supplies 95 1 V 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, August. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

683 Industrial production and capacity utilization, August 2000 Industrial production, index, 1992=100 Percentage change Category 2000 20001 Aug. 1999 to Mayr Juner Julyr Aug. Mayr Juner Julyr Aug.? Aug. 2000 Total 144.7 145.2 145.2 145.7 5.8 Previous estimate 144.4 144.8 145.3 .6 .2 .4 Major market groups Products, total2 131.2 131.3 131.5 131.8 .2 .1 .2 .2 3.2 Consumer goods ... 118.8 119.0 118.6 119.2 .2 .2 -.3 .5 1.3 Business equipment 185.7 186.8 188.6 189.2 .4 .6 1.0 .3 8.8 Construction supplies 137.4 136.9 137.1 135.5 -1.3 -.3 .1 -1.2 1.9 Materials 168.1 169.3 168.9 169.9 1.9 .7 -.2 .6 9.9 Major industry groups Manufacturing 150.3 151.0 151.2 151.3 .6 .5 .1 .1 6.2 Durable 189.2 190.8 190.9 191.3 1.3 .8 .0 .2 9.7 Nondurable 113.2 113.3 113.4 113.3 -.3 .1 .1 -.1 1.6 Mining 102.3 103.1 104.3 104.3 1.1 .8 1.1 .0 5.9 Utilities 119.0 115.7 113.4 117.9 3.6 -2.8 -2.0 4.0 .1 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrr--ccceeennntttaaagggeee 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, AAAuuuggg... 111999999999 11996677--9999 11998822 11998888--8899 Aug. Mayr June1" Julyr Aug.? tttooo AAAuuuggg... 222000000000 Total 82.0 71.1 85.4 80.7 82.4 82.4 82.2 82.3 3.7 Previous estimate 82.3 82.2 82.3 Manufacturing 81.1 69.0 85.7 79.7 81.5 81.6 81.4 81.2 4.2 Advanced processing 80.5 70.4 84.2 78.8 81.0 81.1 81.1 81.1 5.4 Primary processing 82.4 66.2 88.9 82.8 83.3 83.3 82.7 82.2 1.5 Mining 87.3 80.3 88.0 81.9 85.7 86.5 87.6 87.8 -1.2 Utilities 87.5 75.9 92.6 92.2 92.3 89.6 87.7 91.2 1.2 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. MARKET GROUPS ment more than accounting for the gain. The production of industrial equipment moved down 0.5 percent. After having declined 0.3 percent in July, the output A 1.1 percent drop in transit equipment was due to of consumer goods rose 0.5 percent in August; pro- declines in the output of commercial aircraft and of duction in the durable and nondurable goods sectors medium and heavy trucks. A large decrease in farm posted comparable gains. Within consumer durables, machinery and equipment production pushed down an increase in the output of automotive products, the "other equipment" index 4.8 percent. On balmainly motor vehicle assemblies and replacement ance, the level of output of business equipment was tires, more than offset a decline in the production of 8.8 percent higher than in August 1999, with gains other durable goods. Among other durable goods, a in all major sectors except transit equipment. The gain in the production of household appliances production of defense and space equipment dropped reversed a small portion of the sizable decline in July, 0.7 percent after two months of sizable increases. but the output of carpeting and furniture and of After a downward-revised 0.1 percent rise in July, miscellaneous durable goods fell. Within nondurable the production of construction supplies fell 1.2 perconsumer goods, energy products jumped 3.7 percent cent in August and is now about 2xh percent below its in August, led by gains in residential sales of electric- recent peak in April. The output of durable goods ity and fuel oil. The output of non-energy products materials rose 0.5 percent, bringing production to a ticked up just 0.1 percent. level 15.6 percent above the level in August 1999. The production of business equipment rose 0.3 per- The output of equipment parts, especially semiconcent last month, with another large increase in the ductors, continued to post strong gains, but the output output of information processing and related equip- of consumer parts and of basic metals, such as steel, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

684 Federal Reserve Bulletin • October 2000 fell further. The output of nondurable goods materials incorporation of newly available, more comprehendropped 0.2 percent, continuing the sluggish pattern sive source data typical of annual revisions and, for that has been evident this year. In contrast, produc- some series, the introduction of improved compilation of energy materials jumped 1.7 percent. tion methods. The revision will also include a refinement of the method used to aggregate the individual series in the production and capacity indexes. The INDUSTRY GROUPS new source data are for recent years, primarily 1997 through 1999, and the modified methods affect data Manufacturing output edged up 0.1 percent in August from 1992 onward. for the second consecutive month. Upward revisions The G.17 statistical release will be redesigned with to the manufacturing index for May and June were the publication of the revision. More special aggremore than offset by a downward revision for July, gates will be added, but some detailed industry data which was largely attributable to lower production in will be available only on the Federal Reserve Board's steel, paper, and automotive parts. In August the level public web site. Additional details regarding the redeof output in the manufacturing sector was 6.2 percent sign will be provided next month. higher than the level in August 1999. Excluding The updating of source data for IP will include motor vehicles and parts, manufacturing production annual data from the following reports of the Bureau fell 0.1 percent. The output of durable goods indus- of the Census: the 1997 Census of Manufactures, the tries moved up 0.2 percent, with the production of 1998 Annual Survey of Manufactures, and selected transportation equipment advancing 0.9 percent. editions of its 1998 and 1999 Current Industrial Durable goods production was also lifted by further Reports. Annual data from the U.S. Geological Survey gains in computer and office equipment and semicon- regarding metallic and nonmetallic minerals (except ductors. The production of nondurable goods edged fuels) for 1998 and 1999 will also be introduced. The down, reversing the July increase; continued weak- updating will include revisions to the monthly indiness in textile mill products, apparel, and rubber and cator for each industry (either physical product data, plastics accounted for most of the decline. The over- production-worker hours, or electric power usage) all factory operating rate dropped 0.2 percentage and revised seasonal factors. point, to 81.2 percent; capacity utilization at primary- Capacity and capacity utilization will be revised to processing industries fell 0.5 percentage point, while incorporate preliminary data from the 1999 Survey of utilization at advanced-processing industries held Plant Capacity of the Bureau of the Census, which steady at 81.1 percent. covers manufacturing, along with other new data on The level of output in the mining sector was flat in capacity from the U.S. Geological Survey, the Depart- August after three months of strong gains, which ment of Energy, and other organizations. The statiswere mainly due to increases in the output of energy tics on the industrial use of electric power will incorextraction industries. The utilization rate at mines porate additional information received from utilities ticked up to 87.8 percent, a level 0.5 percentage point for the past few years and will include some data above its long-run average. Output at utilities, which from the 1997 Census of Manufactures and 1998 had dropped 2.8 percent in June and 2.0 percent in Annual Survey of Manufactures. July, jumped 4.0 percent; the operating rate at utilities Aggregate industrial production indexes have been increased to 91.2 percent, nearly 4 percent above its built as annually weighted chain-type indexes, beginlong-run average. ning with data for 1977. Currently, the weights are changed at the middle of every year; with the coming revision, the weights will change every month, rather than once a year, beginning with data for 1992. REVISION OF INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION Once the revision is published, it will also be made available on the Board's web site In November the Federal Reserve Board will publish (www.federalreserve.gov/releases/gl7). The revised revisions to the index of industrial production (IP), to data will also be available through the web site of the the related measures of capacity and capacity utiliza- Department of Commerce. Further information on tion, and to the index of industrial use of electric these revisions is available from the Board's Induspower. The updated measures will reflect both the trial Output Section (telephone 202-452-3197). • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

685 Announcements FEDERAL OPEN MARKET COMMITTEE well as financial holding companies, focuses on the DIRECTIVE Gramm-Leach-Bliley Act's provisions for working with the functional regulators of the companies' The Federal Open Market Committee at its meeting securities, insurance, and commodities subsidiaries. on August 22, 2000, decided to maintain the existing There should be minimal, if any, noticeable change stance of monetary policy, keeping its target for the in the well-established relationships between the federal funds rate at 6V2 percent. Federal Reserve and the primary supervisors of Recent data have indicated that the expansion depository institutions controlled by financial holdof aggregate demand is moderating toward a pace ing companies. closer to the rate of growth of the economy's poten- "Effective financial holding company supervision tial to produce. The data have also indicated that requires strong, cooperative relationships between more rapid advances in productivity have been the Federal Reserve and primary bank, thrift, and raising that potential growth rate as well as con- functional regulators and foreign supervisors, "wrote taining costs and holding down underlying price Richard Spillenkothen, director of the Board's Divipressures. sion of Banking Supervision and Regulation. "These Nonetheless, the Committee remains concerned relationships respect the individual statutory authoriabout the risk of a continuing gap between the growth ties and responsibilities of the respective supervisors of demand and potential supply at a time when the but at the same time allow for enhanced information utilization of the pool of available workers remains flows and coordination so that individual responsibiliat an unusually high level. ties can be carried out effectively without creating Against the background of its long-term goals duplication or excessive burden." of price stability and sustainable economic growth In supervising financial holding companies, the and of the information currently available, the Com- Federal Reserve will rely on reports filed with or mittee believes the risks continue to be weighted prepared by bank, thrift, and functional regulators, as mainly toward conditions that may generate height- well as on publicly available information for both ened inflation pressures in the foreseeable future. regulated and nonregulated subsidiaries. When necessary and appropriate, the Federal Reserve may conduct or participate in reviews at banks, thrifts, or functionally regulated subsidiaries to verify that risk- GUIDANCE ISSUED ON FRAMEWORK management and internal control policies established FOR BOARD SUPERVISION OF FINANCIAL at the holding company level are being effectively HOLDING COMPANIES implemented. Most of the concepts discussed in the framework The Federal Reserve Board on August 15, 2000, are already applied by the Federal Reserve in the issued guidance outlining the purpose and scope of consolidated supervision of complex bank holding its supervision of financial holding companies autho- companies. The Federal Reserve's supervision of rized to engage in a diversified range of financial financial holding companies will evolve as their activities. activities and structures become more diverse. The The Federal Reserve is responsible for determin- levels of supervision may vary depending on a finaning that financial holding companies, on a consoli- cial holding company's mix of banking, securities, dated basis, are operated in a manner that does not and insurance activities. threaten the viability of their depository institution Supervisory letters are the Federal Reserve's subsidiaries. Through August 11, 365 banking orga- primary means of communicating key policy direcnizations had elected to be treated as financial hold- tives to its examiners, supervisory staff, and the banking companies. ing industry. Supervisory letters can be viewed The guidance, contained in a supervisory letter on the Board's web site: www.federalreserve.gov/ (SR 00-13) to Federal Reserve supervisors as boarddocs/srletters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

686 Federal Reserve Bulletin • October 2000 AGENCIES PROPOSE CONSUMER PROTECTION made electronically can be acknowledged electroni- RULES FOR INSURANCE SOLD BY DEPOSITORY cally or in paper form by the consumer. INSTITUTIONS The location of insurance sales and payment of referral fees is also addressed in the proposed rules. The Office of the Comptroller of the Currency, the To the extent practicable, a depository institution Board of Governors of the Federal Reserve System, must keep insurance and annuity sales activities the Federal Deposit Insurance Corporation, and the physically segregated from the areas where retail Office of Thrift Supervision jointly proposed on deposits are routinely accepted from the general pub- August 21, 2000, consumer protection rules for lic. In addition, bank employees may refer a conthe sale of insurance products by depository institu- sumer who seeks to purchase an insurance product or tions. The proposed rule, published in the Federal annuity to a qualified salesperson. The referral fee Register, implements section 305 of the recently may be no more than a one-time nominal charge that enacted Gramm-Leach-Bliley Act. Comments are does not depend on whether the referral results in a due October 5. transaction. The act directs the agencies to publish rules that Persons who sell insurance products or annuities apply to retail sales practices, solicitations, advertis- must be qualified and licensed under a state's applicaing, or offers of insurance. ble insurance licensing standards under the proposed The proposed rule applies to any depository rules. institution or any person selling, soliciting, advertising, or offering insurance products or annuities to a consumer at an office of the institution or on behalf of WIRELESS ACCESS TO THE BOARD'S PUBLIC the institution. The following disclosures would be WEB SITE Now AVAILABLE THROUGH required: HAND-HELD DEVICES 1. The insurance product or annuity is not a deposit The Federal Reserve Board announced on August 25, or other obligation of, or guaranteed by, the 2000, that wireless personal digital assistants can be depository institution or—if applicable—its used to access and read items on the Board's public affiliate web site. 2. The insurance product or annuity is not insured The most popular items on the web site will be by the Federal Deposit Insurance Corporation or available, including statistical reports on foreign any other agency of the United States, the deposi- exchange rates, selected interest rates, consumer tory institution or—if applicable—its affiliate credit, and industrial production and capacity utiliza- 3. In the case of an insurance product or annuity that tion. Press releases and Federal Open Market Cominvolves an investment risk, there is investment mittee announcements will also be accessible. Items risk associated with the product, including the may be added or deleted with changes in user demand possible loss of value and technology. 4. The depository institution may not condition an Users of Palm OS-compatible personal digital extension of credit on the consumer's purchase assistants can download the required application of an insurance product or annuity from the file from the Board's web site to their personal comdepository institution or from any of its affiliates, puters and then transfer it onto their personal digital or on the consumer's agreement not to obtain, or a assistants. Users of Windows CE-compatible perprohibition on the consumer from obtaining, an sonal digital assistants can directly access pages that insurance product or annuity from an unaffiliated are optimized for display on their personal digital entity. assistants. The application file can be found on the Board's These disclosures must be made orally and in web site: www.federalreserve.gov/wireless. writing before the completion of the sale of an insurance product or annuity. The disclosures may be made electronically if the consumer affirmatively ENFORCEMENT ACTIONS AND TERMINATIONS consents, provided the consumer can retain or later OF PREVIOUS ACTIONS obtain the disclosures by printing or storing them electronically, such as by downloading. The rules The Federal Reserve Board announced on August 11, also require written acknowledgment from the con- 2000, the execution of a written agreement by and sumer that the disclosures were received. Disclosures among Unity Bancorp, Inc., Clinton, New Jersey, the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 687 Federal Reserve Bank of New York, and the Com- The Federal Reserve Board announced on missioner of Banking and Insurance of the State of August 11, 2000, the termination of the following New Jersey. enforcement actions: The Federal Reserve Board announced on August 23, 2000, the issuance of a written agreement by and • National Bank of Greece, S.A., Athens, Greece, among Banco Union, S.A.C.A., Caracas, Venezuela; and the National Mortgage Bank of Greece, S.A. Banco Union, S.A.C.A., Miami Agency, Miami, Cease and desist order dated September 25, 1989, Florida; Banco Union, S.A.C.A., New York Agency, was terminated June 14, 2000 New York, New York; the Federal Reserve Bank • Farmers & Merchants Bank, Long Beach, of Atlanta; the Federal Reserve Bank of New York; California. Cease and desist order dated March 23, the New York State Banking Department; and the 1992, was terminated June 12, 2000. • State of Florida Department of Banking and Finance. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

688 Minutes of the Meeting of the Federal Open Market Committee Held on June 27-28, 2000 A meeting of the Federal Open Market Committee Mr. Porter,1 Deputy Associate Director, Division was held in the offices of the Board of Governors of of Monetary Affairs, Board of Governors the Federal Reserve System in Washington, D.C., on Messrs. Freeman,2 Oliner,3 Struckmeyer, Whitesell, Tuesday, June 27, 2000, at 2:30 p.m. and continued and Ms. Zickler,2 Assistant Directors, Divisions on Wednesday, June 28, 2000, at 9:00 a.m. of International Finance, Research and Statistics, Research and Statistics, Monetary Affairs, and Present: Research and Statistics respectively, Board Mr. Greenspan, Chairman of Governors Mr. McDonough, Vice Chairman Mr. Broaddus Mr. Reifschneider,1 Section Chief, Division Mr. Ferguson of Research and Statistics, Board of Governors Mr. Gramlich Mr. Guynn Mr. Bomfim2 and Ms. Garrett, Economists, Division Mr. Jordan of Monetary Affairs, Board of Governors Mr. Kelley Mr. Meyer Ms. Low, Open Market Secretariat Assistant, Mr. Parry Division of Monetary Affairs, Board of Governors Mr. Hoenig, Ms. Minehan, Messrs. Moskow and Poole, Alternate Members of the Ms. Pianalto and Mr. Stone, First Vice Presidents, Federal Open Market Committee Federal Reserve Banks of Cleveland and Philadelphia respectively Messrs. McTeer and Stern, Presidents of the Federal Reserve Banks of Dallas and Messrs. Hakkio, Hunter, Lang, Rasche, and Minneapolis respectively Rosenblum, Senior Vice Presidents, Federal Reserve Banks of Kansas City, Chicago, Mr. Kohn, Secretary and Economist Philadelphia, St. Louis, and Dallas respectively Mr. Bernard, Deputy Secretary Ms. Fox, Assistant Secretary Messrs. Altig, Fuhrer, Judd, Ms. Perelmuter, and Mr. Gillum, Assistant Secretary Mr. Weber, Vice Presidents, Federal Reserve Mr. Mattingly, General Counsel Banks of Cleveland, Boston, San Francisco, Mr. Baxter, Deputy General Counsel New York, and Minneapolis respectively Ms. Johnson, Economist Mr. Stockton, Economist By unanimous vote, the minutes of the meeting of the Federal Open Market Committee held on May 16, Ms. Cumming, Messrs. Eisenbeis, Goodfriend, Howard, Lindsey, Reinhart, and Simpson, 2000, were approved. Associate Economists By unanimous vote, David J. Stockton was elected Mr. Fisher, Manager, System Open Market Account to serve as economist until the election of his successor at the first meeting of the Committee after Mr. Winn, Assistant to the Board, Office of Board Members, Board of Governors Mr. Ettin, Deputy Director, Division of Research and Statistics, Board of Governors 1. Attended portion of meeting relating to the Committee's discussion of the economic outlook. Messrs. Madigan and Slifman, Associate Directors, 2. Attended portion of meeting relating to the Committee's long- Divisions of Monetary Affairs and Research and run policy. Statistics respectively, Board of Governors 3. Attended Wednesday session only. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

689 December 31, 2000, with the understanding that in step-up in manufacturing activity lifted capacity utilithe event of the discontinuance of his official connec- zation a little further, bringing it still closer to its tion with the Board of Governors he would cease to long-term average. have any official connection with the Federal Open Growth of consumer spending apparently slowed Market Committee. considerably in the second quarter after outsized The Manager of the System Open Market Account gains in several previous quarters. Nominal retail reported on recent developments in foreign exchange sales declined in both April and May; outlays fell at markets. There were no open market operations in durable goods outlets and edged up at nondurable foreign currencies for the System's account in the goods stores. Despite the recent weakness, however, period since the previous meeting, and thus no vote continued solid expansion of disposable incomes, the was required of the Committee. large accumulated gains in household wealth, and The Manager also reported on developments in very positive consumer sentiment suggested that domestic financial markets and on System open mar- underlying fundamentals behind household spending ket transactions in government securities and federal remained favorable. agency obligations during the period May 16, 2000, Higher mortgage rates apparently were exerting a through June 27, 2000. By unanimous vote, the Com- restraining effect on residential housing activity. mittee ratified these transactions. Total private housing starts fell in May to their lowest The Committee then turned to a discussion of the level since the middle of last year. Moreover, while economic outlook and the implementation of mone- sales of new single-family homes had not yet slacktary policy over the intermeeting period ahead. ened appreciably through April (latest data), sales The information reviewed at this meeting sug- of existing homes through May were running below gested that the economic expansion was moderating their 1999 average. In addition, consumers' assesssomewhat from a very rapid pace in the first quarter. ments of homebuying conditions and builders' rat- Consumer spending was increasing only modestly ings of new home sales had weakened significantly. after large gains earlier, housing activity was down Business fixed investment appeared to be on track somewhat, and growth of business spending on capi- for another rapid increase in the second quarter. Shiptal equipment, while still quite vigorous, was slowing ments of nondefense capital goods, notably computa little after a first-quarter surge. As a consequence, ing and communications equipment, continued on a industrial production and employment were rising at strong uptrend in May, and the persisting strength in somewhat reduced rates. Core consumer prices con- orders for many types of equipment pointed to further tinued to evidence some acceleration, to an important advances in coming months. Outlays for nonresidenextent reflecting some indirect effects of the sharp tial structures, which had been weak in 1999, rose increase in oil prices over the past year. sharply in the first quarter and recorded a further Nonfarm payroll employment increased further in appreciable gain in April. May, although the rise was associated with a surge in The book value of manufacturing and trade invengovernment hiring of census workers that more than tories increased in April at about the first-quarter offset a considerable contraction in private payrolls. pace. Stockbuilding was generally in line with sales, The drop in private employment following very large and aggregate inventory-sales ratios for the manufacgains in March and April seemed, in the absence of turing, wholesale, and retail sectors remained near other signs of weakening labor demand, to be attrib- the bottom of their ranges for the preceding twelve utable at least to some extent to statistical noise and months. There were few indications across industries seasonal adjustment problems. Averaging over the of significant inventory imbalances. three months, private nonfarm employment advanced The U.S. trade deficit in goods and services for at about the rate of the previous twelve months. The April was very close to its March level. However, the civilian unemployment rate averaged 4.0 percent over deficit was up appreciably from its average for the April and May. first quarter, with the value of imports increasing Industrial production continued to rise in May after substantially more than the value of exports. The a brisk increase in April, but the average gain for available information indicated robust economic April and May was somewhat below the average growth in all major regions of the world thus far this monthly advance during the two previous quarters. year. Economic activity in the foreign industrial Manufacturing output climbed at a slower rate in the countries expanded vigorously in the first quarter, April-May period, reflecting less rapid growth in the and growth generally appeared to be continuing at a production of high-tech equipment and sluggish out- strong pace in the second quarter. In addition, the put of other non-automotive equipment. The further available information suggested that a number of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

690 Federal Reserve Bulletin • October 2000 emerging-market economies had registered very a moderation in aggregate demand and a continuarapid expansion thus far this year. tion of limited cost and price pressures, and thus a Recent information continued to indicate that con- reduced probability of additional monetary tightensumer price inflation had picked up, while producer ing. On balance over the intermeeting interval, yields price inflation was essentially unchanged. Consumer on longer-term Treasury securities and investmentprices edged up in May after having been unchanged grade corporate bonds declined appreciably, and most in April; excluding the food and energy components, broad stock price indexes ended the period little consumer prices rose moderately further in May. For changed. the twelve months ended in May, both total and core In foreign exchange markets, the trade-weighted consumer prices increased somewhat more than in value of the dollar depreciated somewhat over the the previous twelve-month period. At the producer intermeeting period against an index of major currenlevel, prices of finished goods other than food and cies. Decreases in longer-term U.S. interest rates energy edged higher in April and May and rose weighed on the dollar, and the dollar's decline against during the twelve months ended in May by the same the euro also occurred against the background of moderate amount recorded for the previous twelve- indicators of accelerating activity in the euro area and month period. With regard to labor costs, average possible further monetary tightening. Frequent hints hourly earnings of production or nonsupervisory that the Bank of Japan might abandon its zero policy workers registered only a slight increase in May after rate might have contributed to the dollar's weakness a somewhat larger rise in April. The advance for the against the yen. By contrast, the dollar strengthened a twelve months ended in April was about the same as little against the currencies of a group of other importhat for the previous twelve-month period. tant trading partners, notably the currencies of At its meeting on May 16, 2000, the Committee Mexico, Indonesia, and the Philippines. adopted a directive that called for a tightening of M2 and M3 appeared to have rebounded in June conditions in reserve markets sufficient to raise the following the clearing in May of unusually large final federal funds rate Vi percentage point, to a level of personal tax payments for 1999. The expansion of 6V2 percent. The members noted that the relatively these aggregates likely had been held down someforceful move was necessary given the persisting what this year by sluggish currency growth in the growth of aggregate demand in excess of the expan- aftermath of the century date change and by the sion of potential supply, which was creating rising increase in the opportunity cost of their liquid compopressures in already tight markets for labor and other nents associated with rising market interest rates. resources. In their view, this action would help bring Nevertheless, supported by rapid growth in nominal aggregate demand into better alignment over time spending and income, M2 evidently had expanded with potential supply and thereby work to forestall over the first half of the year at a rate close to that in the emergence of inflationary expectations and the 1999, and M3 had expanded at a faster rate than last buildup of inflationary pressures. They also noted year. Strong demands for bank credit, funded by the that even with this additional firming, the risks were issuance of large time deposits and other liabilities still weighted mainly in the direction of rising infla- not included in M2, underlaid the acceleration in M3. tionary pressures. The staff forecast prepared for this meeting contin- Open market operations during the intermeeting ued to suggest that the economic expansion would period were directed toward implementing the moderate gradually from its currently elevated pace desired increased pressure on reserve positions, and to a rate around or perhaps a little below the growth the federal funds rate averaged very close to the of the economy's estimated potential. The expansion Committee's 6V2 percent target. The Committee's of domestic final demand increasingly would be held action and its announcement surprised markets only a back by the anticipated waning of positive wealth little, and bond and stock prices edged a bit lower. effects associated with earlier large gains in equity Markets grew increasingly uneasy over the next few prices and by higher interest rates; as a result, growth weeks as incoming data suggested the possible need of spending on consumer durables and houses was for further substantial policy tightening, which could expected to slow further. By contrast, business fixed have adverse effects on corporate earnings. These investment, notably purchases of equipment and softconcerns apparently contributed to sharp further ware, was projected to remain robust, and continued declines in equity prices and to widening risk spreads solid economic growth abroad would boost the on corporate bonds. Subsequently, debt and equity growth of U.S. exports for some period ahead. Core markets rebounded in response to a series of U.S. price inflation was projected to rise noticeably over economic data releases that were viewed as signaling the forecast horizon, partly as a result of higher Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 691 import prices and some firming of gains in nominal forecasts had central tendencies of about 4 percent in labor compensation in persistently tight labor mar- the fourth quarter of 2000 and 4 to 4'/4 percent in the kets that would not be fully offset by productivity fourth quarter of 2001. Forecasts of the rate of inflagrowth. tion were shaped importantly by the projected pattern In the Committee's discussion of current and pro- of energy prices; for this year the forecasts, as measpective economic developments, members cited sured by the chain-type price index for personal evidence of slower expansion in economic activity in consumption expenditures, were centered on a range recent months. In particular, consumer spending had of 2V2 to 23/ percent before dropping back to a range 4 decelerated noticeably, especially for housing and of 2 to 2V2 percent in 2001. motor vehicles, but the members agreed that the In their assessment of business conditions in differeventual extent and duration of the slowing in overall ent parts of the country, the presidents of the Federal economic growth were subject to substantial uncer- Reserve Banks commented on indications of some tainty. A number of factors supported a projection slowing in the expansion of regional economic activof considerably more moderate expansion going for- ity in a majority of the districts, though several ward in relation to the overly rapid pace in the second emphasized that the available information pointed to half of 1999 and early 2000, including the likelihood only slight moderation to date. This slowing and the that much of the effect on spending of the rise in cumulative effects of the firming in financial condiinterest rates and leveling out in equity prices this tions this year had been accompanied by an increasyear had not yet been felt. Nevertheless, the indica- ing number of anecdotal reports of more cautious tions of slowing economic expansion were still tenta- business sentiment. tive. Some sectors of the economy, such as business In their comments on developments in key sectors fixed investment, continued to display substantial of the economy nationwide, the members reported on vigor, and the members could not be confident that statistical and anecdotal indications that growth in growth would not rebound to a clearly unsustainable consumer spending had slowed appreciably in recent pace, as had occurred previously in this expansion. months from the unusually robust pace seen in late With regard to inflation, members observed that steep 1999 and early this year. A number of factors that increases in energy prices had boosted overall rates might account for the moderation could also point to of inflation somewhat, and in addition the higher the possible extension of the less robust trend. Those energy prices likely had contributed indirectly to the factors included gradually waning wealth effects rise in core measures of inflation. A number of mem- associated with the absence of further large gains in bers also were concerned that rising core inflation stock market prices; rising levels of consumer debt; could be generated increasingly from unsustainably the loss of consumer purchasing power stemming tight labor markets, and they noted that labor costs from higher energy prices; and the large cumulative would need to be monitored closely even if growth in buildup of consumer stocks of motor vehicles and demand slowed sufficiently to keep levels of resource other durables. Still, the data on retail sales were utilization about unchanged. To date, however, rising volatile and often revised significantly; some of the productivity growth had contained labor cost pres- recent moderation in spending might have reflected sures, and despite the moderation in the expansion of a pause following the surge in demand during atypiactivity, there were no early signs of any slowing in cally favorable weather conditions over the winter the growth of productivity. months; and the pace of purchases could pick up In preparation for a report to Congress, the mem- again. While the course of consumer spending bers of the Board of Governors and the presidents of remained uncertain, members concluded that, in the the Federal Reserve Banks provided individual pro- context of relatively high levels of consumer conjections of the growth of nominal and real GDP, the fidence and sizable projected gains in jobs and rate of unemployment, and the rate of inflation for the incomes, slower but still solid expansion in consumer years 2000 and 2001. With regard to the growth of expenditures was most likely to occur over coming nominal GDP, most of the forecasts were in ranges of quarters. 6'/4 to 63/ percent for 2000 as a whole and 5'/2 to The housing market also provided clear evidence 4 6 percent for 2001. The forecasts of the rate of of weakening demand. The slowdown evidently expansion in real GDP had a central tendency of 4 to reflected the effects of higher mortgage interest rates 4Vi percent for 2000, suggesting a noticeable decele- on a growing number of homebuyers and probably ration in the second half of the year, and were cen- also the diminishing wealth effects of the earlier tered on a range of 3'/4 to 33/4 percent for 2001. The run-up in stock prices and the cumulatively large civilian rates of unemployment associated with these additions to the stock of housing in the economy. The Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

692 Federal Reserve Bulletin • October 2000 sluggish tone of the housing data was confirmed by concerned that these prices might well continue to anecdotal reports of slowing residential sales and accelerate gradually, even assuming that economic building activity in most parts of the country. Despite expansion would be sustained at a pace close to the these developments, sizable building backlogs in economy's potential. In this view, labor markets were many areas, the outlook for continuing growth in already operating at levels of utilization that were consumer incomes, and still favorable consumer sen- likely eventually to produce rising labor costs that timent were likely to support substantial homebuild- would be passed through to market prices even if ing activity, albeit at a reduced level. At least in some productivity growth remained high or rose somewhat parts of the country, firms supplying building materi- further. Other members were more optimistic that als and home furnishings were beginning to feel the core inflation might be contained near current levels. retarding effects of the slowdown in the housing The recent increase in core inflation could largely market. reflect the indirect effects of the rise in energy prices. After a surge early in the year that evidently To date, unit labor costs had been quite subdued, reflected in part investment spending delayed by Y2K leaving open the question of what was a sustainable concerns, growth in business fixed investment had level of labor resource use. Rising productivity was moderated in recent months but was expected to likely to continue to restrain unit labor costs to a remain quite robust over the next several quarters. degree, and product markets remained highly com- New orders for many types of business equipment petitive. However, even these members saw considerhad remained strong, order backlogs had continued to able inflation risks should the slowdown in aggregate build, and it was clear that business executives still demand fail to be sustained, and the members generanticipated high rates of return on their new invest- ally agreed that for the foreseeable future possible ments. As a result, business investment spending increases in underlying inflation remained the princould be expected to remain elevated, at least over cipal risk to the continued good performance of the the nearer term and especially for high-tech equip- U.S. economy. ment and software. At the same time, members cited In contrast to its earlier practice, the Committee at anecdotal indications of the emergence of a more this meeting did not establish ranges for growth of cautious tone in the business community, evidently money and debt in 2000 and 2001. The legal requireassociated in part with less favorable financial condi- ment to set and announce such ranges recently had tions in debt and equity markets and possibly augur- expired, and the members did not view the ranges as ing more substantial cutbacks in business investment currently serving a useful role in the formulation of over time should growth in personal consumption monetary policy. Owing to uncertainties about the outlays be sustained on a considerably slower trend. behavior of the velocities of money and debt, these Strengthening economic activity in many of the ranges had not provided reliable benchmarks for the nations that are important U.S. trading partners was conduct of monetary policy for some years. Neverreflected in expanding exports, and several members theless, the Committee believed that the behavior of provided anecdotal confirmation of growing foreign these aggregates retained value for gauging economic markets for many U.S. goods and services. While and financial conditions and that such behavior expanding export markets were a welcome develop- should continue to be monitored. Moreover, Commitment from the perspective of many domestic busi- tee members emphasized that they would continue nesses, they would add to overall demand pressures to consider periodically issues related to their on U.S. producer resources at a time when the latter long-run strategy for monetary policy, even if they were already operating at very high levels. were no longer setting ranges for the money and debt With regard to the outlook for inflation, members aggregates. gave considerable attention to the somewhat faster In the Committee's discussion of policy for the increases in broad price measures over the past year, intermeeting period ahead, all the members supported but they differed to some extent regarding the pros- a proposal to maintain an unchanged policy stance pects for further increases in inflation. It was gener- consistent with a federal funds rate averaging about ally agreed that developments relating to energy 6V2 percent. The increasing though still tentative would continue to exert upward pressure on prices indications of some slowing in aggregate demand, over the near term, including the pass-through or together with the likelihood that the earlier policy indirect effects of higher oil prices on core measures tightening actions had not yet exerted their full retardof inflation. Looking beyond the near term, a number ing effects on spending, were key factors in this of members, noting that core measures of consumer decision. The uncertainties surrounding the outlook prices had been rising more rapidly this year, were for the economy, notably the extent and duration of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 693 the recent moderation in spending and the effects of promote sustainable growth in output. To further its longthe appreciable tightening over the past year, includ- run objectives, the Committee in the immediate future seeks conditions in reserve markets consistent with maining the V2 percentage point increase in the intended taining the federal funds rate at an average of around federal funds rate at the May meeting, reinforced the 6V2 percent. argument for leaving the stance of policy unchanged at this meeting and weighing incoming data care- The vote also encompassed approval of the senfully. Several members commented that a consider- tence below for inclusion in the press statement to be able amount of new information bearing on the pro- released shortly after the meeting: spective strength of the economy and the outlook for inflation would become available during the Against the background of its long-run goals of price relatively long interval before the next meeting in stability and sustainable economic growth and of the information currently available, the Committee believes that the August. Members generally saw little risk in deferrisks are weighted mainly toward conditions that may ring any further policy tightening move, particularly generate heightened inflation pressures in the foreseeable since the possibility that underlying inflation would future. worsen appreciably seemed remote under prevailing circumstances. Among other factors, inflation expec- Votes for this action: Messrs. Greenspan, McDonough, Broaddus, Ferguson, Gramlich, Guynn, Jordan, Kelley, tations had been remarkably stable despite rising Meyer, and Parry. Votes against this action: None. energy prices, and real interest rates were already relatively elevated. It was agreed that the next meeting of the Commit- In their discussion of the balance-of-risks sentence tee would be held on Tuesday, August 22, 2000. in the press statement to be issued shortly after this The meeting adjourned at 10:35 a.m. meeting, all the members agreed that the latter should continue to express, as it had for every meeting earlier this year, their belief that the risks remained NOTATION VOTE weighted toward rising inflation. Indications that growth in aggregate demand was moderating to a By notation vote completed on July 18, 2000, the pace closer to that of potential supply were still Committee authorized Vice Chairman McDonough partial and tentative, and labor markets remained to accept the Legion of Honor to be awarded by the unusually tight. Many Committee members noted French government pursuant to a decision by the that, based on the currently available information, President of the French Republic. additional firming of policy could well be needed at some point in the future, though a number also Votes for this action: Messrs. Greenspan, Broaddus, expressed the opinion that less tightening probably Ferguson, Gramlich, Guynn, Jordan, Kelley, Meyer, and would be required than they had thought at the time Parry. Votes against this action: None. Abstention: Mr. McDonough. of the May meeting. Several emphasized that the press release should not convey the impression that In conformance with regulations of the Board of the Committee now viewed further policy tightening Governors of the Federal Reserve System pertaining moves as an unlikely prospect. to foreign decorations, the Board's Vice Chairman, At the conclusion of this discussion, the Commit- Mr. Ferguson, authorized Chairman Greenspan to tee voted to authorize and direct the Federal Reserve accept the same award from the French government. Bank of New York, until it was instructed otherwise, to execute transactions in the System Account Donald L. Kohn in accordance with the following domestic policy Secretary directive: The Federal Open Market Committee seeks monetary and financial conditions that will foster price stability and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

695 Legal Developments ORDERS ISSUED UNDER BANK HOLDING ACT in the bank's home country."2 The Board has made the following findings with regard to the supervision of ANZ. Orders Issued Under Section 3 of the Bank Holding The home country supervisor of ANZ is the Australian Company Act Prudential Regulation Authority ("APRA").3 The Board previously determined, in an application filed under sec- Australia & New Zealand Banking Group Limited tion 3 of the BHC Act, that another Australian bank was Melbourne, Australia subject to home country supervision on a consolidated basis.4 The Board finds that ANZ is supervised in substan- Order Approving the Acquisition of a Bank tially the same manner as the other Australian bank. Based on this finding and all the facts of record, the Board concludes Australia & New Zealand Banking Group Limited, a for- that ANZ is subject to comprehensive supervision on a eign banking organization subject to the Bank Holding consolidated basis by its home country supervisor. Company Act ("BHC Act"), has requested the Board's The BHC Act also requires the Board to determine that approval under section 3 of the BHC Act (12 U.S.C. ANZ has provided adequate assurances that it will make § 1842) to acquire all voting shares of Amerika Samoa available to the Board such information on its operations Bank, Pago Pago, American Samoa ("Amerika Samoa"). and activities and those of its affiliates that the Board Notice of the proposal, affording interested persons an deems appropriate to determine and enforce compliance opportunity to submit comments, has been published with the BHC Act.5 The Board has reviewed the restric- (65 Federal Register 34,182 (2000)). The time for filing tions on disclosure in jurisdiction where ANZ has material comments has expired, and the Board has considered the operations and has communicated with relevant governproposal in light of the factors set forth in section 3 of the ment authorities concerning access to information. ANZ BHC Act. has committed that it will make available to the Board such ANZ has total consolidated assets of approximately information on its operations and the operations of any of $88 billion and is the second largest banking organization its affiliates that the Board deems necessary to determine in Australia.1 ANZ operates a branch in New York, New and enforce compliance with the BHC Act, the Interna- York, and engages in limited nonbanking activities in the tional Banking Act (12 U.S.C. 3101 et seq.), and other United States. applicable federal law. ANZ also has committed to cooperate with the Board to obtain any waivers or exemptions Amerika Samoa is the second largest banking operation that may be necessary in order to enable ANZ to make any in American Samoa, controlling deposits of $44 million, such information available to the Board. In light of these representing 44 percent of all deposits in commercial bankcommitments and other facts of record, the Board coning organizations in American Samoa. ANZ does not have cludes that ANZ has provided adequate assurances of banking operations in the banking market in which access to any appropriate information the Board may Amerika Samoa operates. Based on this and the other facts request. of record, the Board concludes that consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market, and that competitive con- 2. 12 U.S.C. § 1842(c)(3)(B). As provided in Regulation Y, the siderations are consistent with approval. Board determines whether a foreign bank is subject to consolidated home country supervision under the standards set forth in Regulation K. See 12 C.F.R. 225.13(a)(4). Regulation K provides that a Certain Supervisory Considerations foreign bank may be considered subject to consolidated supervision if the Board determines that the bank is supervised or regulated in such a Under section 3 of the BHC Act, the Board may not manner that its home country supervisor receives sufficient informaapprove an application involving a foreign bank unless the tion on the worldwide operations of the foreign bank, including the relationships of the bank to its affiliates, to assess the foreign bank's bank is "subject to comprehensive supervision or regulaoverall financial condition and compliance with law and regulation. tion on a consolidated basis by the appropriate authorities See 12 C.F.R. 211.24(c)(l)(ii). 3. In July 1998, the APRA assumed the bank supervisory functions formerly exercised by the Reserve Bank of Australia. This transfer of supervisory responsibilities has not resulted in any material changes in the scope or nature of the supervision of Australian banks. 4. See National Australia Bank Ltd., 81 Federal Reserve Bulletin 1. Asset data are as of December 31, 1999, and use exchange rates 1153 (1995). then in effect, and deposit data are as of June 30, 1999. 5. See 12 U.S.C. § 1842(c)(3)(A). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

696 Federal Reserve Bulletin • October 2000 Other Factors Under the BHC Act The acquisition of Amerika Samoa shall not be consummated before the fifteenth calendar day following the effec- The Board also has carefully considered the financial and tive date of this order, and the proposal shall not be managerial resources and future prospects of the banks and consummated later than three months after the effective companies involved in this proposal, the convenience and date of this order, unless such period is extended for good needs of the communities to be served, and other supervi- cause by the Board or the Federal Reserve Bank of New sory factors applicable under the BHC Act.6 ANZ's capital York, acting pursuant to delegated authority. levels exceed the levels required under Australian capital By order of the Board of Governors effective guidelines. August 7, 2000. The capital levels of ANZ also exceed the capital levels under the Basle Capital Accord and are considered equiva- Voting for this action: Chairman Greenspan, Vice Chaiman Fergulent to the capital levels that would be required of a U.S. son, and Governors Kelley, Meyer, and Gramlich. banking organization under similar circumstances. The Board has reviewed supervisory information from ROBERT DEV. FRIERSON Associate Secretary of the Board the home country authorities responsible for supervising ANZ, confidential financial information from ANZ, and First Bancorp reports of examination from the appropriate federal and Troy, North Carolina state supervisors of the organizations involved in the proposal assessing the financial and managerial resources of Order Approving the Acquisition of a Bank Holding the organizations. Based on all the facts of record, the Company Board has concluded that the financial and managerial resources and future prospects of the organizations in- First Bancorp, a bank holding company within the meaning volved in the proposal are consistent with approval, as are of the Bank Holding Company Act ("BHC Act"), has other supervisory factors that the Board must consider requested the Board's approval under section 3 of the BHC under section 3 of the BHC Act. Considerations related to Act (12 U.S.C.§ 1842) to acquire First Savings Bancorp, the convenience and needs of the communities to be Inc. ("First Savings") and its wholly owned subsidiary served, including the performance record of Amerika bank, First Savings Bank of Moore County, Inc., SSB Samoa under the Community Reinvestment Act (12 U.S.C. ("Bank"), both of Southern Pines, North Carolina.1 § 2901 et seq.) ("CRA"), also are consistent with approval of the proposal.7 Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (65 Federal Register 21,198 (2000)). The time for filing Conclusion comments has expired, and the Board has considered the proposal and all comments received in light of the factors Based on the foregoing and all the facts of record, the set forth in section 3 of the BHC Act. Board has determined that the application should be, and First Bancorp, with total consolidated assets of approxihereby is, approved. The Board's approval is specifically mately $624 million, is the 15th largest depository insticonditioned on ANZ's compliance with all the committution in North Carolina, controlling approximately ments made in connection with this application. The ap- $452 million in deposits, representing less than 1 percent proval is also specifically conditioned on the Board's reof total deposits in depository institutions in the state ceiving access to information on the operations or activities ("state deposits").2 First Savings, with total consolidated of ANZ and any of its affiliates that the Board determines assets of approximately $330 million, is the 26th largest to be appropriate to determine and enforce compliance by depository institution in North Carolina, controlling depos- ANZ and its affiliates with applicable federal statutes. The its of approximately $232 million, representing less than commitments and conditions imposed in writing by the 1 percent of state deposits. On consummation of the pro- Board in connection with its findings and decision and, as posal and taking into account the proposed divestiture such, may be enforced in proceedings under applicable discussed in this order, First Bancorp would become the law. tenth largest depository institution in North Carolina, controlling deposits of approximately $668 million, representing less than 1 percent of state deposits. 6. The Board received one comment from an individual who objected to the manner in which Amerika Samoa selects outside real estate appraisers in American Samoa. An institution's selection of its outside contractors generally is beyond the scope of factors that the 1. First Bancorp also has requested approval to exercise an option to Board is permitted to consider under section 3 of the BHC Act, and acquire up to 19.9 percent of First Savings's voting shares on the the record does not indicate that Amerika Samoa's selection criteria occurrence of certain events. The option would expire on consummahas had an adverse effect on the bank. The Board has forwarded the tion of this proposal. In addition, First Bancorp intends to merge Bank comment to the Federal Deposit Insurance Corporation ("FDIC") and with and into First Bancorp's existing subsidiary bank after consumthe Department of Legal Affairs of the Territory of American Samoa, mation of the holding company merger. the appropriate federal and state supervisors of Amerika Samoa. 2. Asset data are as of June 30, 2000, and deposit and ranking data 7. Amerika Samoa was rated "outstanding" in its most recent CRA are as of June 30, 1999. In this context, depository institutions include performance evaluation conducted by the FDIC, as of June 8, 1998. commercial banks, savings banks, and savings associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 697 Competitive Considerations corp has suggested that the relevant geographic market includes not only Moore County, but also all the counties Section 3 of the BHC Act prohibits the Board from approv- that are contiguous to Moore County. ing an application to acquire a bank holding company if the In defining the relevant geographic market, the Board proposal would result in a monopoly or would be in consistently has sought to identify the area in which the furtherance of any attempt to monopolize the business of cluster of banking products and services is provided by banking. Section 3 of the BHC Act also prohibits the Board competing institutions and in which purchasers of the from approving a proposed combination that substantially products and services seek to obtain these products and would lessen competition or tend to create a monopoly in services.6 In applying these standards to bank acquisition any relevant banking market, unless the Board finds that proposals, the Board and the courts repeatedly have held the anticompetitive effects of the proposal clearly are out- that the geographic market for the cluster of banking weighed in the public interest by the probable effects of the products and services is local in nature.7 In delineating the proposal in meeting the convenience and needs of the relevant geographic market in which to assess the competicommunity to be served.3 tive effects of a bank merger or acquisition, the Board First Bancorp and First Savings compete directly in the reviews population density; worker commuting patterns; Moore County banking market, which the Federal Reserve the usage and availability of banking products; advertising Bank of Richmond (the "Reserve Bank") has defined as patterns of financial institutions; the presence of shopping, Moore County, North Carolina. The Board has carefully employment, healthcare, and other necessities; and other reviewed the competitive effects of the proposal in the indicia of economic integration and transmission of comrelevant banking market in light of all the facts of record, petitive forces among banks.8 including the attractiveness of the market for entry, the Commuting data for 1990 from the U.S. Bureau of the number of competitors that would remain in the market on Census indicated that only one contiguous county, Hoke consummation of the proposal, the concentration levels of County, had a significant number of its workforce commutmarket deposits and the increase in these levels as mea- ing to Moore County. However, an equal number of Hoke sured by the Herfindahl-Hirschman Index ("HHI") under County residents commuted to Cumberland County, which the Department of Justice Merger Guidelines ("DOJ includes the city of Fayetteville. All the bank offices in Guidelines"), and other characteristics of the market.4 Hoke County are located in a town included in the Fayet- In order to determine the effect of a particular transaction teville Ranally Metropolitan Area ("RMA"). These data on competition, it is necessary to designate the area of suggest that the banking activity in Hoke County is aligned effective competition between the parties, which the courts more closely with Cumberland County and the Fayetteville have held is decided by reference to the relevant "line of RMA than with Moore County. In addition to reviewing commerce," or product market, and geographic market. carefully commuting patterns, the Board has considered The Board and the courts consistently have recognized that other data, including information obtained from local ecothe appropriate product market for analyzing the competi- nomic officials in the Moore County area, and has contive effects of mergers and acquisitions is the cluster of cluded that the facts of record do not support expanding the products (various kinds of credit) and services (such as Moore County banking market. checking accounts and trust administration) offered by Based on the Reserve Bank's analysis of the appropriate banking institutions, and First Bancorp has not challenged market definition and all the facts of record, including that definition of the product market.5 However, First Ban- commuting patterns and other commercial patterns throughout Moore County and the contiguous counties, the Board concludes that the appropriate geographic market 3. 12 U.S.C. § 1842(c). for considering the competitive effects of the proposal is 4. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), a Moore County. market in which the post-merger HHI is more than 1800 is considered First Bancorp's subsidiary bank is the third largest dehighly concentrated. The Department of Justice has informed the Board that a bank merger or acquisition generally will not be chal- pository institution in the Moore County banking market lenged (in the absence of other factors indicating anticompetitive and controls deposits of $104.5 million, representing effects) unless the post-merger HHI is at least 1800 and the merger 11.3 percent of total deposits in depository institutions in increases the HHI by more than 200 points. The Department of Justice has stated that the higher than normal thresholds for screening bank mergers for anticompetitive effects implicitly recognize the competitive effects of limited-purpose lenders and other nondepository finan- 6. See, e.g., First Security; Sunwest Financial Services, Inc., cial institutions. 73 Federal Reserve Bulletin 463 (1987); Pikeville National Corpora- 5. See First Security Corporation, 86 Federal Reserve Bulletin 122 tion, 71 Federal Reserve Bulletin 240 (1985); Wyoming Bancorpora- (2000) ("First Security"); see also Chemical Banking Corporation, tion, 68 Federal Reserve Bulletin 313 (1982); aff'd 729 F.2d 687 (10th 82 Federal Reserve Bulletin 239 (1996) ("Chemical"), and the cases Cir., 1984). and studies cited therein. The Supreme Court has emphasized that it is 7. See Philadelphia National, 374 U.S. at 357; Phillipsburg the cluster of products and services that, as a matter of trade reality, National; First Security; First Union Corporation, 84 Federal Remakes banking a distinct line of commerce. See United States v. serve Bulletin 489 (1998); Chemical; St. Joseph Valley Bank, Philadelphia National Bank, 374 U.S. 321, 357 (1963) ("Philadelphia 68 Federal Reserve Bulletin 673 (1982). National"); accord United States v. Connecticut National Bank, 8. See Chemical; Crestar Bank, 81 Federal Reserve Bulletin 200, 418 U.S. 656 (1974); United States v. Phillipsburg National Bank, 201 n.5 (1995); Pennbancorp, 69 Federal Reserve Bulletin 548 399 U.S. 350 (1969) ("Phillipsburg National"). (1983). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

698 Federal Reserve Bulletin • October 2000 the market ("market deposits").9 The First Savings subsid- The Board believes that the foregoing considerations, iary bank is the second largest depository institution in the including the number of competitors that would remain in banking market and controls deposits of $115.9 million, the Moore County banking market after consummation of representing 12.5 percent of market deposits. To reduce the the proposal and the structure and attractiveness of that potential for adverse effects on competition, First Bancorp market, mitigate the potential anticompetitive effects of the has committed to divest one branch that controls approxi- transaction in this case. mately $15.6 million in deposits to an out-of-market firm.10 The Department of Justice has conducted a detailed After the proposed merger and divestiture, First Bancorp review of the proposal and advised the Board that consumwould become the second largest competitor in the market, mation of the proposal likely would not have a significontrolling 30.8 percent of market deposits, and the HHI cantly adverse effect on competition in any relevant bankwould increase 349 points to 2146. ing market. The Office of the Comptroller of the Currency Numerous factors suggest that the increase in concentra- and the Federal Deposit Insurance Corporation also have tion as measured by the HHI does not indicate a signifi- been afforded an opportunity to comment and have not cantly adverse effect on competition in the Moore County objected to consummation of the proposal. banking market in this case after the proposed divestiture. After carefully reviewing all the facts of record, and for Because the proposed divestiture would be to an out-of- the reasons discussed in this order, the Board concludes market banking organization, a new competitor would en- that consummation of the proposal would not be likely to ter the banking market as a result of the proposal. The total result in a significantly adverse effect on competition or on number of competitors in the banking market would re- the concentration of banking resources in the Moore main unchanged at twelve, including four large multistate County banking market or in any other relevant banking banking organizations, one of which would be the largest market. Accordingly, based on all the facts of record and depository institution in the market, controlling 31.5 per- subject to completion of the proposed divestiture and comcent of market deposits. pliance with related commitments, the Board has deter- In addition to the structural factors discussed above, the mined that competitive effects are consistent with approval Moore County banking market has characteristics that indi- of the proposed transaction. cate it is attractive for entry. Two depository institutions have entered the banking market de novo since June 1997, Other Considerations including one entrant earlier this year. The banking market is a relatively large rural county with deposits of approxi- Section 3 of the BHC Act requires the Board, in acting on mately $1 billion, ranking third among the 65 rural coun- an application, to consider the financial and managerial ties in North Carolina in total deposits.11 In the last three resources and future prospects of the companies and banks years the population of Moore County has increased involved and certain supervisory factors. The Board has 2.1 percent, which is almost twice the average rate of reviewed these factors in light of the record, including population increase in rural counties in North Carolina. supervisory reports of examination assessing the financial Moreover, the per capita income level in Moore County and managerial resources of the organizations and financial exceeds the average for rural counties in the state. information provided by First Bancorp. Based on all the facts of record, the Board concludes that the financial and managerial resources and future prospects of First Bancorp, First Savings, and their respective subsidiary banks are consistent with approval, as are the other supervisory 9. Market share data are as of June 30, 1999, and have been adjusted to reflect acquisitions consummated since that time. Market share data factors the Board must consider under section 3 of the are based on calculations in which the deposits of thrift institutions, BHC Act. including Bank and other savings banks, are included at 50 percent. Section 3 of the BHC Act also requires the Board to The Board previously has indicated that thrift institutions have beconsider the convenience and needs of the communities to come, or have the potential to become, significant competitors of be served. The Board has reviewed information presented commercial banks. See Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve by First Bancorp related to the convenience and needs Bulletin 743 (1984). Because the deposits of the First Savings Bank of factor and the records of performance of the relevant Moore County, Inc., would be acquired by a commercial banking depository institutions under the Community Reinvestment organization, those deposits are included at 100 percent in the calcula- Act (12 U.S.C. § 2901 et seq.) ("CRA"). Based on all the tion of pro forma market share. See Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal Reserve facts of record, the Board concludes that considerations Bulletin 669 (1990). relating to the convenience and needs of the communities 10. First Bancorp has committed to execute, before consummating to be served, including the CRA performance records of the acquisition of First Savings, a sales agreement for the proposed the depository institutions of First Bancorp and First Savdivestiture with an out-of-market purchaser. First Bancorp also has ings, are consistent with approval. committed that if it is unsuccessful in completing the proposed divestiture within 180 days of acquiring First Savings, it will transfer the unsold branch to an independent trustee to sell the branch promptly to Conclusion an alternative purchaser determined by the Board to be competitively suitable. Based on the foregoing, and in light of all the facts of 11. In this context, "rural county" means a county that is not included in a metropolitan statistical area. record, the Board has determined that the application Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 699 should be, and hereby is, approved. Approval of the appli- Competitive Considerations cation is conditioned specifically on compliance by First Bancorp with all the commitments made in connection Section 3 of the BHC Act prohibits the Board from approvwith the proposal, including First Bancorp's divestiture ing a proposal that would result in a monopoly in any commitments, and with the conditions stated or referred to relevant banking market. That section also prohibits the in this order. For the purpose of this action, the commit- Board from approving a proposal that may substantially ments and conditions relied on by the Board in reaching its lesson competition in any relevant banking market, unless decision are deemed to be conditions imposed in writing the anticompetitive effects of the proposal are clearly outby the Board in connection with its findings and decision weighed in the public interest by the probable effect of the and, as such, may be enforced in proceedings under appli- proposal in meeting the convenience and needs of the cable law. community to be served.2 The acquisition of First Savings shall not be consum- Westamerica and Bank compete directly in two Califormated before the fifteenth calendar day following the effec- nia banking markets, the Napa banking market and the tive date of this order, or later than three months after the Lake County banking market.3 Consummation of the proeffective date of this order, unless such period is extended posal would be consistent with the Department of Justice for good cause by the Reserve Bank acting pursuant to Merger Guidelines ("DOJ Guidelines")4 and Board precedelegated authority. dent in the Napa banking market. On consummation of the By order of the Board of Governors, effective proposal, Westamerica would remain the second largest August 21, 2000. banking organization in the Napa banking market and control $220 million in deposits, representing 15.4 percent Voting for this action: Chairman Greenspan, Vice Chairman Fergu- of total deposits in depository institutions in the market son, and Governors Kelley, Meyer, and Gramlich. ("market deposits"). The HHI would increase 19 points to 1154.5 ROBERT DEV. FRIERSON In the Lake County banking market, consummation of Associate Secretary of the Board the proposal would increase the level of market concentration, as measured by the HHI, to levels that exceed the Westamerica Bancorporation DOJ Guidelines. Westamerica is the largest of 10 banking San Rafael, California organizations in the Lake County banking market and controls deposits of $79.3 million, representing approxi- Order Approving the Acquisition of a Bank mately 17.4 percent of market deposits. Bank is the third largest banking organization in the market and controls Westamerica Bancorporation ("Westamerica"), a bank deposits of $67.5 million, representing approximately 14.8 holding company within the meaning of the Bank Holding percent of market deposits. On consummation of the pro- Company Act ("BHC Act"), has requested the Board's posal Westamerica would control deposits of $146.9 milapproval under section 3 of the BHC Act (12 U.S.C.§ 1842) lion, representing approximately 32.2 percent of market to acquire all the common stock of First Counties Bank, deposits, and the HHI would increase 516 points to 1808. Clearlake, California ("Bank"). Notice of the proposal, affording interested persons an opportunity to submit comments, has been published (65 Federal Register 30,410 (2000)). The time for filing 2. 12 U.S.C. § 1842(c)(1). 3. The Napa banking market is defined as the Napa Ranally Metrocomments has expired, and the Board has considered the politan Area and the towns of St. Helena and Calistoga, and the Lake proposal and all comments received in light of the factors County banking market is defined as Lake County. set forth in section 3 of the BHC Act. 4. Under the revised Department of Justice Merger Guidelines, Westamerica, with total consolidated assets of $3.9 bil- 49 Federal Register 26,823 (June 29, 1984), a market in which the lion, is the 17th largest commercial banking organization post-merger Herfindahl-Hirschman Index ("HHI") is above 1800 points is considered to be highly concentrated. The Department of in California, controlling deposits of $3.1 billion, repre- Justice has informed the Board that a bank merger or acquisition senting less than 1 percent of total deposits in depository generally will not be challenged (in the absence of other factors institutions in the state ("state deposits").1 Bank, with total indicating anticompetitive effects) unless the post-merger HHI is at consolidated assets of $90.7 million, is the 255th largest least 1800 and the merger increases the HHI by more than 200 points. The Department of Justice has stated that the higher than normal HHI banking organization in California, controlling deposits of thresholds for screening bank mergers for anticompetitive effects $80 million, representing less than 1 percent of state deposimplicitly recognize the competitive effects of limited-purpose lenders its. On consumation of the proposal, Westamerica would and other nondepository financial entities. remain the 17th largest banking organization in California, 5. Market share data are as of June 30, 1999, and are based on controlling deposits of $3.2 billion. calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously has indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National City Corporation, 70 Federal Reserve Bulletin 1. In this context, depository institutions include commercial banks, 743 (1984). Thus, the Board has regularly included thrift deposits in savings banks, and savings associations. Asset data are as of Decem- the calculation of market share on a 50-percent weighted basis. See, ber 31, 1999, and deposit and ranking data are as of June 30, 1999. e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

700 Federal Reserve Bulletin • October 2000 As the Board has indicated in previous cases, in a market communities to be served, including the records of perforin which the competitive effects of a proposal exceed the mance of the institutions involved under the Community DOJ Guidelines, the Board will consider whether other Reinvestment Act (12 U.S.C. § 2901 et seq.), are consistent factors tend to mitigate the competitive effects of the with approval of the proposal. proposal. The number and strength of factors necessary to mitigate the competitive effects of a proposal depend on Conclusion the level of market concentration and size of the increase in market concentration. Based on the foregoing, and in light of all the facts of In this case, several factors indicate that the likely effect record, the Board has determined that the application of the proposal on competition in the Lake County banking should be, and hereby is, approved. The Board's approval market would not be significantly adverse. Nine depository is specifically conditioned on compliance by Westamerica institutions, including Westamerica, would operate in the mar- with all the commitments made in connection with the ket after consummation of the proposal. Although West- proposal. For the purpose of this action, the commitments america would control approximately 32.2 percent of the and conditions relied on by the Board in reaching its market deposits, three other institutions, including one large decision are deemed to be conditions imposed in writing multistate banking organization that is the largest deposi- by the Board in connection with its findings and decision tory organization in California measured by deposits, and, as such, may be enforced in proceedings under appliwould each control over 12 percent of market deposits. In cable law. addition, three other depository institutions would each The acquisition of Bank shall not be consummated becontrol between 5 and 10 percent of market deposits. The fore the fifteenth calendar day following the effective date Lake County banking market also has characteristics that of this order, or later than three months after the effective indicate that it is attractive for entry. The number of date of this order, unless such period is extended for good employees living in the market increased 18 percent from cause by the Federal Reserve Bank of San Francisco, 1990 to 1999, a rate of increase substantially greater than acting pursuant to delegated authority. that for the rest of California, where the number of employ- By order of the Board of Governors, effective August 2, ees grew less than 10 percent over the same period. Wells 2000. Fargo & Company, the second largest depository organization in California measured by deposits, entered the market This action was taken pursuant to the Board's Rules Regarding de novo in 1995. Delegation of Authority (12 C.F.R. 265.4(b)(1)) by a committee of The Department of Justice has advised the Board that Board members. Voting for this action: Chairman Greenspan and Governors Kelley and Gramlich. Absent and not voting: Vice Chairconsummation of the proposal would not likely have any man Ferguson and Governor Meyer. significant adverse competitive effects in the Lake County banking market or any other relevant banking market. ROBERT DEV. FRIERSON After carefully reviewing all the facts of record, and for Associate Secretary of the Board the reasons discussed in this order, the Board concludes that consummation of the proposal is not likely to result in any significantly adverse effects on competition or on the concentration of banking resources in the Lake County ORDERS ISSUED UNDER INTERNATIONAL BANKING banking market or any other relevant market. On this basis, ACT the Board has determined that the competitive factors are consistent with approval of the proposal. Caixa Economica Montepio Geral Lisbon, Portugal Other Considerations Order Approving Establishment of a Representative The BHC Act requires the Board, in acting on an applica- Office tion, to consider the financial and managerial resources and future prospects of the companies and banks involved, the Caixa Economica Montepio Geral ("Bank"), Lisbon, Porconvenience and needs of the communities to be served, tugal, a foreign bank within the meaning of the Internaand certain supervisory factors. The Board has reviewed tional Banking Act ("IBA"), has applied under secthese factors in light of the record, including supervisory tion 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish a reports of examination assessing the financial and manage- representative office in Newark, New Jersey. The Foreign rial resources of the organizations and financial informa- Bank Supervision Enhancement Act of 1991, which tion provided by Westamerica. Based on all the facts of amended the IBA, provides that a foreign bank must obtain record, the Board concludes that the financial and manage- the approval of the Board to establish a representative rial resources and the future prospects of Westamerica, office in the United States. Bank, and Westamerica's subsidiary banks are consistent Notice of the application, affording interested persons an with approval, as are the other supervisory factors the opportunity to submit comments, has been published in a Board must consider under the BHC Act. In addition, newspaper of general circulation in Newark, New Jersey considerations related to the convenience and needs of the 0Newark Star-Ledger, May 31, 2000). The time for filing Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 701 comments has expired, and the Board has considered the consolidated basis.4 Bank is supervised by the Bank of application and all comments received. Portugal ("Central Bank") on substantially the same terms Bank, with total consolidated assets of approximately and conditions as the other banks, including with respect to $6.7 billion,1 is the sixth largest bank in Portugal.2 Bank transactions and relationships with affiliates. Based on all engages in a full range of banking activities, and offers a the facts of record, the Board has determined that Bank is wide variety of products and services, particularly in the subject to comprehensive supervision and regulation on a areas of mortgage and construction lending. Bank operates consolidated basis by its home country supervisor. an extensive branch network in Portugal. Bank also oper- The Board also has taken into account the additional ates branches in Madeira and the Cayman Islands, and standards set forth in section 7 of the IBA and Regulation representative offices in Canada and France. Bank cur- K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). rently does not conduct any operations in the United States. The Central Bank has no objection to the establishment of The proposed representative office would serve as a the proposed representative office. liaison between Bank and its customers, solicit new busi- With respect to the financial and managerial resources of ness, and establish good will and name recognition among Bank, taking into consideration Bank's record of operapotential customers. tions in its home country, its overall financial resources, In acting on an application to establish a representative and its standing with its home country supervisors, the office, the IBA and Regulation K provide that the Board Board has also determined that financial and managerial shall take into account whether the foreign bank engages factors are consistent with approval of the proposed repredirectly in the business of banking outside of the United sentative office. Bank appears to have the experience and States and has furnished to the Board the information it capacity to support the proposed representative office and needs to assess the application adequately. The Board also has established controls and procedures for the proposed shall take into account whether the foreign bank and any representative office to ensure compliance with U.S. law. foreign bank parent is subject to comprehensive supervi- With respect to access to information on Bank's operasion or regulation on a consolidated basis by its home country tions, the Board has reviewed the restrictions on disclosure supervisor (12 U.S.C. § 3107(a)(2); 12 C.F.R. 211.24(d)(2)).3 in relevant jurisdictions in which Bank operates and has In addition, the Board may take into account additional communicated with relevant government authorities restandards set forth in the IBA and Regulation K (12 U.S.C. garding access to information. Bank and its parent have § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)). committed to make available to the Board such informa- As noted above, Bank engages directly in the business of tion on the operations of Bank and any of their affiliates banking outside the United States. Bank also has provided that the Board deems necessary to determine and enforce the Board with information necessary to assess the applica- compliance with the IBA, the Bank Holding Company Act tion through submissions that address the relevant issues. of 1956, as amended, and other applicable federal law. To With respect to supervision by home country authorities, the extent that the provision of such information to the the Board previously has determined, in connection with Board may be prohibited by law or otherwise, Bank and its an application involving other Portuguese banks, that those parent have committed to cooperate with the Board to banks were subject to home country supervision on a obtain any necessary consents or waivers that might be required from third parties for disclosure of such information. In addition, subject to certain conditions, the Central Bank may share information on Bank's operations with other supervisors, including the Board. In light of these commitments and other facts of record, and subject to the 1. Unless otherwise indicated, data are as of March 31, 2000. condition described below, the Board concludes that Bank 2. Bank is wholly owned by Montepio Geral - Associacao Mutual- has provided adequate assurances of access to any necesista ("Montepio"), Lisbon, Portugal, a mutual benefit association with sary information that the Board may request. approximately 100,000 members. Montepio, directly and through Bank, owns interests in a bank in Cape Verde and a bank in Guinea- On the basis of all the facts of record, and subject to the Bissau. commitments made by Bank and its parent, and the terms 3. In assessing this standard, the Board considers, among other and conditions set forth in this order, the Board has deterfactors, the extent to which the home country supervisors: mined that Bank's application to establish the representa- (i) Ensure that the bank has adequate procedures for monitoring and tive office should be, and hereby is, approved. If any controlling its activities worldwide; (ii) Obtain information on the condition of the bank and its subsid- restrictions on access to information on the operations or iaries and offices through regular examination reports, audit reports, or activities of Bank or any of its affiliates subsequently otherwise; interfere with the Board's ability to obtain information to (iii) Obtain information on the dealings with and relationship bedetermine and enforce compliance by Bank or its affiliates tween the bank and its affiliates, both foreign and domestic; with applicable federal statutes, the Board may require (iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis; (v) Evaluate prudential standards, such as capital adequacy and risk 4. See Caixa Geral de Depdsitos S.A., 85 Federal Reserve Bulletin asset exposure, on a worldwide basis. These are indicia of comprehen- 774 (1999); Banco Espirito Santo, S.A., 86 Federal Reserve Bulletin sive, consolidated supervision. No single factor is essential, and other 418 (2000); Banco Comercial Portugues, S.A., 86 Federal Reserve elements may inform the Board's determination. Bulletin 613 (2000). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

702 Federal Reserve Bulletin • October 2000 termination of any of Bank's direct and indirect activities the merger to proceed before an application to establish the in the United States. Approval of this application also is office was filed and acted on by the Board.1 specifically conditioned on compliance by Bank and its In acting on an application to establish a representative parent with the commitments made in connection with this office, the IBA and Regulation K provide that the Board application and with the conditions in this order.5 The shall take into account whether the foreign bank engages commitments and conditions referred to above are condi- directly in the business of banking outside of the United tions imposed in writing by the Board in connection with States and has furnished to the Board the information it its decision and may be enforced in proceedings against needs to assess the application adequately. The Board also Bank and its affiliates under 12 U.S.C.§ 1818. shall take into account whether the foreign bank and any By order of the Board of Governors, effective foreign bank parent is subject to comprehensive supervi- August 21, 2000. sion or regulation on a consolidated basis by its home country supervisor (12 U.S.C. § 3107(a)(2); 12 C.F.R. Voting for this action: Chairman Greenspan, Vice Chairman Fergu- 211.24(d)(2)).2 In addition, the Board may take into son, and Governors Kelley, Meyer, and Gramlich. account additional standards set forth in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. ROBERT DEV. FRIERSON 211.24(c)(2)). Associate Secretary of the Board As noted above, Bank engages directly in the business of banking outside the United States. Bank also has provided The Chuo Mitsui Trust & Banking Co., Ltd. the Board with information necessary to assess the applica- Tokyo, Japan tion through submissions that address the relevant issues. With respect to supervision by home country authorities, Order Approving Establishment of a Representative the Board previously has determined, in connection with Office applications involving other banks in Japan, that those banks were subject to home country supervision on a The Chuo Mitsui Trust & Banking Co., Ltd. ("Bank"), consolidated basis.3 Bank is supervised by the Financial Tokyo, Japan, a foreign bank within the meaning of the Services Agency (the "FSA") on substantially the same International Banking Act ("IBA"), has applied under sec- terms and conditions as those other banks.4 Based on all tion 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish a representative office in New York, New York. The Foreign Bank Supervision Enhancement Act of 1991, which amended the IBA, provides that a foreign bank must obtain the approval of the Board to establish a representative 1. See 12 C.F.R. 211.24(a)(3), and Board Letter, dated March 29, 2000, to Peter Figdor, Esq. office in the United States. 2. In assessing this standard, the Board considers, among other Notice of the application, affording interested persons an factors, the extent to which the home country supervisors: opportunity to submit comments, has been published in a (i) Ensure that the bank has adequate procedures for monitoring newspaper of general circulation in New York, New York and controlling its activities worldwide; (ii) Obtain information on the condition of the bank and its (New York Post, April 14, 2000). The time for filing subsidiaries and offices through regular examination reports, audit comments has expired, and the Board has considered the reports, or otherwise; application and all comments received. (iii) Obtain information on the dealings with and relationship Bank, the sixth largest bank in Japan, was formed in between the bank and its affiliates, both foreign and domestic; April 2000 when The Chuo Trust & Banking Co., Ltd. (iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analymerged with The Mitsui Trust & Banking Co., Ltd. ("Mitsis of the bank's financial condition on a worldwide consolidated sui"), both of Tokyo, Japan. basis; Bank provides banking and trust services to individual (v) Evaluate prudential standards, such as capital adequacy and and corporate clients. Bank operates an extensive branch risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essennetwork in Japan, and representative offices in Singapore tial, and other elements may inform the Board's determination. and China. Before the merger, Mitsui operated a represen- 3. See Bank of Tokyo Ltd., 81 Federal Reserve Bulletin 279 (1995); tative in New York, New York. Bank has requested author- Mitsubishi Bank Ltd., 82 Federal Reserve Bulletin 436 (1996); Sumiity to retain and operate the representative office with this tomo Bank Ltd., 82 Federal Reserve Bulletin 365 (1996); Sumitomo application. Pursuant to Regulation K, the Board allowed Bank Ltd., 83 Federal Reserve Bulletin 54 (1997); Fuji Bank Ltd., 84 Federal Reserve Bulletin 674 (1998); Fuji Bank Ltd., 85 Federal Reserve Bulletin 338 (1999); Sanwa Bank, Ltd., 86 Federal Reserve Bulletin 54 (2000). 4. On July 1, 2000, the Financial System Planning Bureau, a bureau 5. The Board's authority to approve the establishment of the pro- of the Japanese Ministry of Finance, was merged into the Financial posed representative office parallels the continuing authority of the Supervisory Agency. The combined agency was renamed the Finan- State of New Jersey to license offices of a foreign bank. The Board's cial Services Agency ("FSA"). The merger combines the Ministry of approval of this application does not supplant the authority of the Finance's policy-making function with the former Financial Supervi- State of New Jersey and the New Jersey Department of Banking and sory Agency's supervisory and inspection functions. Other than the Insurance ("Department") to license the proposed office of Bank in addition of the policy-making function to the FSA, there have been no accordance with any terms or conditions that the Department may material changes in Japanese bank supervision since it was last impose. reviewed by the Board in November 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 703 the facts of record, the Board has determined that Bank is has provided adequate assurances of access to any necessubject to comprehensive supervision and regulation on a sary information that the Board may request. consolidated basis by its home country supervisor. On the basis of all the facts of record, and subject to the The Board also has taken into account the additional commitments made by Bank, and the terms and conditions standards set forth in section 7 of the IBA and Regula- set forth in this order, the Board has determined that tion K (see 12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. Bank's application to establish the representative office 211.24(c)(2)). The FSA has no objection to the establish- should be, and hereby is, approved. If any restrictions on ment of the proposed representative office. access to information on the operations or activities of With respect to the financial and managerial resources of Bank or any of its affiliates subsequently interfere with the Bank, taking into consideration Bank's record of opera- Board's ability to obtain information to determine and tions in its home country, its overall financial resources, enforce compliance by Bank or its affiliates with applicable and its standing with its home country supervisor, the federal statutes, the Board may require termination of any Board has also determined that financial and managerial of Bank's direct or indirect activities in the United States. factors are consistent with approval of the proposed repre- Approval of this application is also specifically conditioned sentative office. Bank appears to have the experience and on Bank's compliance with the commitments made in capacity to support the proposed representative office and connection with this application and with the conditions in has established controls and procedures for the proposed this order.5 The commitments and conditions referred to representative office to ensure compliance with U.S. law. above are conditions imposed in writing by the Board in With respect to access to information on Bank's opera- connection with its decision, and may be enforced in tions, the Board has reviewed the restrictions on disclosure proceedings against Bank and its affiliates under 12 U.S.C. in relevant jurisdictions in which Bank operates and has § 1818. communicated with relevant government authorities re- By order of the Board of Governors, effective garding access to information. Bank has committed to August 21, 2000. make available to the Board such information on the operations of Bank and any of its affiliates that the Board deems Voting for this action: Chairman Greenspan, Vice Chairman Fergunecessary to determine and enforce compliance with the son, and Governors Kelley, Meyer, and Gramlich. IBA, the Bank Holding Company Act of 1956, as amended, and other applicable federal law. To the extent that the ROBERT DEV. FRIERSON provision of such information to the Board may be prohib- Associate Secretary of the Board ited by law or otherwise, Bank has committed to cooperate with the Board to obtain any necessary consents or waivers 5. The Board's authority to approve the establishment of the prothat might be required from third parties for disclosure of posed representative office parallels the continuing authority of the such information. In addition, subject to certain conditions, State of New York to license offices of a foreign bank. The Board's the FSA may share information on Bank's operations with approval of this application does not supplant the authority of the State of New York and its agent, the New York State Banking other supervisors, including the Board. In light of these Department ("Department"), to license the proposed representative commitments and other facts of record, and subject to the office of Bank in accordance with any terms or conditions that the condition described below, the Board concludes that Bank Department may impose. INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (APRIL 1, 2000-JUNE 30, 2000) Date of Bulletin Volume and Applicant Merged or Acquired Bank or Activity Approval Page Banca Intesa S.p.A., To establish a state-licensed branch in April 5, 2000 86, 433 Milan, Italy New York, New York Banca Sella S.p.A., To establish a state-licensed agency in May 30, 2000 86, 503 Biella, Italy Miami, Florida Banco Comercial Portugues, S.A., BPABank, National Association, June 30, 2000 86, 592 Oporto, Portugal Newark, New Jersey Banco Portugues do Atlantico, S.A. Oporto, Portugal BCP-IF S.G.P.S., Lda, Lisbon, Portugal Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

704 Federal Reserve Bulletin • October 2000 Index of Orders Issued—Continued Date of Bulletin Volume and Applicant Merged or Acquired Bank or Activity Approval Page BPA Internacional, S.G.P.S. Sociedade Unipessoal Lda, Funchal, Madeira, Portugal Banco Portugues do Atlantico (USA), Inc., Newark, New Jersey Banco Comercial Portugues, S.A., To establish a representative office in June 30, 2000 86, 613 Oporto, Portugal Miami, Florida BB&T Corporation, One Valley Bancorp, Inc., May 30, 2000 86, 491 Winston-Salem, North Carolina Charleston, West Virginia Caisse Nationale de Credit Agricole, Espirito Santo Bank, April 5, 2000 86, 412 Paris, France Miami, Florida Canadian Imperial Bank of St. Anthony Bancorp, Inc., April 12, 2000 86, 424 Commerce, Cicero, Illinois Toronto, Canada St. Anthony Bank, A Federal Savings The CIBC World Markets Bank, Corporation, Cicero, Illinois Toronto, Canada CIBC World Markets Inc., Toronto, Canada CIBC Delaware Holdings Inc., New York, New York The Chase Mahattan Bank, Chase Bank of Texas, National June 14, 2000 86, 610 New York, New York Association, Compass Bancshares, Inc., Founders Bancorp, Inc., June 30, 2000 86, 595 Birmingham, Alabama Scottsdale, Arizona Compass Bank, Founders Bank of Arizona, Birmingham, Alabama Scottsdale, Arizona Dime Bancorp, Inc., Hudson United Bancorp, April 12, 2000 86, 413 New York, New York Mahwah, New Jersey Hudson United Bank, Mahwah, New Jersey E.S. Control Holding S.A., Espirito Santo Bank, April 5, 2000 86, 418 Luxembourg Miami, Florida E.S. International Holding S.A., Luxembourg Espirito Santo Financial Group S.A., Luxembourg Espirito Santo Financial (Portugal) Sociedade Gestora de Participates Sociais, S.A., Lisbon, Portugal Bespar-Sociedade Gestora de Participates Sociais, S.A., Lisbon, Portugal Banco Espirito Santo, S.A., Lisbon, Portugal National Commerce Bancorporation, CCB Financial Corporation, June 19, 2000 86, 597 Memphis, Tennessee Durham, North Carolina Central Carolina Bank and Trust Company, Durham, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 705 Index of Orders Issued—Continued Date of Bulletin Volume and Applicant Merged or Acquired Bank or Activity Approval Page Northern Star Financial Inc. First Federal Holding Company of June 19, 2000 86, 609 Mankato, Minnesota Morris, Inc., Morris, Minnesota First Federal Savings Bank, Morris, Minnesota Peoples Heritage Financial Group, Banknorth Group, Inc., April 24, 2000 86, 425 Inc., Burlington, Vermont Portland, Maine Popular, Inc., Banco Popular, National Association, June 5, 2000 86, 600 Hato Rey, Puerto Rico Orlando, Florida Popular Inernational Bank, Banco Popular, National Association, Hato Rey, Puerto Rico Orlando, Florida Popular North America, Inc., Mount Laurel, New Jersey The Charles Schwab Corporation, U.S. Trust Corporation, May 1, 2000 86, 494 San Francisco, California New York, New York United States Trust Company of New York, New York, New York SierraCities.com, Inc., Greenbelt Bancshares, Inc., April 12, 2000 86, 432 Houston, Texas Quanah, Texas FSF of Delaware, Inc., Security National Bank of Quanah, Wilmington, Delaware Quanah, Texas Valley View Bancshares, Inc. Bank of Lee's Summit, April 3, 2000 86, 420 Overland Park, Kansas Lee's Summit, Missouri Wells Fargo & Company, First Commerce Bancshares, Inc., May 30, 2000 86, 500 San Francisco, California Lincoln, Nebraska First Commerce Bancshares of Colorado, Inc., Colorado Springs, Colorado Wells Fargo & Company, National Bancorp of Alasks, June 21, 2000 86,602 San Francisco, California Anchorage, Alaska National Bank of Alaska, Anchorage, Alaska 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 Commerica Incorporated, NYCE Corporation, August 31, 2000 Detroit, Michigan Woodcliff Lake, New Jersey First Union Corporation, SafeCheck Company, LLC, Charlotte, North Carolina New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

706 Federal Reserve Bulletin • October 2000 Section A—Continued Applicant(s) Bank(s) Effective Date FleetBoston Financial Corporation, Boston, Massachusetts HSBC Holdings PLC, London, England HSBC Financing (Netherlands), London, England HSBC Holdings BV, Amsterdam, Netherlands HSBC North America, Inc., Buffalo, New York HSBC USA Inc., Buffalo, New York Summit Bancorp, Princeton, New Jersey The Bank of New York Company, Inc., New York, New York The Chase Manhattan Corporation, New York, New York The Royal Bank of Scotland Group pic, Edinburgh, Scotland The Royal Bank of Scotland pic, Edinburgh, Scotland RBSG International Holdings Ltd, Edinburgh, Scotland Citizens Financial Group, Inc., Providence, Rhode Island 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 Capitol Bancorp Ltd., Goshen Community Bank, Chicago August 14, 2000 Lansing, Michigan Goshen, Indiana Indiana Community Bancorp Limited, Elkhart, Indiana Cardinal Financial Corporation, Heritage Bancorp, Inc., Richmond August 2, 2000 Fairfax, Virginia McLean, Virginia The Heritage Bank, McLean, Virginia CBCT Bancshares, Inc., Community Bank of Central Dallas August 8, 2000 Baltimore, Maryland Texas, SSB, Smithville, Texas Citizens Bancshares, Inc., Citizens Bank-Wakula, Atlanta August 16, 2000 Crawfordville, Florida Crawfordville, Florida Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 707 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Commfirst Bancorporation, Inc. Robuck Inc., Kansas City August 3, 2000 South Sioux City, Nebraska South Sioux City, Nebraska CorTrust Bank National The First Freeman Corporation, Minneapolis August 10, 2000 Association, Freeman, South Dakota Mitchell, South Dakota The First National Bank of Freeman, Freeman, South Dakota Cumberland Bancshares, Inc., Academy Bank, Atlanta August 4, 2000 Hartsville, Tennessee Lebanon, Tennessee Dacotah Banks, Inc., Bowbells Holding Company, Minneapolis August 16, 2000 Aberdeen, South Dakota Bowbells, North Dakota First National Bank, Bowbells, North Dakota The EastBank Corporation, EastBank, Minneapolis August 9, 2000 Minneapolis, Minnesota Minneapolis, Minnesota FCB Financial, Inc., First Commercial Bank of Tampa, Atlanta August 4, 2000 Tampa, Florida Tampa, Florida First Home Bancorp, Inc., First Home Bank, Atlanta August 14, 2000 Seminole, Florida Seminole, Florida First Rainsville Bancshares, Inc. First Rainsville Bancshares, Atlanta August 11, 2000 Employee Stock Ownership Plan, Rainsville, Alabama Rainsville, Alabama First Bank of the South, Rainsville, Alabama First-West Texas Bancshares, Inc., First Pecos Bancshares, Inc., Dallas August 2, 2000 Midland, Texas Midland, Texas FMB Equibanc, Inc., Farmers and Merchants Bank, Atlanta July 28, 2000 Statesboro, Georgia Statesboro, Georgia Grant County State Bancshares, Inc. Grant County State Bancshares, Inc., Chicago August 3, 2000 Employees Stock Ownership Swayzee, Indiana Plan, Swayzee, Indiana Heritage Commerce Corp, Western Holdings Bancorp, San Francisco August 10, 2000 San Jose, California Los Altos, California Bank of Los Altos, Los Altos, California Hopkins Financial Corporation, The First Freeman Corporation, Minneapolis August 10, 2000 Mitchell, South Dakota Freeman, South Dakota The First National Bank of Freeman, Freeman, South Dakota Integrity Bancshares, Inc., Integrity Bank, Atlanta August 17, 2000 Alpharetta, Georgia Alpharetta, Georgia The Jack and Katherine Dickey First Farm Credit Corporation, Kansas City August 4, 2000 Family Limited Partnership, Custer, Oklahoma Weatherford, Oklahoma Southwest Capital, L.L.C., Weatherford, Oklahoma Maham Beteiligungsgesellschaft Habib American Bank, New York August 10, 2000 AG, New York, New York Zurich, Switzerland Pilot Grove Savings Bank Employee Farmers Savings Bank, Chicago July 25, 2000 Stock Ownership Plan, Mount Pleasant, Iowa Pilot Grove, Iowa Pilot Bancorp, Inc., Pilot Grove, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

708 Federal Reserve Bulletin • October 2000 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Valley National Bancorp, Shrewsbury Bancorp, Inc., New York August 2, 2000 Wayne, New Jersey Shrewsbury, New Jersey Shrewsbury State Bank, Shrewsbury, New Jersey Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Admiral Family Banks, Inc., To continue to engage in leasing Kansas City August 3, 2000 Alsip, Illinois activities Chambers Bancshares, Inc., To engage de novo in extending credit St. Louis August 7, 2000 Danville, Arkansas and servicing loans Lizton Financial Corporation, Independent Bankers Life Reinsurance Chicago July 26, 2000 Lizton, Indiana Company of Indiana Ltd., Turks and Caicos Islands The Northern Trust Corporation, The Northern Trust Company, Chicago August 3, 2000 Chicago, Illinois Chicago, Illinois Key Bank Tax Credit Investment Partners, Cleveland, Ohio Pierce County Bancorp, Olympic Equities Corporation, San Francisco August 4, 2000 Tacoma, Washington Puyallup, Washington Olympic Equities Corporation, Puyallup, Washington Southern Financial Bancorp, Inc. First Savings Bank of Virginia, Richmond August 2, 2000 Warrenton, Virginia Springfield, Virginia Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date M&T Bank Corporation, Keystone Financial Inc., New York August 7, 2000 Buffalo, New York Harrisburg, Pennsylvania Olympia Financial Corporation, Keystone Financial Bank, N.A., Buffalo, New York Harrisburg, Pennsylvania 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 Highlands Union Bank, First Vantage Bank/Tri-Cities, Richmond August 14, 2000 Abingdon, Virginia Bristol, Virginia Manufacturers and Traders Keystone Financial Bank, N.A., New York August 7, 2000 Company, Harrisburg, Pennsylvania Buffalo, New York Southern Financial Bank, First Savings Bank of Virginia, Richmond August 2, 2000 Warrenton, Virginia Springfield, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 709 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 Federal Reserve Banks in which the Board of Governors is not (C.D. Cal., filed July 21, 1999). Action relating to imnamed a party. pounded bank drafts. Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., filed April 28, 1999). Appeal of dismissal of action chal- Trans Union LLC v. Board of Governors, et al., No. 00-CVlenging income taxation and Federal Reserve notes. 2087(ESH) (D.D.C., filed August 30, 2000). Action under Administrative Procedure Act challenging a portion of inter- Fraternal Order of Police v. Board of Governors, No. agency rule regarding Privacy of Consumer Financial Infor- 1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998). mation. Declaratory judgment action challenging Board labor practices. On February 26, 1999, the Board filed a motion to Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed dismiss the action. August 7, 2000). Appeal of district court dismissal of action under Federal Tort Claims Act alleging violation of bank Hunter v. Board of Governors, No. 1:98CV02994 (ESH) supervision requirements. (D.D.C., filed December 9, 1998). Action under the Freedom of Information Act, the Privacy Act, and the first Individual Reference Services Group, Inc., v. Board of Goveramendment. On April 26, 2000, the court granted the nors, et al., No. 00-CV-1828 (ESH) (D.D.C., filed July 28, Board's motion to dismiss or for summary judgment. On 2000). Action under Administrative Procedure Act chal- August 25, 2000, the court denied plaintiffs request for lenging a portion of interagency rule regarding Privacy of attorney's fees and costs. Consumer Finance Information. Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C. (S.D.N.Y., filed May 15, 1998). Action to freeze assets of Cir., filed June 30, 2000). Petition for review of interagency individual pending administrative adjudication of civil rule regarding Privacy of Consumer Financial Information. money penalty assessment by the Board. On May 26, 1998, Board of Governors v. Interfinancial Services, Ltd., No. the court issued a preliminary injunction restraining the 00-5233 (D.C. Cir., filed June 27, 2000). Appeal of district transfer or disposition of the individual's assets and appointcourt order enforcing administrative subpoena issued by the ing the Federal Reserve Bank of New York as receiver for Board. On June 30, 2000, the court of appeals denied the those assets. Following entry of the Board's order requiring appellant's motion for a stay of the district court order. restitution, 85 Federal Reserve Bulletin 142 (1998), the Bettersworth v. Board of Governors, No. 00-50262 (5th Cir., court granted the Board's motion for judgment in the asset filed April 14, 2000). Appeal of district court's dismissal of freeze action and authorized a judicial sale of the seized Privacy Act claims. property. Hunter v. Board of Governors, No. 00-CV-735 (ESH) (D.D.C., Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed filed April 5, 2000). Action claiming retaliation for whistle- May 4, 1998). Appeal and cross-appeal of district court blowing activity. order granting in part and denying in part the Board's motion for summary judgment seeking prejudgment interest Bennett v. Federal Bureau of Investigation, et al., No. and a statutory surcharge in connection with a civil money H-00-0707 (S.D. Texas, filed March 1, 2000). Action allegpenalty assessed by the Board. On February 24, 1999, the ing Board interference with a private investment. On court granted the Board's appeal and denied the cross- August 23, 2000, the government filed a motion to dismiss appeal, and remanded the matter to the district court for the action. determination of prejudgment interest due to the Board. Albrecht v. Board of Governors, No. 00-CV-317 (CKK) (D.D.C., filed February 18, 2000). Action challenging the funding of the retirement plan for certain Board employees. WRITTEN AGREEMENTS APPROVED BY FEDERAL Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed RESERVE BANKS January 14, 2000). Appeal of district court order granting summary judgment to the Board in a Freedom of Informa- Banco Union, S.A.C.A. tion Act case. Caracas, Venezuela Toland v. Internal Revenue Service, Federal Reserve System, The Federal Reserve Board announced on August 23, et al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed De- 2000, the issuance of a Written Agreement by and among cember 29, 1999). Challenge to income taxation and Fed- Banco Union, S.A.C.A., Caracas, Venezuela; Banco Union, eral Reserve notes. On February 16, 2000, the government S.A.C.A., Miami Agency, Miami, Florida; Banco Union, filed a motion to dismiss the action. S.A.C.A., New York Agency, New York, New York; the Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed Federal Reserve Bank of Atlanta; the Federal Reserve August 3, 1999). Employment discrimination action. Bank of New York; the New York State Banking Depart- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

710 Federal Reserve Bulletin • October 2000 ment; and the State of Florida, Department of Banking and The Federal Reserve Board announced on August 11, Finance. 2000, the execution of a Written Agreement by and among Unity Bancorp, Inc., Clinton, New Jersey, the Federal Unity Bancorp, Inc. Reserve Bank of New York, and the Commissioner of Clinton, New Jersey Banking and Insurance of the State of New Jersey. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

49 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued All Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A32 Domestic finance companies—Assets and liabilities A33 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A34 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A3 5 Mortgage debt outstanding and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions— A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets All Commercial paper and bankers dollar DOMESTIC NONFINANCIAL STATISTICS acceptances outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A42 Nonfinancial business activity A24 Stock market—Selected statistics A42 Labor force, employment, and unemployment A43 Output, capacity, and capacity utilization A44 Industrial production—Indexes and gross value Federal Finance A46 Housing and construction A25 Federal fiscal and financing operations A47 Consumer and producer prices A26 U.S. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected 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 Nonfinancial Statistics • October 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 Q2r Mar. Apr/ Mayr June1 July Reserves of depository institutions2 1 Total -16.1 -3.4 1.8 -9.5 -34.1 13.8 12.8 -40.4 8.9 2 Required -16.0 -4.5 .0 -6.2 -37.8 16.0 18.7 -46.4 9.4 3 Nonborrowed -17.9 -3.0 2.4 -11.1 -36.2 10.2 11.1 -44.2 6.2 4 Monetary base3 9.0 20.4 4.3 -3.3 -4.5 3.1 2.7 3.1 3.4 Concepts of money and debt4 5 Ml -1.8 4.8 .5 -1.4 7.1 4.7 -11.8 -2.7 1.0 6 M2 5.3 5.1 6.0 6.1 9.5r 10.4 -.8 3.3 3.4 7 M3 5.0 10.3r 10.7r 8.1 13.6r 8.7 4.1 7.3 9.5 8 Debt 6.2 6.4 6.0r 5.3 6.9r 5.5 3.8 5.1 n.a. Nontransaction components 9 In M25 7.6 5.3 7.8 8.5 10.2 12.1 2.6 5.0 4.0 10 In M3 only6 4.4r 24.5r 23.0r 13.0 23.9r 4.6 16.4 17.2 24.5 Time and savings deposits Commercial banks 11 Savings, including MMDAs 10.6 4.2 3.6 8.0 6.5 14.8 -2.5 6.1 9.0 12 Small time7 2.1 7.0 9.1 15.1 10.4 18.3 13.8 20.5 10.8 13 Large time8'9 .3 38.6 22.6 20.3 13.7 37.9 8.5 18.6 17.6 Thrift institutions 14 Savings, including MMDAs 13.3 -3.3 -1.4 1.7 7.2 -8.0 10.4 -2.6 -.8 15 Small time7 -3.2 5.0 6.4 3.3 3.7 -1.8 7.8 9.6 12.8 16 Large time8 1.6 6.0 18.2 -.6 1.3 -5.0 -12.7 24.3 26.4 Money market mutual funds 17 Retail 8.2 10.5 18.7 9.7 19.7 19.1 -3.9 -5.8 -9.3 18 Institution-only 9.3 21.4 23.5 13.8 45.1 -1.3 17.3 15.5 51.8 Repurchase agreements and Eurodollars 19 Repurchase agreements10 10.91 16.7r 20.8r 10.3 -9.6r -12.8 33.1 32.9 10.2 20 Eurodollars10 -9.7 13.3 29.2 -3.2 65.0 -51.1 24.9 -17.0 -23.4 Debt components4 21 Federal -.3 -4.3 -4.4 -7.6 3.1 -5.5 -18.6 -9.0 n.a. 22 Nonfederal 8.0 9.4 8.8r 8.7 1.9 8.4 9.5 8.6 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) Eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with and Canada. Excludes amounts held by depository institutions, the U.S. government, money regulatory changes in reserve requirements. (See also table 1.20.) market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally by summing large time deposits, institutional money fund balances, RP liabilities, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency and Eurodollars, each seasonally adjusted separately, and adding this result to seasonally component of the money stock, plus (3) (for all quarterly reporters on the "Report of adjusted M2. Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference sectors—the federal sector (U.S. government, not including government-sponsored enterbetween current vault cash and the amount applied to satisfy current reserve requirements. prises or federally related mortgage pools) and the nonfederal sectors (state and local 4. Composition of the money stock measures and debt is as follows: governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, commercial banks other than those owed to depository institutions, the U.S. government, and which are derived from the Federal Reserve Board's flow of funds accounts, are breakforeign banks and official institutions, less cash items in the process of collection and Federal adjusted (that is, discontinuities in the data have been smoothed into the series) and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of month-averaged (that is, the data have been derived by averaging adjacent month-end levels). withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail credit union share draft accounts, and demand deposits at thrift institutions. Seasonally money fund balances, each seasonally adjusted separately. adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities OCDs, each seasonally adjusted separately. (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time term) of U.S. addressees, each seasonally adjusted separately. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 7. Small time deposits—including retail RPs—are those issued in amounts of less than money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions balances at depository institutions and money market funds. Seasonally adjusted M2 is are subtracted from small time deposits. calculated by summing savings deposits, small-denomination time deposits, and retail money 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those fund balances, each seasonally adjusted separately, and adding this result to seasonally booked at international banking facilities. adjusted Ml. 9. Large time deposits at commercial banks less those held by money market funds, M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) depository institutions, the U.S. government, and foreign banks and official institutions. balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 10. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of daily figures Average of daily figures for week ending on date indicated 2000 2000 May June July June 14 June 21 June 28 July 5 July 12 July 19 July 26 SUPPLYING RESERVE FXJNDS 1 Reserve Bank credit outstanding 558,972 558,662 559,982 557,301 558,947 559,537 564,930 560,513 558,305 558,298 U.S. government securities 2 Bought outright—System account 507,413 507,018 506,116 507,528 508,074 506,611 505,045 505,802 507,047 506,293 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—triparty4 17,303 16,905 17,642 15,541 15,563 17,478 25,048 18,979 14,873 15,237 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 99 87 64 27 46 40 59 175 31 12 9 Seasonal credit 280 389 513 352 395 461 460 484 505 549 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 404 788 469 648 1,168 819 34 364 589 482 13 Other Federal Reserve assets 33,333 33,334 35,038 33,065 33,561 33,988 34,145 34,568 35,119 35,585 14 Gold stock 11,048 11,047 11,046 11,048 11,048 11,047 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 5,200 4,667 4,200 5,200 4,200 4,200 4,200 4,200 4,200 4,200 16 Treasury currency outstanding 29,589 29,898r 30,007 29,874r 29,909r 29,944r 29,979 29,993 30,007 30,021 ABSORBING RESERVE FUNDS 17 Currency in circulation . . . . 566,062 568,485r 570,637 568,50 lr 567,780r 567,585r 572,093 573,263 570,343 568,633 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 198 87 85 81 68 69 74 67 69 102 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 7,060 6,232 5,172 5,232 7,943 6,983 6,159 4,981 5,333 4,633 21 Foreign 95 85 120 82 83 89 183 95 98 111 22 Service-related balances and adjustments . . 6,836 6,893 6,784 6,661 6,918 6,853 7,064 6,887 6,595 6,837 23 Other 250 234 233 237 251 198 228 236 249 217 2 2 5 4 O Re th s e e r r v F e e b d a e l r a a n l c R e e s s w er i v th e l F i e a d b e il r i a ti l e s R e a s n e d r v c e a p B i a ta n l k s v " 1 8 6 , , 0 2 4 6 5 5 1 6 5 , , 6 6 3 2 1 7 1 6 5 , , 5 6 5 5 3 2 1 6 5 , , 9 6 9 3 4 6 1 5 5 , , 4 5 9 7 0 1 1 7 5 , , 3 6 2 21 9 r 1 8 5 , , 6 7 4 0 6 9 1 4 5 , , 4 8 1 1 2 1 1 5 5 , , 5 3 3 3 2 9 1 7 5 , , 2 7 4 9 0 2 End-of-month figures Wednesday figures May June July June 14 June 21 June 28 July 5 July 12 July 19 July 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 566,932 566,538 560,828 560,360 566,210 566,875 563,043 563,140 557,890 561,822 U.S. government securities2 2 Bought outright—System account' 506,744 504,950 506,103 507,396 508,531 507,884 505,180 506,743 507,093 507,830 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—triparty4 26,395 26,930 17,490 18,110 20,970 22,975 23,245 20,020 14,010 16,955 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 88 54 45 79 129 50 74 263 101 12 9 Seasonal credit 344 458 584 378 454 476 460 497 536 556 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 840 -12 1,348 1,031 2,203 1,140 -373 567 719 533 13 Other Federal Reserve assets 32,381 34,019 35,119 33,226 33,783 34,210 34,317 34,910 35,292 35,796 14 Gold stock 11,048 11,046 11,046 11,048 11,048 11,047 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 5,200 4,200 4,200 5,200 4,200 4,200 4,200 4,200 4,200 4,200 16 Treasury currency outstanding 29,671 29,979r 30,035 29,874r 29,909r 29,944r 29,979 29,993 30,007 30,021 ABSORBING RESERVE FUNDS 17 Currency in circulation .. . . 570,521r 571,115r 568,558 569,176r 568,453r 569,854r 574,686 572,852 570,247 569,375 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 140 76 118 68 68 76 64 87 99 118 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,445 6,208 5,392 5,024 13,668 6,613 5,358 5,020 5,922 5,134 21 Foreign 110 105 76 107 86 117 116 93 148 94 22 Service-related balances and adjustments . 6,746 7,064r 6,553 6,661 6,918 6,853 7,064 6,887 6,595 6,837 23 Other 226 203 228 247 238 191 241 265 225 221 24 Other Federal Reserve liabilities and capital 15,271 15,719 15,331 15,339 15,254 15,313 15,359 15,293 14,966 15,436 25 Reserve balances with Federal Reserve Banks 14,390 11,274r 9,853 9,861 6,684r 13,050 5,380 7,882 4,941 9,873 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float, under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • October 2000 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1997 1998 1999 2000 Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July 1 Reserve balances with Reserve Banks2 10,664 9,026 5,263 5,169 5,078 6,515 7,078 7,660 6,465r 6,577 2 Total vault cash3 44,742 44,294 60,630 74,015 63,764 48,946 46,453 44,632 44,563 45,473 3 Applied vault cash4 37,255 36,183 36,392 39,063 37,017 33,227 33,507 33,895 32,757 33,090 4 Surplus vault cash5 7,486 8,111 24,238 34,952 26,747 15,719 12,946 10,737 11,806 12,383 5 Total reserves6 47,919 45,209 41,655 44,232 42,095 39,742 40,584 41,555 39,222 39,667 6 Required reserves 46,235 43,695 40,347 42,207 40,982 38,533 39,433 40,589 38,087r 38,542 7 Excess reserve balances at Reserve Banks7 1,685 1,514 1,308 2,025 1,113 1,209 1,152 966 1,136' 1,125 8 Total borrowing at Reserve Banks 324 117 320 374 108 179 304 362 479 570 9 Adjustment 245 101 179 296 45 101 184 86 90 60 10 Seasonal 79 15 67 31 44 71 120 276 389 510 11 Special Liquidity Facility8 0 0 74 46 19 7 0 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 Apr. 5 Apr. 19 May 3 May 17 May 31 June 14 June 28 July 12 July 26 Aug. 3 1 Reserve balances with Reserve Banks2 7,186 6,715 7,491 7,614 7,743 6,502 6,420 6,530r 6,390 7,212 2 Total vault cash3 48,613 47,144 44,592 44,114 45,158 43,847 45,105 45,782 44,916 46,292 3 Applied vault cash4 33,330 32,885 34,378 33,227 34,459 32,183 33,332 32,747r 33,188 33,643 4 Surplus vault cash5 15,283 14,259 10,214 10,887 10,699 11,664 11,773 13,035 11,729 12,650 5 Total reserves6 40,516 39,600 41,869 40,841 42,202 38,685 39,752 39,277r 39,578 40,855 6 Required reserves 38,883 38,516 40,849 39,929 41,194 37,707 38,473r 38,042r 38,550 39,722 7 Excess reserve balances at Reserve Banks7 1,632 1,083 1,019 912 1,008 978 l,279r l,235r 1,027 1,133 8 Total borrowing at Reserve Banks 189 368 276 303 440 472 471 589 549 581 9 Adjustment 104 264 120 65 100 134 43 117 22 27 10 Seasonal 85 104 156 238 340 339 428 472 527 555 11 Special Liquidity Facility8 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 Al 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit' Seasonal credit2 Extended credit3 FFeeddeerraall RReesseerrvvee BBaannkk 9/ O 1/ n 0 0 Effective date Previous rate 9/ O 1/ n 0 0 Effective date Previous rate 9/ O 1/ n 0 0 Effective date Previous rate Boston 6.00 5/16/00 5.50 6.55 8/10/00 6.60 7.05 8/10/00 7.10 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 .... 6.00 5/16/00 5.50 6.55 8/10/00 6.60 7.05 8/10/00 7.10 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank level)—All of Effective date level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1977 1982—Oct. 12 9.5-10 9.5 1994—May 17 3-3.5 3.5 13 9.5 9.5 18 3.5 3.5 1978—Jan. 9 6-6.5 6.5 Nov. 22 9-9.5 9 Aug. 16 3.5^1 4 20 6.5 6.5 26 9 9 18 4 4 May 11 6.5-7 7 Dec. 14 8.5-9 9 Nov. 15 4-4.75 4.75 12 7 7 15 8.5-9 8.5 17 4.75 4.75 July 3 7-7.25 7.25 17 8.5 8.5 10 7.25 7.25 1995—Feb. 1 4.75-5.25 5.25 Aug. 21 7.75 7.75 1984—Apr. 9 8.5-9 9 9 5.25 5.25 Sept. 22 8 8 13 9 9 Oct. 16 8-8.5 8.5 Nov. 21 8.5-9 8.5 1996—Jan. 31 5.00-5.25 5.00 20 8.5 8.5 26 8.5 8.5 Feb. 5 5.00 5.00 Nov. 1 8.5-9.5 9.5 Dec. 24 8 8 3 9.5 9.5 1998—Oct. 15 4.75-5.00 4.75 1985—May 20 7.5-8 7.5 16 4.75 4.75 1979—July 20 10 10 24 7.5 7.5 Nov. 17 4.50-4.75 4.50 Aug. 17 10-10.5 10.5 19 4.50 4.50 20 10.5 10.5 1986—Mar. 7 7-7.5 7 Sept. 19 10.5-11 11 10 7 7 1999—Aug. 24 4.50-4.75 4.75 21 11 11 Apr. 21 6.5-7 6.5 26 4.75 4.75 Oct. 8 11-12 12 23, 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 12 12 July 11 6 6 18 5.00 5.00 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 13 22 5.5 5.5 2000—Feb. 2 5.00-5.25 5.25 19 13 13 4 5.25 5.25 May 29 12-13 13 1987—Sept. 4 5.5-6 6 Mar. 21 5.25-5.50 5.50 30 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 28 10-11 10 11 6.5 6.5 2 9 10 10 IInn eeffffeecctt SSeepptt.. 11,, 22000000 6.00 6.00 Sept. 26 11 11 1989—Feb. 24 6.5-7 7 Nov. 17 12 12 27 7 7 Dec. 5 12-13 13 8 13 13 1990—Dec. 19 6.5 6.5 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 8 14 14 4 6 6 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 6 13 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-11.5 11 Dec. 20 3.5-15 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 3 0 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for 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 NonfinancialS tatistics • October 2000 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit Net transaction accounts 1 $0 million-$44.3 million3. 12/30/99 2 More than $44.3 million4 . 12/30/99 3 Nonpersonal time deposits5 12/27/90 4 Eurocurrency liabilities6. . . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve Banks succeeding calendar year by 80 percent of the percentage increase in the total reservable or vault cash. Nonmember institutions may maintain reserve balances with a Federal liabilities of all depository institutions, measured on an annual basis as of June 30. No Reserve Bank indirectly, on a pass-through basis, with certain approved institutions. For corresponding adjustment is made in the event of a decrease. The exemption applies only to previous reserve requirements, see earlier editions of the Annual Report or the Federal accounts that would be subject to a 3 percent reserve requirement. Effective with the reserve Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions maintenance period beginning December 30, 1999, for depository institutions that report include commercial banks, savings banks, savings and loan associations, credit unions, weekly, and with the period beginning January 20, 2000, for institutions that report quarterly, agencies and branches of foreign banks, and Edge Act corporations. the exemption was raised from $4.9 million to $5.0 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on to make withdrawals by negotiable or transferable instruments, payment orders of with- Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that drawal, or telephone or preauthorized transfers for the purpose of making payments to third report quarterly. persons or others. However, accounts subject to the rules that permit no more than six 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits preauthorized, automatic, or other transfers per month (of which no more than three may be with an original maturity of less than 1VS years was reduced from 3 percent to 1 x/2 percent for by check, draft, debit card, or similar order payable directly to third parties) are savings the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that deposits, not transaction accounts. began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts nonpersonal time deposits with an original maturity of less than 1 Vi years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of l'A 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 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 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May June U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,147 3,550 0 0 0 0 0 2,294 0 0 2 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 435,907 450,835 464,218 42,468 37,029 38,607 48,459 37,141 36,386 44,008 4 For new bills 435,907 450,835 464,218 42,468 37,029 38,607 48,459 37,141 36,386 44,008 5 Redemptions 0 2,000 0 0 0 0 198 779 2,297 4,188 Others within one year 6 Gross purchases 5,549 6,297 11,895 1,450 0 0 0 0 164 1,875 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 41,716 46,062 50,590 3,936 3,566 6,877 5,034 0 13,063 4,672,255 9 Exchanges -27,499 -49,434 -53,315 -2,175 -4,360 -6,688 -3,515 0 -12,633 3,108,900 10 Redemptions 1,996 2,676 1,429 0 390 0 0 568 0 0 One to five years 11 Gross purchases 20,080 12,901 19,731 3,514 160 0 740 1,723 890 706 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,987 -37,777 -44,032 -3,936 -3,566 -5,210 -5,034 0 -10,334 4,672,255 14 Exchanges 20,274 37,154 42,604 2,175 4,045 4,348 3,515 0 10,063 3,108,900 Five to ten years 15 Gross purchases 3,449 2,294 4,303 581 809 0 489 930 0 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -1,954 -5,908 -5,841 0 0 -949 0 0 -1,552 0 18 Exchanges 5,215 7,439 7,583 0 316 1,170 0 0 2,570 0 More than ten years 19 Gross purchases 5,897 4,884 9,428 1,257 1,069 0 330 0 528 1,151 ?,0 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -1,775 -2,377 -717 0 0 -717 0 0 -1,177 0 22 Exchanges 2,360 4,842 3,139 0 0 1,170 0 0 0 0 All maturities 23 Gross purchases 44,122 29,926 45,357 6,802 2,038 0 1,559 4,947 1,582 3,732 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 0 390 0 198 1,347 2,297 4,188 Matched transactions 26 Gross purchases 3,577,954 4,395,430 4,395,998 488,845 492,277 340,127 401,404 336,103 357,355 368,396 27 Gross sales 3,580,274 4,399,330 4,414,253 510,605 471,663 339,585 401,841 334,751 356,640 369,739 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 -14,959 22,262 542 923 4,952 -1 -1,800 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 0 6 25 0 10 0 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 0 -6 -25 0 -10 0 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 330044,,998899 155,578 61,345 8822,,999988 6611,,223300 79,585 107,375 70,850 40 Gross sales 0 0 164,349 64,378 178,880 81,335 62,253 78,425 105,885 70,315 41 Net change in triparty obligations 0 0 140,640 91,200 -117,535 1,663 -1,023 1,160 1,490 535 42 Total net change in System Open Market Account... 40,522 27,538 135,780 76,241 -95,279 2,180 -100 6,102 1,489 -1,265 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market 2. Transactions exclude changes in compensation for the effects of inflation on the principal Account; all other figures increase such holdings. of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic NonfinancialS tatistics • October 2000 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2000 2000 June 28 July 5 July 12 July 19 July 26 May 31 June 30 July 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,047 11,046 11,046 11,046 11,046 11,048 11,046 11,046 2 Special drawing rights certificate account 4,200 4,200 4,200 4,200 4,200 5,200 4,200 4,200 3 Coin 679 667 660 688 715 599 699 754 Loans 4 To depository institutions 526 535 761 637 568 431 512 628 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 22,975 23,245 20,020 14,010 16,955 26,395 26,930 17,490 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 507,884 505,180 506,743 507,093 507,830 506,744 504,950 506,103 11 Bought outright4 507,884 505,180 506,743 507,093 507,830 506,744 504,950 506,103 1? Bills 195,726 193,022 193,846 192,174 191,626 198,323 192,792 190,265 n Notes 226,138 226,139 226,382 227,613 228,869 223,631 226,138 228,503 14 Bonds 86,020 86,020 86,515 87,305 87,335 84,791 86,020 87,335 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 531,525 529,100 527,664 521,879 525,493 533,710 532,532 524,361 17 Items in process of collection 7,924 6,269 8,000 8,004 7,390 11,985 5,545 3,414 18 Bank premises 1,402 1.410 1,411 1,413 1.413 1,400 1,409 1,418 Other assets 19 Denominated in foreign currencies5 15,266 15.553 15,559 15,564 15,569 15,246 15,550 15,092 20 All other6 17,516 17,342 17,898 18,314 18,812 15,707 17,056 18,600 21 Total assets 589,559 585,587 586,438 581,108 584,640 594,896 588,037 578,886 LIABILITIES 22 Federal Reserve notes 540,664 545,439 543,605 541,028 540,188 541,590 541,912 539,396 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 26,630 18,786 20,244 17,945 22,201 27,416 25,028 22,006 25 Depository institutions 19,709 13,071 14,866 11,649 16,752 21,634 18,513 16,309 26 U.S. Treasury—General account 6,613 5,358 5,020 5,922 5,134 5,445 6,208 5,392 27 Foreign—Official accounts 117 116 93 148 94 110 105 76 28 Other 191 241 265 225 221 226 203 228 79 Deferred credit items 6,952 6,004 7,295 7,170 6,815 10,619 5,379 2,154 30 Other liabilities and accrued dividends7 4,811 4.604 4,758 4,433 4,888 4,752 4,781 4,839 31 Total liabilities 579,057 574,832 575,903 570,575 574,092 584,377 577,099 568,394 CAPITAL ACCOUNTS 37 Capital paid in 6,865 6,866 6,870 6,877 6,880 6,781 6,865 6,881 33 Surplus 2,679 2,679 2,679 2,679 2,679 2,679 2,679 2,615 34 Other capital accounts 958 1,210 986 977 988 1,058 1,395 995 35 Total liabilities and capital accounts 589,559 585,587 586,438 581,108 584,640 594,896 588,037 578,886 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) 773,885 773,010 771,875 771,075 770,457 777,900 773,550 769,994 38 LESS: Held by Federal Reserve Banks 233,221 227,571 228,269 230,047 230,269 236,310 231,639 230,598 39 Federal Reserve notes, net 540,664 545,439 543,605 541,028 540,188 541,590 541,912 539,396 Collateral held against notes, net 40 Gold certificate account 11,047 11,046 11,046 11,046 11,046 11,048 11,046 11,046 41 Special drawing rights certificate account 4,200 4,200 4,200 4,200 4,200 5,200 4,200 4,200 47 Other eligible assets 0 1,627 1,456 4,539 17 0 0 417 43 U.S. Treasury and agency securities 525,417 528,565 526,903 521,243 524,925 525,342 526,665 523,733 44 Total collateral 540,664 545,439 543,605 541,028 540,188 541,590 541,912 539,396 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 June 28 July 5 July 12 July 19 July 26 May 31 June 30 July 31 1 Total loans 526 535 761 637 569 440 512 577 2 Within fifteen days1 481 175 399 610 515 402 307 371 3. Sixteen days to ninety days 45 359 362 27 54 38 206 206 4. 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 507,884 505,180 506,743 507,093 507,830 506,744 504,949 506,103 6 Within fifteen days1 17,350 13,016 13,805 20,814 18,709 15,491 1,038 13,568 7 Sixteen days to ninety days 107,056 109,813 109,879 107,367 107,688 105,584 118,287 108,730 8 Ninety-one days to one year 135,157 135,592 135,562 129,393 131,913 139,209 138,867 136,104 9 One year to five years 126,231 124,668 125,406 126,927 126,927 125,525 124,668 125,108 10 Five years to ten years 53,437 53,438 53,439 53,493 53,440 53,435 53,438 53,440 11 More than ten years 68,652 68,652 68,653 69,152 69,153 67,500 68,652 69,153 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 10 10 10 10 10 0 10 10 15 Ninety-one days to one year 0 0 0 0 0 10 0 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 • October 2000 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 1999 2000 1996 1997 1998 1999 IItteemm Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Apr. May June July Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 50.17 46.87 45.19 41.74 41.74 43.11 41.64 40.45 40.92 41.35 39.96 40.26 2 Nonborrowed reserves4 50.02 46.54 45.07 41.42 41.42 42.74 41.53 40.27 40.62 40.99 39.48 39.69 3 Nonborrowed reserves plus extended credit5 50.02 46.54 45.07 41.42 41.42 42.74 41.53 40.27 40.62 40.99 39.48 39.69 4 Required reserves 48.76 45.18 43.68 40.43 40.43 41.09 40.52 39.24 39.77 40.39 38.83 39.13 5 Monetary base6 451.62 479.17 512.75 591.19 591.19 591.97 573.50 571.37 572.87r 574.14r 575.64r 577.28 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.31 41.89 41.89 44.23 42.10 39.75 40.60 41.58 39.25 39.70 7 Nonborrowed reserves 51.30 47.69 45.19 41.57 41.57 43.86 41.99 39.58 40.30 41.21 38.77 39.13 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.19 41.57 41.57 43.86 41.99 39.58 40.30 41.21 38.77 39.13 9 Required reserves8 50.04 46.33 43.80 40.58 40.58 42.20 40.99 38.55 39.45 40.61 38.11 38.57 10 Monetary base9 456.63 484.98 518.27 600.63 600.63 596.90 571.87 570.24 571.51r 573.25r 574.56r 577.04 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 51.17 47.92 45.21 41.66 41.66 44.23 42.10 39.74 40.58 41.56 39.22 39.67 12 Nonborrowed reserves 51.02 47.60 45.09 41.33 41.33 43.86 41.99 39.56 40.28 41.19 38.74 39.10 13 Nonborrowed reserves plus extended credit5 51.02 47.60 45.09 41.33 41.33 43.86 41.99 39.56 40.28 41.19 38.74 39.10 14 Required reserves 49.76 46.24 43.70 40.35 40.35 42.21 40.98 38.53 39.43 40.59 38.09 38.54 15 Monetary base12 463.40 491.79 525.06 607.93 607.93 604.63 579.22 577.12 578.33r 580.08r 581.44r 583.83 16 Excess reserves13 1.42 1.69 1.51 1.31 1.31 2.03 1.11 1.21 1.15 .97 1.14 1.13 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .32 .37 .11 .18 .30 .36 .48 .57 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 nonboiTowed 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 . Apr/ Mayr Juner July Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,122.9 1,116.7 1,105.7 1,103.2 1,104.1 2 M2 3,822.9 4,041.9 4,396.8 4,655.4 4,769.2 4,766.0 4,779.0 4,792.4 3 M3 4,952.4 5,403.2 5,996.7 6,482.5r 6,668.7 6,691.3 6,731.8 6,785.1 4 Debt 14,443.9 15,234.7 16,282.9 17,381.5r 17,720.6 17,777.0 17,852.5 n.a. Ml components 5 Currency3 394.3 424.8 459.5 515.5 518.7 520.4 522.4 523.7 6 Travelers checks4 8.3 8.1 8.2 8.3 8.2 8.3 8.8 9.3 7 Demand deposits5 402.3 395.3 379.3 355.2 342.0 334.8 331.1 332.0 8 Other checkable deposits6 276.1 245.8 250.3 244.0 247.9 242.3 240.9 239.1 Nontransaction components 9 In M21 2,741.8 2,967.9 3,299.4 3,532.5 3,652.5 3,660.4 3,675.8 3,688.2 10 In M3 only8 1,129.5 1,361.3 1,599.9 1,827.lr 1,899.4 1,925.3 1,952.9 1,992.8 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.7 1.325.3 1,322.5 1,329.2 1,339.2 12 Small time deposits9 593.3 625.4 626.1 634.7 659.9 667.5 678.9 685.0 13 Large time deposits10' 11 413.9 488.3 539.3 614.4 647.4 652.0 662.1 671.8 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.7 449.3 453.2 452.2 451.9 15 Small time deposits9 353.6 342.8 325.6 320.5 324.2 326.3 328.9 332.4 16 Large time deposits10 78.3 85.6 88.9 91.5 94.7 93.7 95.6 97.7 Money market mutual funds 17 Retail 524.4 602.8 749.2 842.9 893.8 890.9 886.6 879.7 18 Institution-only 312.0 380.8 518.4 607.4 640.0 649.2 657.6 686.0 Repurchase agreements and Eurodollars 19 Repurchase agreements12 210.7 256.0 300.8 334400..33rr 344.1 353.6 363.3 366.4 20 Eurodollars12 114.6 150.7 152.6 173.5 173.2 176.8 174.3 170.9 Debt components 21 Federal debt 3,781.3 3,800.3 3,750.8 3,659.5 3,602.3 3,546.5 3,520.0 n.a. 22 Nonfederal debt 10,662.6 11,434.4 12,532.1 13,722.0r 14,118.3 14,230.5 14,332.5 n.a. Not seasonally adjusted Measures2 23 Ml 1,105.1 1,097.7 1,121.3 1,147.4 1,125.5 1,099.5 1,100.8 1,102.9 24 M2 3,845.2 4,065.0 4,422.0 4,683.7 4,814.8 4,737.9 4,759.6 4,776.7 25 M3 4,973.4 5,427.2 6,026.3 6,517.5r 6,712.6 6,669.6 6,708.4 6,745.4 26 Debt 14,440.5 15,231.8 16,279.8 17,380.6r 17,692.6 17,730.3 17,803.2 n.a. MI components 27 Currency3 397.9 428.9 464.1 521.2 519.0 520.0 521.9 523.8 28 Travelers checks4 8.6 8.3 8.4 8.4 8.3 8.4 8.7 8.9 29 Demand deposits5 419.9 412.4 395.9 371.2 344.6 329.6 329.1 332.8 30 Other checkable deposits 278.8 248.2 252.8 246.7 253.5 241.6 241-. 1 237.4 Nontransaction components 31 In M27 2,740.0 2,967.4 3,300.7 3,536.3 3,689.3 3,638.4 3,658.8 3,673.7 32 In M3 only8 1,128.2 1,362.2 1,604.3 l,833.8r 1,897.8 1,931.6 1,948.8 1,968.7 Commercial banks 33 Savings deposits, including MMDAs 903.3 1,020.4 1,186.0 1,288.5 1,341.6 1,317.7 1,330.1 1,341.0 34 Small time deposits9 592.7 625.3 626.5 635.5 660.6 665.2 674.7 682.7 35 Large time deposits10' 413.2 487.2 537.8 612.6 647.2 656.6 663.7 672.5 Thrift institutions 36 Savings deposits, including MMDAs 366.3 376.5 414.2 449.7 454.8 451.5 452.5 452.5 37 Small time deposits9 353.2 342.8 325.8 321.0 324.5 325.2 326.8 331.2 38 Large time deposits10 78.1 85.4 88.6 91.2 94.7 94.4 95.8 97.8 Money market mutual funds 39 Retail 524.3 602.3 748.1 841.6 907.8 878.8 874.6 866.2 40 Institution-only 315.6 386.7 527.9 618.9 640.2 644.5 650.3 665.9 Repurchase agreements and Eurodollars 41 Repurchase agreements 205.7 250.5 295.4 335.51 342.7 357.8 364.5 363.6 42 Eurodollars12 115.7 152.3 154.5 175.6 173.1 178.3 174.5 168.9 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,663.1 3,597.2 3,514.0 3,475.5 n.a. 44 Nonfederal debt 10,652.5 11,426.0 12,524.8 13,717.5r 14,095.4 14,216.4 14,327.7 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • October 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 Liabilities' A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Julyr Jan.r Feb.r Mar.r Apr/ Mayr Juner July July 5 July 12 July 19 July 26 Seasonally adjusted Assets 1 Bank credit 4,563.7 4,792.3 4,839.2 4,889.6 4,932.2 4,998.0 5,026.4 5,062.2 5,041.9 5,041.1 5,065.3 5,074.3 7, Securities in bank credit 1,232.5 1,267.8 1,269.6 1,280.5 1,288.8 1,306.6 1,301.8 1,308.3 1,300.3 1,297.2 1,307.6 1,314.6 U.S. government securities 815.3 812.7 815.2 815.7 814.4 815.5 817.1 819.5 823.8 818.3 819.1 817.6 4 Other securities 417.2 455.1 454.4 464.8 474.5 491.1 484.7 488.8 476.5 478.9 488.5 496.9 Loans and leases in bank credit2 . . . 3,331.1 3,524.5 3,569.6 3,609.1 3,643.4 3,691.3 3,724.6 3,753.9 3,741.5 3,743.9 3,757.7 3,759.8 6 Commercial and industrial 964.9 1,009.9 1,022.4 1,031.0 1,039.2 1,059.0 1,067.3 1,074.0 1,067.9 1,073.1 1,072.9 1,076.7 7 Real estate 1,373.9 1,492.9 1,515.1 1,537.4 1,554.6 1,577.7 1,593.2 1,607.7 1,601.7 1,605.8 1,609.7 1,607.5 8 Revolving home equity 99.1 104.4 106.4 108.9 112.6 115.1 115.7 117.0 116.9 116.5 116.7 117.3 9 Other 1,274.7 1,388.5 1,408.7 1,428.5 1,442.0 1,462.6 1,477.6 1,490.7 1,484.8 1,489.3 1,492.9 1,490.2 in Consumer 482.0 495.7 500.0 502.8 507.2 510.4 516.3 517.2 516.0 514.8 517.8 518.4 u Security3 123.5 143.4 143.0 143.3 144.0 145.0 149.7 151.8 154.2 150.0 156.6 149.2 i? Other loans and leases 386.9 382.6 389.1 394.7 398.4 399.3 398.0 403.2 401.9 400.2 400.7 408.0 Interbank loans 222.6 222.5 228.2 223.5 221.9 227.2 227.8 240.0 239.1 236.6 237.1 251.5 14 Cash assets4 259.9 282.8 279.9 272.1 281.3 274.3 269.1 269.9 274.4 270.4 262.3 274.6 15 Other assets5 348.7 380.4 366.3 366.0 368.2 377.5 380.0 399.6 389.7 396.5 403.7 407.7 16 Total assets6 5,336.4 5,618.8 5,654.5 5,691.9 5,743.8 5,816.6 5,842.8 5,910.1 5,884.2 5,883.0 5,906.7 5,9463 Liabilities 17 Deposits 3,396.9 3,540.4 3,558.6 3,575.7 3,626.1 3,631.6 3,658.8 3,716.9 3,719.9 3,695.8 3,704.6 3,732.2 18 Transaction 644.7 626.7 625.4 626.3 626.1 629.7 617.2 613.2 617.7 602.8 609.7 636.5 19 Nontransaction 2,752.2 2,913.6 2,933.3 2,949.4 3,000.0 3,001.9 3,041.5 3,103.7 3,102.3 3,093.1 3,094.9 3,095.7 ?n Large time 727.7 841.0 844.8 851.3 872.1 877.9 894.7 915.4 906.1 903.6 918.3 923.3 71 Other 2,024.5 2,072.7 2,088.5 2,098.1 2,127.9 2,124.0 2,146.8 2,188.2 2,196.2 2,189.4 2,176.6 2,172.4 77. Borrowings 1,023.6 1,133.9 1,136.0 1,157.7 1,186.8 1,200.8 1,201.4 1,219.1 1,211.3 1,204.1 1,230.1 1,232.6 73 From banks in the U.S 335.8 360.3 368.7 377.5 377.4 383.8 375.3 386.5 389.2 379.7 382.9 393.6 74 From others 687.8 773.6 767.3 780.2 809.4 817.0 826.1 832.6 822.1 824.3 847.2 839.0 75 Net due to related foreign offices 215.4 229.8 234.1 233.5 223.9 249.8 259.5 261.2 260.8 279.5 253.3 240.4 26 Other liabilities 274.5 290.4 298.4 293.8 294.1 317.8 307.5 299.7 296.4 290.6 301.2 304.2 27 Total liabilities 4,910.5 5,194.5 5,227.1 5,260.6 5330.9 5,400.0 5,427.2 5,496.8 5,488.5 5,470.0 5,4893 5,509.4 28 Residual (assets less liabilities)7 426.0 424.3 427.4 431.2 412.8 416.7 415.6 413.3 395.7 413.0 417.3 436.9 Not seasonally adjusted Assets 79 Bank credit 4,535.5 4,816.5 4,841.9 4,883.5 4,932.7 4,989.9 5,010.5 5,034.6 5,029.3 5,013.5 5,034.8 5,035.0 3(1 Securities in bank credit 1,217.5 1,276.3 1,273.7 1,281.9 1,290.8 1,304.3 1,291.6 1,291.2 1,286.3 1,280.5 1,288.3 1,295.6 31 U.S. government securities 807.1 814.4 819.2 822.7 823.0 820.9 816.4 811.1 818.7 810.8 809.4 807.2 37 Other securities 410.4 461.8 454.5 459.2 467.8 483.4 475.2 480.1 467.6 469.7 479.0 488.4 33 Loans and leases in bank credit2 . . . 3,318.1 3,540.2 3,568.2 3,601.5 3,641.9 3,685.6 3,718.9 3,743.4 3,743.0 3,733.1 3,746.5 3,739.4 34 Commercial and industrial 960.5 1,007.4 1,023.1 1,034.9 1,046.3 1,061.9 1,066.7 1,069.2 1,069.3 1,068.1 1,068.8 1,068.0 35 Real estate 1,371.0 1,496.9 1,512.0 1,532.6 1,550.1 1,575.1 1,589.9 1,604.0 1,597.6 1,603.1 1,604.8 1,603.1 36 Revolving home equity 99.2 104.7 106.1 107.8 111.8 114.7 115.7 117.1 116.7 116.7 116.8 117.5 37 Other 1,271.8 1,392.2 1,405.9 1,424.7 1,438.4 1,460.4 1,474.2 1,486.9 1,480.9 1,486.4 1,488.0 1,485.6 38 Consumer 478.2 502.9 502.0 501.2 506.1 510.0 515.3 517.2 516.0 514.8 517.8 518.4 39 Credit cards and related plans. . n.a. n.a. n.a. n.a. n.a. n.a. n.a. 195.8 195.1 194.3 196.8 196.3 40 Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. 321.4 320.9 320.5 321.0 322.1 41 Security3 120.4 147.5 144.5 142.3 144.6 143.4 149.6 148.8 151.7 146.7 153.6 145.2 47 Other loans and leases 388.0 385.5 386.6 390.6 394.8 395.1 397.5 404.1 408.4 400.3 401.5 404.8 43 Interbank loans 218.6 223.4 229.6 229.0 228.2 226.9 227.3 236.0 247.3 233.5 232.5 237.9 44 Cash assets4 251.2 296.9 280.5 263.7 278.5 272.1 265.2 260.6 286.7 259.2 249.1 251.5 45 Other assets5 348.8 378.9 368.5 369.4 371.6 380.5 381.4 399.0 397.3 395.9 399.7 401.4 46 Total assets6 5,295.9 5,656.7 5,661.5 5,686.2 5,751.5 5,809.1 5,823.9 5,868.6 5399.7 5,840.6 5,854.6 5,8643 Liabilities 47 Deposits 3,375.1 3,553.6 3,557.5 3,579.5 3,644.1 3,616.9 3,646.9 3,692.4 3,736.3 3,674.4 3,673.6 3,673.9 48 Transaction 637.9 638.2 618.4 619.2 634.7 620.4 616.2 606.8 645.9 594.7 597.4 606.5 49 Nontransaction 2,737.2 2,915.4 2,939.1 2,960.3 3,009.4 2,996.6 3,030.7 3,085.6 3,090.4 3,079.7 3,076.2 3,067.4 50 Large time 715.0 852.0 857.4 859.7 871.6 874.1 883.9 898.8 886.5 888.2 901.7 907.2 51 Other 2,022.3 2,063.4 2,081.7 2,100.6 2,137.7 2,122.5 2,146.8 2,186.8 2,203.9 2,191.5 2,174.4 2,160.2 57 Borrowings 1,011.2 1,152.5 1,140.2 1,153.3 1,185.8 1,210.2 1,204.3 1,205.9 1,202.3 1,189.2 1,220.1 1,219.7 53 From banks in the U.S 331.8 364.2 370.3 377.4 378.9 384.4 376.1 383.4 388.7 376.4 379.8 389.5 54 From others 679.4 788.3 769.9 775.9 806.9 825.8 828.1 822.5 813.5 812.7 840.3 830.2 55 Net due to related foreign offices .... 209.2 233.4 248.5 237.0 213.3 250.2 250.1 252.7 243.4 264.2 242.4 252.3 56 Other liabilities 272.8 291.9 300.8 294.5 292.8 316.3 305.7 297.2 293.3 288.2 298.3 302.3 57 Total liabilities 4,8683 5,231.4 5,246.9 5,264.3 5,336.1 5,393.6 5,406.9 5,4483 5,4753 5,416.0 5,434.4 5,448.2 58 Residual (assets less liabilities)7 427.6 425.3 414.6 421.9 415.5 415.5 417.0 420.3 424.4 424.6 420.2 416.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • October 2000 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Julyr Jan.r Feb.1" Mar.r Apr/ Mayr June' July July 5 July 12 July 19 July 26 Seasonally adjusted Assets 1 Bank credit 4,036.2 4,244.2 4,298.9 4,346.3 4,365.3 4,417.6 4,453.4 4,489.1 4,470.0 4,470.4 4,490.4 4,504.2 2 Securities in bank credit 1,038.7 1,066.6 1,077.4 1,085.1 1,087.1 1,098.8 1,099.2 1,105.9 1,100.0 1,098.9 1,106.4 1,111.2 U.S. government securities 728.9 731.6 739.3 737.6 734.7 735.9 738.2 739.9 743.9 739.8 741.0 737.4 4 Other securities 309.8 335.0 338.2 347.4 352.4 363.0 361.0 366.1 356.1 359.2 365.4 373.9 5 Loans and leases in bank credit- 2,997.5 3,177.6 3,221.4 3.261.2 3,278.1 3,318.7 3,354.2 3,383.1 3,370.1 3,371.4 3,384.1 3,393.0 6 Commercial and industrial 770.4 815.2 826.7 834.6 840.0 853.9 862.1 870.4 865.1 869.4 869.4 873.7 7 Real estate 1,355.4 1,475.5 1,497.4 1,519.4 1,536.3 1,559.1 1,574.4 1,589.0 1,582.8 1,587.0 1,591.0 1,589.1 8 Revolving home equity 99.1 104.4 106.4 108.9 112.6 115.1 115.7 117.0 116.9 116.5 116.7 117.3 y Other 1,256.3 1,371.1 1,391.1 1,410.5 1,423.7 1,444.0 1,458.7 1,472.0 1,465.9 1,470.5 1,474.2 1,471.7 10 Consumer 482.0 495.7 500.0 502.8 507.2 510.4 516.3 517.2 516.0 514.8 517.8 518.4 11 Security3 70.8 76.6 76.2 76.8 66.1 64.0 68.7 70.3 69.9 66.8 72.2 71.2 12 Other loans and leases 318.9 314.6 321.1 327.6 328.6 331.3 332.8 336.3 336.3 333.5 333.7 340.6 13 Interbank loans 194.7 193.6 195.5 194.9 192.5 195.4 199.1 213.8 211.3 209.2 211.7 221.9 14 Cash assets4 222.3 230.6 229.2 224.4 233.9 230.3 224.5 224.6 229.6 225.5 218.9 228.9 15 Other assets5 315.7 341.7 328.0 326.8 328.1 336.3 336.4 356.7 344.3 354.5 360.4 365.2 16 Total assets6 4,710.8 4,951.2 4,992.8 5,033.5 5,060.4 5,119.7 5,153.3 5,222.8 5,194.7 5,198.4 5,220.1 5,258.6 Liabilities 17 Deposits 3,084.0 3,161.4 3,181.5 3,197.7 3,238.6 3,249.5 3,276.3 3,330.1 3,335.2 3,317.4 3,314.9 3,340.8 18 Transaction 633.9 616.0 614.4 615.2 615.2 618.5 605.8 601.8 605.5 591.6 598.0 625.3 19 Nontransaction 2,450.1 2,545.4 2,567.1 2,582.5 2,623.4 2,631.0 2,670.5 2,728.2 2,729.7 2,725.8 2,716.9 2,715.4 20 Large time 427.9 474.7 480.2 487.3 498.5 509.6 524.6 542.6 535.8 539.1 542.9 545.5 21 Other 2,022.1 2,070.7 2,086.9 2,095.2 2,124.9 2,121.4 2,145.8 2,185.7 2,193.9 2,186.7 2,174.0 2,169.9 22 Borrowings 848.8 954.6 960.6 980.5 987.1 996.4 996.1 1,013.6 997.8 1,002.4 1,024.6 1,024.7 23 From banks in the U.S 311.5 340.6 350.3 357.7 356.5 365.9 356.3 365.7 362.9 359.9 365.5 369.5 24 From others 537.2 614.0 610.3 622.8 630.6 630.5 639.8 647.9 635.0 642.5 659.2 655.2 25 Net due to related foreign offices .... 144.7 194.2 207.1 213.2 208.6 228.7 240.1 243.5 242.0 252.6 239.9 234.0 26 Other liabilities 211.5 220.0 225.7 222.6 220.8 237.9 234.6 229.5 225.5 221.5 230.1 235.1 27 Total liabilities 4,288.9 4,530.1 4,574.9 4,614.0 4,655.1 4,712.4 4,747.1 4,816.6 4,800.6 4,793.9 4,809.5 4,834.6 28 Residual (assets less liabilities)7 421.9 421.1 417.8 419.4 405.3 407.3 406.2 406.2 394.1 404.5 410.6 424.1 Not seasonally adjusted Assets 29 Bank credit 4,016.4 4,260.6 4,297.4 4,341.5 4,372.0 4,417.8 4,447.0 4,471.8 4,466.2 4,454.2 4,470.2 4,476.2 30 Securities in bank credit 1,028.7 1,071.2 1,080.2 1,089.4 1,092.6 1,099.5 1,094.8 1,095.5 1,092.0 1,089.3 1,094.2 1,098.4 31 U.S. government securities 721.6 732.8 743.1 744.8 742.7 740.2 737.5 732.4 738.9 733.5 732.0 728.1 32 Other securities 307.1 338.4 337.2 344.6 350.0 359.2 357.3 363.0 353.1 355.9 362.1 370.3 33 Loans and leases in bank credit2 2,987.7 3,189.4 3,217.1 3,252.1 3,279.3 3,318.3 3,352.2 3,376.4 3,374.2 3,364.9 3,376.0 3,377.9 34 Commercial and industrial 768.2 811.3 824.9 836.9 848.8 861.0 864.7 868.0 869.0 867.3 867.2 867.6 35 Real estate 1,352.7 1,479.3 1,494.0 1,514.4 1,532.0 1,556.6 1,571.1 1,585.5 1,578.9 1,584.4 1,586.3 1,584.9 36 Revolving home equity 99.2 104.7 106.1 107.8 111.8 114.7 115.7 117.1 116.7 116.7 116.8 117.5 37 Other 1,253.5 1,374.6 1,388.0 1,406.6 1,420.2 1,441.9 1,455.4 1,468.4 1,462.2 1,467.8 1,469.5 1,467.4 38 Consumer 478.2 502.9 502.0 501.2 506.1 510.0 515.3 517.2 516.0 514.8 517.8 518.4 39 Credit cards and related plans. . n.a. n.a. n.a. n.a. n.a. n.a. n.a. 198.8 195.1 194.3 196.8 196.3 40 Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. 321.4 320.9 320.5 321.0 322.1 41 Security3 68.0 80.3 77.9 75.5 66.6 62.6 68.2 67.6 67.4 64.2 69.4 67.8 42 Other loans and leases 320.6 315.7 318.3 324.0 325.9 328.0 332.8 338.0 342.9 334.2 335.2 339.1 43 Interbank loans 190.8 194.4 196.9 200.5 198.8 195.1 198.6 209.8 219.4 206.1 207.1 208.2 44 Cash assets4 214.9 242.5 230.4 217.1 233.2 229.4 221.4 217.0 243.0 216.0 207.6 207.7 45 Other assets5 317.3 338.8 328.3 328.9 332.3 340.0 340.2 357.9 354.7 355.6 358.6 361.0 46 Total assets6 4,681.3 4,977.7 4,994.2 5,028.9 5,077.1 5,122.3 5,146.9 5,195.4 5,222.6 5,170.9 5,182.1 5,191.9 Liabilities 47 Deposits 3,068.4 3,167.8 3,173.3 3,195.4 3,255.5 3,234.0 3,268.7 3,314.3 3,362.8 3,304.4 3,292.3 3,289.7 48 Transaction 627.1 627.3 607.5 608.3 624.2 609.6 605.1 595.5 633.5 583.7 585.9 595.5 49 Nontransaction 2,441.3 2,540.5 2,565.8 2,587.0 2,631.3 2,624.4 2,663.6 2,718.8 2,729.3 2,720.7 2,706.4 2,694.2 50 Large time 421.3 480.3 486.8 488.9 496.0 504.3 519.2 534.4 527.8 531.6 534.4 536.4 51 Other 2,020.0 2,060.2 2,079.0 2,098.1 2,135.3 2,120.0 2,144.4 2,184.4 2,201.5 2,189.1 2,172.0 2,157.7 52 Borrowings 836.3 973.2 964.9 976.2 986.2 1,005.8 999.1 1,000.4 988.8 987.5 1,014.6 1,011.8 53 From banks in the U.S 307.5 344.5 351.9 357.7 358.0 366.5 357.2 362.6 362.4 356.6 362.4 365.4 54 From others 528.8 628.7 613.0 618.5 628.2 639.3 641.9 637.8 626.4 630.9 652.3 646.3 55 Net due to related foreign offices .... 139.9 195.5 219.1 216.2 202.5 233.3 232.0 235.9 226.5 238.0 230.3 244.0 56 Other liabilities 211.1 219.8 226.1 223.0 221.4 237.9 234.4 228.7 224.5 220.7 229.1 234.5 57 Total liabilities 4,255.7 4,556.2 4,583.4 4,610.8 4,665.7 4,711.0 4,734.1 4,779.3 4,802.6 4,750.5 4,766.4 4,780.0 58 Residual (assets less liabilities)7 425.6 421.5 410.8 418.1 411.5 411.3 412.7 416.1 420.1 420.3 415.7 411.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities All 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 2000 2000 Julyr Jan.r Feb.r Mar.r Apr/ Mayr Juner July July 5 July 12 July 19 July 26 Seasonally adjusted Assets 1 Bank credit 2,263.9 2,368.4 2393.5 2,420.0 2,434.0 2,470.7 2,484.4 2,494.5 2,482.4 2,482.2 2,494.6 2,506.3 2 Securities in bank credit 532.3 550.6 555.8 563.6 566.5 576.9 576.2 575.4 571.8 569.4 574.6 580.4 3 U.S. government securities 356.8 355.8 356.9 356.5 355.0 356.8 359.7 360.6 361.9 359.6 360.0 360.4 4 Trading account 22.0 20.5 21.5 20.5 21.3 23.5 22.7 24.3 23.9 21.6 23.2 26.1 Investment account 334.8 335.3 335.3 336.0 333.7 333.3 337.0 336.3 338.0 338.0 336.8 334.3 6 Other securities 175.6 194.8 199.0 207.2 211.5 220.1 216.6 214.7 209.9 209.8 214.6 220.0 7 Trading account 73.3 81.5 85.9 91.1 92.9 101.2 98.0 96.6 92.3 91.5 96.9 101.0 8 Investment account 102.3 113.3 113.1 116.1 118.6 118.9 118.5 118.1 117.6 118.3 117.7 119.0 9 State and local government . 23.3 24.4 24.5 24.7 25.1 25.4 25.6 26.1 26.1 26.2 26.3 26.0 10 Other 79.0 89.0 88.6 91.4 93.5 93.5 92.9 92.0 91.4 92.1 91.4 93.0 11 Loans and leases in bank credit2 ... 1,731.6 1,817.8 1,837.6 1,856.3 1,867.5 1,893.8 1,908.1 1,919.2 1,910.6 1,912.8 1,920.0 1,926.0 n Commercial and industrial 530.8 554.9 562.1 565.1 568.0 578.8 582.7 584.2 579.9 584.2 583.7 586.7 13 Bankers acceptances .9 1.0 1.0 1.0 1.1 1.1 1.0 .9 1.0 .9 .9 .9 14 Other 529.9 553.9 561.2 564.1 567.0 577.8 581.7 583.3 578.9 583.3 582.8 585.8 15 Real estate 681.2 747.5 751.2 759.3 774.4 787.5 793.2 801.0 796.4 800.9 803.2 799.8 16 Revolving home equity 64.0 66.4 67.6 69.2 72.2 73.9 74.3 75.2 75.2 74.8 74.9 75.4 17 Other 617.2 681.1 683.6 690.2 702.2 713.6 718.9 725.8 721.2 726.0 728.3 724.5 18 Consumer 218.8 217.9 220.9 222.6 225.8 226.7 227.4 226.8 227.5 226.6 225.9 227.2 19 Security3 64.7 70.1 69.6 70.2 59.3 57.8 62.1 63.2 62.7 59.7 65.3 64.1 20 Federal funds sold to and repurchase agreements with broker-dealers 47.9 49.8 47.0 48.9 38.2 38.9 43.9 44.6 43.8 41.7 46.1 45.6 71 Other 16.8 20.3 22.6 21.4 21.2 18.9 18.2 18.6 18.9 18.0 19.2 18.5 22 State and local government 11.3 11.9 12.0 12.2 12.3 12.3 12.2 12.2 12.2 12.1 12.1 12.4 23 Agricultural 7.8 9.1 9.3 9.3 9.4 9.5 9.5 9.4 9.4 9.4 9.4 9.5 24 Federal funds sold to and repurchase agreements with others 9.9 11.8 13.3 14.5 13.5 13.2 13.5 12.8 13.2 12.4 13.3 13.0 25 All other loans 96.0 76.8 81.7 85.6 85.6 87.6 84.7 84.0 85.7 82.5 81.3 86.9 26 Lease-financing receivables 111.2 117.8 117.5 117.4 119.0 120.4 122.8 125.5 123.5 125.0 125.8 126.3 27 Interbank loans 129.4 130.7 132.3 133.0 125.1 130.4 132.2 139.4 141.0 136.6 138.1 143.2 28 Federal funds sold to and repurchase agreements with commercial banks 77.7 58.7 65.8 68.8 66.6 71.6 70.6 73.2 76.6 71.9 70.3 77.7 ?9 Other 51.6 72.0 66.5 64.2 58.5 58.8 61.6 66.2 64.4 64.6 67.9 65.5 30 Cash assets4 141.7 147.7 148.8 145.7 154.3 148.9 145.1 143.4 147.6 145.2 139.5 145.6 31 Other assets5 223.0 236.5 222.1 219.8 218.9 222.8 224.2 245.4 234.1 241.9 249.7 253.6 32 Total assets6 2,722.9 2,848.6 2,8623 2£84.0 2,897.8 2,938.1 2,951.5 2^87.9 2^70.9 2^>71.1 2,987.1 3,013.9 Liabilities 33 Deposits 1,584.8 1,591.2 1,598.7 1,603.6 1,626.4 1,632.2 1,625.6 1,626.6 1,642.0 1,623.6 1,616.1 1,627.1 34 Transaction 332.0 313.5 312.0 311.5 310.1 313.9 306.6 300.7 306.1 294.7 298.1 312.4 35 Nontransaction 1,252.7 1,277.7 1,286.7 1,292.1 1,316.2 1,318.2 1,319.0 1,325.9 1,335.9 1,328.9 1,317.9 1,314.7 36 Large time 208.6 231.5 231.8 235.2 243.6 251.2 257.9 265.8 263.0 263.8 265.2 267.3 37 Other 1,044.1 1,046.2 1,054.9 1,057.0 1,072.6 1,067.0 1,061.0 1,060.0 1,072.9 1,065.1 1,052.7 1,047.5 38 Borrowings 566.4 631.0 629.1 638.8 647.8 649.2 654.1 676.5 664.3 668.3 685.3 685.2 39 From banks in the U.S 166.4 187.4 191.8 193.4 197.1 202.3 196.2 204.5 203.8 201.1 204.4 206.8 40 From others 399.9 443.6 437.3 445.3 450.7 446.9 457.9 472.0 460.5 467.2 480.9 478.4 41 Net due to related foreign offices 140.4 189.1 201.9 207.8 203.2 222.7 230.9 221.1 220.3 227.2 218.2 212.9 42 Other liabilities 157.3 162.1 165.7 164.5 163.4 177.2 176.3 179.9 175.1 171.4 180.4 186.3 43 Total liabilities 2,448.8 2,573.4 2,595.4 2,614.7 2,640.9 2,6813 2,687.0 2,704.0 2,701.7 2,690.5 2,700.0 2,711.5 44 Residual (assets less liabilities)7 274.1 275.2 266.9 269.3 256.9 256.9 264.5 283.8 269.2 280.6 287.1 302.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • October 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 2000 2000 Julyr Jan.r Feb.r Mar.r Apr/ Mayr Juner July July 5 July 12 July 19 July 26 Not seasonally adjusted Assets 45 Bank credit 2,243.4 2,391.2 2,404.8 2,421.4 2,437.3 2,464.0 2,472.3 2,475.5 2,477.2 2,463.2 2,473.3 2,476.3 46 Securities in bank credit 523.1 556.9 561.9 567.0 567.6 573.7 569.9 565.8 565.0 560.0 563.8 568.2 47 U.S. government securities 349.7 358.5 363.2 362.3 359.7 357.8 356.7 353.4 357.3 352.7 351.6 351.1 48 Trading account 20.4 21.1 22.5 21.4 21.5 22.0 22.5 22.6 22.7 19.9 21.3 23.3 49 Investment account 329.3 337.4 340.6 340.9 338.1 335.8 334.2 330.8 334.6 332.8 330.3 327.8 50 Mortgage-backed securities . . 212.6 217.1 221.2 222.1 220.5 217.9 216.5 211.2 217.1 215.6 210.6 206.3 51 Other 116.7 120.2 119.4 118.9 117.6 117.9 117.6 119.6 117.5 117.1 119.7 121.6 52 One year or less 22.9 23.4 27.2 29.0 28.8 30.5 30.3 30.2 30.3 29.4 30.2 30.3 53 One to five years 55.9 57.3 54.4 52.6 51.5 51.6 52.3 53.2 52.5 52.3 54.0 53.5 54 More than five years .. . 38.0 39.5 37.8 37.3 37.4 35.8 35.0 36.2 34.8 35.4 35.4 37.8 55 Other securities 173.4 198.4 198.8 204.6 207.9 215.9 213.3 212.5 207.7 207.3 212.2 217.1 56 Trading account 73.3 81.5 85.9 91.1 92.9 101.2 98.0 96.6 92.3 91.5 96.9 101.0 5/ Investment account 100.1 116.9 112.9 113.6 115.0 114.7 115.2 115.8 115.4 115.8 115.4 116.2 58 State and local government . . 22.8 24.6 24.7 24.8 25.1 25.3 25.5 25.6 25.4 25.6 25.7 25.6 59 Other 77.3 92.3 88.2 88.8 89.8 89.3 89.7 90.3 89.9 90.2 89.7 90.6 60 Loans and leases in bank credit2 . . 1,720.3 1,834.3 1,842.8 1,854.4 1,869.8 1,890.3 1,902.3 1,909.7 1,912.2 1,903.2 1,909.5 1,908.1 61 Commercial and industrial 528.6 551.9 561.5 567.4 574.7 583.3 583.3 581.9 582.2 581.3 581.6 581.5 62 Bankers acceptances .9 1.0 1.0 1.0 1.1 1.1 1.0 .9 1.0 .9 .9 .9 63 Other 527.7 550.9 560.5 566.4 573.6 582.3 582.3 580.9 581.2 580.4 580.6 580.6 64 Real estate 677.5 753.7 752.5 757.6 771.5 784.7 789.0 796.4 793.0 797.3 797.7 793.7 65 Revolving home equity 64.2 66.8 67.4 68.4 71.5 73.6 74.4 75.4 75.2 75.1 75.3 75.7 66 Other 371.6 420.3 416.1 418.1 425.0 433.4 436.2 442.9 441.1 444.7 444.1 439.2 6/ Commercial 241.6 266.6 269.0 271.2 275.0 277.7 278.3 278.0 276.7 277.5 278.3 278.7 68 Consumer 215.9 224.4 223.9 222.8 225.7 226.2 226.4 226.8 227.5 226.6 225.9 227.2 69 Credit cards and related plans. . n.a. n.a. n.a. n.a n.a n.a. n.a. 72.2 73.1 72.5 71.5 72.2 /O Other n.a. n.a. n.a. n.a. n.a n.a. n.a 154.6 154.4 154.1 154.4 154.9 n Security1 61.9 73.8 71.4 69.0 59.8 56.4 61.7 60.5 60.2 57.1 62.5 60.7 12 Federal funds sold to and repurchase agreements with broker-dealers .... 45.0 54.2 49.6 47.3 38.2 36.8 42.5 41.8 40.8 39.0 43.6 42.1 73 Other 16.9 19.6 21.8 21.7 21.7 19.6 19.1 18.7 19.5 18.1 18.8 18.7 74 State and local government .... 11.3 11.8 11.9 12.1 12.2 12.2 12.1 12.1 12.1 12.0 12.1 12.4 75 Agricultural 7.9 9.1 9.1 9.1 9.2 9.4 9.5 9.6 9.6 9.5 9.6 9.6 76 Federal funds sold to and repurchase agreements with others 9.9 11.8 13.3 14.5 13.5 13.2 13.5 12.8 13.2 12.4 13.3 13.0 77 All other loans 96.8 77.8 79.9 83.1 83.4 84.5 84.3 84.8 91.0 82.4 82.0 84.7 /8 Lease-financing receivables .... 110.5 120.0 119.4 118.9 119.7 120.5 122.7 124.8 123.4 124.5 124.9 125.2 /9 Interbank loans 129.0 131.4 132.6 135.7 129.9 133.8 135.0 139.5 148.7 136.3 138.8 113388..66 80 Federal funds sold to and repurchase agreements with commercial banks 76.8 60.2 65.4 70.8 69.3 72.2 71.1 72.5 82.2 70.8 69.7 73.1 81 Other 52.3 71.2 67.1 64.8 60.6 61.5 63.8 67.0 66.5 65.5 69.1 65.5 82 Cash assets4 135.5 158.2 150.4 140.3 154.2 148.1 142.6 137.1 155.0 137.6 131.1 129.8 83 Other assets5 223.2 235.6 223.4 221.9 222.2 227.3 228.1 244.8 238.5 241.9 248.3 249.4 84 Total assets6 2,696.1 2,882.0 2,876.8 2,884.9 2^09.4 2,938.5 2,943.4 2,962.2 2,985.2 2,944.4 2,956.8 2,959.5 Liabilities 85 Deposits 1,574.2 1,602.6 1,599.0 1,603.4 1.636.1 1,617.4 1,620.7 1,616.0 1,660.4 1,614.9 1,602.3 1,593.4 86 Transaction 327.9 323.2 308.5 306.9 317.3 307.5 305.4 296.9 323.6 289.3 291.7 294.2 87 Nontransaction 1,246.3 1,279.4 1,290.6 1,296.5 1,318.8 1,309.9 1,315.3 1,319.1 1,336.8 1,325.6 1,310.6 1,299.1 88 Large time 202.0 237.1 238.4 236.8 241.2 245.9 252.5 257.7 255.1 256.4 256.8 258.2 89 Other 1,044.3 1,042.3 1,052.2 1,059.6 1,077.6 1,063.9 1,062.8 1,061.4 1,081.7 1,069.2 1,053.8 1,040.9 90 Borrowings 552.5 651.2 637.7 640.7 650.6 657.3 655.2 660.9 654.0 652.6 673.0 666.8 91 From banks in the U.S 161.1 191.9 196.1 197.1 201.1 203.5 195.4 199.1 201.2 196.2 199.0 198.8 92 From nonbanks in the U.S 391.4 459.3 441.6 443.6 449.5 453.8 459.8 461.9 452.8 456.4 474.0 468.0 93 Net due to related foreign offices . . . 135.7 190.4 213.9 210.8 197.2 227.3 222.9 213.5 204.9 212.6 208.7 222.9 94 Other liabilities 157.3 162.1 165.7 164.5 163.4 177.2 176.3 179.9 175.1 171.4 180.4 186.3 95 Total liabilities 2,419.6 2,606.2 2,6163 2,619.4 2,6473 2,679.2 2,675.1 2,670.4 2,6943 2,651.5 2,664.4 2,6693 96 Residual (assets less liabilities)7 276.4 275.7 260.4 265.4 262.0 259.3 268.3 291.8 290.9 292.9 292.4 290.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 2000 2000 Julyr Jan.r Feb.r Mar.r Apr.r May1 Juner July July 5 July 12 July 19 July 26 Seasonally adjusted Assets 1 Bank credit 1,772.3 1,875.8 1,905.4 1,926.3 1,931.3 1,946.9 1,969.1 1,994.5 1,987.7 1,988.1 1,995.9 1,997.8 2 Securities in bank credit 506.4 516.0 521.6 521.4 520.6 521.9 522.9 530.5 528.2 529.5 531.8 530.9 3 U.S. government securities 372.1 375.8 382.4 381.2 379.7 379.1 378.5 379.2 382.0 380.2 381.0 377.0 4 Other securities 134.2 140.1 139.2 140.3 140.9 142.8 144.4 151.3 146.2 149.3 150.8 153.9 5 Loans and leases in bank credit2 1,265.9 1,359.8 1,383.8 1,404.9 1,410.7 1,425.0 1,446.1 1,464.0 1,459.5 1,458.6 1,464.1 1,467.0 6 Commercial and industrial 239.6 260.3 264.6 269.5 271.9 275.1 279.4 286.1 285.1 285.2 285.7 287.0 7 Real estate 674.2 728.0 746.2 760.1 761.9 771.6 781.2 788.0 786.4 786.1 787.7 789.2 8 Revolving home equity 35.1 38.0 38.8 39.7 40.4 41.2 41.4 41.8 41.7 41.7 41.8 42.0 9 Other 639.1 690.0 707.4 720.4 721.5 730.4 739.8 746.2 744.7 744.4 745.9 747.3 10 Consumer 263.2 277.8 279.1 280.2 281.3 283.8 289.0 290.4 288.5 288.2 291.9 291.2 11 Security3 6.1 6.5 6.5 6.5 6.8 6.2 6.6 7.1 7.2 7.1 7.0 7.0 12 Other loans and leases 82.8 87.2 87.4 88.6 88.7 88.3 90.0 92.3 92.3 92.1 91.8 92.5 13 Interbank loans 65.3 62.9 63.2 62.0 67.4 64.9 66.9 74.4 70.2 72.7 73.6 78.7 14 Cash assets4 80.5 82.9 80.4 78.8 79.6 81.4 79.4 81.3 82.1 80.2 79.4 83.2 15 Other assets5 92.7 105.2 105.9 107.1 109.2 113.5 112.2 111.3 110.2 112.7 110.7 111.6 16 Total assets6 1,987.9 2,102.6 2,1305 2,149.5 2,162.6 2,181.5 2,201.8 2,234.9 2,223.7 2^273 2,233.0 2,244.8 Liabilities 17 Deposits 1,499.2 1,570.2 1,582.8 1,594.0 1,612.2 1,617.3 1,650.7 1,703.5 1,693.2 1,693.7 1,698.8 1,713.7 18 Transaction 301.8 302.5 302.5 303.7 305.1 304.6 299.2 301.1 299.5 296.9 299.9 313.0 19 Nontransaction 1,197.4 1,267.7 1,280.3 1,290.3 1,307.2 1,312.7 1,351.5 1,402.4 1,393.8 1,396.9 1,398.9 1,400.7 20 Large time 219.3 243.2 248.4 252.1 254.8 258.4 266.7 276.7 272.7 275.2 277.6 278.2 21 Other 978.1 1,024.5 1,031.9 1,038.2 1,052.3 1,054.3 1,084.8 1,125.6 1,121.0 1,121.6 1,121.3 1,122.5 22 Borrowings 282.4 323.6 331.5 341.8 339.3 347.1 342.0 337.1 333.6 334.1 339.3 339.5 23 From banks in the U.S 145.1 153.2 158.5 164.3 159.4 163.5 160.1 161.2 159.1 158.8 161.1 162.8 24 From others 137.3 170.4 173.0 177.5 179.9 183.6 182.0 175.9 174.5 175.3 178.2 176.7 25 Net due to related foreign offices .... 4.3 5.1 5.3 5.4 5.3 6.0 9.1 22.4 21.7 25.4 21.7 21.1 26 Other liabilities 54.3 57.9 60.0 58.2 57.3 60.7 58.3 49.6 50.3 50.2 49.6 48.8 27 Total liabilities 1,840.1 1,956.8 1,979.5 1,9993 2,0142 2,031.2 2,060.1 2,112.6 2,098.8 2,103.4 2,109.4 2,123.0 28 Residual (assets less liabilities)7 147.7 145.8 150.9 150.2 148.4 150.4 141.7 122.4 124.9 123.9 123.5 121.7 Not seasonally adjusted Assets 29 Bank credit 1,773.0 1,869.4 1,892.6 1,920.1 1,934.6 1,953.8 1,974.7 1,996.3 1,988.9 1,991.1 1,996.9 1,999.9 30 Securities in bank credit 505.6 514.2 518.3 522.5 525.1 525.7 524.8 529.6 526.9 529.4 530.3 530.1 31 US. government securities 371.9 374.3 379.9 382.5 383.0 382.4 380.8 379.0 381.6 380.8 380.5 377.0 32 Other securities 133.7 140.0 138.4 140.0 142.1 143.4 144.1 150.6 145.4 148.6 149.9 153.2 33 Loans and leases in bank credit2 1,267.4 1,355.1 1,374.3 1,397.7 1,409.6 1,428.0 1,449.9 1,466.7 1,462.0 1,461.7 1,466.5 1,469.8 34 Commercial and industrial 239.6 259.4 263.4 269.6 274.1 277.7 281.4 286.2 286.8 286.0 285.7 286.1 35 Real estate 675.2 725.6 741.5 756.8 760.5 771.9 782.2 789.1 785.9 787.1 788.6 791.2 36 Revolving home equity 35.0 37.9 38.6 39.4 40.3 41.1 41.3 41.6 41.4 41.5 41.5 41.8 37 Other 640.3 687.7 702.9 717.4 720.2 730.8 740.9 747.4 744.5 745.6 747.1 749.4 38 Consumer 262.3 278.4 278.1 278.4 280.4 283.8 288.9 290.4 288.5 288.2 291.9 291.2 39 Credit cards and related plans. . n.a. n.a. n.a. n.a n.a. n.a. n.a. 123.6 121.9 121.8 125.4 124.0 40 Other n.a n.a. n.a. n.a n.a n.a. n.a 166.8 166.6 166.4 166.5 167.2 41 Security3 6.1 6.5 6.5 6.5 6.8 6.2 6.6 n.a. 7.2 7.1 7.0 7.0 42 Other loans and leases 84.2 85.2 84.7 86.3 87.8 88.3 90.8 93.9 93.6 93.3 93.4 94.2 43 Interbank loans 61.8 63.0 64.3 64.8 69.0 61.3 63.7 70.3 70.7 69.8 68.2 69.6 44 Cash assets4 79.4 84.3 80.0 76.7 78.9 81.3 78.7 79.9 88.0 78.3 76.5 77.9 45 Other assets5 94.1 103.2 104.9 107.0 110.1 112.6 112.1 113.2 116.2 113.7 110.3 111.5 46 Total assets6 1,985.2 2,095.7 2,117.4 2,144.0 2,167.8 2,183.8 2,203.5 2,233.2 2,237.5 2,226.5 2,2253 2,232.4 Liabilities 47 Deposits 1,494.2 1,565.2 1,574.3 1,592.0 1,619.4 1,616.6 1,648.0 1,698.2 1,702.4 1,689.5 1,690.0 1,696.4 48 Transaction 299.2 304.1 299.0 301.4 306.9 302.1 299.7 298.5 309.9 294.4 294.2 301.3 49 Nontransaction 1,195.0 1,261.1 1,275.2 1,290.6 1,312.5 1,314.5 1,348.3 1,399.7 1,392.5 1,395.1 1,395.8 1,395.1 50 Large time 219.3 243.2 248.4 252.1 254.8 258.4 266.7 276.7 272.7 275.2 277.6 278.2 51 Other 975.7 1,017.9 1,026.8 1,038.5 1,057.7 1,056.1 1,081.6 1,123.0 1,119.8 1,119.9 1,118.2 1,116.8 52 Borrowings 283.8 322.0 327.2 335.4 335.6 348.5 343.9 339.5 334.8 334.9 341.7 345.0 53 From banks in the U.S 146.4 152.6 155.8 160.6 156.9 162.9 161.8 163.5 161.2 160.4 163.4 166.7 54 From others 137.4 169.4 171.4 174.8 178.7 185.5 182.1 176.0 173.6 174.5 178.3 178.4 55 Net due to related foreign offices .... 4.3 5.1 5.3 5.4 5.3 6.0 9.1 22.4 21.7 25.4 21.7 21.1 56 Other liabilities 53.8 57.6 60.3 58.5 58.0 60.7 58.0 48.8 49.3 49.3 48.7 48.2 57 Total liabilities 1,836.1 1,950.0 1,967.1 1,9913 2,0183 2,031.8 2,059.1 2,108.9 2,108.2 2,099.1 2,102.0 2,110.7 58 Residual (assets less liabilities)7 149.1 145.8 150.4 152.7 149.4 152.0 144.4 124.3 129.2 127.4 123.3 121.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • October 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 2000 2000 Julyr Jan.r Feb/ Mar.r Apr.r Mayr Juner July July 5 July 12 July 19 July 26 Seasonally adjusted Assets 1 Bank credit 527.5 548.1 540.3 543.3 566.9 580.4 573.0 573.2 571.8 570.7 574.8 570.1 2 Securities in bank credit 193.8 201.2 192.2 195.4 201.7 207.8 202.6 202.4 200.4 198.3 201.3 203.3 3 U.S. government securities 86.4 81.1 76.0 78.1 79.6 79.7 78.9 79.7 79.9 78.5 78.1 80.2 4 Other securities 107.4 120.1 116.2 117.4 122.1 128.1 123.7 122.7 120.5 119.7 123.2 123.1 5 Loans and leases in bank credit2 ... 333.7 346.9 348.2 347.9 365.2 372.6 370.4 370.8 371.4 372.5 373.6 366.8 6 Commercial and industrial 194.5 194.6 195.7 196.3 199.2 205.1 205.2 203.6 202.8 203.7 203.5 203.0 7 Real estate 18.4 17.4 17.7 18.0 18.3 18.6 18.9 18.7 18.9 18.8 18.7 18.4 8 Security3 52.7 66.8 66.8 66.5 78.0 81.0 81.0 81.5 84.3 83.2 84.4 78.0 9 Other loans and leases 68.0 68.0 68.0 67.1 69.7 68.0 65.3 66.9 65.5 66.7 67.0 67.3 10 Interbank loans 27.9 29.0 32.7 28.6 29.4 31.8 28.6 26.2 27.9 27.3 25.5 29.6 11 Cash assets4 37.6 52.2 50.7 47.6 47.4 43.9 44.6 45.2 44.7 44.9 43.4 45.8 12 Other assets5 33.0 38.7 38.4 39.2 40.0 41.1 43.5 43.0 45.4 42.0 43.2 42.5 13 Total assets6 625.6 667.6 661.8 658.4 683/4 696.9 689.5 6873 689.5 684.7 686.6 687.7 Liabilities 1 1 4 5 De T p r o a s n it s s a ction 31 1 2 0 . . 9 8 37 1 9 0 . . 0 8 37171..20 37 1 8 1 . . 0 1 38 1 7 0 . . 5 9 38 1 2 1 . . 1 2 38 1 2 1 . . 5 4 38 1 6 1 . . 8 4 38 1 4 2 . . 7 2 37 1 8 1 . . 5 2 38 1 9 1 . . 8 7 39 1 1 1 . . 4 1 16 Nontransaction 302.1 368.2 366.2 366.9 376.6 370.9 371.1 375.4 372.6 367.3 378.0 380.3 17 Borrowings 174.8 179.4 175.4 177.1 199.6 204.4 205.2 205.5 213.5 201.7 205.5 207.9 18 From banks in the U.S 24.3 19.7 18.4 19.7 20.9 17.9 18.9 20.8 26.4 19.8 17.5 24.1 19 From others 150.6 159.6 156.9 157.4 178.7 186.5 186.3 184.7 187.1 181.8 188.0 183.8 20 Net due to related foreign offices 70.8 35.6 27.0 20.3 15.4 21.1 19.5 17.7 18.7 26.9 13.4 6.3 21 Other liabilities 63.0 70.4 72.7 71.2 73.4 79.9 72.9 70.2 70.9 69.1 71.2 69.2 22 Total Uabilities 621.5 664.4 6512 646.6 675.9 687.6 680.1 680.2 687.9 676.1 679.8 674.8 23 Residual (assets less liabilities)7 4.1 3.2 9.6 11.8 7.5 9.4 9.4 7.1 1.6 8.6 6.7 12.9 Not seasonally adjusted Assets 24 Bank credit 519.2 555.9 544.6 541.9 560.7 572.1 563.6 562.8 563.1 559.3 564.7 558.8 25 Securities in bank credit 188.8 205.1 193.4 192.5 198.2 204.9 196.8 195.8 194.3 191.2 194.2 197.2 26 U.S. government securities 85.5 81.7 76.1 77.9 80.3 80.7 78.9 78.7 79.8 77.3 77.4 79.1 27 Trading account 19.0 7.9 7.3 9.3 11.8 12.3 11.8 11.8 12.8 9.9 10.8 12.7 28 Investment account 66.5 73.8 68.8 68.6 68.6 68.4 67.1 66.8 67.0 67.4 66.5 66.3 29 Other securities 103.3 123.5 117.3 114.6 117.8 124.2 117.9 117.1 114.5 113.9 116.8 118.1 30 Trading account 60.8 78.2 74.0 71.3 73.9 80.5 75.0 74.3 71.9 71.4 74.2 74.8 31 Investment account 42.4 45.3 43.4 43.2 43.9 43.7 42.9 42.9 42.6 42.5 42.6 43.3 32 Loans and leases in bank credit2 . .. 330.4 350.8 351.1 349.4 362.5 367.2 366.7 367.0 368.8 368.2 370.5 361.6 33 Commercial and industrial 192.3 196.1 198.2 198.0 197.5 200.8 201.9 201.2 200.3 200.9 201.6 200.3 34 Real estate 18.2 17.6 18.0 18.1 18.2 18.5 18.7 18.5 18.7 18.6 18.5 18.2 35 Security3 52.4 67.2 66.6 66.8 78.0 80.8 81.3 81.3 84.3 82.5 84.1 77.4 36 Other loans and leases 67.4 69.8 68.4 66.6 68.9 67.1 64.7 66.1 65.5 66.2 66.3 65.6 37 Interbank loans 27.9 29.0 32.7 28.6 29.4 31.8 28.6 26.2 27.9 27.3 25.5 29.6 38 Cash assets4 36.3 54.3 50.1 46.6 45.3 42.8 43.9 43.6 43.7 43.2 41.5 43.8 39 Other assets5 31.5 40.1 40.2 40.5 39.3 40.5 41.3 41.0 42.7 40.2 41.1 40.4 40 Total assets6 614.6 679.0 6673 6573 674.4 686.9 677.0 6732 677.0 669.8 672.4 672A Liabilities 4 4 2 1 De T p r o a s n it s s a ction 30 1 6 0 . . 7 7 38 1 5 0 . . 8 9 38 1 4 0 . . 1 9 38 1 4 0 . . 1 9 38 1 8 0 . . 6 5 38 1 2 0 . . 9 7 37 1 8 1 . . 2 1 37 1 8 1 . . 1 3 37 1 3 2 . . 6 4 37101..00 38 1 1 1 . . 3 6 38 1 4 0 . . 2 9 43 Nontransaction 296.0 374.9 373.3 373.2 378.1 372.2 367.1 366.8 361.1 359.0 369.8 373.2 44 Borrowings 174.8 179.4 175.4 177.1 199.6 204.4 205.2 205.5 213.5 201.7 205.5 207.9 45 From banks in the U.S 24.3 19.7 18.4 19.7 20.9 17.9 18.9 20.8 26.4 19.8 17.5 24.1 46 From others 150.6 159.6 156.9 157.4 178.7 186.5 186.3 184.7 187.1 181.8 188.0 183.8 47 Net due to related foreign offices .... 69.3 37.9 29.3 20.8 10.7 17.0 18.1 16.8 16.8 26.2 12.0 8.3 48 Other liabilities 61.7 72.1 74.7 71.5 71.4 78.4 71.4 68.5 68.9 67.6 69.2 67.8 49 Total liabiUties 612J 6152 663.5 653.6 670.4 682.7 6723 668.9 672.7 665.5 668.0 668.2 50 Residual (assets less liabilities)7 2.0 3.8 3.8 3.8 4.0 4.2 4.2 4.3 4.3 4.3 4.4 4.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Julyr Jan.r Feb.r Mar.r Apr/ Mayr Juner July July 5 July 12 July 19 July 26 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 51 Revaluation gains on off-balance-sheet items8 54.2 62.4 64.5 65.7 65.1 72.4 66.2 62.6 58.8 59.8 63.3 65.4 52 Revaluation losses on off-balancesheet items8 56.2 61.7 64.2 64.0 65.0 72.9 66.4 62.4 58.2 59.3 62.9 65.1 53 Mortage-backed securities9 242.5 252.0 251.3 252.6 254.4 251.5 248.9 241.4 246.7 245.8 240.1 237.1 54 Pass-through 167.5 174.8 174.4 175.9 178.8 177.2 176.9 172.4 176.8 175.9 171.5 169.0 55 CMO, REMIC, and other 75.0 77.3 76.9 76.7 75.6 74.4 72.0 68.9 69.9 70.0 68.6 68.2 56 Net unrealized gains (losses) on available-for-sale securities10 .... -6.7 -13.2 -10.8 -9.6 -16.3 -16.5 -15.0 -10.8 -10.1 -10.2 -10.4 -11.6 57 Off-shore credit to U.S. residents" .... 36.3 23.2 23.6 24.1 24.4 23.5 22.4 22.2 22.3 22.3 22.2 22.0 58 Securitized consumers loans12 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 87.3 86.7 86.5 87.9 87.7 59 Credit cards and related plans n.a n.a. n.a. n.a. n.a n.a n.a. 72.4 71.4 71.4 72.9 72.9 60 Other n.a. n.a n.a. n.a. n.a. n.a. n.a. 15.0 15.3 15.1 15.0 14.9 61 Securitized business loans12 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a. n.a Small domestically chartered commercial banks, adjusted for mergers 62 Mortage-backed securities9 207.2 201.6 204.6 206.4 207.6 207.0 205.7 205.1 205.5 206.3 203.8 204.6 63 Securitized consumer loans12 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 220.9 219.5 219.9 220.6 222.3 64 Credit cards and related plans n.a. n.a. n.a. n.a. n.a. n.a. n.a. 211.2 211.2 210.8 210.3 212.0 65 Other n.a. n.a. n.a. n.a. n.a. n.a. n.a. 9.7 8.3 9.1 10.3 10.3 Foreign-related institutions 66 Revaluation gains on off-balancesheet items8 37.5 39.8 40.1 39.2 39.2 44.6 38.6 35.7 34.8 35.0 36.7 34.5 67 Revaluation losses on off-balancesheet items8 36.2 39.1 40.1 38.3 38.6 44.5 38.0 35.7 34.6 35.1 36.8 34.7 68 Securitized business loans12 n.a. n.a. n.a. n.a n.a n.a. n.a. n.a n.a n.a. n.a. n.a. 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 elfects. 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 • October 2000 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING A. Commercial Paper Millions of dollars, seasonally adjusted, end of period Year ending December 2000 IItteemm 1995 1996 1997 1998 1999 Jan. Feb. Mar. Apr. May June 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,407,789 1,428,605 1,449,143 1,465,697 1,497,712 1,516,205 Financial companies' 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 821,870 835,140 849,198 860,843 884,299 884,578 3 Directly placed paper, total3 210,829 229,662 252,536 322,030 337,240 299,599 298,603 302,885 294,328 302,305 300,718 4 Nonfinancial companies4 188,260 184,563 200,857 227,132 279,140 286,319 294,863 297,060 310,526 311,109 330,909 1. Institutions engaged primarily in commercial, savings, and mortgage banking; sales, 3. As reported by financial companies that place their paper directly with investors. personal, and mortgage financing; factoring, finance leasing, and other business lending; 4. Includes public utilities and firms engaged primarily in such activities as communicainsurance underwriting; and other investment activities. tions, construction, manufacturing, mining, wholesale and retail trade, transportation, and 2. Includes all financial-company paper sold by dealers in the open market. services. B. Bankers Dollar Acceptances1 Millions of dollars, not seasonally adjusted, year ending September2 Item 1996 1997 1998 1999 1 Total amount of reporting banks' acceptances in existence 25,832 25,774 14,363 10,094 2 Amount of other banks' eligible acceptances held by reporting banks 709 736 523 461 3 Amount of own eligible acceptances held by reporting banks (included in item 1) 7,770 6,862 4,884 4,261 4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries (included in item 1) 9,361 10,467 5,413 3,498 1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United 2. Data on bankers dollar acceptances are gathered from approximately 55 institutions; States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks; includes U.S. chartered commericM banks (domestic and foreign offices), U.S. branches and that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal agencies of foreign banks, and Edge and agreement corporations. The reporting group is Reserve Act (12 U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Date of change Rate Period Av r e a r t a e ge Period Av r e a r t a e ge Period Av r e a r t a e ge 1997—Jan. 1 8.25 1997 8.44 1998—Jan 8.50 1999—Jan 7.75 Mar. 26 8.50 1998 8.35 Feb 8.50 Feb 7.75 1999 8.00 Mar 8.50 Mar 7.75 1998—Sept. 30 8.25 Apr 8.50 Apr. 7.75 Oct. 16 8.00 1997--Jan 8.25 May 8.50 May 7.75 Nov. 18 7.75 Feb 8.25 June 8.50 June 7.75 Mar 8.30 July 8.50 July 8.00 1999—July 1 8.00 Apr 8.50 Aug 8.50 Aug 8.06 Aug. 25 8.25 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 Aug 8.50 Dec 7.75 Dec 8.50 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 Aug 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 Apr. May June July June 30 July 7 July 14 July 21 July 28 MONEY MARKET INSTRUMENTS 1 Federal funds1-2'3 5.46 5.35 4.97 6.02 6.27 6.53 6.54 6.53 6.85 6.44 6.50 6.50 2 Discount window borrowing2'4 5.00 4.92 4.62 5.50 5.71 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Commercial paper3,5,6 Nonfinancial 3 1-month 5.57 5.40 5.09 6.02 6.40 6.53 6.49 6.58 6.52 6.49 6.49 6.47 4 2-month 5.57 5.38 5.14 6.06 6.47 6.55 6.50 6.56 6.52 6.50 6.49 6.48 5 3-month 5.56 5.34 5.18 6.11 6.54 6.57 6.52 6.58 6.53 6.51 6.52 6.51 Financial 6 1-month 5.59 5.42 5.11 6.03 6.41 6.53 6.50 6.56 6.53 6.50 6.49 6.49 7 2-month 5.59 5.40 5.16 6.07 6.50 6.56 6.51 6.58 6.53 6.50 6.51 6.50 8 3-month 5.60 5.37 5.22 6.15 6.57 6.59 6.54 6.59 6.55 6.53 6.53 6.53 Commercial paper (historical)^,5,7 9 1-month 5.54 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 3-month 5.58 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 6-month 5.62 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Finance paper, directly placed (historical)3,5,8 12 1-month 5.44 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 3-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 6-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Bankers acceptances3,5,9 15 3-month 5.54 5.39 5.24 6.19 6.60 6.63 n.a. 6.62 n.a. n.a. n.a. n.a. 16 6-month 5.57 5.30 5.30 6.32 6.76 6.74 n.a. 6.71 n.a. n.a. n.a. n.a. Certificates of deposit, secondary markeP'W 17 1-month 5.54 5.49 5.19 6.10 6.49 6.60 6.57 6.63 6.58 6.56 66..5577 66..5577 18 3-month 5.62 5.47 5.33 6.28 6.71 6.73 6.67 6.73 6.69 6.66 6.67 6.66 19 6-month 5.73 5.44 5.46 6.50 6.94 6.91 6.86 6.92 6.89 6.84 6.88 6.83 20 Eurodollar deposits, 3-month3,11 5.61 5.45 5.31 6.25 6.70 6.73 6.67 6.71 6.69 6.66 6.68 6.66 U.S. Treasury bills Secondary market3,5 21 3-month 5.06 4.78 4.64 5.66 5.79 5.69 5.96 5.67 5.82 5.96 5.98 6.01 22 6-month 5.18 4.83 4.75 5.81 6.10 5.97 6.00 5.95 5.94 5.99 6.03 6.02 23 1-year 5.32 4.80 4.81 5.80 5.94 5.83 5.75 5.79 5.74 5.76 5.77 5.73 Auction high3,5,12 24 3-month 5.07 4.81 4.66 5.67 5.92 5.74 n.a. 5.68 n.a. n.a. n.a. n.a. 25 6-month 5.18 4.85 4.76 5.82 6.12 6.02 n.a. 5.96 n.a. n.a. n.a. n.a. 26 1-year 5.36 4.85 4.78 n.a. n.a. 6.00 n.a. n.a. n.a. n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 27 1-year 5.63 5.05 5.08 6.15 6.33 6.17 6.08 6.13 6.08 6.09 6.11 6.06 28 2-year 5.99 5.13 5.43 6.40 6.81 6.48 6.34 6.44 6.31 6.34 6.40 6.31 29 3-year 6.10 5.14 5.49 6.36 6.77 6.43 6.28 6.37 6.25 6.28 6.34 6.25 30 5-year 6.22 5.15 5.55 6.26 6.69 6.30 6.18 6.25 6.13 6.18 6.24 6.16 31 7-year 6.33 5.28 5.79 6.27 6.69 6.33 6.22 6.30 6.20 6.23 6.28 6.19 37 10-year 6.35 5.26 5.65 5.99 6.44 6.10 6.05 6.08 6.01 6.06 6.10 6.04 33 20-year 6.69 5.72 6.20 6.18 6.55 6.28 6.20 6.30 6.23 6.22 6.23 6.13 34 30-year 6.61 5.58 5.87 5.85 6.15 5.93 5.85 5.94 5.88 5.87 5.87 5.80 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 6.14 6.49 6.23 n.a. 6.24 n.a. n.a. n.a. n.a. STATE AND LOCAL NOTES AND BONDS Moody's series14 36 Aaa 5.32 4.93 5.28 5.60 5.87 5.69 5.53 5.65 5.61 5.50 5.52 5.50 37 Baa 5.50 5.14 5.70 6.18 6.53 6.24 6.09 6.17 6.15 6.09 6.07 6.03 38 Bond Buyer series15 5.52 5.09 5.43 5.75 6.00 5.80 5.63 5.77 5.71 5.61 5.60 5.58 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.98 8.41 8.05 7.98 8.08 8.02 8.00 7.99 7.93 Rating group 40 7.27 6.53 7.05 7.64 7.99 7.67 7.65 7.73 7.68 7.65 7.67 77..6600 41 Aa 7.48 6.80 7.36 7.82 8.24 7.87 7.81 7.88 7.85 7.82 7.82 7.75 47 A 7.54 6.93 7.53 8.07 8.49 8.18 8.11 8.22 8.15 8.14 8.13 8.05 43 Baa 7.87 7.22 7.88 8.40 8.90 8.48 8.35 8.48 8.40 8.36 8.35 8.29 MEMO Dividend-price ratio17 44 Common stocks 1.77 1.49 1.25 1.14 1.17 1.12 1.10 1.13 1.13 1.08 1.09 1.11 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 9. Representative closing yields for acceptances of the highest-rated money center banks. G.13 (415) monthly statistical releases. For ordering address, see inside front cover. 10. An average of dealer offering rates on nationally traded certificates of deposit. 1. The daily effective federal funds rate is a weighted average of rates on trades through 11. Bid rates for Eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for New York brokers. indication purposes only. 2. Weekly figures are averages of seven calendar days ending on Wednesday of the 12. Auction date for daily data; weekly and monthly averages computed on an issue-date current week; monthly figures include each calendar day in the month. basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before 3. Annualized using a 360-day year or bank interest. that, they are weighted average yields from multiple-price auctions. 4. Rate for the Federal Reserve Bank of New York. 13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart- 5. Quoted on a discount basis. ment of the Treasury. 6. Interest rates interpolated from data on certain commercial paper trades settled by the 14. General obligation bonds based on Thursday figures; Moody's Investors Service. Depository Trust Company. The trades represent sales of commercial paper by dealers or 15. State and local government general obligation bonds maturing in twenty years are used direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' (http://www.federalreserve.gov/releases/cp) for more information. A1 rating. Based on Thursday figures. 7. An average of offering rates on commercial paper for firms whose bond rating is AA or 16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected the equivalent. Series ended August 29, 1997. long-term bonds. 8. An average of offering rates on paper directly placed by finance companies. Series 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in ended August 29, 1997. the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • October 2000 1.36 STOCK MARKET Selected Statistics 1999 2000 IInnddiiccaattoorr 11999977 11999988 11999999 Nov. Dec. Jan. Feb. Mar. Apr. May June July Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 634.22 638.17 634.07 606.03 622.28 646.82 640.07 649.61 653.27 2 Industrial 574.97 684.35 775.29 791.41 808.28 814.73 767.08 790.35 822.76 814.75 819.54 825.28 3 Transportation 415.08 468.61 491.62 474.78 461.04 456.35 398.69 384.39 406.14 411.50 395.09 410.67 4 Utility 143.87 190.52 284.82 502.58 511.78 485.82 482.30 509.59 502.78 487.17 501.93 484.19 5 Finance 424.84 516.65 530.97 539.20 510.99 495.23 471.65 491.29 524.05 523.22 544.51 556.32 6 Standard & Poor's Corporation (1941-43 = 10)1 873.43 1,085.50 1,327.33 1.390.99 1,428.68 1,425.59 1,388.88 1,442.21 1,461.36 1,418.48 1,461.96 1,473.00 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 819.60 838.24 878.73 910.00 1,014.03 918.77 917.76 934.90 930.66 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 866,281 884,141 1,058,021 1,032,791 1,124,097 1,047,960 893,896 971,137 941,694 9 American Stock Exchange 24,390 28,870 32,629 33.330 41,076 47,530 51,134 59,449 63,054 44,146 42,490 36,486 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers: l,361,600r l,685,820r 2,130,152r 206,280 228,530 243,490 265,210 278,530 251,700 240,660 247,200 244,970 Free credit balances at brokers4 11 Margin accounts5 . ..' 293,000' 405,180r 532,500r 49,480 55,130 57,800 56,470 65,020 65,930 66,170 64,970 71,730 12 Cash accounts 517,030r 633,725r 757,345r 68,200 79,070 75,760 79,700 85,530 76,190 73,500 74,140 74,970 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 Feb. Mar. Apr. May June July U.S. budget1 1 Receipts, total 1,579,292 1,721,798 1,827,454 108,675 135,582 295,148 146,002 214,875 134,074 2 On-budget 1,187,302 1,305,999 1,382,986 71,090 94,586 244,662 107,469 168,319 97,681 3 Off-budget 391,990 415,799 444,468 37,585 40,996 50,486 38,533 46,556 36,393 4 Outlays, total 1,601,235 1,652,552 1,702,940 150,409 170,962 135,651 149,612 158,987 129,317 5 On-budget 1,290,609 1,335,948 1,382,262 118,340 137,864 105,742 114,829 152,308 99,708 6 Off-budget 310,626 316,604 320,778 32,069 33,099 29,909 34,783 6,679 29,609 7 Surplus or deficit (—), total -21,943 69,246 124,414 -41,734 -35,380 159,497 -3,611 55,888 4,757 8 On-budget -103,307 -29,949 724 -47,250 -43,278 138,920 -7,360 16,011 -2,027 9 Off-budget 81,364 99,195 123,690 5,516 7,897 20,577 3,750 39,877 6,784 Source of financing (total) 10 Borrowing from the public 38,171 -51,211 -88,674 17,131 39,746 -112,667 -53,755 -23,131 -31,307 11 Operating cash (decrease, or increase (—)) 604 4,743 -17,580 40,773 -22,808 -47,787 69,470 -34,350 23,384 12 Other2 -16,832 -22,778 -18,160 -16,170 18,442 957 -12,104 1,593 3,166 MEMO 13 Treasury operating balance (level, end of period) 43,621 38,878 56,458 21,962 44,770 92,557 23,087 57,437 34,053 14 Federal Reserve Banks 7,692 4,952 6,641 5,004 4,357 15,868 5,445 6,208 5,392 15 Tax and loan accounts 35,930 33,926 49,817 16,958 40,413 76,689 17,642 51,229 28,661 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 Nonfinancial Statistics • October 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 May June July RECEIPTS 1 All sources 1,721,798 1,827,454 825,057 966,045 892,266 1,089,760 146,002 214,875 134,074 2 Individual income taxes, net 828,586 879,480 392,332 481,907 425,451 550,208 63,687 100,458 66,301 3 Withheld 646,483 693,940 339,144 351,068 372,012 388,526 65,946 59,516 64,474 4 Nonwithheld 281,527 308,185 65,204 240,278 68,302 281,103 23,349 44,161 4,066 5 Refunds 99,476 122,706 12,032 109,467 14,841 119,477 25,619 3,228 22,,224411 Corporation income taxes 6 Gross receipts 213,008 216,324 104,163 106,861 110,111 119,166 7,427 41,899 6,605 7 Refunds 24,593 31,645 14,250 17,092 13,996 13,781 1,654 1,366 1,592 8 Social insurance taxes and contributions, net . . . 571,831 611,833 268,466 324,831 292,551 353,514 60,394 60,771 49,650 9 Employment taxes and contributions2 540.014 580,880 256,142 306,235 280,059 333,584 49,212 60,034 47,136 10 Unemployment insurance 27.484 26,480 10,121 16,378 10,173 17,562 10,778 311 2,145 11 Other net receipts3 4,333 4,473 2,202 2,216 2,319 2,368 403 426 369 12 Excise taxes 57,673 70,414 33,366 31,015 34,262 33,532 5,391 6,093 6,022 13 Customs deposits 18,297 18,336 9,838 8,440 10,287 9,218 1,598 1,767 1,781 14 Estate and gift taxes 24,076 27,782 12,359 14,915 14,001 15,073 2,480 2,087 1,872 15 Miscellaneous receipts4 32,658 34,929 18,735 15,140 19,569 22,831 6,678 3,165 3,435 OUTLAYS 16 All types 1,652,552 1,702,940 877,414 817,227 882,795 892,947r 149,612 158,987r 129,317 17 National defense 268,456 274,873 140,196 134,414 149,820 143,476 23,640 29,637 19,542 18 International affairs 13,109 15,243 8,297 6,879 8,530 7,250 764 667 3,067 19 General science, space, and technology 18,219 18,125 10,142 9,319 10,089 9,601 1,686 1,862 1,524 20 Energy 1,270 912 699 797 -90 -893 -167 20 42 21 Natural resources and environment 22,396 23,970 12,671 10,351 12,100 10,814 1,839 2,123 1,783 22 Agriculture 12.206 23,011 16,757 9,803 20,887 11,164 615 1,656 496 23 Commerce and housing credit 1,014 2,649 4,046 -1,629 7,353 -2,497 1,063 -1,237 423 24 Transportation 40.332 42,531 20,836 17,082 22,972 21,054 3,892 4,224 3,781 25 Community and regional development 9,720 11,870 6,972 5,368 7,135 5,050 1,047 974 814 26 Education, training, employment, and social services 54,919 56,402 27,762 29,003 27,532 31,234 5,143 4,766 3,874 27 Health 131,440 141,079 67,838 69,320 74,490 75,871 12,532 13,443 12,450 28 Social security and Medicare 572,047 580,488 316,809 261,146 295,030 306,966 52,741 58,378 47,415 29 Income security 233,202 237,707 109,481 126,552 113,504 133,915 19,342 18,886 15,343 30 Veterans benefits and services 41,781 43,212 22,750 20,105 23,412 23,174 4,028 5,268 1,910 31 Administration of justice 22,832 25,924 12,041 13,149 13,459 13,981 2,616 2,281 2,051 32 General government 13,444 15,771 9,136 6,641 7,006 6,198 1,201 1,517 960 33 Net interest5 243,359 229,735 116,954 116,655 112,420 115,545 21,325 17,503 17,660 34 Undistributed olfsetting receipts6 -47,194 -40,445 -25,793 -17,724 -22,850 -19,346 -3,697 -3,371 -3,818 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 A27 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 5,714 2 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 28 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 Ql 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 67.6r 100.7r 92.4r 100.7r 107.4r 109.0r 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 issues' 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 2,190.2 17 Federal Reserve Banks 410.9 451.9 471.7 477.7 496.5 477.7 501.7 505.0 18 Private investors 3,431.2 3,414.6 3,334.0 3,233.9 3,175.4 3,233.9 3,182.8 2,987.4 19 Depository institutions 296.6 300.3 237.3 246.3r 239.9r 246.3r 234.9 n.a. 20 Mutual funds 315.8 321.5 343.2 349.5r 338.r 349.5r 343.7 n.a. 21 Insurance companies 214.1 176.6 144.5 140.0r 141.6r 140.0r 138.7 n.a. 22 State and local treasuries6 257.0 239.3 269.3 266.8 271.6 266.8 257.2 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.5 186.3r 186.5 185.3 184.7 24 Pension funds 392.7 421.0 434.7 445.5r 444.8 445.5r 432.3 n.a. 25 Private 189.2 204.1 218.1 234.5r 228.3 234.5r 230.8 n.a. 26 State and Local 203.5 216.9 216.6 211,0r 216.5 211.0r 201.5 n.a. 27 Foreign and international7 1,102.1 1,241.6 1,278.7 1,268.8 1,281.3 1,268.8 1,274.0 1,248.9 28 Other miscellaneous investors6'8 665.9 527.9 438.5r 330.5r 271.7r 330.5r 316.7 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 • October 2000 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2000 2000, week ending Item Apr. May June May 31 June 7 June 14 June 21 June 28 July 5 July 12 July 19 July 26 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 27,907 23,171 20,474 29,554 28,693 17,118 18,428 17,957 19,729 15,829 15,986 14,835 Coupon securities, by maturity 2 Five years or less 114,115 116,145 102,265 100,865 122,618 92,777 96,219 100,238 95,280 104,977 95,874 92,287 3 More than five years 69,668 58,444 64,492 51,980 79,094 58,700 62,753 61,828 53,472 55,910 56,204 57,284 4 Inflation-indexed 1,201 837 955 670 1,249 1,033 802 778 851 22,,558866 743 790 Federal agency 5 Discount notes 58,111 66,305 49,638 60,053 55,481 44,941 48,777 45,529 59,195 55,141 58,519 47,330 Coupon securities, by maturity 6 One year or less 1,220 1,046 864 502 811 753 805 1,176 637 1,910 11,,009999 11,,336688 7 More than one year, but less than or equal to five years 9,675 8,626 7,304 8,139 8,034 6,730 8,390 6,033 7,381 9,802 7,806 5,838 8 More than five years 8,295 6,923 9,031 4,907 11,899 7,464 9,671 6,485 10,544 11,132 7,477 6,853 9 Mortgage-backed 72,104 61,536 64,884 36,075 79,762 108,222 49,885 35,406 30,534 114,891 78,571 37,100 By type of counterparty With interdealer broker 10 U.S. Treasury 108,736 98,961 92,504 88,357 115,729 83,721 89,993 86,829 76,860 86,657 85,622 76,595 11 Federal agency 9,029 8,007 8,398 6,338 9,902 8,435 8,801 6,727 7,720 8,267 7,515 6,730 12 Mortgage-backed 26,543 24,010 24,768 14,940 27,907 38,194 21,238 15,746 14,738 32,479 23,708 1177,,886622 With other 13 U.S. Treasury 104,155 99,635 95,682 94,713 115,926 85,906 88,209 93,972 92,472 92,646 83,186 88,601 14 Federal agency 68,271 74,892 58,438 67,262 66,322 51,453 58,843 52,496 70,037 69,718 67,387 54,661 15 Mortgage-backed 45,561 37,525 40,116 21,135 51,855 70,029 28,647 19,660 15,796 82,412 54,863 19,237 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills 0 0 0 n.a. n.a. n.a. n.a. n.a. 0 n.a. n.a. n.a. Coupon securities, by maturity 17 Five years or less 2,667 4,870 3,549 5,916 6,220 3,160 3,267 1,793 2,939 2,695 2,818 2,268 18 More than five years 15,366 14,727 13,282 16,539 16,391 15,261 11,783 11,130 9,685 7,963 8,976 8,978 19 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 20 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 21 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 22 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 0 23 More than five years 56 98 245 158 165 335 158 355 161 53 43 27 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 1,608 1,967 1,398 1,021 2,555 628 1,027 1,538 1,012 1,478 1,308 1,032 27 More than five years 4,256 4,460 3,185 4,329 4,312 2,481 3,362 3,027 2,077 2,606 3,068 2,455 28 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 31 More than one year, but less than or equal to five years 0 0 0 0 0 0 n.a. n.a. n.a. 0 0 n.a. 32 More than five years 0 0 20 0 30 n.a. n.a. 13 14 n.a. n.a. 0 33 Mortgage-backed 686 1,078 1,306 0 2,112 1,722 711 844 889 942 494 1,078 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are repotted at maricet value by maturity of coupon or coipus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2000 2000, week ending Apr. May June May 31 June 7 June 14 June 21 June 28 July 5 July 12 July 19 Positions2 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 6,568 -5,764 3,514 -3,103 5,307 3,773 3,051 2,010 3,215 6,900 5,288 Coupon securities, by maturity 2 Five years or less -28,803 -42,941 -38,615 -39,154 -40,164 -39,185 -39,720 -37,398 -31,591 -30,281 -33,718 3 More than five years -18,591 -23,820 -21,306 -27,018 -21,941 -21,485 -20,632 -20,887 -22,278 -19,462 -21,825 4 Inflation-indexed 2,192 1,849 1,668 1,573 1,328 1,646 1,817 1,856 1,754 2,748 2,741 Federal agency 5 Discount notes 28,299 27,258 32,775 30,094 31,351 31,654 35,903 31,901 33,800 32,327 37,165 Coupon securities, by maturity 6 One year or less 15,284 12,658 10,016 10,343 10,654 10,552 10,222 8,814 9,393 12,198 13,907 7 More than one year, but less than or equal to five years 894 2,883 1,925 2,449 2,018 1,716 2,173 1,909 1,515 3,013 4,088 8 More than five years 3,316 2,084 899 1,472 2,136 381 1,211 310 -653 976 1,618 9 Mortgage-backed 27,631 21,502 23,442 20,840 24,844 24,885 20,938 22,612 25,149 20,088 17,784 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills 0 0 0 0 n.a. n.a. 0 0 0 n.a. n.a. Coupon securities, by maturity 11 Five years or less 13,480 17,318 12,969 14,711 13,622 13,504 11,838 13,096 12,321 14,231 15,443 12 More than five years -2,131 1,770 -165 783 -770 -265 -222 631 -277 -1,619 1,569 13 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 Federal agency 14 Discount notes 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 15 One year or less 0 0 0 0 0 0 0 0 0 0 0 16 More than one year, but less than or equal to five years 0 0 0 0 0 0 0 0 0 0 0 17 More than five years -40 -105 -740 -66 -371 -1,260 -1,314 -156 -244 -205 -303 18 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 NET OPTIONS POSITIONS By type of deliverable security 19 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 20 Five years or less 74 180 376 39 -350 -170 1,407 369 1,247 1,896 697 21 More than five years 6,471 2,496 400 665 -96 -297 347 1,164 2,081 1,128 1,186 22 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 Federal agency 23 Discount notes 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 24 One year or less 0 0 0 0 0 0 0 0 0 0 0 25 More than one year, but less than or equal to five years 139 309 194 n.a. 194 n.a. n.a. n.a. n.a. n.a. n.a. 26 More than five years 70 477 522 762 690 688 700 123 129 422 144 27 Mortgage-backed 52 769 929 -118 -336 1,267 1,555 1,304 670 1,403 2,410 Financing5 Reverse repurchase agreements 28 Overnight and continuing 298,607 308,541 294,802 311,880 295,654 307,653 283,910 292,097 294,428 281,044 271,301 29 Term 792,459 791,514 850,521 771,755 817,832 844,458 856,451 913,474 745,067 791,805 838,997 Securities borrowed 30 Overnight and continuing 280,029 304,544 292,038 299,999 300,138 294,085 286,170 285,140 301,201 303,871 301,536 31 Term 112,178 108,141 112,854 109,933 108,688 110,588 117,529 116,242 107,146 110,267 116,920 Securities received as pledge 32 Overnight and continuing 1,890 1,748 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,468 2,376 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 732,319 731,269 744,475 733,912 746,848 762,590 734,882 734,872 739,951 748,300 750,714 35 Term 682,363 671,847 746,986 646,751 695,212 727,831 761,667 827,872 660,759 701,653 754,442 Securities loaned 36 Overnight and continuing 7,750 8,409 7,698 8,887 8,203 8,274 7,186 7,307 7,068 6,638 7,372 37 Term 7,738 9,076 6,567 8,605 7,230 6,712 6,106 6,180 6,712 6,563 6,269 Securities pledged 38 Overnight and continuing 61,754 61,585 61,667 64,152 62,840 59,385 61,708 61,747 65,123 62,578 63,841 39 Term 7,132 5,403 4,249 3,955 4,614 4,434 4,265 3,812 3,791 4,312 4,533 Collateralized loans 40 Total 22,002 15,835 16,826 13,912 23,370 15,842 13,551 15,433 13,702 19,192 21,991 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 • October 2000 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2000 AAggeennccyy 11999966 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May 1 Federal and federally sponsored agencies 925,823 1,022,609 1,296,477 1,616,492 1,620,814 1,635,828 1,644,276 n.a. 193,776 2 Federal agencies 29,380 27,792 26,502 26,376 26,277 26,168 26,231 26,011 26,052 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 84 102 205 126 126 155 168 173 184 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 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 26,271 26,162 26,225 26,005 26,046 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 1,594,537 1,609,660 1,618,045 164,298 167,726 11 Federal Home Loan Banks 263,404 313,919 382,131 529,005 522,692 527,835 535,284 541,673 557,506 12 Federal Home Loan Mortgage Corporation 156,980 169,200 287,396 360,711 372,586 380,660 378,006 388,261 392,555 13 Federal National Mortgage Association 331,270 369,774 460,291 547,619 544,360 547,100 557,543 561,700 571,800 14 Farm Credit Banks8 60,053 63,517 63,488 68,883 69,082 69,147 67,154 69,036 70,036 15 Student Loan Marketing Association9 44,763 37,717 35,399 41,988 43,762 42,723 38,089 40,119 43,144 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 40,753 40,182 39,306 38,700 39,102 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 1,431 552 21 Postal Service6 n.a. n.a. T T T T T T T 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. 1 1 1 1 1 1 1 24 United States Railway Association6 n.a. n.a. 1 1 1 1 1 1 1 Other lending14 25 Farmers Home Administration 18,325 13,530 9,500 6,665 6,565 6,515 6,350 6,240 6,140 26 Rural Electrification Administration 16,702 14,898 14,091 14,085 13,958 14,016 13,152 13,167 13,221 27 Other 21,714 20,110 20,538 21,402 20,230 19,651 19,804 19,293 19,741 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 oo iiss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May June July 1 All issues, new and refunding1 214,694 262,342 215,427 14,751 8,969 10,905 16,780 14,233 14,136 20,208 12,827 By type of issue 2 General obligation 69,934 87,015 73,308 3,715 3,454 4,473 5,008 4,598 6,051 8,581 4,256 3 Revenue 134,989 175,327 142,120 11,035 5,516 6,433 11,773 9,635 8,086 11,628 8,572 By type of issuer 4 State 18,237 23,506 16,376 834 863 1,730 1,570 1,371 1,102 2,907 783 5 Special district or statutory authority2 134,919 178,421 152,418 10,640 5,784 7,414 11,098 10,229 9,639 13,520 8,545 6 Municipality, county, or township 70,558 60,173 46,634 3,277 2,322 1,761 4,112 2,633 3,396 3,782 3,500 7 Issues for new capital 135,519 160,568 161,065 11,475 8,009 9,382 13,508 12,029 12,481 16,987 11,297 By use of proceeds 8 Education 31,860 36,904 36,563 3,095 2,189 2,548 3,436 2,484 3,662 4,465 3,185 9 Transportation 13,951 19,926 17,394 1,201 1,064 723 2,723 768 1,778 1,093 1,947 10 Utilities and conservation 12,219 21,037 15,098 1,008 588 115 1,086 729 537 1,141 353 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 9,099 707 89 647 747 762 585 1,150 632 13 Other purposes 35,095 42,450 47,896 3,141 2,885 2,804 2,426 3,903 3,557 5,776 2,543 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 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June 1 All issues' 929,256 1,128,491 1,072,866 85,016 50,805 55,714 85,679 113,093 61,963 62,939 102,864 2 Bonds2 811,376 1,001,736 941,298 61,033 42,477 44,220 63,391 96,148 40,941 58,233 92,742 By type of offering 3 Sold in the United States 708,188 923,771 818,683 53,908 36,488 30,784 56,727 87,603 36,724 45,986 75,271 4 Sold abroad 103,188 77,965 122,615 7,125 5,989 13,436 6,664 8,545 4,217 12,247 17,471 MEMO 5 Private placements, domestic n.a. n.a. n.a. 1,237 3,241 967 65 0 228 3,694 3,391 By industry group 6 Nonfinancial 222,603 307,935 293,963 24,283 14,614 14,599 26,598 28,086 8,060 20,832 29,412 7 Financial 588,773 693,801 647,335 36,750 27,863 29,620 36,792 68,062 32,881 37,401 63,331 8 Stocks3 117,880 126,755 131,568 23,983 8,328 11,494 22,288 16,945 21,022 4,706 7,810 By type of offering 9 Public 117,880 126,755 131,568 23,983 8,328 11,494 22,288 16,945 21,022 4,706 7,810 10 Private placement4 55,450 78,850 86,300 7,192 7,192 n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 60,386 74,113 110,284 22,611 7,450 9,247 21,796 15,679 16,763 4,522 6,458 12 Financial 57,494 52,642 21,284 1,372 878 2,247 492 1,266 4,259 184 1,352 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 • October 2000 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 1999 2000 IItteemm 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May Juner July 1 Sales of own shares2 1,461,430 1,791,894 185,898 226,251 237,861 269,118 202,248 172,718 181,866 167,644 2 Redemptions of own shares 1,217,022 1,621,987 178,855 204,380 197,423 243,194 176,671 162,984 161,462 151,960 3 Net sales3 244,408 169,906 7,042 21,871 40,438 25,924 25,577 9,735 20,404 15,685 4 Assets4 4,173,531 5,233,191 5,233,191 5,114,482 5,375,874 5,606,254 5,391,187 5,232,319 5,458,914 5,380,247 5 Cash5 191,393 219,189 219,189 222,729 231.480 221,623 254,819 260,426 259,241 257,125 6 Other 3,982,138 5,014,002 5,014,002 4,891,753 5,144,394 5,384,630 5,136,368 4,971,892 5,199,673 5,123,123 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 1998r 1999r 2000 AAccccoouunntt 11999977rr 11999988rr 11999999rr Q3 Q4 Q1 Q2 Q3 Q4 Qlr Q2 1 Profits with inventory valuation and capital consumption adjustment 833.8 815.0 856.0 818.0 803.4 852.0 836.8 842.0 893.2 936.3 964.0 2 Profits before taxes 792.4 758.2 823.0 760.1 742.3 797.6 804.5 819.0 870.7 920.7 942.2 3 Profits-tax liability 237.2 244.6 255.9 249.0 239.4 247.8 250.8 254.2 270.8 286.3 292.9 4 Profits after taxes 555.2 513.6 567.1 511.1 502.9 549.9 553.7 564.8 599.9 634.4 649.3 5 Dividends 335.2 351.5 370.7 351.4 356.1 361.1 367.2 373.9 380.6 387.3 393.0 6 Undistributed profits 220.0 162.1 196.4 159.7 146.9 188.7 186.5 190.9 219.3 247.1 256.3 7 Inventory valuation 8.4 17.0 -9.1 17.7 19.9 11.4 -8.9 -19.7 -19.2 -25.0 -13.4 8 Capital consumption adjustment 32.9 39.9 42.1 40.2 41.2 42.9 41.2 42.7 41.6 40.6 35.2 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 Q1 Q2 Q3 Q4 Qi Q2 ASSETS 1 Accounts receivable, gross2 663.3 711.7 811.5 711.7 733.8 756.5 776.3 811.5 848.7 653.9 2 Consumer 256.8 261.8 .0 261.8 261.7 .0 .0 .0 .0 77.5 3 Business 318.5 347.5 n.a. 347.5 362.8 365.0 n.a. n.a. n.a. 443.7 4 Real estate 87.9 102.3 126.5 102.3 109.2 113.3 122.3 126.5 128.8 132.7 5 LESS: Reserves for unearned income 52.7 56.3 53.5 56.3 52.9 53.4 54.0 53.5 53.9 n.a. 6 Reserves for losses 13.0 13.8 13.5 13.8 13.4 13.4 13.6 13.5 14.0 n.a. 7 Accounts receivable, net 597.6 641.6 744.6 641.6 667.6 689.7 708.6 744.6 780.8 653.9 8 All other 312.4 337.9 406.3 337.9 363.3 373.2 368.5 406.3 412.5 n.a. 9 Total assets 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 LIABILITIES AND CAPITAL 10 Bank loans 24.1 26.3 35.1 26.3 24.8 25.1 27.0 35.1 30.7 n.a. 11 Commercial paper 201.5 231.5 227.9 231.5 222.9 231.0 205.3 227.9 229.7 n.a. Debt 12 Owed to parent 64.7 61.8 123.8 61.8 64.6 65.4 84.5 123.8 145.2 n.a. 13 Not elsewhere classified 328.8 339.7 397.0 339.7 366.7 383.1 396.2 397.0 410.0 n.a. 14 All other liabilities 189.6 203.2 222.7 203.2 220.3 226.1 216.0 222.7 241.6 n.a. 15 Capital, surplus, and undivided profits 101.3 117.0 144.5 117.0 131.5 132.2 148.2 144.5 136.2 n.a. 16 Total liabilities and capital 910.0 979.5 1,150.9 979.5 1,030.8 1,062.9 1,077.2 1,150.9 1,193.4 n.a. 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 2000 TTyyppee ooff ccrreeddiitt 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June Seasonally adjusted 1 Total 810.5 875.8 993.9 1,022.4 1,032.2 1,054.1 l,073.3r l,088.7r 1,110.5 2 Consumer 327.9 352.8 385.3 391.7 395.5 396.7 398.0 400.7r 401.7 3 Real estate 121.1 131.4 154.7 159.1 162.3 167.9 173.1 178.4 185.6 4 Business 361.5 391.6 453.9 471.6 474.4 489.4 502.2r 509.5 523.1 Not seasonally adjusted 5 Total 818.1 884.0 1,003.2 1,022.4 1,031.9 1,057.0 l,073.6r l,088.5r 1,116.0 6 Consumer 330.9 356.1 388.8 391.1 392.3 392.8 394.4 399.4r 404.2 7 Motor vehicles loans 87.0 103.1 114.7 117.6 121.3 121.1 120.9 124.1r 125.7 8 Motor vehicle leases 96.8 93.3 98.3 99.3 100.7 101.7 102.8 104.1 103.9 9 Revolving2 38.6 32.3 33.8 34.4 32.9 31.5 31.9 31.6r 33.1 10 Other3 34.4 33.1 33.1 33.0 32.7 31.1 31.2 31.9r 31.8 Securitized assets4 11 Motor vehicle loans 44.3 54.8 71.1 69.6 67.8 71.2 72.1 71.9 74.1 12 Motor vehicle leases 10.8 12.7 9.7 9.5 9.2 8.8 8.5 8.2 7.9 13 Revolving .0 8.7 10.5 10.4 10.4 10.3 10.1 11.1 11.1 14 Other 19.0 18.1 17.7 17.4 17.3 17.1 16.8 16.5 16.6 15 Real estate 121.1 131.4 154.7 159.1 162.3 167.9 173.1 178.4 185.6 16 One- to four-family 59.0 75.7 88.3 91.1 91.7 90.4 93.6 97.3 97.2 17 Other 28.9 26.6 38.3 38.6 38.4 38.4 39.0 39.4 39.6 Securitized real estate assets 18 One- to four-family 33.0 29.0 28.0 29.2 32.0 38.9 40.2 41.5 48.6 19 Other .2 .1 .2 .2 .2 .2 .2 .2 .2 20 Business 366.1 396.5 459.6 472.2 477.4 496.3 506. r 510.7 526.2 21 Motor vehicles 63.5 79.6 87.8 87.9 89.6 90.2 93.6 94.8 94.5 22 Retail loans 25.6 28.1 33.2 33.3 33.7 32.3 32.7 33.3 33.8 23 Wholesale loans5 27.7 32.8 34.7 34.6 35.8 37.9 38.9 39.5 38.4 24 Leases 10.2 18.7 19.9 20.1 20.1 19.9 22.0 22.0 22.3 25 Equipment 203.9 198.0 221.9 222.3 225.1 238.0 243.1 247.3 256.2 26 Loans 51.5 50.4 52.2 51.9 52.8 54.9 55.6 55.9 60.3 27 Leases 152.3 147.6 169.7 170.4 172.3 183.1 187.5 191.5 195.8 28 Other business receivables 51.1 69.9 95.5 99.6 101.4 106.4 107.4r 106.6 107.5 Securitized assets4 29 Motor vehicles 33.0 29.2 31.5 31.5 31.0 31.5 32.3 32.0 31.7 30 Retail loans 2.4 2.6 2.9 2.9 2.8 3.2 3.1 3.0 2.9 31 Wholesale loans 30.5 24.7 26.4 26.5 26.1 25.9 26.8 26.7 26.4 32 Leases .0 1.9 2.1 2.1 2.1 2.4 2.4 2.4 2.4 33 Equipment 10.7 13.0 14.6 22.8 22.5 22.0 21.7 21.5 29.7 34 Loans 4.2 6.6 7.9 16.1 15.9 15.4 15.2 15.0 15.2 35 Leases 6.5 6.4 6.7 6.7 6.6 6.5 6.5 6.5 14.6 36 Other business receivables6 4.0 6.8 8.4 8.1 7.7 8.3 8.0 8.4 6.6 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 • October 2000 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2000 IItteemm 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June July Terms and yields in primary and secondary markets PRIMARY MARKETS Termsx 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 223.7 216.9 226.0 224.2 232.2 238.6 235.8 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 169.9 165.6 170.7 170.2 176.3 178.3 178.3 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 77.9 78.4 77.7 77.9 78.0 76.9 77.7 4 Maturity (years) 28.2 28.4 28.8 29.1 29.1 29.0 29.1 29.2 29.2 29.3 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .75 .71 .68 .68 .71 .69 .66 Yield (percent per year) 6 Contract rate1 7.57 6.95 6.94 7.34 7.43 7.49 7.52 7.44 7.40 7.41 7 Effective rate1,3 7.73 7.08 7.06 7.45 7.54 7.60 7.63 7.55 7.50 7.51 8 Contract rate (HUD series)4 7.76 7.00 7.45 8.21 8.20 8.19 8.29 8.26 n.a. n.a. SECONDARY MARKETS Yield (percent per year) y FHA mortgages (Section 203)5 7.89 7.04 7.74 8.56 8.53 8.35 8.33 8.58 n.a. n.a. 10 GNMA securities6 7.26 6.43 7.03 7.84 7.96 7.79 7.64 8.06 7.69 7.59 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 527,977 535,096 538,751 539,181 545,803 552,166 561,045 12 FHA/VA insured 31,925 33,770 55,318 57,369 58,294 58,451 58,899 59,140 59,703 60,397 13 Conventional 284,753 380,745 468,623 470,608 476,802 480,300 480,282 486,663 492,463 500,648 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 9,035 11,484 8,801 6,257 12,872 12,842 15,128 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 9,130 9,811 10,051 12,524 10,450 11,825 16,660 16 To sell8 1,298 1,880 5,900 1,287 612 1,954 1,340 1,594 1,254 436 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 164,421 255,010 324,443 325,914 328,598 336,338 339,207 347,370 350,836 354,020 18 FHA/VA insured 177 785 1,836 1,806 1,719 2,521 1,987 3,116 2,892r 2,858 19 Conventional 164,244 254,225 322,607 324,108 326,879 333,817 337,220 344,254 347,944r 351,162 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 12,942 6,747 9,323 8,393 15,741 12,271 10,912 21 Sales 114,258 250,565 233,031 12,764 6,424 8,569 8,077 15,261 11,806 10,539 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 8,341 7,156 10,122 8,750 13,807 13,596 10,803 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 Q1 Q2 Q3 Q4 Ql 1 A11 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 10 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 26 Farmers 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 29 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 61 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 • October 2000 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2000 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999 J an. Feb. Mar. Apr. May Junep Seasonally adjusted 1 Total 1,234,461 1,301,023 1,393,657 1,409,387 1,418,756 1,429,431 l,438,656r 1,452,808 1,464,758 2 Revolving 531,163 560,504 595,610 603,782 608,523 615,510 622,461/ 628,798 632,463 3 Nonrevolving2 703,297 740,519 798,047 805,605 810,233 813,921 816,197 824,010 832,295 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,426,151 1,419,258 1,413,585 1,416,228 l,426,448r 1,439,654 1,455,985 By major holder 5 Commercial banks 512,563 508,932 499,758 498,589 499,148 497,120 502,679 507,995 512,938 6 Finance companies 160,022 168,491 181,573 184,887 186,896 183,705 184,050 187,610 190,569 7 Credit unions 152,362 155,406 167,921 168,109 168,209 169,487 171,257 173,727 174,234 8 Savings institutions 47,172 51,611 61,527 60,674 59,821 58,968 59,472 59,976 60,480 9 Nonfinancial business 78,927 74,877 80,311 76,048 73,509 72,908 72,979 73,018 71,915 10 Pools of securitized assets3 313,057 372,425 435,061 430,951 426,002 434,040 436,01 lr 437,328 445,849 By major type of credit4 11 Revolving 555,858 586,528 623,245 614,528 609,387 609,086 615,588r 621,160 625,744 12 Commercial banks 219,826 210,346 189,352 185,451 186,379 184,901 188,691 192,351 192,537 13 Finance companies 38,608 32,309 33,814 34,352 32,885 31,456 31,928 31,628 33,062 14 Credit unions 19,552 19,930 20,641 20,175 19,941 19,764 19,929 20,025 20,650 15 Savings institutions 11,441 12,450 15,838 15,551 15,263 14,975 15,291 15,607 15,923 16 Nonfinancial business 44,966 39,166 42,783 39,746 • 37,918 37,430 37,418 37,393 36,252 17 Pools of securitized assets3 221,465 272,327 320,817 319,253 317,001 320,560 322,331r 324,156 327,320 18 Nonrevolving 708,245 745,214 802,906 804,730 804,198 807,142 810,860 818,494 830,241 19 Commercial banks 292,737 298,586 310,406 313,138 312,769 312,219 313,988 315,644 320,401 20 Finance companies 121,414 136,182 147,759 150,535 154,011 152,249 152,122 155,982 157,507 21 Credit unions 132,810 135,476 147,280 147,934 148,268 149,723 151,328 153,702 153,584 22 Savings institutions 35,731 39,161 45,689 45,123 44,558 43,993 44,181 44,369 44,557 23 Nonfinancial business 33,961 35,711 37,528 36,302 35,591 35,478 35,561 35,625 35,663 24 Pools of securitized assets3 91,592 100,098 114,244 111,698 109,001 113,480 113,680 113,172 118,529 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 Dec. Jan. Feb. Mar. Apr. May June INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 n.a. n.a. 8.88 n.a. n.a. 9.21 n.a. 2 24-month personal 13.90 13.74 13.39 n.a. n.a. 13.76 n.a. n.a. 13.88 n.a. Credit card plan 3 All accounts 15.77 15.71 15.21 n.a. n.a. 15.47 n.a. n.a. 15.39 n.a. 4 Accounts assessed interest 15.57 15.59 14.81 n.a. n.a. 14.32 n.a. n.a. 14.74 n.a. Auto finance companies 5 New car 7.12 6.30 6.66 7.32 7.18 7.34 6.76 6.38 6.51 6.55 6 Used car 13.27 12.64 12.60 13.28 12.95 13.27 13.45 13.52 13.47 13.58 OTHER TERMS3 Maturity (months) 7 New car 54.1 52.1 52.7 53.4 52.9 52.7 53.1 53.8 53.5 53.4 8 Used car 51.0 53.5 55.9 55.6 57.0 57.1 57.1 57.1 57.1 n.a. Loan-to-value ratio 9 New car 92 92 92 91 91 92 93 93 93 93 10 Used car 99 99 99 99 98 98 99 98 99 n.a. Amount financed (dollars) 11 New car 18,077 19,083 19,880 20,699 20,503 20,206 20,395 20,542 20,621 20,494 12 Used car 12,281 12,691 13,642 13,970 13,809 13,697 13,666 13,871 14,132 n.a. 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 7 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1998 1999r 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q4r Qi Q2 Q3 Q4 Qir Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . . 559.3r 711.3r 731.4r 804.3r l,042.9r 1,065.8 1,278.3 939.4 1,170.7 1,095.5 947.3 994.4 By sector and instrument 2 Federal government 155.9r 144.4 145.0 23.1 -52.6 -65.2 -83.4 -98.5 -71.4 -31.5 -215.5 -414.0 3 Treasury securities 155.7 142.9 146.6 23.2 -54.6 -77.4 -81.9 -99.1 -71.5 -31.5 -213.5 -415.8 4 Budget agency securities and mortgages .2 1.5 -1.6 -.1 2.0 12.2 -1.5 .6 .0 .0 -2.1 1.8 5 Nonfederal 403,4r 566.9r 586.3r 781.2r l,095.5r 1,131.0 1,361.8 1,037.9 1,242.2 1,126.9 1,162.9 1,408.4 By instrument Commercial paper 21.4 18.1 -.9 13.7 24.4 -43.0 58.3 -2.6 49.8 44.0 36.2 116.9 7 Municipal securities and loans -35.9 -48.2 2.6 71.4 96.8 92.8 92.1 56.8 71.3 52.5 8.9 34.0 8 Corporate bonds 23.3 91.1 116.3 150.5 218.7 193.2 274.0 287.6 202.8 155.2 186.2 153.8 9 Bank loans n.e.c 75.2 103.7 70.5 106.5 108.2 107.5 86.0 24.0 112.3 108.6 131.9 159.7 in Other loans and advances 34.0 67.2 33.5 69.1 74.3 101.4 148.0 2.3 79.2 55.4 162.1 144.6 n Mortgages 160.5r 196.0r 275.7r 317.5r 505.5r 609.2 572.8 608.4 650.7 601.7 494.5 667.6 12 Home 183.2r 180.7r 242.5r 252.3r 386.9r 444.1 411.8 440.8 480.0 398.9 346.2 500.6 13 Multifamily residential -3.6r 5.8r 9.4r 8.3r 20.3r 26.9 35.5 33.1 44.2 47.9 31.5 36.6 14 Commercial -21.3r 7.9r 21.3r 53.7r 92.0r 129.6 122.0 125.6 119.4 152.4 109.9 118.5 15 Farm 2.2 1.6 2.6 3.2 6.2 8.6 3.6 9.0 7.0 2.5 6.9 11.9 16 Consumer credit 124.9 138.9 88.8 52.5 67.6 69.9 130.5 61.4 76.2 109.5 143.1 131.8 By borrowing sector 17 Household 313.4r 348.8r 347.6r 333.4r 480.5r 526.7 554.6 520.7 588.5 509.6 531.4 635.4 18 Nonfinancial business 136.3r 269.5r 245.5r 391.8r 534.7r 527.4 727.4 473.5 601.3 583.7 627.7 747.9 19 Corporate 128.71" 236.1r 157.01 270.6r 417.2r 404.9 626.3 372.0 467.2 455.4 503.4 615.5 20 Nonfarm noncorporate 3.3 30.6 83.8 115.0 109.8 115.3 96.2 99.8 125.5 122.7 109.5 120.8 21 Farm 4.4 2.9 4.8 6.2 7.7 7.2 4.9 1.7 8.5 5.6 14.7 11.6 22 State and local government -46.2 -51.5 -6.8 56.1 80.3 76.9 79.8 43.6 52.5 33.6 3.8 25.0 23 Foreign net borrowing in United States -13.9 78.5r 88.4r 71.8r 43.3r -25.6 30.7 -24.5 77.3 17.6 116.9 -10.5 24 Commercial paper -26.1 13.5 11.3 3.7 7.8 -4.7 18.0 -27.5 41.1 33.6 56.7 10.9 75 Bonds 12.2 57.lr 67.0r 61.4r 34.8r -21.5 15.4 .2 44.0 -2.7 45.7 -29.6 26 Bank loans n.e.c 1.4 8.5 9.1 8.5 6.7 9.8 .9 5.6 -6.6 2.3 15.4 6.1 27 Other loans and advances -1.4 -.5 1.0 -1.8 -6.0 -9.1 -3.5 -2.8 -1.1 -15.5 -.9 2.0 28 Total domestic plus foreign 545.3r 789.8r 819.8r 876.1r l,086.2r 1,040.2 1,309.1 914.9 1,248.1 1,113.1 1,064.2 983.8 Financial sectors 29 Total net borrowing by financial sectors 468.4 453.9 545.8 653.7 1,073.9 1,295.7 1,228.8 995.3 1,064.2 1,063.4 618.3 842.9 By instrument 30 Federal government-related 287.5 204.1 231.5 212.8 470.9 677.6 589.5 576.6 651.6 550.3 249.2 356.4 31 Government-sponsored enterprise securities 176.9 105.9 90.4 98.4 278.3 510.5 193.0 304.7 407.1 367.9 104.9 234.8 32 Mortgage pool securities 115.4 98.2 141.1 114.5 192.6 167.1 396.6 271.9 244.5 182.4 144.3 121.6 33 Loans from U.S. government -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 180.9 249.8 314.4 440.9 603.0 618.1 639.2 418.8 412.6 513.0 369.2 486.5 35 Open market paper 40.5 42.7 92.2 166.7 161.0 130.9 78.7 57.3 89.9 479.0 130.9 77.4 36 Corporate bonds 121.8 195.9 173.8 210.5 296.9 292.6 473.8 254.8 179.5 -21.0 166.5 268.1 37 Bank loans n.e.c -13.7 2.5 12.6 13.2 30.1 9.9 -6.7 11.0 -5.9 -55.6 .3 8.8 38 Other loans and advances 22.6 3.4 27.9 35.6 90.2 154.2 73.3 107.9 139.8 107.5 64.4 122.3 39 Mortgages 9.8 5.3 7.9 14.9 24.8 30.6 20.1 -12.3 9.4 3.2 7.0 10.0 By borrowing sector 40 Commercial banking 20.1 22.5 13.0 46.1 72.9 65.3 46.1 61.5 107.0 54.1 72.4 115.1 41 Savings institutions 12.8 2.6 25.5 19.7 52.2 88.6 75.2 59.2 51.9 5.8 40.6 56.3 47 Credit unions .2 -.1 .1 .1 .6 .4 1.5 1.4 2.8 3.3 -2.9 .9 43 Life insurance companies .3 -.1 1.1 .2 .7 1.8 3.3 3.0 1.1 -4.4 -.7 -1.1 44 Government-sponsored enterprises 172.1 105.9 90.4 98.4 278.3 510.5 193.0 304.7 407.1 367.9 104.9 234.8 45 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 167.1 396.6 271.9 244.5 182.4 144.3 121.6 46 Issuers of asset-backed securities (ABSs) 76.5 142.4 150.8 202.2 321.4 340.1 289.7 301.5 220.5 124.2 166.0 193.2 47 Finance companies 48.6r 50.2 45.9 48.7 43.0 6.8 77.0 90.5 -17.2 99.2 52.3 157.6 48 Mortgage companies -11.5 -2.2 4.1 -4.6 1.6 3.0 -4.6 5.1 -6.1 6.2 -3.0 2.7 49 Real estate investment trusts (REITs) 10.2 4.5 11.9 39.6 62.7 44.0 25.6 -19.7 7.9 11.3 11.5 9.8 50 Brokers and dealers .5 -5.0 -2.0 8.1 7.2 12.4 -31.1 -17.4 16.9 -37.3 44.4 -.7 51 Funding corporations 23.1 34.9 64.1 80.7 40.7 55.7 156.5 -66.2 27.9 250.6 -11.4 -47.4 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • October 2000 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued 1998 1999r 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Q4r Ql Q2 Q3 Q4 Qlr Q2 All sectors 52 Total net borrowing, all sectors l,013.8r l,243.8r l,365.6r l,529.8r 2,160.1r 2,335.9 2,537.8 1,910.2 2,312.3 2,176.5 1,682.6 1,826.7 53 Open market paper 35.7 74.3 102.6 184.1 193.1 83.2 155.1 27.2 180.7 556.6 223.7 205.1 54 U.S. government securities 448.1 348.5 376.5 235.9 418.3 612.4 506.1 478.1 580.1 518.9 33.6 -57.6 55 Municipal securities -35.9 -48.2 2.6 71.4 96.8 92.8 92.1 56.8 71.3 52.5 8.9 34.0 56 Corporate and foreign bonds 157.3 344.1r 422.4r 550.4r 464.3 763.1 542.6 426.3 131.5 398.4 392.3 57 Bank loans n.e.c 62.9 114.7 92.1 128.2 145.0 127.1 80.1 40.6 99.8 55.2 147.7 174.6 58 Other loans and advances 50.4 70.1 62.5 102.8 158.5 246.4 217.8 107.5 217.9 147.3 225.7 268.9 59 Mortgages 170.3r 201.3r 283.6r 332.4r 530.3r 639.8 593.0 596.2 660.0 604.9 501.5 677.6 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 69.9 130.5 61.4 76.2 109.5 143.1 131.8 Funds raised through mutual funds and corporate equities 61 Total net issues 113.4 131.5 231.9r 181.2r 100.0r 9.9 154.2 178.5 120.4 172.8 414.3 125.4 62 Corporate equities 12.8 -16.0 -5.7r -83.9r -174.6r -215.6 -86.4 -33.9 -7.0 .0 105.2 -123.0 63 Nonfinancial corporations -44.9 -58.3 -69.5 -114.4 -267.0 -491.3 -52.1 -338.4 -128.4 -55.0 62.8 — 248.0 64 Foreign shares purchased by U.S. residents 48.1 50.4 82.8r 57.6r 101.2r 330.2 -19.8 284.4 121.7 71.3 63.3 135.0 65 Financial corporations 9.6 -8.1 -19.0 -27.1 -8.9 -54.5 -14.5 20.2 -.3 -16.3 -20.8 -10.0 66 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 225.5 240.6 212.4 127.5 172.8 309.0 248.4 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 7 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1998 1999r 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Q4r Ql Q2 Q3 Q4 Qir Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets l,013.8r l,243.8r l,365.6r l,529.8r 2,160.1r 2,335.9 2,537.8 1,910.2 2,312.3 2,176.5 1,682.6 1,826.7 7 Domestic nonfederal nonfinancial sectors 210.0r -61.3r 80.5r n.r 131.8r -188.6 507.8 380.4 268.7 29.3 -104.3 263.4 3 Household 246.8r 34.1r 128.7r 31.8r — 16.7r -375.6 305.5 280.3 265.1 38.5 -172.9 180.7 4 Nonfinancial corporate business 17.7 -8.8 -10.2 —12.7 14.0 44.5 67.0 17.8 45.2 -13.0 63.8 38.5 Nonfarm noncorporate business .6 4.7 -4.3 —2.1 .1 .1 2.8 1.2 .8 1.4 2.6 2.8 6 State and local governments -55.0 -91.4 -33.7 .1 134.5 142.4 132.5 81.0 -42.4 2.4 2.3 41.4 7 Federal government -27.4 -.2 -7.4 5.1 13.5 11.8 17.0 6.7 11.2 -11.8 6.2 8.2 8 Rest of the world 132.3 273.9 414.4 311.3r 254.2r 388.6 256.9 61.6 385.3 138.7 334.9 185.6 9 Financial sectors 698.8r 1,031,4r 878.lr l,196.3r l,760.6r 2,124.1 1,756.2 1,461.5 1,647.0 2,020.3 1,445.7 1,369.5 10 Monetary authority 31.5 12.7 12.3 38.3 21.1 23.5 64.5 59.8 20.6 -42.2 103.4 -3.9 11 Commercial banking 163.4 265.9 187.5 324.3 305.2 493.3 68.1 166.6 449.4 548.7 377.1 484.7 1? U.S.-chartered banks 148.1 186.5 119.6 274.9 312.0 507.6 131.5 259.4 421.9 457.7 409.2 505.8 13 Foreign banking offices in United States 11.2 75.4 63.3 40.2 -11.9 -17.6 -53.1 -102.5 33.2 42.0 4.8 -29.9 14 Bank holding companies .9 -.3 3.9 5.4 -.9 -7.4 -6.0 .4 -12.4 42.6 -42.2 3.5 15 Banks in U.S.-affiliated areas 3.3 4.2 .7 3.7 6.0 10.7 -4.4 9.2 6.6 6.3 5.4 5.4 16 Savings institutions 6.7 -7.6 19.9 -4.7 36.3 111.0 111.0 85.3 58.1 20.2 50.2 72.9 17 Credit unions 28.1 16.2 25.5 16.8 19.0 20.4 30.9 32.7 27.5 18.8 39.9 40.7 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 -13.5 -7.6 -8.4 -8.6 -9.1 -9.5 -9.9 19 Life insurance companies 72.0 100.0 69.6 104.8 76.9 79.0 78.4 68.2 36.8 30.7 57.2 54.1 20 Other insurance companies 24.9 21.5 22.5 25.2 20.4 67.6 -19.7 26.7 -14.4 -9.4 -14.0 -13.6 71 Private pension funds 45.0r 20.2r —5.8r 19.5r 57.8r 108.3 57.5 86.6 32.0 54.0 46.1 .2 77 State and local government retirement funds 30.9 33.6 37.3 63.8 71.5r 51.4 76.0 25.1 40.0 58.2 55.3 17.1 7.3 Money market mutual funds 30.0 86.5 88.8 87.5 244.0 345.7 215.7 -67.0 224.8 354.5 208.8 -156.2 74 Mutual funds -7.1 52.5 48.9 80.9 124.8 106.3 97.4 117.2 -13.0 -12.7 -80.8 55.0 75 Closed-end funds -3.7 10.5 4.7 -2.9 4.5 4.5 3.1 3.1 3.1 3.1 3.1 3.1 26 Government-sponsored enterprises 117.8 86.7 84.2 94.3 261.7r 415.2 189.1 251.5 280.7 221.0 138.2 215.1 77 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 167.1 396.6 271.9 244.5 182.4 144.3 121.6 78 Asset-backed securities issuers (ABSs) 69.4 120.6 120.5 163.8 281.7 317.2 272.1 284.8 212.0 94.4 145.3 158.7 79 Finance companies 48.3 49.9 18.4 21.9 51.9 75.8 85.3 88.1 91.7 114.4 132.9 145.5 30 Mortgage companies -24.0 -3.4 8.2 -9.1 3.2 6.0 -9.1 10.2 -12.1 12.3 -6.0 5.5 31 Real estate investment trusts (REITs) -.7 1.4 4.4 20.2 -5.1 -40.8 1.7 -2.2 -2.7 -7.0 -16.3 -2.5 37 Brokers and dealers -44.2 90.1 -15.7 14.9 6.8 -210.3 34.6 -119.7 -22.2 -15.9 106.9 33.8 33 Funding corporations -i2.r -15.7r 13.6r 47.4r -1.0r -3.5 10.5 81.1 -1.1 403.8 -36.3 147.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets l,013.8r l,243.8r l,365.6r l,529.8r 2,160.1r 2,335.9 2,537.8 1,910.2 2,312.3 2,176.5 1,682.6 1,826.7 Other financial sources 35 Official foreign exchange -5.8 8.8 -6.3 .7 6.6 8.6 -14.0 --55..44 --88..55 --77..00 11..55 -8.8 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 .0 -4.0 .0 -4.0 -4.0 .0 -8.0 37 Treasury currency .7 .6 .1 .0 .0 -2.3 .0 2.1 2.0 -4.1 2.2 -2.3 38 Foreign deposits 52.9 35.3 85.9 108.9r 2.0r -127.6 113.7 110.1 69.4 52.7 258.5 -1.1 39 Net interbank transactions 89.8 10.0 -51.6 -19.7 -32.3 -115.2 48.3 93.4 -33.5 -43.3 -75.8 202.0 40 Checkable deposits and currency -9.7 -12.8r 15.7r 41.2r 47.4r 53.2 63.6 37.5 139.3 365.2 -219.1 -61.1 41 Small time and savings deposits -39.9 96.6 97.2 97.1 152.4 298.3 -74.8 106.6 119.1 28.0 109.1 132.2 47 Large time deposits 19.6 65.6 114.0 122.5 92.1 83.6 18.0 42.4 102.7 359.4 149.2 108.5 43 Money market fund shares 40.5r 141.2r 145.4r 155.9r 287.2r 289.4 221.3 115.3 174.3 485.5 241.0 48.2 44 Security repurchase agreements 78.2 110.5 41.4 120.9 91.3 -207.7 258.0 -26.1 135.9 319.0 276.1 134.8 45 Corporate equities 12.8 -16.0 -5.1' -83.9r — 174.6r -215.6 -86.4 -33.9 -7.0 .0 105.2 -123.0 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 225.5 240.6 212.4 127.5 172.8 309.0 248.4 47 Trade payables 120.0 128.9 114.1r 131.2r 21 ff -35.7 121.7 253.3 216.9 137.0 213.7 213.2 48 Security credit -.1 26.7 52.4 111.0 103.3 -19.3 -62.2 139.7 18.9 277.8 566.3 -138.6 49 Life insurance reserves 35.5 45.8 44.5 59.3 48.0r 68.9 55.4 42.1 48.1 57.6 38.0 44.3 50 Pension fund reserves 257.4r 171.0r 163.0r 278.8r 248.7r 282.6 204.5 248.8 266.7 294.6 258.0 240.8 51 Taxes payable 2.6 6.2 16.0 15.6 11.8 8.0 -2.1 42.5 -1.1 22.5 24.8 24.7 57 Investment in bank personal trusts 17.8 4.0 -8.6 -56.3 -48.0 -48.8 -32.0 -25.9 -34.3 -32.3 -40.4 -41.0 53 Noncorporate proprietors' equity 43.lr 34.6r —3.4R -43.7r —46.7r -16.3 -19.2 4.1 -71.2 -2.2 -27.4 -28.7 54 Miscellaneous 273.2r 489.4r 525.7R 499.6r 836.2r 530.5 398.5 1,393.1 499.2 502.2 1,024.6 879.9 55 Total financial sources 2,102.9r 2,739.7r 2,942.6r 3,333.6r 4,086.9r 3,395.8 3,986.7 4,662.0 4,072.6 5,157.9 4,897.2 3,691.2 Liabilities not identified as assets (—) 56 Treasury currency -.2 -.5 -.9 -.6 -.7 -3.4 -1.5 .6 .2 -6.3 -1.8 -6.2 57 Foreign deposits 43.0 25.1 59.6 107.4r —6.4r -142.5 49.3 96.1 26.4 93.9 179.0 -67.2 58 Net interbank liabilities -2.7 -3.1 -3.3 -19.9 3.4 -38.7 49.7 -4.8 -7.0 -23.7 24.4 -4.1 59 Security repurchase agreements 73.5r 25.7r 4.1r 64.3r 61.4r -18.1 213.5 54.3 77.8 -217.3 550.0 -11.5 60 Taxes payable 16.6 21.1 22.9r 27.9r 13.7r 12.8 -9.1 20.1 1.5 -.7 10.0 -.3 61 Miscellaneous — 119.2r — 180.9r -88.lr -82.0r —54.3r 54.1 -533.0 -289.9 -466.9 -71.3 -340.3 -250.2 Floats not included in assets {—) 62 Federal government checkable deposits -4.8 -6.0 .5 -2.7 2.6 17.1 -2.1 -27.0 8.6 -9.2 28.7 -2.6 63 Other checkable deposits -2.8 -3.8 -4.0 -3.9 -3.1 -1.8 -2.1 -.9 -.3 .0 .6 1.5 64 Trade credit 27.4 15.6 -21.2 — 29.4r -42.lr -32.2 45.6 -18.1 60.4 111.4 2.7 10.8 65 Total identified to sectors as assets 2,072.1r 2,846.6r 2,973.1r 3,272.5r 4,112.Sr 3,548.5 4,176.3 4,831.5 4,371.9 5,281.1 4,443.9 4,021.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F.l and F.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A40 Domestic Nonfinancial Statistics • October 2000 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1998 1999 2000 11999966 11999988 Q4 Qi Q2 Q3 Q4 Qir Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,712.9r 14,444.2r 15,247.0r 16,289.9r 16,289.9r 16,605.6r 16,785.1r 17,105.5r 17,445.6r 17,680.1 17,865.1 By sector and instrument 2 Federal government 3,636.7 3,781.8 3,804.9 3,752.2 3,752.2 3.759.7 3,651.7 3,632.7 3,681.0 3,653.5 3,464.0 Treasury securities 3,608.5 3,755.1 3,778.3 3,723.7 3,723.7 3,731.6 3,623.4 3,604.5 3,652.8 3,625.8 3,435.7 4 Budget agency securities and mortgages 28.2 26.6 26.5 28.5 28.5 28.1 28.3 28.3 28.3 27.8 28.2 5 Nonfederal 10,076. r 10,662.5r 11,442. r 12,537.7r 12,537.7r 12,845.9r 13,133.4r 13,472.8r 13,764.5r 14,026.6 14,401.2 By instrument 6 Commercial paper 157.4 156.4 168.6 193.0 193.0 223.9 232.4 239.3 230.3 260.8 296.8 / Municipal securities and loans 1,293.5 1,296.0 1,367.5 1,464.3 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 8 Corporate bonds 1,344.1 1,460.4 1,610.9 1,829.6 1,829.6 1,898.1 1,970.0 2,020.7 2,059.5 2,106.0 2,144.5 y Bank loans n.e.c 863.6 934.1 1,040.5 1,148.8 1,148.8 1,165.2 1,178.5 1,202.9 1,231.5 1,259.1 1,306.4 10 Other loans and advances 736.9 770.4 839.5 913.8 913.8 957.4 956.0r 969.8r 985.3r 1,032.4 1,066.2 11 Mortgages 4,557.9r 4,833.6r 5,151.r 5,656.6r 5,656.6r 5,791.1r 5,946.2r 6,151.4r 6,299.4r 6,412.8 6,582.1 12 Home 3,510.5r 3,719.2r 3,971.5r 4,358.4r 4,358.4r 4,451.2r 4,564.4r 4,694.lr 4,791.3r 4,867.7 4,995.2 13 Multifamily residential 265.5 278.6r 286.9r 307.3r 307.3r 316.4r 324.6r 335.7r 347.7r 355.5 364.7 14 Commercial 697.3r 748.7r 802.3r 894.4r 894.4r 926. r 957.5r l,020.3r l,058.4r 1,085.8 1,115.5 15 Farm 84.6 87.1 90.3 96.5 96.5 97.4 99.6 101.4 102.0 103.7 106.7 16 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,331.7 1,319.3 1,340.4 1,370.1 1,426.2 1,416.2 1,453.6 By borrowing sector 17 Household 4,782.9r 5,105.3r 5,442.8r 5,924.6r 5,924.6r 6,004.8r 6,147.2r 6,313.3r 6,469. lr 6,541.9 6,710.9 18 Nonfinancial business 4,223.0r 4,493.7r 4,879.9r 5,413.3r 5,413.3r 5,617.9r 5,748.0r 5,917.lr 6,043.3r 6,227.4 6,423.6 iy Corporate 2,925.5r 3,107.7r 3,372.7r 3,788.5r 3,788.5r 3,970.3r 4,071.6r 4,207.6r 4,302.2r 4,457.6 4,617.5 20 Nonfarm noncorporate 1,152.4 1,236.1 1,351.1 1,460.9 1,460.9 1,485.2 1,510.2 1,540.9 1,572.0 1,599.7 1,629.9 21 Farm 145.1 149.9 156.1 163.8 163.8 162.4 166.1 168.6 169.0r 170.1 176.1 22 State and local government 1,070.2 1,063.4 1,119.5 1,199.8 1,199.8 1,223.2 1,238.2 1,242.4 l,252.1r 1,257.3 1,266.7 23 Foreign credit market debt held in United States 453.7r 542.2r 608.0r 651.4r 651.4r 659.2r 652.7r 672.9r 676.9r 704.6 698.9 24 Commercial paper 56.2 67.5 65.1 72.9 72.9 77.2 70.1 81.8 89.2 101.6 101.2 25 Bonds 299.4r 366.3r 421.1' 462.5r 462.5r 466.3r 466.4r 477.4r 416.1' 488.1 480.7 26 Bank loans n.e.c 34.6 43.7 52.1 58.9 58.9 59.1 60.5 58.8 59.4 63.3 64.8 27 Other loans and advances 63.6r 64.7r 63.0r 57.2r 51.2' 56.5r 55.8r 55.0r 51.7r 51.7 52.1 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,166.5r 14,986.4r 15,855.0r 16,941.3r 16,941.3r 17,264.7r 17,437.8r 17,778.5r 18,122.5r 18,384.7 18,564.0 Financial sectors 29 Total credit market debt owed by financial sectors 4,278.8 4,824.6 5,445.2 6,519.1 6,519.1 6,809.0 7,073.3 7,346.8r 7,607.0 7,744.5 7,970.9 By instrument 30 Federal government-related 2,376.8 2,608.3 2,821.1 3,292.0 3,292.0 3,434.1 3,580.7 3,745.9 3,884.0 3,940.3 4,032.0 31 Government-sponsored enterprise securities 806.5 896.9 995.3 1,273.6 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.0 1,676.7 32 Mortgage pool securities 1,570.3 1,711.4 1,825.8 2,018.4 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 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 3,227.1 3.374.9 3,492.6 3,601.0r 3,723.0 3,804.2 3,938.9 35 Open market paper 486.9 579.1 745.7 906.7 906.7 926.4 940.9 963.4 1,082.9 1,115.7 1,135.2 36 Corporate bonds 1,204.7 1,378.4 1,555.9 1,852.8 1,852.8 1,968.6 2,042.8 2,091.r 2,074.6 2,114.2 2,192.5 37 Bank loans n.e.c 51.4 64.0 77.2 107.2 107.2 104.1 106.8 105.2 92.9 91.4 93.6 38 Other loans and advances 135.0 162.9 198.5 288.7 288.7 299.1 328.6 365.4 395.8 404.4 436.7 39 Mortgages 24.1 31.9 46.8 71.6 71.6 76.6 73.6 75.9 76.7 78.5 81.0 By borrowing sector 40 Commercial banks 102.6 113.6 140.6 188.6 188.6 187.5 202.7 224.2 230.0 242.2 265.9 41 Bank holding companies 148.0 150.0 168.6 193.5 193.5 202.6 205.5 211.8r 219.3 221.4 229.3 42 Savings institutions 115.0 140.5 160.3 212.4 212.4 226.9 241.6 255.4 260.4 266.9 280.0 43 Credit unions .4 .4 .6 1.1 1.1 1.5 1.8 2.5 3.4 2.6 2.9 44 Life insurance companies .5 1.6 1.8 2.5 2.5 3.3 4.0 4.3 3.2 3.0 2.7 45 Government-sponsored enterprises 806.5 896.9 995.3 1,273.6 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.0 1,676.7 46 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 47 Issuers of asset-backed securities (ABSs) 712.5 863.3 1,076.6 1,398.0 1,398.0 1,463.1 1,539.9 1,599.1 1,632.0 1,665.8 1,716.0 48 Brokers and dealers 29.3 27.3 35.3 42.5 42.5 34.8 30.4 34.6 25.3 36.4 36.2 49 Finance companies 483.9 529.8 554.5 597.5 597.5 614.4 639.2 628.5 659.9 670.7 712.7 50 Mortgage companies 16.5 20.6 16.0 17.7 17.7 16.5 17.8 16.3 17.8 17.1 17.8 51 Real estate investment trusts (REITs) 44.6 56.5 96.1 158.8 158.8 165.2 160.3 162.2 165.1 167.9 170.4 52 Funding corporations 248.6 312.7 373.7 414.4 414.4 459.1 449.5 462.0 506.6 510.1 505.1 All sectors 53 Total credit market debt, domestic and foreign ... 18,445.3r 19,811.0r 21,300.2r 23,460.4r 23,460.4r 24,073.7r 24,511.1r 25,125.3r 25,729.5r 26,129.2 26,534.9 54 Open market paper 700.4 803.0 979.4 1,172.6 1,172.6 1,227.6 1,243.3 1,284.5 1.402.4 1,478.1 1,533.3 55 U.S. government securities 6,013.6 6,390.0 6,626.0 7,044.3 7,044.3 7,193.8 7,232.4 7,378.6 7,565.0 7,593.8 7,496.0 56 Municipal securities 1,293.5 1,296.0 1,367.5 1,464.3 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 57 Corporate and foreign bonds 2,848. lr 3,205. lr 3,594.5r 4,144.9r 4,144.9r 4,333.0r 4,479.2r 4,589. lr 4,610.8r 4,708.3 4,817.7 58 Bank loans n.e.c 949.6 1,041.7 1,169.8 1,314.9 1,314.9 1,328.3 1,345.7 1,366.9 1,383.8 1,413.7 1,464.7 59 Other loans and advances 935.4r 998.0r l,101.0r l,259.6r l,259.6r l,313.0r l,340.3r l,390.1r l,432.7r 1,488.5 1,555.0 60 Mortgages 4,581.9r 4,865.5r 5,197.9r 5,728.2r 5,728.2r 5,867.7r 6,019.8r 6,227.3r 6,376. lr 6,491.3 6,663.1 61 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,331.7 1,319.3 1,340.4 1,370.1 1,426.2 1,416.2 1,453.6 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 7 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1998 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Q4 Ql Q2 Q3r Q4r Qir Q2 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,445.3r 19,811.0r 21,300.2r 23,460.4r 23,460.4r 24,073.7r 24,511.1r 25,125.3 25,729.5 26,129.2 26,534.9 ? Domestic nonfederal nonfinancial sectors 2,905.5r 3,031.3r 3,004.7r 3,108.2r 3,108.2r 3,208.2r 3,277.3r 3,343.4 3,474.9 3,418.7 3,459.0 Household l,944.3r 2,118.3r 2,106.4r 2,061.4r 2,061.4r 2,133.5r 2,172.2r 2,235.9 2,353.9 2,304.6 2,319.1 4 Nonfinancial corporate business 280.4 270.2 257.5 271.5 271.5 266. lr 273.3r 288.4 300.7 293.0 305.2 Nonfarm noncorporate business 42.3 38.0 35.9 35.9 35.9 36.6 36.9 37.1 37.5 38.1 38.8 6 State and local governments 638.6 604.8 605.0 739.4 739.4 772.1 794.8 781.9 782.8 782.9 795.8 7 207.5r 200.2r 205.5r 219.1r 219.1r 223.3r 225.0r 260.7 258.0 259.6 261.6 8 Rest of the world 1,531.1 1,926.6 2,257.3r 2,539.8r 2.539.81 2,608.3r 2.621.31 2,718.1 2,678.0 2,765.9 2,809.7 9 13,801.1r 14,652.9r 15,832.7r 17,593.3r 17,593.3r 18,033.8r 18,387.5r 18,803.0 19,318.6 19,685.1 20,004.6 10 Monetary authority 380.8 393.1 431.4 452.5 452.5 466.0 485.1 489.3 478.1 501.9 505.1 11 Commercial banking 3,520.1 3,707.7 4,031.9 4,335.7 4,335.7 4,338.4 4,383.4 4,488.3 4,643.9 4,725.0 4,847.4 1? U.S.-chartered banks 3,056.1 3,175.8 3,450.7 3,761.2 3,761.2 3,782.9 3,847.6 3,944.3 4,078.9 4,171.3 4,295.4 N Foreign banking offices in United States 412.6 475.8 516.1 504.2 504.2 487.8 465.7 475.3 484.1 482.0 478.1 14 Bank holding companies 18.0 22.0 27.4 26.5 26.5 25.0 25.1 22.0 32.7 22.1 23.0 N Banks in U.S.-affiliated areas 33.4 34.1 37.8 43.8 43.8 42.7 45.0 46.7 48.3 49.6 51.0 16 Savings institutions 913.3 933.2 928.5 964.8 964.8 990.8 1,011.4 1,030.8 1,033.4 1,044.5 1,061.7 17 263.0 288.5 305.3 324.2 324.2 330.2 341.0 348.5 351.7 360.0 372.9 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 194.1 192.2 190.1 188.0 185.7 183.3 180.8 19 Life insurance companies 1,587.5 1,657.0 1,751.1 1,828.0 1,828.0 1,853.5 1,869.6 1,880.4 1,886.0 1,901.5 1,913.9 ?n Other insurance companies 468.7 491.2 515.3 535.7 535.7 530.8 537.5 533.9 531.6 528.0 524.6 ? ? I ? P St r a iv te a t a e n d p e lo n c s a io l n g o f v u e n rn d m s ent retirement funds 6 53 3 1 3 . . 0 lr 6 56 2 8 7 . . 2 3 r 6 63 4 2 6 . . 0 8 r 7 7 0 0 4 3 . . 7 6 r r 7 70 0 3 4 . . 6 7 r r 7 7 1 2 9 2 . . 0 6 1 r 7 7 4 2 0 8 . . 7 9 r r 7 7 4 3 8 8 . . 7 9 7 7 6 5 2 3 . . 2 4 7 7 7 6 3 7 . . 7 2 7 77 7 1 3 . . 5 8 7 7 3 4 Money market mutual funds 7 5 7 4 1 5 . . 3 5 6 82 3 0 4 . . 2 3 7 90 2 1 1 . . 1 9 1, 9 0 6 2 5 5 . . 9 9 1, 9 0 6 2 5 5 . . 9 9 1 1, , 0 0 5 3 0 6 . . 8 2 1 l, , 0 0 8 0 3 1 . . 7 8 r 1 1 , , 0 0 4 8 9 3 . . 7 0 1 1 , , 1 0 4 73 7 . . 1 8 1 1 , , 2 0 1 5 7 3 . . 1 0 1 1 , , 1 0 5 7 9 0 . . 4 9 ?5 96.4 101.1 98.3 102.8 102.8 103.6 104.3 105.1 105.9 106.7 107.4 76 Government-sponsored enterprises 750.0 807.9 902.2 l,163.9r l,163.9r 1,203.r l,268.4r 1,340.2 1,399.5 1,426.4 1,481.7 71 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 ?8 Asset-backed securities issuers (ABSs) 653.4 773.9 937.7 1,219.4 1,219.4 1,280.1 1,352.7 1,409.8 1,435.3 1,463.9 1,505.4 ?9 Finance companies 526.2 544.5 566.4 618.4 618.4 639.9 660.9 678.2 713.3 747.0 782.2 30 Mortgage companies 33.0 41.2 32.1 35.3 35.3 33.0 35.6 32.5 35.6 34.1 35.5 31 Real estate investment trusts (REITs) 26.0 30.4 50.6 45.5 45.5 45.9 45.3 44.7 42.9 38.8 38.2 3? 183.4 167.7 182.6 189.4 189.4 211.4 162.9 167.0 158.6 201.1 188.2 33 Funding corporations 108.4r 122.0r 164.7r 165.2r 165.2r 174. LR 201.4r 200.1 288.4 289.6 328.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,445.3r 19,811.0r 21,300.2r 23,460.4r 23,460.4r 24,073.7r 24,511.1r 25,125.3 25,729.5 26,129.2 26,534.9 Other liabilities 35 Official foreign exchange 63.7 53.7 48.9 60.1 60.1 53.6 50.9 52.1 50.1 4499..44 4466..55 36 Special drawing rights certificates 10.2 9.7 9.2 9.2 9.2 8.2 8.2 7.2 6.2 6.2 4.2 37 Treasury currency 18.2 18.3 18.3 18.3 18.3 18.3 18.8 19.3 18.3 18.8 18.1 38 418.8 521.7r 619.7r 639.0r 639.0r 667.4r 694.9r 712.3 725.8 790.4 790.2 39 290.7 240.8 219.4 189.0 189.0 182.0 207. LR 198.9 203.2 165.6 219.5 40 Checkable deposits and currency 1,229. lr l,244.8r L,286.1r l,333.4r l,333.4r l,310.5r l,353.1r 1,353.8 1,484.8 1,392.9 1,410.7 41 Small time and savings deposits 2,279.7 2,377.0 2,474.1 2,626.5 2,626.5 2,637.6 2,644.6 2,665.9 2,671.2 2,729.2 2,740.5 4? 476.9 590.9 713.4 805.5 805.5 804.3 809.0 837.5 936.1 966.5 987.4 43 Money market fund shares 741.3r 886.7r l,042.5r l,329.7r l,329.7r 1,411.7r l,393.5r 1,444.9 1,578.8 1,666.0 1,627.1 44 Security repurchase agreements 660.0 701.5 822.4 913.7 913.7 980.3 970.8 999.3 1,085.4 1,155.8 1,186.2 45 Mutual fund shares 1,852.8 2,342.4 2,989.4 3,610.5 3,610.5 3,758.LR 4,049.1 3,931.5 4,553.4 4,864.5 4,740.7 46 305.7 358.1 469.1 572.3 572.3 552.7 589.3 593.2 665.9 803.7 770.8 4477 566.2 610.6 665.0 718.3 718.3 735.9r 749.8 756.2 783.9 796.9 802.8 4488 5,812.7r 6,548.4r 7,817.1r 8,912.7r 8,912.7r 9,064.9r 9,479.5r 9,150.5 9,999.4 10,227.4 10,139.0 49 1,698.0 L,812.1r 1,943.3 l,970.3r l,970.3r l,973.9r 2,038. LR 2,098.4 2,152.6 2,179.6 2,233.3 50 Taxes payable 107.6 123.6 139.2 151.0 151.0 158.2r 160.6r 165.3 166.4 180.3 178.0 51 Investment in bank personal trusts 803.0 871.7 942.5 1,001.0 1,001.0 1,012.5 1,059.8 998.3 1,116.6 1,135.2 1,085.0 52 Miscellaneous 5,838.0r 6,231.3r 6,571.9r 7,133.9r 7,133.9r 7,131.6r 7,310.8r 7,318.7 7,638.2 7,851.6 8,059.6 53 Total liabilities 41,617.9r 45,354.2r 50,091.7r 55,454.8r 5S,4S4.8r 56,535.3r S8,099.0r 58,428.7 61,565.7 63,109.3 63,574.5 Financial assets not included in liabilities ( + ) 54 Gold and special drawing rights 22.1 21.4 21.1 21.6 21.6 20.7 20.8 21.3 21.4 2211..44 2211..55 55 8,495.7 10,255.8 13,201.3r 15,427.8r 15,427.8r 15,919.1r 17,060.4r 16,214.9 19,576.3 20,231.8 19,298.5 56 Household equity in noncorporate business 3,671.6r 3,876.6r 4,151. lr 4,400.8r 4,400.8r 4,460.5r 4,523.0r 4,582.8 4,643.5 4,695.1 4,764.9 Liabilities not identified as assets (—) 57 Treasury currency -5.8 -6.7 -7.3 -8.0 -8.0 -8.4 -8.2 --88..22 --99..77 --1100..22 --1111..99 58 360.2 437.0r 538.3r 548.2r 548.2r 560.5r 584.5r 591.1 614.9 659.7 642.9 59 -9.0 -10.6 -32.2 -27.0 -27.0 -11.3 -10.6 -13.2 -25.5 -13.9 -11.5 60 Security repurchase agreements 107.4r 111.5r 175.8r 237.2r 237.2r 296.7r 308.2r 327.7 269.3 413.4 408.8 61 62.4 76.7 92.3 101.5 101.5 89.2r 110.3r 94.2 94.5 88.9 101.1 62 Miscellaneous -l,167.5r -l,630.7r — l,996.0r —2,539.2r -2,539.2r —2,755.0r —2,824.4r -3,133.2 -3,008.0 -3,149.6 -3,169.7 Floats not included in assets (—) 63 Federal government checkable deposits 3.1 -1.6 -8.1 -3.9 -3.9 -7.2 -12.4 -10.2 -9.9 --66..55 --55..22 64 Other checkable deposits 34.2 30.1 26.2 23.1 23.1 18.9 22.1 14.5 22.3 18.7 22.5 65 Trade credit 196.8r 174.6r 135.5r 94.5r 94.5r 56.3r 30.8r 44.7 141.7 92.6 73.1 66 Total identified to sectors as assets 54,225.6r 60,327.7r 68,540.7r 76,878.6r 76,878.6r 78,696.0r 81,502.8r 81,340.1 87,717.2 89,964.3 89,609.3 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • October 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 Nov. Dec. Jan. Feb. Mar. Apr. Mayr June Julyp 1 Industrial production1 127.1 132.4 137.1 139.4 140.1 141.1 141.6 142.4 143.5 144.4 144.8 145.3 Market groupings 2 Products, total 119.6 123.7 126.5 128.0 128.5 129.7 130.1 130.3 113311..00rr 131.0 131.0 131.3 3 Final, total 121.1 125.4 128.0 129.8 130.3 131.6 131.8 132.0 132.8 133.0 133.2 133.6 4 Consumer goods 115.1 116.2 116.9 117.6 118.1 118.8 118.7 118.0 118.6 118.5 118.5 117.9 5 Equipment 132.1 142.7 148.9 151.4 151.8 154.2 155.0 156.9 158.lr 158.9 159.4 161.9 6 Intermediate 115.3 118.8 122.1 122.4 123.1 123.7 124.8 125.1 125.3r 124.8 124.2 124.3 7 Materials 139.0 146.5 154.8 158.8 159.7 160.5 161.2 163.1 165.0r 167.6 168.7 169.6 Industry groupings 8 Manufacturing 130.1 136.4 142.3 145.0 145.6 146.7 147.2 148.4 149.3 150.2 150.7 151.6 9 Capacity utilization, manufacturing (percent)2. . 82.4 80.9 79.8 80.3 80.3 80.7 80.7 81.1 81.3 81.4 81.4 81.6 10 Construction contracts3 144.1 161.2r 177.3r 176.0r 175.0r HSU1" 179.0r 192.0r 184.0r 171.0 178.0 172.0 11 Nonagricultural employment, total4 120.3 123.4 126.2 127.3 127.5 127.9 128.0 128.5 128.9 129.1 129.1 129.0 12 Goods-producing, total 101.2 102.7 102.3 103.5 103.6 104.1 103.9 104.3 104.3 104.1 104.2 104.4 13 Manufacturing, total 98.3 98.8 97.0 97.3 97.3 97.4 97.2 97.3 97.3 97.3 97.3 97.6 14 Manufacturing, production workers 99.6 99.8 97.8 98.1 98.1 98.2 98.0 97.9 98.0 97.9 97.9 98.3 15 Service-producing 126.5 130.0 133.8 134.9 135.2 135.5 135.7 136.2 136.8 137.0 137.1 136.9 16 Personal income, total 175.lr 186.5r 196.6 201.3 201.7r 203.3r 204.4r 206.0r 207.r 207.7 208.6 209.1 17 Wages and salary disbursements 171.3 184.6r 196.9r 201.4r 202.7 204.3r 205.2r 206.4r 208. lr 208.1 209.4 210.5 18 Manufacturing 144.6 152.3r 157.4r 159.7r 159.8r 161.lr 161.6r 162.0r 163.5r 162.6 163.8 164.7 19 Disposable personal income5 172.5r 182.7r 191.9 196.0r 196.1r 197.4r 198.3r 199.8r 200.7r 201.2 201.8 202.4 20 Retail sales5 169.8 178.4 194.6r 200.8 204.0 205.5 208.3 209.3 208.3 208.5 209.4 211.0 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 168.3 168.3 168.7 169.7 171.1 171.2 171.3 172.3 172.6 22 Producer finished goods (1982=100) 131.8 130.7 133.0 134.9 134.9 134.7 136.0 136.8r 137.0 137.5 138.4 138.3 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 Dec. Jan. Feb. Mar. Apr. Mayr June Julyp HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 140,108 140,910 141,165 140,867 141,230 140,489 140,762 140,399 Employment 7 126,159 128,085 130,207 131,141 131,850 131,954 131,801 132,351 131,417 131,858 131,450 3 Agriculture 3,399 3,378 3,281 3,279 3,371 3,408 3,359 3,355 3,298 3,321 3,299 Unemployment 4 6,739 66,,221100 5,880 55,,668888 55,,668899 55,,880044 5,708 5,524 5,774 5,583 5,650 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.1 4.0 4.1 4.1 3.9 4.1 4.0 4.0 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 130,038 130,387 130,482 131,009 131,419 131,590 131,620 131,512 7 Manufacturing 18,675 18,772 18,431 18,479 18,495 18,473 18,476 18,492 18,479 18,492 18,538 8 Mining 596 590 535 530 530 533 536 539 539 539 540 9 Contract construction 5,691 5,985 6,273 6,552 6,652 6,618 6,726 6,694 6,666 6,668 6,674 10 Transportation and public utilities 6,408 6,600 6,792 6,911 6,925 6,937 6,953 6,970 6,962 6,985 7,005 11 Trade 28,614 29,127 29,792 29,938 29,978 29,989 30,044r 30,252 30,112 30,162 30,221 12 Finance 7,109 7,407 7,632 7,613 7,612 7,624 7,621 7,610 7,600 7,589 7,596 13 Service 36,040 37,526 39,000 39,707 39,844 39,914 40,090 40,195 40,220 40,385 40,384 14 Government 19,557 19,819 20,161 20,308 20.351 20,394 20,547 20,667 21,012 20,800 20,554 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 Ql Q2r Q3 Q4 Ql Q2 Q3 Q4 Ql Q2r 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 81.5 82.2 2 Manufacturing 142.5 144.9 147.4 150.1 178.7 180.6 182.4 184.4 79.7 80.3 80.8 81.4 3 Primary processing3 123.4 125.4 126.0 125.7 149.0 149.8 150.4 150.9 82.8 83.7 83.8 83.3 4 Advanced processing4 152.5 155.2 158.7 162.9 193.7 196.1 198.7 201.6 78.7 79.1 79.9 80.8 5 Durable goods 174.4 177.4 182.5 188.7 217.6 221.0 224.8 229.1 80.2 80.3 81.2 82.4 6 Lumber and products 120.5 120.6 121.3 119.0 147.4 148.4 149.0 149.1 81.7 81.2 81.4 79.8 7 Primary metals 128.7 130.9 132.4 133.3 149.3 150.1 150.7 151.5 86.2 87.2 87.9 88.0 8 Iron and steel 126.6 129.1 130.9 132.3 151.3 152.5 153.5 154.4 83.7 84.6 85.3 85.7 9 Nonferrous 131.2 133.3 134.3 134.4 147.0 147.2 147.5 148.0 89.3 90.5 91.0 90.8 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 400.9 419.0 458.1 512.7 498.5 514.6 537.2 570.7 80.4 81.4 85.3 89.8 12. Motor vehicles and parts 153.3 154.7 155.2 157.9 184.9 185.0 185.7 186.7 82.9 83.6 83.6 84.6 13 Aerospace and miscellaneous transportation equipment . . . 93.8 89.9 88.0 86.6 126.2 125.8 125.2 124.5 74.3 71.5 70.3 69.5 14 Nondurable goods 111.5 113.4 113.7 113.3 139.9 140.3 140.5 140.6 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 83.1 16 Paper and products 116.0 117.9 117.0 116.7 135.3 136.1 136.6 136.7 85.7 86.6 85.6 85.4 17 Chemicals and products 117.0 121.8 121.7 120.3 150.7 151.0 151.4 151.7 77.6 80.7 80.4 79.3 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 99.5 100.4 101.4 120.2 120.2 119.8 119.3 81.7 82.8 83.8 85.0 21 Utilities 118.4 113.2 113.6 115.8 127.8 128.2 128.6 129.0 92.7 88.3 88.3 89.8 22 Electric 120.8 116.5 115.5 118.5 125.6 126.1 126.6 127.1 96.2 92.4 91.2 93.2 1973 1975 Previous cycle5 Latest cycle6 1999 2000 High Low High Low High Low July Feb. Mar. Apr/ Mayr June Julyp Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.7 81.5 81.7 82.0 82.3 82.2 82.3 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.7 80.7 81.1 81.3 81.4 81.4 81.6 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 82.9 83.7 83.7 83.8 83.3 83.0 83.2 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 78.6 79.7 80.2 80.5 80.9 81.0 81.2 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 80.3 80.9 81.6 82.1 82.5 82.5 82.5 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 82.7 81.3 80.8 81.0 80.2 78.2 78.6 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 85.9 86.9 88.5 88.5 87.8 87.7 87.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 83.7 84.1 86.4 86.1 85.4 85.6 84.8 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 88.6 90.3 91.1 91.5 90.6 90.3 90.6 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 81.5 82.5 83.0 83.4 83.5 83.6 84.0 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 80.9 84.9 86.9 88.7 90.2 90.6 91.4 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 82.3 82.6 83.6 83.9 85.4 84.5 79.6 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 74.9 69.9 70.4 69.8 69.1 69.7 70.5 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 79.4 81.0 80.9 80.8 80.5 80.5 80.8 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 85.3 84.0 84.6 84.4 82.5 82.3 82.3 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 85.2 85.3 85.9 86.2 84.9 85.2 85.2 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.9 80.8 80.0 79.3 79.3 79.4 79.5 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 90.9 102.4 91.3 93.4 93.0 92.0 89.4 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 93.9 93.7 96.1 94.8 95.6 93.9 94.8 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 81.3 83.5 84.7 84.7 84.7 85.6 87.2 21 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 93.9 89.7 86.1 89.2 91.3 88.9 85.9 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 97.7 91.7 90.3 92.9 94.5 92.2 88.3 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 • October 2000 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp pro- 1999 por- avg. tion July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr/ Mayr June Julyp Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.1 137.4 137.7 138.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.4 144.8 145.3 2 Products 60.5 126.5 126.9 127.6 127.6 128.5 128.0 128.5 129.7 130.1 130.3 131.0 131.0 131.0 131.3 3 Final products 46.3 128.0 128.6 129.5 129.1 130.2 129.8 130.3 131.6 131.8 132.0 132.8 133.0 133.2 133.6 4 Consumer goods, total 29.1 116.9 116.8 117.6 117.1 118.2 117.6 118.1 118.8 118.7 118.0 118.6 118.5 118.5 117.9 5 Durable consumer goods 6.1 152.6 153.4 155.5 153.5 157.4 154.4 155.7 158.9 156.4 156.8 159.1 157.3 158.7 153.4 6 Automotive products 2.6 144.7 143.7 150.6 145.5 147.9 146.2 144.4 149.1 145.4 146.0 148.7 146.8 149.5 139.6 7 Autos and trucks 1.7 151.8 148.9 162.9 152.8 155.1 154.3 148.7 155.0 150.7 151.9 155.8 154.0 157.2 139.8 8 Autos, consumer .9 102.6 102.4 105.0 105.5 103.9 107.2 99.8 105.4 105.0 103.1 107.4 106.2 105.5 100.3 9 Trucks, consumer .7 202.4 197.2 221.6 201.9 207.8 203.6 199.0 206.3 198.3 202.3 206.2 203.8 210.5 181.9 10 Auto parts and allied goods .... .9 133.9 135.3 132.8 134.4 136.7 133.8 137.1 139.6 136.9 136.6 137.6 135.7 137.5 137.4 11 Other 3.5 158.6 161.1 158.7 159.7 165.0 160.7 164.9 166.6 165.4 165.5 167.5 165.7 166.0 165.1 12 Appliances, televisions, and air conditioners 1.0 324.3 329.9 319.0 326.3 363.1 348.4 357.6 361.6 362.8 367.3 373.3 370.0 375.6 365.4 13 Carpeting and furniture .8 121.7 124.1 122.1 124.1 124.8 117.4 123.0 126.9 122.6 122.6 125.0 123.1 124.5 124.6 14 Miscellaneous home goods 1.6 114.7 115.9 115.4 114.4 114.8 115.0 116.7 116.6 116.6 115.9 116.5 115.4 114.0 114.3 15 Nondurable consumer goods 23.0 108.7 108.3 108.9 108.7 109.3 109.1 109.5 109.7 110.0 109.1 109.4 109.6 109.3 109.6 16 Foods and tobacco 10.3 107.3 106.7 106.5 106.2 106.8 107.3 107.4 107.6 107.9 107.8 108.3 107.8 107.8 108.3 17 Clothing 2.4 90.6 89.2 90.1 89.9 89.4 90.6 89.1 89.3 89.6 89.2 89.5 88.9 87.0 87.5 18 Chemical products 4.5 121.8 119.4 122.7 120.9 123.1 126.0 126.5 125.8 125.1 125.8 124.2 124.7 125.5 126.1 19 Paper products 2.9 102.3 102.0 103.2 104.7 106.3 105.1 103.1 104.3 104.5 103.0 103.3 103.4 105.4 106.5 20 Energy 2.9 114.0 118.6 116.6 117.6 114.5 106.7 112.0 113.0 114.8 108.8 111.1 114.4 110.3 108.2 21 Fuels .8 111.3 111.1 110.0 112.0 112.4 110.1 111.7 108.4 111.5 114.8 112.3 113.3 112.0 112.7 22 Residential utilities 2.1 115.0 121.7 119.3 119.7 114.9 104.3 111.6 114.6 115.8 105.2 109.9 114.3 108.9 105.2 23 Equipment 17.2 148.9 149.3 150.5 150.2 151.2 151.4 151.8 154.2 155.0 156.9 158.1 158.9 159.4 161.9 24 Business equipment 13.2 171.6 172.6 173.9 173.7 174.8 175.0 175.5 179.4 180.6 183.0 185.0 185.8 186.2 188.6 25 Information processing and related 5.4 248.6 253.8 259.9 261.3 265.6 266.7 270.1 277.9 281.2 285.7 290.3 295.2 297.3 305.0 26 Computer and office equipment 1.1 840.1 851.9 892.8 926.9 950.5 970.0 985.6 1,015.3 1,059.5 1,093.5 1,126.1 1,156.4 1,184.5 1,214.1 27 Industrial 4.0 135.3 135.4 133.6 133.9 134.9 134.6 135.0 138.4 140.1 140.0 140.1 140.4 139.7 141.6 28 Transit 2.5 126.9 127.5 128.1 124.0 122.3 121.2 118.5 119.9 117.6 118.7 118.7 116.2 115.3 113.1 29 Autos and trucks 1.2 131.4 131.2 135.3 132.0 133.4 134.2 127.8 134.3 134.0 133.9 136.9 135.2 134.3 125.9 30 Other 1.3 131.4 123.8 123.2 126.4 125.1 127.5 128.1 126.8 128.6 136.4 140.9 140.1 142.2 143.0 31 Defense and space equipment 3.3 74.4 74.5 74.7 73.6 73.7 73.0 72.4 70.6 69.7 69.8 69.3 69.3 70.4 71.8 32 Oil and gas well drilling .6 106.8 102.0 107.1 111.3 115.7 121.3 124.3 125.5 129.9 130.6 129.0 135.0 134.0 145.2 33 Manufactured homes .2 155.2 151.5 151.3 144.4 142.6 139.3 138.3 135.4 129.6 129.3 123.4 122.0 120.0 117.7 34 Intermediate products, total 14.2 122.1 121.5 121.7 122.6 123.2 122.4 123.1 123.7 124.8 125.1 125.3 124.8 124.2 124.3 35 Construction supplies 5.3 133.4 133.2 132.9 134.1 135.4 134.3 134.9 136.4 137.5 139.0 139.2 137.4 136.7 137.1 36 Business supplies 8.9 115.3 114.6 115.1 115.8 115.9 115.2 116.0 116.1 117.2 116.9 117.1 117.4 116.8 116.6 37 Materials 39.5 154.8 155.0 154.6 155.7 156.8 158.8 159.7 160.5 161.2 163.1 165.0 167.6 168.7 169.6 38 Durable goods materials 20.8 198.9 200.3 199.9 202.3 203.4 206.7 208.8 211.7 213.1 217.5 220.6 226.2 228.6 231.2 39 Durable consumer parts 4.0 150.7 153.9 147.2 156.0 153.7 154.8 155.0 156.0 153.1 154.7 152.8 159.6 157.4 156.4 40 Equipment parts 7.6 360.9 364.6 369.0 371.4 377.5 386.8 394.9 404.9 418.0 435.4 453.2 470.7 486.4 499.0 41 Other 9.2 131.3 131.1 131.6 131.2 131.7 133.4 134.0 134.8 134.1 134.7 134.6 134.9 134.7 135.4 42 Basic metal materials 3.1 121.8 122.8 123.3 122.1 123.5 125.6 126.3 126.2 124.2 126.3 126.9 126.3 125.8 125.9 43 Nondurable goods materials 8.9 114.6 114.5 114.4 114.7 117.4 119.1 118.7 117.0 117.6 116.8 116.6 116.5 116.2 116.3 44 Textile materials 1.1 101.0 101.2 101.1 100.3 102.3 103.3 100.9 99.3 101.9 102.7 100.7 100.2 100.4 100.4 45 Paper materials 1.8 117.0 116.3 116.3 118.6 118.5 119.3 118.5 117.9 116.6 118.3 119.3 117.4 118.7 117.4 46 Chemical materials 3.9 117.3 117.7 117.4 117.7 122.0 125.1 124.2 122.1 124.5 121.5 121.5 122.4 121.4 121.5 47 Other 2.1 113.5 113.0 113.2 112.5 114.9 114.9 116.8 114.8 112.7 113.3 112.3 112.1 111.8 112.9 48 Energy materials 9.7 101.7 102.9 102.3 101.8 101.5 101.6 101.4 101.2 100.5 100.6 102.5 102.6 102.5 101.7 49 Primary energy 6.3 99.2 100.2 100.3 99.6 98.8 100.1 99.5 98.3 96.7 98.0 100.4 100.4 100.9 100.7 50 Converted fuel materials 3.3 107.0 108.0 106.1 106.1 106.5 104.1 104.8 106.8 108.2 105.5 106.6 106.5 105.4 103.1 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.0 137.3 137.4 138.0 138.9 139.3 140.2 141.0 141.6 142.4 143.5 144.5 144.8 145.7 52 Total excluding motor vehicles and parts 95.1 136.4 136.7 137.1 137.2 138.3 138.7 139.5 140.4 141.1 141.8 143.0 143.7 144.2 145.2 53 Total excluding computer and office equipment 98.2 131.1 131.2 131.4 131.5 132.4 132.7 133.2 134.1 134.4 135.0 136.0 136.7 136.9 137.3 54 Consumer goods excluding autos and trucks . 27.4 115.0 115.0 115.2 115.2 116.3 115.6 116.4 116.9 117.0 116.2 116.6 116.6 116.5 116.6 55 Consumer goods excluding energy 26.2 117.3 116.6 117.7 117.1 118.7 118.8 118.8 119.5 119.1 119.0 119.5 119.0 119.4 119.0 56 Business equipment excluding autos and trucks 12.0 176.2 177.4 178.3 178.5 179.5 179.7 181.1 184.5 186.0 188.7 190.5 191.7 192.2 196.1 57 Business equipment excluding computer and office equipment 12.1 143.8 144.4 144.6 143.6 144.0 143.7 143.8 146.8 146.9 148.4 149.4 149.5 149.2 150.8 58 Materials excluding energy 29.8 172.0 171.6 171.3 173.0 174.7 177.4 178.6 179.8 181.0 183.5 185.5 189.0 190.5 192.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued 1992 Group SIC pro- 1999 code por- avg. July Aug. Sept. Apr.r Mayr June Julyp Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.1 137.4 137.7 138.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.4 144.8 145.3 60 Manufacturing 85.4 142.3 142.0 142.5 142.9 144.2 145.0 145.6 146.7 147.2 148.4 149.3 150.2 150.7 151.6 61 Primary processing 26.5 123.3 123.3 123.4 123.6 124.8 125.6 125.9 126.0 125.9 126.1 126.3 125.6 125.3 125.7 62 Advanced processing 58.9 151.8 151.8 152.6 153.1 154.5 155.2 155.9 157.5 158.4 160.1 161.5 163.1 164.2 165.2 63 Durable goods 45.0 172.8 173.8 174.4 175.0 176.5 177.4 178.4 181.0 181.8 184.6 186.8 189.0 190.3 191.4 64 Lumber and products " ' 24 2.0 121.6 121.5 120.2 119.7 120.5 119.8 121.4 122.1 121.2 120.5 120.8 119.6 116.5 117.1 65 Furniture and fixtures 25 1.4 125.5 125.7 126.4 127.9 127.0 125.2 128.6 126.9 126.8 126.3 126.4 128.1 128.1 128.2 66 Stone, clay, and glass products 32 2.1 130.5 129.3 130.2 129.6 131.2 132.4 131.4 130.9 131.7 132.7 131.9 132.0 131.8 132.5 67 Primary metals 33 3.1 126.6 128.0 129.6 128.3 129.0 131.1 132.8 132.8 130.9 133.6 133.8 132.9 133.0 132.8 68 Iron and steel 331,2 1.7 123.2 126.2 127.6 125.9 124.9 130.7 131.7 130.8 129.1 132.9 132.7 131.9 132.4 131.5 69 Raw steel 331PT .1 113.3 111.1 115.9 112.4 121.8 124.0 124.2 123.1 118.7 121.1 124.1 123.9 124.6 122.7 70 Nonferrous 333-6,9 1.4 130.9 130.2 132.1 131.4 134.0 131.7 134.1 135.2 133.2 134.5 135.3 134.1 133.8 134.4 71 Fabricated metal products . . 34 5.0 128.7 128.6 128.5 128.4 128.8 129.7 129.0 130.8 130.4 130.6 131.0 131.4 131.3 131.8 72 Industrial machinery and equipment 35 8.0 230.1 230.0 231.4 235.5 238.3 239.7 241.8 247.7 252.6 256.7 260.5 263.3 266.1 269.7 73 Computer and office equipment 357 1.8 1,061.4 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 1,540.0 74 Electrical machinery 36 7.3 390.2 399.2 401.3 402.1 412.6 418.1 426.4 443.5 455.6 475.2 494.8 514.3 528.9 543.6 75 Transportation equipment. . . 37 9.5 122.4 122.9 122.9 123.1 122.3 121.8 120.4 121.7 119.6 120.9 120.7 121.7 121.3 117.6 76 Motor vehicles and parts . 371 4.9 151.0 152.2 152.2 155.6 155.7 155.8 152.7 156.6 153.4 155.6 156.2 159.5 158.0 149.2 77 Autos and light trucks . 371PT 2.6 137.8 135.8 146.8 139.4 140.7 141.0 135.0 141.0 137.7 138.1 142.1 140.5 142.7 128.6 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.9 94.7 94.7 92.2 90.6 89.5 89.7 88.6 87.5 88.0 87.0 86.1 86.6 87.5 79 Instruments 38 5.4 116.5 117.2 117.7 117.2 118.3 118.9 119.7 118.4 117.3 117.4 117.3 117.4 117.3 119.7 80 Miscellaneous 39 1.3 124.7 125.2 125.2 125.1 125.0 125.0 126.4 126.9 125.5 124.8 125.2 124.5 124.4 125.1 8 8 2 1 No F n o d o u d ra s b le goods 20 40 9 . . 4 4 1 1 1 1 0 1 . . 1 8 1 11 0 1 8 . . 0 9 1 1 1 0 1 8 . . 5 9 1 11 0 1 9 . . 8 6 1 1 1 1 0 3 . . 1 0 1 1 1 1 0 3 . . 3 6 1 1 1 1 3 0 . . 7 0 1 1 0 1 9 3. . 5 8 1 1 1 1 0 3 . . 7 8 1 11 1 3 1 . . 6 1 1 11 1 3 1 . . 5 6 1 11 1 3 1 . . 2 1 1 1 1 1 3 1 . . 1 3 1 1 1 1 1 3 . . 5 7 83 Tobacco products 21 1.6 94.3 96.0 94.8 90.9 91.9 93.1 94.7 96.7 94.5 91.4 92.7 92.4 90.9 92.9 84 Textile mill products 22 1.8 110.9 112.3 111.7 110.8 112.7 111.4 110.1 111.5 110.8 111.6 111.3 108.8 108.6 108.6 85 Apparel products 23 2.2 90.7 89.8 89.2 89.0 89.1 89.1 89.1 89.0 89.7 89.5 90.1 88.8 86.9 87.8 86 Paper and products 26 3.6 116.2 115.0 115.8 117.2 118.0 118.1 117.7 117.1 116.5 117.3 117.8 116.0 116.4 116.4 87 Printing and publishing .... 27 6.7 104.4 102.8 103.6 104.6 106.0 105.7 105.3 105.3 105.7 105.9 105.4 105.8 105.9 106.6 88 Chemicals and products .... 28 9.9 117.5 115.8 117.7 117.4 119.8 122.7 122.9 121.6 122.4 121.2 120.2 120.3 120.5 120.8 89 Petroleum products 29 1.4 114.7 115.1 114.1 114.6 114.5 112.8 114.9 113.2 115.6 118.7 117.1 118.2 116.1 117.3 90 Rubber and plastic products . 30 3.5 137.7 138.0 137.6 139.3 138.9 139.3 141.4 142.2 141.2 140.5 141.6 140.4 141.4 142.5 91 Leather and products 31 .3 69.8 69.1 70.2 69.5 68.2 67.7 65.4 68.1 66.2 64.6 63.7 64.5 63.9 63.5 92 Mining 6.9 98.0 97.8 98.5 98.3 99.2 99.7 99.5 99.7 100.0 101.3 101.2 101.1 102.0 103.7 93 Metal " 10 .5 97.1 96.2 93.0 91.4 94.2 94.5 95.2 95.5 94.1 92.7 93.4 92.4 90.8 91.3 94 Coal 12 1.0 108.1 110.0 110.7 109.4 108.8 110.0 109.5 106.3 101.9 109.3 112.0 110.1 114.4 117.5 95 Oil and gas extraction 13 4.8 92.5 92.3 93.2 93.0 94.0 94.5 94.6 95.7 96.2 96.0 95.9 96.7 97.0 98.7 96 Stone and earth minerals 14 .6 124.4 120.5 123.0 125.5 126.3 125.0 122.4 120.8 127.5 133.0 128.8 124.5 126.8 127.9 97 Utilities 7.7 115.6 119.8 117.8 117.7 115.2 110.9 113.5 114.6 115.3 110.8 114.9 117.8 114.8 111.0 98 Electric 491.493PT 6.2 118.2 122.6 120.0 119.8 116.9 115.8 116.9 116.0 116.0 114.4 117.9 120.1 117.4 112.6 99 Gas 492.493PT 1.6 104.8 107.4 108.2 108.5 107.9 88.2 98.1 108.4 112.6 94.4 101.2 107.3 103.1 104.1 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 141.4 142.0 142.3 143.6 144.5 145.2 146.2 146.9 148.0 149.0 149.7 150.4 151.8 101 Manufacturing excluding computer and office equipment 83.6 135.3 134.8 135.1 135.3 136.5 137.1 137.6 138.5 138.7 139.7 140.5 141.1 141.6 142.2 102 Computers, communications equipment, and semiconductors 5.9 794.1 812.1 830.4 843.0 863.9 887.7 908.5 952.4 994.7 1,043.7 1,093.0 1,139.3 1,177.5 1,220.2 103 Manufacturing excluding computers and semiconductors 81.1 121.6 121.3 121.6 121.7 122.6 122.9 123.1 123.6 123.4 123.8 123.9 124.1 124.0 124.3 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.3 118.9 119.1 119.3 120.1 120.4 120.6 120.9 120.7 121.0 121.0 121.0 120.9 121.1 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,726.1 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 2,811.3 2,811.6 2,808.5 2,804.4 106 Final 1,552.1 2,101.6 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 2,168.6 2,171.6 2,172.9 2,168.3 107 Consumer goods 1,049.6 1,294.9 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 1,308.9 1,308.2 1,307.7 1,295.6 108 Equipment 502.5 808.3 812.3 819.0 817.5 822.5 823.4 822.9 840.3 845.6 856.0 863.5 867.5 869.4 878.1 109 Intermediate 449.9 623.3 622.0 622.4 626.4 628.9 623.0 627.9 633.0 638.1 639.3 641.5 638.9 634.5 634.9 1. Data in this table appear in the Board's G. 17 (419) monthly statistical release. The data Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The 1997), pp. 67-92, and the references cited therein. For details about the construction of latest historical revision of the industrial production index and the capacity utilization rates individual industrial production series, see "Industrial Production: 1989 Developments and was released in November 1999. The recent annual revision is described in an article in the Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. March 2000 issue of the Bulletin. For a description of the methods of estimating industrial 2. Standard industrial classification. production and capacity utilization, see "Industrial Production and Capacity Utilization: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • October 2000 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 2000 IItteemm 11999977 11999988 11999999 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.r Mayr June Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,664 1,553 1,636 1,678 1,683 1,762 1,661 1,597 1,559 1,511 1,528 2 One-family 1,062 1,188 1,247 1,200 1,204 1,238 1,266 1,317 1,223 1,238 1,164 1,150 1,127 3 Two-family or more 379 425 417 353 432 440 417 445 438 359 395 361 401 4 Started 1,474 1,617 1,667 1,628 1,636 1,663 1,769 1,744 1,822 1,630 1,652 1,591 1,563 5 One-family 1,134 1,271 1,335 1,290 1,343 1,344 1,441 1,361 1,324 1,327 1,310 1,258 1,222 6 Two-family or more 340 346 332 338 293 319 328 383 498 303 342 333 341 7 Under construction at end of period1 833 935 1,022 1,021 1,020 1,022 1,025 1,033 1,041 1,031 1,029 1,024 1,022 8 One-family 570 637 704 702 706 708 710 712 712 706 703 697 694 9 Two-family or more 264 297 318 319 314 314 315 321 329 325 326 327 328 10 Completed 1,404 1,473 1,636 1,642 1,608 1,653 1,675 1,599 1,732 1,728 1,660 1,705 1,539 11 One-family 1,120 1,158 1,308 1,307 1,274 1,345 1,340 1,296 1,382 1,375 1,354 1,384 1,206 12 Two-family or more 285 315 328 335 334 308 335 303 350 353 306 321 333 13 Mobile homes shipped 354 374 348 320 321 316 304 307 291 287 271 265 262 Merchant builder activity in one-family units 14 Number sold 804 886 907 848 906 895 916 927 905 947r 869 861 829 15 Number for sale at end of period1 287 300 326 311 314 317 320 321 309 321 318 320 327 Price of units sold (thousands of dollars)2 16 Median 146.0 152.5 160.0 162.0 160.0 172.9 165.0 163.0 162.3 165.7r 161.4 161.2 159.0 17 Average 176.2 181.9 195.8 194.4 200.3 212.4 203.0 200.1 199.6 205.3r 207.3 198.3 196.3 EXISTING UNITS (one-family) 18 Number sold 4,382 4,970 5,197 5,150 4,880 5,150 5,140 4,450 4,760 5,200 4,880 5,090 5,310 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 134.4 132.5 133.2 133.7 132.2 133.7 134.7 136.1 137.6 140.2 20 Average 150.5 159.1 168.3 170.2 167.2 168.9 168.8 168.9 168.1 171.5 173.3 176.0 178.9 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 656,084 710,104 765,719 753,081 756,854 776,476 791,698 806,099r 816,012r 829,517r 815,848 813,847 799,990 22 Private 501,426 550,983 592,037 582,464 584,860 596,942 605,802 614,584 629,590 637,743 629,097 631,471 625,725 23 Residential 289,101 314,058 348,584 347,616 349,968 353,854 358,223 365,149 368,745 372,118 368,734 367,787 362,658 24 Nonresidential 212,325 236,925 243,454 234,848 234,892 243,088 247,579 249,435 260,845 265,625 260,363 263,684 263,067 25 Industrial buildings 36,696 40,464 35,016 32,696 31,354 32,244 33,262 33,947 38,538 39,030 38,591 40,955 38,688 26 Commercial buildings 86,151 95,753 103,759 103,930 103,935 107,305 107,187 107,961 115,440 116,030 114,997 113,073 114,213 27 Other buildings 37,193 39,607 41,279 40,198 41.496 42,095 43,392 43,350 45,553 45,808 44,223 46,362 45,321 28 Public utilities and other 52,287 61,101 63,400 58,024 58,107 61,444 63,738 64,177 61,314 64,757 62,552 63,294 64,845 29 Public 154,657 159,121 173,682 170,617 171,994 179,534 185,895 191,515r 186,422r 191,774r 186,750 182,376 174,265 30 Military 2,561 2,538 2,122 1,932 2,114 1,944 2,332 1,782 3,011 2,249 2,185 2,258 2,188 31 Highway 43,886 48,339 54,447 52,432 50,646 56,547 60,218 63,368 53,145 59,007 55,923 52,113 48,914 32 Conservation and development 5,708 5,421 6,002 6,145 5,941 6,585 7,001 6,223 6,975 6,494 5,878 5,425 5,725 33 Other 102,502 102,823 111,110 110,108 113,293 114,458 116,344 120,142r 123,291r 124,024r 122,764 122,580 117,438 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 2000R 2000 JJJuuulllyyy 11999999 22000000 222000000000''' JJuullyy JJuullyy Sept. Dec. Mar. June Mar. Apr. May June July CONSUMER PRICES2 (1982-84=100) 1 All items 2.1 3.5 3.9 2.4 5.8 2.6 .7 .0 .1 .6 .2 172.6 ? Food 2.1 2.6 2.5 2.2 1.7 2.7 .1 .1 .5 .1 .5 168.1 Energy items 3.3 19.3 26.0 7.8 50.5 6.6 4.9 -1.9 -1.9 5.6 .1 129.7 4 All items less food and energy 2.1 2.4 2.5 1.8 3.2 2.0 .4 .2 .2 .2 .2 181.1 Commodities .6 .4 2.5 -.6 .3 .0 .3 .2 .0 -.2 .0 143.8 6 Services 2.7 3.3 2.5 3.1 4.1 3.2 .5 .2 .2 .3 .2 202.5 PRODUCER PRICES (1982=100) 7 Finished goods 1.5 4.1 6.8 .9 7.9 1.8 ,7R -.R .0 .6 .0 138.3 8 Consumer foods -.1 2.1 3.3 -2.0 3.6 1.8 .1 1.0 -.2 -.3 .0 137.4 9 Consumer energy 4.9 19.2 37.6 5.9 51.8 5.7 4.4R — 3.0R -.5 5.1 -.7 96.2 10 Other consumer goods 2.4 1.7 3.8 1.1 .8 .8 .1 .1 .2 -.1 .1 153.5 11 Capital equipment -.1 1.2 .3 1.2 .9 1.5 .1 .2 .1 .0 .1 138.6 Intermediate materials 12 Excluding foods and feeds .6 5.1 6.6 3.6 9.5 2.8 .9 -,lr -.1 .9 .3 113311..00 13 Excluding energy -.1 2.8 3.4 2.1 4.2 2.7 ,4R ,3r .1 .2 .2 137.2 Crude materials 14 Foods -7.2 3.3 3.7 -3.6 21.5 -11.1 3.6r 1.6R -1.8 -2.6 -2.7 99.4 15 Energy 13.4 53.5 134.4 -27.9 84.9 106.7 2.3R -6.0R 9.9 16.2 .4 123.4 16 Other -6.7 7.5 22.6 26.2 9.9 -10.5 -.5 -i.R -.3 -1.3 -1.8 144.2 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 • October 2000 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1999r 1997r 1999r Q2 Q3 Q4 Qlr GROSS DOMESTIC PRODUCT 1 Total 8,318.4 8,790.2 9,299.2 9,191.5 9,340.9 9,559.7 9,752.7 By source 4 2 3 5 Per N D S s e o o u r n n r v a a d i b l c u l e r e c s a o b g n l o s e o u d m g s o p o t d io s n expenditures 5 3 1 , , . 5 6 2 6 2 4 4 4 9 2 5 1 . . . . 3 5 2 6 5 3 1 , , , 6 8 4 7 9 5 4 0 3 0 9 7 . . . . 9 9 3 6 6 3 1 . , , 7 2 6 8 6 6 6 4 1 8 1 5 . . . . 7 3 5 9 6 3 1 . . . 2 7 6 8 1 5 3 2 3 1 6 5 . . . . 2 5 3 3 6 3 1 , . , 3 7 6 8 1 6 9 6 9 7 2 0 . . . . 9 2 7 0 6 3 1 , , , 4 7 7 9 4 8 4 1 6 7 8 0 . . . . 2 5 6 2 6 3 1 , . , 6 8 8 9 2 3 2 6 1 1 6 3 . . . . 7 3 6 9 6 Gross private domestic investment 1,390.5 1,549.9 1,650.1 1,607.9 1,659.1 1.723.7 1.755.7 7 Fixed investment 1.327.7 1,472.9 1.606.8 1.593.4 1,622.4 1,651.0 1.725.8 8 Nonresidential 999.4 1,107.5 1.203.1 1,188.0 1.216.8 1.242.2 1,308.5 9 Structures 255.8 283.2 285.6 283.7 281.2 290.4 308.9 10 Producers' durable equipment 743.6 824.3 917.4 904.3 935.6 951.8 999.6 11 Residential structures 328.2 365.4 403.8 405.4 405.6 408.8 417.3 12 Change in business inventories 62.9 77.0 43.3 14.5 36.7 72.7 29.9 13 Nonfarm 60.0 76.4 43.6 13.4 42.0 71.8 32.4 14 Net exports of goods and services -89.3 -151.5 -254.0 -240.4 -280.5 -299.1 -335.2 15 Exports 966.4 966.0 990.2 973.0 999.5 1.031.0 1.051.9 16 Imports 1.055.8 1,117.5 1.244.2 1,213.4 1,280.0 1.330.1 1,387.1 17 Government consumption expenditures and gross investment 1.487.9 1,540.9 1,634.4 1,610.9 1,642.4 1.688.8 1,710.4 18 Federal 538.2 540.6 568.6 558.3 570.4 591.6 580.1 19 State and local 949.7 1,000.3 1,065.8 1.052.6 1,072.1 1.097.3 1,130.4 By major type of product 20 Final sales, total 8,255.5 8.713.2 9,255.9 9,177.0 9,304.2 9,486.9 9,722.8 21 Goods 3,082.5 3.239.3 3.467.0 3.436.7 3,490.6 3.566.0 3,680.3 22 Durable 1,436.2 1,532.3 1.651.1 1,635.9 1,669.4 1,701.8 1,773.7 23 Nondurable 1,646.4 1,707.1 1,815.8 1.800.8 1,821.1 1.864.1 1,906.6 24 Services 4,442.1 4,673.0 4,934.6 4,891.2 4,965.2 5,050.3 5,135.2 25 Structures 730.9 800.9 854.3 849.1 848.5 870.7 907.4 26 Change in business inventories 62.9 77.0 43.3 14.5 36.7 72.7 29.9 27 Durable goods 33.1 45.8 27.2 5.0 27.6 47.5 20.7 28 Nondurable goods 29.8 31.2 16.1 9.5 9.1 25.2 9.2 MEMO 8,159.5 8,515.7 8,875.8 8,783.2 8,905.8 9,084.1 9,191.8 29 Total GDP in chained 1996 dollars NATIONAL INCOME 6,618.4 7.038.1 7.469.7 7.392.3 7.493.1 7,680.7 7,833.5 30 Total 4,651.3 4.984.2 5.299.8 5.255.4 5,340.9 5,421.1 5,512.2 31 Compensation of employees 3,886.0 4,192.8 4,475.1 4.435.5 4.512.2 4,583.5 4.660.4 32 Wages and salaries 664.3 692.7 724.4 720.3 727.5 734.5 749.9 33 Government and government enterprises 3,221.7 3,500.1 3,750.7 3,715.2 3,784.7 3,849.0 3.910.5 34 Other 765.3 791.4 824.6 819.9 828.7 837.7 851.8 35 Supplement to wages and salaries 289.9 305.9 323.6 321.2 325.9 330.3 337.8 36 Employer contributions for social insurance 475.4 485.5 501.0 498.7 502.8 507.4 514.0 37 Other labor income 38 Proprietors' income1 581.2 620.7 663.5 660.4 659.7 689.6 693.9 39 Business and professional1 551.5 595.2 638.2 631.4 644.2 657.9 674.8 40 Farm' 29.7 25.4 25.3 29.0 15.5 31.7 19.1 41 Rental income of persons2 128.3 135.4 143.4 145.7 136.6 146.2 145.6 42 Corporate profits' 833.8 815.0 856.0 836.8 842.0 893.2 936.3 43 Profits before tax5 792.4 758.2 823.0 804.5 819.0 870.7 920.7 44 Inventory valuation adjustment 8.4 17.0 -9.1 -8.9 -19.7 -19.2 -25.0 45 Capital consumption adjustment 32.9 39.9 42.1 41.2 42.7 41.6 40.6 46 Net interest 423.9 482.7 507.1 494.1 513.8 530.6 545.4 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 1999r 2000 AAccccoouunntt 11999977rr 11999988rr 11999999rr Q2 Q3 Q4 Qir Q2 PERSONAL INCOME AND SAVING 1 Total personal income 6,937.0 7,391.0 7,789.6 7,729.7 7,828.5 7,972.3 8,105.8 8,233.6 2 Wage and salary disbursements 3,888.9 4,190.7 4,470.0 4,430.4 4,507.0 4,578.3 4,660.4 4,734.8 Commodity-producing industries 975.1 1,038.6 1,089.2 1,081.6 1,097.8 1,111.2 1,130.9 1,144.8 4 Manufacturing 718.4 756.6 782.4 777.4 789.0 795.1 802.8 811.5 879.6 949.1 1,020.3 1,009.9 1,029.9 1,049.4 1,070.9 1,092.3 6 Service industries 1,369.9 1,510.3 1,636.0 1,618.6 1,651.8 1,683.2 1,708.6 1,737.5 7 Government and government enterprises 664.3 692.7 724.4 720.3 727.5 734.5 749.9 760.1 8 475.4 485.5 501.0 498.7 502.8 507.4 514.0 520.5 9 Proprietors' income1 581.2 620.7 663.5 660.4 659.7 689.6 693.9 708.5 10 Business and professional1 551.5 595.2 638.2 631.4 644.2 657.9 674.8 686.8 11 29.7 25.4 25.3 29.0 15.5 31.7 19.1 21.7 1? Rental income of persons 128.3 135.4 143.4 145.7 136.6 146.2 145.6 141.9 n 334.9 351.1 370.3 366.8 373.5 380.2 386.9 392.6 14 Personal interest income 864.0 940.8 963.7 951.3 969.4 989.0 1,011.6 1,027.7 is Transfer payments 962.2 983.0 1,016.2 1,012.2 1,020.3 1,027.4 1,046.9 1,066.1 16 Old age survivors, disability, and health insurance benefits 565.8 578.0 588.0 586.1 589.7 592.8 607.9 624.3 17 LESS: Personal contributions for social insurance 297.9 316.2 338.5 335.8 341.0 345.9 353.4 358.5 18 EQUALS: Personal income 6,937.0 7,391.0 7,789.6 7,729.7 7,828.5 7,972.3 8,105.8 8,233.6 19 LESS: Personal tax and nontax payments 968.8 1,070.9 1,152.0 1,133.4 1,164.0 1,197.3 1,239.3 1,271.6 20 EQUALS: Disposable personal income 5,968.2 6,320.0 6,637.7 6,596.3 6,664.5 6,775.0 6,866.5 6,962.0 21 LESS: Personal outlays 5,715.3 6,054.7 6,490.1 6,432.8 6,543.3 6,674.1 6,855.6 6,945.7 22 EQUALS: Personal saving 252.9 265.4 147.6 163.6 121.1 101.0 11.0 16.4 MEMO Per capita (chained 1996 dollars) 23 Gross domestic product 30,434.4 31,469.5 32,511.9 32,220.0 32,586.0 33,153.5 3333,,448855..66 33,847.7 24 Personal consumption expenditures 20,230.9 20,985.4 21,900.4 21,791.0 22,004.4 22,266.4 22,635.5 22,748.8 25 Disposable personal income 21,838.0 22,672.0 23,191.0 23,133.0 23,203.0 23,404.0 23,472.0 23,617.0 26 Saving rate (percent) 4.2 4.2 2.2 2.5 1.8 1.5 .2 .2 GROSS SAVING 27 Gross saving 1,502.3 1,654.4 1,717.6 1,691.7 1,716.8 1,746.3 1,777.0 1,830.5 28 Gross private saving 1,343.7 1,375.7 1,343.5 1,338.5 1,321.1 1,331.4 1,279.2 1,323.7 29 Personal saving 252.9 265.4 147.6 163.6 121.1 101.0 11.0 16.4 30 Undistributed corporate profits1 261.3 218.9 229.4 218.7 214.0 241.7 262.7 278.1 31 Corporate inventory valuation adjustment 8.4 17.0 -9.1 -8.9 -19.7 -19.2 -25.0 -13.4 Capital consumption allowances 3? Corporate 581.5 624.3 676.9 670.7 687.7 669944..88 771111..55 773300..66 33 Noncorporate 250.9 265.1 284.5 280.3 293.1 288.7 294.1 298.7 34 Gross government saving 158.6 278.7 374.1 353.3 395.7 414.9 497.7 506.8 35 Federal 33.4 137.4 217.3 209.5 240.6 238.4 333.0 336.9 36 Consumption of fixed capital 86.8 88.4 92.8 92.0 93.4 95.0 97.2 9999..11 37 Current surplus or deficit (-), national accounts -53.3 49.0 124.4 117.5 147.3 143.3 235.8 223377..88 38 State and local 125.2 141.3 156.8 143.7 155.1 176.6 164.7 169.9 39 Consumption of fixed capital 94.2 99.5 106.8 105.8 107.7 109.9 112.7 115.7 40 Current surplus or deficit (-), national accounts 31.0 41.7 50.0 38.0 47.4 66.6 52.0 54.2 41 Gross investment 1,532.1 1,629.6 1,645.6 1,614.9 1,627.3 1,678.5 1,699.3 1,766.1 42 Gross private domestic investment 1,390.5 1,549.9 1,650.1 1,607.9 1,659.1 1,723.7 1,755.7 1,852.8 43 Gross government investment 264.6 278.8 308.7 303.5 308.0 324.4 334.2 332.5 44 Net foreign investment -123.1 -199.1 -313.2 -296.5 -339.8 -369.6 -390.7 -419.3 45 Statistical discrepancy 29.7 -24.8 -71.9 -76.8 -89.5 -67.8 -77.7 -64.4 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 • October 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 Q1 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 7 Balance on goods and services -105,932 -166,898 -264,971 -52,676 -63,300 -72,718 -76,280 -86,176 3 Exports 936,937 932,977 956,242 230,321 234,297 241,969 249,653 255,037 4 Imports -1,042,869 -1,099,875 -1,221,213 -282,997 -297,597 -314,687 -325,933 -341,213 5 Income, net 6,186 -6,211 -18,483 -3,120 -4,145 -5,535 -5,683 -4,200 6 Investment, net 11,050 -1,036 -13,102 -1,775 -2,813 -4,193 -4,319 -2,820 7 Direct 71,935 67,728 62,704 16,030 14,698 15,701 16,275 17,687 8 Portfolio -60,885 -68,764 -75,806 -17,805 -17,511 -19,894 -20,594 -20,507 9 Compensation of employees -4,864 -5,175 -5,381 -1,345 -1,332 -1,342 -1,364 -1,380 10 Unilateral current transfers, net -40,794 -44,029 -48,025 -10,831 -11,537 -11,396 -14,260 -11,925 11 Change in U.S. government assets other than official reserve assets, net (increase, —) 68 -422 2,751 118 -392 -686 33,,771111 --8822 12 Change in U.S. official reserve assets (increase, -) -1,010 -6,783 8,747 4,068 1,159 1,951 1,569 -554 N Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -350 -147 10 562 -190 -184 -178 -180 15 Reserve position in International Monetary Fund -3,575 -5,119 5,484 3 1,413 2,268 1,800 -237 16 Foreign currencies 2,915 -1,517 3,253 3,503 -64 -133 -53 -137 17 Change in U.S. private assets abroad (increase, —) -487,998 -328,231 -441,685 -25,741 -171,609 -124,174 -120,162 -142,647 18 Bank-reported claims3 -141,118 -35,572 -69,862 28,487 -41,786 -11,259 -45,304 -45,084 19 Nonbank-reported claims -122,888 -10,612 -92,328 -14,223 -25,734 -27,943 -24,428 -35,183 20 U.S. purchases of foreign securities, net -118,976 -135,995 -128,594 1,107 -71,131 -41,420 -17,150 -27,535 21 U.S. direct investments abroad, net -105,016 -146,052 -150,901 -41,112 -32,958 -43,552 -33,280 -34,845 22 Change in foreign official assets in United States (increase, +) 18,876 -20,127 42,864 4,274 -1,096 12,191 27,495 20,442 23 U.S. Treasury securities -6,690 -9,921 12,177 800 -6,708 12,963 5,122 16,198 24 Other U.S. government obligations 4,529 6,332 20,350 5,993 5,792 1,835 6,730 8,107 25 Other U.S. government liabilities3 -1,041 -3,550 -3,255 -1,485 -1,099 -760 89 -644 76 Other U.S. liabilities reported by U.S. banks3 22,286 -9,501 12,692 -1,139 1,436 -2,032 14,427 -4,150 27 Other foreign official assets4 -208 -3,487 900 105 -517 185 1,127 931 28 Change in foreign private assets in United States (increase, +) 738,086 502,362 710,700 98,506 273,104 182,019 157,072 194,566 79 U.S. bank-reported liabilities2 149,026 39,769 67,403 -13,951 37,151 24,585 19,618 -6,701 30 U.S. nonbank-reported liabilities 113,921 -7,001 34,298 27,928 13,663 -8,085 792 42,035 31 Foreign private purchases of U.S. Treasury securities, net 146,433 48,581 -20,464 -7,505 -5,407 9,639 -17,191 -9,254 37 U.S. currency flows 24,782 16,622 22,407 2,440 3,057 4,697 12,213 -6,847 33 Foreign purchases of other U.S. securities, net 197,892 218,075 331,523 62,815 80,838 95,620 92,250 133,000 34 Foreign direct investments in United States, net 106,032 186,316 275,533 26,779 143,802 55,563 49,390 42,333 35 Capital account transactions, net5 350 637 -3,500 157 165 171 -3,993 166 36 Discrepancy -127,832 69,702 11,602 -14,755 -22,349 18,177 30,531 30,410 37 Due to seasonal adjustment 5,514 -1,511 -9,739 5,738 5,588 38 Before seasonal adjustment -127,832 69,702 11,602 -20,269 -20,838 27,916 24,793 24,822 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) -1,010 -6,783 8,747 4,068 1,159 1,951 11,,556699 --555544 40 Foreign official assets in United States, excluding line 25 (increase, +) 19,917 -16,577 46,119 5,759 3 12,951 27,406 21,086 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,124 -11,531 1,331 2,155 1,632 -783 --11,,667733 55,,995511 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-41. corporations and state and local governments. 2. Reporting banks included all types of depository institutions as well as some brokers 5. Consists of capital transfers (such as those of accompanying migrants entering or and dealers. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Associated primarily with military sales contracts and other transactions arranged with nonfinancial assets. or through foreign official agencies. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current 4. Consists of investments in U.S. corporate stocks and in debt securities of private Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Summary Statistics A51 3.11 U.S. FOREIGN TRADE1 Millions of dollars; monthly data seasonally adjusted 1999 2000 IItteemm 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. Mayr June 1 Goods and services, balance -105,932 -166,898 -264,971 -25,657 -27,425 -28,144 -30,606 -30,500 -30,307 -30,619 2 Merchandise -196,665 -246,854 -345,559 -32,255 -34,049 -34,641 -37,148 -36,894 -36,475 -36,847 3 Services 90,733 79,956 80,588 6,598 6,624 6,497 6,542 6,394 6,168 6,228 4 Goods and services, exports 936,937 932,977 956,242 84,107 83,583 84,731 86,723 86,583 86,567 90,563 5 Merchandise 679,702 670,324 684,358 61,211 60,321 60,894 62,513 62,566 62,749 66,495 6 Services 257,235 262,653 271,884 22,896 23,262 23,837 24,210 24,017 23,818 24,068 7 Goods and services, imports 1,042,869 1,099,875 1,221,213 -109,764 -111,008 -112,875 -117,329 -117,083 -116,874 -121,182 8 Merchandise 876.367 917,178 1,029,917 -93,466 -94,370 -95,535 -99,661 -99,460 -99,224 -103,342 9 Services 166.502 182,697 191,296 -16,298 -16,638 -17,340 -17,668 -17,623 -17,650 -17,840 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 2000 AAsssseett 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June July Aug.? 1 Total 69,954 81,755 71,516 69,898 69,309 70,789 66,587 67,160 67,957 66,516 65,333 2 Gold stock, including Exchange Stabilization Fund1 11,050 11,041 11,089 11,048 11,048 11,048 11,048 11,048 11,048 11,046 11,046 3 Special drawing rights2'3 10,027 10,603 10,336 10,199 10,277 10,335 10,122 10,310 10,444 10,257 10,371 4 Reserve position in International Monetary Fund2 18,071 24,111 17,950 17,710 17,578 17,871 15,403 15,373 15,428 15,083 13,798 5 Foreign currencies4 30,809 36,001 32,182 30,941 30,406 31,535 30,014 30,429 31,037 30,130 30,118 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 2000 AAsssseett 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June July Aug.? 1 Deposits 457 167 71 82 87 125 142 110 104 76 78 Held in custody 2 U.S. Treasury securities2 620,885 607,574 632,482 627,326 631,421 641,830 632,216 623,553 627,081 624,177 628,001 3 Earmarked gold3 10,763 10,343 9,933 9,866 9,771 9,711 9,711 9,711 9,688 9,688 9,674 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 • October 2000 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 1999 2000 IItteemm 11999977 11999988 Dec. Jan. Feb. Mar. Apr. May Junep 1 Total1 776,505 759,928 806,288 808,474 812,353 828,947 834,154r 826,302 835,625 By type 2 Liabilities reported by banks in the United States 135,384 125,883 138,817 134,753 130,268 136,240 137,724r 135,802 135,679 3 U.S. Treasury bills and certificates3 148,301 134,177 156,177 153,548 156,995 164,781 157,607 148,820 157,190 U.S. Treasury bonds and notes 4 Marketable 428,004 432,127 422,266 429,029 430,806 430,237 436,640 435,235 433,823 5 Nonmarketable4 5,994 6,074 6,111 6,152 6,191 5,734 5,770 5,808 5,740 6 U.S. securities other than U.S. Treasury securities5 58,822 61,667 82,917 84,992 88,093 91,955 96,413 100,637 103,193 By area 7 Europe1 252,289 256,026 244,805 246,022 248,792 251,571 249,685 250,306 252,966 8 Canada 36,177 36,715 38,666 39,439 39,358 39,846 39,501 39,190 39,705 9 Latin America and Caribbean 96,942 79,503 73,518 71,888 71,180 77,014 72,407r 69,508 71,220 10 400,144 400,631 463,673 463,801 466,087 474,355 486,133r 482,134 485,424 11 Africa 9,981 10,059 7,523 8,208 7,976 7,979 8,024 7,709 7,849 12 Other countries 7,058 3,080 4,189 5,202 5,046 4,268 4,490 3,541 4,547 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 Dec. Jan. Feb. Mar. Apr. May Junep BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,283,027 1,347,837 1,413,683 1,413,683 1,413,811 1,407,301 1,406,476 l,406,149r 1,452,895 1,456,081 2 Banks' own liabilities 882,980 884,939 976,400 976,400 981,461 970,752 960,303 974,579r 1,031,943 1,017,083 3 Demand deposits 31,344 29,558 42,884 42,884 36,518 39,611 29,255 30,202 29,097 30,674 4 Time deposits2 198,546 151,761 163,620 163,620 162,147 165,682 167,031 182,683 176,953 182,682 5 Other3 168,011 140,752 162,749 162,749 174,682 163,884 161,533 165,626r 179,090 175,601 6 Own foreign offices4 485,079 562,868 607,147 607,147 608,114 601,575 602,484 596,068 646,803 628,126 7 Banks' custodial liabilities5 400,047 462,898 437,283 437,283 432,350 436,549 446,173 431,570r 420,952 438,998 8 U.S. Treasury bills and certificates6 193,239 183,494 185,797 185,797 181,879 184,604 195,050 184,160r 174,310 180,951 9 Other negotiable and readily transferable instruments7 93,641 141,699 132,575 132,575 129,551 128,673 127,630 124,209 123,580 124,669 10 Other 113,167 137,705 118,911 118,911 120,920 123,272 123,493 123,201 123,062 133,378 11 Nonmonetary international and regional organizations8 . . 11,690 11,883 15,276 15,276 21,807 20,436 18,361 20,590r 22,807 21,078 12 Banks' own liabilities 11,486 10,850 14,357 14,357 20,951 19,513 17,586 19,800r 22,109 20,636 13 Demand deposits 16 172 98 98 202 148 71 58 36 34 14 Time deposits2 5,466 5,793 10,349 10,349 9,621 9,251 9,741 11,338 11,393 12,545 15 Other3 6,004 4,885 3,910 3,910 11,128 10,114 7,774 8,404r 10,680 8,057 16 Banks' custodial liabilities5 204 1,033 919 919 856 923 775 790 698 442 17 U.S. Treasury bills and certificates6 69 636 680 680 625 704 695 623 582 432 18 Other negotiable and readily transferable instruments7 133 397 233 233 225 213 71 77 113 10 19 Other 2 0 6 6 6 6 9 90 3 0 20 Official institutions9 283,685 260,060 294,994 294,994 288,301 287,263 301,021 295,33 lr 284,622 292,869 21 Banks' own liabilities 102,028 80,256 97,615 97,615 82,678 79,652 87,187 87,379r 87,931 87,999 22 Demand deposits 2,314 3,003 3,341 3,341 2,645 3,306 2,381 2,620 2,781 2,887 23 Time deposits2 41,396 29,506 28,942 28,942 25,909 27,690 30,117 36,587r 31,645 33,540 24 Other3 58,318 47,747 65,332 65,332 54,124 48,656 54,689 48,172 53,505 51,572 25 Banks' custodial liabilities5 181,657 179,804 197,379 197,379 205,623 207,611 213,834 207,952 196,691 204,870 26 U.S. Treasury bills and certificates6 148,301 134,177 156,177 156,177 153,548 156,995 164,781 157,607 148,820 157,190 27 Other negotiable and readily transferable instruments7 33,151 44,953 41,152 41,152 51,522 50,298 48,689 50,118 47,734 47,611 28 Other 205 674 50 50 553 318 364 227 137 69 29 Banks10 815,247 885,336 905,383 905,383 905,045 893,042 887,858 890,695r 937,160 930,938 30 Banks' own liabilities 641,447 676,057 733,356 733,356 740,355 730,867 723,761 730,194r 777,035 760,161 31 Unaffiliated foreign banks 156,368 113,189 126,209 126,209 132,241 129,292 121,277 134,126r 130,232 132,035 32 Demand deposits 16,767 14,071 17,583 17,583 12,964 12,424 13,930 14,404 13,254 14,518 33 Time deposits2 83,433 45,904 48,140 48,140 51,171 51,510 49,716 57,240r 55,167 57,960 34 Other3 56,168 53,214 60,486 60,486 68,106 65,358 57,631 62,482 61,811 59,557 35 Own foreign offices4 485,079 562,868 607,147 607,147 608,114 601,575 602,484 596,068 646,803 628,126 36 Banks' custodial liabilities5 173,800 209,279 172,027 172,027 164,690 162,175 164,097 160,501r 160,125 170,777 37 U.S. Treasury bills and certificates6 31,915 35,359 16,936 16,936 17,582 14,635 15,770 13,93 r 14,179 13,239 38 Other negotiable and readily transferable instruments7 35,393 45,332 45,695 45,695 36,426 34,629 35,453 33,790 33,667 34,657 39 Other 106,492 128,588 109,396 109,396 110,682 112,911 112,874 112,780 112,279 122,881 40 Other foreigners 172,405 190,558 198,030 198,030 198,658 206,560 199,236 199,533 208,306 211,196 41 Banks' own liabilities 128,019 117,776 131,072 131,072 137,477 140,720 131,769 137,206 144,868 148,287 42 Demand deposits 12,247 12,312 21,862 21,862 20,707 23,733 12,873 13,120 13,026 13,235 43 Time deposits2 68,251 70,558 76,189 76,189 75,446 77,231 77,457 77,518 78,748 78,637 44 Other3 47,521 34,906 33,021 33,021 41,324 39,756 41,439 46,568 53,094 56,415 45 Banks' custodial liabilities5 44,386 72,782 66,958 66,958 61,181 65,840 67,467 62,327 63,438 62,909 46 U.S. Treasury bills and certificates6 12,954 13,322 12,004 12,004 10,124 12,270 13,804 11,999 10,729 10,090 47 Other negotiable and readily transferable instruments7 24,964 51,017 45,495 45,495 41,378 43,533 43,417 40,224 42,066 42,391 48 Other 6,468 8,443 9,459 9,459 9,679 10,037 10,246 10,104 10,643 10,428 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 16,083 27,026 30,345 30,345 28,344 27,266 28,056 26,087 27,238 26,571 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 • October 2000 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued 1999 2000 IItteemm 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May Junep AREA 50 Total, all foreigners 1,283,027 1,347,837 1,413,683 1,413,683 1,413,811 1,407,301 1,406,476 l,406,149r 1,452,895 1,456,081 51 Foreign countries 1,271,337 1,335,954 1,398,407 1,398,407 1,392,004 1,386,865 1,388,115 l,385,559r 1,430,088 1,435,003 52 Europe 419,672 427,375 448,070 448,070 450,033 451,022 449,760 433,784r 435,694 448,674 53 Austria 2,717 3,178 2,789 2,789 2,648 2,997 2,570 2,302 2,468 2,664 54 Belgium and Luxembourg 41,007 42,818 44,692 44,692 42,433 38,783 36,385 33,100 31,656 31,236 55 Denmark 1,514 1,437 2,196 2,196 2,510 2,533 3,235 2,601 3,629 3,444 56 Finland 2,246 1,862 1,658 1,658 1,290 1,479 2,015 1,744 1,529 1,380 57 France 46,607 44,616 49,790 49,790 48,530 49,839 43,666 45,324 43,577 42,130 58 Germany 23,737 21,357 24,748 24,748 24,097 23,916 25,176 23,710 24,875 28,952 59 Greece 1,552 2,066 3,748 3,748 3,145 4,000 3,216 3,188 3,030 2,765 60 Italy 11,378 7,103 6,775 6,775 6,261 5,405 5,278 4,789 7,142 6,676 61 Netherlands 7,385 10,793 8,310 8,310 7,271 7,797 7,617 1,211' 6,823 8,728 62 Norway 317 710 1,327 1,327 834 1,169 1,336 1,197 963 2,189 63 Portugal 2,262 3,236 2,228 2,228 2,034 2,113 2,006 1,913 1,964 2,373 64 Russia 7,968 2,439 5,475 5,475 6,404 7,543 7,360 10,065 11,716 11,876 65 Spain 18,989 15,781 10,426 10,426 12,531 12,130 12,518 11,208 10,796 9,990 66 Sweden 1,628 3,027 4,652 4,652 4,673 4,792 5,425 5,165 4,390 5,434 67 Switzerland 39,023 50,654 65,985 65,985 64,282 61,335 81,934 69,208 63,700 59,535 68 Turkey 4,054 4,286 7,842 7,842 6,912 7,714 7,995 8,016 7,501 8,472 69 United Kingdom 181,904 181,554 176,234 176,234 184,520 187,347 169,156 169,222r 176,824 187,741 70 Yugoslavia" 239 233 286 286 273 294 270 265 275 276 71 Other Europe and other former U.S.S.R.12 25,145 30,225 28,909 28,909 29,385 29,836 32,602 33,490r 32,836 32,813 72 Canada 28,341 30,212 34,119 34,119 32,965 33,387 36,147 40,562 36,229 37,256 73 Latin America and Caribbean 536,393 554,866 577,737 577,737 599,593 596,273 596,211 604,685r 659,093 640,936 74 Argentina 20,199 19,014 18,633 18,633 15,333 16,548 17,906 18,487 16,496 16,540 75 Bahamas 112,217 118,085 134,407 134,407 149,727 155,720 141,370 159,115 174,132 182,216 76 Bermuda 6,911 6,846 7,877 7,877 9,910 9,106 10,108 9,710 8,713 8,024 77 Brazil 31,037 15,815 12,860 12,860 12,230 12,785 14,889 10,305 9,945 10,805 78 British West Indies 276,418 302,486 312,779 312,779 320,352 311,990 320,120 314,961 355,037 324,986 79 Chile 4,072 5,015 7,008 7,008 6,366 6,244 5,752 5,933 6,095 6,192 80 Colombia 3,652 4,624 5,669 5,669 4,438 4,304 4,314 4,243 4,237 4,360 81 Cuba 66 62 75 75 75 75 100 77 77 85 82 Ecuador 2,078 1,572 1,956 1,956 1,985 2,035 2,141 2,193 2,274 2,253 83 Guatemala 1,494 1,336 1,626 1,626 1,636 1,617 1,706 1,628 1,669 1,647 84 Jamaica 450 577 520 520 540 571 671 670 706 673 85 Mexico 33,972 37,157 30,717 30,717 32,090 32,216 31,393 32,832 33,915 33,938 86 Netherlands Antilles 5,085 5,010 3,997 3,997 4,269 3,692 4,528 5,108r 6,561 7,878 87 Panama 4,241 3,864 4,415 4,415 4,042 3,737 4,157 3,788 3,764 3,820 88 Peru 893 840 1,142 1,142 1,073 1,051 975 1,021 1,100 1,124 89 Uruguay 2,382 2,486 2,386 2,386 2,260 2,262 2,377 2,431 2,520 2,680 90 Venezuela 21,601 19,894 20,189 20,189 21,517 21,297 22,572 21,140 20,469 22,259 91 Other 9,625 10,183 11,481 11,481 11,750 11,023 11,132 11,043 11,383 11,456 92 Asia 269,379 307,960 319,363 319,363 290,411 228877,,337755 287,636 288,745' 228822,,332255 290,045 China 93 Mainland 18,252 13,441 12,325 12,325 11,570 11,661 8,096 8,530 7,824 9,931 94 Taiwan 11,840 12,708 13,600 13,600 11,674 11,211 14,642 14,488 14,113 13,584 95 Hong Kong 17,722 20,900 27,697 27,697 25,951 24,038 22,672 22,873 23,951 23,951 96 India 4,567 5,250 7,367 7,367 5,491 5,405 6,258 5,586 5,703 5,558 97 Indonesia 3,554 8,282 6,567 6,567 6,853 7,495 7,837 7,275 7,064 7,400 98 Israel 6,281 7,749 7,488 7,488 6,581 7,680 8,338 7,058 5,541 6,143 99 Japan 143,401 168,563 159,075 159,075 149,033 145,314 145,074 147,409 148,668 153,662 100 Korea (South) 13,060 12,524 12,853 12,853 11,573 12,625 16,420 16,820 12,941 10,324 101 Philippines 3,250 3,324 3,253 3,253 1,937 2,540 2,277 2,290 1,750 1,999 102 Thailand 6,501 7,359 6,050 6,050 5,389 5,134 4,370 3,628 3,428 3,529 103 Middle Eastern oil-exporting countries13 14,959 15,609 21,284 21,284 16,927 15,811 16,132 19,005 18,647 18,538 104 Other 25,992 32,251 41,804 41,804 37,432 38,461 35,520 33,783r 32,695 35,426 105 Africa 10,347 8,905 9,468 9,468 8,105 8,270 8,614 8,576 8,437 8,718 106 Egypt 1,663 1,339 2,022 2,022 1,616 1,703 1,770 1,663 1,722 1,962 107 Morocco 138 97 179 179 176 262 115 106 122 149 108 South Africa 2,158 1,522 1,495 1,495 730 698 673 687 662 595 109 Zaire 10 5 14 14 7 13 13 7 13 6 110 Oil-exporting countries14 3,060 3,088 2,914 2,914 2,952 3,098 3,318 3,558 3,298 3,405 111 Other 3,318 2,854 2,844 2,844 2,624 2,496 2,725 2,555 2,620 2,601 112 Other 7,205 6,636 9,650 9,650 10,897 10,538 9,747 9,207 8,310 9,374 113 Australia 6,304 5,495 8,377 8,377 9,910 9,335 8,669 8,414 7,586 8,564 114 Other 901 1,141 1,273 1,273 987 1,203 1,078 793 724 810 115 Nonmonetary international and regional organizations . . 11,690 11,883 15,276 15,276 21,807 20,436 18,361 20,590r 22,807 21,078 116 International15 10,517 10,221 12,876 12,876 19,7 08 17,561 16,306 J9,207r 21,375 19,918 117 Latin American regional16 424 594 1,150 1,150 1,128 1,858 1,244 518 624 668 118 Other regional17 749 1,068 1,250 1,250 971 1,017 811 865 808 492 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 States' Payable in U.S. Dollars Millions of dollars, end of period 1999 2000 AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 Dec. Jan. Feb. Mar. Apr. May Junep 1 Total, all foreigners 708,225 734,995 795,377 795,377 757,214 750,972 813,890 815,083r 820,761 825,814 2 Foreign countries 705,762 731,378 790,814 790,814 751,596 746,305 809,581 810,081r 816,418 820,823 3 Europe 199,880 233,321 315,905 315,905 308,133 314,504 361,470 350,067 359,895 357,229 4 Austria 1,354 1,043 2,643 2,643 3,020 2,471 2,493 2,429 2,242 2,148 5 Belgium and Luxembourg 6,641 7,187 10,193 10,193 8,898 9,777 8,022 7,939 5,959 6,390 6 Denmark 980 2,383 1,669 1,669 1,702 1,743 1,625 1,940 2,001 3,440 7 Finland 1,233 1,070 2,020 2,020 2,328 1,846 2,093 2,087 2,414 2,650 8 France 16,239 15,251 29,142 29,142 30,051 28,303 28,127 30,958 35,217 28,613 9 Germany 12,676 15,923 29,205 29,205 29,871 28,890 35,371 33,991 31,521 33,605 in Greece 402 575 806 806 793 683 842 864r 828 837 11 Italy 6,230 7,284 8,496 8,496 8,614 6,785 7,048 7,034 6,565 7,724 l? Netherlands 6,141 5,697 11,810 11,810 11,477 11,484 14,089 13,932 14,377 15,667 13 Norway 555 827 1,000 1,000 1,376 1,146 1,132 1,499 1,832 1,935 14 Portugal 777 669 1,571 1,571 1.307 1,155 1,043 1,085 1,268 1,424 15 Russia 1,248 789 713 713 701 743 709 709 715 744 16 Spain 2,942 5,735 3,796 3,796 4,581 4,339 3,187 3,217 3,126 3,844 17 Sweden 1,854 4,223 3,264 3,264 4,556 5,382 7,492 8,100 7,112 8,744 18 Switzerland 28,846 46,874 79,158 79,158 68,976 70,250 111,544 97,688 105,573 86,273 19 Turkey 1,558 1,982 2,617 2,617 2,969 3,031 3,053 3,148 3,269 3,218 70 United Kingdom 103,143 106,349 120,190 120,190 120.126 128,252 125,162 125,935r 128,259 141,739 71 Yugoslavia2 52 53 50 50 50 50 50 51 49 49 22 Other Europe and other former U.S.S.R.3 7,009 9,407 7,562 7,562 6.737 8,174 8,388 7,461 7,568 8,185 23 Canada 27,189 47,037 37,206 37,206 36.474 38,541 42,686 43,300 45,481 42,592 74 Latin America and Caribbean 343,730 342,654 353,416 353,416 323.537 314,839 323,816 328,769 321,219 328,645 75 Argentina 8,924 9,552 10,167 10,167 9,962 10,095 9,845 9,732 9,507 9,386 76 Bahamas 89,379 96,455 99,324 99,324 78,641 68,914 74,018 72,312 71,459 80,393 77 Bermuda 8,782 5,011 8,007 8,007 10,145 11,771 7,441 5,685 6,478 6,285 78 Brazil 21,696 16,184 15,706 15,706 15.031 15,382 14,981 16,210 16,376 16,541 79 British West Indies 145,471 153,749 167,189 167,189 157.469 156,776 166,284 173,907 165,920 164,969 30 Chile 7,913 8,250 6,607 6,607 6,672 6,224 6,511 6,447 6,399 6,214 31 Colombia 6,945 6,507 4,524 4,524 4,326 4,176 3,937 3,907 4,032 3,796 37 Cuba 0 0 0 0 0 0 0 0 0 1 ^3 Ecuador 11,,331111 1,400 760 760 692 730 688 662 640 612 34 Guatemala 888866 1,127 1,135 1,135 1,067 1,170 1,181 1,252 1,245 1,235 31 Jamaica 424 239 295 295 298 332 328 316 300 291 36 Mexico 19,428 21,212 17,899 17,899 17.848 17,489 16,998 16,944 16,771 17,063 37 Netherlands Antilles 17,838 6,779 5,982 5,982 6,194 6,341 6,385 6,388 6,579 6,502 38 Panama 4,364 3,584 3,387 3,387 3.067 2,972 2,912 2,844 2,984 3,062 39 Peru 3,491 3,275 2,529 2,529 2.462 2,414 2,223 2,356 2,515 2,457 40 Uruguay 629 1,126 801 801 709 777 761 714 708 620 41 Venezuela 2,129 3,089 3,494 3,494 3,571 3,524 3,580 3,474 3,595 3,456 42 Other 4,120 5,115 5,610 5,610 5,383 5,752 5,743 5,619 5,711 5,762 43 125,092 98,607 74,914 74,914 73,342 69,074 72,692 78,257r 80,200 82,349 China 44 Mainland 1,579 1,261 2,090 2,090 2,221 2,726 3,161 4,532 2,611 1,687 45 Taiwan 922 1,041 1,390 1,390 1,462 1,501 925 1,080 1,716 1,287 46 Hong Kong 13,991 9,080 5,893 5,893 5,240 4,453 4,519 4,546 4,573 4,266 47 India 2,200 1,440 1,738 1,738 1,616 1,802 1,749 1,786 1,941 1,904 48 Indonesia 2,651 1,942 1,776 1,776 1,711 1,743 1,817 1,821 1,819 1,856 49 Israel 768 1,166 1,875 1,875 1,853 1,832 3,412 3,293 2,857 1,610 50 Japan 59,549 46,713 28,636 28,636 28,612 25,559 27,310 30,381r 31,689 33,256 51 Korea (South) 18,162 8,289 9,262 9,262 11,378 12,066 11,466 12,209 14,018 15,859 57 Philippines 1,689 1,465 1,410 1,410 1,088 1,058 1,698 1,714 1,884 1,865 53 Thailand 2,259 1,807 1,515 1,515 1,155 1,275 1,154 1,081 1,137 1,255 54 Middle Eastern oil-exporting countries4 10,790 16,130 14,252 14,252 10,774 10,947 11,612 10,765 11,666 12,128 55 Other 10,532 8,273 5,077 5,077 6,232 4,112 3,869 5,049 4,289 5,376 56 Africa 3,530 3,122 2,268 2,268 2,786 2,453 1,991 2,054 2,109 2,493 57 Egypt 247 257 258 258 222 207 243 206 218 230 58 Morocco 511 372 352 352 299 313 279 300 271 259 59 South Africa 805 643 622 622 943 889 428 360 341 772 60 Zaire 0 0 24 24 0 0 0 0 0 0 61 Oil-exporting countries5 1,212 936 276 276 494 228 198 394 508 430 62 Other 755 914 736 736 828 816 843 794 771 802 63 Other 6,341 6,637 7,105 7,105 7,324 6,894 6,926 7,634 7,514 7,515 64 Australia 5,300 6,173 6,824 6,824 7,113 6,682 6,674 7,225 7,139 7,240 65 Other 1,041 464 281 281 211 212 252 409 375 275 66 Nonmonetary international and regional organizations6. . . 2,463 3,617 4,563 4,563 5,618 4,667 4,309 5,002 4,343 4,991 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 • October 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 11999999 Dec. Jan. Feb. Mar. Apr. May Junep 1 Total 852,852 875,891 945,334 945,334 1,009,002 2 Banks' claims 708,225 734,995 795,377 795,377 757,214 750,972 813,890 815,083R 820,761 825,814 3 Foreign public borrowers 20,581 23,542 35,090 35,090 42,241 36,541 36,036 37,300R 42,492 40,858 4 Own foreign offices2 431,685 484,535 528,397 528,397 490,280 496,771 552,218 557,339 549,177 552,831 5 Unaffiliated foreign banks 109,230 106,206 101,227 101,227 93,524 87,666 96,030 91,849 92,859 93,427 6 Deposits 30,995 27,230 34,360 34,360 24,259 21,275 24,361 22,399 24,758 22,361 7 Other 78,235 78,976 66,867 66,867 69,265 66,391 71,669 69,450 68,101 71,066 8 All other foreigners 146,729 120,712 130,663 130,663 131,169 129,994 129,606 128,595R 136,233 138,698 9 Claims of banks' domestic customers3 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 31,125 41,559R 48,225 53,657 45,383 44,868 42,571 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- paper. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999 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 Asia 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 other3 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 Asia 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 1051.6 992.8r 939.4r 937.4r 937.6r 952.7r 2 G-10 countries and Switzerland 228.3 242.8 250.9 273.9 240.0 217.7 208.7r 223. lr 206. lr 237.4r 284.1' 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 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 12.3 17.1 8 Sweden 2.6 3.3 4.8 3.1 2.1 2.3 4.0 2.6 3.6 3.0 3.9 9 Switzerland 5.3 7.2 5.9 7.0 7.6 8.5 7.8 8.2 8.8 10.3 10.1 in United Kingdom 104.7 113.4 114.6 125.9 100.1 85.4 56.1r 74.3r 51.7r 73.3r 113.5r ii 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 68.4 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 3.3 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 23 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 25 OPEC2 19.8 26.0 26.0 25.5 26.0 27.1 26.2 26.1 30.1 31.4 28.9 26 Ecuador 1.1 1.3 1.3 1.2 1.2 1.3 1.2 1.1 .9 .8 .7 27 Venezuela 2.4 2.5 3.4 3.3 3.1 3.2 3.5 3.2 3.0 2.8 3.0 28 Indonesia 5.2 6.7 5.6 5.1 4.7 4.7 4.5 5.0 4.4 4.2 3.9 7.9 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 130.3 139.2 149.8 146.1 140.4 143.4 146.7 148.6 142.5 147.3 152.5r 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 3S 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 6.5r 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 4? 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 17.4r 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 11..44 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 52 Eastern Europe 6.9 9.1 12.3 11.3 6.3 5.5 7.1 5.8 5.4 5.2 6.3r 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 A.I' 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 Other6 .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. lr 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 • October 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. 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 7 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 y 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 17 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 1,528 11,,336699 11,,118800 892 847 21 Bahamas 236 141 7 7 1 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 countries2 532 408 393 393 377 392 584 499 536 53 Other1 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. 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 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 70 Netherlands 493 677 875 875 993 997 1,067 1,229 1,981 ?1 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 74 Latin America and Caribbean 20,032 15,543 27,714 27,714 18,825 11,486 12,749 18,206 21,901 75 Bahamas 1,553 2,308 403 403 666 467 755 1,593 1,300 76 Bermuda 140 108 39 39 41 39 524 11 11 77 Brazil 1,468 1,313 835 835 1,112 1,102 1,265 1,476 1,628 78 British West Indies 15,536 10,462 24,388 24,388 14,621 7,393 7,263 12,099 15,814 79 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 other 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 47 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 57 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 countries' 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 • October 2000 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2000 1999 2000 Transaction, and area or country 1998 1999 J J a u n n . e - Dec. Jan. Feb. Mar. Apr. May Junep U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192 2,340,659 1,838,017 256,414 263,946r 293,110 402,373 309,778 268,454 300,356 2 Foreign sales 1,524,203 2,233,137 1,748,050 247,460 253,365 265,365 378,141 306,474 262,142 282,563 3 Net purchases, or sales (—) 49,989 107,522 89,967 8,954 10,581r 27,745 24,232 3,304 6,312 17,793 4 Foreign countries 50,369 107,578 89,936 8,983 10,539r 27,626 24,414 3,243 6,291 17,823 5 Europe 68,124 98,060 93,311 13,283 15,704 24,375 18,594 12,289 7,496 14,853 6 France 5,672 3,813 2,220 66 -240 529 1,831 1,341 -588 -653 7 Germany 9,195 13,410 24,920 1,587 5,633 5,425 4,532 3,431 3,355 2,544 8 Netherlands 8,249 8,083 1,096 1,640 -281 516 277 113 -113 584 9 Switzerland 5,001 5,650 9,158 1,495 2,926 4,804 -913 1,689 585 67 10 United Kingdom 23,952 42,902 22,749 3,080 2,246 6,685 4,794 558 1,440 7,026 11 Canada -4,689 -335 2,639 -940 666 890 286 9 834 -46 12 Latin America and Caribbean 757 5,187 -10,537 -4,735 -5,190 1,989 4,840 -11,441 -2,633 1,898 13 Middle East1 -1,449 - l,066r 6,760 466r 677 1,179' 2,124' 2,07 lr 705 4 14 Other Asia -12,351 4,445r -3,420 75 lr -1,645 -860' -1,716' 52' -121 870 15 Japan -1,171 5,723 -6,374 211 -1,603 -1,115 -2,604 -446 -1,045 439 16 Africa 639 372 585 -18 150r -2 205 228 -50 54 17 Other countries -662 915 598 176 177 55 81 35 60 190 18 Nonmonetary international and regional organizations -380 -56 31 -29 42 119 -182 61 21 -30 BONDS2 19 Foreign purchases 905,782 856,804 570,049 56,928 79,045 99,605 106,302 88,155 89,661 107,281 20 Foreign sales 727,044 602,109 419,404 41,321 58,889 69,476 76,979 70,900 68,163 74,997 21 Net purchases, or sales (—) 178,738 254,695 150,645 15,607 20,156 30,129 29,323 17,255 21,498 32,284 22 Foreign countries 179,081 255,097 150,765 15,626 20,161 30,147 29,422 17,260 21,440 32,335 23 Europe 130,057 140,674 83,093 7,500 10,083 17,063 19,454 7,640 9,475 19,378 24 France 3,386 1,870 1,859 269 -114 1,124 620 -34 104 159 25 Germany 4,369 7,723 1,792 -228 -618 702 348 288 175 897 26 Netherlands 3,443 2,446 367 183 -23 -97 94 279 283 -169 27 Switzerland 4,826 4,553 996 462 -47 526 202 -18 9 324 28 United Kingdom 99,637 106,344 66,010 6,040 10,324 13,478 15,479 4,274 6,237 16,218 29 Canada 6,121 6,043 7,078 961 2,133 1,324 689 764 1,076 1,092 30 Latin America and Caribbean 23,938 60,861 29,846 4,094 4,658 9,659 3,680 4,724 2,735 4,390 31 Middle East1 4,997 1,979 806 309 -86 -177 670 347 -47 99 32 Other Asia 12,662 42,842 28,603 2,591 2,623 2,545 4,506 3,753 7,997 7,179 33 Japan 8,384 17,541 12,432 1,437 1,113 1,173 2,010 580 3,491 4,065 34 Africa 190 1,411 683 257 677 -130 -11 35 40 72 35 Other countries 1,116 1,287 656 -86 73 -137 434 -3 164 125 36 Nonmonetary international and regional organizations -343 -402 -120 -19 -5 -18 -99 -5 58 -51 Foreign securities 37 Stocks, net purchases, or sales (—) 6,227 15,64c -8,744 — l,507r 1,107 -8,884' -8,173' 723' 8,535 -2,052 38 Foreign purchases 929,923 l,177,303r 940,848 125,953r 134,949 176,940' 177,090' 154,322' 145,408 152,139 39 Foreign sales 923,696 1,161,663 949,592 127,460 133,842 185,824' 185,263' 153,599' 136,873 154,191 40 Bonds, net purchases, or sales (—) -17,350 -5,676 1,916 3,872 -3,498r -1,986 -3,431 798 4,263 5,770 41 Foreign purchases 1,328,281 798,267 446,805 52,227 62,186' 74,380 83,838 63,916 79,534 82,951 42 Foreign sales 1,345,631 803,943 444,889 48,355 65,684' 76,366 87,269 63,118 75,271 77,181 43 Net purchases, or sales (-), of stocks and bonds .... -11,123 9,964r -6,828 2,365r -231r — 10,870r — ll,604r l,521r 12,798 3,718 44 Foreign countries -10,778 9,679r -7,207 2,207r —2,551r — 10,899r — ll,703r l,356r 12,722 3,868 45 Europe 12,632 59,247 163 5,001 754 -4,969' -5,923' 1,628' 10,113 -1,440 46 Canada -1,901 -999 -3,993 1,342 -471 -1,865 -1,400 -422 -1,234 1,399 47 Latin America and Caribbean -13,798 -4,726 -13,840 524 -4,868 -4,252 -701 -5,155' -845 1,981 48 Asia -3,992 -42,961 9,700 -4,945 1,955' -713' -4,086' 5,695' 4,971 1,878 49 Japan -1,742 -43,637 12,438 -3,596 866 -879 -1,458' 4,688r 5,978 3,243 50 Africa -1,225 710r 440 532' 99 184' 384 -143 -51 -33 51 Other countries -2,494 -1,592 323 -247 -20 716 23 -247' -232 83 52 Nonmonetary international and regional organizations -345 285 379 158 160 29 99 165 76 -150 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 J a u n n . e - Dec. Jan. Feb. Mar. Apr. May Junep 1 Total estimated 49,039 -9,953 -12,195 4,642 9,543 5,563 -16,871 14,520 -7,018 -17,932 2 Foreign countries 46,570 -10,518 -11,677 4,566 9,578 5,770 -17,092 14,484 -6,820 -17,597 3 Europe 23,797 -38,228 -25,293 -5,533 214 -2,443 -9,971 -632 -2,526 -9,935 4 Belgium and Luxembourg 3,805 -81 -77 -798 731 65 116 -498 -743 252 5 Germany 144 2,285 -1,505 607 1,706 -866 -1,352 -1,676 74 609 6 Netherlands -5,533 2,122 2,972 268 806 2,475 539 700 -1,159 -389 7 Sweden 1,486 1,699 592 317 499 -100 263 -289 266 -47 8 Switzerland 5,240 -1,761 -7,337 1,403 -3,407 -1,382 5 -288 -337 -1,928 9 United Kingdom 14,384 -20,232 -16,459 -3,481 -450 -1,261 -5,150 -533 178 -9,243 10 Other Europe and former U.S.S.R 4,271 -22,260 -3,479 -3,849 329 -1,374 -4,392 1,952 -805 811 11 Canada 615 7,348 1,430 218 -582 8 640 1,819 -681 226 12 Latin America and Caribbean -3,662 -7,523 -4,806 806 -2,409 6,844 -4,789 2,509 -3,122 -3,839 13 Venezuela 59 362 137 -33 54 13 24 26 4 16 14 Other Latin America and Caribbean 9,523 1,661 -7,989 576 -3,837 2,482 -1,596 258 -548 -4,748 15 Netherlands Antilles -13,244 -9,546 3,046 263 1,374 4,349 -3,217 2,225 -2,578 893 16 Asia 27,433 29,359 16,794 9,718 12,403 1,064 -2,943 11,166 -908 -3,988 17 Japan 13,048 20,102 5,626 8,263 1,297 -1,874 494 10,855 -2,486 -2,660 18 Africa 751 -3,021 -222 -541 -43 80 -19 4 -114 -130 19 Other -2,364 1,547 420 -102 -5 217 -10 -382 531 69 20 Nonmonetary international and regional organizations 2,469 565 -518 76 -35 -207 221 36 -198 -335 21 International 1,502 190 -464 75 -7 -194 151 30 -158 -286 22 Latin American regional 199 666 53 1 0 0 70 6 -14 -9 MEMO 23 Foreign countries 46,570 -10,518 -11,677 4,566 9,578 5,770 -17,092 14,484 -6,820 -17,597 24 Official institutions 4,123 -9,861 11,557 4,962 6,763 1,777 -569 6,403 -1,405 -1,412 25 Other foreign 42,447 -657 -23,234 -396 2,815 3,993 -16,523 8,081 -5,415 -16,185 Oil-exporting countries 26 Middle East2 -16,554 2,207 5,608 -3,556 2,913 170 283 811 572 859 27 2 0 0 -1 0 0 0 0 0 0 1. Official and private transactions in marketable U.S. Treasury securities having an 2. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab original maturity of more than one year. Data are based on monthly transactions reports. Emirates (Trucial States). Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 3. Comprises Algeria, Gabon, Libya, and Nigeria, countries. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • October 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 IItteemm 11999977 11999988 11999999 Mar. Apr. May June July Aug. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 60.94 59.60 57.84 59.49 58.70 58.08 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 1.7424 1.7696 1.8278 1.8099 1.7982 1.8091 5 Canada/dollar 1.3849 1.4836 1.4858 1.4608 1.4689 1.4957 1.4770 1.4778 1.4828 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2786 8.2793 8.2781 8.2772 8.2794 8.2796 7 Denmark/krone 6.6092 6.7030 6.9900 7.7228 7.8872 8.2329 7.8501 7.9471 8.2459 8 European Monetary Union/euro3 n.a. n.a. 1.0653 0.9643 0.9449 0.9059 0.9505 0.9386 0.9045 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 273.28 295.70 306.30 346.33 355.02 371.63 354.14 359.04 372.97 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7848 7.7880 7.7907 7.7934 7.7969 7.7995 14 India/rupee 36.36 41.36 43.13 43.64 43.68 44.08 44.76 44.84 45.77 15 Ireland/pound2 151.63 142.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italy/lira 1,703.81 1,736.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 17 Japan/yen 121.06 130.99 113.73 106.31 105.63 108.32 106.13 108.21 108.08 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 9.289 9.394 9.506 9.834 9.419 9.272 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 49.02 49.60 47.08 47.05 45.97 44.52 22 Norway/krone 7.0857 7.5521 7.8071 8.4100 8.6272 9.0533 8.6807 8.7185 8.9526 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 1.7153 1.7096 1.7286 1.7277 1.7414 1.7206 25 South Africa/rand 4.6072 5.5417 6.1191 6.4675 6.6480 7.0238 6.9147 6.8971 6.9570 26 South Korea/won 947.65 1,400.40 1,189.84 1,116.39 1,110.32 1,119.49 1,117.94 1,115.08 1,114.47 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 73.810 74.123 74.867 76.736 78.852 78.283 29 Sweden/krona 7.6446 7.9522 8.2740 8.6971 8.7486 9.0925 8.7471 8.9640 9.2771 30 Switzerland/franc 1.4514 1.4506 1.5045 1.6636 1.6657 1.7190 1.6420 1.6519 1.7149 31 Taiwan/dollar 28.775 33.547 32.322 30.724 30.520 30.772 30.831 30.984 31.106 32 Thailand/baht 31.072 41.262 37.887 37.923 37.993 38.951 39.087 40.318 40.889 33 United Kingdom/pound2 163.76 165.73 161.72 157.99 158.23 150.90 150.92 150.76 148.89 34 Venezuela/bolivar 488.87 548.39 606.82 666.82 672.73 680.00 680.96 685.86 689.17 Indexes4 NOMINAL 35 Broad (January 1997 = 100)5 104.44 116.48 116.87 117.44 118.10 120.70 119.43 119.86 120.65 36 Major currencies (March 1973 = 100)6 91.24 95.79 94.07 95.64 96.31 99.31 96.74 97.68 99.16 37 Other important trading partners (January 1997=100)' 104.67 126.03 129.94 128.54 129.05 130.43 131.62 131.08 130.51 REAL 38 Broad (March 1973 = 100)' 91.33 99.36 98.77 100.07 100.72 102.76 102.07 102.49r 103.20 39 Major currencies (March 1973= 100)6 92.26r 97.25 96.75 99.92 100.64r 103.58r 101.26r 102.33r 104.05 40 Other important trading partners (March 1973 = 100)7 95.87 108.52 107.76 106.59 107.17 108.14 109.61 109.15r 108.58 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. The December 1999 Bulletin contains revised index values resulting from the annual table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, revision to the trade weights. For more information on the indexes of the foreign exchange see inside front cover. value of the dollar, see Federal Reserve Bulletin, vol. 84 (October 1998), pp. 811-18. 2. U.S. cents per currency unit. 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies 3. As of January 1999, the euro is reported in place of the individual euro area currencies. of a broad group of U.S. trading partners. The weight for each currency is computed as an By convention, the rate is reported in U.S. dollars per euro. These currency rates can be average of U.S. bilateral import shares from and export shares to the issuing country and of a derived from the euro rate by using the fixed conversion rates (in currencies per euro) as measure of the importance to U.S. exporters of that country's trade in third country markets. shown below: 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of broad index currencies that circulate widely outside the country of issue. The weight for each Euro equals currency is its broad index weight scaled so that the weights of the subset of currencies in the 13.7603 Austrian schillings 1936.27 Italian lire index sum to one. 40.3399 Belgian francs 40.3399 Luxembourg francs 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 5.94573 Finnish markkas 2.20371 Netherlands guilders broad index currencies that do not circulate widely outside the country of issue. The weight 6.55957 French francs 200.482 Portuguese escudos for each currency is its broad index weight scaled so that the weights of the subset of 1.95583 German marks 166.386 Spanish pesetas currencies in the index sum to one. .787564 Irish pounds Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A63 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases 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 A72 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

112 Federal Reserve Bulletin • October 2000 Index to Statistical Tables References are to pages A3-A62, although the prefix "A" is omitted in this index ACCEPTANCES, bankers (See Bankers acceptances) Federal finance Assets and liabilities (See also Foreigners) Debt subject to statutory limitation, and types and ownership Commercial banks, 15-21 of gross debt, 27 Domestic finance companies, 32, 33 Receipts and outlays, 25, 26 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 25 Foreign-related institutions, 20 Treasury operating balance, 25 Automobiles Federal Financing Bank, 30 Consumer credit, 36 Federal funds, 23, 25 Production, 44, 45 Federal Home Loan Banks, 30 Federal Home Loan Mortgage Corporation, 30, 34, 35 Federal Housing Administration, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Land Banks, 35 Bankers balances, 15-21. (See also Foreigners) Federal National Mortgage Association, 30, 34, 35 Bonds (See also U.S. government securities) Federal Reserve Banks New issues, 31 Condition statement, 10 Rates, 23 Discount rates (See Interest rates) Business activity, nonfinancial, 42 U.S. government securities, 5, 10, 11, 27 Business loans (See Commercial and industrial loans) Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 CAPACITY utilization, 43 Federally sponsored credit agencies, 30 Capital accounts Finance companies Commercial banks, 15-21 Assets and liabilities, 32 Federal Reserve Banks, 10 Business credit, 33 Certificates of deposit, 23 Loans, 36 Commercial and industrial loans Paper, 22, 23 Commercial banks, 15-21 Float, 5 Weekly reporting banks, 17, 18 Flow of funds, 37-41 Commercial banks Foreign currency operations, 10 Assets and liabilities, 15-21 Foreign deposits in U.S. banks, 5 Commercial and industrial loans, 15-21 Foreign exchange rates, 62 Consumer loans held, by type and terms, 36 Foreign-related institutions, 20 Real estate mortgages held, by holder and property, 35 Foreign trade, 51 Time and savings deposits, 4 Foreigners Commercial paper, 22, 23, 32 Claims on, 52, 55-7, 59 Condition statements (See Assets and liabilities) Liabilities to, 51-3, 58, 60, 61 Construction, 42, 46 Consumer credit, 36 GOLD Consumer prices, 42 Certificate account, 10 Consumption expenditures, 48, 49 Stock, 5, 51 Corporations Government National Mortgage Association, 30, 34, 35 Profits and their distribution, 32 Gross domestic product, 48, 49 Security issues, 31, 61 Cost of living (See Consumer prices) Credit unions, 36 HOUSING, new and existing units, 46 Currency in circulation, 5, 13 Customer credit, stock market, 24 INCOME, personal and national, 42, 48, 49 Industrial production, 42, 44 DEBT (See specific types of debt or securities) Insurance companies, 27, 35 Demand deposits, 15-21 Interest rates Depository institutions Bonds, 23 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4—6, 12 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22 Discount rates at Reserve Banks and at foreign central banks and International capital transactions of United States, 50-61 foreign countries (See Interest rates) International organizations, 52, 53, 55, 58, 59 Discounts and advances by Reserve Banks (See Loans) Inventories, 48 Dividends, corporate, 32 Investment companies, issues and assets, 32 Investments (See also specific types) EMPLOYMENT, 42 Commercial banks, 4, 15-21 Euro, 62 Federal Reserve Banks, 10, 11 Financial institutions, 35 FARM mortgage loans, 35 Federal agency obligations, 5, 9-11, 28, 29 LABOR force, 42 Federal credit agencies, 30 Life insurance companies (See Insurance companies) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 15-21 Savings institutions, 35-41 Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Insured or guaranteed by United States, 34, 35 Foreign transactions, 60 New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Special drawing rights, 5, 10, 50, 51 Production, 43, 45 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 27 Member banks, reserve requirements, 8 New security issues, 31 Mining production, 45 Rates on securities, 23 Mobile homes shipped, 46 Stock market, selected statistics, 24 Monetary and credit aggregates, 4, 12 Stocks {See also Securities) Money and capital market rates, 23 New issues, 31 Money stock measures and components, 4, 13 Prices, 24 Mortgages (See Real estate loans) Mutual funds, 13, 32 Student Loan Marketing Association, 30 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 NATIONAL defense outlays, 26 National income, 48 Thrift institutions, 4. (See also Credit unions and Savings institutions) Time and savings deposits, 4, 13, 15-21 OPEN market transactions, 9 Trade, foreign, 51 Treasury cash, Treasury currency, 5 PERSONAL income, 49 Treasury deposits, 5, 10, 25 Prices Treasury operating balance, 25 Consumer and producer, 42, 47 Stock market, 24 UNEMPLOYMENT, 42 Prime rate, 22 U.S. government balances Producer prices, 42, 47 Commercial bank holdings, 15-21 Production, 42, 44 Treasury deposits at Reserve Banks, 5, 10, 25 Profits, corporate, 32 U.S. government securities Bank holdings, 15-21, 27 REAL estate loans Dealer transactions, positions, and financing, 29 Banks, 15-21, 35 Federal Reserve Banks holdings, 5, 10, 11, 27 Terms, yields, and activity, 34 Foreign and international holdings and transactions, 10, 27, 61 Type and holder and property mortgaged, 35 Open market transactions, 9 Reserve requirements, 8 Outstanding, by type and holder, 27, 28 Reserves Rates, 23 Commercial banks, 15-21 U.S. international transactions, 50-62 Depository institutions, 4-6, 12 Utilities, production, 45 Federal Reserve Banks, 10 U.S. reserve assets, 51 VETERANS Administration, 34, 35 Residential mortgage loans, 34, 35 Retail credit and retail sales, 36, 42 WEEKLY reporting banks, 17, 18 Wholesale (producer) prices, 42, 47 SAVING Flow of funds, 37-41 National income accounts, 48 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • October 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 PI AN ALTO-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 Secretary 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 SIDNEY M. SUSSAN, Deputy Associate Director DIVISION OF CONSUMER 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

A67 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 JOSEPH H. HAYES, JR., Assistant Director JEFFREY C. MARQUARDT, Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources Function EDGAR A. MARTINDALE, Assistant Director MARSHA REIDHILL, Assistant Director SHEILA CLARK, EEO Programs Director JEFF J. STEHM, Assistant Director DIVISION OF SUPPORT SERVICES OFFICE OF THE INSPECTOR GENERAL ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director BARRY R. SNYDER, Inspector General DAVID L. WILLIAMS, Assistant Director 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

116 Federal Reserve Bulletin • October 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

A69 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, Jackson, 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

118 Federal Reserve Bulletin • October 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, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volume to Fair Lending $5.00. How to File a Consumer Complaint about a Bank GUIDE TO THE FLOW OF FUNDS ACCOUNTS. 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

A71 STAFF STUDIES: Only Summaries Printed in the 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by BULLETIN James T. Fergus and John L. Goodman, Jr. July 1993. 20 pp. Studies and papers on economic and financial subjects that are of 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKgeneral interest. Requests to obtain single copies of the full text or ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING to be added to the mailing list for the series may be sent to PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, Publications Services. by Stephen A. Rhoades. July 1994. 37 pp. 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH print. IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. Lowrey. December 1997. 17 pp. 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and DENCE, by Gregory Elliehausen. April 1998. 35 pp. Donald Savage. February 1990. 12 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- KET DISCIPLINE, by Study Group on Subordinated Notes VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by and Debentures, Federal Reserve System. December 1999. Gregory E. Elliehausen and John D. Wolken. September 69 pp. 1990. 35 pp. 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

120 Federal Reserve Bulletin • October 2000 Maps of the Federal Reserve System ATLANTA 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

1-A ^ 2 -B 3 -C 4 -D Pittsburgh | Ms' K • P I —WV Buffalo . ^ " • • V te DE / OT *IMpcinnati T BOSTON PHILADELPHIA RICHMOND NEW YORK 6 -F ^^ 7 -G 8 -H Hffle CLEVELAND KY Birmingham^ HM mm J^Hk^^JJGG^sville K TN TCOMFCVILLE New Orleans ATLANI PA CHICAGO ST. LOUIS 9-1 MINNEAPOLIS 10-J ^ 1122--LL KANS KS CITY HHAAWWAAIIII ||||.. DALLAS SSAANN FFRRAANNCCIISSCCOO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin • October 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 M. 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 Jack Guynn Paula Lovell Patrick K. Barron James M. McKee Birmingham 35283 D. Bruce Carr Andre T. Anderson Jacksonville 32231 William E. Flaherty Robert J. Slack Miami 33152 Karen Johnson-Street James T. Curry III Nashville 37203 Frances F. Marcum Melvyn K. Purcell1 New Orleans 70161 Dwight H. Evans Robert J. Musso1 CHICAGO* 60690 Arthur C. Martinez Michael H. Moskow Robert J. Darnall William C. Conrad Detroit 48231 Timothy D. Leuliette David R. Allardice1 ST. LOUIS 63166 Susan S. Elliott William Poole Charles W. Mueller W. LeGrande Rives Little Rock 72203 Diana T. Hueter Robert A. Hopkins Louisville 40232 J. Stephen Barger Thomas A. Boone Memphis 38101 Mike P. Sturdivant, Jr. Martha Perine Beard MINNEAPOLIS 55480 James J. Howard Gary H. Stern Ronald N. Zwieg 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. Mullinix2 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

A75 Publications of Interest FEDERAL RESERVE CONSUMER CREDIT PUBLICATIONS The Federal Reserve Board publishes a series of bro- Shop . . . The Card You Pick Can Save You Money is chures covering individual credit laws and topics, as designed to help consumers comparison shop when pictured below. looking for a credit card. It contains the results of the Seven brochures on the mortgage process are avail- Federal Reserve Board's survey of the terms of credit able: A Consumer's Guide to Mortgage Lock-Ins; A card plans offered by credit card issuers throughout the Consumer's Guide to Mortgage Refinancings; A Con- United States. Because the terms can affect the amount sumer's Guide to Mortgage Settlement Costs', Con- an individual pays for using a credit card, the booklet sumer Handbook on Adjustable Rate Mortgages', lists the annual percentage rate (APR), annual fee, Home Mortgages: Understanding the Process and grace period, type of pricing (fixed or variable rate), Your Right to Fair Lending-, Looking for the Best other features, and a telephone number for each card Mortgage: Shop, Compare, Negotiate', and When Your issuer surveyed. Home Is on the Line: What You Should Know about A Guide to Business Credit for Women, Minorities, Home Equity Lines of Credit. These brochures were and Small Businesses covers the credit application prepared in conjunction with other federal agencies process and points out sources of technical assistance and trade and consumer groups. for small business loans. It also covers borrower rights The Board also publishes the Consumer Handbook under the Equal Credit Opportunity Act. to Credit Protection Laws. This booklet explains, Up to 100 copies of consumer publications are availamong other things, how to shop for and obtain credit, able free of charge from Publications Services, Mail how to maintain a good credit rating, and how to Stop 127, Board of Governors of the Federal Reserve dispute unfair credit transactions and resolve billing System, Washington, DC 20551. Some brochures errors. It also covers some aspects of electronic funds are available on the Board's web site at http:// transfers. www.federalreserve.gov/pubsA5rochure.htm/. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • October 2000 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications Services, mail stop 127, Board contains Regulations B, C, E, M, Z, AA, BB, and DD, of Governors of the Federal Reserve System, Washingand associated materials. ton, DC 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications Services, Board of Goverare constructed. It lists each flow series in the Board's nors of the Federal Reserve System, Washington, DC flow of funds publication, "Flow of Funds Accounts of 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A77 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z. 1 Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis