Federal Reserve Bulletin, 2001-01

Volume 87 • Number 1 • January 2001 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 L RETAIL FEES OF DEPOSITORY Chairman Greenspan's statement on the death of INSTITUTIONS, 1994-99 Henry B. Gonzalez. Under legislative mandate, the Federal Reserve Approval of 2001 fee schedules for payment ser- Board has for many years sponsored annual sur- vices of Federal Reserve Banks. veys of the retail fees charged by depository Annual adjustment for reserve calculations and institutions. Analysis of the data for the most deposit reporting. recent six years (1994-99) shows that for the most common types of depository accounts sur- Adjustment of the dollar amount under Regulaveyed, few of the fees and minimum balances tion Z that triggers additional disclosure requirechanged by a statistically significant amount. ments for mortgage loans. However, the most common types of ATM fees Request for comment on proposed revisions to and the fees for certain special actions, such as Regulation C. stop-payment orders, increased significantly and by more than the rate of consumer price inflation Launch of interactive web site for consumer reguover the period. In addition, for almost all of lation issues in Internet banking. the fees charged for seven common services and Publication of the November 2000 update to the special actions, banks that were part of multistate Commercial Bank Examination Manual. banking organizations on average charged significantly higher fees than single-state banks, and Enforcement actions and terminations of previous large banks charged significantly more than small actions. banks. Although they narrowed, the differences Change in Board staff. remained statistically significant after analyses that controlled for the general location of the institutions, for size (in the case of the multistate 20 MINUTES OF THE MEETING OF THE versus single-state comparison), and for multi- FEDERAL OPEN MARKET COMMITTEE state operations (in the case of the large versus HELD ON OCTOBER 3, 2000 small comparison). At this meeting, the Committee voted to maintain the existing stance of monetary policy, keeping 12 INDUSTRIAL PRODUCTION AND CAPACITY its target for the federal funds rate at 6V2 percent. UTILIZATION FOR NOVEMBER 2000 The Committee members also agreed that the risks continued to be weighted mainly toward Industrial production fell 0.2 percent in Novemconditions that might generate heightened inflaber, to 148.6 percent of its 1992 average. The rate tion pressures in the future. of capacity utilization for total industry fell to 81.6 percent in November, a level V2 percentage point below its 1967-99 average. 27 LEGAL DEVELOPMENTS Various bank holding company, bank service cor- 15 ANNOUNCEMENTS poration, and bank merger orders; and pending Federal Open Market Committee directive. cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 FINANCIAL AND BUSINESS STATISTICS A66 BOARD OF GOVERNORS AND STAFF These tables reflect data available as of A68 FEDERAL OPEN MARKET COMMITTEE AND November 28, 2000. STAFF; ADVISORY COUNCILS A3 GUIDE TO TABULAR PRESENTATION A70 FEDERAL RESERVE BOARD PUBLICATIONS A4 Domestic Financial Statistics A42 Domestic Nonfinancial Statistics A72 MAPS OF THE FEDERAL RESERVE SYSTEM A50 International Statistics A74 FEDERAL RESERVE BANKS, BRANCHES, A63 GUIDE TO STATISTICAL RELEASES AND AND OFFICES TABULAR PRESENTATION A64 INDEX TO STATISTICAL TABLES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PUBLICATIONS COMMITTEE Lynn S. Fox, Chair • lennifer 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

Retail Fees of Depository Institutions, 1994-99 Timothy H. Hannan, of the Board's Division of increased by statistically significant amounts that Research and Statistics, prepared this article. Eli exceeded the rate of inflation during the period Mou provided research assistance. • The level of the most common types of transaction fees imposed for the use of automated teller The fees that depository institutions charge custom- machines (ATMs) increased by statistically signifiers for the use of checking and savings accounts, cant amounts that substantially exceeded the inflation automated teller machines, and other retail services rate between 1994 and 1999, and the proportion of have received substantial attention over the past depository institutions assessing a fee ("surcharge") decade. When the Congress in 1989 established for use of their ATMs by nondepositors increased assessment rules that were likely to raise the premi- dramatically over the period for which the surcharge ums that depository institutions paid for deposit was tracked (1996-99). insurance, a particular concern was that institutions might markedly increase retail fees or eliminate some The results of two other analyses, for banks alone, services to offset their higher premiums. As a result are also reported: (1) a comparison of fees charged by of this concern, the Congress directed the Board of multistate banks (banks that are part of organizations Governors of the Federal Reserve System to report with banking operations in two or more states) with annually on changes in the availability of retail bank- those charged by single-state banks and (2) a coming services and in the level of the associated fees. parison of fees charged by banks of different sizes. The first survey on retail fees and services commis- Such comparisons for each year of data give results sioned by the Board under the new law was con- that are broadly similar across the years. For ease of ducted in 1989, and the results were reported in 1990; presentation, these comparisons are reported here for the most recent report, covering 1999, was released a single year (1999, the year of the latest survey): in July 2000. The reports presented estimates each year of the • In a selection of the most common services and proportion of all depository institutions that were actions, multistate banks charged, on average, higher offering various services, the proportion that were fees than single-state banks for almost all items. In charging a fee for these services, the average level of most cases, the differences were statistically signifithe fees, and the changes in these estimates from the cant after controlling for the size and general location previous year. This article reports a selection of the of the sampled banks estimates for each of the years from 1994 through • Large banks charged higher fees, on average, 1999.1 than small banks did. The differences were statisti- Several findings for the 1994-99 period are cally significant after controlling for the location of noteworthy: the sampled banks and for their status as either multistate or single-state banks. • Only a few of the fees and minimum balances associated with various types of checking and savings accounts changed over the period by statistically BACKGROUND significant amounts • Fees associated with several special actions— In section 1002 of the Financial Institutions Reform, stop-payment orders, customer-written checks Recovery, and Enforcement Act of 1989, the Conreturned for insufficient funds, and overdrafts— gress directed the Board to report annually on changes in the availability of retail banking services and in the level of the associated fees. Section 1002 further specified that the reports be based on annual 1. For an examination of the results from the 1989-93 surveys, see Timothy H. Hannan, "Recent Trends in Retail Fees and Services of surveys of samples of insured depository institutions Depository Institutions," Federal Reserve Bulletin, vol. 80 (Septem- that are representative of all such institutions in terms ber 1994), pp. 771-81. The reports covering the years 1996-99 are of size and location. available at www.federalreserve.gov/boarddocs/RptCongress/ Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • January 2001 The sampled institutions were members either of Because of numerous differences that can exist the Bank Insurance Fund, a group consisting mostly between members of the Bank Insurance Fund and of commercial banks (hereafter referred to as banks), members of the Savings Association Insurance Fund, or of the Savings Association Insurance Fund, a including differences in deposit insurance premiums, group consisting mostly of savings and loan associa- results were reported separately for banks and savtions (hereafter referred to as savings associations). ings associations. Using data obtained from the 1999 For all the surveys, the institutions were picked ran- survey, this article also examines the differences in domly from different regions of the country encom- the estimates between large and small banks and passing all fifty states and the District of Columbia between multistate and single-state banks. and from a comprehensive range of asset-size groupings (see the appendix for more detail on the design of the sample). All of the surveys were conducted by THE INCIDENCE AND LEVEL telephone with the same procedures and by the same OF FEES OVER TIME private survey organization operating under contract with the Federal Reserve Board. To improve the Depository institutions provide a large number of accuracy of the results, each telephone interview services with widely differing fees. Dividing service typically covered only one product category. fees into three different types provides a manageable Statistical analysis of the survey results produced way to deal with the variations; these types are fees estimates for the entire population of banks and savassociated with (1) the maintenance and use of variings associations in the United States. Each report ous kinds of deposit accounts, (2) special actions after the first gave the change in fee amount and in such as stop-payment orders and the handling of service availability between the time of the preceding checks written with insufficient funds, and (3) the use survey and the most recent one, along with an indicaof ATM services. tion of the statistical significance of any changes.2 Legislation in 1994 and 1996 required that trends be reported in more detail. Section 108 of the Riegle- Neal Interstate Banking and Branching Efficiency Deposit Accounts Act of 1994 required that data be reported not only nationally but also by geographic region and size Analysis of the fees charged in connection with class of institution and according to whether institu- deposit accounts must, at the very least, account for tions engaged in multistate activities. To meet these the distinctions among noninterest checking accounts, additional requirements, the Board in 1994 substan- NOW (negotiable order of withdrawal) accounts, and tially expanded the number of institutions surveyed, savings accounts. Even within these categories, howfrom approximately 330 (about 150 banks and about ever, accounts can differ considerably. In the case of 180 savings associations) to approximately 1,050 noninterest checking, for example, accounts can dif- (650-700 banks and 350-400 savings associations). fer in terms of the nonchecking services provided, the Under section 2608 of the Economic Growth and minimum balances that depositors must maintain to Regulatory Paperwork Reduction Act of 1996, the qualify for various fee levels, and the mix of fees geographic detail in the annual reports was increased charged. In the case of savings accounts, fees can from regional coverage to coverage for each state and depend on whether the account is a passbook or each consolidated metropolitan statistical area. The statement account and on minimum balance requirefirst survey under these expanded terms was con- ments. Therefore, the characteristics of accounts must ducted in 1996. be specified when comparing the levels of fees over time. The following discussion presents information on two types of noninterest checking account, one type of NOW account, and two types of savings account. Data on the proportion of institutions offer- 2. Here and in the annual reports, statistical significance is repreing each of these account types is included to indicate sented with 90 percent and 95 percent confidence levels. With a 95 percent confidence level, for instance, the probability is less than prevalence. 5 percent that a change was observed between two samples but did Financial institutions offer many other types of not occur in the population as a whole. The finding of a statistically significant change carries no implication about the size of the change noninterest checking account not analyzed in this in the population. The discussion in this article covers the statistically article, including the so-called basic banking account. significant results, referring to them as such or simply as "signifi- Basic banking accounts impose low fees and minicant." Most of the nonsignificant changes shown in the tables are not discussed. mum balances (or none at all), often in exchange for Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Fees, of Depository Institutions, 1994-99 3 limitations in service, such as a cap on the number of Single balance and fee. Single balance and fee checks that may be written per month.3 accounts involve no fee if a specified minimum balance is maintained; otherwise the account incurs a single monthly fee with no other charges. The esti- Noninterest Checking mated proportion of banks offering this account fluctuated between 29 percent and 41 percent over the The following two fee structures are reported for 1994-99 period, while the proportion for savings noninterest checking accounts: (1) "single balance associations varied between 14 percent and 24 perand fee" and (2) "fee only" (table 1). cent. Neither the low-balance fee nor the minimum balances required to avoid the fee or to open the account changed significantly during this period for either type of institution. 3. Although the surveys do not provide direct evidence on the extent to which such accounts are offered, they do cover certain no-fee Fee only. Fee-only noninterest checking accounts accounts. In 1999, approximately 11 percent of banks and 30 percent of savings associations offered no-fee noninterest checking accounts, levy a monthly fee regardless of the account balance which entail no monthly or per-check fees (Board of Governors of the and may also impose a per-check charge. Because of Federal Reserve System, Annual Report to the Congress on Retail the small number of sampled institutions that levied a Fees and Services of Depository Institutions, Board of Governors, 2000, p. 3, table 1). per-check charge for this type of account, informa- 1. Selected checkable accounts at banks and savings associations, average low-balance fees and balance requirements, 1994-99 Dollars except as noted Percent Account 1994 1995 1996 1997 1998 1999 change, JljjlJgM | ,-v, 1994-99 BANKS Noninterest checking Single balance and fee1 Percent offering 36.4 29.4 32.9 39.3 35.6 40.6 T Monthly low-balance fee 6.14 6.61 6.34 6.09 6.43 6.15 .2 Minimum balance To avoid fee 503.62 479.22 480.26 479.41 498.61 515.62 2.4 To open 109.45 illillll. . . i^SiilJ 123.33 123.96 115.01 103.65 -5.3 Fee only 2 Percent offering 35.4 45.7 34.2 33.3 36.3 38.9 t Monthly low-balance fee 4.39 4.61 5.02 4.49 ' 4.73 5.17 17.8** Minimum balance to open 79.88 81.62 82.15 61.43 76.34 65.20 -18.4** NOW account Single balance and fee1 Percent offering S 40.2 43.9 44.0 56.7 50.8 54.2 •j-** Monthly low-balance fee 8.02 8.49 8.11 7.81 8.07 8.39 4.6 Minimum balance To avoid fee 1,055.43 1,069.54 1,078.78 1,051.51 1,109.02 1,060.37 .5 701.45 653.72 662.67 g 616.12 641.34 -8.6 SAVINGS ASSOCIATIONS Noninterest checking Single balance and fee1 Percent offering 20.1 14.4 21.1 18.9 24.3 21.4 t Monthly low-balance fee 5.58 5.95 5.76 5.78 5.94 6.00 7.5 Minimum balance To avoid fee 390.89 383.61 424.54 380.45 410.97 419.68 7.4 To open 131.74 152.71 ' 122.16 101.42 129.87 -1.4 Fee only2 Percent offering 19.0 22.1 26.9 21.0 24.0 24.6 t* Monthly low-balance fee 4.28 4.04 4.13 4.48 4.97 4.30 .5 Minimum balance to open 92.33 72.38 68.80 70.44 119.97 53.98 -41.5** NOW account Single balance and fee1 Percent offering 31.8 38.5 42.5 46.3 50.2 49.3 Monthly low-balance fee 6.54 6.84 6.54 6.65 6.64 6.94 6.1 Minimum balance To avoid fee 550.95 597.83 783.33 645.68 644.91 744.28 35.1** To open 291.60 365.15 274.65 286.56 349.50 19.9 NOTE. The change in the consumer price index between the dates of the 1994 * Significant at the 90 percent confidence level. For explanation of confidence and 1999 surveys was about 11 percent. Average fees and balance requirements levels, see text note 2. are calculated only for those institutions that offer the account. ** Significant at the 95 percent confidence level. t Percent change for "percent offering" not reported, but instances of statisti- 1. A monthly fee for balances below the minimum, no monthly fee for cally significant change are noted. balances above the minimum, and no other charges. . . . Data are insufficient to report or are not applicable across surveys. 2. A monthly fee, no minimum balance to eliminate the fee, and a charge per check in some cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4 Federal Reserve Bulletin • January 2001 tion on the incidence and level of the check charge is NOW Accounts not presented. The proportion of banks offering this type of Negotiable order of withdrawal accounts are checkaccount was typically between 33 percent and 40 per- ing accounts that pay interest to the account holder; cent during the 1994-99 period, and the proportion of presumably because they pay interest, NOW accounts savings associations offering it was between 19 per- have tended to have fees that are higher than those cent and 27 percent. At both types of institution, the observed for noninterest checking accounts. Like minimum balance required to open the account fell noninterest accounts, they can differ considerably in by statistically significant amounts, to about $65 at terms of the balances that depositors must maintain to banks and about $54 at savings associations. qualify for various fee levels and in terms of the mix The trends in the monthly fees charged for this of fees charged the account holder. account differ considerably between banks and sav- A common type of NOW account, both at banks ings associations. At banks, the monthly fee rose a and at savings associations, carries the "single balstatistically significant 18 percent, from $4.39 in 1994 ance and fee" structure defined above for noninterest to $5.17 in 1999, compared with the roughly 11 per- checking accounts. The estimated proportion of banks cent rise in the consumer price index (CPI) in the and savings associations offering this type of account same period.4 At savings associations, however, the increased significantly at both banks and savings monthly fee, while fluctuating some in the interven- associations during the period. By 1999, 54 percent ing years, did not change significantly between 1994 of banks and 49 percent of savings associations and 1999. offered the account (table 1). The monthly fee, the minimum balance to avoid the fee, and the minimum balance to open for the 4. The CPI used throughout is the urban index, all items. Compari- "single balance and fee" type of NOW account have sons with the CPI are intended to place changes in fees and minimum long been higher at banks than at savings associabalances in the context of changes in the prices of other common consumer items. tions. The gap narrowed, however, during the 2. Selected "single balance and fee" savings accounts at banks and savings associations, average low-balance fees and balance requirements, 1994-99 Dollars except as noted NOTE. See notes to table 1. * Significant at the 90 percent confidence level. 1. Institution records transactions and balances in document kept by the ** Significant at the 95 percent confidence level. account holder. 2. Institution mails to the account holder a periodic statement showing transactions and balances. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Fees, of Depository Institutions, 1994-99 5 1994-99 period for the minimum balance to avoid quired to avoid the fee increased 26 percent at savthe fee, which increased a statistically significant ings associations. Both of these increases were well 35 percent at savings associations. in excess of the change in the CPI during the period. Savings Accounts Summary of Deposit Account Results The two major types of savings account are the Only a limited number of balance requirements passbook account and the statement account. In pass- and fees changed significantly for the five types of book accounts, transactions and balances are re- deposit account surveyed over the 1994-99 period. corded in a passbook kept by the account holder; in Among the three checkable types of deposit account, statement accounts, periodic statements of balances statistically significant change was concentrated and recent activity are mailed to account holders. The in fee-only noninterest accounts: The monthly fee most common fee structure is of the "single balance increased at banks, and the minimum balance to open and fee" type. decreased at both institution types. The only other Throughout the period, savings accounts with this significant change was in NOW accounts at savings fee structure were more commonly offered by banks associations—an increase in the minimum balance to and savings associations as statement accounts than avoid a fee. as passbook accounts, and the proportion of savings Among the two savings account types, passbook associations offering the statement account increased accounts had two significant changes: an increase in significantly during the period (table 2). The other the low-balance fee at banks and an increase in the statistically significant changes were for passbook minimum balance to avoid a fee at savings associaaccounts: The low-balance fee increased 31 percent tions. Although a significant increase in the proporat banks, and the estimated minimum balance re- tion of savings associations offering the statement 3. Fees for selected special actions—incidence and average level at banks and savings associations, 1994-99 Dollars except as noted Item 1994 1995 1997 BANKS Stop-payment orders Percent charging ... 99.8 99.0 99.4 99.2 Fee 13.29 13.68 13.68 13.97 NSF checks Percent charging .. 100.0 100.0 100.0 100.0 Fee 15.33 15.71 16.36 16.55 Overdrafts m m w hI Percent charging 99.4 98.4 100.0 97.6 99.9 f Fee 14.92 15.67 16.28 15.73 17.45 17.0** Deposit items returned Percent charging 81.7 59.0 59.3 55.7 61.7 Fee 6.89 4.95 5.50 5.15 5.49 SAVINGS ASSOCIATIONS l i B i i S MI Stop-payment orders Percent charging 99.6 100.0 100.0 100.0 Fee 13.33 14.09 14.08 14.68 NSF checks Percent charging 99.7 99.8 99.9 100.0 100.0 Fee 16.30 17.06 17.62 18.01 17.98 Overdrafts Percent charging 97.4 99.3 99.4 97.5 ,7.6 Fee ' 15.43 16.75 17.53 17.67 18.97 22.9** ||§g8!jj|jl|jjj^ Deposit items returned Percent charging 93.5 78.2 80.5 74.4 78.3 78.6 t* Fee 8.36 6.85 7.62 7.38 7.84 7.65 -8.5 NOTE. NSF (not sufficient funds) checks are those written without sufficient * Significant at the 90 percent confidence level. funds in the account to cover them; they are not honored by the paying bank or ** Significant at the 95 percent confidence level. savings association. Overdrafts are checks written without sufficient funds but are honored by the paying institution. See also notes to table 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

6 Federal Reserve Bulletin • January 2001 account was observed, no significant change in state- returned for insufficient funds and that depository ment account fees was found at either banks or institutions have a right to recover their costs in ways savings associations. available to them. Perhaps because of the controversy surrounding this fee, the proportion of institutions charging it Special Actions (generally about 60 percent of banks and about 80 percent of savings associations) has been smaller The evidence on fees associated with special actions than the proportion charging for stop-payment orders, is more uniform than that on deposit accounts. With NSF checks, and overdrafts.5 Of those institutions one exception, average fees for the four types of that levied a fee, the average charge at banks and at special action covered by the surveys rose by statisti- savings associations was typically less than half of cally significant amounts between 1994 and 1999 and the charge for NSF checks. faster than the change in the CPI (table 3). ATM Serxnces Stop-Payment Orders Many fees may be assessed for services rendered Throughout the period, virtually all banks and sav- by automated teller machines (ATMs). A depository ings associations charged for a stop-payment order, institution may levy an annual fee on depositors who which is a request by a customer that the institution use its ATMs as well as impose separate fees on both not pay a particular check previously written by the customers and noncustomers for various types of customer. The average charge rose from about $13.30 ATM transactions. Fees that the institution levies to about $15.30 at both banks and savings associa- on its own customers for use of ATMs may differ tions, a statistically significant increase of about depending on whether the transaction is a with- 15 percent. drawal, a deposit, or a balance inquiry; further, the fee may vary depending on whether the institution's customer uses the institution's own ATM (an "on NSF Checks and Overdrafts us" transaction) or another institution's ATM (an "on others" transaction). From the outset, the surveys A check drawn on an account with insufficient funds elicited information on all of these aspects of ATM may or may not be honored by the paying bank. fees. Beginning with the 1996 survey, information When not honored, it is called an NSF (not sufficient was also obtained on the incidence and level of the funds) check; when honored, it is called an overdraft "surcharge," which is the fee that ATM owners levy and represents an extension of credit. Throughout the on users who do not maintain an account with the period, nearly all depository institutions charged for depository institution operating the machine. NSF checks and overdrafts, and the fees were generally $2 to $3 higher than for stop-payment orders. The increases in the fees charged for these actions at Annual Fee both banks and savings associations over the period were statistically significant and ranged from 15 per- Survey results indicate that a small minority of insticent to 23 percent. tutions charged their customers an annual fee for the use of ATM services during the 1994-99 period (table 4). The incidence of the fee varied between Deposit Items Returned 13 percent and 19 percent at banks; at savings associations, it declined significantly, from 18 percent to When a customer deposits a check that is returned 8 percent. In addition, the average fee declined a by the paying bank (because of insufficient funds, for significant amount at banks and in 1999 was about $8 example), the bank in which it was deposited may at both types of institution. Clearly, the annual fee, charge the customer a fee. The levying of such charges is controversial. Many have argued that it 5. Indeed the incidence of this fee actually decreased during the is not the depositor's fault that the check is drawn period by statistically significant amounts, from 82 percent to 57 peron insufficient funds, and charging the depositor in cent at banks and from 94 percent to 79 percent at savings associasuch cases is therefore unreasonable. Others argue tions. Some caution is in order in assessing this trend, however, because it reflects unusually high estimates obtained from the 1994 that such fees may provide a useful incentive for survey. Overall, the readings on the incidence of the fee for deposit depositors to refuse checks thought likely to be items returned were quite stable for the last four years of the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Fees, of Depository Institutions, 1994-99 7 while still charged by a minority of institutions, institutions, the incidence of this type of fee declined became less of a factor for ATM customers during the by statistically significant amounts at both banks and period. savings associations between 1994 and 1999. By 1999, only 6 percent of banks charged for withdrawals "on us" and 2 percent charged for deposits "on "On Us" Fees us." In 1999, only 2 percent of savings associations charged for "on us" withdrawals and less than 1 per- Another type of ATM fee that appears to have cent charged for "on us" deposits. Because so few become, if anything, less important over the years has institutions charge for "on us" ATM transactions, been the "on us" transaction fee, or the fee that the sufficiently reliable information on the level of fees institution charges its own customers for use of its charged by those institutions that do levy the fee is own ATMs. Never exceeding a small proportion of not available for many of the years covered. 4. Fees for automated teller machine services—incidence and average level at banks and savings associations, 1994-99 Dollars except as noted Percent Fee 1994 1995 1996 1997 1998 1999 change, 1994-99 BANKS Yearly fee Percent charging 18.1 18.9 13.4 16.7 15.1 17.4 t Fee 9.92 13.07 7.94 11.51 13.12 7.90 -20.4** Fee for transactions "onus" Withdrawals Percent charging 11.5 9.6 6.8 7.4 6.4 6.4 Fee .55 .61 .59 .65 .68 .54 -1.8 Deposits Percent charging 4.6 4.2 2.1 3.3 5.2 2.3 +** Fee .43 .71 Fee for transactions "on others" Withdrawals I** Percent charging 78.4 85.3 79.8 67.0 74.5 72.3 Fee .95 1.03 1.10 1.06 1.10 1.17 23.2** Deposits Percent charging 52.7 70.0 64.7 56.8 70.7 49.1 t Fee .91 1.03 1.08 1.03 1.10 1.26 38.5** Surcharge1 Percent charging n.a. n.a. 44.8 60.1 77.9 82.9 +** Fee n.a. n.a. 1.19 1.14 1.20 1.26 5.9** SAVINGS ASSOCIATIONS Yearly fee Percent charging 17.7 11.7 10.1 13.7 16.6 7.9 r* Fee 11.85 11.71 12.86 11.37 14.56 8.10 -31.6 Fee for transactions "on us" Withdrawals Percent charging 9.1 8.8 11.3 6.2 3.9 2.1 Fee .79 .65 .86 .85 Deposits Percent charging 7.8 3.0 77..22 4.6 1.4 .3 F** Fee .79 .85 Fee for transactions "on others" Withdrawals Percent charging 73.8 83.1 79.2 67.6 77.6 70.3 t Fee .91 .97 .98 .98 1.05 1.11 22.0** Deposits Percent charging 54.8 62.7 66.5 63.7 66.7 50.8 t Fee .84 .92 1.00 .99 1.07 1.05 25.0** Surcharge1 Percent charging n.a. n.a. 31.7 39.7 56.8 70.2 Fee n.a. n.a. 1.00 1.04 1.15 1.18 18.0** NOTE. For transactions "on us," the machine used is that of the customer's * Significant at the 90 percent confidence level. institution. See also notes to table 1. ** Significant at the 95 percent confidence level. 1. Fee levied by ATM owners on users who do not maintain an account with . . . Data are insufficient to report or are not app\icab\e across surveys, the depository institution operating the ATM. Surveys of this charge began in n.a. Not available. 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

8 Federal Reserve Bulletin • January 2001 "On Others" Fees 1996 survey, banks were designated as multistate if they were part of banking organizations that conduct Fees for transactions "on others" are quite common. banking operations in more than one state; all other By 1999, about 70 percent of banks and savings banks were designated as single-state.6 In each of the associations charged for withdrawals in which the surveys from 1996 onward, fees charged by multiinstitution's customer used another institution's state banks tended to be significantly higher than ATM, while about 50 percent of banks and savings those charged by single-state banks, even after conassociations charged for deposits made through trolling for some factors (institution size and general another institution's ATM. Nonetheless, the propor- location) that may account for some of the observed tion of banks charging their customers for withdraw- difference. als "on others" declined a statistically significant A more detailed look at these comparisons is amount between 1994 and 1999. reported here for seven of the most common services The most dramatic change observed between 1994 or actions for the most recent year of data (1999): and 1999 for "on others" transactions, however, was noninterest checking accounts and NOW accounts in the average fee charged for such transactions. At (the "single balance and fee" versions), stopbanks, the "on others" fee rose 23 percent for with- payment orders, NSF checks, deposit items returned, drawals and almost 40 percent for deposits. At sav- ATM withdrawals "on others," and ATM surcharges. ings associations, the average "on others" fee A statistically significant difference exists between increased 22 percent for withdrawals and 25 percent single-state and multistate banks for six of the seven for deposits. All of these increases are statistically fees associated with these services or actions; for all significant and substantially exceeded the increase in six significant differences, the readings are higher at the CPI during the period. multistate banks (table 5). In addition, multistate banks were significantly more likely to charge for deposit items returned (the one item for which the fee Surcharges itself did not differ significantly between single-state Even more dramatic has been the increase in the 6. The 1994 and 1995 surveys used a slightly different definition of incidence of surcharging since 1996, the first year multistate activity. that data were collected on this fee. The proportion of banks charging noncustomers a surcharge for use of 5. Fees for selected services and special actions at singletheir ATMs increased from 45 percent in 1996 to state and multistate banking organizations, 1999 83 percent in 1999, while the proportion of savings Dollars except as noted associations charging the fee increased from 32 percent to 70 percent. Each of these increases is statistically significant. Estimates of the average surcharge levied by those institutions that imposed the fee also increased significantly at both banks and savings associations. The estimated average charge at banks increased 6 percent over the 1996-99 period, to $1.26 per transaction, while the charge at savings associations increased 18 percent, to $1.18. The increase at savings associations substantially exceeded the 5 percent increase in the CPI between the dates of the 1996 and 1999 surveys. COMPARISONS BETWEEN SINGLE-STATE AND MULTISTATE BANKING ORGANIZATIONS Under the terms of of the 1994 Riegle-Neal legisla- NOTE. Multistate banks are part of organizations that conduct banking operation, the Board's annual reports have included sepations in more than one state; all other banks are designated as single-state. See rate analyses of the fees charged by banks engaged also notes to tables 1, 3, and 4. * Significant at the 90 percent confidence level. in multistate banking activities. Beginning with the ** Significant at the 95 percent confidence level. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Fees, of Depository Institutions, 1994-99 9 6. Amount by which fees for selected services and special due to differences in location rather than to any actions at multistate banks are higher (lower, -) than those inherent difference between types of institution. at single-state banks after controlling for size and location Therefore, the possibility exists that, after statistically of institution, 1999 controlling for the influence of these factors on fees, Dollars the observed differences between the fees of single- Item Difference state and multistate banks would decline substantially or even disappear. Single balance and fee account Monthly low-balance fee Through a statistical procedure (multivariate re- Noninterest checking .80** 11..1133**** gression analysis), the fees of single-state and multistate banks were compared after accounting for two Special actions " ' t >. , " Stop-payment orders 3.53** of these possible underlying conditions—the general NSF checks 2.99** Deposit items returned -.97 location of the bank (as indicated by the state or consolidated metropolitan statistical area in which I ATM services jgpjf' •• •• '" ATM withdrawals "on others" .04 jt the bank was located) and the size category of the :: ..1144**** bank. In the comparison, the fees of multistate banks NOTE. See note to table 5. Weighted ordinary-least-squares regression. were still higher than those of single-state banks but, * Significant at the 90 percent confidence level. ** Significant at the 95 percent confidence level. indeed, by smaller amounts (table 6). That is, controlling for the size and general location of institutions reduced the importance of bank type in accounting and multistate banks). Further, the minimum balance for differences in fees. Nonetheless, in most cases to avoid a fee for NOW accounts at multistate banks statistically significant differences remained.7 was significantly higher than at single-state banks. The reasons for the remaining difference in fees The observed differences in the fees charged by between multistate banks and single-state banks may multistate and single-state banks may be due to con- be speculated upon but are difficult to determine. One ditions that simply accompany (correlate with) the possibility is that multistate banking organizations distinction between single-state and multistate banking operations. For example, if one type of bank tends to be located in areas that entail higher oper- 7. The possibility exists, of course, that locational and size differences fully account for the fee differences between multistate and ating costs, then the observed difference in fees single-state banks and that the data employed are not sufficiently between multistate and single-state banks might be detailed to reveal that result. 7. Fees for selected services and special actions, by asset-size class of bank, 1999 Dollars except as noted Small Medium Large Difference Item (1) (2) (3) (3-1) Single balance and fee account Noninterest checking Monthly low-balance fee 5.62 6.83 8.20 2.58** Minimum balance to avoid fee 439.81 638.01 664.21 224.40** NOW account Monthly low-balance fee 8.04 8.97 10.85 2.81** Minimum balance to avoid fee 974.39 1,241.82 1,412.13 437.74** Special actions Stop-payment orders Percent charging 99.9 100.0 100.0 .1 Average foe . 13.92 17.71 21.50 7.58** NSF checks . -.<\ - Percent charging 99.9 100.0 100.0 .1 Average fee 16.48 19.85 23.51 7.03** Deposit items returned Percent charging 51.3 67.0 86.2 34.9 ** Average fee 6.05 6.43 7.72 1.67* ATM services Withdrawals on others Percent charging 67.7 79.2 88.2 20.5 ** Average fee 1.09 1.28 1.32 .23** Surcharge Percent charging 77.4 92.4 87.8 10.4 ** Average fee ..i....... 1.22 1.30 1.42 .20** NOTE. Small banks are those with assets of less than $100 million; large * Significant at the 90 percent confidence level, banks are those with assets of more than $1 billion. See also notes to tables 1,3, ** Significant at the 95 percent confidence level, and 4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10 Federal Reserve Bulletin • January 2001 tend to depend less on retail customers for funds than minimum balance to avoid a fee at large banks was do single-state banks because they may obtain funds significantly higher than at small banks. And in the from other sources more cheaply; therefore, multi- case of special actions and ATM services, the proporstate banks may be relatively less inclined to hold tions of institutions charging a fee were also signifidown fees incurred by the retail customer. Another cantly higher at large than at small banks (except in possibility concerns the services provided by multi- the case of stop-payment orders and NSF checks, for state organizations; perhaps they are of better quality which virtually all banks charge). or more varied than those provided by single-state Regression analysis controlled for the general locabanks and would thus warrant the higher cost to the tion of the bank (as indicated by the state or consolicustomer. dated metropolitan statistical area in which the bank was located) and for organizational structure (singlestate or multistate). The fee differences between large COMPARISONS BETWEEN LARGE and small banks were then found to have declined, AND SMALL BANKS but in most cases they remained substantial and statistically significant (table 8).8 The 1994 Riegle-Neal legislation also required that the Board report its data on fees and services by size class of institution. Beginning with the 1995 SUMMARY report, results for banks and savings associations were reported for three asset-size classes. The reports Under legislative mandate, the Federal Reserve Board showed changes from year to year by size class of has for many years sponsored annual surveys of the institution, but they did not compare directly the level retail fees charged by depository institutions. Analyof fees and extent of availability across size classes in sis of the data for the most recent six years (1994-99) each year. Such a comparison has been made for this shows that for the most common types of depository article (table 7), using the 1999 bank data for the accounts surveyed, few of the fees and minimum seven services and actions employed in the compari- balances changed significantly. However, the fees son of multistate and single-state banks. The results associated with three special actions—stop-payment are reported for large banks (assets of more than orders, NSF checks, and overdrafts—rose signifi- $1 billion), medium-sized banks ($100 million to cantly and by more than the rate of consumer price $1 billion), and small banks (less than $100 million). inflation over the period. For all seven fees, the 1999 average level rose with The levels of the most common types of ATM fees the asset size of the bank, and the levels at large increased by statistically significant amounts that subbanks were significantly higher than at small banks. stantially exceeded the rate of inflation. In addition, In the case of checking and NOW accounts, the the proportion of depository institutions imposing a surcharge for use of their ATMs by nondepositors increased dramatically in the period for which that Amount by which fees for selected services and special feature was tracked (1996-99). actions at large banks are higher than those at small banks Finally, this article used the 1999 fees charged for after controlling for organizational structure and location seven common services and special actions to comof institution, 1999 pare multistate banks with single-state banks and to Dollars compare small banks with large banks. For six of the Item Difference seven items, banks that were part of multistate banking organizations charged, on average, significantly Single balance and fee account Monthly low-balance fee higher fees than single-state banks. For all of the Noninterest checking 1.71** items, large banks (assets of more than $1 billion) NOW account 1.83** charged significantly more than small banks (assets Special actions Stop-payment orders .. 4.89** of less than $100 million). NSF checks 3.66** Deposit items returned 1.89 8. As in the case of the fee differences between single-state and ATM services ATM withdrawals "on others" .16* multistate banking organizations, the fee differences between large Surcharge .08 and small banks could be due to additional factors—such as differences in the quality and variety of services offered—but, again, such NOTE. Organizational structure refers to the distinction between multistate reasoning is speculative. And again the possibility also exists that if and single-state banks. See also note to table 7. Differences obtained with same weighted ordinary-least-squares regression employed for results in table 6. the data were more detailed, the multivariate analysis would show that * Significant at the 90 percent confidence level. the factors being held constant (in this case location and organiza- ** Significant at the 95 percent confidence level. tional structure) fully account for the fee differences. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Retail Fees, of Depository Institutions, 1994-99 11 Although they narrowed, the differences remained the Board of Governors of the Federal Reserve Sysstatistically significant after analyses that controlled tem. Approximately 1,050 depository institutions for the general location of the institutions, for size (in were surveyed each year, with the institutions in the the case of the multistate versus single-state compari- surveyed samples varying from one year to the next. son), and for multistate banking operations (in the The statistical design of the survey consists of a case of the large versus small comparison). stratified systematic sample, treated as a stratified random sample, with seven geographic regions and five size classifications serving as the strata. Because APPENDIX: DESIGN OF THE SURVEYS selection probabilities differ by region and size class, the inverses of the selection probabilities were The data employed in this article were obtained employed as weights. These weights were then used through telephone interviews conducted by Moebs to obtain the population estimates reported here. • Services, of Lake Bluff, Illinois, under contract with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

12 Industrial Production and Capacity Utilization for November 2000 Released for publication December 15 The rate of capacity utilization for total industry fell to 81.6 percent in November, a level Vi percentage Industrial production fell 0.2 percent in November. point below its 1967-99 average. Manufacturing output dropped 0.5 percent, with declines in many industries. Output at utilities surged 3.6 percent in response to unseasonably cool weather, MARKET GROUPS and production in mining edged up 0.1 percent. At 148.6 percent of its 1992 average, industrial produc- The output of consumer goods ticked up 0.1 percent tion was 4.7 percent higher than in November 1999. in November after having fallen 0.9 percent in Octo- Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity — Industrial production 150 Capacity utilization - - 140 — Manufacturing 130 85 - y^r Total industry 120 f wb"\Total industry 0 - 110 f f f Manufacturing — 80 100 1 1 1 1 1 1 1 1 1 I i i i i i i 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 hv^r V 135 - 135 — X V^ ' — 125 175 Construction supplies —• — f 115 115 - 105 105 ^^XA^pT*^' Business supplies ""/7v Nondurable 95 95 I V 1 1 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 J I I I I I I I I I L 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, November. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

13 Industrial production and capacity utilization, November 2000 Industrial production, index, 1992= 100 Percent change Category 2000 20001 Nov. 1999 to Aug.' Sept/ Oct/ NOV.P Aug/ Sept/ Oct/ NOV.P NOV. 2000 Total 148.6 149.1 148.9 148.6 .7 .3 -.1 -.2 4.7 Previous estimate 148.6 149.0 148.8 .7 .2 -.1 Major market groups Products, total2 136.6 136.9 136.4 136.4 .6 .2 -.3 -.1 3.5 Consumer goods ... 123.8 124.1 123.0 123.2 .7 .3 -.9 .1 1.4 Business equipment 197.8 198.9 199.2 199.1 1.4 .6 .1 .0 10.7 Construction supplies 142.7 143.2 143.0 141.6 -.8 .4 -.2 -1.0 .8 Materials 170.5 171.5 171.7 170.8 .9 .6 .1 -.5 6.8 Major industry groups Manufacturing 154.6 155.2 155.1 154.4 .6 .4 .0 -.5 4.6 Durable 196.9 198.3 197.7 196.9 1.1 .7 -.3 -.4 8.8 Nondurable 116.3 116.2 116.6 115.9 .0 -.1 .3 -.6 -.3 Mining 101.0 100.3 100.2 100.3 .6 -.8 .0 .1 .9 Utilities 122.1 123.4 120.9 125.3 2.5 1.0 -2.0 3.6 10.4 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrrccceeennnttt 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, NNNooovvv... 111999999999 11996677--9999 11998822 11998888--8899 tttooo Nov. Aug/ Sept/ Oct/ NOV.P NNNooovvv... 222000000000 Total 82.0 71.1 85.4 81.5 82.6 82.5 82.1 81.6 4.6 Previous estimate 82.5 82.4 82.0 Manufacturing 81.1 69.0 85.7 80.9 81.7 81.7 81.4 80.6 5.0 Advanced processing 80.5 70.4 84.2 79.7 81.7 81.6 81.2 80.6 6.6 Primary processing . 82.5 66.2 88.9 84.8 82.9 83.0 82.9 81.8 1.6 Mining 87.4 80.3 88.0 85.1 86.9 86.3 86.3 86.5 -.8 Utilities 87.5 75.9 92.6 87.2 91.5 92.2 90.2 93.2 3.3 NOTE. Data seasonally adjusted or calculated from seasonally adjusted 2. Contains components in addition to those shown, monthly data. r Revised, 1. Change from preceding month. p Preliminary. ber. The production of durable consumer goods gain was led by increases in commercial aircraft and decreased for a second month and was again pulled medium and heavy trucks. Production in the other down by a drop in the assembly rate of autos and business equipment group fell 3.1 percent. The outlight trucks. The output of other consumer durables, put of defense and space equipment grew 2.3 percent which dipped 0.3 percent in November, was held as two strikes that had held down output came to an down by a decline in carpeting and furniture. The end. production of nondurable consumer goods, which The production of construction supplies, which gained 0.4 percent, was buoyed by a strong gain has been softening in recent months, declined in energy products, especially utilities. Excluding another 1 percent in November. The output of energy, the output of nondurables fell 0.3 percent. materials fell !/2 percent, pulled down by declines Decreases in the production of paper products, food in durables and nondurables. Within durable mateand tobacco, and clothing outweighed a gain in the rials, consumer parts was hit by a substantial decline output of consumer chemicals. in original equipment parts for motor vehicles. The output of business equipment was flat after Although the output of semiconductors, printed having shown little change in October; in the three circuit boards, and other electronic components months preceding October, the gains averaged about increased 1.1 percent for a second month, the 1 percent. The output of computer and office equip- move was a sharp step-down from the 5.8 percent ment grew 2.0 percent in November, a pace below average monthly rate in the first three quarters that of the preceding six months. The 0.9 percent of the year. The drop of 0.9 percent in the output drop in the production of industrial equipment more of nondurable goods materials offset the gain in than erased October's gain. In contrast, the produc- October and reflected losses in many of the sector's tion of transit equipment climbed 0.6 percent; the constituent categories. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

14 Federal Reserve Bulletin • January 2001 INDUSTRY GROUPS Census: the 1997 Census of Manufactures, the 1998 Annual Survey of Manufactures, and selected edi- Manufacturing output dropped 0.5 percent in Novem- tions of its 1998 and 1999 Current Industrial Reports. ber, with decreases spread about evenly across both Annual data from the U.S. Geological Survey regarddurable and nondurable goods industries. Among ing metallic and nonmetallic minerals (except fuels) durable goods, the losses were widespread, with the for 1998 and 1999 also were introduced. The updatlargest declines in primary metals, lumber and prod- ing included revisions to the monthly indicator for ucts, and stone, clay, and glass industries. After being each industry (either physical product data, nearly flat for the year, the output of nondurables fell production-worker hours, or electric power usage) 0.6 percent; production is now 0.3 percent below its and revised seasonal factors. November 1999 level. The revision to capacity and capacity utilization The factory operating rate declined to 80.6 percent, incorporated preliminary data from the 1999 Survey and easing occurred within many industries. The of Plant Capacity of the Bureau of the Census, which operating rate at electric utilities rose to 95.7 percent, covers manufacturing, along with other new data on 6.1 percentage points above its 1967-99 average; capacity from the U.S. Geological Survey, the Departcapacity utilization at gas utilities also increased, to ment of Energy, and other organizations. The statis- 84.3 percent, a level 2.3 percentage points above its tics on the industrial use of electric power incorpolong-term average. The operating rate for mining was rated additional information received from utilities 86.5 percent, a reading little changed since June. for the past few years as well as data from the 1997 Census of Manufactures and 1998 Annual Survey of Manufactures. REVISION OF INDUSTRIAL PRODUCTION AND Aggregate IP indexes are built as annually CAPACITY UTILIZATION weighted chain-type indexes, beginning with data for 1977. Previously, the weights changed at the mid- On December 5, the Federal Reserve Board pub- dle of every year; with the revision, the weights lished revisions to the index of industrial production change every month beginning with data for 1992. (IP), to the related measures of capacity and capacity The revision is available on the Board's web site utilization, and to the index of industrial use of elec- (www.federalreserve.gov/releases/gl7). The revised tric power. The updated measures reflect both the data are also available through the web site of the incorporation of newly available, more comprehen- Department of Commerce. Further information on sive source data typical of annual revisions and, for these revisions is available from the Board's Indussome series, the introduction of improved compila- trial Output Section (telephone 202-452-3197). tion methods. The revision also included a refinement The G.17 statistical release will be redesigned in of the method used to aggregate the individual series January 2001. Special aggregates will be added; some in the production and capacity indexes. The new detailed industry data will no longer be listed in the source data are for recent years, primarily 1997 regular release but will be available on the Federal through 1999, and the modified methods affected Reserve Board's public web site, along with a temdata from 1992 onward. plate of the redesigned tables. • The updating of source data for IP included annual data from the following reports of the Bureau of the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

15 Announcements FEDERAL OPEN MARKET COMMITTEE APPROVAL OF 2001 FEE SCHEDULES FOR DIRECTIVE FEDERAL RESERVE BANK PAYMENT SERVICES The Federal Open Market Committee at its meeting The Federal Reserve Board approved on Novemon November 15, 2000, decided to maintain the exist- ber 8, 2000, fee schedules for Federal Reserve Bank ing stance of monetary policy, keeping its target for payment services, effective January 2, 2001. the federal funds rate at 6V2 percent. Overall, the 2001 price level for Federal Reserve The utilization of the pool of available workers payment services is projected to increase 4.2 percent remains at an unusually high level, and the increase from the 2000 level. Because of price reductions in in energy prices, though having limited effect on core recent years, the overall price level has risen only measures of prices to date, still harbors the possibil- half a percent since 1996. ity of raising inflation expectations. The Committee, For electronic payment services, the efficiencies accordingly, continues to see a risk of heightened that have been gained from consolidating the Federal inflation pressures. However, softening in business Reserve's automated processing facilities will allow and household demand and tightening conditions in the Reserve Banks to maintain their current basic financial markets over recent months suggest that the transaction fees for Fedwire funds, book-entry securieconomy could expand for a time at a pace below the ties, and automated clearinghouse in 2001. productivity-enhanced rate of growth of its potential Reflecting, in part, investments in check automato produce. tion and electronic check technologies, check service Nonetheless, to date the easing of demand pres- fees will increase, on average, approximately 3 persures has not been sufficient to warrant a change cent compared with current prices. These investments in the Committee's judgment that against the back- should lead to greater operating efficiencies at the ground of its long-run goals of price stability and Reserve Banks and yield cost savings that ultimately sustainable economic growth and of the information can be passed along to customers. currently available, the risks continue to be weighted The 2001 priced services fee schedules are availmainly toward conditions that may generate height- able at the Federal Reserve's Financial Services web ened inflation pressures in the foreseeable future. site: www.frbservices.org. The Board also approved on November 8, 2000, the 2001 private-sector adjustment factor (PSAF) for STATEMENT ON THE DEATH OF Reserve Bank priced services of $206.9 million, an HENRY B. GONZALEZ, FORMER CHAIRMAN increase of $14.2 million, or 7.4 percent, from the OF THE U.S. BANKING COMMITTEE 2000 PSAF of $192.6 million. The PSAF is an allowance for taxes and other Federal Reserve Board Chairman Alan Greenspan imputed expenses that would have been paid and issued on November 29, 2000, the following return on capital that would have been provided had statement: the Federal Reserve's priced services been provided I was saddened to hear of the passing yesterday of by a private business. The Monetary Control Act of former House Banking Committee Chairman Henry B. 1980 requires the Federal Reserve to recover the Gonzalez. While we had many debates over policy, he was costs of providing priced payment services, including always civil, always a gentleman. In pursuing his convicthe PSAF, over the long run to promote competition tions, he never deviated from the deep-seated integrity and between the Reserve Banks and private-sector serdecency at the core of his character. I extend my condolences to his family and many friends. vice providers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

16 Federal Reserve Bulletin • January 2001 The Reserve Banks project that they will recover 2000, must report their deposit levels weekly. Those 98.0 percent of their priced services costs, including with total deposits of less than $101 million must operating costs and the imputed costs and target report their deposit levels quarterly. return on equity (ROE), in 2001. The Reserve Banks Depository institutions with total reservable liabiliexpect to earn $978.5 million in revenue while incur- ties equal to or less than the exemption level of ring operating and imputed costs of $889.4 million, $5.5 million are not subject to detailed deposit reportfor a net income of $89.1 million, compared with a ing and are called exempt depository institutions. target ROE of $109.3 million. The Reserve Banks Exempt depository institutions with total deposits of estimate that they will recover 100.4 percent of their $5.5 million or more file a less detailed deposit report costs in 2000. During the 1990-99 period, the once each year. Exempt depository institutions with Reserve Banks recovered 99.7 percent of the costs of total deposits of less than $5.5 million are not priced services, including targeted ROE. required to file deposit reports. In July 2000, the Board discontinued the quarterly report previously used by some exempt institutions (form FR 2910q). ANNUAL ADJUSTMENT FOR RESERVE U.S. branches and agencies of foreign banks and CALCULATIONS AND DEPOSIT REPORTING Edge and agreement corporations must file deposit reports weekly, regardless of size. The Federal Reserve Board announced on Novem- For depository institutions that report weekly, the ber 16, 2000, the annual adjustments in the amount low reserve tranche adjustment and the reservable of net transaction accounts used in the calculation liabilities exemption adjustment will apply to the of reserve requirements and the cutoff levels used reserve computation period that begins November 28, to determine the detail and frequency of deposit 2000, and the corresponding reserve maintenance reporting. period that begins December 28, 2000. All depository institutions must retain a percent- For institutions that report quarterly, the low age of certain types of deposits in the form of vault reserve tranche adjustment and the reservable liabilicash, or as a deposit in a Federal Reserve Bank, or a ties exemption adjustment will apply to the reserve pass-through account at a correspondent institution. computation period that begins December 19, 2000, Reserve requirements currently are assessed on the and the corresponding reserve maintenance period depository institution's net transaction accounts that begins January 18, 2001. (mostly checking accounts). For net transaction accounts in 2001, the first $5.5 million, up from $5 million in 2000, will be REGULATION Z: ADJUSTMENT TO THE DOLLAR exempt from reserve requirements. A 3 percent AMOUNT THAT TRIGGERS ADDITIONAL reserve ratio will be assessed on net transaction DISCLOSURE REQUIREMENTS accounts over $5.5 million to and including $42.8 million, down from $44.3 million in 2000. A The Federal Reserve Board published on Novem- 10 percent reserve ratio will be applied to net trans- ber 21, 2000, its annual adjustment of the dollar action accounts above $42.8 million. amount that triggers additional disclosure require- These annual adjustments, known as the low ments under the Truth in Lending Act (Regulation Z) reserve tranche adjustment and the reservable liabili- for mortgage loans that bear rates or fees above a ties exemption adjustment, are based on growth in certain amount. net transaction accounts and total reservable liabili- Under the revision to the Board's staff commenties respectively at all depository institutions between tary to Regulation Z, the dollar amount of the fee- June 30, 1999, and June 30, 2000. based trigger has been adjusted from $451 for 2000 Additionally, the Board increased the deposit cutoff to $465 for 2001 based on the annual percentage level that is used with the exemption level to deter- change reported in the Consumer Price Index as of mine the frequency and detail of deposit reporting. June 1, 2000. The adjustment is effective January 1, Effective September 2001, depository institutions 2001. with total reservable liabilities greater than the The Home Ownership and Equity Protection Act exemption level ($5.5 million) are subject to detailed of 1994 bars credit terms such as balloon payments deposit reporting and are called nonexempt institu- and requires additional disclosures when total points tions. Those nonexempt institutions with total depos- and fees payable by the consumer exceed $400 (to its greater than or equal to $101 million, up from the be adjusted annually) or 8 percent of the total loan $95 million cutoff that became effective September amount, whichever is larger. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 17 REGULATION C: REQUEST FOR COMMENT ON • Require lenders to report home equity lines of PROPOSED REVISIONS credit (such reporting is now optional) • Require lenders to report certain applications for The Federal Reserve Board on November 29, 2000, credit received through preapproval programs requested comment on proposed revisions to its • Require lenders to report the annual percentage Regulation C, which implements the Home Mortgage rate of the loan, whether the loan is subject to Disclosure Act (HMDA). Comments are due by HOEPA, and whether the loan involves a manufac- March 9, 2001. tured home. HMDA requires depository and certain for-profit nondepository institutions to collect, report, and dis- The Board also proposed a number of clarifications close data about applications for, and originations and technical changes, in addition to reorganizing and purchases of, home mortgage and home- Regulation C to make it easier to use. improvement loans. Data reported include the type, purpose, and amount of the loan; the race or national origin, gender, and income of the loan applicant; and the location of the property. The purposes of HMDA INTERACTIVE WEB SITE FOR CONSUMER include helping determine whether financial institu- REGULATION ISSUES IN INTERNET BANKING tions are serving the housing needs of their communi- The Federal Reserve Board announced on Novemties and assisting in fair lending enforcement. ber 21, 2000, a new Internet resource designed to The Board's proposal incorporates suggestions help bankers and bank examiners apply consumer received in response to the Advance Notice of regulations to Internet banking. The Checkers Bank Proposed Rulemaking published in 1998, as well as (TCB) is a mock on-line bank whose web site consuggestions from discussions with a wide range of tains violations of federal consumer protection reguinterested parties, including industry and consumer lations. The TCB site highlights these violations for representatives and officials of financial regulatory further investigation. and fair lending enforcement agencies. Other sugges- The TCB site provides web pages that address such tions were presented at hearings held in Charlotte, financial vehicles as loans and credit cards, consumer Boston, Chicago, and San Francisco last summer on deposits, investments, and commercial services. possible changes in the enforcement of the Home Each web page provides a link to a sidebar of Ownership and Equity Protection Act (HOEPA). supporting information that the user can reach by In evaluating potential changes to the HMDA clicking on the Federal Reserve System seal at the reporting requirements, the Board considered whether bottom of the page. The sidebar provides educational the changes would improve the quality and utility features designed to help users spot violations and to of the resulting data. The Board took into account learn more about the applicable regulation. Each sidechanges in the home mortgage market, including bar offers the following features: growth in areas such as home equity lines of credit and subprime lending. The objective of the proposed changes is to enhance the public's and agencies' • Need a hint: Gives hints about what may be understanding of the home mortgage market gener- wrong with the page without completely ruining the ally, and the subprime market in particular, as well as challenge to further fair lending analysis. At the same time, the • Findings and Follow-up: Marks actual violations Board has attempted to minimize the increase in the or problem areas that require further investigation data collection and reporting burden by limiting pro- • Review Regs: Provides a link to the Federal posed changes to those likely to have significant Reserve Board's regulations directory benefit. • Suggest Changes: Allows users to electronically The proposed changes to Regulation C include the send feedback to the Federal Reserve. following: Though not all pages show violations, for those • Expand coverage of nondepository lenders by that do, the issues are described in detail. The Findadding a dollar-volume threshold of $50 million to ings page offers users the option to print for further the current loan-percentage test examination. • Simplify the definitions of "refinancing" and Users of the site may peruse it at their own "home-improvement loan" to generate more consis- pace. The Checkers Bank can be accessed at tent and accurate data w w w. federalreserve. go v/tcb. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

18 Federal Reserve Bulletin • January 2001 PUBLICATION OF THE NOVEMBER 2000 UPDATE • A current assessment of value to be made no later than 180 days past the contractual due date for loans secured TO THE COMMERCIAL BANK EXAMINATION by real estate (any loan balance exceeding the property's MANUAL value, less selling costs, is to be classified as a loss and charged off) The November 2000 update to the Commercial Bank • A clarification that collateralized loans due to be Examination Manual, Supplement No. 13, has been charged off under the policy can be written down to the collateral's value, less cost to sell, instead of being entirely published and is now available. The Manual comcharged off prises the Federal Reserve System's state member • A clarification that payments received after the applibank supervisory and examination guidance. The new cable charge-off threshold, but before the end of the supplement includes the following: month in which the charge-off threshold is triggered, may be considered when determining if a charge-off remains appropriate. 1. The September 1999 FFIEC Interagency Policy Statement on the External Audits of Banks with Less Than $500 Million in Total Assets. Small institutions that are The terms of the revised policy apply to federally not subject to other audit requirements are encouraged insured depository institutions. Examiners are advised to to adopt an external-auditing program. A full-scope annual review their methodology for aging retail loans. The conaudit by an independent public accountant is preferable. tractual method of loan aging is more accurate and is Small banks are also encouraged to establish an audit required for reporting on the bank call reports. See committee consisting of outside directors. See Supervisory SR 00-8. Letter 99-33. Supervisory (SR) letters are the Federal Reserve's primary means of communicating key policy 5. December 1999 Joint Interagency Supervisory Guiddirectives to its examiners, supervisory staff, and the bank- ance on Securitization Activities. The asset securitization ing industry. SR letters can be viewed on the Board's web section is amended to further underscore the importance of site: www.federalreserve.gov/boarddocs/srletters. sound risk-management practices in all aspects of asset 2. The Federal Reserve System Bank Watch List Pro- securitization. Guidance is provided on the risk managegram. The surveillance section includes procedures dis- ment and valuation of retained interests arising from secucussing the assignment of state member banks to a watch ritization activities. Retained interests, including interestlist. The watch list and its accompanying screen moni- only STRIPs receivable, arise when a selling institution toring program identify state member banks that warrant keeps an interest in assets sold to a securitization vehicle additional olf-site surveillance, either because of their that, in turn, issues bonds to investors. Supervisory confinancial condition or because of recent examination find- cerns exist about the methods and models banking organiings. See SR 00-7. zations use to value retained interests and the difficulties in 3. A Reinforcement of the Lending Standards for Com- managing exposure to these volatile assets. The fair value mercial Loans to Address Supervisory Concerns about the of the retained interests should be documented and deter- Weakening of Internal Controls. New supervisory guidance mined in accordance with generally accepted accounting focuses on the risks of overly aggressive lending practices principles. The valuation should be based on reasonable, due to an overreliance on favorable economic conditions. conservative assumptions about such factors as discount Supervisors and examiners are instructed to be alert to rates, projected credit losses, and prepayment rates. See indications of an institution's insufficiently rigorous risk SR 99-37. assessment, such as (1) an excessive reliance on strong 6. Revised Information Technology Examination and economic conditions and robust financial markets (for Supervisory Guidance. This expanded guidance gives example, borrowers whose financial capacity is inadequate greater emphasis to the role of information technology (IT) to service their debts without access to capital markets on and its effect on an organization's safety and soundness. favorable terms); (2) an inadequate consideration of stress Instead of separate IT examinations, all examinations testing; or (3) a weakening of key internal controls in the should include an assessment and evaluation of IT risks lending process. Examiners are to be attentive to an institu- and risk management. Examiners must consider IT when tion's monitoring of its own credit practices, making cer- developing risk assessments and supervisory plans, and tain that the institution's practices do not lead to a delay in in determining the level of review needed, given the recognizing emerging loan weaknesses. See SR 99-23. characteristics, size, and business activities of the orga- 4. The June 2000 FFIEC Uniform Retail-Credit Classi- nization. See SR 00-3 and SR 98-9. The revised FFIEC fication and Account-Management Policy (supersedes Uniform Rating System for Information Technology the February 1999 policy). The revised policy includes the (URSIT) (effective April 1, 1999) is also included. See following: SR 99-8. • Stressing the need for institutions to adopt and adhere The examiner's assessment of IT activities may be incorto prudential internal standards on the number and fre- porated directly into the safety-and-soundness rating. The quency of extensions, deferrals, rewrites, and renewals of scope of an examination should include an evaluation of closed-end loans the adequacy of the institution's oversight of service pro- • Limited re-aging of open-end accounts that participate viders for critical processing activities, the results of in a debt-counseling/workout program, following receipt any relevant supervisory reviews of such service providers, of at least three consecutive minimum monthly payments, and any significant in-house activities. See SR 00-3 and or an equivalent cumulative amount SR 00-4. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 19 A more detailed summary of changes is included ment by and among Caisse Nationale de Credit with the update package. The Manual and updates, Agricole, Paris, France; Credit Agricole Indosuez, including pricing information, are available from Paris, France; Credit Agricole Indosuez, New York Publications Services, Mail Stop 127, Board of Gov- branch, New York, New York; the Federal Reserve ernors of the Federal Reserve System, Washing- Bank of New York; and the New York State Banking ton, DC 20551 (or charge by facsimile: 202-728-5886). Department. The Manual is also available on the Board's web site: www.federalreserve.gov/boarddocs/supmanual/. The Federal Reserve Board announced on December 1, 2000, the issuance of a final decision and order of prohibition against Sammie R. Golden, former ENFORCEMENT ACTIONS AND TERMINATIONS employee, Union Planters Bank, Memphis, Tennes- OF PRIOR ENFORCEMENT ACTIONS see. The order, the result of an action brought by the Office of the Comptroller of the Currency, pro- The Federal Reserve Board on November 20, 2000, hibits Ms. Golden from participating in the conduct announced the execution of a written agreement of the affairs of any financial institution or holding by and among Guaranty Financial Corporation, Char- company. lottesville, Virginia; the Guaranty Bank, Charlottesville, Virginia; the Federal Reserve Bank of Rich- The Federal Reserve Board announced on Novemmond; and the Bureau of Financial Institutions of the ber 20, 2000, the termination of the following Commonwealth of Virginia. enforcement action: The Asahi Bank, Ltd., New York branch, cease and desist order dated February 13, The Federal Reserve Board announced on Novem- 1997, was terminated October 11, 2000. ber 20, 2000, the issuance of a cease and desist order against the United Central Bank, Garland, Texas. CHANGE IN BOARD STAFF The Federal Reserve Board announced on November 30, 2000, the execution of a written agreement The Board of Governors approved on December 8, by and among CSB Bancorp, Inc., Millersburg, Ohio; 2000, the promotion of Thomas Connors to associate The Commercial and Savings Bank of Millers- director in the Division of International Finance. burg, Millersburg, Ohio; the Federal Reserve Bank Mr. Connors will assume oversight responsibility for of Cleveland; and the Ohio Division of Financial the Administrative Office in the International Finance Institutions. Division, in addition to his current oversight responsibilities for the International Development and The Federal Reserve Board announced on Decem- World Payments and Economic Activity sections, ber 1, 2000, the execution of a written agree- and for the International Information Center. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

20 Minutes of the Meeting of the Federal Open Market Committee Held on October 3, 2000 A meeting of the Federal Open Market Committee Messrs. Oliner and Struckmeyer, Associate Directors, was held in the offices of the Board of Governors of Division of Research and Statistics, Board of Governors the Federal Reserve System in Washington, D.C., on Tuesday, October 3, 2000, at 9:00 a.m. Mr. Porter, Deputy Associate Director, Division of Monetary Affairs, Board of Governors Present: Mr. Whitesell, Assistant Director, Division Mr. Greenspan, Chairman of Monetary Affairs, Board of Governors Mr. McDonough, Vice Chairman Mr. Broaddus Mr. Ferguson Mr. Ramm, Section Chief, Division of Research and Statistics, Board of Governors Mr. Gramlich Mr. Guynn Mr. Jordan Messrs. Reeve and Sack, Economists, Divisions Mr. Kelley of International Finance and Monetary Affairs Mr. Meyer respectively, Board of Governors Mr. Parry Ms. Low, Open Market Secretariat Assistant, Division of Monetary Affairs, Board of Mr. Hoenig, Ms. Minehan, Messrs. Moskow Governors and Poole, Alternate Members of the Federal Open Market Committee Mr. Kumasaka, Assistant Economist, Division of Monetary Affairs, Board of Governors Messrs. McTeer, Stern, and Santomero, Presidents of the Federal Reserve Banks of Dallas, Messrs. Hakkio, Kos, Lacker, Ms. Mester, Minneapolis, and Philadelphia respectively Messrs. Rasche, Rolnick, and Rosenblum, Senior Vice Presidents, Federal Reserve Banks Mr. Kohn, Secretary and Economist of Kansas City, New York, Richmond, Mr. Gillum, Assistant Secretary Philadelphia, St. Louis, Minneapolis, and Dallas Ms. Fox, Assistant Secretary respectively Mr. Mattingly, General Counsel Mr. Baxter, Deputy General Counsel Messrs. Evans and Rosengren, Vice Presidents, Ms. Johnson, Economist Federal Reserve Banks of Chicago and Boston Mr. Stockton, Economist respectively Mr. Beebe, Ms. Cumming, Messrs. Eisenbeis, Mr. Tallman, Senior Economist, Federal Reserve Howard, Lindsey, Reinhart, Simpson, and Bank of Atlanta Sniderman, Associate Economists By unanimous vote, the minutes of the meeting Mr. Fisher, Manager, System Open Market Account of the Federal Open Market Committee held on August 22, 2000, were approved. Messrs. Madigan and Slifman, Associate Directors, The Manager of the System Open Market Account Divisions of Monetary Affairs and Research and reported on recent developments in foreign exchange Statistics respectively, Board of Governors markets and on System transactions in those markets during the period August 22, 2000, through Octo- Mr. Winn, Assistant to the Board, Office of Board ber 2, 2000. By unanimous vote, the Committee Members, Board of Governors ratified these transactions. Mr. Ettin, Deputy Director, Division of Research and In ratifying these transactions, members empha- Statistics, Board of Governors sized that the action was not intended to signal an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

21 increased willingness by the Committee to intervene second quarter. Real personal consumption expendiin foreign exchange markets. In the current instance, tures on durable goods surged in the July-August the intervention transactions were undertaken in a period, spending on nondurable goods picked up spirit of cooperation with the international financial somewhat less, and consumption of services decelercommunity and at the express request of the Euro- ated a little. The recent strengthening of consumer pean Central Bank (ECB). Members commented that spending occurred against the background of moderhistorical experience suggested that foreign exchange ate growth of real disposable income in recent quarmarket interventions generally had not had lasting ters but generally buoyant consumer sentiment. effects when not accompanied by supporting changes With interest rates on fixed-rate mortgages having in macroeconomic policies. fallen significantly since mid-May and consumers' The Manager also reported on developments in assessments of homebuying conditions having risen domestic financial markets and on System open mar- recently, single-family housing starts picked up someket transactions in government securities and federal what in August. However, such starts were still agency obligations during the period August 22, sharply below their levels of early in the year, likely 2000, through October 2, 2000. By unanimous vote, reflecting in part the recent smaller gains in income the Committee ratified these transactions. and employment and the flattening out of equity The Committee then turned to a discussion of the prices thus far this year. New home sales picked up in economic outlook and the implementation of mone- July (latest data), though that gain might have been tary policy over the intermeeting period ahead. overstated as a result of problems with estimation The information reviewed at this meeting sug- procedures, and existing home sales bounced back in gested that economic activity was expanding at a August, roughly offsetting a drop in July. Multifamily more moderate pace than in the first half of the year. starts, by contrast, declined further in August even The moderation reflected lower growth in most major though vacancy rates remained low and apartment expenditure sectors. As a result of the deceleration rents continued to rise. in aggregate demand, expansion of employment and The available information suggested that business industrial production had slowed. Rising energy investment in durable equipment and software prices had boosted overall price inflation consider- increased substantially further in the third quarter. ably, but core measures of consumer inflation had Data on shipments of nondefense capital goods in increased substantially less. July and August indicated that outlays for high-tech Total nonfarm payroll employment dropped further equipment, notably computing and communications in August, in part reflecting additional large declines equipment, remained quite strong. For other types of in the number of temporary Census workers. In the equipment, spending growth seemed to have moderprivate sector, a labor strike held down the August ated somewhat after the substantial gains of the first rise in payroll employment, but even after adjusting half of the year. Information on orders for nondefense for the effects of the strike, the pace of private job capital goods pointed to further slowing in the pace gains in the July-August period fell considerably of spending increases in coming months. Nonresidenfrom the rate for the first half of the year. The tial construction activity fell in July but market fundaslowdown was particularly pronounced in the con- mentals, including rising property values and lower struction, manufacturing, and services sectors. The vacancy rates, suggested the likelihood of further civilian unemployment rate edged up to 4.1 percent expansion in nonresidential investment, particularly in August. in office buildings. Total industrial production rose only slightly on Business inventory investment decreased sharply balance during July and August after having regis- in July after a large second-quarter advance. Much of tered strong gains earlier in the year. The growth in the slowdown was associated with a runoff of stocks production of high-tech equipment remained rapid, of motor vehicles at wholesalers and automotive dealthough not at the extraordinary rates posted earlier erships. Elsewhere, stockbuilding eased a little and in the year, and softer conditions had emerged in a sales decelerated somewhat. Inventory-sales ratios number of manufacturing industries, including steel, generally were within their ranges for the preceding trucks, motor vehicles, and construction supplies. twelve months, and there seemed to be only a few Because of the weakness in production, the rate of scattered indications of inventory imbalances at the capacity utilization in manufacturing edged down to industry level. a level slightly below its long-term average. The U.S. trade deficit in goods and services wid- Consumer spending picked up somewhat in July ened considerably in July from its June level, with and August from a moderate rate of increase in the the dollar value of exports retracing part of its Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

22 Federal Reserve Bulletin • January 2001 extraordinary June increase and the value of imports pects for interest rates were revised downward in rising further. The drop in exports was concentrated response to both the Committee's statement after the in aircraft and automotive products, while the advance August meeting, which was interpreted as expressin imports was largely in industrial supplies, automo- ing greater confidence that growth rates of aggregate tive products, and services. The available information demand and aggregate supply were coming into betindicated that economic expansion in the foreign ter alignment, and to subsequent data releases, which industrial countries had slowed somewhat in the third were seen as confirming earlier indications of some quarter from the robust growth during the first half slowing in the economic expansion. Against a backof the year, primarily reflecting reduced economic ground of some upward pressure on long-term Treaexpansion in Japan. Growth appeared to be some- sury yields and of growing concerns about corporate what uneven among the developing countries in the earnings, most broad indexes of stock market prices third quarter but remained solid on balance. declined somewhat over the intermeeting period. Recent information continued to indicate a slight In foreign exchange markets, the trade-weighted pickup in price inflation. Consumer prices edged up value of the dollar increased somewhat further on on balance over July and August, despite a net drop balance in terms of an index of major foreign currenin energy prices; excluding the food and energy com- cies. The dollar's net appreciation against the euro ponents, consumer price inflation remained moderate occurred despite a small policy tightening by the in both months. On a year-over-year basis, however, ECB on August 31 as sentiment toward that currency core consumer prices increased somewhat more in remained negative, in part because of concerns about the twelve months ended in August than in the previ- capital flows out of the euro area. The major indusous twelve-month period. Core producer prices edged trial countries undertook joint foreign exchange interup over the July-August period and decelerated a vention late in the period, on September 22, to stem little on a year-over-year basis. With regard to labor the euro's slide. The intervention was at the initiative costs, average hourly earnings of production or non- of the ECB and was joined by the United States and supervisory workers rose moderately in July and other nations because of shared concern about the August. The advance for the twelve months ended in potential implications of recent movements in the August was slightly larger than that for the previous euro. The dollar also posted gains against the currentwelve-month period. cies of a number of other important trading partners, At its meeting on August 22, 2000, the Committee notably the Brazilian real and the Mexican peso. adopted a directive that called for maintaining condi- The broad monetary aggregates had expanded relations in reserve markets consistent with an unchanged tively briskly in recent months. The growth of M2, federal funds rate of about 6V2 percent. In reaching perhaps reflecting the recent vigor of consumer their decision, the members noted that decelerating spending, picked up considerably in August and Sepdemand and surging productivity seemed to have tember after having increased slowly in June and narrowed the gap between the growth rates of aggre- July. Averaged across the past four months, however, gate demand and potential supply, even though previa M2 increased at a pace noticeably below that of ous policy tightening actions had not yet exerted their earlier in the year, with the slowdown partly reflectfull restraining effects. The members emphasized, ing a lagged response to a widening, during the first however, that unusually taut labor markets could half of the year, of the opportunity costs of holding result in greater upward pressures on unit costs and M2 assets. M3 expansion remained robust in August prices, especially if productivity growth were to level and September, though somewhat below the pace in out or edge lower in the future, and they agreed that the first half of the year. The growth of domestic the statement accompanying the announcement of nonflnancial debt slowed somewhat in July and their decision should continue to indicate that the August in association with some moderation in the risks remained weighted mainly in the direction of brisk pace of private borrowing that was offset in part rising inflation. by a less rapid paydown of federal debt. Open market operations throughout the intermeet- The staff forecast prepared for this meeting suging period were directed toward maintaining the fed- gested that the economic expansion, after slowing eral funds rate at the Committee's targeted level of considerably from its elevated pace of recent quar- 6V2 percent, and the average rate was close to the ters, would be sustained at a rate a little below the intended level. Most short- and intermediate-term staff's current estimate of the economy's potential interest rates moved lower over the interval, though output. The forecast anticipated that the expansion of long-term yields changed little or drifted slightly domestic final demand would be held back to some higher. Market expectations about the near-term pros- extent by the eventual disappearance of positive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 23 wealth effects associated with outsized earlier gains remain relatively elevated for a extended period, with in equity prices and by higher interest rates. As a negative effects on spending and inflation. There result, growth of spending on consumer durables was already were scattered signs that higher energy prices, expected to remain appreciably below that in recent by reducing income available for discretionary purquarters, and housing demand would trend slightly chases, might be damping retail sales. Moreover, to downward. By contrast, business fixed investment, the extent that relatively high oil prices persisted, notably outlays for equipment and software, was they were likely to have increasing pass-through projected to remain robust, and brisk growth abroad effects on core measures of inflation as well as on would boost the expansion of U.S. exports for some "headline" inflation, especially if the energy price period ahead. Core consumer price inflation was pro- increases began to affect inflation expectations. Howjected to rise a little over the forecast horizon, in part ever, the course of oil prices was very difficult to as a result of higher import prices but largely as a predict not only because of political and market consequence of further increases in nominal labor uncertainties but in part also because of the lack of compensation gains that would not be fully offset by information about the extent of what appeared to be a growth in productivity. precautionary buildup of fuel supplies by households In the Committee's discussion of current and pro- and retail businesses. spective economic developments, members referred In their review of the outlook for household spendto recent statistical and anecdotal information that ing, members cited a number of developments that tended to confirm earlier indications of appreciable pointed to slower but continuing growth. With some slowing in the pace of the expansion from the out- exceptions, anecdotal reports from various parts of sized increases experienced in the latter part of 1999 the country suggested a recent softening in retail and the first half of this year. Several commented that sales, and some industry contacts indicated that they growth of aggregate demand now appeared to be were marking down their forecasts of retail sales. A closer to, and perhaps slightly below, the rate of flat and volatile stock market and the rise in energy expansion in the nation's output potential. Looking costs appeared to be key factors currently tending to ahead, they generally anticipated that the softening in inhibit growth in consumer spending at least to some equity prices and the rise in interest rates that had extent. On the positive side, continuing gains in conoccurred earlier in the year would contribute to keep- sumer incomes and a high level of consumer confiing growth in demand at a more subdued but still dence could be expected to foster sustained growth in relatively robust pace. The members recognized that such spending, albeit probably at a pace below recent marked uncertainties surrounded any forecast in trends. present circumstances. Those uncertainties had been With regard to the outlook for residential construcaugmented by recent developments in world oil mar- tion, anecdotal reports indicated some softening in kets and continued to include questions about the housing activity in many parts of the country, though extent of further gains in productivity, the effects of some members cited regional evidence of a partial such gains on the growth of aggregate demand as rebound recently that was attributed to declines in well as supply, and the associated degree of prospec- mortgage interest rates. However, financial factors, tive pressures on resources and inflation. In the latter including mortgage interest rates at levels still appreregard, members anticipated that even assuming ciably above earlier lows and the sideways perreduced economic growth in line with their forecasts formance of the stock market, were expected to and further impressive gains in productivity, condi- constrain housing activity somewhat over coming tions in labor markets were likely to remain relatively quarters, though such activity likely would remain on tight, and risks persisted that at some point such a relatively high plateau. tightness could exert upward pressures on labor costs In their comments about the prospects for business and prices. fixed investment, members cited some indications Developments in world oil markets also might that the expansion in business spending for equipexert continued upward pressure on inflation, while ment and software might be moderating from the at the same time posing a downward risk to economic extraordinary pace of recent years, though growth activity. Uncertainties relating to political events in in such expenditures probably would remain robust. the Middle East, superimposed on limited available Retarding influences bearing on the outlook for inventories of oil products held by producers and investment expenditures included forecasts of slower refiners, had fostered recent "spikes" in oil prices. growth in final demand and less favorable financial While price quotations in futures markets pointed to a conditions, notably weakness in the equity prices decline in oil prices over time, such prices might well of numerous "new economy" firms and tightening Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

24 Federal Reserve Bulletin • January 2001 credit availability for business firms that did not developments since the August meeting, that growth enjoy investment-grade credit ratings or favorable in aggregate demand had moderated appreciably to a earnings prospects. Evidence of overbuilding in some pace that improved the prospects for containing presareas of commercial and other nonresidential real sures on resources. Moreover, the tightening that had estate also was mentioned. Against this background, occurred in financial conditions through the spring some members referred to a growing sense of caution and the rise in energy prices since the fall of 1998 among business- and financial-sector executives had not yet exerted their full effects on aggregate about undertaking or financing business investments. demand, and members expected these effects to con- At the same time, the incentive to take advantage of tribute to a more sustainable rate of growth in aggreincreasingly efficient high-tech equipment and soft- gate spending. Although inflation had picked up, a ware, typically available at declining prices, would decline in energy prices, should it materialize in line continue to provide an important underpinning for with market expectations, clearly would have favorfurther large gains in investment spending, with able implications for inflation expectations and cost favorable implications for continued rapid growth in pressures in the economy. Questions nonetheless productivity. remained regarding the extent and duration of the In their assessment of the outlook for inflation, slowdown in the economic expansion and the other members agreed that although forecasts of more mod- factors bearing on the outlook for inflation, especially erate growth in aggregate demand at a pace around against the backdrop of substantial pressures on labor potential output had substantially reduced the odds resources. of rising inflation, the risks still were pointed in that All the members agreed that their views regarding direction on balance. Even so, any increase in infla- the outlook for inflation were consistent with retaintion was likely to be modest and gradual and was ing the press release sentence indicating that the risks subject to substantial uncertainty for a variety of remained weighted toward higher inflation over time. reasons. As noted previously, the behavior of oil Some expressed the opinion that those risks were prices was one highly uncertain source of potentially now less decidedly tilted to the upside and that a greater inflation pressures. Another major source of reconsideration of the sentence might be warranted uncertainty was the prospective performance of over the next several months, but they believed that a productivity. Largely as a consequence of rapidly change at this point would be premature. While the expanding "new economy" investments, gains in prospects of a significant rise in inflation seemed productivity had occurred at remarkable rates in quite limited for the nearer term, the members agreed recent years. However, the anticipated moderation on the need to remain especially vigilant for signs of in the expansion of economic activity and the related potentially rising inflation over the intermediate term, softening in expected returns on such investments particularly since any increase in inflation would might well restrain the further expansion of invest- occur from a level that in the view of many members ment spending and limit the associated pickup in was already on the high side of an acceptable range. productivity. Once productivity growth tended to At the conclusion of this discussion, the Commitlevel out, employers would find it more difficult to tee voted to authorize and direct the Federal Reserve offset the rise in their costs that might occur should Bank of New York, until it is instructed otherwise, to tight labor markets persist. Finally, a decline in the execute transactions in the System Account in accordollar from its current level, should that happen, dance with the following domestic policy directive: might add to inflation pressures going forward. On the more positive side, there were no signs that the The Federal Open Market Committee seeks monetary pace of productivity gains was currently leveling out and financial conditions that will foster price stability and and no evidence of rising longer-term inflation expec- promote sustainable growth in output. To further its longrun objectives, the Committee in the immediate future tations. Moreover, cost pressures and price inflation seeks conditions in reserve markets consistent with mainhad remained subdued for an extended period despite taining the federal funds rate at an average of around low rates of unemployment that in the past had been 6V2 percent. associated with increasing inflation. Against the backdrop of these uncertainties and The vote also encompassed approval of the senthe current performance of the economy, all the Com- tence below for inclusion in the press statement to be mittee members indicated that they favored an released shortly after the meeting: unchanged policy stance for the intermeeting period ahead. In support of this view, they placed consider- Against the background of its long-run goals of price able weight on widespread indications, reinforced by stability and sustainable economic growth and of the infor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 25 mation currently available, the Committee believes that the It was agreed that the next meeting of the Commitrisks are weighted mainly toward conditions that may tee would be held on Wednesday, November 15, generate heightened inflation pressures in the foreseeable 2000. future. The meeting adjourned at 12:05 p.m. Votes for this action: Messrs. Greenspan, McDonough, Broaddus, Ferguson, Gramlich, Guynn, Jordan, Kelley, Donald L. Kohn Meyer, and Parry. Votes against this action: None. Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

26 Federal Reserve Bulletin • January 2001 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

27 Legal Developments JOINT FINAL RULE — AMENDMENT TO CONSUMER 2. The existing subpart H—Interpretations is redesignated PROTECTIONS FOR DEPOSITORY INSTITUTION SALES as subpart I. OF INSURANCE 3. A new subpart H is added to read as follows: The Office of the Comptroller of the Currency, Treasury; Board of Governors of the Federal Reserve System; Fed- Subpart H—Consumer Protection in Sales of eral Deposit Insurance Corporation; and Office of Thrift Insurance Supervision, Treasury (collectively, the Agencies) are publishing final insurance consumer protection rules. These Section rules are published pursuant to section 47 of the Federal Deposit Insurance Act (FDIA), which was added by sec- 208.81—Purpose and scope. tion 305 of the Gramm-Leach-Bliley Act (the G-L-B Act 208.82—Definitions for purposes of this subpart. or Act). Section 47 directs the Agencies jointly to prescribe 208.83—Prohibited practices. sales practices, solicitations, advertising, or offers of any 208.84—What you must disclose. insurance product by a depository institutional1 and pub- 208.85—Where insurance activities may take place. lish consumer protection regulations that apply to retails or 208.86—Qualification and licensing requirements for any person that is engaged in such activities at an office of insurance sales personnel. the institution or on behalf of the institution. The text of the other Agencies' final rules can be found Appendix A to Subpart H—Consumer Grievance in 12 C.F.R. Parts 14, 343, and 536, and was published in Process. the Federal Register on December 4, 2000 (65 Federal Register 75821-75848). The Board adopted its final rule, Section 208.81—Purpose and scope. Regulation H, Membership of State Banking Institutions in the Federal Reserve System, 12 C.F.R. Part 208, on No- This subpart establishes consumer protections in connecvember 21, 2000. tion with retail sales practices, solicitations, advertising, or Effective April 1, 2001, 12 C.F.R. Part 208 is amended offers of any insurance product or annuity to a consumer as follows: by: (a) Any state member bank; or Part 208—Membership of State Banking (b) Any other person that is engaged in such activities Institutions in the Federal Reserve System at an office of the bank or on behalf of the bank. (Regulation H) Section 208.82—Definitions for purposes of this subpart. 1. The authority citation for Part 208 is revised to read as follows: As used in this subpart: (a) Affiliate means a company that controls, is con- Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321- trolled by, or is under common control with an- 338a, 371d, 461, 481-486, 601, 611, 1814, 1816, 1818, other company. 1820(d)(9), 1823(j), 1828(o), 1831, 1831o, 1831p-l, (b) Bank means a state member bank. 1831r-l, 1831w, 1831x, 1835a, 1882, 2901-2907, 3105, (c) Company means any corporation, partnership, 3310, 3331-3351, and 3906-3909; 15 U.S.C. 78b, 781(b), business trust, association or similar organization, 781(g), 781(i), 78o-4(c)(5), 78q, 78q-l, and 78w; 31 U.S.C. or any other trust (unless by its terms the trust must 5318, 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128. terminate within twenty-five years or not later than twenty-one years and ten months after the death of individuals living on the effective date of the trust). It does not include any corporation the majority of 1. "Depository institution" means national banks in the case of institutions supervised by the Office of the Comptroller of the Cur- the shares of which are owned by the United States rency (OCC), state member banks in the case of the Board of Gover- or by any State, or a qualified family partnership, nors of the Federal Reserve System (Board), state nonmember banks as defined in section 2(o) (10) of the Bank Holding in the case of the Federal Deposit Insurance Corporation (FDIC), and Company Act of 1956, as amended (12 U.S.C. savings associations in the case of the Office of Thrift Supervision (OTS). 1841(o)(10)). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

28 Federal Reserve Bulletin • January 2001 (d) Consumer means an individual who purchases, (iii) Documents evidencing the sale, solicitaapplies to purchase, or is solicited to purchase from tion, advertising, or offer of an insurance you insurance products or annuities primarily for product or annuity identify or refer to the personal, family, or household purposes. bank. (e) Control of a company has the same meaning as in section 3(w)(5) of the Federal Deposit Insurance Section 208.83—Prohibited practices. Act (12 U.S.C. 1813(w)(5)). (f) Domestic violence means the occurrence of one or (a) Anticoercion and antitying rules. You may not engage more of the following acts by a current or former in any practice that would lead a consumer to believe family member, household member, intimate part- that an extension of credit, in violation of section ner, or caretaker: 106(b) of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972), is conditional upon (1) Attempting to cause or causing or threatening either: another person physical harm, severe emo- (1) The purchase of an insurance product or annutional distress, psychological trauma, rape, or ity from the bank or any of its affiliates; or sexual assault; (2) An agreement by the consumer not to obtain, (2) Engaging in a course of conduct or repeatedly or a prohibition on the consumer from obtaincommitting acts toward another person, includ- ing, an insurance product or annuity from an ing following the person without proper au- unaffiliated entity. thority, under circumstances that place the per- (b) Prohibition on misrepresentations generally. You may son in reasonable fear of bodily injury or not engage in any practice or use any advertisement at physical harm; any office of, or on behalf of, the bank or a subsidiary (3) Subjecting another person to false imprison- of the bank that could mislead any person or otherwise ment; or cause a reasonable person to reach an erroneous belief (4) Attempting to cause or causing damage to with respect to: property so as to intimidate or attempt to con- (1) The fact that an insurance product or annuity trol the behavior of another person. sold or offered for sale by you or any subsid- (g) Electronic media includes any means for transmit- iary of the bank is not backed by the Federal ting messages electronically between you and a government or the bank or the fact that the consumer in a format that allows visual text to be insurance product or annuity is not insured by displayed on equipment, for example, a personal the Federal Deposit Insurance Corporation; computer monitor. (2) In the case of an insurance product or annuity (h) Office means the premises of a bank where retail that involves investment risk, the fact that there deposits are accepted from the public. is an investment risk, including the potential (i) Subsidiary has the same meaning as in section that principal may be lost and that the product 3(w)(4) of the Federal Deposit Insurance Act may decline in value; or (12 U.S.C. 1813(w)(4)). (3) In the case of a bank or subsidiary of the bank (j) You means: at which insurance products or annuities are (i) A bank; or sold or offered for sale, the fact that: (ii) Any other person only when the person (i) The approval of an extension of credit to a sells, solicits, advertises, or offers an insur- consumer by the bank or subsidiary may ance product or annuity to a consumer at an not be conditioned on the purchase of an office of the bank or on behalf of a bank. insurance product or annuity by the con- (2) For purposes of this definition, activities on sumer from the bank or a subsidiary of the behalf of a bank include activities where a bank; and person, whether at an office of the bank or at (ii) The consumer is free to purchase the inanother location sells, solicits, advertises, or surance product or annuity from another offers an insurance product or annuity and at source. least one of the following applies: (c) Prohibition on domestic violence discrimination. You (i) The person represents to a consumer that may not sell or offer for sale, as principal, agent, or the sale, solicitation, advertisement, or of- broker, any life or health insurance product if the status fer of any insurance product or annuity is of the applicant or insured as a victim of domestic by or on behalf of the bank; violence or as a provider of services to victims of (ii) If the bank refers a consumer to a seller of domestic violence is considered as a criterion in any insurance products or annuities and the decision with regard to insurance underwriting, pricbank has a contractual arrangement to re- ing, renewal, or scope of coverage of such product, or ceive commissions or fees derived from with regard to the payment of insurance claims on such the sale of an insurance product or annu- product, except as required or expressly permitted unity resulting from that referral; or der State law. 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Legal Developments 29 Section 208.84—What you must disclose. application is taken, excluding Sundays and the legal public holidays specified in 5 U.S.C. 6103(a). (a) Insurance disclosures. In connection with the initial (4) Electronic form of disclosures. purchase of an insurance product or annuity by a (i) Subject to the requirements of section 101(c) consumer from you, you must disclose to the con- of the Electronic Signatures in Global and sumer, except to the extent the disclosure would not be National Commerce Act (12 U.S.C. 7001(c)), accurate, that: you may provide the written disclosures re- (1) The insurance product or annuity is not a deposit quired by paragraphs (a) and (b) of this section or other obligation of, or guaranteed by, the bank through electronic media instead of on paper, or an affiliate of the bank; if the consumer affirmatively consents to receiving the disclosures electronically and if the (2) The insurance product or annuity is not insured by disclosures are provided in a format that the the Federal Deposit Insurance Corporation (FDIC) consumer may retain or obtain later, for examor any other agency of the United States, the bank, ple, by printing or storing electronically (such or (if applicable) an affiliate of the bank; and as by downloading). (3) In the case of an insurance product or annuity that (ii) Any disclosures required by paragraphs (a) or involves an investment risk, there is investment (b) of this section that are provided by elecrisk associated with the product, including the postronic media are not required to be provided sible loss of value. orally. (b) Credit disclosure. In the case of an application for (5) Disclosures must be readily understandable. The credit in connection with which an insurance product disclosures provided shall be conspicuous, simple, or annuity is solicited, offered, or sold, you must disdirect, readily understandable, and designed to call close that the bank may not condition an extension of attention to the nature and significance of the inforcredit on either: mation provided. For instance, you may use the (1) The consumer's purchase of an insurance product following disclosures, in visual media, such as or annuity from the bank or any of its affiliates; or television broadcasting, ATM screens, billboards, (2) The consumer's agreement not to obtain, or a signs, posters and written advertisements and proprohibition on the consumer from obtaining, an motional materials, as appropriate and consistent insurance product or annuity from an unaffiliated with paragraphs (a) and (b) of this section: entity. • NOT A DEPOSIT (c) Timing and method of disclosures. • NOT FDIC-INSURED (1) In general. The disclosures required by paragraph • NOT INSURED BY ANY FEDERAL GOVERN- (a) of this section must be provided orally and in MENT AGENCY writing before the completion of the initial sale of • NOT GUARANTEED BY THE BANK an insurance product or annuity to a consumer. The • MAY GO DOWN IN VALUE. disclosure required by paragraph (b) of this section (6) Disclosures must be meaningful. must be made orally and in writing at the time the (i) You must provide the disclosures required by consumer applies for an extension of credit in paragraphs (a) and (b) of this section in a connection with which insurance is solicited, of- meaningful form. Examples of the types of fered, or sold. methods that could call attention to the nature (2) Exceptions for transactions by mail. If a sale of an and significance of the information provided insurance product or annuity is conducted by mail, include: you are not required to make the oral disclosures (A) A plain-language heading to call attention required by paragraph (a) of this section. If you to the disclosures; take an application for credit by mail, you are not (B) A typeface and type size that are easy to required to make the oral disclosure required by read; paragraph (b) of this section. (C) Wide margins and ample line spacing; (3) Exception for transactions by telephone. If a sale (D) Boldface or italics for key words; and of an insurance product or annuity is conducted by (E) Distinctive type size, style, and graphic telephone, you may provide the written disclosures devices, such as shading or sidebars, when required by paragraph (a) of this section by mail the disclosures are combined with other within three business days beginning on the first information. business day after the sale, excluding Sundays and (ii) You have not provided the disclosures in a the legal public holidays specified in 5 U.S.C meaningful form if you merely state to the 6103(a). If you take an application for such credit consumer that the required disclosures are by telephone, you may provide the written disclo- available in printed material, but you do not sure required by paragraph (b) of this section by provide the printed material when required and mail, provided you mail it to the consumer within do not orally disclose the information to the three days beginning the first business day after the consumer when required. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

30 Federal Reserve Bulletin • January 2001 (iii) With respect to those disclosures made through Section 208.86—Qualification and licensing electronic media for which paper or oral dis- requirements for insurance sales personnel. closures are not required, the disclosures are not meaningfully provided if the consumer A bank may not permit any person to sell or offer for sale may bypass the visual text of the disclosures any insurance product or annuity in any part of its office or before purchasing an insurance product or an- on its behalf, unless the person is at all times appropriately nuity. qualified and licensed under applicable State insurance (7) Consumer acknowledgment. You must obtain from licensing standards with regard to the specific products the consumer, at the time a consumer receives the being sold or recommended. disclosures required under paragraphs (a) or (b) of this section, or at the time of the initial purchase by Appendix A To Subpart H—Consumer Grievance the consumer of an insurance product or annuity, a Process written acknowledgment by the consumer that the consumer received the disclosures. You may per- Any consumer who believes that any bank or any other mit a consumer to acknowledge receipt of the person selling, soliciting, advertising, or offering insurance disclosures electronically or in paper form. If the products or annuities to the consumer at an office of the disclosures required under paragraphs (a) or (b) of bank or on behalf of the bank has violated the requirements this section are provided in connection with a of this subpart should contact the Consumer Complaints transaction that is conducted by telephone, you Section, Division of Consumer and Community Affairs, must: Board of Governors of the Federal Reserve System at the (i) Obtain an oral acknowledgment of receipt of following address: 20th & C Streets, NW, Washington, the disclosures and maintain sufficient docu- D.C. 20551. mentation to show that the acknowledgment was given; and (ii) Make reasonable efforts to obtain a written ORDERS ISSUED UNDER BANK HOLDING COMPANY acknowledgment from the consumer. ACT (d) Advertisements and other promotional material for Orders Issued Under Section 4 of the Bank Holding insurance products or annuities. The disclosures de- Company Act scribed in paragraph (a) of this section are required in advertisements and promotional material for insurance Queens County Bancorp, Inc. products or annuities unless the advertisements and Flushing, New York promotional materials are of a general nature describing or listing the services or products offered by the Order Approving Notice to Acquire a Savings bank. Association and to Engage in Nonbanking Activities Queens County Bancorp, Inc. ("Bancorp"), a bank holding Section 208.85—Where insurance activities may company within the meaning of the Bank Holding Comtake place. pany Act ("BHC Act"), has requested the Board's approval under sections 4(c)(8) and 4(j) of the BHC Act (a) General rule. A bank must, to the extent practicable, (12 U.S.C. §§ 1843(c)(8) and 1843(j)) and section 225.24 of keep the area where the bank conducts transactions inthe Board's Regulation Y to acquire all the voting shares of volving insurance products or annuities physically seg- Haven Bancorp, Inc., Westbury, New York ("Haven"), regated from areas where retail deposits are routinely and thereby indirectly acquire its subsidiary savings associaccepted from the general public, identify the areas ation, CFS Bank, Woodhaven, New York, ("CFS Bank").1 where insurance product or annuity sales activities oc- Bancorp also has requested the Board's approval to acquire cur, and clearly delineate and distinguish those areas indirectly CFS Investments, Inc. ("CFS Investments") and from the areas where the bank's retail deposit-taking thereby engage in providing securities brokerage services, activities occur. and Columbia Preferred Capital Corporation ("CPCC") (b) Referrals. Any person who accepts deposits from the public in an area where such transactions are rou- 1. Bancorp intends to merge its wholly owned subsidiary bank, tinely conducted in the bank may refer a consumer Queens County Savings Bank, Flushing, New York ("QCSB"), and who seeks to purchase an insurance product or annu- CFS Bank, with QCSB remaining as the surviving institution. The ity to a qualified person who sells that product only if merger is subject to approval by the Federal Deposit Insurance Corpothe person making the referral receives no more than a ration ("FDIC") under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) ("Bank Merger Act") and by the New York one-time, nominal fee of a fixed dollar amount for State Banking Department ("NYSBD"). After consummation of the each referral that does not depend on whether the re- proposal, Bancorp will change its name to New York Community ferral results in a transaction. Bancorp, Inc. 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Legal Developments 31 and thereby engage in extending credit and servicing loans The Board also has considered publicly available financial and activities related to extending credit. and other information on the organizations and their sub- Notice of the proposal, affording interested persons sidiaries, and all the information submitted on the financial an opportunity to submit comments, has been published and managerial aspects of the proposal by Bancorp. Based (65 Federal Register 50,992 (2000)). The time for filing on all the facts of record, the Board concludes that the comments has expired, and the Board has considered the financial and managerial resources of the organizations notice and all comments received in light of the factors set involved are consistent with approval. forth in section 4 of the BHC Act. Bancorp, with total consolidated assets of $2 billion, Competitive Considerations operates a single subsidiary bank, QCSB, which is the 50th largest depository institution in New York State, control- As part of its consideration of the public interest factors ling deposits of $1 billion, representing less than 1 percent under section 4 of the BHC Act, the Board has considered of total deposits in insured depository institutions in the carefully the competitive effects of the proposal in light of state ("state deposits").2 Haven's subsidiary savings asso- all the facts of record.7 QCSB and CFS Bank compete ciation, CFS Bank, is the 35th largest depository institution directly in the Metropolitan New York/New Jersey banking in the state, controlling deposits of $2.1 billion, represent- market ("New York banking market").8 On consummation ing less than 1 percent of state deposits. On consummation of the proposal, Bancorp would become the 27th largest of the proposal, Bancorp would become the 22nd largest depository institution in the market, controlling deposits of depository organization in New York State, controlling approximately $3 billion, representing less than 1 percent deposits of $3 billion. of total deposits in depository institutions in the market The Board has previously determined by regulation that ("market deposits").9 The Herfindahl-Hirschman Index the operation of a savings association by a bank holding ("HHI") for the New York banking market would remain company is closely related to banking for purposes of unchanged at 786 points. Market concentration, as measection 4(c)(8) of the BHC Act.3 The Board has also sured by the HHI, would remain unconcentrated and within determined that securities brokerage activities, extending the parameters contained in the Department of Justice credit and servicing loans, and activities related to extend- Merger Guidelines ("DOJ Guidelines") and the Board's ing credit, are closely related to banking.4 Bancorp has precedent.10 Based on all the facts of record, the Board committed to conform the activities of CFS Bank and concludes that consummation of the proposal would not Haven to, and conduct those activities in accordance with, result in any significantly adverse effect on competition or the requirements of section 4(c)(8) of the BHC Act and on the concentration of banking resources in the New York Regulation Y. banking market or any other relevant banking market. In reviewing the proposal, the Board is required by section 4(j)(2)(A) of the BHC Act to determine that the acquisition of Haven by Bancorp "can reasonably be ex- 7. See First Hawaiian, Inc., 79 Federal Reserve Bulletin 966 (1993). pected to produce benefits to the public . . . that outweigh 8. The New York banking market is defined as Bronx, Dutchess, possible adverse effects, such as undue concentration of Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, resources, decreased or unfair competition, conflicts of Rockland, Suffolk, Sullivan, Ulster, and Westchester Counties in New interests, or unsound banking practices."5 As part of its York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, evaluation of the public interest factors, the Board reviews Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a portion of Mercer Counties in New Jersey; Pike County in Pennsylvathe financial and managerial resources of the companies nia and portions of Fairfield and Litchfield Counties in Connecticut. involved.6 9. Market share data before consummation are based on calculations in which the deposits of thrift institutions are included at 50 percent. Financial and Managerial Considerations The Board has previously indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Bancorp, 76 Federal Reserve Bulletin The Board has carefully reviewed the financial and mana- 788 (1990); National City Corporation, 70 Federal Reserve Bulletin gerial resources of Bancorp and Haven and their respective 743 (1984). Because the deposits of Haven would be controlled by a subsidiaries and the effect the transaction would have on commerical banking organization after consummation, these deposits such resources in light of all the facts of record. The Board are included at 100 percent in the calculation of Bancorp's postconsummation share of market deposits. See Norwest Corporation, has considered, among other things, confidential reports of 78 Federal Reserve Bulletin 452 (1992); First Banks, Inc., 76 Federal examination and other supervisory information received Reserve Bulletin 669, 670 n.9 (1990). from the primary federal supervisors of the organizations. 10. Under the DOJ Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the post-merger HHI is less than 1000 is considered to be unconcentrated. The Department of Justice has informed the Board that a bank merger or acquisition will not be 2. Asset and deposit data are as of June 30, 2000. Ranking data are challenged (in the absence of other factors indicating anticompetitive as of March 3, 2000. In this context, depository institutions include effects) unless the post-merger HHI is at least 1800 and the merger commercial banks, savings banks, and savings associations. increases the HHI by more than 200 points. The Department of Justice 3. 12 C.F.R. 225.28(b)(4). has stated that the higher than normal HHI thresholds for screening 4. See 12 C.F.R. 225.28(b)(1), (2), and (7)(i). bank mergers for anticompetitive effects implicitly recognize the 5. 12 U.S.C. § 1843(j)(2)(A). competitive effects of limited-purpose lenders and other nondeposi- 6. See 12 C.F.R. 225.26. tory financial entities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

32 Federal Reserve Bulletin • January 2001 Convenience and Needs Considerations provided under applicable CRA regulations, examiners review an institution's performance under the lending, In acting on notices to acquire a savings association, the investment, and service tests. An institution's performance Board reviews the records of performance of the relevant under these tests forms the basis for its overall CRA depository institutions under the Community Reinvestment rating.14 In determining an institution's overall CRA rat- Act (12 U.S.C. § 2901 et seq.).n The CRA requires the ing, examiners generally accord greater consideration to appropriate federal financial supervisory agency to "assess the institution's performance under the lending test than to the institution's record of meeting the credit needs of its the investment or service tests. entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound opera- B. QCSB's Record of Performance tions of such institution," and to take this record into account in its evaluation of bank holding company applica- At QCSB's most recent CRA examination, FDIC examintions.12 The Board has carefully considered the conveers reviewed the bank's record of meeting the credit needs nience and needs factor and the CRA performance records of its community for the period from January 1997 to of the subsidiary depository institutions of Bancorp and September 1999. Although noting certain weaknesses in Haven in light of all the facts of record, including public QCSB's community investment portfolio, examiners rated comments on the proposal. the bank "satisfactory" overall based on its total perfor- The Board has received comments from Inner City mance in community lending, investment, and service Press/Community on the Move ("ICP") contending that throughout its entire assessment area. In particular, examin- QCSB and CFS Bank have failed to make an adequate ers characterized QCSB as a leader in lending volume and amount of community development investments in lownoted that the bank consistently lent substantially more in and moderate-income ("LMI") communities. ICP notes its assessment area than other institutions of comparable that QCSB received a "needs to improve" rating on the size. Moreover, examiners found QCSB to be committed to investment test portion of its most recent CRA examinameeting the credit needs of its assessment area. tion by its primary federal supervisory agency, the Federal QCSB received a "high satisfactory" rating under the Deposit Insurance Corporation ("FDIC"), as of Septemlending test. Examiners found that QCSB had excellent ber 9, 1999. ICP also notes that CFS Bank received a "low responsiveness to community credit needs in terms of satisfactory" rating on the investment test portion, and a volume and amount loaned in its assessment area. In 1997 "needs to improve" rating with respect to the activities of and 1998, QCSB's overall market rank for total loan origiits Connecticut branches, on its most recent CRA examinanations in Queens and New York Counties was in the top tion by its primary federal supervisor, the Office of Thrift 15 percent of reporting institutions. During that same pe- Supervision ("OTS"), as of April 26, 1999. ICP asserts riod, QCSB made approximately $1 billion in home mortthat the sale or closure of CFS Bank's 15 branches in New gage loans,15 of which more than 73 percent by number Jersey and Connecticut would not serve the convenience and dollar amount were in its assessment area. and needs of the community. Finally, ICP contends, based Examiners stated that the distribution of QCSB's lending in part on its analysis of data filed under the Home Mortreflected good penetration by geography and by income of gage Disclosure Act (12 U.S.C. §§ 2801 et seq.) ("HMDA"), the borrower. In 1997 and 1998, QCSB's lending in LMI that QCSB engages in the exportation of capital from LMI areas represented more than 20 percent of its total lending, communities to more affluent communities and that certain more than double the percentage for all lenders in those aspects of QCSB's lending record indicate illegal discriminaareas ("lenders in the aggregate"). Examiners charactertory lending practices. ized QCSB as one of the assessment area's largest LMI area lenders. In 1998, approximately 33 percent of all loans A. CRA Performance Examinations originated by QCSB where borrower information was col- As provided in the CRA, the Board evaluates an institu- lected were made to LMI individuals. tion's record of performance in light of examinations of the Examiners commended QCSB's record of community CRA performance records of the institution conducted by development lending, particularly lending for multifamily the appropriate federal supervisory agency. An institution's housing for LMI individuals. During the review period, most recent CRA performance examination is a particu- more than 98 percent of loans made by QCSB in the larly important consideration in the notice process, because assessment area were for multifamily housing. From April it represents a detailed on-site evaluation of the institu- 1997 to December 1999, QCSB originated 86 loans, totaltion's overall record of performance under the CRA by its ing approximately $104 million, for multifamily financing appropriate federal supervisory agency.13 Unless otherwise on properties in LMI areas. QCSB has also extended credit and provided loans to community organizations that reha- 11. See, e.g., Banc One Corporation, 83 Federal Reserve Bulletin 602 (1997). 14. See Interagency Questions and Answers, 65 Federal 12. 12 U.S.C. § 2903. Register 25,099. 13. See Interagency Questions and Answers Regarding Community 15. In this context, "home mortgage loan" means loans provided Reinvestment, 65 Federal Register 25,088 and 25,107 (2000) ("Inter- for home purchase, refinance, home improvement and multifamily agency Questions and Answers"). housing. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 33 bilitate affordable housing throughout New York City and cies in its level of qualified investments and operations in provided outreach services to LMI individuals and elderly Connecticut, the OTS examiners rated the CRA performembers of the community. mance of CFS Bank "satisfactory" overall, based on its QCSB participated in a number of programs to provide comprehensive performance in lending, investments, and innovative and flexible lending practices to its communi- service in all states in which it operates. ties. QCSB offered a special type of residential mortgage 1. CFS Bank's Overall Record of Performance. At CFS loan that included no income verification. Furthermore, Bank's most recent CRA examination, examiners reviewed QCSB offered loans under a special program designed by its performance record from August 1996 to April 1999. the State of New York Mortgage Association that was Examiners characterized CFS Bank's lending performance available to first-time buyers of certain homes and condo- as strong and rated it "high satisfactory." Examiners favorminiums. ably noted that during the reviewed period, CFS Bank Examiners noted that QCSB provided multiple delivery increased its lending volume from 1,249 loans in 1997, to systems in its assessment area to offer accessible banking 4,020 loans in 1998, or approximately 222 percent. The service. QCSB operated eleven full-service branches and overall increase in lending produced a corresponding intwo customer service centers in neighborhood convenience crease in the number of loans in LMI communities.16 In stores. All branches maintained Saturday and extended 1997, CFS Bank had 87 HMDA-reportable loans in LMI evening business hours. QCSB did not close any branches communities; in 1998, it had 406 HMDA-reportable loans during the review period. QCSB also operated 11 ATMs in in LMI communities. Examiners also found that CFS its assessment area. Furthermore, QCSB offered a 24-hour Bank's responsiveness to the mortgage needs of the entire bank-by-telephone program that allowed customers to ac- community, including LMI communities, was satisfactory. cess a wide variety of banking services by telephone. From August 1996 to March 1999, approximately 60 percent Examiners reported that the ATM and telephone network of CFS Bank's residential mortgage loans by number, and provided QCSB with alternative delivery systems that were 71 percent by dollar amount, were in its assessment area. accessible to essentially all portions of the bank's assess- Examiners also found that CFS Bank's lending record ment area. showed good loan penetration by geography, including As previously noted, examiners found some deficiencies LMI areas. In 1997, CFS Bank ranked in the top in QCSB's portfolio of community investments and rated 25 percent of aggregate HMDA lenders in lending to LMI the bank "needs to improve" under the investment test. communities in its assessment area. Furthermore, between Although QCSB made investments in community develop- 1997 and 1998, the number and dollar amount of CFS ment corporations and other local organizations dedicated Bank's lending in LMI areas increased by more than to small business, affordable housing development, and 350 percent. Examiners also found that CFS Bank achieved lending, examiners specifically noted that the bank's good results in making loans to LMI borrowers. From 1997 amount of qualified community development investments to 1998, the total number of loans to LMI borrowers was inadequate for its size. Since the time of the examina- increased from 163 to 622. During that same period, the tion, QCSB has taken steps to improve and increase its dollar amount of the bank's loans to LMI borrowers ininvestment activities. According to QCSB, it has increased creased from $14.3 million to $61.2 million. its level of qualified investments to more than $4 million, The examination report noted CFS Bank's record of an increase of more than 75 percent. QCSB's new invest- using innovative and flexible lending practices to serve the ments include organizations that provide educational and credit needs of its community. CFS Bank participated in housing assistance to persons in LMI communities. the New York City Housing Partnership New Homes Pro- As noted, in determining the overall performance of gram, which subsidized the purchase of homes for certain QCSB under the CRA, examiners weighed its very strong first-time buyers through financing from conventional loan performance in lending in its community, its strong perfor- products offered by the Federal National Mortgage Associmance in providing banking services in the community, ation and the Federal Home Loan Mortgage Corporation. and its weaker performance in making community develop- CFS Bank also offered "credit rehabilitation" loans that ment investments. On balance, examiners determined that used flexible underwriting criteria to assist persons who the performance of QCSB under the CRA was "satisfacto- might not otherwise qualify for conventional mortgage ry." The Board has also considered that, since receiving loans. criticism of its community investment activities, QCSB has CFS Bank received a "high satisfactory" rating for the taken steps to address this weakness in its overall satisfac- service test. Examiners favorably commented on CFS tory performance record. Bank's expansion into and provision of banking services to LMI communities. At the time of the examination, CFS C. CFS Bank's Record of Performance Bank maintained 8 traditional branches and 59 supermarket branches, 10 of which were located in, or in areas CFS Bank's most recent examination by the OTS for CRA was in April 1999. In addition to evaluating CFS Bank's 16. Most of the increase in CFS Bank's lending record resulted from overall performance, the OTS assigned separate ratings to the acquisition of Intercounty Mortgage Company in 1997, a highreflect the bank's branch operations in New Jersey, New volume mortgage lender operating in Connecticut, New Jersey, New York, and Connecticut. Although noting certain deficien- York, and Pennsylvania. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

34 Federal Reserve Bulletin • January 2001 adjacent to, LMI areas. During the review period, one areas. In New Jersey and New York, examiners found that branch was closed, but customers were served by a super- branch convenience, products, accessibility, and services market branch across the street. Supermarket and tradi- were essentially identical to those of CFS Bank's consolitional branches offered a wide variety of flexible hours and dated operations. Examiners further noted that CFS Bank services, including weekend and evening hours, ATMs, personnel in New York, including directors, were actively money transfers, and certain utility payment programs. involved in organizations that offer educational, economic, Examiners stated that CFS Bank was actively involved in and housing assistance to LMI individuals. community development services for organizations that Examiners rated CFS Bank "needs to improve" for its encouraged local economic development or provided assis- overall CRA performance in Connecticut, including its tance to LMI individuals. performance under the investment and lending tests.17 Examiners assigned CFS bank a "low satisfactory" rat- Examiners noted that some of the issues that influenced ing on the investment test portion of the evaluation. During CFS Bank's CRA ratings in Connecticut were caused by the examination period, CFS Bank made some qualified the relative newness of operations in that state. At the investments, including a $1 million investment in a com- time of the examination, CFS Bank maintained only munity development organization that acquired, devel- seven supermarket branches in Connecticut, all of which oped, and operated LMI residential rental properties. CFS were less than four years old, and four of which were Bank also donated to associations that provided housing less than two years old. CFS Bank has represented that it assistance to LMI individuals. CFS Bank has represented has increased its lending operations and qualified investthat it has increased its level of CRA qualified investments. ments in Connecticut. Since its last examination, CFS For example, CFS Bank has invested approximately Bank has purchased approximately $24 million of multi- $2 million in mortgage-backed securities representing in- family loans in LMI areas in Connecticut. As noted terests in loans in LMI areas in Connecticut. CFS Bank has above, CFS Bank has also invested $2 million in also represented that it would continue to seek CRA- mortgage-backed securities that represent interests in qualified investments for its portfolio in accordance with loans in Connecticut LMI areas. safe and sound banking operations. 2. CFS Bank's Record of Performance in Connecticut, D. Branch Closings New York, and New Jersey. In addition to evaluating CFS Bank's overall performance, examiners assigned individual ICP also expresses concern that consummation of the ratings to the bank's operations in New Jersey, New York, proposal would result in the closure of CFS Bank branches and Connecticut. As of June 30, 1999, branches in New in Connecticut and New Jersey. Bancorp has represented York accounted for 94 percent of CFS Bank's total insured that it does not intend to close any of the Connecticut or deposits, and branches in New Jersey and Connecticut New Jersey branches, but is likely to sell them. Bancorp accounted for approximately 3 percent each. For New has provided preliminary and confidential information on Jersey and New York, the OTS examiners rated CFS the integration of CFS Bank into QCSB's existing branch Bank's CRA record "satisfactory." In Connecticut, how- system. Bancorp has also committed to provide the Board ever, CFS Bank received a "needs to improve" rating. with details concerning the sale or other disposition of the In New Jersey and New York, examiners commented former CFS Bank branches in Connecticut and New Jersey. favorably on CFS Bank's achievements under the lending The Board has carefully considered all the facts concernand service tests, where CFS Bank received "high satisfac- ing branch closings, including the preliminary branch intetory" ratings under the lending test. From 1997 to 1998, gration information submitted by Bancorp, and Bancorp's the total number of borrowers of CFS Bank in LMI areas record of opening and closing branches. Examiners at the in New Jersey and New York increased approximately most recent CRA examination of QCSB reviewed its 380 percent, while total dollars lent increased from approx- record of opening and closing branches and found that no imately $26.6 million to $80.1 million. Using HMDA data, branches were closed from 1997 to 1999. Furthermore, examiners found that in 1997, CFS Bank ranked in the top examiners noted that QCSB had opened two new branches 25 percent of aggregate lenders to LMI borrowers in New during the examination period, one of which was located in York. CFS Bank also participated in community develop- a census tract adjacent to an LMI census tract. The Board ment lending in New York. During the examination period, notes that any branches closed would be closed pursuant to CFS Bank had 48 loans totaling $62 million that were the branch closing policies of QCSB and CFS Bank, which secured by multifamily apartment buildings in New York require consideration of the community's needs and the City. Furthermore, CFS Bank extended a $500,000 line of impact of the closing on the neighborhood. The FDIC and credit to a community development corporation that pro- OTS have reviewed the branch closing policies of QCSB vided financing to small businesses. and CFS Bank respectively, and found them satisfactory. Under the service test, CFS Bank also received "high satisfactory" ratings for its New Jersey and New York operations. In New Jersey, CFS Bank operated eight super- 17. An examined institution need not participate in innovative or market branches, three of which were located in LMI complex qualified investments to demonstrate a satisfactory record of areas. In New York, CFS Bank operated 52 standard retail performance under the CRA. See Interagency Questions and Answers, or supermarket branches, seven of which were in LMI 65 Federal Register 25,106. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 35 The Board also has considered that federal banking law combined HMDA and MECA lending records indicate that provides a specific mechanism for addressing branch clos- the bank provides for and assists in meeting the credit ings. Federal law requires an insured depository institution needs of its entire community, including Queens County. to provide notice to the public and to the appropriate The HMDA data for QCSB reflect certain disparities in federal supervisor before closing a branch.18 The law does the rates of loan origination by racial group.22 The Board is not authorize federal supervisory agencies to prevent the concerned when the record of an institution indicates disclosing of any branch. Any branch closings resulting from parities in lending and believes that all banks are obligated the proposal will be considered by the appropriate federal to ensure their lending practices are based on criteria that supervisor at the next CRA examination of the relevant ensure not only safe and sound lending but also equal subsidiary depository institution. access to credit by creditworthy applicants regardless of their race. The Board recognizes, however, that HMDA E. HMDA Data data alone provide an incomplete measure of an institution's lending in its community, because these data cover The Board also has considered carefully the lending record only a few categories of housing-related lending. HMDA of Bancorp in light of ICP's comments regarding 1999 data, moreover, provide only limited information about the HMDA data for QCSB. ICP contends that QCSB's lending covered loans.23 HMDA data, therefore, have limitations and deposit-taking practices amount to the exportation of that make them an insufficient basis, absent other informacapital from Queens County to New York County.19 ICP tion, for concluding that an institution has not adequately also contends that QCSB originates a larger proportion of assisted in meeting its community's credit needs or has family loans in Queens County to whites than to engaged in illegal lending discrimination. minorities. Because of the limitations of HMDA data, the Board has The 1999 HMDA data indicates that QCSB originated carefully reviewed other information concerning QCSB's multifamily loans in Queens and New York Counties and record of lending to minority and LMI individuals. In that the number of multifamily loans originated in both particular, the Board has carefully reviewed examination counties was roughly equal.20 The Board also has consid- reports, which provide on-site evaluations of compliance ered other forms of residential lending that are not reflected with the fair lending laws and the overall lending and in the 1999 HMDA data. QCSB has represented that in community development activities of the banks. At addition to traditional 1-4 family and multifamily lending, QCSB's most recent CRA performance evaluation, examit provides supplemental residential financing through iners found that the bank had complied with fair lending Mortgage, Extension, and Consolidation Agreement laws. CRA examiners also found that QCSB had excellent ("MECA") loans.21 QCSB has provided additional data responsiveness to the credit needs of its entire community. demonstrating that in 1999, it provided more than $570 Furthermore, multifamily loans, rather than family million in combined HMDA/MECA financing, of which loans, comprise the majority of QCSB's lending. In 1997 82 percent by number and 80 percent by amount financing, and 1998, more than 83 percent of QCSB's total HMDA of which 82 percent by number and 80 percent by amount loans in its assessment area were for multifamily lending. were in its assessment areas. In 1999, QCSB extended 139 As previously noted, examiners rated QCSB "high satis- MECA loans in Queens County, totaling approximately factory" for the lending test portion of its last CRA exami- $223.7 million, including 31 in LMI census tracts. QCSB's nation. In 1997 and 1998, QCSB extended 20.5 percent and 22 percent, respectively, of its loans in LMI areas, compared with 6.8 percent and 8.1 percent, respectively, 18. Section 42 of the Federal Deposit Insurance Act (12 U.S.C. for lenders in the aggregate. Furthermore, for HMDA loans § 1831r-l), as implemented by the Joint Policy Statement Regarding reflecting the income of the borrower, examiners found Branch Closings (64 Federal Register 34,844 (1999)), requires that a QCSB had excellent penetration among customers of difbank provide the public with at least 30 days notice and the appropriferent income levels. ate federal supervisory agency with at least 90 days notice before the date of the proposed branch closing. The bank also is required to provide reasons and other supporting data for the closure, consistent with the institution's written policy for branch closings. 19. ICP alleges that in Queens County, where QCSB collects most of its deposits, the bank only originates 1-4 family housing loans while in the neighboring, wealthier New York County, the bank originates multifamily housing loans that are generally larger than 1-4 family loans. Furthermore, ICP notes that QCSB did not extend any multifamily loans in low-income census tracts. 22. For example, QCSB's percentages of loans to African Ameri- 20. In 1999, QCSB extended 6 multifamily HMDA loans in New cans and Hispanics are below the percentages for lenders in the York County, compared with 5 such loans in Queens County. aggregate for 1999. 21. A MECA is an agreement between a lender and a borrower that 23. The data, for example, do not account for the possibility that an modifies the terms of an existing loan by, for example, extending the institution's outreach efforts may attract a larger proportion of marginfinal repayment date. MECAs do not involve lending additional ally qualified applicants than other institutions attract and do not money and are not reported under HMDA, but are regarded as loans provide a basis for an independent assessment of the creditworthiness and may be considered in evaluating an institution's CRA perfor- of applicants. Credit history problems and excessive debt levels relamance. See Interagency Questions and Answers, 65 Federal Register tive to income (reasons most frequently cited for a credit denial) are 25,100. not available from HMDA data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

36 Federal Reserve Bulletin • January 2001 F. Conclusion Regarding Convenience and Needs ing services. Additionally, there are public benefits to be Factors derived from permitting capital markets to operate so that bank holding companies may make potentially profitable In considering the overall CRA performance records of investments in nonbanking companies and from permitting Bancorp and Haven, the Board has carefully evaluated the banking organizations to allocate their resources in the entire record, including the public comments in this case.24 manner they believe is most efficient when, as in this case, The Board particularly notes that the overall CRA ratings those investments are consistent with the relevant considerfor QCSB and CFS Bank are "satisfactory," and that ations under the BHC Act. Based on all the facts of record, examiners concluded that the institutions' strong perfor- the Board has determined that consummation of this promance in lending oifset their weaknesses in other types of posal can reasonably be expected to produce public bene- CRA performance. The Board has also considered actions fits that would outweigh any likely adverse effects under taken by QCSB and CFS Bank since their last examina- the standard of section 4(j)(2) of the BHC Act. tions to address weaknesses noted by examiners and to improve their CRA performance. Based on a review of the Conclusion entire record, including ICP's comments and responses by Bancorp and Haven, relevant reports of examination, HMDA data, and information on branch closings, the Based on the foregoing and all the facts of record, the Board concludes that convenience and needs consider- Board has determined that the notice should be, and hereby ations, including the CRA performance records of Banis, approved. The Board's approval is specifically condicorp, Haven, and their subsidiary depository institutions, tioned on compliance by Bancorp with all the commitare consistent with approval. ments made in connection with this notice and with all the conditions in this order. The Board's determination also is Other Factors subject to all the conditions set forth in Regulation Y, including those in 225.7 and 225.25(c) (12 C.F.R. 225.7 The record indicates that consummation of the proposal and 225.25(c)), and to the Board's authority to require such would result in benefits to consumers and businesses. The modification or termination of the activities of a bank proposal would enable Bancorp to provide its customers holding company or any of its subsidiaries as the Board and Haven's customers with access to a broader array of finds necessary to ensure compliance with, and to prevent products and services, including commercial bank prod- evasion of, the provisions of the BHC Act and the Board's ucts, in an expanded service area. Among the Haven ser- regulations and orders thereunder. For purposes of this vices that would become available to customers of Ban- action, the commitments and conditions relied on by the corp are securities brokerage services and an expanded Board in reaching its decision are deemed to be conditions branch network, including 8 traditional branches in the imposed in writing by the Board in connection with its New York banking market and 15 supermarket branches in findings and decision and, as such, may be enforced in Connecticut and New Jersey where Bancorp currently has proceedings under applicable law. no branches. In addition, Haven would provide the com- This transaction shall not be consummated later than bined organization with an enhanced capacity to offer 1-4 three months after the effective date of this order, unless family residential mortgage loans to complement Bansuch period is extended for good cause by the Board or by corp's focus on multifamily lending. Bancorp, in turn, the Federal Reserve Bank of New York, acting pursuant to would provide Haven customers increased convenience delegated authority. with experience in multifamily lending, and on-line bank- By order of the Board of Governors, effective November 29, 2000. 24. ICP also notes that the NYSBD rated QCSB "low satisfactory" under the lending test and "needs to improve" under the investment Voting for this action: Chairman Greenspan, Vice Chairman Fergutest portion at its last examination ("State Examination"), as of son, and Governors Kelley, Meyer, and Gramlich. June 30, 1998, which evaluated its performance in meeting the credit needs of its entire community pursuant to New York law. The Board ROBERT DEV. FRIERSON notes the State Examination rated QCSB's performance "satisfactory" overall. Associate Secretary of the Board Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 37 INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (JULY 1, 2000—SEPTEMBER 30, 2000) Bulletin Volume Applicant Merged or Acquired Bank or Activity Date of Approval and Page Australia & New Zealand Banking Group Amerika Samoa Bank, August 7, 2000 86, 695 Limited, Pago Pago, American Samoa Melbourne, Australia Banca Antoniana Popolare Veneta To establish a state-licensed branch in September 25, 2000 86, 783 S.c.p.a.r.l., New York, New York Padua, Italy Banco Venezolano de Credito S.A.C.A., To establish a representative office in September 27, 2000 86, 785 Caracas, Venezuela Miami, Florida Caixa Economica Montepio Geral, To establish a representative office in August 21, 2000 86, 700 Lisbon, Portugal Newark, New Jersey The Chuo Mitsui Trust & Banking Co., To establish a representative office in August 21, 2000 86, 702 Ltd., New York, New York Tokyo, Japan Deutsche Hyp Deutsche Hypothekenbank To establish a representative office in July 26, 2000 86, 658 Frankfurt-Hamburg, AG Frankfurt, New York, New York Germany First Bancorp, First Savings Bancorp, Inc., August 21, 2000 86, 696 Troy, North Carolina Southern Pines, North Carolina First Savings Bank of Moore County, Inc., SSB, Southern Pines, North Carolina FleetBoston Financial Corporation, North Fork Bancorporation, Inc., September 27, 2000 86, 751 Boston Massachusetts Melville, New York North Fork Bank, Mattituck, New York Superior Savings of New England, N.A. Bradford, Connecticut Dime Bancorp, Inc., New York, New York The Dime Savings Bank of New York, FSB, New York, New York Mizuho Holdings, Inc. (In Formation), The Dai-Ichi Kangyo Bank, Ltd., September 5, 2000 86, 776 Tokyo,Japan Tokyo,Japan The Fuji Bank, Ltd., Tokyo, Japan The Industrial Bank of Japan, Ltd., Tokyo, Japan Fuji Bank International, Inc., Los Angeles, California North Fork Bancorporation, Inc., Dime Bancorp, Inc., September 27, 2000 86, 767 Melville, New York New York, New York The Dime Savings Bank of New York, FSB, New York, New York The Royal Bank of Scotland Group pic, NatWest Group Holdings Corporation, July 31, 2000 86, 655 Edinburgh, Scotland New York, New York Turkiye Is Bankasi, A.S., To establish a representative office in September 18, 2000 86, 786 Ankara, Turkey New York, New York Westamerica Bancorporation, First Counties Bank, August 2, 2000 86, 699 San Rafael, California Clearlake, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

38 Federal Reserve Bulletin • January 2001 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 4 Applicant(s) Bank(s) Effective Date Zions Bancorporation, To engage in activities that are financial in November 28, 2000 Salt Lake City, Utah nature or incidental to a financial activity 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 Alabama National BanCorporation, Peoples State Bank of Groveland, Atlanta November 21, 2000 Birmingham, Alabama Groveland, Florida Carolina Bank Holdings, Inc., Carolina Bank, Richmond October 27, 2000 Greensboro, North Carolina Greensboro, North Carolina Charter Financial Corporation, Charter Bank, San Francisco November 8, 2000 Bellevue, Washington Bellevue, Washington Community Bancshares Company, Colfax Banking Company, Dallas November 17, 2000 Colfax, Louisiana Colfax, Louisiana ENB Bankshares, Inc., Eagle National Bank, Dallas November 17, 2000 Dallas, Texas Dallas, Texas ENB Delaware Bankshares, Inc., Wilmington, Delaware Eureka Springs Bancshares, Inc., Bank of Eureka Springs, St. Louis October 27, 2000 Eureka Springs, Arkansas Eureka Springs, Arkansas First Community Capital First Community Bank, N.A., Dallas October 25, 2000 Corporation, Houston, Texas Houston, Texas First Community Capital Corporation of Delaware, Inc., Wilmington, Delaware First Olathe Bancshares, Inc., Bannister Bank & Trust, Kansas City November 16, 2000 Kansas City, Missouri Kansas City, Missouri FNB Corporation, CNB Holdings, Inc., Richmond November 20, 2000 Christiansburg, Virginia Pulaski, Virginia Heritage Bancshares, Inc., Heritage Bank of North Florida, Atlanta October 30, 2000 Orange Park, Florida Orange Park, Florida Inter-Mountain Bancorp, Inc., Chouteau County Bancshares, Inc. Minneapolis November 2, 2000 Bozeman, Montana Fort Benton, Montana First State Bank of Fort Benton, Fort Benton, Montana JDOB, Inc., First National Bank of Hinckley, Minneapolis November 17, 2000 Sandstone, Minnesota Hinckley, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 39 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Marathon Financial Corporation, Rockingham Heritage Bank, Richmond November 3, 2000 Winchester, Virginia Harrisonburg, Virginia National Penn Bancshares, Inc., Community Independent Bank, Inc., Philadelphia November 3, 2000 Boyertown, Pennsylvania Bernville, Pennsylvania Northfield MHC (Mutual Holding Northfield Savings Bank, Boston November 14, 2000 Company), Northfield, Vermont Northfield, Vermont Northfield Bancorp, Inc. (Stock Holding Company), Northfield, Vermont Peterstown Bancorp, Inc., The First National Bank of Peterstown, Richmond November 7, 2000 Peterstown, West Virginia Peterstown, West Virginia The PNC Financial Services Group, PNC Converted Bank, National Cleveland November 9, 2000 Inc., Association, Pittsburgh, Pennsylvania Pittsburgh, Pennsylvania Red Level Financial Coporation, The Peoples Bank of Red Level, Atlanta November 13, 2000 Red Level, Alabama Red Level, Alabama Regional Bankshares, Inc., Hartsville Community Bank, National Richmond November 17, 2000 Hartsville, South Carolina Association, Hartsville, South Carolina Routt County Bancorporation, Inc., First National Bank of Steamboat Kansas City October 30, 2000 Steamboat Springs, Colorado Springs, Steamboat Springs, Colorado Shore Bancshares, Inc., Talbot Bancshares, Inc., Richmond October 27, 2000 Centreville, Maryland Easton, Maryland Somerset Hills Bancorp, The Bank of the Somerset Hills, New York November 8, 2000 Bernardsville, New Jersey Bernardsville, New Jersey Stockman Financial Corporation, Marquette Bank Montana, National Minneapolis November 1, 2000 Miles City, Montana Association, Conrad, Montana Sun Bancshares, Inc., SunBank, N.A., Richmond October 31, 2000 Murrells Inlet, South Carolina Murrells Inlet, South Carolina Wilber Co., NebraskaLand Financial Services, Inc., Kansas City November 22, 2000 Wilber, Nebraska North Platte, Nebraska Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank EfFective Date BB&T Corporation, FirstSpartan Financial Corp., Richmond November 17, 2000 Winston-Salem, North Carolina Spartanburg, South Carolina Citco Community Bancshares, Inc. Twin City Bancorp, Inc., Atlanta November 2, 2000 Elizabethton, Tennessee Bristol, Tennessee Twin City Federal Savings Bank, Bristol, Tennessee Fifth Third Bancorp, Ottawa Financial Corporation, Cleveland November 10, 2000 Cincinnati, Ohio Holland, Michigan AmeriBank, Holland, Michigan First National Johnson Bancshares, Saline State Insurance Agency, L.L.C. Kansas City November 1, 2000 Inc., Wilber, Nebraska Johnson, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

40 Federal Reserve Bulletin • January 2001 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date FNB Corporation, SWVA Bancshares, Inc., Roanoke, Richmond November 10, 2000 Christiansburg, Virginia Virginia Marshall and Ilsley Corporation, M&I Community Development Chicago November 3, 2000 Milwaukee, Wisconsin Corporation, Milwaukee, Wisconsin Royal Bank of Canada, Harris Trust and Savings Bank, New York November 16, 2000 Toronto, Canada Chicago, Illinois Bank of Montreal, Montreal, Canada Wausa Banshares, Inc., KLS Insurance, Kansas City November 8, 2000 Wausa, Nebraska Bloomfield, Nebraska Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date BB&T Corporation, BankFirst Corporation, Richmond November 2, 2000 Winston-Salem, North Carolina Knoxville, Tennessee Guaranty Corporation, Bank Capital Corporation, Kansas City October 26, 2000 Denver, Colorado Strasburg, Colorado First National Bank of Strasburg, Strasburg, Colorado Collegiate Peaks Bancorporation, Strasburg, Colorado Collegiate Peaks Bank, Buena Vista, Colorado Bank Capital Mortgage, LLC, Strasburg, Colorado Sturm Financial Group, Inc., Sturm Banks of Colorado, Inc., Kansas City November 1, 2000 Denver, Colorado Denver, Colorado Sturm Banks of Wyoming, Inc., Denver, Colorado Sturm Banks of Kansas City, Inc., Denver, Colorado Community First Data Services, Inc., Cheyenne, Wyoming Whitney Holding Corporation, Prattville Financial Services Atlanta November 21, 2000 New Orleans, Louisiana Corporation, Prattville, Alabama Bank of Prattville, Prattville, Alabama Key Finance Company of Prattville, Prattville, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 41 APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date Bank of Chelsea, Bank of Commerce, Kansas City November 2, 2000 Chelsea, Oklahoma Catoosa, Oklahoma Chemical Bank and Trust Company, Chemical Bank Bay Area, Chicago November 17, 2000 Midland, Michigan Bay City, Michigan Chemical Bank Michigan, Clare, Michigan Chemical Bank Key State, Owosso, Michigan Chemical Bank Thumb Area, Caro, Michigan Colonial Bank, First Security Bank of Nevada, Atlanta November 17, 2000 Montgomery, Alabama Las Vegas, Nevada Farmers & Merchants Bank, First Union National Bank, Richmond October 27, 2000 Timberville, Virginia Charlotte, North Carolina Fifth Third Bank, Indiana, AmeriBank, Cleveland November 10, 2000 St. Joseph, Michigan Holland, Michigan Fifth Third Bank, Western Ohio, Fifth Third Bank, Central Ohio, Cleveland November 21, 2000 Dayton, Ohio Columbus, Ohio Greenwood Bank & Trust, Clemson Bank & Trust, Richmond November 3, 2000 Greenwood, South Carolina Clemson, South Carolina Community Bank & Trust, Barnwell, South Carolina TheBank, Belton, South Carolina Mid State Bank, Newberry, South Carolina M&I Marshall & Ilsley Bank, M&I Bank of Racine, Chicago November 8, 2000 Milwaukee, Wisconsin Racine, Wisconsin M&I Bank of Burlington, Burlington, Wisconsin M&I Lake Country Bank, Hartland, Wisconsin M&I First National Bank, West Bend, Wisconsin M&I Bank of Menomonee Falls, Menomonee Falls, Wisconsin M&I Northern Bank, Brookfield, Wisconsin The Provident Bank, Provident Bank of Florida, Cleveland October 30, 2000 Cincinnati, Ohio Sarasota, Florida Rockingham Heritage Bank, Marathon Merger Bank, Richmond November 3, 2000 Harrisonburg, Virginia Winchester, Virginia SouthTrust Bank, First Bank, Atlanta November 17, 2000 Birmingham, Alabama Birmingham, Alabama Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

42 Federal Reserve Bulletin • January 2001 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the eral Reserve notes. On February 16, 2000, the government Federal Reserve Banks in which the Board of Governors is not filed a motion to dismiss the action. named a party. Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed August 3, 1999). Employment discrimination action. El Bey v. United States, No. 00-5293 (D.C. Cir., filed Au- Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. gust 31, 2000). Appeal from district court order dismissing Cal., filed July 21, 1999). Action relating to impounded pro se action as lacking arguable basis in law. The govern- bank drafts. ment filed a motion for summary affirmance on October 26, Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., 2000. filed April 28, 1999). Appeal of dismissal of action chal- Trans Union LLC v. Board of Governors, et al., No. 00-CV- lenging income taxation and Federal Reserve notes. 2087 (ESH) (D.D.C., filed August 30, 2000). Action under Fraternal Order of Police v. Board of Governors, No. Administrative Procedure Act challenging a portion of inter- 1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998). agency rule regarding Privacy of Consumer Finanicial In- Declaratory judgment action challenging Board labor pracformation. tices. 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 Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) under Federal Tort Claims Act alleging violation of bank (S.D.N.Y., filed May 15, 1998). Action to freeze assets of supervision requirements. individual pending administrative adjudication of civil Individual Reference Services Group, Inc., v. Board of Gover- money penalty assessment by the Board. On May 26, 1998, nors, et al., No.OO-CV-1828 (ESH) (D.D.C., filed July 28, the court issued a preliminary injuction restraining the 2000). Action under Administrative Procedure Act chal- transfer or disposition of the individual's assets and appointlenging a portion of interagency rule regarding Privacy of ing the Federal Reserve Bank of New York as receiver for Consumer Finance Information. those assets. Following entry of the Board's order requiring Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C. restitution, 85 Federal Reserve Bulletin 142 (1998), the Cir., filed June 30, 2000). Petition for review of interagency court granted the Board's motion for judgment in the asset rule regarding Privacy of Consumer Financial Information. freeze action and authorized a judicial sale of the seized property. Board of Governors v. Interfinancial Services, Ltd., No. 00- 5233 (D.C. Cir., filed June 27, 2000). Appeal of district Board of Governors v. Pharaon, No. 98-6101 (2d Cir., filed court order enforcing administrative subpoena issued by the May 4, 1998). Appeal and cross-appeal of district court Board. On June 30, 2000, the court of appeals denied the order granting in part and denying in part the Board's appellant's motion for a stay of the district court order. On motion for summary judgment seeking prejudgment interest and a statutory surcharge in connection with a civil money December 1, 2000, the court dismissed the case on appelpenalty assessed by the Board. On February 24, 1999, the lant's motion. court granted the Board's appeal and denied the cross- Bettersworth v. Board of Governors, No. 00-50262 (5th Cir., appeal, and remanded the matter to the district court for filed April 14, 2000). Appeal of district court's dismissal of determination of prejudgment interest due to the Board. Privacy Act claims. Hunter v. Board of Governors, No. 00-CV-735 (ESH) (D.D.C., filed April 5, 2000). Action claiming retaliation for whistleblowing activity. FINAL ENFORCEMENT DECISION ISSUED BY THE Bennett v. Federal Bureau of Investigation, et al., No. H-00- BOARD OF GOVERNORS 0707 (S.D. Texas, filed March 1, 2000). Action alleging Board interference with a private investment. On October In the Matter of a Notice to Prohibit Further 20, 2000, the court dismissed the action. Participation Against, Sammie R. Golden, Former Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Employee, (D.D.C., filed February 18, 2000). Action challenging the funding of the retirement plan for certain Board employees. Union Planters National Bank, Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed Memphis, Tennessee January 14, 2000). Appeal of district court order granting summary judgment to the Board in a Freedom of Informa- Docket No. 0CC-No-EC-00-25 tion Act case. On October 26, 2000, the court of appeals affirmed the district court's order. Final Decision Toland v. Internal Revenue Service, Federal Reserve System, et al., No. CV-S-99-1769-JBR-RJJ (D. Nevada, filed De- This is an administrative proceeding pursuant to the Fedcember 29, 1999). Challenge to income taxation and Fed- eral Deposit Insurance Act ("FDI Act") in which the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 43 Office of the Comptroller of the Currency of the United B. Procedural History States of America ("OCC") seeks to prohibit the Respondent, Sammie R. Golden ("Respondent"), from further On April 6, 2000, the OCC issued a Notice initiating an participation in the affairs of any financial institution be- enforcement action that sought an order of prohibition due cause of her conduct as an employee of Union Planters to Respondent's actions in assisting a customer, for a National Bank, Memphis, Tennessee (the "Bank"). Under gratuity, in cashing twelve stolen and forged checks totalthe FDI Act, the OCC may initiate a prohibition proceed- ing over $7000. Respondent filed a timely answer, but ing against a former employee of a national bank, but the failed to provide specific responses to the factual allega- Board must make the final determination whether to issue tions in the Notice. Enforcement Counsel then moved to an order of prohibition. require Respondent to provide a more specific answer to Upon review of the administrative record, the Board the Notice. Respondent did not oppose the motion, and the issues this Final Decision adopting the Recommended De- ALJ ordered that an amended answer be filed by July 25, cision ("RD") of Administrative Law Judge Arthur L. 2000. Shipe (the "ALJ"), and orders the issuance of the attached Respondent failed to file an amended answer, and in- Order of Prohibition. stead, through counsel, withdrew her previous request for a hearing and indicated her consent to the entry of a prohibition order. Enforcement Counsel moved for entry of a default order on the basis of Respondent's failure to file a I. Statement of the Case timely amended answer. Respondent filed no reply to the motion, and in a telephonic prehearing conference appeared through counsel and consented again to the entry of A. Statutory and Regulatory Framework a default order. Counsel indicated, however, that Respondent would decline to enter into any stipulated settlement Under the FDI Act and the Board's regulations, the ALJ is of the proceeding. responsible for conducting proceedings on a notice of Following the telephonic conference, the ALJ issued a charges. 12 U.S.C.§ 1818(e)(4). The ALJ issues a recom- Recommended Decision finding Respondent in default and mended decision that is referred to the deciding agency adopting as his factual findings the allegations in the Notice. together with any exceptions to those recommendations On the basis of those findings, the ALJ recommended that an filed by the parties. The Board makes the final findings of order of prohibition be entered against the Respondent. fact, conclusions of law, and determination whether to issue an order of prohibition in the case of prohibition orders sought by the OCC. Id.; 12 C.F.R. 263.40. II. Discussion The FDI Act sets forth the substantive basis upon which a federal banking agency may issue against a bank official or employee an order of prohibition from further participa- The OCC's Rules of Practice and Procedure set forth the tion in banking. In order to issue such an order, the Board requirements of an answer and the consequences of a must make each of three findings: failure to file an answer to a Notice. Under the Rules, an (1) That the respondent engaged in identified miscon- answer "must fairly meet the substance of each allegation duct, including a violation of law or regulation, an unsafe of fact denied; general denials are not permitted." or unsound practice or a breach of fiduciary duty; 12 C.F.R. 19.19(b). Failure to file a timely answer "consti- (2) That the conduct had a specified effect, including tutes a waiver of [a respondent's] right to appear and financial loss to the institution or gain to the respondent; contest the allegations in the Notice." 12 C.F.R. 19.19(c). and If the ALJ finds that no good cause has been shown for the (3) That the respondent's conduct involved either per- failure to file, the judge "shall file ... a recommended sonal dishonesty or a willful or continuing disregard for decision containing the findings and the relief sought in the the safety or soundness of the institution. 12 U.S.C. notice." Id. An order based on a failure to file a timely § 1818(e)(l)(A)-(C). answer is deemed to be issued by consent. Id. An enforcement proceeding is initiated by the filing of a In this case, Respondent's initial answer did not comply notice of charges which is served on the respondent. Under with the requirement that an answer meet the substance of the OCC's and the Board's regulations, the respondent each allegation of fact denied. Rather, the answer conmust file an answer within 20 days of service of the notice. tained only a general denial. Following Enforcement Coun- 12 C.F.R. 19.19(a) and 263.19(a). The answer must "fairly sel's unopposed motion to require an amended answer, the meet the substance of each allegation of fact denied; gen- ALJ required Respondent to file an amended answer that eral denials are not permitted." 12 C.F.R. 19.19(b) and complied with the requirements of the OCC's Rules. Re- 263.19(b). Failure to file an answer constitutes a waiver of spondent's failure to file an amended answer constitutes a the respondent's right to contest the allegations in the default. notice, and a final order may be entered unless good cause Respondent's default requires the Board to consider the is shown for failure to file a timely answer. 12 C.F.R. allegations in the Notice as uncontested. Those allegations 19.19(c)(1) and 263.19(c)(1). meet all the criteria for entry of an order of prohibition Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44 Federal Reserve Bulletin • January 2001 under 12 U.S.C. § 1818(e). Respondent's conduct in assist- (d) From voting for a director, or from serving or ing a customer to cash over $7000 in stolen and forged acting as an institution-affiliated party as defined in checks, and in accepting a gratuity for such assistance, section 3(u) of the Act, (12 U.S.C. § 1813(u)), such meets the "misconduct" prong of the prohibition statute, as an officer, director, or employee. 12 U.S.C. § 1818(e)(1)(A), being both a violation of law and an unsafe or unsound practice. The action had the 2. This order, and each provision hereof, is and shall necessary "effect" of gain to the Respondent, as well as remain fully effective and enforceable until expressly loss to the Bank, under 12 U.S.C. § 1818(e)(1)(B). Finally, stayed, modified, terminated or suspended in writing the conduct involved the requisite culpability under by the Board. 12 U.S.C. § 1818(e)(1)(C) in that it involved personal dishonesty. The requirements for an order of prohibition having been met, the Board has determined that such an This Order shall become effective at the expiration of thirty order will issue. days after service is made. By Order of the Board of Governors, this 30th day of November, 2000 Conclusion BOARD OF GOVERNORS OF THE For these reasons, the Board orders the issuance of the FEDERAL RESERVE SYSTEM attached Order of Prohibition. By Order of the Board of Governors, this 30th day of JENNIFER J. JOHNSON November, 2000. Secretary of the Board BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM JENNIFER J. JOHNSON FINAL ENFORCEMENT ORDERS ISSUED BY THE Secretary of the Board BOARD OF GOVERNORS Order of Prohibition George J. Peterson South Elgin, Illinois WHEREAS, pursuant to section 8(e) of the Federal Deposit Insurance Act, as amended, (the "Act") (12 U.S.C. § 1818(e)), the Board of Governors of the Federal Reserve The Federal Reserve Board announced on November 7, System ("the Board") is of the opinion, for the reasons set 2000, the issuance of an Order of Prohibition against forth in the accompanying Final Decision, that a final George J. Peterson, the former chairman of the board and Order of Prohibition should issue against SAMMIE R. chief executive officer and institution-affiliated party of GOLDEN ("GOLDEN"), Foxdale Bancorp, Inc., and the Foxdale Bank, both of NOW, THEREFORE, IT IS HEREBY ORDERED, pur- South Elgin, Illinois. suant to section 8(e) of the Federal Deposit Insurance Act, as amended, (12 U.S.C. § 1818(e)), that: 1. In the absence of prior written approval by the Board, United Central Bank and by any other Federal financial institution regula- Garland, Texas tory agency where necessary pursuant to section 8(e)(7)(B) of the Act (12 U.S.C. § 1818(e)(7)(B)), Golden is hereby prohibited: The Federal Reserve Board announced on November 20, (a) From participating in the conduct of the affairs of 2000, the issuance of a Cease and Desist Order against the any bank holding company, any insured depository United Central Bank, Garland, Texas. institution or any other institution specified in subsection 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); (b) From soliciting, procuring, transferring, attempting TERMINATION OF ENFORCEMENT ACTIONS to transfer, voting or attempting to vote any proxy, consent, or authorization with respect to any voting The Federal Reserve Board announced on November 20, rights in any institution described in subsection 2000, the termination of the following enforcement action: 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); (c) From violating any voting agreement previously The Asahi Bank, Ltd., New York Branch approved by the appropriate Federal banking Cease and Desist Order dated February 13, 1997 — Termiagency; or nated October 11, 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 45 WRITTEN AGREEMENTS APPROVED BY FEDERAL Federal Reserve Bank of Cleveland; and the Ohio Division RESERVE BANKS of Financial Institutions. Guaranty Financial Corporation CSB Bancorp, Inc. Charlottesville, Virginia Millersburg, Ohio The Federal Reserve Board announced on November 20, 2000, the execution of a Written Agreement by and among The Federal Reserve Board announced on November 30, Guaranty Financial Corporation, Charlottesville, Virginia; 2000, the execution of a Written Agreement by and among the Guaranty Bank, Charlottesville, Virginia; the Federal CSB Bancorp, Inc., Millersburg, Ohio; The Commercial Reserve Bank of Richmond; and the Bureau of Financial and Savings Bank of Millersburg, Millersburg, Ohio; the Institutions of the Commonwealth of Virginia. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

46 Federal Reserve Bulletin • January 2001 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued A27 Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A3 2 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— A36 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets A22 Commercial paper and bankers dollar DOMESTIC NONFINANCIAL STATISTICS acceptances outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A42 Nonfinancial business activity A24 Stock market—Selected statistics A42 Labor force, employment, and unemployment A43 Output, capacity, and capacity utilization A44 Industrial production—Indexes and gross value Federal Finance A46 Housing and construction A25 Federal fiscal and financing operations A47 Consumer and producer prices A26 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

A2 Federal Reserve Bulletin • January 2001 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 Financial Statistics • January 2001 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999 2000 2000 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Qi Q2 Q3r June Julyr Aug.r Sept.r Oct. Reserves of depository institutions2 1 Total -3.4 1.8 -9.5 -7.1 -40.6 9.0 -9.4 -2.5 -9.5 2 Required -4.5 .1 -5.9 -7.4 -45.1 9.1 -8.0 -5.3 -10.7 3 Nonborrowed -3.0 2.4 -11.1 -8.8 -44.4 6.4 -9.8 .6 -7.9 4 Monetary base3 20.4 4.3 -3.2 2.6 2.8 3.7 .6 3.0 3.1 Concepts of money and debfi 5 Ml 4.8 .0 -1.2 -2.7 -1.7 1.1 -3.5 -6.4 3.9 6 M2 5.3r 6.3r 6.4r 4.7 3.8 3.7 7.5 8.7 4.3 7 M3 10.5r 11.3r 8.6r 8.2 7.7 8.8 9.7 8.3 4.3 8 Debt 6.3 5.6 6.2 5.2 5.6 4.8 4.9 5.9 n.a. Nontransaction components 9 In M25 5.5r 8.3r 8.8r 6.9 5.4 4.5 10.8 13.2 4.4 10 In M3 only6 24.8 24.3 13.9 17.0 17.5r 21.2 15.0 7.3 4.4 Time and savings deposits Commercial banks 11 Savings, including MMDAs 4.2 3.6 8.1 10.6 7.3 10.2 14.6 22.3 1.5 12 Small time7 7.0 9.3 13.7 10.4 17.5 8.4 9.2 3.9 2.1 13 Large time8'9 38.5 22.2 17.7 9.3 19.1 10.4 16.0 -19.3 -2.7 Thrift institutions 14 Savings, including MMDAs -3.3 -1.7 1.9 2.6 -1.9 -.5 6.6 3.7 .5 15 Small time7 5.1 7.2 3.7 11.6 9.2 12.0 16.2 9.6 9.2 16 Large time8 6.0 17.9 -,8r 19.3 23.lr 26.4 24.6 9.6 26.3 Money market mutual funds 17 Retail 11.5r 20.6r 11.7r -.6 -3.9 -7.2 6.3 12.8 10.7 18 Institution-only 22.0 23.8 13.7 33.4 15.5 51.8 28.2 32.7 6.8 Repurchase agreements and eurodollars 19 Repurchase agreements10 19.5 22.5r 10.8 7.3 29.1' 5.2 -17.9 -3.6 .0 20 Eurodollars10 10.0 41.1 15.4 3.4 -5.7 -20.5 22.8 26.8 17.5 Debt components4 21 Federal -4.4 -4.8 -7.5 -7.2 -8.4 -3.7 -7.1 -4.6 n.a. 22 Nonfederal 9.3 8.4 9.7 8.2 9.0 6.9 7.8 8.4 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with and Canada. Excludes amounts held by depository institutions, the U.S. government, money regulatory changes in reserve requirements. (See also table 1.20.) market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally by summing large time deposits, institutional money fund balances, RP liabilities, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency and eurodollars, each seasonally adjusted separately, and adding this result to seasonally component of the money stock, plus (3) (for all quarterly reporters on the "Report of adjusted M2. Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference sectors—the federal sector (U.S. government, not including government-sponsored enterbetween current vault cash and the amount applied to satisfy current reserve requirements. prises or federally related mortgage pools) and the nonfederal sectors (state and local 4. Composition of the money stock measures and debt is as follows: governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, commercial banks other than those owed to depository institutions, the U.S. government, and which are derived from the Federal Reserve Board's flow of funds accounts, are breakforeign banks and official institutions, less cash items in the process of collection and Federal adjusted (that is, discontinuities in the data have been smoothed into the series) and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of month-averaged (that is, the data have been derived by averaging adjacent month-end levels). withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail credit union share draft accounts, and demand deposits at thrift institutions. Seasonally money fund balances, each seasonally adjusted separately. adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities OCDs, each seasonally adjusted separately. (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time term) of U.S. addressees, each seasonally adjusted separately. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 7. Small time deposits—including retail RPs—are those issued in amounts of less than money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions balances at depository institutions and money market funds. Seasonally adjusted M2 is are subtracted from small time deposits. calculated by summing savings deposits, small-denomination time deposits, and retail money 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those fund balances, each seasonally adjusted separately, and adding this result to seasonally booked at international banking facilities. adjusted M1. 9. Large time deposits at commercial banks less those held by money market funds, M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) depository institutions, the U.S. government, and foreign banks and official institutions. balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 10. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures Aug. Sept. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 557,962 558,792 561,715 U.S. government securities2 2 3 B H o e u ld g h u t n d o e u r t r r ig ep h u t— rch S a y s s e t em ag r a e c e c m o e u n n t t s 3 509,9230 510,9250 510,713 0 512,218 0 509,013 0 511,153 0 511,352 0 512,0850 509,485 0 Federal agency obligations 4 5 B H o el u d g h u t n d ou er t ri r g e h p t u rchase agreements 1400 1303 13 0 0 13 0 6 13 0 0 1300 1300 1300 1300 6 7 A Re c p ce u p rc ta h n a c s e e s agreements—triparty4 12,0509 14,4207 12,875 0 11,205 0 17,286 0 11,4250 14,514 0 10,9390 14,33 0 0 Loans to depository institutions 8 Adjustment credit 24 52 120 4 135 18 35 36 299 1 1 9 0 1 S S E p e x a e te s c o n ia n d l a e l d L i c c q r r u e e d i d d i i t i t t y Facility credit 5590 0 4240 0 298 0 0 422 0 0 3840 0 3980 0 3670 0 3250 0 3010 0 12 Float 776 1,192 1,462 977 677 937 2,596 1,181 13 Other Federal Reserve assets 34,349 36,078 33,959 34,284 34,991 35,546 35,603 36,157 14 Gold stock 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 4,200 3,667 3,200 4,200 3,343 3,200 3,200 3,200 3,200 16 Treasury currency outstanding 30,444 30,687 30,975 30,657 30,708 30,759 30,811 30,911 30,972 ABSORBING RESERVE FUNDS 1 1 7 8 R C e u v rr e e r n se c y r e i p n u c r i c r h c a u s l e a ti a o g n r eements—triparty4 569,5320 570,4650 571,604 0 572,073 0 569,6490 568,3490 569,5940 572,9180 572,442 0 19 Treasury cash holdings 146 170 248 167 164 177 185 202 256 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,047 6,695 5,338 4,627 8,574 7,357 6,822 5,324 5,170 21 Foreign 87 84 95 80 86 77 118 89 108 22 Service-related balances and adjustments . . . 6,745 6,703r 6,733 6,588 6,473 6,894 6,894 6,714 6,614 23 Other 239 227 251 237 199 242 212 269 250 24 Other Federal Reserve liabilities and capital . , 15,269 15,260 15,717 15,278 15,261 15,333 15,235 15,206 15,427 25 Reserve balances with Federal Reserve Banks5 6,588 6,882r 6,639 6,259 6,899 5,369 8,877 6,151 6,834 End-of-month figures Wednesday figures Aug. Sept. Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 562,882 566,215 559,863 561,557 561,048 564,038 U.S. government securities2 2 Bought outright—System account3 510,182 511,413 508,961 510,829 510,434 512,472 511,402 512,173 510,168 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 140 130 130 130 130 130 130 130 130 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 18,525 17,320 19,440 11,840 19,8 12,170 12,375 11,540 18,843 7 Acceptances 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 30 4 29 7 3 32 12 9 Seasonal credit 567 368 219 387 392 407 345 312 290 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 12 Float 198 372 1,438 2,508 124 642 1,665 4,021 -143 13 Other Federal Reserve assets 33,240 35,774 35,999 34,161 34,591 35,728 35,128 35,829 36,355 14 Gold stock 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 4,200 3,200 3,200 4,200 3,200 3,200 3,200 3,200 3,200 16 Treasury currency outstanding 30,549 30,811 31,093 30,657 30,708 30,759 30,811 30,911 30,972 ABSORBING RESERVE FUNDS 17 Currency in circulation 571,430 568,612 572,397 571,790 569,742 569,672 571,695 574,060 572,499 1 1 8 9 T R r e e v a e s r u s r e y r c e a p s u h r c h h o a l s d e i n a g g s r eements—triparty4 . . . 16 0 6 18 0 4 289 0 1602 17 0 5 18 0 4 19 0 3 250 0 289 0 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,961 8,459 5,360 5,348 7,413 7,986 4,818 6,162 5,149 21 Foreign 79 139 115 74 66 75 74 85 87 22 Service-related balances and adjustments . . 6,788 6,894 6,830 6,588 6,474r 6,894r 6,894 6,714 6,614 23 Other 214 177 245 188 192 189 267 253 269 24 Other Federal Reserve liabilities and capital . 15,180 15,243 16,416 14,949 15,003 15,034 14,885 14,993 15,652 25 Reserve balances with Federal Reserve Banks" 8,859 10,731 9,903 6,667 12,354r 6,529r 7,278 6,677 10,315 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 ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float. under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • January 2001 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. Apr. May June July Aug. Sept.1" Oct. 1 Reserve balances with Reserve Banks2 10,664 9,026 5,263 7,081 7,661 6,460 6,582 6,875 6,829 6,785 2 Total vault cash3 44,742 44,294 60,630 46,456 44,643 44,560 45,475 45,322 44,802 45,179 3 Applied vault cash4 37,255 36,183 36,392 33,512 33,898 32,757 33,086 32,611 32,429 32,073 4 Surplus vault cash5 7,486 8,111 24,238 12,944 10,745 11,802 12,389 12,711 12,374 13,106 5 Total reserves6 47,919 45,209 41,655 40,593 41,558 39,217 39,668 39,486 39,257 38,858 6 Required reserves 46,235 43,695 40,348 39,448 40,616 38,153 38,600 38,471 38,155 37,727 7 Excess reserve balances at Reserve Banks7 1,685 1,514 1,307 1,145 943 1,064 1,068 1,014 1,102 1,131 8 Total borrowing at Reserve Banks 324 117 320 304 362 479 570 579 477 418 9 Adjustment 245 101 179 184 86 90 60 25 50 119 10 Seasonal 79 15 67 120 276 389 510 554 427 299 11 Special Liquidity Facility8 0 0 74 0 0 0 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 June 28 July 12 July 26 Aug. 9 Aug. 23 Sept. 6 Sept. 20 Oct. 4r Oct. 18 Nov. 1 1 Reserve balances with Reserve Banks2 6,413 6,524 6,388 7,267 6,603 6,911 6,578 7,131 6,502 6,984 7. Total vault cash3 45,098 45,783 44,921 46,291 45,398 44,099 44,814 45,208 45,782 44,522 3 Applied vault cash4 33,333 32,742 33,184 33,638 32,195 32,184 32,077 33,068 31,601 32,276 4 Surplus vault cash5 11,765 13,041 11,737 12,654 13,204 11,915 12,737 12,140 14,181 12,246 5 Total reserves6 39,746 39,266 39,572 40,904 38,797 39,095 38,655 40,198 38,103 39,260 6 Required reserves 38,545 38,103 38,596 39,802 37,818 38,118 37,612 38,938 37,073 38,060 7 Excess reserve balances at Reserve Banks7 1,200 1,162 975 1,102 979 977 1,043 1,260 1,030 1,200 8 Total borrowing at Reserve Banks 471 589 549 581 564 604 473 409 480 355 9 Adjustment 43 117 22 27 12 45 70 26 167 97 10 Seasonal 428 472 527 555 552 559 403 383 313 259 11 Special Liquidity Facility8 12 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 8. Borrowing at the discount window under the terms and conditions established for the those banks and thrift institutions that are not exempt from reserve requirements. Dates refer Century Date Change Special Liquidity Facility in effect from October 1, 1999, through to the maintenance periods in which the vault cash can be used to satisfy reserve require- April 7, 2000. ments. 9. Consists of borrowing at the discount window under the terms and conditions estab- 4. All vault cash held during the lagged computation period by "bound" institutions (that lished for the extended credit program to help depository institutions deal with sustained is, those whose required reserves exceed their vault cash) plus the amount of vault cash liquidity pressures. Because there is not the same need to repay such borrowing promptly as applied during the maintenance period by "nonbound" institutions (that is, those whose vault with traditional short-term adjustment credit, the money market effect of extended credit is cash exceeds their required reserves) to satisfy current reserve requirements. similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit Seasonal credit Extended credit" Federal Reserve Bank On On On 12/8/00 12/8/00 12/8/00 Effective date Boston 5/16/00 New York . .. 5/19/00 Philadelphia . 5/18/00 Cleveland . . . 5/16/00 Richmond . . . 5/16/00 Atlanta 5/17/00 Chicago 5/17/00 St. Louis 5/18/00 Minneapolis . 5/18/00 Kansas City . . 5/17/00 Dallas 5/17/00 San Francisco 5/16/00 Range of rates for adjustment credit in recent years Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank level)—All of level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1977 1982—Oct. 12 9.5-10 9.5 1994—May 17 3-3.5 3.5 13 9.5 9.5 18 3.5 3.5 1978—Jan. 9 6-6.5 6.5 Nov. 22 9-9.5 9 Aug. 16 3.5^} 4 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 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 July 2 1 8 6 101-11 1 1 1 1 0 1988—Aug. 1 9 1 6 6 -6 .5 .5 6 6 . . 5 5 19 6.00 6.00 29 10 10 In effect Dec. 8, 2000 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 14 14 4 6 6 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 6 13 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-11.5 11 Dec. 20 3.5^.5 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 30 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors: Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 1970into account rates charged by market sources of funds and ordinarily is reestablished on the 1979. first business day of each two-week reserve maintenance period; however, it is never less than In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit the discount rate applicable to adjustment credit. borrowings by institutions with deposits of $500 million or more that had borrowed in 3. May be made available to depository institutions when similar assistance is not successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was reasonably available from other sources, including special industry lenders. Such credit may in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed be provided when exceptional circumstances (including sustained deposit drains, impaired on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to access to money market funds, or sudden deterioration in loan repayment performance) or 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, practices involve only a particular institution, or to meet the needs of institutions experiencing and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the difficulties adjusting to changing market conditions over a longer period (particularly at times surcharge was changed from a calendar quarter to a moving thirteen-week period. The of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is surcharge was eliminated on Nov. 17, 1981. charged on extended-credit loans outstanding less than thirty days; however, at the discretion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • January 2001 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit Net transaction accounts 1 $0 million-$42.8 million3. 12/28/00 2 More than $42.8 million4 . 12/28/00 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. Eifective with the reserve Reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions maintenance period beginning December 28, 2000, for depository institutions that report include commercial banks, savings banks, savings and loan associations, credit unions, weekly, and with the period beginning January 18, 2001, for institutions that report quarterly, agencies and branches of foreign banks, and Edge Act corporations. the exemption was raised from $5.0 million to $5.5 million. 2. Transaction accounts include all deposits against which the account holder is permitted 4. The reserve requirement was reduced from 12 percent to 10 percent on to make withdrawals by negotiable or transferable instruments, payment orders of with- Apr. 2, 1992, for institutions that report weekly, and on Apr. 16, 1992, for institutions that drawal, or telephone or preauthorized transfers for the purpose of making payments to third report quarterly. persons or others. However, accounts subject to the rules that permit no more than six 5. For institutions that report weekly, the reserve requirement on nonpersonal time deposits preauthorized, automatic, or other transfers per month (of which no more than three may be with an original maturity of less than 1 '/2 years was reduced from 3 percent to 1 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 x/i years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 1V5 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 28, 2000, 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 18, 2001, 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 $44.3 million to $42.8 million. deposits with an original maturity of less than 1 l/i years (see note 5). Under the Garn-St Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 2000 TTyyppee ooff ttrraannssaaccttiioonn aanndd mmaattuurriittyy 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 9,147 3,550 0 0 2,294 0 0 1,825 531 231 7 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 435,907 450,835 464,218 48,459 37,141 36,386 44,008 33.718 42,797 37,006 4 For new bills 435,907 450,835 464,218 48,459 37,141 36,386 44,008 33,718 42,797 37,006 5 Redemptions 0 2,000 0 198 779 2,297 4,188 4,902 3,438 3,898 Others within one year 6 Gross purchases 5,549 6,297 11,895 0 0 164 1,875 1,284 2,770 716 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 41,716 46,062 50,590 5,034 0 13,063 4,672 5,152 7,040 0 9 Exchanges -27,499 -49,434 -53,315 -3,515 0 -12,633 -3,109 -3,333 -7,396 0 10 Redemptions 1,996 2,676 1,429 0 568 0 0 367 887 0 One to five years 11 Gross purchases 20,080 12,901 19,731 740 1,723 890 706 2,259 2,508 2,385 1? Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts —37,987 -37,777 -44,032 -5,034 0 -10,334 -4,672 -5,152 -3,439 0 14 Exchanges 20,274 37,154 42,604 3,515 0 10,063 3,109 3,333 5,418 0 Five to ten years 15 Gross purchases 3,449 2,294 4,303 489 930 0 0 0 L,914R 448 If) Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -1,954 -5,908 -5,841 0 0 -1,552 0 0 -3,601 0 18 Exchanges 5,215 7,439 7,583 0 0 2,570 0 0 1,254 0 More than ten years 19 Gross purchases 5,897 4,884 9,428 330 0 528 1,151 500 727 547 7.0 Gross sales 0 0 0 0 0 0 0 0 0 0 7.1 Maturity shifts -1,775 -2,377 -717 0 0 -1,177 0 0 0 0 22 Exchanges 2,360 4,842 3,139 0 0 0 0 0 724 0 All maturities 7.3 Gross purchases 44,122 29,926 45,357 1,559 4,947 1,582 3,732 5,868 8,450R 4,326 74 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 198 1,347 2,297 4,188 5,269 4,325 3,898 Matched transactions 76 Gross purchases 3,591,210 4,430,457 4,413,430 401,404 336,103 357,355 368,396 344,935 381,349 335,321 27 Gross sales 3,593,530 4,434,358 4,431,685 401,841 334,751 356,640 369,739 344,384 381,475 334,530 Repurchase agreements 28 Gross purchases 810,485 512,671 281,599 0 0 0 0 00 0 00 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 5,999 923 4,952 -1 -1,800 1,150 3,999R 1,219 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 10 0 0 0 0 10 Repurchase agreements 34 Gross purchases 160,409 284,316 360,069 0 0 0 00 00 0 00 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 -10 0 0 0 0 -10 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 0 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 0 304,989 61,230 79,585 107,375 70,850 6666,,448855 47,265 6666,,008800 40 Gross sales 0 0 164,349 62,253 78,425 105,885 70,315 75,925 46,230 67,285 41 Net change in triparty obligations 0 0 140,640 -1,023 1,160 1,490 535 -9,440 1,035 -1,205 42 Total net change in System Open Market Account. . . 40,522 27,538 135,780 -100 6,102 1,489 -1,265 -8,290 5,034r 4 1. Sales, redemptions, and negative figures reduce holdings of the System Open Market 2. Transactions exclude changes in compensation for the effects of inflation on the principal Account; all other figures increase such holdings. of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • January 2001 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2000 2000 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Aug. 31 Sept. 30 Oct. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 2 Special drawing rights certificate account 3,200 3,200 3,200 3,200 3,200 4,200 3,200 3,200 3 790 826 823 824 856 760 831 887 Loans 4 To depository institutions 414 348 344 303 282 597 372 248 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 12,170 12,375 11,540 18,843 9,995 18,525 17,320 19,440 Federal agency obligations3 8 Bought outright 130 130 130 130 130 140 130 113300 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 512,472 511,402 512,173 510,168 511,038 510,182 511,413 508,961 11 Bought outright4 512,472 511,402 512,173 510,168 511,038 510,182 511,413 508,961 17 Bills 185,416 184,344 185,114 182,609 182,744 187,232 184,356 180,971 13 Notes 235,724 235,725 235,726 235,727 236,389 232,770 235,725 235,603 14 Bonds 91,332 91,332 91,333 91,833 91,905 90,180 91,332 92,387 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 525,186 524,255 524,187 529,444 521,445 529,444 529,235 528,779 17 Items in process of collection 7,072 10,262 14,877 8,495 9,168 5,391 5,424 10,945 18 Bank premises 1,425 1,430 1,432 1,433 1,433 1,421 1,430 1,433 Other assets 19 Denominated in foreign currencies5 15,777 15,647 15,653 15,659 15,665 15,088 15,642 15,297 20 All other6 18,626 18,490 18,874 19,255 19,640 16,755 18,817 19,616 21 Total assets 583,123 585,155 590,093 589,355 582,454 584,103 585,625 591,203 LIABILITIES 22 Federal Reserve notes 539,886 541,904 544,222 542,639 541,875 541,806 538,816 542,479 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 21,276 20,227 20,050 22,976 17,380 21,855 26,399 22,793 25 Depository institutions 13,027 15,068 13,549 17,471 12,860 15,601 17,624 17,074 26 U.S. Treasury—General account 7,986 4,818 6,162 5,149 4,207 5,961 8,459 5,360 27 Foreign—Official accounts 75 74 85 87 71 79 139 115 28 Other 189 267 253 269 241 214 177 245 29 Deferred credit items 6,927 8,139 10,827 8,088 6,945 5,263 5,168 9,514 30 Other liabilities and accrued dividends7 4,338 4,323 4,287 4,295 4,293 4,585 4,447 4,325 31 Total liabilities 572,427 574,594 579,386 577,998 570,493 573,508 574,830 579,111 CAPITAL ACCOUNTS V. Capital paid in 6,949 6,943 6,945 6,982 6,981 6,856 6,933 6,986 33 Surplus 2,679 2,679 2,679 2,679 2,679 2,679 2,679 2,679 34 Other capital accounts 1,067 939 1,083 1,697 2,300 1,060 1,184 2,426 35 Total liabilities and capital accounts 583,123 585,155 590,093 589,355 582,454 584,103 585,625 591,203 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) 765,043 764,063 763,100 762,123 760,932 766,982 764,756 760,004 38 LESS: Held by Federal Reserve Banks 225,157 222,159 218,878 219,484 219,057 225,175 225,940 217,525 39 Federal Reserve notes, net 539,886 541,904 544,222 542,639 541,875 541,806 538,816 542,479 Collateral held against notes, net 40 Gold certificate account 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 41 Special drawing rights certificate account 3,200 3,200 3,200 3,200 3,200 4,200 3,200 3,200 4? Other eligible assets 869 3,751 6,133 0 6,466 0 0 0 43 U.S. Treasury and agency securities 524,772 523,907 523,843 528,393 521,163 526,560 524,570 528,233 44 Total collateral 539,886 541,904 544,222 542,639 541,875 541,806 538,816 542,479 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 Type of holding and maturity 2000 2000 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 Aug. 31 Sept. 30 Oct. 31 1 Total loans 415 348 344 303 282 597 372 248 2 Within fifteen days1 365 53 100 287 241 398 221 152 3. Sixteen days to ninety days 49 295 245 16 41 200 151 96 4. 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 512,472 511,402 512,173 510,168 511,038 510,182 511,413 508,961 6 Within fifteen days1 19,796 14,514 19,633 17,280 19,440 4,891 8,978 12,494 7 Sixteen days to ninety days 107,557 112,776 112,647 111,121 108,798 111,192 116,776 109,123 8 Ninety-one days to one year 128,442 128,841 124,621 125,994 126,292 140,813 128,981 131,002 9 One year to five years 131,987 130,581 130,581 130,581 131,315 129,601 131,987 130,667 10 Five years to ten years 53,527 53,528 53,529 53,529 53,530 53,072 53,527 53,530 11 More than ten years 71,162 71,163 71,163 71,663 71,663 70,613 71,162 72,145 12 Total federal agency obligations 130 130 130 130 130 140 130 130 13 Within fifteen days' 0 0 0 0 0 0 0 0 14 Sixteen days to ninety days 0 0 0 0 0 10 0 0 15 Ninety-one days to one year 0 0 0 0 0 0 0 0 16 One year to five years 30 30 30 30 30 10 30 30 17 Five years to ten years 100 100 100 100 100 120 100 100 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 • January 2001 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2000 11999966 11999977 11999988 11999999 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Mar. Apr. May June July Aug. Sept.r Oct. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 50.17 46.87 45.19 41.74 40.46 40.93 41.36 39.96 40.26 39.94 39.86 39.54 22 NNoonnbboorrrroowweedd rreesseerrvveess44 50.02 46.54 45.07 41.42 40.28 40.63 41.00 39.48 39.69 39.37 39.38 39.13 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt55 50.02 46.54 45.07 41.42 40.28 40.63 41.00 39.48 39.69 39.37 39.38 39.13 44 RReeqquuiirreedd rreesseerrvveess 48.76 45.18 43.68 40.44 39.26 39.78 40.41 38.89 39.19 38.93 38.76 38.41 55 MMoonneettaarryy bbaassee66 451.62 479.17 512.75 591.18 571.44 573.08 574.29 575.63 577.41 577.70r 579.15 580.67 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.31 41.89 39.76 40.61 41.58 39.24 39.70 39.52 39.29 38.90 7 Nonborrowed reserves 51.30 47.69 45.19 41.57 39.59 40.31 41.22 38.76 39.13 38.94 38.82 38.48 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.19 41.57 39.59 40.31 41.22 38.76 39.13 38.94 38.82 38.48 9 Required reserves8 50.04 46.33 43.80 40.58 38.56 39.47 40.64 38.18 38.63 38.50 38.19 37.77 10 Monetary base9 456.63 484.98 518.27 600.63 570.24 571.51 573.26 574.55 577.19r 576.60r 576.69 578.08 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 51.17 47.92 45.21 41.66 39.75 40.59 41.56 39.22 39.67 39.49 39.26 38.86 12 Nonborrowed reserves 51.02 47.60 45.09 41.33 39.57 40.29 41.20 38.74 39.10 38.91 38.78 38.44 13 Nonborrowed reserves plus extended credit5 51.02 47.60 45.09 41.33 39.57 40.29 41.20 38.74 39.10 38.91 38.78 38.44 14 Required reserves 49.76 46.24 43.70 40.35 38.55 39.45 40.62 38.15 38.60 38.47 38.16 37.73 15 Monetary base12 463.40 491.79 525.06 607.94 577.13 578.33 580.09 581.44 583.99r 583.34r 583.38 584.81 16 Excess reserves13 1.42 1.69 1.51 1.31 1.21 1.15 .94 1.06 1.07 1.01 1.10 1.13 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .18 .30 .36 .48 .57 .58 .48 .42 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly 8. To adjust required reserves for discontinuities that are due to regulatory changes in statistical release. Historical data starting in 1959 and estimates of the effect on required reserve requirements, a multiplicative procedure is used to estimate what required reserves reserves of changes in reserve requirements are available from the Money and Reserves would have been in past periods had current reserve requirements been in effect. Break- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve adjusted required reserves include required reserves against transactions deposits and nonper- System, Washington, DC 20551. sonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus changes in reserve requirements. (See also table 1.10.) (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted required reserves (line 4) plus excess reserves (line 16). those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, difference between current vault cash and the amount applied to satisfy current reserve break-adjusted total reserves (line 1) less total borrowings of depository institutions from the requirements. Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no 5. Extended credit consists of borrowing at the discount window under the terms and adjustments to eliminate the effects of discontinuities associated with regulatory changes in conditions established for the extended credit program to help depository institutions deal reserve requirements. with sustained liquidity pressures. Because there is not the same need to repay such 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve borrowing promptly as with traditional short-term adjustment credit, the money market effect requirements. of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for component of the money stock, plus (3) (for all quarterly reporters on the "Report of all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve difference between current vault cash and the amount applied to satisfy current reserve requirements. Since February 1984, currency and vault cash figures have been measured over requirements. the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). reserves (line 16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK AND DEBT MEASURES1 Billions of dollars, averages of daily figures 2000 IItteemm D 19 e 9 c 6 . 1 D 9 e 9 c 7 . D 19 e 9 c 8 . D 19 e 9 c 9 . Julyr Aug/ Sept.r Oct. Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,122.9 1,104.4 1,101.2 1,095.3 1,098.9 2 M2 3,821.6 4,040.2 4,395.0 4,659.8r 4,806.1 4,836.2 4,871.4 4,888.8 3 M3 4,952.4 5,403.2 5,996.7 6,491.1r 6,807.0 6,862.1 6,909.7 6,934.5 4 Debt 14,430.8 15,223.1 16,276.4 17,377.2 17,948.4 18,021.9 18,110.8 n.a. MI components 5 Currency3 394.3 424.8 459.5 515.5 522.3 523.2 524.1 525.9 6 Travelers checks4 8.3 8.1 8.2 8.3 9.3 9.2 8.8 8.4 7 Demand deposits5 402.3 395.3 379.3 355.2 332.9 328.2 324.1 324.6 8 Other checkable deposits6 276.1 245.8 250.3 244.0 239.9 240.6 238.3 240.0 Nontransaction components 9 In M27 2,740.5 2,966.3 3,297.6 3,536.9r 3,701.7 3,735.0 3,776.1 3,789.8 10 In M3 only8 1,130.8 1,363.0 1,601.7 l,831.3r 2,000.9 2,025.9 2,038.3 2,045.7 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.7 1,342.0 1,358.3 1,383.5 1,385.2 12 Small time deposits9 593.3 625.4 626.1 634.7 680.0 685.2 687.4 688.6 13 Large time deposits10, " 413.9 488.3 539.3 614.1 661.7 670.5 659.7 658.2 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.7 452.3 454.8 456.2 456.4 15 Small time deposits9 353.6 342.8 325.6 320.6 333.1 337.6 340.3 342.9 16 Large time deposits10 78.3 85.6 88.9 91.5 97.5 99.5 100.3 102.5 Money market mutual funds 17 Retail 523.0 601.1 747.4 847.3r 894.3 899.0 908.6 916.7 18 Institution-only 313.3 382.4 520.1 610.1 688.7 704.9 724.1 728.2 Repurchase agreements and eurodollars 19 Repurchase agreements'2 210.7 256.0 300.8 344.3r 368.6 363.1 362.0 362.0 20 Eurodollars12 114.6 150.7 152.6 171.3 184.4 187.9 192.1 194.9 Debt components 21 Federal debt 3,781.3 3,800.6 3,751.2 3,660.2 3,510.4 3,489.5 3,476.1 n.a. 22 Nonfederal debt 10,649.5 11,422.5 12,525.2 13,717.0 14,438.0 14,532.4 14,634.7 n.a. Not seasonally adjusted Measures2 23 Ml 1,105.1 1,097.7 1,121.3 1,147.4 1,103.2 1,095.0 1,087.9 1,090.9 24 M2 3,843.8 4,063.4 4,420.2 4,688.0r 4,790.2 4,822.9 4,857.3 4,870.5 25 M3 4,973.4 5,427.2 6,026.3 6,526.0r 6,766.8 6,834.1 6,877.7 6,906.1 26 Debt 14,428.4 15,218.5 16,271.2r 17,372.6 17,876.4 17,958.6 18,051.9 n.a. Ml components 27 Currency3 397.9 428.9 464.1 521.2 522.4 521.8 522.6 524.2 28 Travelers checks4 8.6 8.3 8.4 8.4 8.9 8.9 8.7 8.4 29 Demand deposits5 419.9 412.4 395.9 371.2 333.6 326.2 320.9 321.1 30 Other checkable deposits6 278.8 248.2 252.8 246.7 238.3 238.0 235.8 237.3 Nontransaction components 31 In M27 2,738.7 2,965.7 3,298.9 33,,554400..66rr 3,687.0 3,728.0 3,769.4 3,779.6 32 In M3 only8 1,129.6 1,363.8 1,606.1 l,838.0r 1,976.5 2,011.1 2,020.4 2,035.6 Commercial banks 33 Savings deposits, including MMDAs 903.3 1,020.4 1,186.0 1,288.5 1,343.8 1,356.0 1,380.5 1,379.4 34 Small time deposits9 592.7 625.3 626.5 635.5 677.7 683.2 686.8 689.8 35 Large time deposits10' 11 413.2 487.2 537.8 612.2 662.4 668.6 662.7 662.8 Thrift institutions 36 Savings deposits, including MMDAs 366.3 376.5 414.2 449.7 452.9 454.1 455.3 454.5 37 Small time deposits9 353.2 342.8 325.8 321.0 332.0 336.6 340.0 343.6 38 Large time deposits10 78.1 85.4 88.6 91.2 97.6 99.3 100.8 103.2 Money market mutual funds 39 Retail 523.0 600.7 746.3 846.0r 880.5 898.1 906.9 912.3 40 Institution-only 316.9 388.4 529.7 621.7 668.5 693.6 705.6 718.5 Repurchase agreements and eurodollars 41 Repurchase agreements12 205.7 250.5 295.4 339.5r 365.9 362.8 360.9 358.3 42 Eurodollars12 115.7 152.3 154.5 173.4 182.2 186.8 190.4 192.9 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,663.1 3,448.3 3,437.7 3,426.5 n.a. 44 Nonfederal debt 10,640.4 11,412.7 12,516.3 13,709.5 14,428.1 14,520.9 14,625.4 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • January 2001 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly prises or federally related mortgage pools) and the nonfederal sectors (state and local statistical release. Historical data starting in 1959 are available from the Money and Reserves governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) Eurodollars (overnight and seasonally adjusted Ml. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are liabilities (overnight and term) issued by all depository institutions, and (4) Eurodollars subtracted from small time deposits. (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those at all banking offices in the United Kingdom and Canada. Excludes amounts held by booked at international banking facilities. depository institutions, the U.S. government, money market funds, and foreign banks and 11. Large time deposits at commercial banks less those held by money market funds, official institutions. Seasonally adjusted M3 is calculated by summing large time deposits, depository institutions, the U.S. government, and foreign banks and official institutions. institutional money fund balances, RP liabilities, and Eurodollars, each seasonally adjusted 12. Includes both overnight and term. separately, and adding this result to seasonally adjusted M2. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors—the federal sector (U.S. government, not including government-sponsored enter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Oct. Apr/ May' June' July1" Aug/ Sept/ Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Seasonally adjusted Assets 1 Bank credit 4,634.2 4,935.3 5,001.8 5,032.2 5,068.3 5,111.3 5,160.8 5,135.2 5,138.5 5,130.9 5,125.7 5,140.7 2 Securities in bank credit 1,250.8 1,292.7 1,312.2 1,309.7 1,314.3 1,317.9 1,328.5 1,306.5 1,316.9 1,310.9 1,303.9 1,302.8 3 U.S. government securities 814. lr 814.2 815.4 817.0 819.1 812.5 807.2 792.3 800.3 798.9 789.5 787.5 4 Other securities 436.7r 478.4 496.8 492.6 495.1 505.4 521.3 514.2 516.6 512.0 514.4 515.3 5 Loans and leases in bank credit2 . . . 3,383.4 3,642.6 3,689.7 3,722.5 3,754.0 3,793.4 3,832.3 3,828.7 3,821.6 3,820.0 3,821.8 3,837.9 6 Commercial and industrial 980.7 1,037.1 1,056.3 1,063.9 1,069.3 1,077.7 1,077.7 1,076.9 1,074.7 1,076.1 1,075.3 1,080.5 7 Real estate 1,422.0 1,556.5 1,580.4 1,596.4 1,611.2 1,620.9 1,633.0 1,631.4 1,629.2 1,631.4 1,630.5 1,629.3 8 Revolving home equity 100.0 112.3 114.8 115.4 116.7 118.0 120.3 123.6 123.0 123.1 123.5 123.8 9 Other 1,322.0 1,444.2 1,465.7 1,481.0 1,494.5 1,502.9 1,512.7 1,507.8 1,506.2 1,508.2 1,507.0 1,505.5 10 Consumer 481.4 506.6 509.1 515.4 518.9 527.6 530.9 530.1 528.8 528.9 531.1 530.3 11 Security3 109.7 144.0 145.0 149.6 151.8 159.6 183.3 181.1 180.9 176.6 176.7 187.6 12 Other loans and leases 389.5 398.4 398.8 397.2 402.8 407.6 407.3 409.1 408.1 407.1 408.2 410.2 13 Interbank loans 225.7 222.0 227.8 228.9 242.7 248.7 241.7 252.1 242.7 242.8 253.3 260.8 14 Cash assets4 270.5 281.3 274.3 269.1 269.4 269.8 267.9 266.6 263.7 276.1 256.0 266.7 15 Other assets5 361.9r 367.6 377.0 379.2 398.0 399.1 398.2 411.4 409.7 413.9 411.0 413.2 16 Total assets6 5,433.0" 5,746.4 5,820.7 5,848.9 5,916.6 5,966.1 6,005.4 6,002.6 5,992.0 6,001.0 5,9833 6,018.7 Liabilities 17 Deposits 3,448.8 3,626.2 3,631.6 3,660.1 3,717.1 3,744.5 3,762.2 3,777.7 3,772.0 3,792.0 3,754.9 3,779.7 18 Transaction 631.2 626.1 629.7 617.3 612.6 618.5 611.0 614.9 595.7 618.8 603.2 644.5 19 Nontransaction 2,817.6 3,000.1 3,001.9 3,042.7 3,104.6 3,126.0 3,151.2 3,162.8 3,176.3 3,173.2 3,151.7 3,135.2 20 Large time 772.3 870.6 876.2 893.1 914.1 923.3 913.1 908.5 907.9 907.3 909.8 907.7 21 Other 2,045.3 2,129.4 2,125.7 2,149.6 2,190.4 2,202.7 2,238.1 2,254.3 2,268.4 2,265.9 2,242.0 2,227.5 22 Borrowings 1,050.8 1,186.8 1,200.7 1,202.1 1,220.1 1,226.2 1,220.4 1,211.2 1,203.5 1,210.8 1,214.9 1,205.1 23 From banks in the U.S 348.4 377.4 383.8 375.9 387.5 386.9 372.9 369.0 369.2 368.7 368.4 364.6 24 From others 702.4 809.4 816.9 826.3 832.6 839.3 847.5 842.2 834.3 842.1 846.5 840.4 25 Net due to related foreign offices 222.8 226.3 253.8 262.8 261.4 269.9 268.9 251.7 274.4 262.4 251.9 235.0 26 Other liabilities 290.7r 292.4 312.9 304.7 297.4 313.6 333.3 342.1 331.9 327.7 341.3 352.4 27 Total liabilities 5,013.2r 5,331.7 5,399.1 5,429.7 5,496.0 5,554.2 5,584.7 5,582.6 5,581.8 5,593.0 5,563.0 5,572.1 28 Residual (assets less liabilities)7 419.8r 414.7 421.6 419.2 420.6 411.9 420.7 420.0 410.2 408.0 420.3 446.6 Not seasonally adjusted Assets 29 Bank credit 4,643.4 4,935.5 4,993.4 5,015.0 5,036.7 5,082.4 5,147.0 5,149.0 5,139.7 5,134.2 5,141.2 5,150.9 30 Securities in bank credit l,253.6r 1,294.4 1,309.6 1,299.0 1,296.8 1,305.3 1,323.2 1,310.9 1,314.8 1,310.8 1,306.4 1,308.3 31 U.S. government securities 809.2r 822.9 820.7 816.3 810.7 803.6 799.2 787.2 792.3 790.8 783.3 783.2 32 Other securities 444.4 471.5 488.8 482.7 486.1 501.7 524.1 523.7 522.4 520.0 523.2 525.0 33 Loans and leases in bank credit2 . . . 3,389.8 3,641.1 3,683.9 3,716.0 3,739.9 3,777.1 3,823.8 3,838.1 3,824.9 3,823.4 3,834.8 3,842.6 34 Commercial and industrial 981.4 1,044.2 1,059.2 1,063.3 1,064.5 1,067.3 1,073.6 1,077.7 1,076.1 1,074.0 1,076.2 1,079.5 35 Real estate 1,426.8 1,552.1 1,577.8 1,593.0 1,607.4 1,620.9 1,633.4 1,637.1 1,632.3 1,637.5 1,636.3 1,634.3 36 Revolving home equity 100.5 111.5 114.4 115.4 116.8 118.2 121.0 124.1 123.6 123.7 124.1 124.3 37 Other 1,326.3 1,440.6 1,463.5 1,477.6 1,490.6 1,502.8 1,512.4 1,512.9 1,508.7 1,513.8 1,512.2 1,510.0 38 Consumer 479.0 505.5 508.7 513.5 515.4 526.5 531.7 527.8 526.1 525.6 528.8 528.9 39 Credit cards and related plans. . n.a. n.a. n.a. n.a. 195.5 203.4 206.6 202.5 201.2 201.0 203.4 203.3 40 Other n.a. n.a. n.a. n.a. 319.9 323.1 325.0 325.4 324.9 324.6 325.4 325.7 41 Security3 112.2 144.5 143.4 149.5 148.8 154.3 176.0 185.3 179.2 178.5 183.1 192.2 42 Other loans and leases 390.5 394.9 394.6 396.7 403.7 408.0 409.0 410.2 411.2 407.8 410.4 407.7 43 Interbank loans 219.7 228.4 227.7 228.6 238.8 238.7 235.3 245.9 239.2 236.5 246.1 247.5 44 Cash assets4 271.7 278.5 272.1 265.2 260.1 257.5 263.5 267.6 255.4 286.7 263.6 252.1 45 Other assets5 355.3' 371.1 380.1 380.7 397.4 397.3 396.7 404.2 408.2 408.5 401.8 398.0 46 Total assets6 5,431.0r 5,753.9 5,813.1 5,828.9 5,8713 54)13.1 5,9793 6,004.1 5,979.7 6,0033 5,990.1 5,985.9 Liabilities 47 Deposits 3,441.2 3,644.2 3,617.0 3,648.2 3,692.6 3,712.3 3,746.1 3,770.7 3,773.0 3,795.3 3,752.8 3,737.2 48 Transaction 622.8 634.7 620.4 616.3 606.1 602.8 604.7 606.8 594.8 617.6 601.9 609.2 49 Nontransaction 2,818.5 3,009.4 2,996.6 3,031.9 3,086.5 3,109.5 3,141.5 3,163.9 3,178.2 3,177.6 3,150.9 3,127.9 50 Large time 770.6 870.2 872.5 882.3 897.5 906.5 902.3 905.8 901.1 902.3 904.3 908.1 51 Other 2,047.9 2,139.3 2,124.1 2,149.6 2,189.0 2,203.0 2,239.2 2,258.1 2,277.1 2,275.4 2,246.6 2,219.8 52 Borrowings 1,050.4 1,185.9 1,210.2 1,205.1 1,206.9 1,198.7 1,215.7 1,212.6 1,194.7 1,200.3 1,217.1 1,213.7 53 From banks in the U.S 345.4 378.9 384.4 376.7 384.4 382.5 372.4 367.9 365.5 365.4 367.1 365.0 54 From others 705.0 806.9 825.7 828.3 822.5 816.2 843.3 844.7 829.2 834.9 850.0 848.6 55 Net due to related foreign offices .... 224.0 215.6 254.3 253.2 253.0 267.2 263.8 252.8 257.8 257.0 250.1 253.6 56 Other liabilities 289.9r 291.2 311.4 303.0 295.0 313.2 332.6 341.1 330.2 326.4 340.0 351.8 57 Total liabilities 5,005.5r 5,336.8 5392.8 5,409.4 5,447.5 5,4913 5,5583 5,577.2 5,555.7 5,578.9 5,560.0 5,556.2 58 Residual (assets less liabilities)7 425.5r 417.1 420.3 419.5 423.8 421.8 421.0 426.8 424.0 424.4 430.2 429.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • January 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Oct. Apr.r Mayr Juner July' Aug.1" Sept.1" Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Seasonally adjusted Assets 1 Bank credit 4,109.1 4,364.5 4,415.5 4,453.1 4,488.8 4,526.1 4,568.2 4,555.4 4,560.8 4,555.8 4,553.2 4,556.6 7 Securities in bank credit l,058.5r 1,087.1 1,098.5 1,101.0 1,105.9 1,108.6 1,121.1 1,115.5 1,121.4 1,121.0 1,115.6 1,111.7 U.S. government securities 731.2r 734.6 735.7 738.2 739.4 732.6 729.8 722.5 727.2 726.6 721.4 719.6 4 Other securities 327.3r 352.5 362.8 362.9 366.5 376.1 391.3 393.0 394.2 394.4 394.2 392.1 Loans and leases in bank credit2 3,050.6 3,277.4 3,317.0 3,352.1 3,382.9 3,417.5 3,447.1 3,440.0 3,439.4 3,434.8 3,437.6 3,444.9 6 Commercial and industrial 785.4 838.0 851.4 858.8 865.8 871.9 874.0 875.8 874.0 875.4 874.1 878.6 7 Real estate 1,404.3 1,538.1 1,561.7 1,577.3 1,592.3 1,602.1 1,613.7 1,612.6 1,610.0 1,612.4 1,612.0 1,610.9 8 Revolving home equity 100.0 112.3 114.8 115.4 116.7 118.0 120.3 123.6 123.0 123.1 123.5 123.8 9 Other 1,304.3 1,425.8 1,446.9 1,462.0 1,475.6 1,484.1 1,493.4 1,489.1 1,487.0 1,489.3 1,488.4 1,487.1 10 481.4 506.6 509.1 515.4 518.9 527.6 530.9 530.1 528.8 528.9 531.1 530.3 11 Security3 54.5 66.0 64.0 68.6 70.0 77.4 88.5 78.4 84.2 77.4 77.3 80.9 17 Other loans and leases 324.9 328.8 330.8 332.0 335.9 338.5 340.0 343.0 342.4 340.7 343.1 344.1 n Interbank loans 200.3 192.7 196.0 200.3 216.5 224.5 216.0 223.1 217.0 215.8 223.9 229.7 14 Cash assets4 224.6 233.9 230.3 224.5 224.5 225.5 223.2 224.3 219.7 232.1 214.0 224.8 15 Other assets5 329.6 328.3 336.7 336.5 355.9 357.8 358.4 375.0 372.8 376.8 374.6 376.1 16 Total assets6 4,804.9 5,060.0 5,118.6 5,154.3 5,224.2 5,271.5 5,303.1 5,315.4 5,307.9 5,318.1 5,303.5 5,324.8 Liabilities 17 Deposits 3,113.5 3,238.6 3,249.6 3,277.6 3,330.5 3,352.9 3,377.7 3,397.2 3,392.4 3,411.5 3,374.0 3,400.0 18 Transaction 620.6 615.2 618.5 605.9 601.2 607.6 601.2 604.4 585.3 608.1 593.2 633.5 19 Nontransaction 2,493.0 2,623.4 2,631.1 2,671.7 2,729.3 2,745.3 2,776.5 2,792.8 2,807.1 2,803.4 2,780.8 2,766.6 70 Large time 450.5 497.0 508.1 523.1 541.4 545.3 541.3 541.4 541.5 540.8 541.7 541.7 71 Other 2,042.5 2,126.4 2,123.0 2,148.6 2,187.9 2,200.0 2,235.2 2,251.4 2,265.6 2,262.5 2,239.0 2,224.9 77 Borrowings 872.9 987.2 996.3 996.8 1,014.4 1,024.2 1,002.9 989.4 990.5 993.8 993.8 984.8 73 From banks in the U.S 326.6 356.5 365.9 356.9 366.7 370.0 353.7 350.2 352.0 350.9 350.1 346.2 74 546.3 630.6 630.4 639.9 647.7 654.1 649.2 639.2 638.5 642.9 643.7 638.7 75 Net due to related foreign offices .... 165.4 211.1 232.5 243.3 243.6 246.4 244.8 235.2 249.7 245.4 240.7 217.7 26 Other liabilities 225.3 218.6 234.5 233.3 228.7 245.7 261.8 269.7 264.6 258.7 268.7 277.7 27 Total liabilities 4,377.1 4,655.5 4,712.9 4,751.0 4,817.2 4,869.1 4,887.2 4,891.4 4,897.2 4,909.4 4,877.2 4,880.3 28 Residual (assets less liabilities)7 427.8 404.5 405.7 403.2 407.0 402.4 415.9 424.0 410.7 408.7 426.3 444.6 Not seasonally adjusted Assets 29 Bank credit 4,111.3 4,371.2 4,415.7 4,445.8 4,468.0 4,507.0 4,555.2 4,560.5 4,557.2 4,554.2 4,560.2 4,558.6 30 Securities in bank credit 1,055.7 1,092.6 1,099.1 1,096.6 1,095.4 1,101.7 1,115.7 1,112.4 1,116.6 1,115.5 1,111.3 1,109.0 31 U.S. government securities 126.1' 742.5 740.0 737.4 732.0 725.3 723.8 717.8 721.2 719.8 715.5 715.2 32 Other securities 329.0r 350.0 359.1 359.2 363.4 376.4 391.8 394.6 395.4 395.8 395.8 393.8 33 Loans and leases in bank credit2 3,055.6 3,278.6 3,316.6 3,349.2 3,372.6 3,405.3 3,439.5 3,448.1 3,440.6 3,438.7 3,448.9 3,449.6 34 Commercial and industrial 784.8 846.8 858.5 861.4 863.5 864.2 870.0 875.2 873.7 873.1 874.0 876.5 35 Real estate 1,408.8 1,533.8 1,559.2 1,574.1 1,588.7 1,602.3 1,614.3 1,618.0 1,613.0 1,618.2 1,617.4 1,615.5 36 Revolving home equity 100.5 111.5 114.4 115.4 116.8 118.2 121.0 124.1 123.6 123.7 124.1 124.3 37 Other 1,308.3 1,422.3 1,444.8 1,458.7 1,471.9 1,484.2 1,493.3 1,493.9 1,489.4 1,494.6 1,493.3 1,491.2 38 Consumer 479.0 505.5 508.7 513.5 515.4 526.5 531.7 527.8 526.1 525.6 528.8 528.9 39 Credit cards and related plans. . n.a. n.a. n.a. n.a. 195.5 203.4 206.6 202.5 201.2 201.0 203.4 203.3 40 Other n.a. n.a, n.a. n.a. 319.9 323.1 325.0 325.4 324.9 324.6 325.4 325.7 41 Security3 57.4 66.6 62.6 68.1 67.3 72.0 81.3 83.2 82.5 79.9 84.0 87.2 42 Other loans and leases 325.7 326.0 327.5 332.0 337.6 340.4 342.2 343.9 345.3 341.9 344.6 341.5 43 Interbank loans 194.4 199.0 195.9 200.0 212.6 214.5 209.6 216.9 213.6 209.5 216.7 216.4 44 Cash assets4 225.0 233.2 229.3 221.4 216.8 214.7 219.8 224.4 211.4 242.9 220.9 208.8 45 Other assets5 323.7 332.6 340.4 340.2 357.2 356.7 357.6 368.5 372.1 372.0 366.0 362.1 46 Total assets6 4,795.6 5,076.7 5,121.4 5,147.1 5,193.3 5,230.5 5,279.3 5,308.0 5,291.7 5,316.3 5,301.6 5,283.6 Liabilities 47 Deposits 3,109.4 3,255.6 3,234.1 3,270.1 3,314.7 3,332.5 3,367.9 3,394.6 3,397.4 3,421.0 3,378.6 3,360.0 48 Transaction 612.0 624.3 609.6 605.2 594.8 592.0 594.4 596.2 584.0 607.1 591.7 598.2 49 Nontransaction 2,497.4 2,631.3 2,624.5 2,664.9 2,719.8 2,740.6 2,773.6 2,798.5 2,813.3 2,813.9 2,786.9 2,761.8 50 Large time 451.9 494.5 502.8 517.7 533.3 540.0 536.8 542.9 538.7 541.0 542.8 544.4 51 Other 2,045.5 2,136.8 2,121.7 2,147.2 2,186.6 2,200.6 2,236.7 2,255.6 2,274.6 2,272.9 2,244.1 2,217.4 52 Borrowings 872.5 986.2 1,005.8 999.8 1,001.2 996.6 998.2 990.8 981.8 983.3 996.0 993.4 53 From banks in the U.S 323.6 358.0 366.5 357.8 363.6 365.6 353.2 349.2 348.3 347.6 348.7 346.5 54 From others 548.9 628.2 639.2 642.0 637.6 631.1 645.0 641.7 633.4 635.7 647.3 646.8 55 Net due to related foreign offices .... 166.2 205.0 237.2 235.1 236.1 243.8 240.4 236.1 235.0 240.0 239.5 234.0 56 Other liabilities 225.0 219.3 234.5 233.1 228.0 245.7 261.5 269.3 263.7 258.2 268.3 277.4 57 Total liabilities 4,373.1 4,666.0 4,711.5 4,738.0 4,779.9 4,818.6 4,868.1 4,890.8 4,877.8 4,902.6 4,882.4 4,864.8 58 Residual (assets less liabilities)7 422.4r 410.7 409.8 409.1 413.3 411.9 411.2 417.1 413.9 413.7 419.2 418.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Oct. Apr.1" Mayr Juner July1" Aug.r Sept.r Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Seasonally adjusted Assets 1 Bank credit 2,295,6r 2,443.7 2,479.7 2,495.3 2,505.4 2,522.9 2,547.4 2,523.3 2,531.7 2,525.7 2,521.7 2,526.8 2 Securities in bank credit 545,8r 568.7 579.1 580.5 577.9 576.0 584.1 575.1 580.5 580.5 574.6 573.5 3 U.S. government securities 356.7r 357.2 358.9 361.8 362.5 358.4 356.3 350.1 354.1 353.1 349.2 349.4 4 Trading account 20.2 21.3 23.5 22.7 24.3 23.7 23.2 21.1 20.6 21.2 19.4 23.3 5 Investment account 336.5r 335.9 335.5 339.1 338.2 334.7 333.1 329.0 333.5 331.9 329.8 326.1 6 Other securities 189.1 211.5 220.1 218.7 215.4 217.6 227.7 225.0 226.4 227.5 225.4 224.1 7 Trading account 81.4 92.9 101.2 100.2 97.2 102.5 114.5 112.7 114.0 114.1 113.3 111.9 8 Investment account 107.7 118.6 118.9 118.5 118.1 115.1 113.3 112.4 112.3 113.4 112.1 112.2 9 State and local government . 23.6 25.1 25.4 25.6 26.1 25.9 25.8 26.1 26.0 26.2 26.2 26.0 10 Other 84.1 93.5 93.5 92.9 92.0 89.2 87.5 86.2 86.4 87.1 85.9 86.1 11 Loans and leases in bank credit2 . . . 1,749.8r 1,875.0 1,900.6 1,914.8 1,927.5 1,946.9 1,963.3 1,948.2 1,951.2 1,945.1 1,947.0 1,953.3 12 Commercial and industrial 537.5r 568.5 579.0 582.4 582.9 586.0 586.3 585.6 584.2 585.9 584.4 588.3 13 Bankers acceptances 1.1 1.1 1.1 1.0 1.0 .9 .9 .8 .8 .9 .8 .8 14 Other 536.4r 567.4 578.0 581.4 582.0 585.1 585.4 584.7 583.3 585.0 583.6 587.5 15 Real estate 707,8r 780.4 794.4 800.6 809.3 815.0 817.7 810.3 809.6 8U.6 810.0 808.2 16 Revolving home equity 64.3r 72.2 74.0 74.3 75.2 76.1 75.2 77.2 76.8 77.0 77.2 77.4 17 Other 643.5r 708.2 720.4 726.3 734.1 738.9 742.4 733.0 732.8 734.6 732.8 730.8 18 Consumer 215.8 226.2 226.3 227.2 228.4 230.6 231.5 232.6 231.9 231.3 233.6 232.9 19 Security3 48.6 59.3 57.8 62.1 63.1 70.1 81.2 70.9 76.8 70.0 69.9 73.4 20 Federal funds sold to and repurchase agreements with broker-dealers 32.0 38.2 38.9 43.9 44.6 51.5 61.9 52.4 56.4 51.2 5511..11 5555..22 21 Other 16.5 21.1 18.9 18.2 18.5 18.6 19.3 18.5 20.3 18.8 18.7 18.2 22 State and local government 11.7 12.4 12.3 12.2 12.1 12.2 12.3 12.4 12.3 12.4 12.4 12.3 23 Agricultural 8.8 9.5 9.5 9.5 9.5 9.5 9.4 9.4 9.3 9.3 9.4 9.4 24 Federal funds sold to and repurchase agreements with others 9.9 13.6 13.2 13.6 12.9 13.2 12.7 13.2 13.5 12.4 1122..88 1133..11 25 All other loans 93.5 85.8 87.6 84.7 84.2 84.1 85.3 85.3 85.2 83.8 86.1 86.9 26 Lease-financing receivables 116.2 119.2 120.3 122.5 125.0 126.2 126.8 128.6 128.4 128.4 128.5 128.8 27 Interbank loans 139.1 125.2 131.0 133.9 141.8 140.2 130.7 136.1 132.0 131.3 136.5 138.7 28 Federal funds sold to and repurchase agreements with commercial banks 75.8r 62.1 67.0 68.1 73.9 66.1 56.4 57.4 55.6 54.9 5577..55 5599..22 29 Other 63.3 63.1 63.9 65.8 67.9 74.1 74.3 78.7 76.4 76.4 79.0 79.5 30 Cash assets4 144.0T 155.1 149.6 145.8 143.8 144.5 141.6 141.8 137.8 146.5 135.4 142.6 31 Other assets5 230.8r 219.7 223.8 225.0 245.6 248.3 250.1 263.6 260.4 266.0 264.8 261.1 32 Total assets6 2,774.2r 2,909.1 2,949.2 2,965.5 3,001.5 3,020.5 3,0343 3,029.6 3,026.7 3,0343 3,023.2 3,033.9 Liabilities 33 Deposits l,592.2r 1,636.2 1,641.9 1,635.4 1,635.8 1,631.2 1,630.7 1,633.4 1,633.1 1,647.3 1,619.6 1,632.8 34 Transaction 321.8r 312.3 316.0 308.8 302.3 304.7 300.8 303.0 290.7 308.6 296.7 319.0 35 Nontransaction l,270.3r 1,323.9 1,325.9 1,326.6 1,333.5 1,326.5 1,329.9 1,330.5 1,342.4 1,338.7 1,322.9 1,313.9 36 Large time 219.4r 242.9 250.5 257.3 265.7 264.0 256.0 253.4 256.1 253.9 253.1 252.4 37 Other 1,050.9" 1,081.0 1,075.4 1,069.3 1,067.8 1,062.5 1,073.9 1,077.1 1,086.3 1,084.8 1,069.8 1,061.5 38 Borrowings 578.8 649.5 650.9 655.8 678.2 688.4 672.4 665.4 662.5 666.8 668.1 664.7 39 From banks in the U.S 180.5 197.7 202.9 196.8 204.9 207.2 193.8 198.1 194.7 197.6 197.2 197.5 40 From others 398.3 451.9 448.1 459.0 473.3 481.2 478.6 467.2 467.8 469.2 470.9 467.1 41 Net due to related foreign offices 161.1 205.7 226.5 234.1 221.2 222.7 224.4 211.9 228.8 219.9 217.7 194.1 42 Other liabilities 166.5r 161.3 174.0 175.7 179.7 195.8 209.8 216.2 211.1 206.9 215.0 223.5 43 Total liabilities 2,4985r 2,652.7 2,6933 2,701.1 2,715.0 2,738.1 2,7373 2,726.9 2,735.5 2,740.9 2,720.4 2,715.1 44 Residual (assets less liabilities)7 275.6r 256.3 255.9 264.5 286.5 282.4 296.9 302.7 291.2 293.4 302.8 318.8 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • January 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Oct. Apr/ Mayr Juner Julyr Aug/ Sept/ Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Not seasonally adjusted Assets 45 Bank credit 2,296.5r 2,447.0 2,473.0 2,482.6 2,483.9 2,500.4 2,530.1 2,526.4 2,528.7 2,522.5 2,526.1 2,525.1 46 Securities in bank credit 545.4r 569.7 575.9 574.2 568.4 569.5 580.1 574.6 579.4 577.6 573.2 572.5 47 U.S. government securities 354.5r 361.8 360.0 358.8 355.3 351.7 351.3 347.9 351.2 348.6 346.1 347.1 48 Trading account 20.3 21.5 22.0 22.5 22.6 23.0 22.5 21.0 20.0 20.5 19.7 22.8 49 Investment account 334.2r 340.3 338.0 336.3 332.7 328.7 328.8 326.9 331.2 328.1 326.4 324.2 50 Mortgage-backed securities . . 218.3r 221.8 219.1 217.7 212.2 207.7 208.0 210.0 210.7 209.9 210.0 209.4 51 Other 115.9r 118.5 118.8 118.6 120.6 121.0 120.9 117.0 120.5 118.2 116.4 114.9 52 One year or less 23.1 29.0 30.7 30.6 30.6 31.6 32.3 30.8 31.5 31.2 30.5 30.4 53 One to five years 56.5r 51.9 52.0 52.8 53.6 52.6 52.2 50.0 51.7 50.5 49.9 49.7 54 More than five years . . . 36.3 37.7 36.1 35.2 36.4 36.9 36.4 36.1 37.2 36.6 36.0 34.8 55 Other securities 190.9 207.9 215.9 215.4 213.1 217.8 228.8 226.7 228.2 229.0 227.1 225.4 56 Trading account 81.4 92.9 101.2 100.2 97.2 102.5 114.5 112.7 114.0 114.1 113.3 111.9 57 Investment account 109.5 115.0 114.7 115.2 115.8 115.2 114.3 114.1 114.2 114.9 113.7 113.6 58 State and local government .. 23.7 25.1 25.3 25.5 25.6 25.6 25.7 26.1 25.8 26.2 26.3 26.2 59 Other 85.8 89.8 89.3 89.7 90.3 89.7 88.6 87.9 88.4 88.8 87.5 87.4 60 Loans and leases in bank credit2 . . l,751.1r 1,877.3 1,897.1 1,908.5 1,915.5 1,931.0 1,950.0 1,951.8 1,949.3 1,944.9 1,953.0 1,952.6 61 Commercial and industrial 537.3r 575.1 583.5 583.0 580.6 580.3 583.9 585.3 584.9 584.0 584.3 586.3 62 Bankers acceptances 1.1 1.1 1.1 1.0 1.0 .9 .9 .8 .8 .9 .8 .8 63 Other 536.2r 574.1 582.4 582.0 579.6 579.4 583.1 584.5 584.1 583.1 583.5 585.5 64 Real estate 709.5r 777.5 791.6 796.4 804.7 812.5 815.2 812.3 810.1 814.2 812.0 809.0 65 Revolving home equity 64.5 71.5 73.6 74.4 75.5 76.4 75.6 77.4 77.0 77.1 77.5 77.5 66 Other 388. lr 428.7 438.5 442.6 450.4 455.6 459.5 454.0 452.7 456.7 453.6 450.4 67 Commercial 251.& 277.3 279.4 279.4 278.8 280.4 280.2 280.8 280.4 280.3 280.9 281.1 68 Consumer 213.5 226.1 225.9 225.6 225.9 228.7 230.5 230.6 229.9 229.0 231.5 231.0 69 Credit cards and related plans. . n.a. n.a. n.a. n.a. 72.0 73.1 74.1 74.2 73.3 72.9 75.1 74.5 70 Other n.a. n.a. n.a. n.a. 153.9 155.7 156.4 156.4 156.6 156.0 156.4 156.5 71 Security3 51.4 59.8 56.4 61.7 60.5 64.7 74.1 75.7 75.1 72.5 76.6 79.7 72 Federal funds sold to and repurchase agreements with broker-dealers .... 35.0 38.2 36.8 42.6 41.8 46.5 55.1 57.3 55.7 54.3 57.8 61.5 73 Other 16.4 21.6 19.6 19.1 18.6 18.3 18.9 18.3 19.4 18.2 18.8 18.3 74 State and local government .... 11.8 12.3 12.2 12.1 12.1 12.4 12.5 12.5 12.5 12.5 12.5 12.4 75 Agricultural 9.0 9.3 9.4 9.5 9.6 9.6 9.6 9.5 9.6 9.5 9.5 9.6 76 Federal funds sold to and repurchase agreements with others 9.9 13.6 13.2 13.6 12.9 13.2 12.7 13.2 13.5 12.4 12.8 13.1 77 All other loans 93.5 83.7 84.6 84.3 84.9 84.3 86.2 85.2 86.2 83.3 86.5 84.2 78 Lease-financing receivables .... 115.1 119.9 120.4 122.3 124.3 125.2 125.2 127.5 127.5 127.5 127.3 127.3 79 Interbank loans 133.lr 130.0 134.5 136.9 141.9 134.3 127.2 130.2 128.1 124.8 130.0 130.1 80 Federal funds sold to and repurchase agreements with commercial banks 72.6 64.7 67.6 68.6 73.2 62.3 54.7 55.6 54.4 51.6 55.1 55.6 81 Other 60.4 65.3 66.9 68.2 68.7 72.0 72.5 74.6 73.7 73.2 75.0 74.5 82 Cash assets4 144.6r 155.0 148.8 143.3 137.5 136.4 138.5 142.1 131.0 154.4 141.0 132.0 83 Other assets5 225.0r 223.1 228.3 228.9 245.0 245.5 249.6 257.2 258.5 259.6 256.8 251.2 84 Total assets6 2,763.8r 2,920.6 2,949.8 2,957.0 2,9733 2,981.2 3,009.7 3,020.9 3,011.0 3,026.1 3,019.0 3,003.4 Liabilities 85 Deposits l,586.8r 1,645.9 1,627.1 1,630.5 1,625.3 1,615.5 1,622.9 1,628.0 1,633.7 1,647.7 1,619.2 1,603.5 86 Transaction 315.5r 319.5 309.6 307.6 298.5 293.6 296.2 297.1 289.0 306.1 295.9 296.1 87 Nontransaction l,271.2r 1,326.5 1,317.5 1,322.9 1,326.8 1,321.9 1,326.8 1,330.9 1,344.7 1,341.6 1,323.4 1,307.4 88 Large time 220.8r 240.5 245.2 251.9 257.6 258.6 251.5 254.9 253.4 254.1 254.2 255.0 89 Other l,050.4r 1,086.0 1,072.3 1,071.0 1,069.2 1,063.3 1,075.3 1,076.0 1,091.4 1,087.4 1,069.2 1,052.3 90 Borrowings 576.6 652.3 659.0 656.8 662.6 657.7 662.0 663.9 652.9 657.4 667.0 666.5 91 From banks in the U.S 176.0 201.6 204.1 195.9 199.5 199.8 189.7 194.5 189.7 193.3 192.9 193.4 92 From nonbanks in the U.S 400.6 450.7 454.9 460.9 463.2 457.9 472.3 469.4 463.2 464.0 474.0 473.1 93 Net due to related foreign offices . . . 161.9 199.6 231.2 225.9 213.7 220.1 220.0 212.8 214.1 214.5 216.4 210.4 94 Other liabilities 166.5r 161.3 174.0 175.7 179.7 195.8 209.8 216.2 211.1 206.9 215.0 223.5 95 Total liabilities 2,491.7r 2,659.1 2,6913 2,689.0 2,6813 2,689.1 2,714.8 2,721.0 2,711.9 2,726.4 2,717.6 2,703.9 96 Residual (assets less liabilities)7 272.1r 261.5 258.5 268.0 292.0 292.0 294.9 299.9 299.1 299.7 301.4 299.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Oct.r Apr.r Mayr Juner Julyr Aug.r Sept.1" Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Seasonally adjusted Assets 1 Bank credit 1,813.5 1,920.8 1,935.8 1,957.8 1,983.4 2,003.2 2,020.8 2,032.1 2,029.2 2,030.1 2,031.5 2,029.8 7 Securities in bank credit 512.7 518.4 519.4 520.5 528.0 532.7 537.0 540.4 540.9 540.5 541.0 538.3 3 U.S. government securities 374.6 377.4 376.7 376.3 376.9 374.2 373.4 372.4 373.1 373.5 372.2 370.2 4 Other securities 138.2 141.0 142.7 144.2 151.1 158.4 163.6 168.0 167.8 166.9 168.8 168.1 5 Loans and leases in bank credit2 1,300.7 1,402.4 1,416.4 1,437.3 1,455.4 1,470.5 1,483.8 1,491.7 1,488.3 1,489.7 1,490.5 1,491.6 6 Commercial and industrial 247.9 269.4 272.4 276.4 282.8 285.8 287.7 290.2 289.8 289.5 289.7 290.3 7 Real estate 696.5 757.7 767.3 776.7 783.0 787.1 796.0 802.4 800.5 800.9 802.0 802.7 8 Revolving home equity 35.8 40.1 40.8 41.1 41.5 41.9 45.0 46.3 46.2 46.2 46.4 46.4 9 Other 660.8 717.6 726.5 735.6 741.5 745.3 750.9 756.0 754.2 754.7 755.6 756.3 10 Consumer 265.6 280.4 282.8 288.3 290.6 297.0 299.4 297.5 296.9 297.6 297.5 297.5 11 Security3 6.0 6.7 6.2 6.5 6.8 7.2 7.3 7.5 7.4 7.4 7.5 7.5 17 Other loans and leases 84.7 88.2 87.7 89.5 92.2 93.3 93.4 94.1 93.7 94.3 94.0 93.6 13 Interbank loans 61.2 67.5 65.0 66.4 74.8 84.3 85.3 87.0 85.0 84.5 87.4 91.0 14 Cash assets4 80.6 78.8 80.7 78.7 80.7 81.0 81.7 82.5 81.9 85.5 78.6 82.3 15 Other assets5 98.9 108.6 112.9 111.5 110.3 109.5 108.4 111.4 112.3 110.8 109.9 115.1 16 Total assets6 2,030.7 2,150.9 2,169.4 2,188.7 2,222.7 2,251.0 2,268.8 2,285.8 2,281.2 2,283.8 2,2803 2,290.9 Liabilities 17 Deposits 1,521.4 1,602.5 1,607.7 1,642.2 1,694.7 1,721.7 1,747.0 1,763.7 1,759.3 1,764.2 1,754.4 1,767.2 18 Transaction 298.7 303.0 302.5 297.1 298.9 302.9 300.4 301.4 294.6 299.5 296.5 314.5 19 Nontransaction 1,222.6 1,299.5 1,305.2 1,345.1 1,395.8 1,418.8 1,446.6 1,462.3 1,464.7 1,464.6 1,457.9 1,452.7 70 Large time 231.1 254.0 257.6 265.8 275.7 281.3 285.3 288.0 285.4 286.9 288.6 289.3 21 Other 991.5 1,045.5 1,047.6 1,079.3 1,120.1 1,137.5 1,161.3 1,174.3 1,179.4 1,177.7 1,169.3 1,163.4 77 Borrowings 294.1 337.6 345.4 341.1 336.1 335.7 330.5 324.0 328.0 327.0 325.7 320.1 73 From banks in the U.S 146.1 158.9 163.1 160.2 161.7 162.8 159.9 152.1 157.3 153.3 152.8 148.6 74 From others 147.9 178.8 182.3 180.9 174.4 172.9 170.6 171.9 170.6 173.7 172.8 171.5 25 Net due to related foreign offices .... 4.3 5.3 6.0 9.1 22.4 23.7 20.4 23.3 20.9 25.5 23.1 23.6 26 Other liabilities 58.8 57.3 60.4 57.6 49.0 49.9 51.9 53.4 53.5 51.9 53.7 54.2 27 Total liabilities 1,878.6 2,002.8 2,019.6 2,050.0 2,102.2 2,131.0 2,149.9 2,164.5 2,161.7 2,168.5 2,156.8 2,165.2 28 Residual (assets less liabilities)7 152.1 148.2 149.8 138.7 120.5 120.0 118.9 121.3 119.5 115.2 123.4 125.7 Not seasonally adjusted Assets 79 Bank credit 1,814.8 1,924.1 1,942.7 1,963.2 1,984.2 2,006.6 2,025.2 2,034.1 2,028.5 2,031.7 2,034.1 2,033.5 30 Securities in bank credit 510.3 522.9 523.2 522.4 527.0 532.2 535.6 537.8 537.1 538.0 538.2 536.5 31 U.S. government securities 372.2 380.7 380.0 378.6 376.7 373.6 372.5 369.8 370.0 371.2 369.4 368.1 37 Other securities 138.1 142.1 143.2 143.9 150.3 158.6 163.1 167.9 167.1 166.7 168.7 168.3 33 Loans and leases in bank credit2 1,304.5 1,401.3 1,419.4 1,440.7 1,457.1 1,474.4 1,489.6 1,496.3 1,491.3 1,493.7 1,495.9 1,497.0 34 Commercial and industrial 247.5 271.6 275.0 278.4 282.9 283.9 286.1 289.9 288.8 289.1 289.7 290.1 35 Real estate 699.3 756.3 767.6 777.7 784.1 789.9 799.1 805.8 802.9 804.1 805.4 806.5 36 Revolving home equity 36.0 39.9 40.8 41.0 41.3 41.8 45.5 46.7 46.6 46.5 46.7 46.8 37 Other 663.2 716.4 726.8 736.7 742.7 748.1 753.6 759.1 756.3 757.5 758.8 759.8 38 Consumer 265.5 279.4 282.9 287.9 289.5 297.8 301.1 297.2 296.2 296.6 297.3 297.9 39 Credit cards and related plans. . n.a. n.a. n.a. n.a. 123.5 130.3 132.5 128.3 127.9 128.0 128.3 128.7 40 Other n.a. n.a. n.a n.a. 166.0 167.4 168.6 169.0 168.3 168.6 169.0 169.2 41 Security3 6.0 6.7 6.2 6.5 6.8 7.2 7.3 7.5 7.4 7.4 7.5 7.5 42 Other loans and leases 86.3 87.3 87.7 90.2 93.8 95.6 96.0 96.0 96.1 96.6 96.0 95.0 43 Interbank loans 61.3 69.0 61.4 63.1 70.7 80.2 82.5 86.6 85.5 84.8 86.7 86.3 44 Cash assets4 80.4 78.2 80.5 78.1 79.3 78.3 81.3 82.3 80.4 88.5 79.8 76.8 45 Other assets5 98.8 109.5 112.1 111.3 112.2 111.3 108.0 111.3 113.5 112.4 109.3 110.8 46 Total assets6 2,031.8 2,156.1 2,171.6 2,190.1 2,219.9 2,2493 2,269.6 2,287.1 2,280.7 2,290.2 2,282.7 2,280.2 Liabilities 47 Deposits 1,522.7 1,609.7 1,607.0 1,639.6 1,689.4 1,717.1 1,745.0 1,766.6 1,763.7 1,773.4 1,759.3 1,756.5 48 Transaction 296.4 304.8 300.0 297.6 296.3 298.4 298.2 299.1 295.0 301.0 295.8 302.1 49 Nontransaction 1,226.2 1,304.9 1,307.0 1,341.9 1,393.1 1,418.7 1,446.8 1,467.6 1,468.6 1,472.4 1,463.5 1,454.4 50 Large time 231.1 254.0 257.6 265.8 275.7 281.3 285.3 288.0 285.4 286.9 288.6 289.3 51 Other 995.1 1,050.8 1,049.4 1,076.1 1,117.4 1,137.3 1,161.5 1,179.6 1,183.3 1,185.5 1,174.9 1,165.1 52 Borrowings 295.9 333.9 346.8 342.9 338.6 338.9 336.3 326.9 328.8 325.9 329.1 326.9 53 From banks in the U.S 147.6 156.4 162.5 161.9 164.1 165.7 163.5 154.6 158.6 154.2 155.8 153.1 54 From others 148.3 177.5 184.3 181.1 174.4 173.2 172.8 172.3 170.2 171.7 173.2 173.8 55 Net due to related foreign offices .... 4.3 5.3 6.0 9.1 22.4 23.7 20.4 23.3 20.9 25.5 23.1 23.6 56 Other liabilities 58.6 58.0 60.4 57.3 48.2 49.9 51.6 53.0 52.6 51.4 53.3 53.9 57 Total liabilities 1,881.4 2,006.9 2,020.2 2,049.0 2,098.6 2,129.5 2,1533 2,169.8 2,165.9 2,176.1 2,164.8 2,160.9 58 Residual (assets less liabilities)7 150.4 149.2 151.4 141.1 121.4 119.9 116.3 117.3 114.7 114.1 117.9 119.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • January 2001 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 Oct. Apr. May June July Aug. Sept. Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Seasonally adjusted Assets 1 Bank credit 525.1 570.8r 586.3r 579. lr 579.5r 585.2r 592.6r 579.7 577.7 575.1 572.5 584.1 2 Securities in bank credit 192.2 205.6r 213.7r 208.6r 208.4r 209.3r 207.4r 191.0 195.5 189.9 188.3 191.0 3 U.S. government securities 82.9 79.6 79.7 78.9 79.7 79.9 77.4 69.8 73.1 72.4 68.1 67.9 4 Other securities 109.4 126.0r 134.(7 129.8r 128.7r 129.4r 130.(7 121.2 122.4 117.5 120.2 123.2 5 Loans and leases in bank credit2 . . . 332.8 365.2 372.7 370.4 371.1 375.9 385.2 388.7 382.2 385.2 384.2 393.1 6 Commercial and industrial 195.3 199.2 204.9 205.1 203.5 205.8 203.7 201.2 200.7 200.7 201.2 201.9 7 Real estate 17.7 18.4 18.7 19.0 18.9 18.8 19.3 18.7 19.2 18.9 18.5 18.4 8 Security3 55.2 77.9 81.0 81.0 81.8 82.2 94.8 102.7 96.7 99.2 99.3 106.7 9 Other loans and leases 64.6 69.7 68.0 65.2 66.9 69.0 67.3 66.1 65.6 66.4 65.2 66.1 10 Interbank loans 25.3 29.4 31.8 28.6 26.2 24.2 25.7 29.0 25.7 27.0 29.4 31.1 11 Cash assets4 45.9 47.4 43.9 44.6 44.9 44.4 44.6 42.4 44.0 44.0 41.9 41.9 12 Other assets5 32.2r 39.2r 40.3r 42.6r 42. lr 41.3r 39.8r 36.4 37.0 37.1 36.4 37.1 13 Total assets6 628.2r 686.4r 702.1r 694.6r 692.4r 694.6r 702.4r 687.2 684.0 682.9 679.8 693.9 Liabilities 14 Deposits 335.3 387.5 382.0 382.4 386.7 391.6 384.5 380.5 379.6 380.5 380.9 379.6 15 Transaction 10.7 10.9 11.2 11.4 11.4 10.9 9.8 10.5 10.5 10.6 10.0 11.1 16 Nontransaction 324.6 376.7 370.8 371.0 375.3 380.7 374.7 370.0 369.2 369.8 371.0 368.6 17 Borrowings 177.9 199.6 204.4 205.3 205.7 202.0 217.5r 221.8 213.0 217.0 221.1 220.3 18 From banks in the U.S 21.8 20.9 17.9 18.9 20.8 16.9 19.2 18.7 17.2 17.8 18.3 18.5 19 From others 156.1 178.7 186.5 186.3 184.9 185.1 198.3 203.0 195.8 199.2 202.8 201.8 20 Net due to related foreign offices 57.4 15.3 21.3 19.5 17.8 23.6 24.(7 16.5 24.7 17.1 11.2 17.3 21 Other liabilities 65.4r 73.8r 78.4r 71.4r 68.6r 67.9" 71.6r 72.4 67.3 69.0 72.6 74.6 22 Total liabilities 636.1r 676.2r 686.2r 678.6r 678.8r 685.1r 697.6r 691.2 684.6 683.5 685.8 691.9 23 Residual (assets less liabilities)7 -Iff 10.2r 15.9" 16.(7 13.6r 9.5r 4.8r -4.0 -.5 -.7 -6.0 2.0 Not seasonally adjusted Assets 24 Bank credit 532.1 564.3r 577.8r 569.2r 568.7r 575.4r 591.8r 588.5 582.5 580.1 581.0 592.3 25 Securities in bank credit 198.0 201,8r 210.5r 202.4r 201.4r 203.6r 207.6r 198.5 198.2 195.3 195.1 199.3 26 U.S. government securities 82.5 80.3 80.7 78.9 78.7 78.3 75.3 69.4 71.1 71.0 67.7 68.0 27 Trading account 14.3 11.8 12.3 11.8 11.8 13.7 14.1 11.7 13.0 12.4 10.1 10.8 28 Investment account 68.2 68.6 68.4 67.1 66.8 64.6 61.3 57.7 58.2 58.7 57.6 57.2 29 Other securities 115.5 121.5r 129.8r 123.5r 122.7r 125.3r 132.2r 129.1 127.1 124.3 127.3 131.3 30 Trading account 75.6 77.6r 86.0" 80.6r 79.9r 81.7r 90.3r 89.4 86.2 84.4 88.0 92.1 31 Investment account 39.8 43.9 43.7 42.9 42.9 43.6 41.9 39.7 40.9 39.9 39.3 39.2 32 Loans and leases in bank credit2 .. . 334.2 362.5 367.3 366.8 367.3 371.8 384.2r 390.0 384.3 384.8 385.9 393.0 33 Commercial and industrial 196.5 197.4 200.7 201.8 201.1 203.1 203.6r 202.5 202.3 200.9 202.1 203.0 34 Real estate 18.0 18.3 18.7 18.9 18.7 18.6 19.1 19.1 19.3 19.3 18.9 18.8 35 Security3 54.8 77.9 80.8 81.3 81.5 82.4 94.7 102.1 96.7 98.6 99.1 105.0 36 Other loans and leases 64.8 68.8 67.1 64.7 66.1 67.7 66.8 66.3 65.9 65.9 65.7 66.2 37 Interbank loans 25.3 29.4 31.8 28.6 26.2 24.2 25.7 29.0 25.7 27.0 29.4 31.1 38 Cash assets4 46.7 45.3 42.8 43.9 43.3 42.9 43.8 43.2 44.0 43.8 42.8 43.2 39 Other assets5 31.6r 38.5r 39.7r 40.4r 40.2r 40.5r 39. lr 35.7 36.2 36.5 35.7 36.0 40 Total assets6 635.4r 677.2r 691.7r 681.8r 678.0" 682.6r 700.0" 696.1 688.0 687.0 688.5 7023 Liabilities 4 4 1 2 De T p r o a s n it s s a ction 33 1 1 0 . . 8 8 38 1 8 0 . . 6 5 38 1 2 0 . . 9 7 37 1 8 1 . . 1 1 37 1 8 1 . . 0 3 37 1 9 0 . . 8 8 37 1 8 0 . . 2 3 37 1 6 0 . . 1 7 37 1 5 0 . . 6 8 37 1 4 0 . . 2 5 37 1 4 0 . . 2 2 37171..20 43 Nontransaction 321.0 378.1 372.1 367.0 366.7 368.9 367.9 365.4 364.8 363.7 364.0 366.2 44 Borrowings 177.9 199.6 204.4 205.3 205.7 202.0 217.5r 221.8 213.0 217.0 221.1 220.3 45 From banks in the U.S 21.8 20.9 17.9 18.9 20.8 16.9 19.2 18.7 17.2 17.8 18.3 18.5 46 From others 156.1 178.7 186.5 186.3 184.9 185.1 198.3 203.0 195.8 199.2 202.8 201.8 47 Net due to related foreign offices .... 57.8 10.6 17.1 18.1 16.9 23.4 23.4r 16.7 22.8 17.0 10.6 19.6 48 Other liabilities 64.9" 71.9r 76.9r 69.9" 67.(7 67.5r 71.2r 71.9 66.5 68.1 71.7 74.4 49 Total liabilities 632.4r 670.8r 681Jr 671.4r 667.6r 672.7r 690.2r 686.4 677.9 676.3 677.6 691.4 50 Residual (assets less liabilities)7 3.1r 6.4r 10.4r 10.4r 10.5r 9.f 9.8r 9.7 10.1 10.7 10.9 10.9 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 Liabilities1—Continued E. Foreign-related institutions—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Oct. Apr. May June July Aug. Sept. Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 51 Revaluation gains on off-balance-sheet items8 60.6 65.1 72.4 68.3 63.1 66.5 74.4 70.9 76.1 71.1 72.6 70.9 52 Revaluation losses on off-balancesheet items8 59.9 65.0 72.9 68.5 62.9 67.3 73.9 72.8 77.3 70.6 73.7 73.8 53 Mortage-backed securities9 248.5r 255.5r 252.7r 250.(/ 242.31" 237.8r 237.9r 239.4 240.8 239.5 239.3 238.4 54 Pass-through 170.2r 179.7r 178.1r nig 173.1r 169.8r 170.3r 173.2 173.9 173.5 173.2 172.7 55 CMO, REMIC, and other 78.3 75.9r 74.6 72.2 69.2 68.1r 67.6 66.2 66.9 66.1 66.1 65.7 56 Net unrealized gains (losses) on available-for-sale securities10 .... -10.6 -16.3 —18.7r — 14.5r — 10.2r - 10.8r —9.8r -8.8 -8.9 -8.9 -8.9 -8.7 57 Off-shore credit to U.S. residents". . . . 26.7 24.4 23.5 22.4 22.2 22.1 22.1 22.3 22.2 22.4 22.2 22.5 58 Securitized consumers loans12 n.a. n.a. n.a n.a. 87.4 86.6r 85.9 80.8 81.8 81.5 79.8 80.8 59 Credit cards and related plans n.a. n.a. n.a. n.a. 72.4 72.0 71.8 67.2 67.9 67.9 66.3 67.1 60 Other n.a. n.a. n.a. n.a. 15.0 14.6r 14.1r 13.6 13.8 13.6 13.5 13.7 61 Securitized business loans12 n.a. n.a. n.a. n.a. 17.0 16.2 15.3 15.2 15.1 15.1 15.1 15.0 Small domestically chartered commercial banks, adjusted for mergers 62 Mortage-backed securities9 199.3r 205.9r 205.4r 204.2r 203.7r 206.7r 208.8r 210.1 210.4 210.9 209.5 208.9 63 Securitized consumer loans12 n.a. n.a. n.a. n.a. 220.2 220.6 221.2 223.7 221.5 223.0 224.5 224.2 64 Credit cards and related plans n.a. n.a. n.a. n.a. 211.2 211.7 212.6 214.0 212.6 213.8 214.4 214.2 65 Other n.a. n.a. n.a. n.a. 9.0 8.8 8.6 9.7 9.0 9.2 10.1 10.0 Foreign-related institutions 66 Revaluation gains on off-balancesheet items8 39.3 41.7 47.1 41.1 38.1 39.9 45.4 45.1 41.3 41.0 45.6 47.4 67 Revaluation losses on off-balancesheet items8 37.8 38.6 44.5 38.0 35.7 37.7 43.0 43.2 39.5 40.0 43.9 45.4 68 Securitized business loans12 n.a. n.a. n.a. n.a. 23.9 23.7 23.1 23.0 23.3 23.1 23.2 23.1 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of 7. This balancing item is not intended as a measure of equity capital for use in capital Columbia: domestically chartered commercial banks that submit a weekly report of condition adequacy analysis. On a seasonally adjusted basis this item reflects any differences in the (large domestic); other domestically chartered commercial banks (small domestic); branches seasonal patterns estimated for total assets and total liabilities. and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and institutions). Excludes International Banking Facilities. Data are Wednesday values or pro equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. rata averages of Wednesday values. Large domestic banks constitute a universe; data for 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. small domestic banks and foreign-related institutions are estimates based on weekly samples government-sponsored enterprises, and private entities. and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications 10. Difference between fair value and historical cost for securities classified as available of assets and liabilities. for-sale under FASB Statement No. 115. Data are reported net of tax effects. Data shown are The data for large and small domestic banks presented on pp. A17-19 are adjusted to restated to include an estimate of these tax effects. remove the estimated effects of mergers between these two groups. The adjustment for 11. Mainly commercial and industrial loans but also includes an unknown amount of credit mergers changes past levels to make them comparable with current levels. Estimated extended to other than nonfinancial businesses. quantities of balance sheet items acquired in mergers are removed from past data for the bank 12. Total amount outstanding. group that contained the acquired bank and put into past data for the group containing the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A22 Domestic NonfinancialS tatistics • January 2001 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 Apr. May June July Aug. Sept. 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,465,697 1,497,712 1,516,205 1,551,668 1,559,054 1,557,700 Financial companies' 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 860,843 884,299 884,578 900,651 905,634 899,853 3 Directly placed paper, total3 210,829 229,662 252,536 322,030 337,240 294,328 302,305 300,718 309,076 303,307 315,039 4 Nonfinancial companies4 188,260 184,563 200,857 227,132 279,140 310,526 311,109 330,909 341,941 350,113 342,809 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 1997 1998 1999 2000 1 Total amount of reporting banks' acceptances in existence 25,774 14,363 10,094 9,881 2 Amount of other banks' eligible acceptances held bv reporting banks 736 523 461 462 3 Amount of own eligible acceptances held by reporting banks (included in item 1) 6,862 4,884 4,261 3,789 4 Amount of eligible acceptances representing goods stored in, or shipped between, foreign countries (included in item 1) 10,467 5,413 3,498 3,689 1. Includes eligible, dollar-denominated bankers acceptances legally payable in the United 2. Data on bankers dollar acceptances are gathered from approximately 40 institutions; States. Eligible acceptances are those that are eligible for discount by Federal Reserve Banks; includes U.S. chartered commerical banks (domestic and foreign offices), U.S. branches and that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal agencies of foreign banks, and Edge and agreement corporations. The reporting group is Reserve Act (12 U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average rate rate 8.25 1997 8.44 1998-—Jan. ... 8.50 1999—July . 8.50 1998 8.35 Feb. .. 8.50 Aug. 1999 8.00 Mar. 8.50 Sept. 1998—Sept. 30 8.25 Apr. .. 8.50 Oct. . Oct. 16 8.00 1997—Jan. 8.25 May .. 8.50 Nov. Nov. 18 7.75 Feb. 8.25 June .. 8.50 Dec. Mar. 8.30 July ... 8.50 1999—July 1 8.00 Apr. 8.50 Aug. .. 8.50 2000—Jan. . Aug. 25 8.25 May 8.50 Sept. . 8.49 Feb. Nov. 17 8.50 June 8.50 Oct. ... 8.12 Mar. July 8.50 Nov. .. 7.89 Apr. 2000—Feb. 3 8.75 Aug. 8.50 Dec. .. 7.75 May Mar. 22 9.00 Sept. 8.50 June May 17 9.50 Ocl 8.50 1999-—Jan. ... 7.75 July . Nov. 8.50 Feb. .. 7.75 Aug. Dec. 8.50 Mar. .. 7.75 Sept. Apr. .. 7.75 Oct. . May 7.75 June 7.75 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 July Aug. Sept. Oct. Sept. 29 Oct. 6 Oct. 13 Oct. 20 Oct. 27 MONEY MARKET INSTRUMENTS 1 Federal funds1,2'3 5.46 5.35 4.97 6.54 6.50 6.52 6.51 6.50 6.58 6.47 6.49 6.51 2 Discount window borrowing2,4 5.00 4.92 4.62 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 Commercial paper,-5'6 Nonfinancial 3 1-month 5.57 5.40 5.09 6.49 6.47 6.48 6.48 6.49 6.48 6.47 6.47 6.47 4 2-month 5.57 5.38 5.14 6.50 6.48 6.47 6.48 6.48 6.48 6.47 6.48 6.48 5 3-month 5.56 5.34 5.18 6.52 6.49 6.47 6.51 6.47 6.50 6.52 6.52 6.50 Financial 6 1-month 5.59 5.42 5.11 6.50 6.49 6.49 6.48 6.49 6.49 6.47 6.48 6.48 7 2-month 5.59 5.40 5.16 6.51 6.49 6.48 6.47 6.48 6.48 6.48 6.46 6.46 8 3-month 5.60 5.37 5.22 6.54 6.49 6.47 6.52 6.47 6.50 6.55 6.53 6.52 Commercial paper (historical)3,5,7 9 1-month 5.54 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 3-month 5.58 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 6-month 5.62 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Finance paper, directly placed (historical)3,5,8 12 1 -month 5.44 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 3-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 6-month 5.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Bankers acceptances3,5,9 15 3-month 5.54 5.39 5.24 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 6-month 5.57 5.30 5.30 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Certificates of deposit, secondary markefiM 17 1-month 5.54 5.49 5.19 6.57 6.55 6.56 6.55 6.57 6.56 66..5566 66..5555 66..5555 18 3-month 5.62 5.47 5.33 6.67 6.61 6.60 6.67 6.63 6.70 6.68 6.66 6.65 19 6-month 5.73 5.44 5.46 6.86 6.76 6.68 6.65 6.67 6.67 6.66 6.64 6.64 20 Eurodollar deposits, 3-month '11 5.61 5.45 5.31 6.67 6.61 6.59 6.66 6.62 6.69 6.68 6.65 6.65 U.S. Treasury bills Secondary market3,5 21 3-month 5.06 4.78 4.64 5.96 6.09 6.00 6.11 6.03 6.06 6.03 6.11 66..1188 77 6-month 5.18 4.83 4.75 6.00 6.07 5.98 6.04 6.00 6.04 6.00 6.01 6.08 23 1-year 5.32 4.80 4.81 5.75 5.87 5.79 5.72 5.76 5.75 5.68 5.66 5.74 Auction high3,5,12 74 3-month 5.07 4.81 4.66 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 6-month 5.18 4.85 4.76 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 1-year 5.36 4.85 4.78 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 77 1-year 5.63 5.05 5.08 6.08 6.18 6.13 6.01 6.08 6.06 5.98 5.94 6.01 78 2-year 5.99 5.13 5.43 6.34 6.23 6.08 5.91 6.04 6.00 5.90 5.85 5.88 79 3-year 6.10 5.14 5.49 6.28 6.17 6.02 5.85 5.97 5.95 5.85 5.77 5.80 30 5-year 6.22 5.15 5.55 6.18 6.06 5.93 5.78 5.90 5.90 5.79 5.70 5.73 31 7-year 6.33 5.28 5.79 6.22 6.05 5.98 5.84 5.96 5.97 5.86 5.77 5.75 37 10-year 6.35 5.26 5.65 6.05 5.83 5.80 5.74 5.82 5.86 5.76 5.68 5.66 33 20-year 6.69 5.72 6.20 6.20 6.02 6.09 6.04 6.14 6.17 6.06 6.00 5.94 34 30-year 6.61 5.58 5.87 5.85 5.72 5.83 5.80 5.89 5.92 5.82 5.77 5.72 Composite 35 More than 10 years (long-term) 6.67 5.69 6.14 n.a. n.a. n.a. n.a. n.a. 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 5.53 5.43 5.40 5.46 5.50 5.50 5.48 5.45 5.42 37 Baa 5.50 5.14 5.70 6.09 6.01 6.12 6.22 6.27 6.28 6.23 6.19 6.18 38 Bond Buyer series15 5.52 5.09 5.43 5.63 5.51 5.56 5.59 5.63 5.64 5.62 5.56 5.53 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.98 7.88 7.98 7.95 7.99 8.03 7.98 7.94 7.89 Rating group 40 Aaa 7.27 6.53 7.05 7.65 7.55 7.62 7.55 7.65 7.68 7.57 77..5533 77..4455 41 Aa 7.48 6.80 7.36 7.81 7.70 7.83 7.81 7.85 7.88 7.84 7.81 7.75 47 A 7.54 6.93 7.53 8.11 8.02 8.13 8.11 8.13 8.16 8.14 8.10 8.06 43 Baa 7.87 7.22 7.88 8.35 8.26 8.35 8.34 8.35 8.39 8.37 8.33 8.29 MEMO Dividend-price ratio17 44 Common stocks 1.77 1.49 1.25 1.10 1.09 1.10 1.15 1.12 1.11 1.16 1.18 1.16 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 9. Representative closing yields for acceptances of the highest-rated money center banks. G.13 (415) monthly statistical releases. For ordering address, see inside front cover. 10. An average of dealer offering rates on nationally traded certificates of deposit. 1. The daily effective federal funds rate is a weighted average of rates on trades through 11. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for New York brokers. indication purposes only. 2. Weekly figures are averages of seven calendar days ending on Wednesday of the 12. Auction date for daily data; weekly and monthly averages computed on an issue-date current week; monthly figures include each calendar day in the month. basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before 3. Annualized using a 360-day year or bank interest. that, they are weighted average yields from multiple-price auctions. 4. Rate for the Federal Reserve Bank of New York. 13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart- 5. Quoted on a discount basis. ment of the Treasury. 6. Interest rates interpolated from data on certain commercial paper trades settled by the 14. General obligation bonds based on Thursday figures; Moody's Investors Service. Depository Trust Company. The trades represent sales of commercial paper by dealers or 15. State and local government general obligation bonds maturing in twenty years are used direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' (http://www.federalreserve.gov/releases/cp) for more information. A1 rating. Based on Thursday figures. 7. An average of offering rates on commercial paper for firms whose bond rating is AA or 16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected the equivalent. Series ended August 29, 1997. long-term bonds. 8. An average of offering rates on paper directly placed by finance companies. Series 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in ended August 29, 1997. the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • January 2001 1.36 STOCK MARKET Selected Statistics 2000 IInnddiiccaattoorr 11999977 11999988 11999999 Feb. Mar. Apr. May June July Aug. Sept. Oct. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 606.03 622.28 646.82 640.07 649.61 653.27 666.14 667.05 646.53 2 Industrial 574.97 684.35 775.29 767.08 790.35 822.76 814.75 819.54 825.28 837.23 829.99 797.00 3 Transportation 415.08 468.61 491.62 398.69 384.39 406.14 411.50 395.09 410.67 419.84 404.23 403.20 4 Utility 143.87 190.52 284.82 482.30 509.59 502.78 487.17 501.93 484.19 459.91 463.76 469.16 5 Finance 424.84 516.65 530.97 471.65 491.29 524.05 523.22 544.51 556.32 597.17 616.89 587.76 6 Standard & Poor's Corporation (1941-43 = 10)1 873.43 1,085.50 1,327.33 1,388.88 1,442.21 1,461.36 1,418.48 1,461.96 1,473.00 1,485.46 1,468.06 1,390.14 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 910.00 1,014.03 918.77 917.76 934.90 930.66 920.54 952.74 913.64 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 1,032,791 1,124,097 1,047,960 893,896 971,137 941,694 875,087 1,026,597 1,167,025 9 American Stock Exchange 24,390 28,870 32,629 51,134 59,449 63,054 44,146 42,490 36,486 35,695 47,047 57,915 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 1,361,600 1,685,820 2,130,152 265,210 278,530 251,700 240,660 247,200 244,970 247,560 250,780 233,376 Free credit balances at brokers4 11 Margin accounts5 293,000 405,180 532,500 56,470 65,020 65,930 66,170 64,970 71,730 68,020 70,959 83,131 12 Cash accounts 517,030 633,725 757,345 79,700 85,530 76,190 73,500 74,140 74,970 72,640 74,766 73,271 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 11999988 11999999 22000000 May June July Aug. Sept. Oct. U.S. budget1 1 Receipts, total 1,721,798 1,827,454 2,025,038 146,002 214,875 134,074 138,128 219,471 135,111 2 On-budget 1,305,999 1,382,986 1,544,455 107,469 168,319 97,681 101,429 176,692 101,121 3 Off-budget 415,799 444,468 480,583 38,533 46,556 36,393 36,699 42,779 33,990 4 Outlays, total 1,652,552 1,702,940 1,788,294 149,612 158,987 129,013 148,555 153,898 146,431 5 On-budget 1,335,948 1,382,262 1,457,529 114,829 152,308 99,404 115,539 114,748 115,840 6 Off-budget 316,604 320,778 330,765 34,783 6,679 29,609 33,016 38,901 30,592 7 Surplus or deficit ( —), total 69,246 124,414 236,743 -3,611 55,888 5,061 -10,427 65,822 -11,321 8 On-budget -29,949 724 86,925 -7,360 16,011 -1,723 -14,110 61,944 -14,719 9 Off-budget 99,195 123,690 149,818 3,750 39,877 6,784 3,683 3,878 3,398 Source of financing (total) 10 Borrowing from the public -51,211 -88,674 -222,672 -53,755 -23,131 -31,307 9,995 -32,334 -29,666 11 Operating cash (decrease, or increase (-)) 4,743 -17,580 3,799 69,470 -34,350 23,384 20,873 -39,479 42,653 12 Other 2 -22,778 -18,160 -18,120 -12,104 1,593 2,862 -20,441 5,991 -1,666 MEMO 13 Treasury operating balance (level, end of period) 38,878 56,458 52,659 23,087 57,437 34,053 13,180 52,659 10,006 14 Federal Reserve Banks 4,952 6,641 8,459 5,445 6,208 5,392 5,961 8,459 5,360 15 Tax and loan accounts 33,926 49,817 44,199 17,642 51,229 28,661 7,218 44,199 4,646 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 loan- Survivors, and 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 when available. 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 • January 2001 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1998 1999 2000 2000 11999999 22000000 H2 HI H2 HI Aug. Sept. Oct. RECEIPTS 1 All sources 1,827,454 2,025,038 825,057 966,045 892,266 1,089,760 138,128 219,471 135,111 2 Individual income taxes, net 879,480 1,004,461 392,332 481,907 425,451 550,208 68,033 104,402 75,969 3 Withheld 693,940 780,397 339,144 351,068 372,012 388,526 62,057 59,766 68,287 4 Nonwithheld 308,185 358,049 65,204 240,278 68,302 281,103 7,850 48,229 8,799 5 Refunds 122,706 134,046 12,032 109,467 14,841 119,477 11,,887744 33,,559933 11,,111188 Corporation income taxes 6 Gross receipts 216,324 235,655 104,163 106,861 110,111 119,166 6,577 46,183 7,113 7 Refunds 31,645 28,367 14,250 17,092 13,996 13,781 1,903 2,746 5,404 8 Social insurance taxes and contributions, net . . . 611,833 652,851 268,466 324,831 292,551 353,514 52,082 56,293 47,155 y Employment taxes and contributions2 580,880 620,447 256,142 306,235 280,059 333,584 48,132 55,682 45.247 10 Unemployment insurance 26,480 27,641 10,121 16,378 10,173 17,562 3,584 168 1,509 ii Other net receipts3 4,473 4,763 2,202 2,216 2,319 2,368 366 443 399 12 Excise taxes 70,414 68,866 33,366 31,015 34,262 33,532 5,580 7,769 4,235 13 Customs deposits 18,336 19,913 9,838 8,440 10,287 9,218 2,071 1,823 1,900 14 Estate and gift taxes 27,782 29,010 12,359 14,915 14,001 15,073 2,304 2,168 2,868 15 Miscellaneous receipts4 34,929 42,647 18,735 15,140 19,569 22,831 3,383 3,579 1,275 OUTLAYS 16 All types 1,702,940 1,788,045 877,414 817,227 882,465 892,947 148,555 153,898r 146,431 17 National defense 274,873 293,856 140,196 134,414 149,573r 143,476 24,767 28,243 21,478 18 International affairs 15,243 17,252 8,297 6,879 8,530 7,250 -667 1,553 1,795 19 General science, space, and technology 18,125 19,707 10,142 9,319 10,089 9,601 1,829 1,716 1,676 20 Energy 912 -1,020 699 797 -90 -893 -223 530 -1,200 21 Natural resources and environment 23,970 23,295 12,671 10,351 12,100 10,814 2,267 2,542 2,132 22 Agriculture 23,011 38,472 16,757 9,803 20,887 11,164 1,449 6,842 5,025 23 Commerce and housing credit 2,649 3,321 4,046 -1,629 7,353 -2,497 — 1,295 4,591 843 24 Transportation 42,531 46,211 20,836 17,082 23,199r 21,054 4,866 4,209 4,729 25 Community and regional development 11,870 11,687 6,972 5,368 6,806r 5,050 1,007 975 1,211 26 Education, training, employment, and social services 56,402 58,364 27,762 29,003 27,532 31,234 5,576 3,616 5,061 27 Health 141,079 154,215 67,838 69,320 74,490 75,871 14,512 13,566 14,799 28 Social security and Medicare 580,488 606,552 316,809 261,146 295,030 306,966 52,206 50,381 51,766 29 Income security 237,707 247,380 109,481 126,552 113,504 133,915 18,521 20,031 16,485 30 Veterans benefits and services 43,212 47,084 22,750 20,105 23,412 23,174 3,700 5,619 2,222 31 Administration of justice 25,924 27,704 12,041 13,149 13,459 13,981 2,405 2,398 2,545 32 General government 15,771 13,721 9,136 6,641 7,010r 6,198 906 1,017 1,239 33 Net interest5 229,735 222,825 116,954 116,655 112,420 115,545 20,004 12,584 18,399 34 Undistributed offsetting receipts6 -40,445 —42,581 -25,793 -17,724 -22,850 -19,346 -3,275 -6,766 -3,775 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, US. 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 200]; monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1998 1999 2000 IItteemm Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 5,556 5,643 5,681 5,668 5,685 5,805 5,802 5,714 5,702 2 Public debt securities 5,526 5,614 5,652 5,639 5,656 5,776 5,773 5,686 5,674 3 Held by public 3,761 3,787 3,795 3,685 3,667 3,716 3,688 3,496 n.a. 4 Held by agencies 1,766 1,827 1,857 1,954 1,989 2,061 2,085 2,190 n.a. 5 Agency securities 29 29 29 29 29 29 28 28 28 6 Held by public 26 29 28 28 28 28 28 28 n.a. 7 Held by agencies 4 1 1 1 1 1 0 0 n.a. 8 Debt subject to statutory limit 5,440 5,530 5,566 5,552 5,568 5,687 5,687 5,601 5,592 9 Public debt securities 5,439 5,530 5,566 5,552 5,568 5,687 5,686 5,601 5,591 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 Q4 Ql Q2 Q3 1 Total gross public debt 5,323.2 5,502.4 5,614.2 5,776.1 5,776.1 5,773.4 5,685.9 5,674.2 By type 2 Interest-bearing 5,317.2 5,494.9 5,605.4 5,766.1 5,766.1 5,763.8 5,675.9 5,622.1 3 Marketable 3,459.7 3,456.8 3,355.5 3,281.0 3,281.0 3,261.2 3,070.7 2,992.8 4 Bills 777.4 715.4 691.0 737.1 737.1 753.3 629.9 616.2 5 Notes 2,112.3 2,106.1 1,960.7 1,784.5 1,784.5 1,732.6 1,679.1 1,611.3 6 Bonds 555.0 587.3 621.2 643.7 643.7 653.0 637.7 635.3 7 Inflation-indexed notes and bonds1 n.a. 33.0 67.6 100.7 100.7 107.4 109.0 115.0 8 Nonmarketable2 1,857.5 2,038.1 2,249.9 2,485.1 2,485.1 2,502.6 2,605.2 2,629.3 9 State and local government series 101.3 124.1 165.3 165.7 165.7 161.9 160.4 153.3 10 Foreign issues3 37.4 36.2 34.3 31.3 31.3 28.8 27.7 25.4 11 Government 47.4 36.2 34.3 31.3 31.3 28.8 27.7 25.4 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 182.4 181.2 180.3 179.4 179.4 178.6 177.7 177.7 14 Government account series4 1,505.9 1,666.7 1,840.0 2,078.7 2,078.7 2,103.3 2,209.4 2,242.9 15 Non-interest-bearing 6.0 7.5 8.8 10.0 10.0 9.6 10.1 52.1 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 2,060.6 2,085.4 2,190.2 2,235.7 17 Federal Reserve Banks 410.9 451.9 471.7 477.7 477.7 501.7 505.0 511.4 18 Private investors 3,431.2 3,414.6 3,334.0 3,233.9 3,233.9 3,182.8 2,987.4 2,936.2 19 Depository institutions 296.6 300.3 237.3 246.3 246.4r 235. lr 219.7 n.a. 20 Mutual funds 315.8 321.5 343.2 349.5 349.5 343.7 318.6 n.a. 21 Insurance companies 214.1 176.6 144.5 140.0 140.0 138.7 120.9 n.a. 22 State and local treasuries6 257.0 239.3 269.3 266.8 266.8 257.2 256.41 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.5 186.4r 185.3 184.7 184.7 24 Pension funds 342.8r 359.4r 374.4r 384.5r 384.5r 385.9r 384.51 n.a. 25 Private 139.3r 142.5r 157.8r 171.3r 171.3r 174.8r 175.5r n.a. 26 State and Local 203.5 216.9 217.7 213.2r 213.2r 211.10r 209.0r n.a. 27 Foreign and international7 1,102.1 1,241.6 1,278.7 1,268.8 1,268.8 l,273.9r 1,248.9 1,225.2 28 Other miscellaneous investors6'8 715.8r 589.5r 498.8r 407. lr 407. r 382.5r 253.8r 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 • January 2001 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2000 2000, week ending IItteemm July Aug. Sept. Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 Oct. 25 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 16,467 21,487 24,438 27,255 31,270 23,896 22,297 22,099 26,749 25,644 24,964 21,269 Coupon securities, by maturity 2 Five years or less 96,709 84,941 117,915 75,257 95,849 90,909 133,824 140,680 121,841 142,852 146,449 141,987 3 More than five years 57,055 62,777 69,458 53,359 62,764 56,674 92,418 63,927 67,886 62,610 68,600 67,826 4 Inflation-indexed 1,261 1,185 1,490 1,219 2,086 1,683 1,043 1,584 1,000 4,070 2,150 1,675 Federal agency 5 Discount notes 53,649 53,668 50,165 58,435 55,704 50,911 46,575 48,146 54,014 50,581 51,999 47,189 Coupon securities, by maturity 6 One year or less 1,299 1,314 1,160 1,710 935 1,271 1,208 1,175 1,058 730 1,107 1,164 7 More than one year, but less than or equal to five years 7,939 8,879 9,860 7,163 6,995 12,658 10,972 7,646 9,922 15,099 10,935 16,278 8 More than five years 9,286 7,002 9,925 5,534 6,129 7,644 16,190 8,844 8,365 11,972 8,979 12,925 9 Mortgage-backed 68,080 67,487 76,954 37,770 63,208 111,880 79,310 54,433 60,673 109,182 112,689 51,511 By type of counterparty With interdealer broker 10 U.S. Treasury 81,757 81,566 101,973 74,830 85,739 83,155 119,564 112,466 103,159 102,320 105,704 99,613 11 Federal agency 7,497 8,089 9,811 6,690 6,865 10,062 12,497 9,130 8,589 10,182 9,385 14,588 12 Mortgage-backed 22,785 25,460 28,514 16,444 20,792 39,863 25,681 28,153 19,705 34,264 33,514 20,349 With other 13 U.S. Treasury 89,735 88,823 111,328 82,260 106,229 90,006 130,018 115,824 114,317 132,855 136,460 133,144 14 Federal agency 64,677 62,774 61,299 66,152 62,898 62,422 62,448 56,681 64,770 68,199 63,635 62,968 15 Mortgage-backed 45,294 42,027 48,440 21,327 42,410 72,017 53,628 26,280 40,968 74,929 79,175 31,162 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills 0 n.a. 0 n.a. n.a. n.a. n.a. n.a. 0 0 n.a. 0 Coupon securities, by maturity 17 Five years or less 2,571 3,467 3,119 5,025 5,032 3,346 3,255 2,185 1,678 2,547 2,534 3,263 18 More than five years 8,991 10,960 11,756 12,228 11,749 9,846 15,512 10,460 10,390 9,507 10,129 10,740 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 51 109 165 150 49 138 237 189 n.a. 131 57 106 24 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 0 OPTIONS TRANSACTIONS4 By type of underlying security 25 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 26 Five years or less 1,214 1,149 1,350 1,201 831 1,569 1,606 1,425 751 970 1,799 956 27 More than five years 2,634 2,821 3,382 2,313 2,923 3,070 4,131 3,117 3,640 3,835 4,313 3,367 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 12 34 38 0 38 n.a. 0 0 0 0 0 0 32 More than five years 3 2 6 n.a. 16 0 n.a. n.a. n.a. n.a. 102 n.a. 33 Mortgage-backed 898 1,145 1,097 581 1,049 1,446 851 832 1,578 1,719 874 1,287 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2000 2000, week ending IItteemm July Aug. Sept. Aug. 30 Sept. 6 Sept. 13 Sept. 20 Sept. 27 Oct. 4 Oct. 11 Oct. 18 NET OUTRIGHT POSITIONS- By type of security 1 U.S. Treasury bills 3,951 2,426 9,758 1,111 17,945 17,068 5,563 2,930 2,049 3,151 1,661 Coupon securities, by maturity 2 Five years or less -31,279 -29,287 -29,392 -27,175 -26,519 -27,258 -31,407 -30,917 -31,857 -34,212 -27,319 3 More than five years -21,335 -18,943 -17,375 -17,471 -16,718 -16,789 -15,425 -19,271 -20,181 -19,684 -14,297 4 Inflation-indexed 2,564 2,711 2,452 2,635 1,982 2,477 2,742 2,622 2,264 2,882 3,251 Federal agency 5 Discount notes 35,531 31,912 37,057 31,262 31,726 36,160 39,899 39,369 37,785 34,342 30,297 Coupon securities, by maturity 6 One year or less 12,896 13,638 13,999 13,549 12,380 14,792 14,447 14,254 13,751 13,882 14,277 7 More than one year, but less than or equal to five years 3,249 5,089 4,628 5,991 6,016 4,327 4,873 3,796 3,926 6,032 4,333 8 More than five years 1,268 1,281 1,696 197 1,035 34 1,838 2,905 3,748 3,239 1,951 9 Mortgage-backed 20,713 18,646 14,544 17,032 13,051 15,083 15,283 14,170 15,420 10,702 12,563 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S. Treasury bills 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 11 Five years or less 14,350 11,726 4,480 10,071 8,981 6,799 2,138 1,754 1,891 1,919 921 12 More than five years 71 -329 1,600 -546 544 124 2,638 2,006 3,790 2,454 186 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 -261 -582 -737 -470 -528 -638 -922 -790 -832 -1,320 -1,345 18 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 NET OPTIONS POSITIONS By type of deliverable security 19 U.S." Treasury bills 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 20 Five years or less 1,143 1,723 2,489 2,052 1,528 3,134 2,875 2,472 2,046 1,789 1,755 21 More than five years 1,699 1,324 1,242 765 1,522 870 1,789 1,723 -844 651 949 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 233 208 88 108 105 150 82 27 63 28 73 26 More than five years 309 181 33 17 22 15 35 29 104 95 277 27 Mortgage-backed 2,236 5,009 4,328 6,177 5,772 3,926 4,191 3,741 4,065 3,615 3,470 Financing5 Reverse repurchase agreements 28 Overnight and continuing 282,999 283,661 282,991 267,642 290,528 274,009 289,304 274,584 293,759 279,418 294,586 29 Term 828,512 782,717 777,783 757,389 734,160 773,814 778,606 818,031 778,462 801,856 821,856 Securities borrowed 30 Overnight and continuing 299,289 285,382 283,528 275,653 285,659 283,829 285,836 278,219 285,566 292,300 296,145 31 Term 113,572 114,470 114,413 116,175 108,057 110,917 111,445 123,968 119,912 118,622 116,806 Securities received as pledge 32 Overnight and continuing 2,454 2,367 2,232 2,109 2,422 2,272 2,057 n.a. 2,169 2,184 2,259 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 750,138 748,503 738,371 719,039 758,248 737,204 739,576 723,889 732,321 719,909 734,958 35 Term 736,488 689,557 707,207 671,941 648,849 688,139 720,286 760,262 714,107 732,376 775,093 Securities loaned 36 Overnight and continuing 7,433 7,705 6,935 7,317 7,060 7,290 6,999 6,393 6,976 7,214 7,233 37 Term 5,295 4,295 6,189 6,234 6,594 6,597 6,597 5,243 5,682 5,429 5,427 Securities pledged 38 Overnight and continuing 63,077 60,868 61.552 62,275 60,931 64,044 61,419 59,309 62,526 60,986 60,206 39 Term 4,358 4,203 4,432 4,072 3,952 4,247 4,367 4,950 4,771 4,806 4,703 Collateralized loans 40 Total 20,706 23,695 22,972 21,204 23,375 30,761 18,582 17,876 26,125 27,168 28,677 1. Data for positions and financing are obtained from reports submitted to the Federal securities are included when the time to delivery is more than five business days. Forward Reserve Bank of New York by the U.S. government securities dealers on its published list of contracts for mortgage-backed agency securities are included when the time to delivery is primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar more than thirty business days. days of the report week are assumed to be constant. Monthly averages are based on the 4. Futures positions reflect standardized agreements arranged on an exchange. All futures number of calendar days in the month. positions are included regardless of time to delivery. 2. Securities positions are reported at market value. 5. Overnight financing refers to agreements made on one business day that mature on the 3. Net outright positions include immediate and forward positions. Net immediate posi- next business day; continuing contracts are agreements that remain in effect for more than one tions include securities purchased or sold (other than mortgage-backed agency securities) that business day but have no specific maturity and can be terminated without advance notice by have been delivered or are scheduled to be delivered in five business days or less and either party; term agreements have a fixed maturity of more than one business day. Financing "when-issued" securities that settle on the issue date of offering. Net immediate positions for data are reported in terms of actual funds paid or received, including accrued interest. mortgage-backed agency securities include securities purchased or sold that have been NOTE, "n.a." indicates that data are not published because of insufficient activity. delivered or are scheduled to be delivered in thirty business days or less. Forward positions reflect agreements made in the over-the-counter market that specify delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic NonfinancialS tatistics • January 2001 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2000 AAggeennccyy 11999966 11999977 11999988 11999999 Apr. May June July Aug. 1 Federal and federally sponsored agencies 925,823 1,022,609 1,296,477 1,616,492 n.a. 193,776 l,706,709r 1,726,016 1,763,089 2 Federal agencies 29,380 27,792 26,502 26,376 26,011 26,052 26,669 26,094 25,892 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 84 102 205 126 173 184 185 205 210 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 26,005 26,046 26,663 26,088 25,886 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 1,590,116 164,298 167,726 1,680,040r 1,699,922 1,737,197 11 Federal Home Loan Banks 263,404 313,919 382,131 529,005 541,673 557,506 568,438 565,037 572,836 12 Federal Home Loan Mortgage Corporation 156,980 169,200 287,396 360,711 388,261 392,555 384,286 399,370 412,656 13 Federal National Mortgage Association 331,270 369,774 460,291 547,619 561,700 571,800 578,500 579,448 595,117 14 Farm Credit Banks8 60,053 63,517 63,488 68,883 69,036 70,036 69,541 69,757 70,139 15 Student Loan Marketing Association9 44,763 37,717 35,399 41,988 40,119 43,144 37,263 44,223 44,113 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 38,700 39,102 38,513 38,143 38,040 Lending to federal and federally sponsored agencies 2 2 0 1 E Po x s p t o a r l t- S I e m r p v o ic r e t 6 Bank3 n 1 . , a 4 . 31 n.a. 5 52 F 1 F 1 F 1 F 1 F 1 F 1 F 1 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2 2 3 4 U Te n n it n e e d s s S ee ta t V es a l R le a y i l A w u ay th o A r s it s y o ciation6 n n . . a a . . n n . . a a . . •I •1 T 1 i1 •I T 1 •1 Other lending14 75 Farmers Home Administration 18,325 13,530 9,500 6,665 6,240 6,140 6,040 5,760 5,660 76 Rural Electrification Administration 16,702 14,898 14,091 14,085 13,167 13,221 13,121 13,165 13,238 27 Other 21,714 20,110 20,538 21,402 19,293 19,741 19,352 19,218 19,142 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 2000 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999977 11999988 11999999 oorr uussee Mar. Apr. May June July Aug. Sept. Oct. 1 All issues, new and refunding1 214,694 262,342 215,427 16,780 14,233 14,136 20,208 12,827 15,284 15,598 18,035 By type of issue 2 General obligation 69,934 87,015 73,308 5,008 4,598 6,051 8,581 4,256 5,194 6,888 5,871 3 Revenue 134,989 175,327 142,120 11,773 9,635 8,086 11,628 8,572 10,090 8,710 12,163 By type of issuer 4 State 18,237 23,506 16,376 1,570 1,371 1,102 2,907 783 1,011 2,022 3,005 5 Special district or statutory authority2 134,919 178,421 152,418 11,098 10,229 9,639 13,520 8,545 10,728 10,152 11,224 6 Municipality, county, or township 70,558 60,173 46,634 4,112 2,633 3,396 3,782 3,500 3,545 3,424 3,806 7 Issues for new capital 135,519 160,568 161,065 13,508 12,029 12,481 16,987 11,297 12,402 13,968 16,387 By use of proceeds 8 Education 31,860 36,904 36,563 3,436 2,484 3,662 4,465 3,185 3,630 3,210 3,492 9 Transportation 13,951 19,926 17,394 2,723 768 1,778 1,093 1,947 1,979 1,574 2,575 10 Utilities and conservation 12,219 21,037 15,098 1,086 729 537 1,141 353 1,409 1,408 1,272 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 9,099 747 762 585 1,150 632 281 387 730 13 Other purposes 35,095 42,450 47,896 2,426 3,903 3,557 5,776 2,543 3,564 5,243 6,558 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 2000 TTyyppee ooff iissssuuee,, ooffffeerriinngg,, 11999977 11999988 11999999 oorr iissssuueerr Feb. Mar. Apr. May June July Aug.r Sept. 1 All issues1 929,256 1,128,491 1,072,866 85,679 113,093 61,963 62,939 100,615 65,511 82,752 94,113 2 Bonds2 811,376 1,001,736 941,298 63,391 96,148 40,941 58,233 92,742 57,476 69,875 88,102 By type of offering 3 Sold in the United States 708,188 923,771 818,683 56,727 87,603 36,724 45,986 75,271 40,753 56,133 7733,,551166 4 Sold abroad 103,188 77,965 122,615 6,664 8,545 4,217 12,247 17,471 16,723 13,742 14,585 MEMO 5 Private placements, domestic n.a. n.a. n.a. 65 0 228 2,694 3,391 1,038 241 376 By industry qroup 6 Nonfinancial 222,603 307,935 293,963 26,598 28,086 8,060 20,832 29,412 15,885 17,947 24,483 7 Financial 588,773 693,801 647,335 36,792 68,062 32,881 37,401 63,331 41,592 51,928 63,619 8 Stocks3 173,330 205,605 217,868 22,288 16,945 21,022 4,706 7,873 8,035 12,877 6,284 By type of offering 9 Public 117,880 126,755 131,568 22,288 16,945 21,022 4,706 7,873 8,035 12,877 66,,228844 10 Private placement4 55,450 78,850 86,300 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 60,386 74,113 110,284 21,796 15,679 16,763 4,522 6,521 7,773 8,645 66,,009999 12 Financial 57,494 52,642 21,284 492 1,266 4,259 184 1,352 262 4,232 185 1. Figures represent gross proceeds of issues maturing in more than one year; they are the principal amount or number of units calculated by multiplying by the offering price. Figures exclude secondary offerings, employee stock plans, investment companies other than closedend, intracorporate transactions, and Yankee bonds. Stock data include ownership securities issued by limited partnerships. 2. Monthly data include 144(a) offerings. 3. Monthly data cover only public offerings. 4. Data are not available. SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic Nonfinancial Statistics • January 2001 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2000 IItteemm 11999988 11999999 Mar, Apr. May June July Aug. Sept.r Oct. 1 Sales of own shares2 1,461,430 1,791,894 269,118 202,248 172,718 181,866 166,815 179,890 159,809 169,585 2 Redemptions of own shares 1,217,022 1,621,987 243,194 176,671 162,984 161,462 151,717 159,027 147,644 154,836 3 Net sales3 244,408 169,906 25,924 25,577 9,735 20,404 15,098 20,864 12,166 14,749 4 Assets4 4,173,531 5,233,191 5,606,254 5,391,187 5,232,319 5,458,914 5,392,308 5,745,264 5,550,176 5,435,666 5 Cash5 191,393 219,189 221,623 254,819 260,426 259,241 258,472 261,967 280,192 302,574 6 Other 3,982,138 5,014,002 5,384,630 5,136,368 4,971,892 5,199,673 5,133,836 5,483,298 5,269,984 5,133,092 1. Data include stock, hybrid, and bond mutual funds and exclude money market mutual 4. Market value at end of period, less current liabilities. funds. 5. Includes all U.S. Treasury securities and other short-term debt securities. 2. Excludes reinvestment of net income dividends and capital gains distributions and share SOURCE. Investment Company Institute. Data based on reports of membership, which issue of conversions from one fund to another in the same group. comprises substantially all open-end investment companies registered with the Securities and 3. Excludes sales and redemptions resulting from transfers of shares into or out of money Exchange Commission. Data reflect underwritings of newly formed companies after their market mutual funds within the same fund family. initial offering of securities. 1.48 CORPORATE PROFITS AND THEIR DISTRIBUTION Billions of dollars; quarterly data at seasonally adjusted annual rates 1998 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Q4 Ql Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 833.8 815.0 856.0 803.4 852.0 836.8 842.0 893.2 936.3 963.6 971.2 2 Profits before taxes 792.4 758.2 823.0 742.3 797.6 804.5 819.0 870.7 920.7 942.5 946.0 3 Profits-tax liability 237.2 244.6 255.9 239.4 247.8 250.8 254.2 270.8 286.3 292.0 291.9 4 Profits after taxes 555.2 513.6 567.1 502.9 549.9 553.7 564.8 599.9 634.4 650.4 654.1 5 Dividends 335.2 351.5 370.7 356.1 361.1 367.2 373.9 380.6 387.3 393.0 400.1 6 Undistributed profits 220.0 162.1 196.4 146.9 188.7 186.5 190.9 219.3 247.1 257.4 254.0 7 Inventory valuation 8.4 17.0 -9.1 19.9 11.4 -8.9 -19.7 -19.2 -25.0 -13.6 -4.7 8 Capital consumption adjustment 32.9 39.9 42.1 41.2 42.9 41.2 42.7 41.6 40.6 34.7 29.9 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 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Ql Q2 Q3 Q4 Ql Q2 Q3 ASSETS 1 Accounts receivable, gross2 663.3 711.7 811.5 733.8 756.5 776.3 811.5 848.7 884.4 Consumer 256.8 261.8 279.8 261.7 269.2 271.0 279.8 285.4 294.1 3 Business 318.5 347.5 405.2 362.8 373.7 383.0 405.2 434.6 454.1 4 Real estate 87.9 102.3 126.5 109.2 113.5 122.3 126.5 128.8 136.2 5 LESS: Reserves for unearned income 52.7 56.3 53.5 52.9 53.4 54.0 53.5 54.0 57.0 6 Reserves for losses 13.0 13.8 13.5 13.4 13.4 13.6 13.5 14.0 14.4 7 Accounts receivable, net 597.6 641.6 744.6 667.6 689.7 708.6 744.6 780.7 813.1 8 All other 312.4 337.9 406.3 363.3 373.2 368.5 406.3 412.7 419.4 n.a. 9 Total assets 910.0 979.5 1,150.9 1,030.8 1,062.9 1,077.2 1,150.9 1,193.4 1,232.4 LIABILITIES AND CAPITAL 10 Bank loans 24.1 26.3 35.1 24.8 25.1 27.0 35.1 28.5 33.3 11 Commercial paper 201.5 231.5 227.9 222.9 231.0 205.3 227.9 230.2 234.2 Debt 12 Owed to parent 64.7 61.8 123.8 64.6 65.4 84.5 123.8 145.1 136.8 13 Not elsewhere classified 328.8 339.7 397.0 366.7 383.1 396.2 397.0 412.0 445.1 14 All other liabilities 189.6 203.2 222.7 220.3 226.1 216.0 222.7 247.6 249.6 15 Capital, surplus, and undivided profits 101.3 117.0 144.5 131.5 132.2 148.2 144.5 130.1 135.3 16 Total liabilities and capital 910.0 979.5 1,150.9 1,030.8 1,062.9 1,077.2 1,150.9 1,193.4 1,234.4 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 A3 3 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2000 TTyyppee ooff ccrreeddiitt 11999977 11999988 11999999 Apr. May June July Aug. Sept. Seasonally adjusted 1 Total 810.5 875.8 993.9 l,061.6r l,074.9r l,076.9r l,089.1r 1,094.1 1,107.2 2 Consumer 327.9 352.8 385.3 398.4r 400.7 401.4 405.9r 411.1 419.6 3 Real estate 121.1 131.4 154.7 161.0r 164.7r 163.7r 167.5 169.0 170.9 4 Business . 361.5 391.6 453.9 502.2 509.5 511.7r 515.8 514.1 516.7 Not seasonally adjusted 5 Total 818.1 884.0 1,003.2 l,061.9r l,074.8r l,082.3r l,082.2r 1,087.9 1,101.9 6 Consumer 330.9 356.1 388.8 394.8r 399.4 403.9 408.3' 412.3 420.9 7 Motor vehicles loans 87.0 103.1 114.7 120.9 124.1 126.5 129.4 130.7 130.1 8 Motor vehicle leases 96.8 93.3 98.3 102.8 104.1 103.9 104.4 105.4 104.6 9 Revolving2 38.6 32.3 33.8 31.9 31.6 33.1 33.6 33.6 35.4 10 Other3 34.4 33.1 33.1 31.2 31.9 30.7 31.5' 32.3 31.7 Securitized assets4 11 Motor vehicle loans 44.3 54.8 71.1 72.1 71.9 74.1 74.5 76.2 78.8 12 Motor vehicle leases 10.8 12.7 9.7 8.5 8.2 7.9 7.6 7.4 7.2 13 Revolving .0 8.7 10.5 10.5' 11.1 11.1 10.9 10.7 17.2 14 Other 19.0 18.1 17.7 16.8 16.5 16.6 16.4 16.2 16.0 15 Real estate 121.1 131.4 154.7 161.0r 164.7r 163.7r 167.5 169.0 170.9 16 One- to four-family 59.0 75.7 88.3 93.6 97.3 96.6r 100.5 101.7 100.9 17 Other 28.9 26.6 38.3 39.0 39.4 39.6 39.7 40.2 41.5 Securitized real estate assets4 18 One- to four-family 33.0 29.0 28.0 28.1r 21.1' 27.4r 27.1 26.8 26.5 19 Other .2 .1 .2 .2 .2 .2 .2 .2 1.9 20 Business 366.1 396.5 459.6 506.1 510.7 514.7' 506.4 506.7 510.1 21 Motor vehicles 63.5 79.6 87.8 93.6 94.8 94.5 89.4 89.6 94.1 22 Retail loans 25.6 28.1 33.2 32.7 33.3 33.8 34.1 34.3 34.8 2.3 Wholesale loans5 27.7 32.8 34.7 38.9 39.5 38.4 32.9 32.6 35.5 24 Leases 10.2 18.7 19.9 22.0 22.0 22.3 22.3 22.7 23.7 25 Equipment 203.9 198.0 221.9 243.1 247.3 250.0' 248.6 250.0 256.7 26 Loans 51.5 50.4 52.2 55.6 55.9 56.7' 54.8 54.3 55.8 27 Leases 152.3 147.6 169.7 187.5 191.5 193.3' 193.9 195.8 200.9 28 Other business receivables6 51.1 69.9 95.5 107.4 106.6 109.7' 109.4 108.3 104.9 Securitized assets4 29 Motor vehicles 33.0 29.2 31.5 32.3 32.0 31.7 29.8 29.6 27.1 30 Retail loans 2.4 2.6 2.9 3.1 3.0 2.9 2.8 2.7 2.4 31 Wholesale loans 30.5 24.7 26.4 26.8 26.7 26.4 24.6 24.5 22.3 .32 Leases .0 1.9 2.1 2.4 2.4 2.4 2.4 2.4 2.4 33 Equipment 10.7 13.0 14.6 21.7 21.5 22.3' 22.5 22.4 21.4 34 Loans 4.2 6.6 7.9 15.2 15.0 15.8 16.0 15.9 15.1 35 Leases 6.5 6.4 6.7 6.5 6.5 6.4' 6.5 6.5 6.4 36 Other business receivables6 4.0 6.8 8.4 8.0 8.4 6.6 6.8 6.8 5.8 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidiarbreakdowns have been obtained for some components. In addition, previously unavailable ies of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic NonfinancialS tatistics • January 2001 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2000 IItteemm 11999977 11999988 11999999 Apr. May June July Aug. Sept. Oct. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 224.2 232.2 238.6 235.8 237.0 241.9 240.2 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 170.2 176.3 178.3 178.3 179.7 182.5 180.4 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 77.9 78.0 76.9 77.7 77.7 77.1 77.2 4 Maturity (years) 28.2 28.4 28.8 29.1 29.2 29.2 29.3 29.3 29.2 29.2 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .68 .71 .69 .66 .68 .70 .69 Yield (percent per year) 6 Contract rate1 7.57 6.95 6.94 7.52 7.44 7.40 7.41 7.44 7.41 7.43 7 Effective rate1-3 7.73 7.08 7.06 7.63 7.55 7.50 7.51 7.54 7.52 7.53 8 Contract rate (HUD series)4 7.76 7.00 7.45 8.29 8.26 n.a. n.a. n.a. n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.33 8.58 n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 7.26 6.43 7.03 7.64 8.06 7.69 7.59 7.44 7.43 7.30 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 539,181 545,803 552,166 561,045 568,187 574,087 586,756 12 FHA/VA insured 31,925 33,770 55,318 58,899 59,140 59,703 60,397 60,150 59,961 60,329 13 Conventional 284,753 380,745 468,623 480,282 486,663 492,463 500,648 508,037 514,126 526,427 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 6,257 12,872 12,842 15,128 13,352 11,501 18,444 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 12,524 10,450 11,825 16,660 14,253 16,143 17,435 16 To sell8 1,298 1,880 5,900 1,340 1,594 1,254 436 236 693 268 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 164,421 255,010 324,443 339,207 347,370 350,836 354,020 357,002 361,624 365,198 18 FHA/VA insured 177 785 1,836 1,987 3,116 2,892 2,858 2,903 3,517 3,530 19 Conventional 164,244 254,225 322,607 337,220 344,254 347,944 351,162 354,099 358,107 361,668 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 8,393 15,741 12,271 10,912 16,056 21,748 16,195 21 Sales 114,258 250,565 233,031 8,077 15,261 11,806 10,539 15,558 21,189 15,614 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 8,750 13,807 13,596 10,803 17,468 19,481 17,915 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mortgages; from U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured exclude swap activity. by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A3 5 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1999 2000 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999966 11999977 11999988 Q2 Q3 Q4 Qi Q2 1 All holders 4,865,412 5,197,838 5,722,645 6,015,365 6,224,771 6,375,447 6,489,770 6,659,097 By type of property 2 One- to four-family residences 3,716,055 3,967,842 4,353,048 4,559,021 4,690,310 4,786,609 4,862,747 4,982,853 3 Multifamily residences 288,579 301,838 329,813 348,658 359,323 373,189 381,699 392,919 4 Nonfarm, nonresidential 773,643 837,859 943,278 1,008,048 1,073,743 1,112,686 1,141,577 1,175,641 5 Farm 87,134 90,299 96,506 99,638 101,395 102,962 103,748 107,685 By type of holder 6 Major financial institutions 1,981,886 2,083,881 2,194,813 2,242,431 2,321,356 2,394,923 2,456,786 2,551,751 7 Commercial banks2 1,145,389 1,245,315 1,337,217 1,361,365 1,418,819 1,495,502 1,546,816 1,614,307 8 One- to four-family 677,603 745,510 797,492 790,372 827,291 879,552 904,581 948,496 9 Multifamily 45,451 49,670 54,116 60,529 63,964 67,591 72,431 75,713 10 Nonfarm, nonresidential 397,452 423,148 456,574 479,930 496,246 516,520 537,131 556,382 11 Farm 24,883 26,986 29,035 30,536 31,320 31,839 32,673 33,717 12 Savings institutions' 628,335 631,726 643,957 656,518 676,346 668,634 680,745 701,992 13 One- to four-family 513,712 520,682 533,918 544,962 560,622 549,072 560,046 578,641 14 Multifamily 61,570 59,540 56,821 55,016 57,282 59,138 57,759 59,142 15 Nonfarm, nonresidential 52,723 51,150 52,801 56,096 57,983 59,948 62,447 63,691 16 Farm 331 354 417 443 459 475 493 518 17 Life insurance companies 208,162 206,840 213,640 224,548 226,190 230,787 229,225 235,452 18 One- to four-family 6,977 7,187 6,590 7,292 7,432 5,934 5,874 4,826 19 Multifamily 30,750 30,402 31,522 31,800 31,998 32,818 32,602 33,669 20 Nonfarm, nonresidential 160,315 158,779 164,004 173,495 174,571 179,048 177,870 182,514 21 Farm 10,120 10,472 11,524 11,961 12,189 12,987 12,879 14,444 22 Federal and related agencies 295,192 286,194 293,613 289,519 322,572 322,352 323,145 334,715 23 Government National Mortgage Association 2 8 7 8 8 7 7 7 24 One- to four-family 2 8 7 8 8 7 7 7 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 41,596 41,195 40,851 40,766 73,705 73,871 72,899 72,896 27 One- to four-family 17,303 17,253 16,895 16,653 16,583 16,506 16,456 16,435 28 Multifamily 11,685 11,720 11,739 11,735 11,745 11,741 11,732 11,729 29 Nonfarm, nonresidential 6,841 7,370 7,705 7,943 41,068 41,355 40,509 40,554 30 Farm 5,768 4,852 4,513 4,435 4,308 4,268 4,202 4,179 31 Federal Housing and Veterans' Administrations 6,244 3,811 3,674 3,490 3,889 3,712 3,794 3,845 32 One- to four-family 3,524 1,767 1,849 1,623 2,013 1,851 1,847 1,832 33 Multifamily 2,719 2,044 1,825 1,867 1,876 1,861 1,947 2,013 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 3/ 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 2,431 724 361 189 163 152 98 72 40 One- to four-family 365 109 54 28 24 23 15 11 41 Multifamily 413 123 61 32 28 26 17 12 42 Nonfarm, nonresidential 1,653 492 245 129 111 103 67 49 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 168,813 161,308 157,675 155,637 153,172 151,500 150,312 155,364 45 One- to four-family 155,008 149,831 147,594 145,033 142,982 141,195 139,986 144,335 46 Multifamily 13,805 11,477 10,081 10,604 10,190 10,305 10,326 11,029 47 Federal Land Banks 29,602 30,657 32,983 33,666 34,217 34,187 34,142 34,820 48 One- to four-family 1,742 1,804 1,941 1,981 2,013 2,012 2,009 2,039 49 Farm 0 0 0 0 0 0 0 0 50 Federal Home Loan Mortgage Corporation 46,504 48,454 57,085 54,282 55,695 56,676 57,009 56,972 51 One- to four-family 41,758 42,629 49,106 43,574 44,010 44,321 43,384 42,892 52 Multifamily 4,746 5,825 7,979 10,708 11,685 12,355 13,625 14,080 53 Mortgage pools or trusts5 4,865,412 5,197,838 5,722,645 6,015,365 6,224,771 6,375,447 6,489,770 6,659,097 54 Government National Mortgage Association 506,246 536,879 537,446 553,196 569,038 582,263 589,203 590,903 55 One- to four-family 494,064 523,225 522,498 537,287 552,670 565,189 571,517 572,856 56 Multifamily 12,182 13,654 14,948 15,909 16,368 17,074 17,686 18,047 57 Federal Home Loan Mortgage Corporation 554,260 579,385 646,459 718,085 738,581 749,081 757,106 768,641 58 One- to four-family 551,513 576,846 643,465 714,844 735,088 744,619 752,607 763,890 59 Multifamily 2,747 2,539 2,994 3,241 3,493 4,462 4,499 4,751 60 Federal National Mortgage Association 650,779 709,582 834,517 911,435 938,484 960,883 975,815 995,815 61 One- to four-family 633,209 687,981 804,204 877,863 903,531 924,941 938,898 957,584 62 Multifamily 17,570 21,601 30,313 33,572 34,953 35,942 36,917 38,231 63 Farmers Home Administration4 3 2 1 1 0 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 0 0 0 0 68 Private mortgage conduits 329,559 413,502 571,340 627,402 645,084 662,565 678,156 686,037 69 One- to four-family6 258,800 316,400 412,700 447,938 455,276 462,600 471,390 471,000 70 Multifamily 16,369 21,591 34,323 39,435 40,936 42,628 43,835 44,931 71 Nonfarm, nonresidential 54,390 75,511 124,317 140,029 148,873 157,337 162,930 170,106 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 547,486 588,413 644,456 673,297 689,656 703,379 709,560 731,235 74 One- to four-family 360,476 376,574 413,770 428,202 439,219 446,771 449,496 467,572 75 Multifamily 68,572 71,651 73,081 74,090 74,629 77,016 78,074 79,272 76 Nonfarm, nonresidential 100,269 121,409 137,632 150,428 154,892 158,375 160,622 162,345 77 Farm 18,169 18,779 19,974 20,577 20,916 21,217 21,368 22,046 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 NonfinancialS tatistics • January 2001 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2000 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999 Apr. May June July Aug. Sept. Seasonally adjusted 1 Total 1,234,461 1,301,023 1,393,657 1,435,583 1,447,368 1,462,821 1,469,515 1,481,833 1,492,934 2 Revolving 531,163 560,504 595,610 622,223 628,764 634,652 638,172 644,856 649,297 3 Nonrevolving2 703,297 740,519 798,047 813,360 818,604 828,170 831,344 836,976 843,637 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,426,151 1,423,396 1,434,251 1,454,035 1,462,042 1,483,787 1,495,627 By major holder 5 Commercial banks 512,563 508,932 499,758 499,696 502,030 506,245 505,314 518,787 521,768 6 Finance companies 160,022 168,491 181,573 184,050 187,610 190,268 194,438 196,555 197,276 / Credit unions 152,362 155,406 167,921 171,038 173,471 176,030 178,034 180,679 181,597 8 Savings institutions 47,172 51,611 61,527 59,628 60,289 60,951 61,188 61,426 62,580 9 Nonfinancial business 78,927 74,877 80,311 72,973 73,523 73,500 71,951 73,024 72,092 10 Pools of securitized assets' 313,057 372,425 435,061 436,011 437,328 447,041 451.117 453,316 460,314 By major type of credit4 11 Revolving 555,858 586,528 623,245 615,354 621,127 627,909 630,402 641,035 645,820 12 Commercial banks 219,826 210,346 189,352 188,691 192,352 194,793 194,591 204,406 202,362 13 Finance companies 38,608 32,309 33,814 31,928 31,628 33,063 33,565 33,558 35,405 14 Credit unions 19,552 19,930 20,641 19,851 19,930 20,172 20,476 20,796 20,785 15 Savings institutions 11,441 12,450 15,838 15,135 15,295 15,455 15,419 15,383 16,327 16 Nonfinancial business 44,966 39,166 42,783 37,418 37,766 37,098 36,078 36,669 35,817 1/ Pools of securitized assets3 221,465 272,327 320,817 322,331 324,156 327,328 330,273 330,223 335,126 18 Nonrevolving 708,245 745,214 802,906 808,042 813,124 826,126 831,640 842,752 849,807 19 Commercial banks 292,737 298,586 310,406 311,005 309,678 311,452 310,723 314,381 319,405 20 Finance companies 121,414 136,182 147,759 152,122 155,982 157,205 160,873 162,997 161,871 21 Credit unions 132,810 135,476 147,280 151,187 153,541 155,858 157,558 159,883 160,814 22 Savings institutions 35,731 39,161 45,689 44,493 44,994 45,496 45,769 46,043 46,253 23 Nonfinancial business 33,961 35,711 37,528 35,555 35,757 36,402 35,873 36,355 36.274 24 Pools of securitized assets3 91,592 100,098 114,244 113,680 113,172 119,713 120,844 123,093 125,190 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 2000 IItteemm 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept. INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 n.a. n.a. 9.21 n.a. n.a. 9.62 n.a. 2 24-month personal 13.90 13.74 13.39 n.a. n.a. 13.88 n.a. n.a. 13.85 n.a. Credit card plan 3 All accounts 15.77 15.71 15.21 n.a. n.a. 15.39 n.a. n.a. 15.98 n.a. 4 Accounts assessed interest 15.57 15.59 14.81 n.a. n.a. 14.74 n.a. n.a. 15.35 n.a. Auto finance companies 5 New car 7.12 6.30 6.66 6.76 6.38 6.51 6.40 6.55 7.46 7.16 6 Used car 13.27 12.64 12.60 13.45 13.52 13.47 13.58 13.64 13.70 13.91 OTHER TERMS3 Maturity (months) 1 New car 54.1 52.1 52.7 53.1 53.8 53.5 55.6 55.6 55.7 55.9 8 Used car 51.0 53.5 55.9 57.1 57.1 57.1 57.3 57.2 57.2 57.0 Loan-to-value ratio 9 New car 92 92 92 93 93 93 92 92 92 91 10 Used car 99 99 99 99 98 99 99 100 100 100 Amount financed (dollars) 11 New car 18,077 19,083 19,880 20,395 20,542 20,621 20,349 20,406 20,664 21,010 12 Used car 12,281 12,691 13,642 13,666 13,871 14,132 14,245 14,269 14,166 13,950 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Ql Q2 Q3 Q4 Ql Q2r Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . .. 559.3 711.3 731.4 804.3 1,042.9 l,277.7r 938.8r l,170.1r l,094.8r 940.7r 958.3 758.5 By sector and instrument 2 Federal government 155.9 144.4 145.0 23.1 -52.6 -83.4 -98.5 -71.4 -31.5 -215.5 -414.0 -219.0 3 Treasury securities 155.7 142.9 146.6 23.2 -54.6 -81.9 -99.1 -71.5 -31.5 -213.5 -415.8 -216.6 4 Budget agency securities and mortgages .2 1.5 -1.6 -.1 2.0 -1.5 .6 .0 .0 -2.1 1.8 -2.4 5 Nonfederal 403.4 566.9 586.3 781.2 1,095.5 l,361.2r l,037.3r l,241.6r l,126.3r l,156.3r 1,372.3 977.5 By instrument 6 Commercial paper 21.4 18.1 -.9 13.7 24.4 58.3 -2.6 49.8 44.0 36.2 116.9 62.5 7 Municipal securities and loans -35.9 -48.2 2.6 71.4 96.8 92.1 56.8 71.3 52.5 8.9 34.0 29.8 8 Corporate bonds 23.3 91.1 116.3 150.5 218.7 274.0 287.6 202.8 155.2 186.2 153.8 184.4 9 Bank loans n.e.c 75.2 103.7 70.5 106.5 108.2 86.0 24.0 112.3 108.6 131.9 163.1 32.0 10 Other loans and advances 34.0 67.2 33.5 69.1 74.3 148.0 2.3 79.2 55.4 162.1 104.3 -17.3 11 Mortgages 160.5 196.0 275.7 317.5 505.5 572.2r 607.8r 650.0r 601.lr 488.9r 665.7 565.7 12 Home 183.2 180.7 242.5 252.3 386.9 411.2r 440. r 479.4r 398.3r 343.9r 496.6 443.4 13 Multifamily residential -3.6 5.8 9.4 8.3 20.3 35.5 33.1 44.2 47.9 32.3r 43.9 23.6 14 Commercial -21.3 7.9 21.3 53.7 92.0 122.0 125.6 119.4 152.4 105.8r 116.3 90.8 15 Farm 2.2 1.6 2.6 3.2 6.2 3.6 9.0 7.0 2.5 6.9 8.9 7.9 16 Consumer credit 124.9 138.9 88.8 52.5 67.6 130.5 61.4 76.2 109.5 142.0r 134.6 120.4 By borrowing sector 17 Household 318.5r 363.2r 358.1r 345.8r 488.T 562.7r 526.4r 589.5r 513.6r 534.7r 650.4 564.8 18 Nonfinancial business 131.2r 255.lr 235.0r 379.3r 527.1r 718.8r 467.2r 599.6r 579.lr 617.8r 701.1 387.5 19 Corporate 123.7r 228.0r 148.8r 266. lr 416.3r 625.2r 371,6r 468.2r 456.lr 500.5r 581.4 292.7 20 Nonfarm noncorporate 3.1r 24.3r 81.4r 107.0r 103.2r 88.6r 93.9r 122.9r 117.4r 102.5r 111.4 87.2 21 Farm 4.4 2.9 4.8 6.2 7.7 4.9 1.7 8.5 5.6 14.7 8.3 7.6 22 State and local government -46.2 -51.5 -6.8 56.1 80.3 79.8 43.6 52.5 33.6 3.8 20.8 25.2 23 Foreign net borrowing in United States -13.9 78.5 88.4 71.8 43.3 30.7 -24.5 77.3 17.6 116.9 -10.9 61.6 24 Commercial paper -26.1 13.5 11.3 3.7 7.8 18.0 -27.5 41.1 33.6 56.7 10.9 5.9 25 Bonds 12.2 57.1 67.0 61.4 34.8 15.4 .2 44.0 -2.7 45.7 -29.6 36.0 26 Bank loans n.e.c 1.4 8.5 9.1 8.5 6.7 .9 5.6 -6.6 2.3 15.4 5.7 11.8 27 Other loans and advances -1.4 -.5 1.0 -1.8 -6.0 -3.5 -2.8 -1.1 -15.5 -.9 2.0 7.8 28 Total domestic plus foreign 545.3 789.8 819.8 876.1 1,086.2 l,308.5r 914.3r l,247.5r l,112.4r l,057.6r 947.4 820.1 Financial sectors 29 Total net borrowing by financial sectors 468.4 453.9 545.8 653.7 1,073.9 1,228.8 995.3 1,064.2 1,063.4 618.3 817.0 715.4 By instrument 30 Federal government-related 287.5 204.1 231.5 212.8 470.9 589.5 576.6 651.6 550.3 249.2 370.4 504.4 31 Government-sponsored enterprise securities 176.9 105.9 90.4 98.4 278.3 193.0 304.7 407.1 367.9 104.9 248.9 279.3 32 Mortgage pool securities 115.4 98.2 141.1 114.5 192.6 396.6 271.9 244.5 182.4 144.3 121.6 225.1 33 Loans from U.S. government -4.8 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 180.9 249.8 314.4 440.9 603.0 639.2 418.8 412.6 513.0 369.2 446.6 211.0 35 Open market paper 40.5 42.7 92.2 166.7 161.0 78.7 57.3 89.9 479.0 130.9 77.4 65.2 36 Corporate bonds 121.8 195.9 173.8 210.5 296.9 473.8 254.8 179.5 -21.0 166.5 230.7 177.2 37 Bank loans n.e.c -13.7 2.5 12.6 13.2 30.1 -6.7 11.0 -5.9 -55.6 .3 5.4 -.7 38 Other loans and advances 22.6 3.4 27.9 35.6 90.2 73.3 107.9 139.8 107.5 64.4 123.1 -36.7 39 Mortgages 9.8 5.3 7.9 14.9 24.8 20.1 -12.3 9.4 3.2 7.0 10.0 6.0 By borrowing sector 40 Commercial banking 20.1 22.5 13.0 46.1 72.9 46.1 61.5 107.0 54.1 72.4 113.2 17.4 41 Savings institutions 12.8 2.6 25.5 19.7 52.2 75.2 59.2 51.9 5.8 40.6 59.1 -17.2 42 Credit unions .2 -.1 .1 .1 .6 1.5 1.4 2.8 3.3 -2.9 .9 1.1 43 Life insurance companies .3 -.1 1.1 .2 .7 3.3 3.0 1.1 -4.4 -.7 -1.1 -.3 44 Government-sponsored enterprises 172.1 105.9 90.4 98.4 278.3 193.0 304.7 407.1 367.9 104.9 248.9 279.3 45 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 396.6 271.9 244.5 182.4 144.3 121.6 225.1 46 Issuers of asset-backed securities (ABSs) 76.5 142.4 150.8 202.2 321.4 289.7 301.5 220.5 124.2 166.0 154.8 136.8 47 Finance companies 48.6 50.2 45.9 48.7 43.0 77.0 90.5 -17.2 99.2 52.3 103.9 96.9 48 Mortgage companies -11.5 -2.2 4.1 -4.6 1.6 -4.6 5.1 -6.1 6.2 -3.0 2.7 -.3 49 Real estate investment trusts (REITs) 10.2 4.5 11.9 39.6 62.7 25.6 -19.7 7.9 11.3 11.5 9.8 -2.4 50 Brokers and dealers .5 -5.0 -2.0 8.1 7.2 -31.1 -17.4 16.9 -37.3 44.4 -.7 25.2 51 Funding corporations 23.1 34.9 64.1 80.7 40.7 156.5 -66.2 27.9 250.6 -11.4 4.0 -46.2 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • January 2001 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Qi Q2 Q3 Q4 Ql Q2" Q3 All sectors 52 Total net borrowing, all sectors 1,013.8 1,243.8 1,365.6 1,529.8 2,160.1 2,537.2r l,909.6r 2,311.7r 2,175.8r l,676.0r 1,764.4 1,535.5 53 Open market paper 35.7 74.3 102.6 184.1 193.1 155.1 27.2 180.7 556.6 223.7 205.1 133.6 54 U.S. government securities 448.1 348.5 376.5 235.9 418.3 506.1 478.1 580.1 518.9 33.6 -43.5 285.4 55 Municipal securities -35.9 -48.2 2.6 71.4 96.8 92.1 56.8 71.3 52.5 8.9 34.0 29.8 56 Corporate and foreign bonds 157.3 344.1 357.0 422.4 550.4 763.1 542.6 426.3 131.5 398.4 355.0 397.7 57 Bank loans n.e.c 62.9 114.7 92.1 128.2 145.0 80.1 40.6 99.8 55.2 147.7 174.2 43.1 58 Other loans and advances 50.4 70.1 62.5 102.8 158.5 217.8 107.5 217.9 147.3 225.7 229.4 -46.2 59 Mortgages 170.3 201.3 283.6 332.4 530.3 592.4r 595.6" 659.4r 604.3r 496.0" 675.6 571.7 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 130.5 61.4 76.2 109.5 142.0r 134.6 120.4 Funds raised through mutual funds and corporate equities 61 Total net issues 113.4 131.5 231.9 181.2 100.0 154.2 178.5 120.4 172.8 409.3" 115.0 150.0 62 Corporate equities 12.8 -16.0 -5.7 -83.9 -174.6 -86.4 -33.9 -7.0 .0 103.2" -122.6 -111.5 63 Nonfinancial corporations -44.9 -58.3 -69.5 -114.4 -267.0 -52.1 -338.4 -128.4 -55.0 60.8" -248.8 -87.6 64 Foreign shares purchased by U.S. residents 48.1 50.4 82.8 57.6 101.2 -19.8 284.4 121.7 71.3 63.3 135.0 13.0 65 Financial corporations 9.6 -8.1 -19.0 -27.1 -8.9 -14.5 20.2 -.3 -16.3 -20.8 -8.8 -36.9 66 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 240.6 212.4 127.5 172.8 306.1" 237.6 261.5 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 11999966 11999977 11999988 Ql Q2 Q3 Q4 Ql Q2R Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,013.8 1,243.8 1,365.6 1,529.8 2,160.1 2,537.2r l,909.6r 2,311.7r 2,175.8r l,676.0r 1,764.4 1,535.5 7 Domestic nonfederal nonfinancial sectors 210.0 -61.3 80.5 17.1 131.8 472.8R 328.4R 230.0R -6.4R - 143.9R 137.1 -323.2 3 Household 246.8 34.1 128.7 31.8 -16.7 270.5R 247.7R 221.8R 8.1R ~239.1R 88.6 -299.2 4 Nonfinancial corporate business 17.7 -8.8 -10.2 -12.7 14.0 67.0 — 1.4R 49.8R - 18.3R 90.4R 4.3 -9.0 5 Nonfarm noncorporate business .6 4.7 -4.3 -2.1 .1 2.8 1.2 .8 1.4 2.6 2.8 3.8 6 State and local governments -55.0 -91.4 -33.7 .1 134.5 132.5 81.0 -42.4 2.4 2.3 41.4 -19.0 7 Federal government -27.4 -.2 -7.4 5.1 13.5 17.0 6.7 11.2 -11.8 6.2 7.8 15.6 8 Rest of the world 132.3 273.9 414.4 311.3 254.2 256.9 61.6 385.3 138.7 334.9 185.6 199.4 <3 Financial sectors 698.8 1,031.4 878.1 1,196.3 1,760.6 1,790.6R L,512.8R L,685.2R 2,055.3R L,478.7R 1,433.9 1,643.8 10 Monetary authority 31.5 12.7 12.3 38.3 21.1 64.5 59.8 20.6 -42.2 103.4 -3.9 27.3 11 Commercial banking 163.4 265.9 187.5 324.3 305.2 68.1 166.6 449.4 548.7 377.1 484.6 370.2 117 3 U.S.-chartered banks 148.1 186.5 119.6 274.9 312.0 131.5 259.4 421.9 457.7 409.2 505.6 333.1 Foreign banking offices in United States 11.2 75.4 63.3 40.2 -11.9 -53.1 -102.5 33.2 42.0 4.8 -29.9 31.5 114 5 Bank holding companies .9 -.3 3.9 5.4 -.9 -6.0 .4 -12.4 42.6 -42.2 3.5 -6.7 Banks in U.S.-affiliated areas 3.3 4.2 .7 3.7 6.0 -4.4 9.2 6.6 6.3 5.4 5.4 12.3 16 Savings institutions 6.7 -7.6 19.9 -4.7 36.3 111.0 85.3 58.1 20.2 50.2 73.0 56.5 17 Credit unions 28.1 16.2 25.5 16.8 19.0 30.9 32.7 27.5 18.8 35.6R 36.6 41.8 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 27.8R 27.8R 27.8R 21.%' 21.9R 16.8 20.6 19 Life insurance companies 72.0 100.0 69.6 104.8 76.9 78.4 68.2 36.8 30.7 57.2 52.0 51.4 20 Other insurance companies 24.9 21.5 22.5 25.2 20.4 -19.7 26.7 -14.4 -9.4 -14.0 -18.1 8.7 21 Private pension funds 45.0 20.2 -5.8 19.5 57.8 57.5 86.6 32.0 54.0 46.1 22.8 55.5 22 State and local government retirement funds 30.9 33.6 37.3 63.8 71.5 76.0 25.1 40.0 58.2 55.3 20.7 35.4 23 Money market mutual funds 30.0 86.5 88.8 87.5 244.0 215.7 -67.0 224.8 354.5 208.8 -156.2 244.9 74 Mutual funds -7.1 52.5 48.9 80.9 124.8 97.4 117.2 -13.0 -12.7 -77.8R 63.7 56.5 75 Closed-end funds -3.7 10.5 4.7 -2.9 4.5 3.1 3.1 3.1 3.1 3.1 3.1 3.1 26 Government-sponsored enterprises 117.8 86.7 84.2 94.3 261.7 189.1 251.5 280.7 221.0 138.2 229.7 208.3 27 Federally related mortgage pools 115.4 98.2 141.1 114.5 192.6 396.6 271.9 244.5 182.4 144.3 121.6 225.1 28 Asset-backed securities issuers (ABSs) 69.4 120.6 120.5 163.8 281.7 272.1 284.8 212.0 94.4 145.3 120.3 101.6 29 Finance companies 48.3 49.9 18.4 21.9 51.9 85.3 88.1 91.7 114.4 132.9 138.9 81.4 30 Mortgage companies -24.0 -3.4 8.2 -9.1 3.2 -9.1 10.2 -12.1 12.3 -6.0 5.5 -.5 31 Real estate investment trusts (REITs) -.7 1.4 4.4 20.2 -5.1 1.7 -2.2 -2.7 -7.0 -16.3 -2.5 -3.6 37 Brokers and dealers -44.2 90.1 -15.7 14.9 6.8 34.6 -119.7 -22.2 -15.9 106.9 38.0 183.5 33 Funding corporations -12.1 -15.7 13.6 47.4 -1.0 9.5R 96.2R ,6R 401.9R -33.5R 187.5 -124.1 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,013.8 1,243.8 1,365.6 1,529.8 2,160.1 2,537.2r l,909.6r 2,311.7r 2,175.8r l,676.0r 1,764.4 1,535.5 Other financial sources 35 Official foreign exchange -5.8 8.8 -6.3 .7 6.6 -14.0 -5.4 -8.5 -7.0 11..55 --1100..22 --..99 36 Special drawing rights certificates .0 2.2 -.5 -.5 .0 -4.0 .0 -4.0 -4.0 .0 -8.0 -4.0 37 Treasury currency .7 ,7R -.6' — ,7R — .8R .0 -2.1R —4.1R ,0R -2.2R -2.3 -4.2 38 Foreign deposits 52.9 35.3 85.9 108.9 2.0 113.7 110.1 69.4 52.7 258.5 -1.1 51.4 39 Net interbank transactions 89.8 10.0 -51.6 -19.7 -32.3 48.3 93.4 — 30.8R —40.7R -71. lr 177.7 -61.8 40 Checkable deposits and currency -9.7 -12.8 15.7 41.2 47.4 63.6 37.5 139.3 365.2 -219.1 -65.0 49.0 41 Small time and savings deposits -39.9 96.6 97.2 97.1 152.4 -74.8 106.6 119.1 28.0 104.3R 130.3 235.7 47 Large time deposits 19.6 65.6 114.0 122.5 92.1 18.0 42.4 102.7 359.4 149.2 108.4 145.3 43 Money market fund shares 40.5 141.2 145.4 155.9 287.2 221.3 115.3 174.3 485.5 241.0 48.2 241.9 44 Security repurchase agreements 78.2 110.5 41.4 120.9 91.3 258.0 -26.1 135.9 319.0 276.1 130.4 240.5 45 Corporate equities 12.8 -16.0 -5.7 -83.9 -174.6 -86.4 -33.9 -7.0 .0 103.2R -122.6 -111.5 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 240.6 212.4 127.5 172.8 306. lr 237.6 261.5 47 Trade payables 120.0 128.9 114.1 113111..20 27.0 121.7 225.3R 231.5R 160. lr 244.3R 114.7 160.2 48 Security credit -.1 26.7 52.4 103.3 -62.2 139.7 18.9 277.8 566.3 -99.8 58.9 49 Life insurance reserves 35.5 45.8 44.5 59.3 48.0 55.4 42.1 48.1 57.6 49.8R 59.7 47.0 50 Pension fund reserves 257.4 171.0 163.0 278.8 248.7 204.5 248.8 266.7 294.6 266. V 280.7 228.1 51 Taxes payable 2.6 6.2 16.2R 15.7R 12.0R - 1.8R 47.3R ,lr 18.2R 28.2R 22.9 .7 52 Investment in bank personal trusts 17.8 6.4R —5.3R -49.9R —42.5R -7.2r -7.1R -1.2' -6.9R -2.9R -7.6 -3.6 53 Noncorporate proprietors' equity 43.1 34.6 -3.4 -46.0r -41.4R -8.3r 21.4R -56.0r 12.3R - 15.5r -2.9 28.9 54 Miscellaneous 278.3R 503.8R 537.41" 512.5r 844.4R 406.7R l,454.9r 507.0r 596.3r 810.3' 1,120.2 1,242.4 55 Total financial sources 2,108.0r 2,756.6r 2,957.0r 3,350.0r 4,105.4r 4,030.3r 4,732.2r 4,134.6r 5,316.7r 4,830.2r 3,875.7 4,341.1 Liabilities not identified as assets (—) 56 Treasury currency -.2 — .3r - 1.6r — 1.4R — 1.4R -1.5 — 3.5r -5.9r -2.2r -6.1' -6.2 -6.7 57 Foreign deposits 43.0 25.1 59.6 107.4 -6.4 49.3 96.81 21 A' 92.5' 189.4r -62.6 21.0 58 Net interbank liabilities -2.7 -3.1 -3.3 -19.9 3.4 49.7 -4.8 -7.0 -23.7 24.4 -4.3 -18.8 59 Security repurchase agreements 73.5 25.7 4.1 64.3 61.4 213.5 54.3 77.8 — 217.4R 553.2r 5.4 128.8 60 Taxes payable 16.6 21.1 23. R 28.0r 13.9r — 8.8R 25.0r 2.1' —5.1r 13.4r -1.3 -10.0 61 Miscellaneous -114.0r — 166.5r —76.4r -69.1R -46. lr —522.5r - 131.8R -454.8r —132. LR — 342.9r -196.1 -83.9 Floats not included in assets (—) 62 Federal government checkable deposits -4.8 -6.0 .5 -2.7 2.6 -2.1 —27.0 8.6 —9.2 28.7 -3.4 -2.7 63 Other checkable deposits -2.8 -3.8 -4.0 -3.9 -3.1 -2.1 — .9 -.3 .0 .6 1.5 1.9 64 Trade credit 27.4 15.6 -21.2 -29.4 -42.1 45.6 -63.7r 75.3r 119.3r 24.5r -74.8 -68.6 65 Total identified to sectors as assets 2,072.1 2,849.0r 2,976.4r 3,276.5r 4,123.3r 4,209.1r 4,787.8r 4,410.7r 5,494.7r 4,345.0r 4,217.6 4,380.2 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 • January 2001 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Ql Q2 Q3 Q4 Ql Q2r Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 13,712.9 14,444.2 15,247.0 16,289.9 16,605.4r 16,784.8r 17,105.1r 17,445.0r 17,677.8r 17,853.8 18,054.1 By sector and instrument 2 Federal government 3,636.7 3,781.8 3,804.9 3,752.2 3,759.7 3,651.7 3,632.7 3,681.0 3,653.5 3,464.0 3,410.3 3 Treasury securities 3,608.5 3,755.1 3,778.3 3,723.7 3,731.6 3,623.4 3,604.5 3,652.8 3,625.8 3,435.7 3,382.7 4 Budget agency securities and mortgages 28.2 26.6 26.5 28.5 28.1 28.3 28.3 28.3 27.8 28.2 27.6 5 Nonfederal 10,076.1 10,662.5 11,442.1 12,537.7 12,845.7r 13,133. lr 13,472.4r 13,763.9r 14,024.3r 14,389.9 14,643.8 By instrument 6 Commercial paper 157.4 156.4 168.6 193.0 223.9 232.4 239.3 230.3 260.8 296.8 307.0 7 Municipal securities and loans 1,293.5 1,296.0 1,367.5 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 1,550.3 8 Corporate bonds 1,344.1 1,460.4 1,610.9 1,829.6 1,898.1 1,970.0 2,020.7 2,059.5 2,106.0 2,144.5 2,190.6 y Bank loans n.e.c 863.6 934.1 1,040.5 1,148.8 1,165.2 1,178.5 1,202.9 1,231.5 1,259.1 1,307.2 1,311.7 10 Other loans and advances 736.9 770.4 839.5 913.8 957.4 956.0 969.8 985.3 1,032.4 1,056.2 1,057.1 li Mortgages 4,557.9 4,833.6 5,151.1 5,656.6 5,790.9r 5,945.9r 6,151.0r 6,298.7r 6,410.8r 6,579.6 6,731.6 12 Home 3,510.5 3,719.2 3,971.5 4,358.4 4,45 l.lr 4,564. lr 4,693.6r 4,790.7r 4,866.5r 4,993.0 5,114.4 13 Multifamily residential 265.5 278.6 286.9 307.3 316.4 324.6 335.7 347.7 355.7r 366.7 372.6 14 Commercial 697.3 748.7 802.3 894.4 926.1 957.5 1,020.3 1,058.4 l,084.8r 1,113.9 1,136.6 15 Farm 84.6 87.1 90.3 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 1,319.3 1,340.4 1,370.1 1,426.2 l,416.0r 1,454.0 1,495.6 By borrowing sector 17 Household 4,898.2r 5,222.7r 5,568.8r 6,056.9r 6,138.8r 6,282.3r 6,448.5r 6,605.2r 6,678.8r 6,851.5 7,024.3 18 Nonfinancial business 4,107.7r 4,376.4r 4,753.9r 5,281.0r 5,483.8r 5,612.6r 5,781.5r 5,906.6r 6,088.3r 6,272.7 6,356.1 19 Corporate 2,913.lr 3,095.6r 3,359.8r 3,776. lr 3,957.9r 4,059.5r 4,195.9r 4,290.7r 4,445.5r 4,596.8 4,656.9 20 Nonfarm noncorporate l,049.5r l,130.9r l,237.9r 1,341.lr l,363.5r l,387.0r l,417.0r l,446.8r l,472.7r 1,500.6 1,521.7 21 Farm 145.1 149.9 156.1 163.8 162.4 166.1 168.6 169.0 170.1 175.3 177.5 22 State and local government 1,070.2 1,063.4 1,119.5 1,199.8 1,223.2 1,238.2 1,242.4 1,252.1 1,257.3 1,265.7 1,263.5 23 Foreign credit market debt held in United States 453.7 542.2 608.0 651.4 659.2 652.7 672.9 676.9 704.6 698.8 720.7 24 Commercial paper 56.2 67.5 65.1 72.9 77.2 70.1 81.8 89.2 101.6 101.2 109.8 25 Bonds 299.4 366.3 427.7 462.5 466.3 466.4 477.4 476.7 488.1 480.7 489.7 26 Bank loans n.e.c 34.6 43.7 52.1 58.9 59.1 60.5 58.8 59.4 63.3 64.7 67.6 27 Other loans and advances 63.6 64.7 63.0 57.2 56.5 55.8 55.0 51.7 51.7 52.1 53.5 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,166.5 14,986.4 15,855.0 16,941.3 17,264.6r 17,437.5r 17,778.0r 18,121.9r 18,382.5r 18,552.6 18,774.8 Financial sectors 29 Total credit market debt owed by financial sectors 4,278.8 4,824.6 5,445.2 6,519.1 6,809.0 7,073.3 7,346.8 7,607.0 7,744.5 7,964.5 8,155.8 By instrument 30 Federal government-related 2,376.8 2,608.3 2,821.1 3,292.0 3,434.1 3,580.7 3,745.9 3,884.0 3,940.3 4,035.5 4,164.5 31 Government-sponsored enterprise securities 806.5 896.9 995.3 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.0 1,680.2 1,750.0 32 Mortgage pool securities 1,570.3 1,711.4 1,825.8 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 2,414.5 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 3,374.9 3,492.6 3,601.0 3,723.0 3,804.2 3,928.9 3,991.3 35 Open market paper 486.9 579.1 745.7 906.7 926.4 940.9 963.4 1,082.9 1,115.7 1,135.2 1,151.6 36 Corporate bonds 1,204.7 1,378.4 1,555.9 1,852.8 1,968.6 2,042.8 2,091.1 2,074.6 2,114.2 2,183.2 2,234.6 37 Bank loans n.e.c 51.4 64.0 77.2 107.2 104.1 106.8 105.2 92.9 91.4 92.7 92.5 38 Other loans and advances 135.0 162.9 198.5 288.7 299.1 328.6 365.4 395.8 404.4 436.9 430.2 39 Mortgages 24.1 31.9 46.8 71.6 76.6 73.6 75.9 76.7 78.5 81.0 82.5 By borrowing sector 40 Commercial banks 102.6 113.6 140.6 188.6 187.5 202.7 224.2 230.0 242.2 265.4 263.6 41 Bank holding companies 148.0 150.0 168.6 193.5 202.6 205.5 211.8 219.3 221.4 229.3 236.9 42 Savings institutions 115.0 140.5 160.3 212.4 226.9 241.6 255.4 260.4 266.9 280.7 277.5 43 Credit unions .4 .4 .6 1.1 1.5 1.8 2.5 3.4 2.6 2.9 3.1 44 Life insurance companies .5 1.6 1.8 2.5 3.3 4.0 4.3 3.2 3.0 2.7 2.7 45 Government-sponsored enterprises 806.5 896.9 995.3 1,273.6 1,321.8 1,398.0 1,499.8 1,591.7 1,618.0 1,680.2 1,750.0 46 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 2,414.5 47 Issuers of asset-backed securities (ABSs) 712.5 863.3 1,076.6 1,398.0 1,463.1 1,539.9 1,599.1 1,632.0 1,665.8 1,706.4 1,749.0 48 Brokers and dealers 29.3 27.3 35.3 42.5 34.8 30.4 34.6 25.3 36.4 36.2 42.5 49 Finance companies 483.9 529.8 554.5 597.5 614.4 639.2 628.5 659.9 670.7 699.2 716.5 50 Mortgage companies 16.5 20.6 16.0 17.7 16.5 17.8 16.3 17.8 17.1 17.8 17.7 51 Real estate investment trusts (REITs) 44.6 56.5 96.1 158.8 165.2 160.3 162.2 165.1 167.9 170.4 169.8 52 Funding corporations 248.6 312.7 373.7 414.4 459.1 449.5 462.0 506.6 510.1 517.9 512.0 All sectors 53 Total credit market debt, domestic and foreign ... 18,445.3 19,811.0 21,300.2 23,460.4 24,073.5r 24,510.8r 25,124.9r 25,728.9r 26,126.9r 26,517.1 26,930.6 54 Open market paper 700.4 803.0 979.4 1,172.6 1,227.6 1,243.3 1,284.5 1,402.4 1,478.1 1,533.3 1,568.3 55 U.S. government securities 6,013.6 6,390.0 6,626.0 7,044.3 7,193.8 7,232.4 7,378.6 7,565.0 7,593.8 7,499.5 7,574.8 56 Municipal securities 1,293.5 1,296.0 1,367.5 1,464.3 1,491.0 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 1,550.3 57 Corporate and foreign bonds 2,848.1 3,205.1 3,594.5 4,144.9 4,333.0 4,479.2 4,589.1 4,610.8 4,708.3 4,808.3 4,914.9 58 Bank loans n.e.c 949.6 1,041.7 1,169.8 1,314.9 1,328.3 1,345.7 1,366.9 1,383.8 1,413.7 1,464.6 1,471.7 59 Other loans and advances 935.4 998.0 1,101.0 1,259.6 1,313.0 1,340.3 1,390.1 1,432.7 1,488.5 1,545.2 1,540.8 60 Mortgages 4,581.9 4,865.5 5,197.9 5,728.2 5,867.6r 6,019.5r 6,226.9r 6,375.5r 6,489.3r 6,660.6 6,814.1 61 Consumer credit 1,122.8 1,211.6 1,264.1 1,331.7 1,319.3 1,340.4 1,370.1 1,426.2 l,416.0r 1,454.0 1,495.6 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 Q1 Q2 Q3 Q4 Qi Q2' Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,445.3 19,811.0 21,300.2 23,460.4 24,073.5r 24,510.8r 25,124.9r 25,728.9r 26,126.9r 26,517.1 26,930.6 7 Domestic nonfederal nonfinancial sectors 2,905.5 3,031.3 3,004.7 3,108.2 3,199.5r 3,255.5r 3,311.9r 3,434.5r 3,368.4r 3,377.1 3,303.4 Household 1,944.3 2,118.3 2,106.4 2,061.4 2,124.7r 2,155.3r 2,208.2r 2,318.5r 2,252.7r 2,244.2 2,174.1 4 Nonfinancial corporate business 280.4 270.2 257.5 271.5 266.1 268.5r 284.7r 295.7r 294.7r 298.3 300.8 Nonfarm noncorporate business 42.3 38.0 35.9 35.9 36.6 36.9 37.1 37.5 38.1 38.8 39.8 6 State and local governments 638.6 604.8 605.0 739.4 772.1 794.8 781.9 782.8 782.9 795.8 788.7 7 Federal government 207.5 200.2 205.5 219.1 223.3 225.0 260.7 258.0 259.6 261.5 265.4 8 Rest of the world 1,531.1 1,926.6 2,257.3 2,539.8 2,608.3 2,621.3 2,718.1 2,678.0 2,765.9 2,809.7 2,860.0 9 Financial sectors 13,801.1 14,652.9 15,832.7 17,593.3 18,042.4r 18,409.0r 18,834.0r 19,358.4r 19,733.lr 20,068.7 20,501.8 10 Monetary authority 380.8 393.1 431.4 452.5 466.0 485.1 489.3 478.1 501.9 505.1 511.5 1 1 Commercial banking 3,520.1 3,707.7 4,031.9 4,335.7 4,338.4 4,383.4 4,488.3 4,643.9 4,725.0 4,847.4 4,931.2 1? U.S.-chartered banks 3,056.1 3,175.8 3,450.7 3,761.2 3,782.9 3,847.6 3,944.3 4,078.9 4,171.3 4,295.4 4,368.3 n Foreign banking offices in United States 412.6 475.8 516.1 504.2 487.8 465.7 475.3 484.1 482.0 478.1 487.6 14 Bank holding companies 18.0 22.0 27.4 26.5 25.0 25.1 22.0 32.7 22.1 23.0 21.3 15 Banks in U.S.-affiliated areas 33.4 34.1 37.8 43.8 42.7 45.0 46.7 48.3 49.6 51.0 54.0 16 Savings institutions 913.3 933.2 928.5 964.8 990.8 1,011.4 1,030.8 1,033.4 1,044.5 1,061.7 1,080.9 17 Credit unions 263.0 288.5 305.3 324.2 330.2 341.0 348.5 351.7 359.0r 370.8 381.9 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 201.r 208.0r 215.0r 222.0r 227,4r 231.7 236.8 19 Life insurance companies 1,587.5 1,657.0 1,751.1 1,828.0 1,853.5 1,869.6 1,880.4 1,886.0 1,901.5 1,913.4 1,927.9 70 Other insurance companies 468.7 491.2 515.3 535.7 530.8 537.5 533.9 531.6 528.0 523.5 525.7 71 Private pension funds 633.1 627.3 646.8 704.7 719.0 740.7 748.7 762.2 773.7 779.4 793.3 2n2 M Sta o t n e e a y n d m l a o r c k a e l t g m ov u e t r u n a m l e f n u t n r d e s ti rement funds 5 54 3 5 1 . . 5 0 5 63 6 4 8 . . 3 2 7 6 2 3 1 2 . . 9 0 7 96 0 5 3 . . 9 6 1, 7 0 2 3 2 6 . . 6 2 1, 7 0 2 0 8 1 . . 9 8 1, 7 0 3 4 8 9 . . 9 7 1, 7 1 5 4 3 7 . . 4 8 1, 7 2 6 1 7 7 . . 2 1 1, 7 1 7 5 2 9 . . 4 4 1, 7 2 8 1 1 2 . . 3 5 74 Mutual funds 771.3 820.2 901.1 1,025.9 1,050.8 1,083.7 1,083.0 1,073.1 l,053.7r 1,073.9 1,090.6 75 Closed-end funds 96.4 101.1 98.3 102.8 103.6 104.3 105.1 105.9 106.7 107.4 108.2 26 Government-sponsored enterprises 750.0 807.9 902.2 1,163.9 1,203.1 1,268.4 1,340.2 1,399.5 1,426.4 1,485.3 1,546.7 27 Federally related mortgage pools 1,570.3 1,711.4 1,825.8 2,018.4 2,112.3 2,182.7 2,246.1 2,292.3 2,322.3 2,355.4 2,414.5 78 Asset-backed securities issuers (ABSs) 653.4 773.9 937.7 1,219.4 1,280.1 1,352.7 1,409.8 1,435.3 1,463.9 1,495.8 1,529.6 79 Finance companies 526.2 544.5 566.4 618.4 639.9 660.9 678.2 713.3 747.0 780.6 795.5 30 Mortgage companies 33.0 41.2 32.1 35.3 33.0 35.6 32.5 35.6 34.1 35.5 35.4 31 Real estate investment trusts (REITs) 26.0 30.4 50.6 45.5 45.9 45.3 44.7 42.9 38.8 38.2 37.3 39 Brokers and dealers 183.4 167.7 182.6 189.4 211.4 162.9 167.0 158.6 201.1 189.3 245.2 33 Funding corporations 108.4 122.0 164.7 165.2 173.8r 204.9r 204.0r 291.9r 293.8' 342.7 315.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,445.3 19,811.0 21,300.2 23,460.4 24,073.5r 24,510.8r 25,124.9r 25,728.9r 26,126.9r 26,517.1 26,930.6 Other liabilities 35 Official foreign exchange 63.7 53.7 48.9 60.1 53.6 50.9 52.1 50.1 49.4 46.5 44.9 36 Special drawing rights certificates 10.2 9.7 9.2 9.2 8.2 8.2 7.2 6.2 6.2 4.2 3.2 37 Treasury currency 18.3r 17.7r 17.0r 16.2' 16.2r 15.7r 14.6r 14.6r 14.lr 13.4 12.4 38 Foreign deposits 418.8 521.7 619.7 639.0 667.4 694.9 712.3 725.8 790.4 790.2 803.0 39 Net interbank liabilities 290.7 240.8 219.4 189.0 182.0 207.1 199.6r 204.5' 168.lr 215.9 200.2 40 Checkable deposits and currency 1,229.1 1,244.8 1,286.1 1,333.4 1,310.5 1,353.1 1,353.8 1,484.8 1,392.9 1,409.7 1,385.7 41 Small time and savings deposits 2,279.7 2,377.0 2,474.1 2,626.5 2,637.6 2,644.6 2,665.9 2,671.2 2,728.0r 2,738.8 2,790.2 47 Large time deposits 476.9 590.9 713.4 805.5 804.3 809.0 837.5 936.1 966.5 987.4 1,026.8 43 Money market fund shares 741.3 886.7 1,042.5 1,329.7 1,411.7 1,393.5 1,444.9 1,578.8 1,666.0 1,627.1 1,697.8 44 Security repurchase agreements 660.0 701.5 822.4 913.7 980.3 970.8 999.3 1,085.4 1,155.8 1,185.1 1,239.2 45 Mutual fund shares 1,852.8 2,342.4 2,989.4 3,610.5 3,758.1 4,049.1 3,931.5 4,553.4 4,863.3r 4,759.6 4,816.4 46 Security credit 305.7 358.1 469.1 572.3 552.7 589.3 593.2 665.9 803.7 780.5 794.5 47 Life insurance reserves 566.2 610.6 665.0 718.3 735.9 749.8 756.2 783.9 799.9r 809.4 821.2 48 Pension fund reserves 5,812.8r 6,548.6r 7,8l7.4r 8,913.1r 9,065.3r 9,480.0r 9,151.1r 10,000.0r 10,230.0r 10,155.0 10,348.6 49 Trade payables 1,698.0 1,812.1 1,943.3 1,970.3 1,973.9 2,031.1r 2,095. f 2,155.0' 2,189.6r 2,218.8 2,265.7 50 Taxes payable 107.6 123.8r 139.5r 151.5r 158.8r 162.4r 167.5' 167.5r 182.3r 179.5 185.3 51 Investment in bank personal trusts 803.0 871.3r 942.5 1,001.0 l,016.5r 1,061.0" l,019.0r l,130.4r l,163.8r 1,125.6 1,124.5 52 Miscellaneous 5,953.4r 6,349.8r 6,699.6r 7,268.4r 7,267.8r 7,459. lr 7,468.8r 7,812.0r 7,984.0r 8,235.4 8,696.4 53 Total liabilities 41,733.4r 45,472.1r 50,218.5r 55,588.1r 56,674.4r 58,240.5r 58,594.5r 61,754.5r 63,280.9r 63,799.2 65,186.6 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 22.1 21.4 21.1 21.6 20.7 20.8 21.3 21.4 21.4 21.5 21.4 55 Corporate equities 8,495.7 10,255.8 13,201.3 15,427.8 15,919.1 17,060.4 16,214.9 19,576.3 20,232.0' 19,246.8 19,047.1 56 Household equity in noncorporate business 3,683.6r 3,889.2r 4,164.4r 4,414.7r 4,487.4r 4,548.8r 4,623. lr 4,704.5r 4,732.2' 4,779.1 4,848.4 Liabilities not identified as assets (—) 57 Treasury currency -5.7' -7.3r -8.6r -10.1r — 10.5r — 11.3r — 12.8r — 13.4r -14.9' -16.6 -18.2 58 Foreign deposits 360.2 437.0 538.3 548.2 560.5 584.7r 591,5r 615.0r 662.4' 646.7 652.0 59 Net interbank transactions -9.0 -10.6 -32.2 -27.0 -11.3 -10.6 -13.2 -25.5 -13.9 -11.6 -17.7 60 Security repurchase agreements 107.4 111.5 175.8 237.2 296.7 308.2 327.7 269.3 414.2' 413.9 445.0 61 Taxes payable 62.4 76.9r 92.6r 102.0r 89.8r 112.2r 96.4r 95.5r 90.8' 102.5 94.9 62 Miscellaneous —1,052.2r —1,512.3r -l,868.4r -2,404.7r —2,618.2r —2,651.5r — 2,957.4r —2,847.2r -2,992.2' -2,980.4 -2,787.4 Floats not included in assets (—) 63 Federal government checkable deposits 3.1 -1.6 -8.1 -3.9 -7.2 -12.4 -10.2 -9.9 -6.5 -5.2 -7.8 64 Other checkable deposits 34.2 30.1 26.2 23.1 18.9 22.1 14.5 22.3 18.7 22.5 15.5 65 Trade credit 196.8 174.6 135.5 94.5 56.3 19.4r 37.0r 136.1' 92.3' 51.4 34.5 66 Total identified to sectors as assets 54,237.8r 60,340.1r 68,554.3r 76,892.9r 78,726.6r 81,509.7r 81,380.2r 87,814.5r 90,015.5r 89,623.3 90,692.7 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. 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 • January 2001 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2000 MMeeaassuurree 11999977 11999988 11999999 Feb. Mar. Apr. May June Julyr Aug/ Sept. Oct.p 1 Industrial production1 127.1 132.4 137.1 141.6 142.4 143.5 144.7 145.3 145.1r 145.9 146.5 146.3 Market groupings 2 Products, total 119.6 123.7 126.5 130.1 130.3 131.0 131.2 131.6 131.8r 132.0 132.4 132.3 3 Final, total 121.1 125.4 128.0 131.8 132.0 132.8 133.1 134.0 134.2r 134.7 135.2 135.2 4 Consumer goods 115.1 116.2 116.9 118.7 118.0 118.6 118.8 119.4 118.8r 119.1 119.7 119.2 5 Equipment 132.1 142.7 148.9 155.0 156.9 158.1 158.8 160.1 161.7 162.6 163.1 164.0 6 Intermediate 115.3 118.8 122.1 124.8 125.1 125.3 125.1 124.3 124.4r 123.7 123.9 123.6 7 Materials 139.0 146.5 154.8 161.2 163.1 165.0 168.1 169.1 168.1r 170.1 171.0 170.6 Industry groupings 8 Manufacturing 130.1 136.4 142.3 147.2 148.4 149.3 150.3 151.0 151.lr 151.7 152.4 152.3 9 Capacity utilization, manufacturing (percent)2. . 82.4 80.9 79.8 80.7 81.1 81.3 81.5 81.6 81.3 81.4 81.5 81.2 10 Construction contracts3 144.2 161.2 177.5 180.0 195.0r 186.0 179.0r 188.0r 178.0r 175.0 182.0 187.0 11 Nonagricultural employment, total4 120.3 123.4 126.2 128.0 128.5 128.9 129.1 129.1 129.1 129.0 129.2 129.3 12 Goods-producing, total 101.2 102.7 102.3 103.9 104.3 104.3 104.1 104.2 104.4 103.9 103.8 104.0 13 Manufacturing, total 98.3 98.8 97.0 97.2 97.3 97.3 97.3 97.3 97.6 97.0 96.7 96.7 14 Manufacturing, production workers 99.6 99.8 97.8 98.0 97.9 98.0 97.9 97.9 98.4 97.5 97.1 97.1 15 Service-producing 126.5 130.0 133.8 135.7 136.2 136.8 137.0 137.1 137.0 137.0 137.3 137.4 16 Personal income, total 175.1 186.5 196.6 204.4 206.0 207.2 207.9 208.9 209.5 210.2 212.5 212.1 17 Wages and salary disbursements 171.3 184.6 196.9 205.2 206.4 208.2 208.4 209.8 210.9 211.3 212.5 214.0 18 Manufacturing 144.6 152.3 157.4 161.6 162.0 163.6 162.9 164.3 165.8 164.9 164.4 166.0 19 Disposable personal income5 172.5 182.7 191.9 198.3 199.8 200.6 201.3 202.1 202.6 203.0 205.2 204.4 20 Retail sales5 169.8 178.4 194.6 208.3 209.3 208.3 208.5 209.3 211.1 211.0 212.9 213.0 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 169.8 171.2 171.3 171.5 172,4 172.8 172.8 173.7 174.0 22 Producer finished goods (1982=100) 131.8 130.7 133.0 136.0 136.8 136.7 137.3 138.6r 138.3 138.1 139.2 140.0 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data 3. Index of dollar value of total construction contracts, including residential, nonresidenare also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge latest historical revision of the industrial production index and the capacity utilization rates Division. was released in November 1999. The recent annual revision is described in an article in the 4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series March 2000 issue of the Bulletin. For a description of the methods of estimating industrial covers employees only, excluding personnel in the armed forces. production and capacity utilization, see "Industrial Production and Capacity Utilization: 5. Based on data from U.S. Department of Commerce, Survey of Current Business. Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 (February 6. Based on data not seasonally adjusted. Seasonally adjusted data for changes in the price 1997), pp. 67-92, and the references cited therein. For details about the construction of indexes can be obtained from the U.S. Department of Labor, Bureau of Labor Statistics, individual industrial production series, see "Industrial Production: 1989 Developments and Monthly Labor Review. Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. NOTE. Basic data (not indexes) for series mentioned in notes 4 and 5, and indexes for series 2. Ratio of index of production to index of capacity. Based on data from the Federal mentioned in notes 3 and 6, can also be found in the Survey of Current Business. Reserve, U.S. Department of Commerce, and other sources. 2.11 LABOR FORCE, EMPLOYMENT, AND UNEMPLOYMENT Thousands of persons; monthly data seasonally adjusted 2000 CCaatteeggoorryy 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept. Oct.p HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 140,867 141,230 140,489 140,762 140,399 140,742 140,639 140,918 Employment 126,159 128,085 130,207 131,801 132,351 131,417 131,858 131,450 131,569 131,821 132,188 3 Agriculture 3,399 3,378 3,281 3,359 3,355 3,298 3,321 3,299 3,344 3,340 3,233 Unemployment 4 6,739 6,210 5,880 5,708 5,524 5,774 5,583 5,650 5,829 5,477 5,496 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 4.1 3.9 4.1 4.0 4.0 4.1 3.9 3.9 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 131,009 131,419 131,590 131,647 131,607 131,528r 131,723 131,860 7 Manufacturing 18,675 18,772 18,431 18,476 18,492 18,479 18,493 18,548 18,432r 18,363 18,363 8 Mining 596 590 535 536 539 539 539 538 537 539 543 9 Contract construction 5,691 5,985 6,273 6,726 6,694 6,666 6,668 6,670 6,675 6,708 6,742 10 Transportation and public utilities 6,408 6,600 6,792 6,953 6,970 6,962 6,985 7,010 6,941 7,034 7,057 11 28,614 29,127 29,792 30,060 30,252 30,112 30,171 30,246 30,253r 30,239 30,258 12 Finance 7,109 7,407 7,632 7,621 7,610 7,600 7,588 7,586 7,608r 7,617 7,637 13 Service 36,040 37,526 39,000 40,090 40,195 40,220 40,401 40,403 40,572r 40,748 40,765 14 Government 19,557 19,819 20,161 20,547 20,667 21,012 20,802 20,606 20,510r 20,475 20,495 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 Q4 Ql Q2 Q3r Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 139.5 141.7 144.5 145.8 172.3 173.8 175.5 177.1 81.0 81.5 82.3 82.3 2 Manufacturing 144.9 147.4 150.2 151.7 180.6 182.4 184.4 186.3 80.3 80.8 81.5 81.4 3 Primary processing3 125.4 126.0 125.8 124.1 149.8 150.4 150.9 151.2 83.7 83.8 83.4 82.1 4 Advanced processing4 155.2 158.7 163.1 166.3 196.1 198.7 201.6 204.3 79.1 79.9 80.9 81.4 5 Durable goods 177.4 182.5 188.9 192.4 221.0 224.8 229.1 233.2 80.3 81.2 82.5 82.5 6 Lumber and products 120.6 121.3 119.1 115.0 148.4 149.0 149.1 149.0 81.2 81.4 79.9 77.2 7 Primary metals 130.9 132.4 133.1 129.0 150.1 150.7 151.5 152.2 87.2 87.9 87.9 84.8 8 Iron and steel 129.1 130.9 132.4 126.3 152.5 153.5 154.4 155.3 84.6 85.3 85.7 81.3 9 Nonferrous 133.3 134.3 134.0 132.4 147.2 147.5 148.0 148.6 90.5 91.0 90.5 89.1 10 Industrial machinery and equipment 239.9 252.3 263.4 270.5 295.8 306.1 315.2 323.5 81.1 82.4 83.6 83.6 11 Electrical machinery 419.0 458.1 514.3 558.8 514.6 537.2 570.7 607.0 81.4 85.3 90.1 92.1 12 Motor vehicles and parts 154.7 155.2 158.0 152.9 185.0 185.7 186.7 187.7 83.6 83.6 84.6 81.5 13 Aerospace and miscellaneous transportation equipment . , 89.9 88.0 87.2 88.1 125.8 125.2 124.5 123.9 71.5 70.3 70.0 71.1 14 Nondurable goods 113.4 113.7 113.3 113.1 140.3 140.5 140.6 140.6 80.9 80.9 80.6 80.4 15 Textile mill products 111.4 111.3 109.7 104.5 131.8 131.9 131.9 131.9 84.5 84.4 83.2 79.2 16 Paper and products 117.9 117.0 117.2 113.4 136.1 136.6 136.7 136.5 86.6 85.6 85.8 83.1 17 Chemicals and products 121.8 121.7 120.3 121.5 151.0 151.4 151.7 152.1 80.7 80.4 79.3 79.9 18 Plastics materials 132.3 134.0 131.3 122.3 139.6 140.8 141.9 143.0 94.8 95.2 92.5 85.6 19 Petroleum products 114.1 115.8 117.9 117.0 123.1 123.4 123.6 123.7 92.7 93.9 95.4 94.6 20 Mining 99.5 100.4 102.1 102.5 120.2 119.8 119.3 118.8 82.8 83.8 85.5 86.2 21 Utilities 113.2 113.6 117.5 117.8 128.2 128.6 129.0 129.4 88.3 88.3 91.1 91.1 22 Electric 116.5 115.5 120.4 120.2 126.1 126.6 127.1 127.7 92.4 91.2 94.7 94.1 1973 1975 Previous cycle5 Latest cycle6 1999 2000 High Low High Low High Low Oct. May June Julyr Aug/ Sept. Oct.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 81.0 82.4 82.5 82.2 82.4 82.5 82.1 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 80.2 81.5 81.6 81.3 81.4 81.5 81.2 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 83.4 83.3 83.2 82.4 81.8 81.9 81.7 4 Advanced processing4 87.2 71.8 86.7 70 A 84.2 76.1 79.1 81.0 81.1 81.1 81.5 81.6 81.3 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 80.3 82.6 82.7 82.3 82.5 82.7 82.0 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 81.4 80.1 78.5 78.3 75.7 77.6 77.5 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 86.1 87.8 87.3 85.3 84.7 84.4 82.8 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 82.1 85.5 85.5 81.0 81.7 81.2 78.4 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 91.1 90.7 89.3 90.6 88.4 88.4 88.2 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 81.6 83.6 83.7 83.4 83.5 83.9 84.1 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 81.1 90.5 91.2 92.4 91.7 92.1 92.1 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 84.2 85.4 84.7 77.7 83.1 83.5 76.8 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 71.9 69.2 71.1 72.5 70.9 69.9 71.5 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.6 80.5 80.5 80.5 80.4 80.4 80.6 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 85.5 82.4 82.7 80.7 78.5 78.4 77.9 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.9 84.5 86.7 83.1 82.6 83.6 83.8 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 79.4 79.3 79.2 78.9 80.1 80.7 80.7 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 94.0 92.3 91.8 85.9 86.0 84.8 83.9 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 93.2 95.8 95.6 94.6 94.6 94.5 94.4 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 82.6 85.7 86.3 86.3 86.5 85.8 86.5 21 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 89.9 92.3 91.9 89.1 91.7 92.4 90.6 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 92.8 95.9 95.3 91.7 95.1 95.6 93.7 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 • January 2001 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp pro- 1999 por- avg. tion Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June Julyr Aug." Sept. Oct.p Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 137.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.7 145.3 145.1 145.9 146.5 146.3 2 Products 60.5 126.5 128.5 128.0 128.5 129.7 130.1 130.3 131.0 131.2 131.6 131.8 132.0 132.4 132.3 3 Final products 46.3 128.0 130.2 129.8 130.3 131.6 131.8 132.0 132.8 133.1 134.0 134.2 134.7 135.2 135.2 4 Consumer goods, total 29.1 116.9 118.2 117.6 118.1 118.8 118.7 118.0 118.6 118.8 119.4 118.8 119.1 119.7 119.2 5 Durable consumer goods 6.1 152.6 157.4 154.4 155.7 158.9 156.4 156.8 159.1 156.9 158.4 153.8 153.2 156.1 152.1 6 Automotive products 2.6 144.7 147.9 146.2 144.4 149.1 145.4 146.0 148.7 146.8 149.3 141.0 143.3 146.3 140.2 7 Autos and trucks 1.7 151.8 155.1 154.3 148.7 155.0 150.7 151.9 155.8 154.0 157.2 142.1 149.5 152.5 142.1 8 Autos, consumer .9 102.6 103.9 107.2 99.8 105.4 105.0 103.1 107.4 106.2 105.5 102.3 108.5 108.5 95.2 9 Trucks, consumer .7 202.4 207.8 203.6 199.0 206.3 198.3 202.3 206.2 203.8 210.5 184.6 193.5 199.1 190.3 10 Auto parts and allied goods .... .9 133.9 136.7 133.8 137.1 139.6 136.9 136.6 137.6 135.7 137.2 137.5 133.4 136.4 135.9 11 Other 3.5 158.6 165.0 160.7 164.9 166.6 165.4 165.5 167.5 165.1 165.6 164.6 161.2 163.8 161.9 12 Appliances, televisions, and air conditioners 1.0 324.3 363.1 348.4 357.6 361.6 362.8 367.3 373.3 367.1 375.6 352.9 346.7 363.1 356.1 13 Carpeting and furniture .8 121.7 124.8 117.4 123.0 126.9 122.6 122.6 125.0 122.4 122.7 126.2 121.3 124.9 123.7 14 Miscellaneous home goods 1.6 114.7 114.8 115.0 116.7 116.6 116.6 115.9 116.5 115.3 114.3 115.0 113.6 112.7 111.8 15 Nondurable consumer goods 23.0 108.7 109.3 109.1 109.5 109.7 110.0 109.1 109.4 110.0 110.5 110.6 111.1 111.2 111.4 16 Foods and tobacco 10.3 107.3 106.8 107.3 107.4 107.6 107.9 107.8 108.3 107.8 107.9 108.5 108.5 107.6 108.2 17 Clothing 2.4 90.6 89.4 90.6 89.1 89.3 89.6 89.2 89.5 89.3 86.8 86.8 84.9 83.2 82.7 18 Chemical products 4.5 121.8 123.1 126.0 126.5 125.8 125.1 125.8 124.2 124.6 125.2 125.7 128.0 130.4 130.5 19 Paper products 2.9 102.3 106.3 105.1 103.1 104.3 104.5 103.0 103.3 104.1 106.9 107.7 107.5 107.3 108.8 20 Energy 2.9 114.0 114.5 106.7 112.0 113.0 114.8 108.8 111.1 117.2 118.8 115.9 117.7 119.0 116.5 21 Fuels .8 111.3 112.4 110.1 111.7 108.4 111.5 114.8 112.3 113.3 113.4 112.8 112.9 113.0 111.2 22 Residential utilities 2.1 115.0 114.9 104.3 111.6 114.6 115.8 105.2 109.9 118.5 120.8 116.7 119.4 121.4 118.6 23 Equipment 17.2 148.9 151.2 151.4 151.8 154.2 155.0 156.9 158.1 158.8 160.1 161.7 162.6 163.1 164.0 24 Business equipment 13.2 171.6 174.8 175.0 175.5 179.4 180.6 183.0 185.0 185.7 187.2 188.7 190.2 191.9 192.5 25 Information processing and related 5.4 248.6 265.6 266.7 270.1 277.9 281.2 285.7 290.3 295.7 297.1 305.3 311.8 315.9 321.6 26 Computer and office equipment 1.1 840.1 950.5 970.0 985.6 1,015.3 1,059.5 1,093.5 1,126.1 1,162.3 1,194.2 1,248.6 1,294.5 1,331.8 1,363.8 27 Industrial 4.0 135.3 134.9 134.6 135.0 138.4 140.1 140.0 140.1 140.4 139.8 140.9 144.0 142.2 141.8 28 Transit 2.5 126.9 122.3 121.2 118.5 119.9 117.6 118.7 118.7 116.2 118.0 116.4 115.1 114.7 110.0 29 Autos and trucks 1.2 131.4 133.4 134.2 127.8 134.3 134.0 133.9 136.9 135.7 133.8 124.2 127.0 126.1 114.0 30 Other 1.3 131.4 125.1 127.5 128.1 126.8 128.6 136.4 140.9 137.7 144.8 137.4 126.9 138.3 141.7 31 Defense and space equipment 3.3 74.4 73.7 73.0 72.4 70.6 69.7 69.8 69.3 69.3 70.5 72.0 70.3 68.0 69.3 32 Oil and gas well drilling .6 106.8 115.7 121.3 124.3 125.5 129.9 130.6 129.0 135.0 134.0 140.9 143.8 139.1 143.8 33 Manufactured homes .2 155.2 142.6 139.3 138.3 135.4 129.6 129.3 123.4 118.2 118.5 110.0 110.3 108.5 104.5 34 Intermediate products, total 14.2 122.1 123.2 122.4 123.1 123.7 124.8 125.1 125.3 125.1 124.3 124.4 123.7 123.9 123.6 35 Construction supplies 5.3 133.4 135.4 134.3 134.9 136.4 137.5 139.0 139.2 137.4 136.8 137.7 136.0 136.4 136.2 36 Business supplies 8.9 115.3 115.9 115.2 116.0 116.1 117.2 116.9 117.1 117.7 116.8 116.4 116.3 116.5 116.1 37 Materials 39.5 154.8 156.8 158.8 159.7 160.5 161.2 163.1 165.0 168.1 169.1 168.1 170.1 171.0 170.6 38 Durable goods materials 20.8 198.9 203.4 206.7 208.8 211.7 213.1 217.5 220.6 227.0 229.2 229.7 232.8 234.7 234.2 39 Durable consumer parts 4.0 150.7 153.7 154.8 155.0 156.0 153.1 154.7 152.8 160.5 155.1 149.1 157.8 158.2 151.6 40 Equipment parts 7.6 360.9 377.5 386.8 394.9 404.9 418.0 435.4 453.2 472.6 490.6 503.3 510.1 520.1 530.3 41 Other 9.2 131.3 131.7 133.4 134.0 134.8 134.1 134.7 134.6 135.2 135.0 134.8 134.1 134.0 133.2 42 Basic metal materials 3.1 121.8 123.5 125.6 126.3 126.2 124.2 126.3 126.9 126.9 126.3 124.5 123.6 123.6 121.8 43 Nondurable goods materials 8.9 114.6 117.4 119.1 118.7 117.0 117.6 116.8 116.6 116.7 116.6 114.3 114.1 114.1 114.1 44 Textile materials 1.1 101.0 102.3 103.3 100.9 99.3 101.9 102.7 100.7 100.2 101.7 96.1 98.2 96.9 95.5 45 Paper materials 1.8 117.0 118.5 119.3 118.5 117.9 116.6 118.3 119.3 117.4 119.2 114.6 113.4 115.3 115.6 46 Chemical materials 3.9 117.3 122.0 125.1 124.2 122.1 124.5 121.5 121.5 122.8 121.9 119.6 121.1 120.0 120.6 47 Other 2.1 113.5 114.9 114.9 116.8 114.8 112.7 113.3 112.3 112.2 111.6 112.7 108.8 110.0 109.2 48 Energy materials 9.7 101.7 101.5 101.6 101.4 101.2 100.5 100.6 102.5 102.8 102.6 100.8 102.8 102.8 102.4 49 Primary energy 6.3 99.2 98.8 100.1 99.5 98.3 96.7 98.0 100.4 100.5 100.7 99.7 100.4 99.9 99.8 50 Converted fuel materials 3.3 107.0 106.5 104.1 104.8 106.8 108.2 105.5 106.6 107.1 106.0 102.2 107.3 108.5 107.5 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 137.0 138.9 139.3 140.2 141.0 141.6 142.4 143.5 144.7 145.4 145.5 146.2 146.7 146.9 52 Total excluding motor vehicles and parts 95.1 136.4 138.3 138.7 139.5 140.4 141.1 141.8 143.0 144.0 144.8 145.2 145.5 146.0 146.5 53 Total excluding computer and office equipment 98.2 131.1 132.4 132.7 133.2 134.1 134.4 135.0 136.0 137.0 137.4 137.0 137.6 138.1 137.8 54 Consumer goods excluding autos and trucks . 27.4 115.0 116.3 115.6 116.4 116.9 117.0 116.2 116.6 116.9 117.4 117.5 117.5 117.9 117.8 55 Consumer goods excluding energy 26.2 117.3 118.7 118.8 118.8 119.5 119.1 119.0 119.5 119.0 119.5 119.2 119.3 119.8 119.5 56 Business equipment excluding autos and trucks 12.0 176.2 179.5 179.7 181.1 184.5 186.0 188.7 190.5 191.5 193.4 196.4 197.7 199.7 202.0 57 Business equipment excluding computer and office equipment 12.1 143.8 144.0 143.7 143.8 146.8 146.9 148.4 149.4 149.2 149.9 150.1 150.5 151.3 151.2 58 Materials excluding energy 29.8 172.0 174.7 177.4 178.6 179.8 181.0 183.5 185.5 189.6 191.0 190.4 192.4 193.5 193.2 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 Monthly data seasonally adjusted 1992 SIC pro- 1999 Group code por- avg. tion Apr. May Julyr Aug.r Sept. Oct.P Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 137.1 139.1 139.4 140.1 141.1 141.6 142.4 143.5 144.7 145.3 145.1 145.9 146.5 146.3 60 Manufacturing 85.4 142.3 144.2 145.0 145.6 146.7 147.2 148.4 149.3 150.3 151.0 151.1 151.7 152.4 152.3 61 Primary processing 26.5 123.3 124.8 125.6 125.9 126.0 125.9 126.1 126.3 125.6 125.6 124.5 123.7 124.0 123.6 62 Advanced processing 58.9 151.8 154.5 155.2 155.9 157.5 158.4 160.1 161.5 163.3 164.4 165.1 166.5 167.4 167.5 63 Durable goods 45.0 172.8 176.5 177.4 178.4 181.0 181.8 184.6 186.8 189.2 190.8 190.9 192.4 194.0 193.5 64 Lumber and products 24 2.0 121.6 120.5 119.8 121.4 122.1 121.2 120.5 120.8 119.4 117.0 116.7 112.8 115.5 115.3 65 Furniture and fixtures 25 1.4 125.5 127.0 125.2 128.6 126.9 126.8 126.3 126.4 128.1 127.0 128.5 128.7 129.9 128.6 66 Stone, clay, and glass products 32 2.1 130.5 131.2 132.4 131.4 130.9 131.7 132.7 131.9 132.2 132.3 134.1 133.3 133.5 133.6 67 Primary metals 33 3.1 126.6 129.0 131.1 132.8 132.8 130.9 133.6 133.8 133.0 132.4 129.6 128.9 128.7 126.4 68 Iron and steel 331,2 1.7 123.2 124.9 130.7 131.7 130.8 129.1 132.9 132.7 132.1 132.4 125.6 126.9 126.3 122.3 69 Raw steel 331PT .1 113.3 121.8 124.0 124.2 123.1 118.7 121.1 124.1 123.9 124.6 122.3 119.6 114.4 109.8 70 Nonferrous 333-6,9 1.4 130.9 134.0 131.7 134.1 135.2 133.2 134.5 135.3 134.2 132.4 134.4 131.4 131.6 131.5 71 Fabricated metal products . . 34 5.0 128.7 128.8 129.7 129.0 130.8 130.4 130.6 131.0 131.4 130.6 131.0 130.9 130.7 130.2 72 Industrial machinery and equipment 35 8.0 230.1 238.3 239.7 241.8 247.7 252.6 256.7 260.5 263.5 266.2 267.7 270.1 273.9 276.7 73 Computer and office equipment 357 1.8 1,061.4 1,196.6 1,222.8 1,244.6 1,284.5 1,342.2 1,389.6 1,428.4 1,467.7 1,509.0 1,571.0 1,624.2 1,669.1 1,709.0 74 Electrical machinery 36 7.3 390.2 412.6 418.1 426.4 443.5 455.6 475.2 494.8 516.3 532.0 549.5 556.4 570.5 582.5 75 Transportation equipment.. . 37 9.5 122.4 122.3 121.8 120.4 121.7 119.6 120.9 120.7 121.7 122.5 117.3 121.1 120.7 116.0 76 Motor vehicles and parts . 371 4.9 151.0 155.7 155.8 152.7 156.6 153.4 155.6 156.2 159.4 158.4 145.7 156.1 157.0 144.7 77 Autos and light trucks . 371PT 2.6 137.8 140.7 141.0 135.0 141.0 137.7 138.1 142.1 140.5 142.7 130.8 137.8 140.1 128.9 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 94.9 90.6 89.5 89.7 88.6 87.5 88.0 87.0 86.1 88.4 9900..00 8877..88 86.5 88.3 79 Instruments 38 5.4 116.5 118.3 118.9 119.7 118.4 117.3 117.4 117.3 117.4 117.9 118.5 118.6 118.0 117.6 80 Miscellaneous 39 1.3 124.7 125.0 125.0 126.4 126.9 125.5 124.8 125.2 124.5 124.0 125.6 124.1 123.9 123.4 81 Nondurable goods 40.4 111.8 113.0 113.6 113.7 113.5 113.8 113.6 113.5 113.2 113.2 113.1 113.1 113.0 113.3 82 Foods ' 20 9.4 110.1 110.1 110.3 110.0 109.8 110.7 111.1 111.6 111.0 111.1 111.7 111.3 110.7 111.8 83 Tobacco products 21 1.6 94.3 91.9 93.1 94.7 96.7 94.5 91.4 92.7 92.4 90.9 92.9 93.6 92.0 90.5 84 Textile mill products 22 1.8 110.9 112.7 111.4 110.1 111.5 110.8 111.6 111.3 108.8 109.1 106.5 103.6 103.4 102.7 85 Apparel products 23 2.2 90.7 89.1 89.1 89.1 89.0 89.7 89.5 90.1 88.9 86.8 87.6 85.9 84.5 83.9 86 Paper and products 26 3.6 116.2 118.0 118.1 117.7 117.1 116.5 117.3 117.8 115.5 118.5 113.5 112.7 114.1 114.2 87 Printing and publishing .... 27 6.7 104.4 106.0 105.7 105.3 105.3 105.7 105.9 105.4 106.0 105.3 106.4 106.1 105.9 106.5 88 Chemicals and products .... 28 9.9 117.5 119.8 122.7 122.9 121.6 122.4 121.2 120.2 120.3 120.3 119.8 121.8 122.8 123.0 89 Petroleum products 29 1.4 114.7 114.5 112.8 114.9 113.2 115.6 118.7 117.1 118.4 118.2 117.0 117.1 117.0 116.9 90 Rubber and plastic products . 30 3.5 137.7 138.9 139.3 141.4 142.2 141.2 140.5 141.6 140.4 141.0 142.6 140.2 139.8 140.0 91 Leather and products 31 .3 69.8 68.2 67.7 65.4 68.1 66.2 64.6 63.7 64.9 63.1 63.1 62.8 63.7 62.4 92 Mining 6.9 98.0 99.2 99.7 99.5 99.7 100.0 101.3 101.2 102.3 102.8 102.7 102.9 101.8 102.5 93 Metal 10 .5 97.1 94.2 94.5 95.2 95.5 94.1 92.7 93.4 96.3 94.7 96.5 94.2 94.7 94.5 94 Coal 12 1.0 108.1 108.8 110.0 109.5 106.3 101.9 109.3 112.0 110.1 114.4 110.8 109.8 107.5 110.5 95 Oil and gas extraction 13 4.8 92.5 94.0 94.5 94.6 95.7 96.2 96.0 95.9 98.0 98.2 98.6 99.1 98.0 98.4 96 Stone and earth minerals 14 .6 124.4 126.3 125.0 122.4 120.8 127.5 133.0 128.8 124.5 124.4 122.8 123.5 123.0 123.5 97 Utilities 7.7 115.6 115.2 110.9 113.5 114.6 115.3 110.8 114.9 119.0 118.7 115.2 118.6 119.7 117.4 98 Electric 491,493PT 6.2 118.2 116.9 115.8 116.9 116.0 116.0 114.4 117.9 122.0 121.3 116.9 121.4 122.2 119.9 99 Gas 492,493PT 1.6 104.8 107.9 88.2 98.1 108.4 112.6 94.4 101.2 105.7 107.2 107.6 106.1 108.2 106.2 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 141.7 143.6 144.5 145.2 146.2 146.9 148.0 149.0 149.8 150.6 151.5 151.5 152.2 152.9 101 Manufacturing excluding computer and office equipment 83.6 135.3 136.5 137.1 137.6 138.5 138.7 139.7 140.5 141.2 141.8 141.6 142.0 142.5 142.3 102 Computers, communications equipment, and semiconductors 5.9 794.1 863.9 887.7 908.5 952.4 994.7 1,043.7 1,093.0 1,144.2 1,182.2 1,235.6 1,270.9 1,307.2 1,348.4 103 Manufacturing excluding computers and semiconductors 81.1 121.6 122.6 122.9 123.1 112233..66 123.4 123.8 123.9 124.1 124.1 123.6 123.8 124.1 123.6 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 119.3 120.1 120.4 120.6 120.9 120.7 121.0 121.0 121.0 121.1 120.4 120.5 120.6 120.0 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,726.1 2,762.6 2,740.0 2,751.5 2,781.7 2,791.9 2,795.8 2,811.3 2,813.9 2,826.3 2,817.2 2,821.6 2,832.8 2,820.2 106 Final 1,552.1 2,101.6 2,132.5 2,115.8 2,122.4 2,147.5 2,152.5 2,155.2 2,168.6 2,172.3 2,189.1 2,180.3 2,189.1 2,197.9 2,186.0 107 Consumer goods 1,049.6 1,294.9 1,311.7 1,294.7 1,301.5 1,309.9 1,309.9 1,302.9 1,308.9 1,309.9 1,319.8 1,307.3 1,310.1 1,315.6 1,304.9 108 Equipment 502.5 808.3 822.5 823.4 822.9 840.3 845.6 856.0 863.5 866.4 873.4 877.9 884.3 887.6 886.8 109 Intermediate 449.9 623.3 628.9 623.0 627.9 633.0 638.1 639.3 641.5 640.3 636.1 635.9 631.6 634.0 633.1 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 • January 2001 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 1999 2000 11999999 Dec. Jan. Feb. Mar. Apr. May June Julyr Aug.r Sept. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,664 1,683 1,762 1,661 1,597 1,559 1,511 1,528 1,511 1,486 1,518 2 One-family 1,062 1,188 1,247 1,266 1,317 1,223 1,238 1,164 1,150 1,127 1,117 1,140 1,157 3 Two-family or more 379 425 417 417 445 438 359 395 361 401 394 346 361 4 Started 1,474 1,617 1,667 1,769 1,744 1,822 1,630 1,652 1,591 1,571 1,527 1,519 1,530 5 One-family 1,134 1,271 1,335 1,441 1,361 1,324 1,327 1,310 1,258 1,227 1,201 1,229 1,229 6 Two-family or more 340 346 332 328 383 498 303 342 333 344 326 290 301 7 Under construction at end of period1 847 971 993 1,025 1,033 1,041 1,031 1,029 1,023 1,024 1,020 1,013 11,,001111 8 One-family 555 659 679 710 712 712 706 703 697 696 691 688 668888 9 Two-family or more 292 312 314 315 321 329 325 326 326 328 329 325 323 10 Completed 1,400 1,474 1,636 1,675 1,599 1,732 1,728 1,660 1,705 1,545 1,531 1,611 1,553 11 One-family 1,116 1,160 1,307 1,340 1,296 1,382 1,375 1,354 1,377 1,222 1,216 1,269 1,224 12 Two-family or more 284 315 329 335 303 350 353 306 328 323 315 342 329 13 Mobile homes shipped 354 374 348 304 307 291 287 271 265 262 251 249 231 Merchant builder activity' in one-family units 14 Number sold 804 886 907 916 927 905 947 865 875 827R 914 852 953 15 Number for sale at end of period1 287 300 326 320 321 309 321 305 308 312R 311 313 311 Price of units sold (thousands of dollars)2 16 Median 146.0 152.5 160.0 165.0 163.0 162.3 165.7 163.1 165.0 159.9R 168.6 165.0 169.9 17 Average 176.2 181.9 195.8 203.0 200.1 199.6 205.3 207.5 200.1 197.7R 202.4 199.3 204.3 EXISTING UNITS (one-family) 18 Number sold 4,382 4,970 5,197 5,140 4,450 4,760 5,200 4,880 5,090 5,310 4,820 5,280 5,160 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 133.7 132.2 133.7 134.7 136.1 137.6 140.2 143.3 143.2 141.6 20 Average 150.5 159.1 168.3 168.8 168.9 168.1 171.5 173.3 176.0 178.9 177.7 183.0 178.6 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 656,084 710,104 765,719 791,698 806,099 816,012 829,517 816,156 811,816 798,860 786,390 802,723 818,021 22 Private 501,426 550,983 592,037 605,802 614,584 629,590 637,743 629,491 629,820 624,383 612,031 617,988 630,529 23 Residential 289,101 314,058 348,584 358,223 365,149 368,745 372,118 368,948 367,653 363,756 347,488 350,489 353,003 24 Nonresidential 212,325 236,925 243,454 247,579 249,435 260,845 265,625 260,543 262,167 260,627 264,543 267,499 277,526 25 Industrial buildings 36,696 40,464 35,016 33,262 33,947 38,538 39,030 38,670 39,814 39,951 42,165 41,552 42,378 26 Commercial buildings 86,151 95,753 103,759 107,187 107,961 115,440 116,030 115,042 113,381 112,834 112,167 115,497 118,807 27 Other buildings 37,193 39,607 41,279 43,392 43,350 45,553 45,808 44,136 45,540 44,559 45,772 46,765 4477,,445588 28 Public utilities and other 52,287 61,101 63,400 63,738 64,177 61,314 64,757 62,695 63,432 63,283 64,439 63,685 6688,,888833 29 Public 154,657 159,121 173,682 185,895 191,515 186,422 191,774 186,665 181,995 174,477 174,359 184,735 187,492 30 Military 2,561 2,538 2,122 2,332 1,782 3,011 2,249 2,180 2,246 2,157 2,102 2,318 2,420 31 Highway 43,886 48,339 54,447 60,218 63,368 53,145 59,007 55,923 51,966 48,148 49,664 52,658 52,874 32 Conservation and development 5,708 5,421 6,002 7,001 6,223 6,975 6.494 5,840 5,363 5,832 4,864 5,614 5,972 33 Other 102,502 102,823 111,110 116,344 120,142 123,291 124,024 122,722 122,420 118,340 117,729 124,145 126,226 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 OOOcccttt... 11999999 22000000 222000000000111 OOcctt.. OOcctt.. Dec. Mar. June Sept. Juner Julyr Aug. Sept. Oct. CONSUMER PRICES2 (1982-84=100) 1 All items 2.6 3.4 2.4 6.1 2.6 2.8 .5 .2 -.1 .5 .2 174.0 ? Food 1.9 2.4 2.2 1.7 2.7 3.9 .1 .5 .2 .2 .1 169.1 3 Energy items 10.2 15.9 7.8 50.5 6.6 3.5 5.6 .1 -2.9 3.8 .2 129.3 4 All items less food and energy 2.1 2.5 1.8 3.4 2.2 2.7 .2 .2 .2 .3 .2 182.8 Commodities 1.0 .2 -.6 .3 .0 1.7 -.2 .0 -.1 .5 -.1 145.6 6 Services 2.5 3.5 3.1 4.7 3.0 3.0 .3 .3 .3 .1 .2 204.1 PRODUCER PRICES (1982=100) 7 Finished goods 2.8 3.6 .9 7.9 2.3 2.0 .9 -.1 -.2 .9 .4 140.0 8 Consumer foods .2 1.5 -2.0 3.6 2.7 -2.3 -.2 -.2 -.7 .4 .8 137.8 9 Consumer energy 11.9 19.4 5.9 51.8 8.3 8.6 6.4 -1.4 -.2 3.7 1.4 99.7 10 Other consumer goods 3.0 1.0 1.1 .8 1.0 2.1 .0 .1 .1 .4 .0 155.1 11 Capital equipment .3 .9 1.2 .9 1.2 1.7 .0 .2 .0 .2 .0 139.8 Intermediate materials 12. Excluding foods and feeds 2.4 4.9 3.6 9.5 3.1 3.1 .9 .2 -.2 .7 .2 113311..88 13 Excluding energy 1.1 2.1 2.1 4.2 2.7 .3 .1 .2 -.1 .0 .0 137.0 Crude materials 14 Foods -4.7 .7 -3.6 21.5 -10.4 -14.0 -2.7 -2.9 -4.5 3.9 3.5 99.5 15 Energy 35.2 58.4 -27.9 84.9 163.6 11.8 22.6 -5.5 .6 8.1 4.6 140.5 16 Other 6.4 -.4 26.2 9.9 -10.7 -10.5 -1.6 -1.7 -1.3 .3 -.6 141.2 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 • January 2001 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Q3 Q4 Ql Q2 Q3 GROSS DOMESTIC PRODUCT 1 Total 8,318.4 8,790.2 9,299.2 9,340.9 9,559.7 9,752.7 9,945.7 10,052.2 By source 2 Personal consumption expenditures 5,529.3 5,850.9 6,268.7 6,319.9 6,446.2 6,621.7 6,706.3 6,816.7 3 Durable goods 642.5 693.9 761.3 767.2 787.6 826.3 814.3 825.5 4 Nondurable goods 1,641.6 1,707.6 1,845.5 1,860.0 1,910.2 1,963.9 1,997.6 2,032.0 5 Services 3,245.2 3,449.3 3,661.9 3,692.7 3,748.5 3,831.6 3,894.4 3,959.2 6 Gross private domestic investment 1,390.5 1,549.9 1,650.1 1,659.1 1,723.7 1,755.7 1,852.6 1,872.4 7 Fixed investment 1,327.7 1,472.9 1,606.8 1,622.4 1,651.0 1,725.8 1,780.5 1,805.0 8 Nonresidential 999.4 1,107.5 1,203.1 1,216.8 1,242.2 1,308.5 1,359.2 1,392.5 y Structures 255.8 283.2 285.6 281.2 290.4 308.9 315.1 330.2 10 Producers' durable equipment 743.6 824.3 917.4 935.6 951.8 999.6 1,044.1 1,062.4 N Residential structures 328.2 365.4 403.8 405.6 408.8 417.3 421.3 412.5 12 Change in business inventories 62.9 77.0 43.3 36.7 72.7 29.9 72.0 67.4 13 Nonfarm 60.0 76.4 43.6 42.0 71.8 32.4 72.2 68.4 14 Net exports of goods and services -89.3 -151.5 -254.0 -280.5 -299.1 -335.2 -355.4 -386.1 15 Exports 966.4 966.0 990.2 999.5 1,031.0 1,051.9 1,092.9 1,135.1 16 Imports 1,055.8 1,117.5 1,244.2 1,280.0 1,330.1 1,387.1 1,448.3 1,521.2 17 Government consumption expenditures and gross investment 1,487.9 1,540.9 1,634.4 1,642.4 1,688.8 1,710.4 1,742.2 1,749.2 18 Federal 538.2 540.6 568.6 570.4 591.6 580.1 604.5 594.4 19 State and local 949.7 1,000.3 1,065.8 1,072.1 1,097.3 1,130.4 1,137.7 1,154.9 By major type of product 20 Final sales, total 8,255.5 8,713.2 9,255.9 9,304.2 9,486.9 9,722.8 9,873.7 9,984.8 21 Goods 3,082.5 3,239.3 3,467.0 3,490.6 3,566.0 3,680.3 3,734.1 3,776.6 22 Durable 1,436.2 1,532.3 1,651.1 1,669.4 1,701.8 1,773.7 1,809.6 1,831.0 23 Nondurable 1,646.4 1,707.1 1,815.8 1,821.1 1,864.1 1,906.6 1,924.5 1,945.6 24 Services 4,442.1 4,673.0 4,934.6 4,965.2 5,050.3 5,135.2 5,231.4 5,293.3 25 Structures 730.9 800.9 854.3 848.5 870.7 907.4 908.2 914.9 26 Change in business inventories 62.9 77.0 43.3 36.7 72.7 29.9 72.0 67.4 27 Durable goods 33.1 45.8 27.2 27.6 47.5 20.7 48.3 42.2 28 Nondurable goods 29.8 31.2 16.1 9.1 25.2 9.2 23.7 25.2 MEMO 29 Total GDP in chained 1996 dollars 8,159.5 8,515.7 8,875.8 8,905.8 9,084.1 9,191.8 9,318.9 9,373.5 NATIONAL INCOME 30 Total 6,618.4 7,038.1 7,469.7 7,493.1 7,680.7 7,833.5 7,983.2 8,091.9 31 Compensation of employees 4,651.3 4,984.2 5,299.8 5,340.9 5,421.1 5,512.2 5,603.5 5,678.4 32 Wages and salaries 3,886.0 4,192.8 4,475.1 4,512.2 4,583.5 4,660.4 4,740.1 4,803.8 33 Government and government enterprises 664.3 692.7 724.4 727.5 734.5 749.9 760.2 765.3 34 Other 3,221.7 3,500.1 3,750.7 3,784.7 3,849.0 3,910.5 3,980.0 4,038.5 35 Supplement to wages and salaries 765.3 791.4 824.6 828.7 837.7 851.8 863.3 874.6 36 Employer contributions for social insurance 289.9 305.9 323.6 325.9 330.3 337.8 342.9 347.0 37 Other labor income 475.4 485.5 501.0 502.8 507.4 514.0 520.5 527.6 38 Proprietors' income' 581.2 620.7 663.5 659.7 689.6 693.9 709.5 725.0 39 Business and professional' 551.5 595.2 638.2 644.2 657.9 674.8 688.1 693.3 40 Farm' 29.7 25.4 25.3 15.5 31.7 19.1 21.5 31.7 41 Rental income of persons2 128.3 135.4 143.4 136.6 146.2 145.6 140.8 138.6 42 Corporate profits' 833.8 815.0 856.0 842.0 893.2 936.3 963.6 971.2 43 Profits before tax3 792.4 758.2 823.0 819.0 870.7 920.7 942.5 946.0 44 Inventory valuation adjustment 8.4 17.0 -9.1 -19.7 -19.2 -25.0 -13.6 -4.7 45 Capital consumption adjustment 32.9 39.9 42.1 42.7 41.6 40.6 34.7 29.9 46 Net interest 423.9 482.7 507.1 513.8 530.6 545.4 565.9 578.7 1. With inventory valuation and capital consumption adjustments. 3. For after-tax profits, dividends, and the like, see table 1.48. 2. With capital consumption adjustment. SOURCE. U.S. Department of Commerce, Survey of Current Business. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A49 2.17 PERSONAL INCOME AND SAVING Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 2000 AAccccoouunntt 11999977 11999988 11999999 Q3 Q4 Ql Q2 Q3 PERSONAL INCOME AND SAVING 1 Total personal income 6,937.0 7,391.0 7,789.6 7,828.5 7,972.3 8,105.8 8,242.1 8,351.0 7 Wage and salary disbursements 3,888.9 4,190.7 4,470.0 4,507.0 4,578.3 4,660.4 4,740.1 4,803.8 Commodity-producing industries 975.1 1,038.6 1,089.2 1,097.8 1,111.2 1,130.9 1,147.1 1,160.0 4 Manufacturing 718.4 756.6 782.4 789.0 795.1 802.8 813.1 820.2 Distributive industries 879.6 949.1 1,020.3 1,029.9 1,049.4 1,070.9 1,095.7 1,118.2 6 Service industries 1,369.9 1,510.3 1,636.0 1,651.8 1,683.2 1,708.6 1,737.2 1,760.3 7 Government and government enterprises 664.3 692.7 724.4 727.5 734.5 749.9 760.2 765.3 8 Other labor income 475.4 485.5 501.0 502.8 507.4 514.0 520.5 527.6 9 Proprietors' income1 581.2 620.7 663.5 659.7 689.6 693.9 709.5 725.0 10 Business and professional1 551.5 595.2 638.2 644.2 657.9 674.8 668888..11 693.3 11 29.7 25.4 25.3 15.5 31.7 19.1 2211..55 31.7 1? Rental income of persons2 128.3 135.4 143.4 136.6 146.2 145.6 140.8 138.6 N Dividends 334.9 351.1 370.3 373.5 380.2 386.9 392.6 399.7 14 Personal interest income 864.0 940.8 963.7 969.4 989.0 1,011.6 1,031.3 1,045.4 15 Transfer payments 962.2 983.0 1,016.2 1,020.3 1,027.4 1,046.9 1,066.1 1,074.2 16 Old age survivors, disability, and health insurance benefits 565.8 578.0 588.0 589.7 592.8 607.9 624.3 627.2 17 LESS: Personal contributions for social insurance 297.9 316.2 338.5 341.0 345.9 353.4 358.8 363.1 18 EQUALS: Personal income 6,937.0 7,391.0 7,789.6 7,828.5 7,972.3 8,105.8 8,242.1 8,351.0 19 LESS: Personal tax and nontax payments 968.8 1,070.9 1,152.0 1,164.0 1,197.3 1,239.3 1,277.2 1,308.1 20 EQUALS: Disposable personal income 5,968.2 6,320.0 6,637.7 6,664.5 6,775.0 6,866.5 6,964.9 7,042.9 21 LESS: Personal outlays 5,715.3 6,054.7 6,490.1 6,543.3 6,674.1 6,855.6 6,944.3 7,060.2 22 EQUALS: Personal saving 252.9 265.4 147.6 121.1 101.0 11.0 20.6 -17.2 MEMO Per capita (chained 1996 dollars) 73 Gross domestic product 30,434.4 31,474.2r 32,512.4r 32,586.2r 33,153.6r 33,485.6 3333,,887744..66rr 3333,,999988..99 24 Personal consumption expenditures 20,230.9 20,988.5r 21,900.7r 22,004.4 22,266.4 22,635.7r 22,757.5r 22,961.6 25 Disposable personal income 21,838.0 22,672.0 23,191.0 23,203.0 23,404.0 23,472.0 23,639.0 23,720.0 26 Saving rate (percent) 4.2 4.2 2.2 1.8 1.5 .2 .3 -.2 GROSS SAVING 27 Gross saving 1,502.3 1,654.4 1,717.6 1,716.8 1,746.3 1,777.0 1,844.5 1,852.8 28 Gross private saving 1,343.7 1,375.7 1,343.5 1,321.1 1,331.4 1,279.2 1,328.8 1,315.2 79 Personal saving 252.9 265.4 147.6 121.1 101.0 11.0 20.6 -17.2 30 Undistributed corporate profits' 261.3 218.9 229.4 214.0 241.7 262.7 278.5 279.2 31 Corporate inventory valuation adjustment 8.4 17.0 -9.1 -19.7 -19.2 -25.0 -13.6 -4.7 Capital consumption allowances 37 Corporate 581.5 624.3 676.9 687.7 694.8 711.5 773311..11 774499..99 33 Noncorporate 250.9 265.1 284.5 293.1 288.7 294.1 298.7 303.3 34 Gross government saving 158.6 278.7 374.1 395.7 414.9 497.7 515.7 537.6 35 Federal 33.4 137.4 217.3 240.6 238.4 333.0 339.9 355.2 .36 Consumption of fixed capital 86.8 88.4 92.8 93.4 95.0 97.2 98.9 100.9 37 Current surplus or deficit (-), national accounts -53.3 49.0 124.4 147.3 143.3 235.8 240.9 254.3 38 State and local 125.2 141.3 156.8 155.1 176.6 164.7 175.8 182.4 39 Consumption of fixed capital 94.2 99.5 106.8 107.7 109.9 112.7 115.6 118.2 40 Current surplus or deficit (-), national accounts 31.0 41.7 50.0 47.4 66.6 52.0 60.1 64.2 41 Gross investment 1,532.1 1,629.6 1,645.6 1,627.3 1,678.5 1,699.3 1,771.9 1,756.3 47 Gross private domestic investment 1,390.5 1,549.9 1,650.1 1,659.1 1,723.7 1,755.7 1,852.6 1,872.4 43 Gross government investment 264.6 278.8 308.7 308.0 324.4 334.2 331.9 333.6 44 Net foreign investment -123.1 -199.1 -313.2 -339.8 -369.6 -390.7 -412.5 -449.7 45 Statistical discrepancy 29.7 -24.8 -71.9 -89.5 -67.8 -77.7 -72.5 -96.5 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 • January 2001 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 Q2 Q3 Q4 Ql Q2 1 Balance on current account -140,540 -217,138 -331,479 -78,982 -89,649 -96,223 -101,505 -106,138 2 Balance on goods and services -105,932 -166,898 -264,971 -63,300 -72,718 -76,280 -85,117 -89,259 3 Exports 936,937 932,977 956,242 234,297 241,969 249,653 255,977 265,133 4 Imports -1,042,869 -1,099,875 -1,221,213 -297,597 -314,687 -325,933 -341,094 -354,392 5 Income, net 6,186 -6,211 -18,483 -4,145 -5,535 -5,683 -4,364 -4,543 6 Investment, net 11,050 -1,036 -13,102 -2,813 -4,193 -4,319 -2,987 -3,145 7 Direct 71,935 67,728 62,704 14,698 15,701 16,275 17,068 18,421 8 Portfolio -60,885 -68,764 -75,806 -17,511 -19,894 -20,594 -20,055 -21,566 9 Compensation of employees -4,864 -5,175 -5,381 -1,332 -1,342 -1,364 -1,377 -1,398 10 Unilateral current transfers, net -40,794 -44,029 -48,025 -11,537 -11,396 -14,260 -12,024 -12,336 11 Change in U.S. government assets other than official reserve assets, net (increase, —) 68 -422 2,751 -392 -686 3,711 -131 -572 12 Change in U.S. official reserve assets (increase, —) -1,010 -6,783 8,747 1,159 1,951 1,569 -554 2,020 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -350 -147 10 -190 -184 -178 -180 -180 15 Reserve position in International Monetary Fund -3,575 -5,119 5,484 1,413 2,268 1,800 -237 2,328 16 Foreign currencies 2,915 -1,517 3,253 -64 -133 -53 -137 -128 17 Change in U.S. private assets abroad (increase, -) -487,998 -328,231 -441,685 -171,609 -124,174 -120,162 -178,273 -75,096 18 Bank-reported claims3 -141,118 -35,572 -69,862 -41,786 -11,259 -45,304 -55,511 14,861 19 Nonbank-reported claims -122,888 -10,612 -92,328 -25,734 -27,943 -24,428 -52,563 -26,112 20 U.S. purchases of foreign securities, net -118,976 -135,995 -128,594 -71,131 -41,420 -17,150 -27,236 -26,350 21 U.S. direct investments abroad, net -105,016 -146,052 -150,901 -32,958 -43,552 -33,280 -42,963 -37,495 22 Change in foreign official assets in United States (increase, +) 18,876 -20,127 42,864 -1,096 12,191 27,495 22,015 5,905 23 U.S. Treasury securities -6,690 -9,921 12,177 -6,708 12,963 5,122 16,198 -4,000 24 Other U.S. government obligations 4,529 6,332 20,350 5,792 1,835 6,730 8,107 10,334 25 Other U.S. government liabilities3 -1,041 -3,550 -3,255 -1,099 -760 89 -644 -772 26 Other U.S. liabilities reported by U.S. banks3 22,286 -9,501 12,692 1,436 -2,032 14,427 -2,577 -561 27 Other foreign official assets4 -208 -3,487 900 -517 185 1,127 931 904 28 Change in foreign private assets in United States (increase, +) 738,086 502,362 710,700 273,104 182,019 157,072 214,520 216,831 29 U.S. bank-reported liabilities2 149,026 39,769 67,403 37,151 24,585 19,618 -8,824 48,660 30 U.S. nonbank-reported liabilities 113,921 -7,001 34,298 13,663 -8,085 792 58,061 21,597 31 Foreign private purchases of U.S. Treasury securities, net 146,433 48,581 -20,464 -5,407 9,639 -17,191 -9,248 -20,661 32 U.S. currency flows 24,782 16,622 22,407 3,057 4,697 12,213 -6,847 989 33 Foreign purchases of other U.S. securities, net 197,892 218,075 331,523 80,838 95,620 92,250 132,416 86,547 34 Foreign direct investments in United States, net 106,032 186,316 275,533 143,802 55,563 49,390 48,962 79,699 35 Capital account transactions, net5 350 637 -3,500 165 171 -3,993 166 163 36 Discrepancy -127,832 69,702 11,602 -22,349 18,177 30,531 43,762 -43,113 37 Due to seasonal adjustment -1,511 -9,739 5,738 5,724 -2,505 38 Before seasonal adjustment -127,832 69,702 11,602 -20,838 27,916 24,793 38,038 -40,608 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) -1,010 -6,783 8,747 1,159 1,951 1,569 -554 2,020 40 Foreign official assets in United States, excluding line 25 (increase, + ) 19,917 -16,577 46,119 3 12,951 27,406 22,659 6,677 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12,124 -11,531 1,331 1,632 -783 -1,673 6,109 1,922 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 2000 IItteemm 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept.? 1 Goods and services, balance -105,932 -166,898 -264,971 -30,370 -29,637 -29,794 -29,846 -31,693 -29,806 -34,263 2 Merchandise -196,665 -246,854 -345,559 -37,148 -36,894 -36,475 -36,862 -38,524 -36,684 -40,208 3 Services 90,733 79,956 80,588 6,778 7,257 6,681 7,016 6,831 6,878 5,945 4 Goods and services, exports 936,937 932,977 956,242 86,975 87,268 86,846 90,991 89,799 92,968 92,360 5 Merchandise 679,702 670,324 684,358 62,513 62,566 62,749 66,468 65,096 67,973 67,316 6 Services 257,235 262,653 271,884 24,462 24,702 24,097 24,523 24,703 24,995 25,044 7 Goods and services, imports 1,042,869 1,099,875 1,221,213 -117,345 -116,905 -116,640 -120,837 -121,492 -122,774 -126,623 8 Merchandise 876,367 917,178 1,029,917 -99,661 -99,460 -99,224 -103,330 -103,620 -104,657 -107,524 9 Services 166,502 182,697 191,296 -17,684 -17,445 -17,416 -17,507 -17,872 -18,117 -19,099 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 Apr. May June July Aug. Sept. Oct. Nov.p 1 Total 69,954 81,755 71,516 66,587 67,160 67,957 66,516 65,333 66,256 65,257 65,523 2 Gold stock, including Exchange Stabilization Fund' 11,050 11,041 11,089 11,048 11,048 11,048 11,046 11,046 11,046 11,046 11,046 3 Special drawing rights2,3 10,027 10,603 10,336 10,122 10,310 10,444 10,257 10,371 10,316 10,169 10,369 4 Reserve position in International Monetary Fund2 18,071 24,111 17,950 15,403 15,373 15,428 15,083 13,798 13,685 13,528 13,491 5 Foreign currencies4 30,809 36,001 32,182 30,014 30,429 31,037 30,130 30,118 31,209 30,514 30,617 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 Apr. May June July Aug. Sept. Oct. Nov.? 1 Deposits 457 167 71 142 110 104 76 78 139 115 104 Held in custody 2 U.S. Treasury securities2 620,885 607,574 632,482 632,216 623,553 627,081 624,177 628,001 611,641 595,591 591,071 3 Earmarked gold3 10,763 10,343 9,933 9,711 9,711 9,688 9,688 9,674 9,620 9,565 9,505 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 • January 2001 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2000 IItteemm 11999988 11999999 Mar. Apr. May June July Aug. Sept.p 1 Total1 759,928 806,288 834,154 826,302 836,075 846,739 849,469 848,840 849,860 By type 2 Liabilities reported by banks in the United States 125,883 138,817 137,724 135,802 136,129 139,627 136,989 143,010 145,902 3 U.S. Treasury bills and certificates3 134,177 156,177 157,607 148,820 157,190 160,093 159,781 155,498 155,101 U.S. Treasury bonds and notes 4 Marketable 432,127 422,266 436,640 435,235 433,823 433,184 433,633 427,007 419,857 5 Nonmarketable4 6,074 6,111 5,770 5,808 5,740 5,180 5,213 5,247 5,280 6 U.S. securities other than U.S. Treasury securities5 61,667 82,917 96,413 100.637 103,193 108,655 113,853 118,078 123,720 By area 7 Europe1 256,026 244,805 249,685 250,306 253,416 257,712 255,635 257,498 263,601 8 Canada 10,552r 12,503r 13,338r 13,027r 13,542r 13,728r 12,992r 13,121 12,932 9 Latin America and Caribbean 79,503 73,518 72,407 69,508 71,220 73,344 76,347 77,542 77,500 10 Asia 400,631 463,673 486,133 482,134 485,424 487,417 490,110 486,890 481,344 11 Africa 10,059 7,523 8,024 7,709 7,849 8,656 8,707 8,466 8,323 12 Other countries 3,157r 4,266r 4,567r 3,618r 4,624r 5,882r 5,678r 5,323 6,160 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 Sept.r Dec. Mar. June 1 Banks' liabilities 103,383 117,524 101,125 100,213 88,537 85,649 78,603 2 Banks' claims 66,018 83,038 78,162 67,036 67,365 63,492 62,631 3 Deposits 22,467 28,661 45,985 32,713 34,426 32,967 31,224 4 Other claims 43,551 54,377 32,177 34,323 32,939 30,525 31,407 5 Claims of banks' domestic customers2 10,978 8,191 20,718 11,534 20,826 21,753 18,802 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 2000 IItteemm 11999977 11999988 11999999 Mar. Apr. May June July Aug. Sept.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,283,027 1,347,837 1,413,622 1,407,854 1,408,223 l,457,629r l,456,560r l,486,568r 1,450,815 1,466,078 2. Banks' own liabilities 882,980 884,939 976,400 961,754 976,662 l,036,677r l,017,559r l,056,717r 1,019,753 1,039,573 3 Demand deposits 31,344 29,558 42,884 29,255 30,202 29,097 30,719 34,914 30,101 31,936 4 Time deposits2 198,546 151,761 163,595 167,001 182,657 176,927 182,787 186,483r 184,820 186,929 Other3 168,011 140,752 162,749 161,906 165,626 179,090 175,905 178,71 lr 179,177 176,499 6 Own foreign offices4 485,079 562,868 607,172 603,592 598,177 651,563 628,148 656,609r 625,655 644,209 7 Banks' custodial liabilities5 400,047 462,898 437,222 446,100 431,561 420,952 439,001 429,851 431,062 426,505 8 U.S. Treasury bills and certificates6 193,239 183,494 185,736 194,987 184,159 174,310 180,951 182,699 180,925 174,604 9 Other negotiable and readily transferable instruments7 93,641 141,699 132,575 127,628 124,207 123,580 124,670 120,624 119,212 120,296 10 Other 113,167 137,705 118,911 123,485 123,195 123,062 133,380 126,528 130,925 131,605 11 Nonmonetary international and regional organizations8 .. 11,690 11,883 15,276 18,729 20,590 22,807 21,366 16,689 14,630 15,658 12 Banks' own liabilities 11,486 10,850 14,357 17,954 19,800 22,109 20,924 16,294 14,377 15,404 13 Demand deposits 16 172 98 71 58 36 34 30 26 19 14 Time deposits2 5,466 5,793 10,349 9,741 11,338 11,393 12,545 10,305 9,062 10,340 15 Other3 6,004 4,885 3,910 8,142 8,404 10,680 8,345 5,959 5,289 5,045 16 Banks' custodial liabilities5 204 1,033 919 775 790 698 442 395 253 254 17 U.S. Treasury bills and certificates6 69 636 680 695 623 582 432 371 217 223 18 Other negotiable and readily transferable instruments7 133 397 233 71 77 113 10 21 26 26 19 Other 2 0 6 9 90 3 0 3 10 5 20 Official institutions9 283,685 260,060 294,994 301,021 295,331 284,622 293,319 299,720r 296,770 297,966 21 Banks' own liabilities 102,028 80,256 97,615 87,187 87,379 87,931 88,449 92,739r 90,985 94,507 22 Demand deposits 2,314 3,003 3,341 2,381 2,620 2,781 2,887 4,063 4,573 5,209 23 Time deposits2 41,396 29,506 28,942 30,117 36,587 31,645 33,520 34,64 lr 32,009 36,421 24 Other3 58,318 47,747 65,332 54,689 48,172 53,505 52,042 54,035r 54,403 52,877 25 Banks' custodial liabilities5 181,657 179,804 197,379 213,834 207,952 196,691 204,870 206,981 205,785 203,459 26 U.S. Treasury bills and certificates6 148,301 134,177 156,177 164,781 157,607 148,820 157,190 160,093 159,781 155,498 27 Other negotiable and readily transferable instruments7 33,151 44,953 41,152 48,689 50,118 47,734 47,611 46,363 45,644 47,660 28 Other 205 674 50 364 227 137 69 525 360 301 29 Banks10 815,247 885,336 905,347 888,905 892,804 941,920 930,663 961,456r 927,514 939,850 30 Banks' own liabilities 641,447 676,057 733,381 724,870 732,303 781,795 759,887 798,322r 760,426 775,143 31 Unaffiliated foreign banks 156,368 113,189 126,209 121,278 134,126 130,232 131,739 141,713r 134,771 130,934 32 Demand deposits 16,767 14,071 17,583 13,930 14,404 13,254 14,543 17,508 11,959 12,922 33 Time deposits2 83,433 45,904 48,140 49,712 57,240 55,167 58,095 60,703 62,841 59,620 34 Other3 56,168 53,214 60,486 57,636 62,482 61,811 59,101 63,502r 59,971 58,392 35 Own foreign offices4 485,079 562,868 607,172 603,592 598,177 651,563 628,148 656,609r 625,655 644,209 36 Banks' custodial liabilities5 173,800 209,279 171,966 164,035 160,501 160,125 170,776 163,134 167,088 164,707 37 U.S. Treasury bills and certificates6 31,915 35,359 16,875 15,708 13,931 14,179 13,239 12,657 12,251 10,667 38 Other negotiable and readily transferable instruments7 35,393 45,332 45,695 35,453 33,790 33,667 34,657 34,018 33,893 32,679 39 Other 106,492 128,588 109,396 112,874 112,780 112,279 122,880 116,459 120,944 121,361 40 Other foreigners 172,405 190,558 198,005 199,199 199,498 208,280 211,212 208,743r 211,901 212,604 41 Banks' own liabilities 128,019 117,776 131,047 131,743 137,180 144,842 148,299 149,362r 153,965 154,519 42 Demand deposits 12,247 12,312 21,862 12,873 13,120 13,026 13,255 13,313 13,543 13,786 43 Time deposits2 68,251 70,558 76,164 77,431 77,492 78,722 78,627 80,834 80,908 80,548 44 Other3 47,521 34,906 33,021 41,439 46,568 53,094 56,417 55,215r 59,514 60,185 45 Banks' custodial liabilities5 44,386 72,782 66,958 67,456 62,318 63,438 62,913 59,381r 57,936 58,085 46 U.S. Treasury bills and certificates6 12,954 13,322 12,004 13,803 11,998 10,729 10,090 9,579r 8,676 8,216 47 Other negotiable and readily transferable instruments7 24,964 51,017 45,495 43,415 40,222 42,066 42,392 40,26 lr 39,649 39,931 48 Other 6,468 8,443 9,459 10,238 10,098 10,643 10,431 9,541 9,611 9,938 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 16,083 27,026 30,345 28,056 26,087 27,238 26,571 26,186 25,911 25,991 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 • January 2001 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1—Continued Payable in U.S. dollars Millions of dollars, end of period 2000 IItteemm 11999977 11999988 11999999 Mar. Apr. May June Julyr Aug. Sept.p AREA 50 Total, all foreigners 1,283,027 1,347,837 1,413,622 1,407,854 1,408,223 l,457,629r l,456,560r 1,486,568 1,450,815 1,466,078 51 Foreign countries 1,271,337 1,335,954 1,398,346 1,389,125 1,387,633 l,434,822r 1,435,194 1,469,919 1,436,185 1,450,420 52 Europe 419,672 427,375 448,070 449,812 433,782 435,694 448,745 481,802 456,601 466,202 53 Austria 2,717 3,178 2,789 2,570 2,302 2,468 2,697 3,239 2,783 2,541 54 Belgium and Luxembourg 41,007 42,818 44,692 36,385 33,100 31,656 31,246 33,282 31,281 29,828 55 Denmark 1,514 1,437 2,196 3,235 2,601 3,629 3,444 3,521 3,689 3,429 56 Finland 2,246 1,862 1,658 2,015 1,744 1,529 1,380 1,751 1,618 1,512 57 France 46,607 44,616 49,790 43,666 45,324 43,577 42,105 42,379 42,723 39,693 58 Germany 23,737 21,357 24,748 25,176 23,710 24,875 28,943 26,484 25,893 26,212 59 Greece 1,552 2,066 3,748 3,216 3,188 3,030 2,765 2,917 3,455 3,331 60 Italy 11,378 7,103 6,775 5,277 4,788 7,142 6,676 5,700 5,566 5,959 61 Netherlands 7,385 10,793 8,310 7,671 7,277 6,823 8,728 12,313 13,087 10,311 62 Norway 317 710 1,327 1,336 1,197 963 2,189 2,337 1,636 3,501 63 Portugal 2,262 3,236 2,228 2,006 1,913 1,964 2,373 2,169 2,144 2,244 64 Russia 7,968 2,439 5,475 7,360 10,065 11,716 11,884 14,960 14,252 15,970 65 Spain 18,989 15,781 10,426 12,518 11,208 10,796 9,999 8,829 8,791 8,410 66 Sweden 1,628 3,027 4,652 5,425 5,165 4,390 5,434 5,100 5,992 6,220 67 Switzerland 39,023 50,654 65,985 81,934 69,208 63,700 59,561 78,195 77,578 88,276 68 Turkey 4,054 4,286 7,842 7,995 8,016 7,501 8,472 8,341 7,999 8,173 69 United Kingdom 181,904 181,554 176,234 169,155 169,221 176,824 187,806 197,309 175,775 178,474 70 Yugoslavia1' 239 233 286 270 265 275 276 277 277 275 71 Other Europe and other former U.S.S.R.12 25,145 30,225 28,909 32,602 33,490 32,836 32,767 32,699 32,062 31,843 72 Canada 28,341 30,212 34,119 36,147 40,562 36,229 37,256 37,231 33,722 33,869 73 Latin America and Caribbean 536,393 554,866 577,737 597,235 606,768 663,827 641,087 644,766 634,413 643,944 74 Argentina 20,199 19,014 18,633 17,906 18,487 16,496 16,540 19,092 17,552 18,560 75 Bahamas 112,217 118,085 134,407 141,370 159,115 173,589 181,673 170,535 176,109 171,457 76 Bermuda 6,911 6,846 7,877 10,108 9,710 8,713 8,021 7,074 8,157 8,100 77 Brazil 31,037 15,815 12,860 14,889 10,305 9,945 10,905 11,950 12,351 11,537 78 British West Indies 276,418 302,486 312,779 321,144 317,044 360,314 325,537 340,713 322,831 337,546 79 Chile 4,072 5,015 7,008 5,752 5,933 6,095 6,192 5,440 5,296 5,346 80 Colombia 3,652 4,624 5,669 4,314 4,243 4,237 4,360 4,627 4,735 4,658 81 Cuba 66 62 75 100 77 77 85 122 91 88 82 Ecuador 2,078 1,572 1,956 2,141 2,193 2,274 2,272 2,219 2,082 2,074 83 Guatemala 1,494 1,336 1,626 1,706 1,628 1,669 1,649 1,730 1,659 1,671 84 Jamaica 450 577 520 671 670 706 674 725 915 830 85 Mexico 33,972 37,157 30,717 31,393 32,832 33,915 33,937 33,379 33,291 33,878 86 Netherlands Antilles 5,085 5,010 3,997 4,528 5,108 6,561 7,885 7,164 6,373 5,159 87 Panama 4,241 3,864 4,415 4,157 3,788 3,764 3,822 3,353 3,561 3,661 88 Peru 893 840 1,142 975 1,021 1,100 1,125 1,097 1,065 1,091 89 Uruguay 2,382 2,486 2,386 2,377 2,431 2,520 2,680 2,179 2,541 2,567 90 Venezuela 21,601 19,894 20,189 22,572 21,140 20,469 22,263 21,462 23,909 23,888 91 Other 9,625 10,183 11,481 11,132 11,043 11,383 11,467 11,905 11,895 11,833 92 Asia 269,379 307,960 319,302 287,572 288,739 282,325 229900,,001166 228855,,001188 229911,,001177 286,058 China 93 Mainland 18,252 13,441 12,325 8,094 8,529 7,824 9,930 9,385 11,769 11,829 94 Taiwan 11,840 12,708 13,600 14,637 14,483 14,113 13,584 13,156 14,675 14,876 95 Hong Kong 17,722 20,900 27,697 22,672 22,873 23,951 23,952 25,675 26,749 26,527 96 India 4,567 5,250 7,367 6,258 5,586 5,703 5,558 5,712 5,547 5,838 97 Indonesia 3,554 8,282 6,567 7,837 7,275 7,064 7,400 7,342 7,318 7,310 98 Israel 6,281 7,749 7,488 8,338 7,058 5,541 6,123 5,794 5,951 7,132 99 Japan 143,401 168,563 159,075 145,074 147,409 148,668 153,662 147,549 146,382 142,755 100 Korea (South) 13,060 12,524 12,853 16,425 16,820 12,941 10,324 8,618 8,819 9,009 101 Philippines 3,250 3,324 3,253 2,277 2,290 1,750 1,999 1,649 1,679 1,822 102 Thailand 6,501 7,359 6,050 4,370 3,628 3,428 3,529 3,900 3,504 3,330 103 Middle Eastern oil-exporting countries1'1 14,959 15,609 21,284 16,132 19,005 18,647 18,538 22,195 21,968 21,851 104 Other 25,992 32,251 41,743 35,458 33,783 32,695 35,417 34,043 36,656 33,779 105 Africa 10,347 8,905 9,468 8,614 8,576 8,437 8,718 9,739 9,607 9,821 106 Egypt 1,663 1,339 2,022 1,770 1,663 1,722 1,962 1,780 1,615 1,544 107 Morocco 138 97 179 115 106 122 149 118 109 112 108 South Africa 2,158 1,522 1,495 673 687 662 595 792 708 842 109 Zaire 10 5 14 13 7 13 6 5 7 5 110 Oil-exporting countries14 3,060 3,088 2,914 3,318 3,558 3,298 3,405 4,258 4,470 4,498 111 Other 3,318 2,854 2,844 2,725 2,555 2,620 2,601 2,786 2,698 2,820 112 Other 7,205 6,636 9,650 9,745 9,206 8,310 9,372 11,363 10,825 10,526 113 Australia 6,304 5,495 8,377 8,667 8,413 7,586 88,,556644 10,346 9,825 9,499 114 Other 901 1,141 1,273 1,078 793 724 880088 1,017 1,000 1,027 115 Nonmonetary international and regional organizations .. 11,690 11,883 15,276 18,729 20,590 22,807 21,366 16,689 14,630 15,658 116 International15 10,517 10,221 12,876 16,674 19,207 21,375 20,106 15,295 13,118 1144,,338877 117 Latin American regional16 424 594 1,150 1,244 518 624 768 786 1,146 888888 118 Other regional17 749 1,068 1,250 811 865 808 492 608 366 383 It. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in US. Dollars Millions of dollars, end of period 2000 AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 Mar. Apr. May June July1" Aug. Sept.p 1 Total, all foreigners 708,225 734,995 795,377 813,890 815,083 820,782 825,898 833,459 800,472 848,374 2 Foreign countries 705,762 731,378 790,814 809,581 810,081 816,439 820,887 829,573 796,695 843,509 3 Europe 199,880 233,321 315,905 361,470 350,067 359,895 357,243 361,594 331,384 363,587 4 Austria 1,354 1,043 2,643 2,493 2,429 2,242 2,148 2,617 1,956 2,569 5 Belgium and Luxembourg 6,641 7,187 10,193 8,022 7,939 5,959 6,393 6,302 5,819 6,209 6 Denmark 980 2,383 1,669 1,625 1,940 2,001 3,440 3,349 3,278 3,403 7 Finland 1,233 1,070 2,020 2,093 2,087 2,414 2,650 2,897 2,701 3,561 8 France 16,239 15,251 29,142 28,127 30,958 35,217 28,633 25,845 23,229 27,062 9 Germany 12,676 15,923 29,205 35,371 33,991 31,521 33,585 30,452 31,804 33,238 in Greece 402 575 806 842 864 828 837 754 557 516 n Italy 6,230 7,284 8,496 7,048 7,034 6,565 7,724 6,447 7,358 6,230 l? Netherlands 6,141 5,697 11,810 14,089 13,932 14,377 15,668 13,159 14,999 15,507 13 Norway 555 827 1,000 1,132 1,499 1,832 1,935 2,401 1,448 4,474 14 Portugal 777 669 1,571 1,043 1,085 1,268 1,424 1,454 1,273 1,480 15 Russia 1,248 789 713 709 709 715 744 718 666 643 16 Spain 2,942 5,735 3,796 3,187 3,217 3,126 3,844 4,767 3,566 3,208 17 Sweden 1,854 4,223 3,264 7,492 8,100 7,112 8,744 8,404 8,761 8,501 IS Switzerland 28,846 46,874 79,158 111,544 97,688 105,573 86,284 94,550 87,172 99,423 19 Turkey 1,558 1,982 2.617 3,053 3,148 3,269 3,189 2,735 2,855 3,185 70 United Kingdom 103,143 106,349 120,190 125,162 125,935 128,259 141,769 147,073 127,335 136,919 7.1 Yugoslavia2 52 53 50 50 51 49 49 49 49 54 22 Other Europe and other former U.S.S.R.3 7,009 9,407 7,562 8,388 7,461 7,568 8,183 7,621 6,558 7,405 23 Canada 27,189 47,037 37,206 42,686 43,300 45,481 42,591 40,420 37,934 37,707 74 Latin America and Caribbean 343,730 342,654 353,416 323,816 328,769 321,219 328,629 334,855 338,764 351,603 75 Argentina 8,924 9,552 10,167 9,845 9,732 9,507 9,386 10,630 10,567 10,809 76 Bahamas 89,379 96,455 99,324 74,018 72,312 71,459 80,393 76,477 78,896 83,126 77 Bermuda 8,782 5,011 8,007 7,441 5,685 6,478 6,285 6,906 4,684 6,178 78 Brazil 21,696 16,184 15,706 14,981 16,210 16,376 16,544 18,199 18,555 19,061 79 British West Indies 145,471 153,749 167,189 166,284 173,907 165,920 164,969 172,262 175,966 182,899 30 Chile 7,913 8,250 6,607 6,511 6,447 6,399 6,213 6,070 5,985 5,961 31 Colombia 6,945 6,507 4,524 3,937 3,907 4,032 3,796 3,909 3,953 3,850 37 Cuba 0 0 0 0 0 0 0 0 3 33 Ecuador 11,,331111 1,400 760 688 662 640 613 610 607 623 34 Guatemala 888866 1,127 1,135 1,181 1,252 1,245 1,235 1,215 1,277 1,228 35 Jamaica 424 239 295 328 316 300 291 299 305 337 36 Mexico 19,428 21,212 17,899 16,998 16,944 16,771 17,066 16,426 16,840 16,853 37 Netherlands Antilles 17,838 6,779 5,982 6,385 6,388 6,579 6,502 6,652 5,804 5,770 38 Panama 4,364 3,584 3,387 2,912 2,844 2,984 3,063 2,981 2,882 2,780 39 Peru 3,491 3,275 2,529 2,223 2,356 2,515 2,458 2,488 2,487 2,490 40 Uruguay 629 1,126 801 761 714 708 620 649 777 727 41 Venezuela 2,129 3,089 3,494 3,580 3,474 3,595 3,471 3,357 3,410 3,596 42 Other 4,120 5,115 5,610 5,743 5,619 5,711 5,724 5,725 5,766 5,315 43 125,092 98,607 74,914 72,692 78,257 80,221 82,415 83,127 79,022 81,626 China 44 Mainland 1,579 1,261 2,090 3,161 4,532 2,611 1,688 1,822 1,601 1,519 45 Taiwan 922 1,041 1,390 925 1,080 1,732 1,339 922 790 2,473 46 Hong Kong 13,991 9,080 5,893 4,519 4,546 4,573 4,266 5,777 5,403 6,014 47 India 2,200 1,440 1,738 1,749 1,786 1,941 1,905 2,013 2,037 2,063 48 Indonesia 2,651 1,942 1,776 1,817 1,821 1,819 1,856 1,940 1,880 1,925 49 Israel 768 1,166 1,875 3,412 3,293 2,857 1,610 1,982 2,281 1,116 50 Japan 59,549 46,713 28,636 27,310 30,381 31,689 33,256 31,209 32,494 35,216 51 Korea (South) 18,162 8,289 9,262 11,466 12,209 14,018 15,866 18,915 16,924 14,437 57 Philippines 1,689 1,465 1,410 1,698 1,714 1,884 1,865 1,802 1,483 1,492 53 Thailand 2,259 1,807 1,515 1,154 1,081 1,137 1,255 1,051 1,059 1,071 54 Middle Eastern oil-exporting countries4 10,790 16,130 14,252 11,612 10,765 11,666 12,128 10,367 10,006 9,975 55 Other 10,532 8,273 5,077 3,869 5,049 4,294 5,381 5,327 3,064 4,325 56 Africa 3,530 3,122 2,268 1,991 2,054 2,109 2,494 2,505 2,215 2,603 57 Egypt 247 257 258 243 206 218 230 217 186 176 58 Morocco 511 372 352 279 300 271 259 272 247 254 59 South Africa 805 643 622 428 360 341 772 411 358 378 60 Zaire 0 0 24 0 0 0 0 0 0 0 61 Oil-exporting countries5 1,212 936 276 198 394 508 430 751 616 913 62 Other 755 914 736 843 794 771 803 854 808 882 63 Other 6,341 6,637 7,105 6,926 7,634 7,514 7,515 7,072 7,376 6,383 64 Australia 5,300 6,173 6,824 6,674 7,225 7,139 7,240 6,891 7,036 6,136 65 Other 1,041 464 281 252 409 375 275 181 340 247 66 Nonmonetary international and regional organizations6 .. . 2,463 3,617 4,563 4,309 5,002 4,343 5,011 3,886 3,777 4,865 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 • January 2001 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 2000 TTyyppee ooff ccllaaiimm 11999977 11999988 11999999 Mar. Apr. May June July1 Aug. Sept.p 1 Total 852,852 875,891 947,176 1,010,415 1,010,005 2 Banks' claims 708,225 734,995 795,377 813,890 815,083 820,782 825,898 833,459 800,472 848,374 3 Foreign public borrowers 20,581 23,542 35,090 36,036 37,300 43,092 41,461 48,424 41,406 40,389 4 Own foreign offices2 431,685 484,535 528,397 552,218 557,339 549,165 553,262 557,557 544,142 579,876 5 Unaffiliated foreign banks 109,230 106,206 101,227 96,030 91,849 92,280 92,911 89,352 82,536 91,697 6 Deposits 30,995 27,230 34,360 24,361 22,399 24,769 22,373 21,856 21,822 22,855 7 Other 78,235 78,976 66,867 71,669 69,450 67,511 70,538 67,496 60,714 68,842 8 All other foreigners 146,729 120,712 130,663 129,606 128,595 136,245 138,264 138,126 132,388 136,412 9 Claims of banks' domestic customers3 144,627 140,896 151,799 196,525 184,107 10 Deposits 73,110 79,363 88,006 128,490 106,055 11 Negotiable and readily transferable instruments4 53,967 47,914 51,161 56,032 62,975 12 Outstanding collections and other claims 17,550 13,619 12,632 12,003 15,077 MEMO 13 Customer liability on acceptances 9,624 4,520 4,553 4,464 5,082 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 33,816 39,978 31,125 53,657 45,383 45,468r 44,139 46,337 55,293 57,780 t. 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 Sept. Dec. Mar. June 1 Total 258,106 276,550 250,418 270,098 266,309 261,056 273,022 By borrower 2 Maturity of one year or less 211,859 205,781 186,526 196.772 187,383 180,453 187,028 3 Foreign public borrowers 15,411 12,081 13,671 22.526 22,811 23,436 25,289 4 All other foreigners 196,448 193,700 172,855 174,246 164,572 157,017 161,739 5 Maturity of more than one year 46,247 70,769 63,892 73,326 78,926 80,603 85,994 6 Foreign public borrowers 6,790 8,499 9,839 12,162 12,013 12,802 15,484 7 All other foreigners 39,457 62,270 54,053 61,164 66,913 67,801 70,510 By area Maturity of one year or less 8 Europe 55,690 58,294 68,679 82,566 80,842 79,639 76,366 9 Canada 8,339 9,917 10,968 8,544 7,859 8,408 7,353 10 Latin America and Caribbean 103,254 97,207 81,766 78,063 68,987 62,325 66,065 11 Asia 38,078 33,964 18,007 20,859 21,802 23,002 29,231 12 Africa 1,316 2,211 1,835 1,119 1,122 957 1,569 13 All other3 5,182 4,188 5,271 5,621 6,771 6,122 6,444 Maturity of more than one year 14 Europe 6,965 13,240 14,923 18,619 22,951 23,951 25,116 15 Canada 2,645 2,525 3,140 3,193 3,192 3,127 3,323 16 Latin America and Caribbean 24,943 42,049 33,442 38,154 38,789 39,194 41,758 17 Asia 9,392 10,235 10,018 10,641 11,257 11,612 12,446 18 Africa 1,361 1,236 1,232 1,087 1,065 965 924 19 All other3 941 1,484 1,137 1,632 1,672 1,754 2,427 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 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 645.8 721.8 1,017.2 1,071.9 1,051.6 992.8 939.4 936.8 936.7 952.7 991.0 7 G-10 countries and Switzerland 228.3 242.8 273.9 240.0 217.7 208.7 223.1 206.4 236.5 284.1 323.3 3 Belgium and Luxembourg 11.7 11.0 14.0 11.7 10.7 15.6 16.1 15.7 14.3 14.2 13.8 4 France 16.6 15.4 21.7 20.3 18.4 21.6 20.4 19.9 29.0 27.1 32.6 Germany 29.8 28.6 30.5 31.4 30.9 34.7 32.1 37.4 38.7 37.3 31.5 6 Italy 16.0 15.5 21.1 18.5 11.5 17.8 16.4 15.0 18.1 20.0 20.0 7 Netherlands 4.0 6.2 8.6 8.4 7.8 10.7 13.3 10.6 12.3 17.1 16.1 8 Sweden 2.6 3.3 3.1 2.1 2.3 4.0 2.6 3.6 3.0 3.9 3.5 9 Switzerland 5.3 7.2 7.0 7.6 8.5 7.8 8.2 8.8 10.3 10.1 13.8 10 United Kingdom 104.7 113.4 125.9 100.1 85.4 56.1 74.3 51.9 72.4 113.5 148.3 11 Canada 14.0 13.7 16.7 15.9 16.8 15.9 17.1 17.9 16.3 17.5 18.2 12 Japan 23.7 28.6 25.3 23.9 25.4 24.6 22.6 25.6 22.0 23.5 25.4 13 Other industrialized countries 66.1 65.5 78.7 78.5 69.0 80.1 79.7 71.7 68.4 62.8 76.2 14 Austria 1.1 1.5 1.9 2.1 1.4 2.8 2.8 3.0 3.5 2.6 2.8 IS Denmark 1.5 2.4 2.2 3.0 2.2 3.4 2.9 2.1 2.6 1.5 1.2 16 Finland .8 1.3 1.4 1.6 1.4 1.5 .9 .9 .9 .8 1.3 17 Greece 6.7 5.1 5.8 5.8 5.9 6.5 5.9 6.6 6.0 5.7 6.8 18 Norway 8.0 3.6 3.4 3.2 3.2 3.1 3.0 3.8 3.3 3.0 4.6 19 Portugal .9 .9 1.4 1.1 1.4 1.4 1.2 1.2 1.0 1.0 2.0 20 Spain 13.3 12.6 17.5 19.5 13.7 15.7 16.6 15.1 12.1 11.3 12.2 21 Turkey 2.7 4.5 6.5 5.2 4.8 5.2 4.9 4.7 4.8 5.1 5.6 22 Other Western Europe 4.9 8.3 9.9 10.4 10.4 10.2 10.2 9.2 6.8 8.3 8.8 23 South Africa 2.0 2.2 6.9 5.4 4.4 4.8 4.7 4.0 3.8 4.8 4.6 24 Australia 24.0 23.1 21.8 21.4 20.3 25.4 26.6 21.1 23.5 18.6 26.3 2*5 OPEC2 19.8 26.0 25.5 26.0 27.1 26.2 26.1 30.1 31.4 28.9 32.3 26 Ecuador 1.1 1.3 1.2 1.2 1.3 1.2 1.1 .9 .8 .7 .7 71 Venezuela 2.4 2.5 3.3 3.1 3.2 3.5 3.2 3.0 2.8 3.0 2.9 28 Indonesia 5.2 6.7 5.1 4.7 4.7 4.5 5.0 4.4 4.2 3.9 4.1 29 Middle East countries 10.7 14.4 15.6 16.1 17.0 16.7 16.5 21.4 23.0 21.1 24.0 30 African countries .4 1.2 .3 .8 1.0 .4 .4 .5 .5 .2 .7 31 Non-OPEC developing countries 130.3 139.2 146.1 140.4 143.4 146.7 148.6 142.5 147.3 152.5 155.6 Latin America 3? Argentina 14.3 18.4 20.9 22.9 23.1 24.3 22.8 22.1 22.4 21.3 20.3 33 Brazil 20.7 28.6 30.3 24.0 24.7 24.2 25.1 22.1 26.4 26.9 27.0 34 Chile 7.0 8.7 9.1 8.5 8.3 8.6 8.2 7.7 7.4 8.2 8.1 35 Colombia 4.1 3.4 3.6 3.4 3.2 3.3 3.1 2.7 2.5 2.5 2.4 36 Mexico 16.2 17.4 18.1 18.7 18.9 19.7 18.5 19.4 18.7 18.3 20.5 37 1.6 2.0 2.2 2.2 2.2 2.2 2.1 1.8 1.7 1.9 2.1 38 Other 3.3 4.1 4.4 4.6 5.4 5.3 5.5 5.5 5.9 6.5 6.7 Asia China 39 Mainland 2.5 3.2 3.9 2.8 3.0 5.0 5.3 3.3 3.6 4.6 3.8 40 Taiwan 10.3 9.5 11.8 12.5 13.3 11.8 12.6 12.3 12.0 12.6 12.6 41 India 4.3 4.9 4.9 5.3 5.5 5.5 6.7 7.0 7.7 7.9 8.2 4? Israel .5 .7 .9 .9 1.1 1.1 2.0 1.0 1.8 3.3 1.5 43 Korea (South) 21.5 15.6 14.6 13.1 13.7 13.7 15.3 16.0 15.1 17.4 21.2 44 Malaysia 6.0 5.1 4.7 5.0 5.6 5.9 6.0 6.1 6.1 6.5 6.8 45 Philippines 5.8 5.7 5.4 4.7 5.1 5.4 5.7 5.8 6.2 5.3 5.3 46 Thailand 5.7 5.4 5.0 5.3 4.7 4.5 4.2 4.0 4.1 4.3 4.0 47 Other Asia 4.1 4.3 3.7 3.1 2.9 3.0 2.8 2.8 2.9 2.6 2.5 Africa 48 Egypt .7 .9 1.5 1.7 1.3 1.4 1.4 1.3 1.4 1.4 1.3 49 Morocco .7 .6 .6 .5 .5 .5 .5 .5 .4 .3 .3 50 Zaire .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .8 .8 1.1 1.0 1.2 1.0 1.0 1.0 .9 .9 52 Eastern Europe 6.9 9.1 11.3 6.3 5.5 7.1 5.8 5.4 5.2 6.3 9.4 53 Russia4 3.7 5.1 6.9 2.8 2.2 2.3 2.1 2.0 1.6 1.7 1.5 54 Other 3.2 4.0 4.4 3.5 3.3 4.8 3.7 3.4 3.6 4.7 7.9 55 Offshore banking centers 135.1 140.2 130.0 121.0 93.9 93.6 75.9 89.4 60.1 42.0 52.4 56 Bahamas 20.5 24.2 28.6 30.7 35.4 32.6 20.4 28.6 13.9 2.4 .5 57 Bermuda 4.5 9.8 9.4 10.4 4.6 3.9 5.7 8.2 8.0 7.3 6.3 58 Cayman Islands and other British West Indies 37.2 43.4 34.3 27.8 12.8 13.9 7.2 6.3 1.3 .0 5.1 59 Netherlands Antilles 26.1 14.6 10.5 6.0 2.6 2.7 1.3 9.1 1.7 2.5 2.6 60 Panama5 2.0 3.1 3.3 4.0 3.9 3.9 3.9 3.9 3.9 3.4 3.3 61 Lebanon .1 .1 .1 .2 .1 .1 .1 .2 .1 .1 .1 6? Hong Kong, China 27.9 32.2 30.0 30.6 23.3 22.8 22.0 22.4 21.0 22.2 20.7 63 Singapore 16.7 12.7 13.6 11.1 11.1 13.5 15.2 10.6 10.1 4.1 13.6 64 Other6 .1 .1 .2 .2 .2 .2 .1 .2 .1 .1 .1 65 Miscellaneous and unallocated7 59.6 99.1 351.7 459.9 495.1 430.4 380.2 391.2 387.9 376.1 341.9 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 • January 2001 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 1999 2000 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 Mar. June Sept. Dec. Mar. June 1 Total 61,782 57,382 46,570 46,663 49,337 52,979 53,044 52,555 70,534 2 Payable in dollars 39,542 41,543 36,668 34,030 36,032 36,296 37,605 34,680 47,864 3 Payable in foreign currencies 22,240 15,839 9,902 12,633 13,305 16,683 15,415 17,875 22,670 By type 4 Financial liabilities 33,049 26,877 19,255 22,458 25,058 27,422 27,980 28,246 44,068 5 Payable in dollars 11,913 12,630 10,371 11,225 13,205 12,231 13,883 11,924 22,803 6 Payable in foreign currencies 21,136 14,247 8,884 11,233 11,853 15,191 14,097 16,322 21,265 7 Commercial liabilities 28,733 30,505 27,315 24,205 24,279 25,557 25,064 24,309 26,466 8 Trade payables 12,720 10,904 10,978 9,999 10,935 12,651 12,857 12,401 13,764 y Advance receipts and other liabilities 16,013 19,601 16,337 14.206 13,344 12,906 12,207 11,908 12,702 10 Payable in dollars 27,629 28,913 26,297 22,805 22,827 24,065 23,722 22,756 25,061 ii Payable in foreign currencies 1,104 1,592 1,018 1,400 1,452 1,492 1,318 1,553 1,405 By area or country Financial liabilities 12 Europe 23,179 18,027 12,589 16,098 19,578 21,695 23,241 23,116 30,332 13 Belgium and Luxembourg 632 186 79 50 70 50 31 4 163 14 France 1,091 1,425 1,097 1,178 1,287 1,675 1,659 1,405 1,702 15 Germany 1,834 1,958 2,063 1,906 1,959 1,712 1,974 1,390 1,671 16 Netherlands 556 494 1,406 1,337 2,104 2,066 1,996 1,970 2,035 17 Switzerland 699 561 155 141 143 133 147 97 137 18 United Kingdom 17,161 11,667 5,980 9,729 13,097 15,096 16,521 16,579 21,463 19 Canada 1,401 2,374 693 781 320 344 284 313 714 20 Latin America and Caribbean 1,668 1,386 1,495 1,528 1,369 1,180 892 846 2,874 21 Bahamas 236 141 7 1 1 1 1 1 78 22 Bermuda 50 229 101 78 52 26 5 1 1,016 23 Brazil 78 143 152 137 131 122 126 128 146 24 British West Indies 1,030 604 957 1,064 944 786 492 489 463 25 Mexico 17 26 59 22 19 28 25 22 26 26 Venezuela 1 1 2 2 1 0 0 0 0 27 Asia 6,423 4,387 3,785 3,475 3,217 3,622 3,437 3,275 9,453 28 Japan 5,869 4,102 3,612 3,337 3,035 3,384 3,142 2,985 6,024 29 Middle Eastern oil-exporting countries' 25 27 0 1 2 3 3 4 5 30 Africa 38 60 28 31 29 31 28 28 33 31 Oil-exporting countries2 0 0 0 2 0 0 0 0 0 32 All other1 340 643 665 545 545 550 98 668 662 Commercial liabilities 33 Europe 9,767 10,228 10,030 8,580 8,718 9,265 9,262 8,646 9,293 34 Belgium and Luxembourg 479 666 278 229 189 128 140 78 178 35 France 680 764 920 654 656 620 672 539 711 36 Germany 1,002 1,274 1,392 1,088 1,143 1,201 1,131 914 948 37 Netherlands 766 439 429 361 432 535 507 648 562 38 Switzerland 624 375 499 535 497 593 626 536 565 39 United Kingdom 4,303 4,086 3,697 3,008 2,959 3,175 3,071 2,661 2,982 40 Canada 1,090 1,175 1,390 1,597 1,670 1,753 1,775 2,024 2,053 41 Latin America and Caribbean 2,574 2,176 1,618 1,612 1,674 1,957 2,310 2,286 2,607 42 Bahamas 63 16 14 11 19 24 22 9 10 43 Bermuda 297 203 198 225 180 178 152 287 300 44 Brazil 196 220 152 107 112 120 145 115 119 45 British West Indies 14 12 10 7 5 39 48 23 22 46 Mexico 665 565 347 437 490 704 887 805 1,073 47 Venezuela 328 261 202 155 149 182 305 193 239 48 Asia 13,422 14,966 12,342 10,428 10,039 10,428 9,886 9,681 10,965 49 Japan 4,614 4,500 3,827 2,715 2,753 2,689 2,609 2,274 2,200 50 Middle Eastern oil-exporting countries1 2,168 3,111 2,852 2,479 2,209 2,618 2,551 2,308 3,489 51 Africa 1,040 874 794 727 832 959 950 943 950 52 Oil-exporting countries2 532 408 393 377 392 584 499 536 575 53 Other1 840 1,086 1,141 1,261 1,346 1,195 881 729 598 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 1999 2000 TTyyppee ooff ccllaaiimm,, aanndd aarreeaa oorr ccoouunnttrryy 11999966 11999977 11999988 Mar. June Sept. Dec. Mar. June 1 Total 65,897 68,128 77,462 69,054 63,884 67,566 76,669 84,266 80,685 2 Payable in dollars 59,156 62,173 72,171 64,026 57,006 60,456 69,170 74,331 72,254 3 Payable in foreign cuiTencies 6,741 5,955 5,291 5,028 6,878 7,110 7,472 9,935 8,431 By type 4 Financial claims 37,523 36,959 46,260 38,217 31,957 33,877 40,231 47,798 44,303 Deposits 21,624 22,909 30,199 18,686 13,350 15,192 18,566 23,316 17,462 6 Payable in dollars 20,852 21,060 28,549 17,101 11,636 13,240 16,373 21,442 15,361 7 Payable in foreign currencies 772 1,849 1,650 1,585 1,714 1,952 2,193 1,874 2,101 8 Other financial claims 15,899 14,050 16,061 19,531 18,607 18,685 21,665 24,482 26,841 9 Payable in dollars 12,374 11,806 14,049 17,457 14,800 15,718 18,593 19,659 22,384 10 Payable in foreign currencies 3,525 2,244 2,012 2,074 3,807 2,967 3,072 4,823 4,457 11 Commercial claims 28,374 31,169 31,202 30,837 31,927 33,689 36,438 36,468 36,382 12 Trade receivables 25,751 27,536 27,202 26,724 27,791 29,397 32,629 31,443 31,237 13 Advance payments and other claims 2,623 3,633 4,000 4,113 4,136 4,292 3,809 5,025 5,145 14 Payable in dollars 25,930 29,307 29,573 29,468 30,570 31,498 34,204 33,230 34,509 15 Payable in foreign currencies 2,444 1,862 1,629 1,369 1,357 2,191 2,207 3,238 1,873 By area or country Financial claims 16 Europe 11,085 14,999 12,294 12,881 13,978 13,878 13,023 16,789 18,254 17 Belgium and Luxembourg 185 406 661 469 457 574 529 540 317 18 France 694 1,015 864 913 1,368 1,212 967 1,835 1,292 19 Germany 276 427 304 302 367 549 504 669 576 20 Netherlands 493 677 875 993 997 1,067 1,229 1,981 1,984 21 Switzerland 474 434 414 530 504 559 643 612 624 22 United Kingdom 7,922 10,337 7,766 8,400 8,631 8,157 7,561 9,044 11,668 23 Canada 3,442 3,313 2,503 3,111 2,828 3,172 2,553 3,175 5,799 24 Latin America and Caribbean 20,032 15,543 27,714 18,825 11,486 12,749 18,206 21,945 14,874 25 Bahamas 1,553 2,308 403 666 467 755 1,593 1,299 655 26 Bermuda 140 108 39 41 39 524 11 11 34 27 Brazil 1,468 1,313 835 1,112 1,102 1,265 1,476 1,646 1,666 28 British West Indies 15,536 10,462 24,388 14,621 7,393 7,263 12,099 15,814 7,751 29 Mexico 457 537 1,245 1,583 1,702 1,791 1,798 1,979 2,048 30 Venezuela 31 36 55 72 71 47 48 65 78 31 Asia 2,221 2,133 3,027 2,648 2,801 3,205 5,457 4,430 3,923 32 Japan 1,035 823 1,194 942 949 1,250 3,262 2,021 1,410 33 Middle Eastern oil-exporting countries1 22 11 9 8 5 5 21 29 42 34 Africa 174 319 159 174 228 251 286 232 320 35 Oil-exporting countries2 14 15 16 26 5 12 15 15 39 36 All other3 569 652 563 578 636 622 706 1,227 1,133 Commercial claims 37 Europe 10,443 12,120 13,246 12,782 12,961 14,367 16,389 16,118 15,910 38 Belgium and Luxembourg 226 328 238 281 286 289 316 271 425 39 France 1,644 1,796 2,171 2,173 2,094 2,375 2,236 2,520 2,690 40 Germany 1,337 1,614 1,822 1,599 1,660 1,944 1,960 2,034 1,902 41 Netherlands 562 597 467 415 389 617 1,429 1,337 1,241 42 Switzerland 642 554 483 367 385 714 610 611 563 43 United Kingdom 2,946 3,660 4,769 4,529 4,615 4,789 5,827 5,354 4,928 44 Canada 2,165 2,660 2,617 2,983 2,855 2,638 2,757 3,088 3,246 45 Latin America and Caribbean 5,276 5,750 6,296 5,930 6,278 5,879 5,959 5,899 5,789 46 Bahamas 35 27 24 10 21 29 20 15 48 47 Bermuda 275 244 536 500 583 549 390 404 380 48 Brazil 1,303 1,162 1,024 936 887 763 905 849 894 49 British West Indies 190 109 104 117 127 157 181 95 51 50 Mexico 1,128 1,392 1,545 1,431 1,478 1,613 1,678 1,529 1,564 51 Venezuela 357 576 401 361 384 365 439 435 465 52 Asia 8,376 8,713 7,192 7,080 7,690 8,579 9,165 9,101 9,168 53 Japan 2,003 1,976 1,681 1,486 1,511 1,823 2,074 2,082 1,881 54 Middle Eastern oil-exporting countries1 971 1,107 1,135 1,286 1,465 1,479 1,625 1,533 1,241 55 Africa 746 680 711 685 738 682 631 716 765 56 Oil-exporting countries2 166 119 165 116 202 221 171 82 160 57 Other3 1,368 1,246 1,140 1,377 1,405 1,544 1,537 1,546 1,504 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 • January 2001 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2000 2000 Transaction, and area or country 1998 1999 J S an ep .— t. Mar. Apr. May June Julyr Aug. Sept.p U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192 2,340,659 2,693,607 402,373 309,778 268,454 300,356 271,145 286,819 297,626 2 Foreign sales 1,524,203 2,233,137 2,555,891 378,141 306,474 262,142 282,563 255,999 262,775 289,067 3 Net purchases, or sales (—) 49,989 107,522 137,716 24,232 3,304 6,312 17,793 15,146 24,044 8,559 4 Foreign countries 50,369 107,578 137,695 24,414 3,243 6,291 17,823 15,136 24,020 8,601 5 Europe 68,124 98,060 131,925 18,594 12,289 7,496 14,853 12,922 15,678 10,012 6 France 5,672 3,813 3,522 1,831 1,341 -588 -653 1,292 575 -565 7 Germany 9,195 13,410 28,604 4,532 3,431 3,355 2,544 371 2,670 643 8 Netherlands 8,249 8,083 3,036 277 113 -113 584 554 594 792 9 Switzerland 5,001 5,650 12,754 -913 1,689 585 67 1,702 1,114 780 10 United Kingdom 23,952 42,902 41,043 4,794 558 1,440 7,026 6,033 7,098 5,161 11 Canada -4,689 -335 2,589 286 9 834 -46 -166 1,038 -922 12 Latin America and Caribbean 757 5,187 -7,672 4,840 -11,441 -2,633 1,898 11,,336633 44,,990077 -3,405 13 Middle East1 -1,449 -1,066 7,818 2,124 2,071 705 4 9988 990088 52 14 Other Asia -12,351 4,445 1,888 -1,716 52 -121 870 815 1,789 2,704 15 Japan -1,171 5,723 -2,847 -2,604 -446 -1,045 439 492 568 2,467 16 Africa 639 372 407 205 228 -50 54 -124 2 -56 17 Other countries -662 915 740 81 35 60 190 228 -302 216 18 Nonmonetary international and regional organizations -380 -56 23 -182 61 21 -30 10 24 -42 BONDS2 19 Foreign purchases 905,782 854,692 868,194 106,182r 88,555r 89,760 107,281 87,580 107,808 103,859 20 Foreign sales 727,044 602,100 631,964 76,643r 70,85 r 68,212 75,117 67,010 69,514 76,226 21 Net purchases, or sales (—) 178,738 252,592 236,230 29,539r 17,704r 21,548 32,164 20,570 38,294 27,633 22 Foreign countries 179,081 252,994 236,185 29,638r 17,709r 21,490 32,215 20,482 38,215 27,635 23 Europe 130,057 140.674 128,678 19,454 7,640 9,475 19,378 7,789 21,618 16,178 24 France 3,386 1,870 1,459 620 -34 104 159 85 334 -819 2b Germany 4,369 7,723 3,175 348 288 175 897 154 1,185 44 2b Netherlands 3,443 2,446 -176 94 279 283 -169 -575 850 -818 27 Switzerland 4,826 4,553 3,089 202 -18 9 324 1,003 757 333 28 United Kingdom 99,637 106,344 100,992 15,479 4,274 6,237 16,218 4,003 15,909 15,070 29 Canada 6,121 6,043 10,796 689 764 1,076 1,092 943 1,965 810 30 Latin America and Caribbean 23,938 58,783 43,699 3,952r 4,823r 2,786 4,390 4,743 3,829 6,338 31 Middle East1 4,997 1,979 422 670 347 -47 99 264 54 -702 32 Other Asia 12,662 42,817 51,043 4,450r 4,103r 7,996 7,059 6,601 10,562 5,132 33 Japan 8,384 17,541 23,140 l,954r 580 3,491 3,945 3,320 5,664 1,928 34 Africa 190 1,411 779 -11 35 40 72 10 37 49 35 Other countries 1,116 1,287 768 434 -3 164 125 132 150 -170 36 Nonmonetary international and regional organizations -343 -402 76 -99 -5 58 -51 88 110 -2 Foreign securities 37 Stocks, net purchases, or sales (—) 6,227 15,640 -12,321 -8,168r 576r 8,334r -2,046 -14,973 1,012 10,721 38 Foreign purchases 929,923 1,177,303 1,364,630 178,272r 154,322 144,592r 152,149 133,902 141,637 147,867 39 Foreign sales 923,696 1,161,663 1,376,951 mMff 153,746r 136,258r 154,195 148,875 140,625 137,146 40 Bonds, net purchases, or sales ( —) -17,350 -5,676 -7,430 — 3,775r 798 4,263 5,770 -6,484 -2,791 273 41 Foreign purchases 1,328,281 798,267 682,189 83,838 63,916 79,534 82,951 68,420 74,795 92,169 42 Foreign sales 1,345,631 803,943 689,619 87,613r 63,118 75,271 77,181 74,904 77,586 91,896 43 Net purchases, or sales (—), of stocks and bonds .... -11,123 9,964 -19,751 — ll,943r l,374r 12,597r 3,724 -21,457 -1,779 10,994 44 Foreign countries -10,778 9,679 -19,915 — 12,042r l,209r 12,521r 3,874 -21,216 -1,625 10,814 45 Europe 12,632 59,247 -23,124 —5,918r l,535r 10,113 -1,434 -23,856 -5,983 6,634 46 Canada -1,901 -999 -3,802 -1,400 -422r -1,234 1,399 279 993 -1,081 47 Latin America and Caribbean -13,798 -4,726 -14,810 -1,045r -5,155 -845 1,981 -715 -446 535 48 Asia -3,992 -42,961 19,902 -4,086 5,641r 4,770r 1,878 3,145 3,263 4,049 49 Japan -1,742 —43,637 19,915 -1,458 4,688 5,117 3,243 3,904 1,535 2,254 50 Africa -1,225 710 968 384 -143 -51 -33 532 -81 77 51 Other countries -2,494 -1,592 951 23 -247 -232 83 -601 629 600 52 Nonmonetary international and regional organizations -345 285 164 99 165 76 -150 -241 -154 180 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 2000 AArreeaa oorr ccoouunnttrryy 11999988 11999999 J S an e . p — t. Mar. Apr. May June July Aug. Sept.p 1 Total estimated 49,039 -9,953 -26,886 -16,871 14,520 -7,018 -17,932 —6,061r -114 -8,516 2 Foreign countries 46,570 -10,518 -26,281 -17,092 14,484 -6,820 -17,597 —5,746r -117 -8,741 3 Europe 23,797 -38,228 -29,221 -9,971 -632 -2,526 -9,935 —6,35 lr 3,707 -1,284 4 Belgium and Luxembourg 3,805 -81 -204 116 -498 -743 252 -138 138 -127 5 Germany 144 2,285 -5,478 -1,352 -1,676 74 609 -2,199 -36 -1,738 6 Netherlands -5,533 2,122 3,315 539 700 -1,159 -389 -584 91 836 7 Sweden 1,486 1,699 976 263 -289 266 -47 114 56 214 8 Switzerland 5,240 -1,761 -10,032 5 -288 -337 -1,928 — l,398r -338 -959 9 United Kingdom 14,384 -20,232 19,642 -5,150 -533 178 -9,243 —4,372r 3,054 -1,865 10 Other Europe and former U.S.S.R 4,271 -22,260 1,844 -4,392 1,952 -805 811 2,226 742 2,355 11 Canada 615 7,348 2,197 640 1,819 -681 226 -872 222 1,417 12 Latin America and Caribbean -3,662 -7,523 -8,125 -4,789 2,509 -3,122 -3,839 1,415 245 -4,979 13 Venezuela 59 362 585 24 26 4 16 89 45 314 14 Other Latin America and Caribbean 9,523 1,661 -11,603 -1,596 258 -548 -4,748 1,261 61 -4,936 15 Netherlands Antilles -13,244 -9,546 2,893 -3,217 2,225 -2,578 893 65 139 -357 16 Asia 27,433 29,359 8,069 -2,943 11,166 -908 -3,988 -488 -4,918 -3,319 17 Japan 13,048 20,102 8,382 494 10,855 -2,486 -2,660 672 367 1,717 18 Africa 751 -3,021 -348 -19 4 -114 -130 4 9 -139 19 Other -2,364 1,547 1,147 -10 -382 531 69 546 618 -437 20 Nonmonetary international and regional organizations 2,469 565 -605 221 36 -198 -335 -315 3 225 21 International 1,502 190 -391 151 30 -158 -286 -333 15 391 22 Latin American regional 199 666 43 70 6 -14 -9 -1 -10 1 MEMO 23 Foreign countries 46,570 -10,518 -26,281 -17,092 14,484 -6,820 -17,597 -5,746r -117 -8,741 24 Official institutions 4,123 -9,861 4,741 -569 6,403 -1,405 -1,412 -639 449 -6,626 25 Other foreign 42,447 -657 -31,022 -16,523 8,081 -5,415 -16,185 —5,107r -566 -2,115 Oil-exporting countries 26 Middle East2 -16,554 2,207 5,062 283 811 572 859 267 217 -1,030 27 Africa3 2 0 0 0 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 • January 2001 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 June July Aug. Sept. Oct. Nov. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 74.37 62.91 64.54 59.49 58.70 58.08 55.21 52.80 52.18 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 1.8099 1.7982 1.8091 1.8397 1.8813 1.9483 5 Canada/dollar 1.3849 1.4836 1.4858 1.4770 1.4778 1.4828 1.4864 1.5125 1.5426 6 China, P.R./yuan 8.3193 8.3008 8.2781 8.2772 8.2794 8.2796 8.2785 8.2785 8.2774 7 Denmark/krone 6.6092 6.7030 6.9900 7.8501 7.9471 8.2459 8.5849 8.7276 8.6992 8 European Monetary Union/euro3 n.a. n.a. 1.0653 0.9505 0.9386 0.9045 0.8695 0.8525 0.8552 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 273.28 295.70 306.30 354.14 359.04 372.97 389.67 398.29 397.94 13 Hong Kong/dollar 7.7431 7.7467 7.7594 7.7934 7.7969 7.7995 7.7985 7.7977 7.7991 14 India/rupee 36.36 41.36 43.13 44.76 44.84 45.77 45.97 46.43 46.82 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 121.06 130.99 113.73 106.13 108.21 108.08 106.84 108.44 109.01 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 9.834 9.419 9.272 9.362 9.537 9.508 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 47.05 45.97 44.52 41.71 40.01 39.90 22 Norway/krone 7.0857 7.5521 7.8071 8.6807 8.7185 8.9526 9.2331 9.3794 9.3524 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 1.7277 1.7414 1.7206 1.7406 1.7525 1.7478 25 South Africa/rand 4.6072 5.5417 6.1191 6.9147 6.8971 6.9570 7.1805 7.4902 7.6889 26 South Korea/won 947.65 1,400.40 1,189.84 1,117.94 1,115.08 1,114.47 1,117.57 1,131.10 1,156.54 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 76.736 78.852 78.283 78.731 79.291 80.381 29 Sweden/krona 7.6446 7.9522 8.2740 8.7471 8.9640 9.2771 9.6853 9.9930 10.0965 30 Switzerland/franc 1.4514 1.4506 1.5045 1.6420 1.6519 1.7149 1.7586 1.7745 1.7779 31 Taiwan/dollar 28.775 33.547 32.322 30.831 30.984 31.106 31.198 31.846 32.433 .32 Thailand/baht 31.072 41.262 37.887 39.087 40.318 40.889 41.992 43.334 43.791 33 United Kingdom/pound2 163.76 165.73 161.72 150.92 150.76 148.89 143.36 145.06 142.58 34 Venezuela/bolivar 488.87 548.39 606.82 680.96 685.86 689.17 690.39 692.86 695.77 Indexes4 NOMINAL 35 Broad (January 1997=100)' 104.44 116.48 116.87 119.43 119.86 120.65 122.08 123.83 124.76 36 Major currencies (March 1973= 100)6 91.24 95.79 94.07 96.74 97.68 99.16 100.76 102.35 103.18 37 Other important trading partners (January 1997= 100)7 104.67 126.03 129.94 131.62 131.08 130.51 131.39 133.03 133.92 REAL 38 Broad (March 1973 = 100)' 91.23r 99.25 98.66 102.02 102.46 103.00r 104.05r 105.48r 106.30 39 Major currencies (March 1973= 100)6 92.251 97.25 96.74 101.30' 102.42 104.01 105.69r 107.44r 108.53 40 Other important trading partners (March 1973= 100)7 95.58 108.20 107.44 109.35 108.89r 108.07r 108.39 109.47r 110.01 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. The February 2001 Bulletin will contain revised index values resulting from the annual table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, revision of data that underlie the calculated trade weights. For more information on the see inside front cover. indexes of foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 84 2. U.S. cents per currency unit. (October 1998), pp. 811-818. 3. As of January 1999, the euro is reported in place of the individual euro area currencies. 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies By convention, the rate is reported in U.S. dollars per euro. These currency rates can be of a broad group of U.S. trading partners. The weight for each currency is computed as an derived from the euro rate by using the fixed conversion rates (in currencies per euro) as average of U.S. bilateral import shares from and export shares to the issuing country and of a shown below: measure of the importance to U.S. exporters of that country's trade in third country markets. 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of Euro equals broad index currencies that circulate widely outside the country of issue. The weight for each 13.7603 Austrian schillings 1936.27 Italian lire currency is its broad index weight scaled so that the weights of the subset of currencies in the 40.3399 Belgian francs 40.3399 Luxembourg francs index sum to one. 5.94573 Finnish markkas 2.20371 Netherlands guilders 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 6.55957 French francs 200.482 Portuguese escudos broad index currencies that do not circulate widely outside the country of issue. The weight 1.95583 German marks 166.386 Spanish pesetas for each currency is its broad index weight scaled so that the weights of the subset of .787564 Irish pounds currencies in the index sum to one. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A63 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 2000 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 1999 February 2000 A64 December 31, 1999 May 2000 A64 March 31, 2000 August 2000 A64 June 30, 2000 November 2000 A64 Terms of lending at commercial banks November 1999 February 2000 A66 February 2000 May 2000 A66 May 2000 August 2000 A66 August 2000 November 2000 A66 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 1999 February 2000 A72 December 31, 1999 May 2000 A72 March 31, 2000 August 2000 A72 June 30, 2000 November 2000 A72 Pro forma balance sheet and income statements for priced service operations September 30, 1999 January 2000 A64 March 31, 2000 August 2000 A76 June 30, 2000 November 2000 A76 Residential lending reported under the Home Mortgage Disclosure Act 1998 September 1999 A64 1999 September 2000 A64 Disposition of applications for private mortgage insurance 1998 September 1999 A73 1999 September 2000 A73 Small loans to businesses and farms 1998 September 1999 A76 1999 September 2000 A76 Community development lending reported under the Community Reinvestment Act 1998 September 1999 A79 1999 September 2000 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • January 2001 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 US. 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, 51-4, 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, 36, 37-^tl Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Insured or guaranteed by United States, 34, 35 Foreign transactions, 60 New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Special drawing rights, 5, 10, 50, 51 Production, 43, 45 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 27 Member banks, reserve requirements, 8 New security issues, 31 Mining production, 45 Rates on securities, 23 Mobile homes shipped, 46 Stock market, selected statistics, 24 Monetary and credit aggregates, 4, 12 Stocks (See also Securities) Money and capital market rates, 23 New issues, 31 Money stock measures and components, 4, 13 Prices, 24 Mortgages (See Real estate loans) Mutual funds, 13, 32 Student Loan Marketing Association, 30 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 NATIONAL defense outlays, 26 Thrift institutions, 4. (See also Credit unions and Savings National income, 48 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 US. 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, 37^11 National income accounts, 48 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • January 2001 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD W. KELLEY, JR. ROGER W. FERGUSON, JR., Vice Chairman LAURENCE H. MEYER OFFICE OF BOARD MEMBERS DIVISION OF INTERNATIONAL FINANCE LYNN S. FOX, Assistant to the Board KAREN H. JOHNSON, Director DONALD J. WINN, Assistant to the Board DAVID H. HOWARD, Deputy Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison VINCENT R. REINHART, Deputy Director BOB STAHLY MOORE, Special Assistant to the Board THOMAS A. CONNORS, Associate Director ROSANNA PIANALTO-CAMERON, Special Assistant to the Board DALE W. HENDERSON, 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 LEGAL DIVISION STEVEN B. KAMIN, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel RALPH W. TRYON, Assistant Director SCOTT G. ALVAREZ, Associate General Counsel RICHARD M. ASHTON, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS KATHLEEN M. O'DAY, Associate General Counsel DAVID J. STOCKTON, Director ANN E. MISBACK, Assistant General Counsel EDWARD C. ETTIN, Deputy Director SANDRA L. RICHARDSON, Assistant General Counsel DAVID WILCOX, Deputy Director STEPHEN L. SICILIANO, Assistant General Counsel WILLIAM R. JONES, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel MYRON L. KWAST, Associate Director STEPHEN D. OLINER, Associate Director OFFICE OF THE SECRETARY PATRICK M. PARKINSON, Associate Director LAWRENCE SLIFMAN, Associate Director JENNIFER J. JOHNSON, Secretary CHARLES S. STRUCKMEYER, Associate Director ROBERT DEV. FRIERSON, Associate Secretary MARTHA S. SCANLON, Deputy Associate Director BARBARA R. LOWREY, Associate Secretary and Ombudsman JOYCE K. ZICKLER, Deputy Associate Director WAYNE S. PASSMORE, Assistant Director DIVISION OF BANKING DAVID L. REIFSCHNEIDER, Assistant Director SUPERVISION AND REGULATION JANICE SHACK-MARQUEZ, Assistant Director RICHARD SPILLENKOTHEN, Director ALICE PATRICIA WHITE, Assistant Director STEPHEN C. SCHEMERING, Deputy Director GLENN B. CANNER, Senior Adviser HERBERT A. BIERN, Senior Associate Director DAVID S. JONES, Senior Adviser ROGER T. COLE, Senior Associate Director THOMAS D. SIMPSON, Senior Adviser WILLIAM A. RYBACK, Senior Associate Director GERALD A. EDWARDS, JR., Associate Director DIVISION OF MONETARY AFFAIRS STEPHEN M. HOFFMAN, JR., Associate Director JAMES V. HOUPT, Associate Director DONALD L. KOHN, Director JACK P. JENNINGS, Associate Director DAVID E. LINDSEY, Deputy Director MICHAEL G. MARTINSON, Associate Director BRIAN F. MADIGAN, Associate Director MOLLY S. WASSOM, Associate Director RICHARD D. PORTER, Deputy Associate Director HOWARD A. AMER, Deputy Associate Director WILLIAM C. WHITESELL, Assistant Director NORAH M. BARGER, Deputy Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board BETSY CROSS, Deputy Associate Director RICHARD A. SMALL, Deputy Associate Director DIVISION OF CONSUMER DEBORAH P. BAILEY, Assistant Director AND COMMUNITY AFFAIRS BARBARA J. BOUCHARD, Assistant Director DOLORES S. SMITH, Director ANGELA DESMOND, Assistant Director GLENN E. LONEY, Deputy Director JAMES A. EMBERSIT, Assistant Director SANDRA F. BRAUNSTEIN, Assistant Director CHARLES H. HOLM, Assistant Director MAUREEN P. ENGLISH, Assistant Director HEIDI W. RICHARDS, Assistant Director ADRIENNE D. HURT, Assistant Director WILLIAM G. SPANIEL, Assistant Director IRENE SHAWN MCNULTY, Assistant Director DAVID M. WRIGHT, Assistant Director SIDNEY M. SUSSAN, Adviser WILLIAM C. SCHNEIDER, JR., Project Director, National Information Center 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, Associate Director MANAGEMENT DIVISION KENNETH D. BUCKLEY, Assistant Director STEPHEN J. CLARK, Associate Director, Finance Function JOSEPH H. HAYES, JR., Assistant Director DARRELL R. PAULEY, Associate Director, Human Resources JEFFREY C. MARQUARDT, Assistant Director Function EDGAR A. MARTINDALE, Assistant Director SHEILA CLARK, EEO Programs Director MARSHA REIDHILL, Assistant Director 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

A68 Federal Reserve Bulletin • January 2001 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman ROGER W. FERGUSON, JR. EDWARD W. KELLEY, JR. MICHAEL H. MOSKOW EDWARD M. GRAMLICH LAURENCE H. MEYER WILLIAM POOLE THOMAS M. HOENIG CATHY E. MINEHAN ALTERNATE MEMBERS JERRY L. JORDAN ANTHONY M. SANTOMERO JAMIE B. STEWART, JR. ROBERT D. MCTEER, JR. GARY H. STERN 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, Evansville, Indiana 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 KARL A 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

A70 Federal Reserve Bulletin • January 2001 Federal Reserve Board Publications For ordering assistance, write PUBLICATIONS SERVICES, Rates for subscribers outside the United States are as follows MS-127, Board of Governors of the Federal Reserve System, and include additional air mail costs: Washington, DC 20551, or telephone (202) 452-3244, or FAX Federal Reserve Regulatory Service, $250.00 per year. (202) 728-5886. You may also use the publications order Each Handbook, $90.00 per year. form available on the Board's World Wide Web site FEDERAL RESERVE REGULATORY SERVICE FOR PERSONAL (http://www.federalreserve.gov). When a charge is indicated, pay- COMPUTERS. CD-ROM; updated monthly. ment should accompany request and be made payable to the Standalone PC. $300 per year. Board of Governors of the Federal Reserve System or may be Network, maximum 1 concurrent user. $300 per year. ordered via Mastercard, Visa, or American Express. Payment from Network, maximum 10 concurrent users. $750 per year. foreign residents should be drawn on a U.S. bank. Network, maximum 50 concurrent users. $2,000 per year. Network, maximum 100 concurrent users. $3,000 per year. Subscribers outside the United States should add $50 to cover BOOKS AND MISCELLANEOUS PUBLICATIONS additional airmail costs. THE FEDERAL RESERVE SYSTEM—PURPOSES AND FUNCTIONS. THE FEDERAL RESERVE ACT AND OTHER STATUTORY PROVISIONS 1994. 157 pp. AFFECTING THE FEDERAL RESERVE SYSTEM, as amended ANNUAL REPORT, 1999. through October 1998. 723 pp. $20.00 each. ANNUAL REPORT: BUDGET REVIEW, 2000. THE U.S. ECONOMY IN AN INTERDEPENDENT WORLD: A MULTI- FEDERAL RESERVE BULLETIN. Monthly. $25.00 per year or $2.50 COUNTRY MODEL, May 1984. 590 pp. $14.50 each. each in the United States, its possessions, Canada, and INDUSTRIAL PRODUCTION—1986 EDITION. December 1986. Mexico. Elsewhere, $35.00 per year or $3.00 each. 440 pp. $9.00 each. ANNUAL STATISTICAL DIGEST: period covered, release date, num- FINANCIAL FUTURES AND OPTIONS IN THE U.S. ECONOMY. ber of pages, and price. December 1986. 264 pp. $10.00 each. 1981 October 1982 239 pp. $ 6.50 FINANCIAL SECTORS IN OPEN ECONOMIES: EMPIRICAL ANALY- 1982 December 1983 266 pp. $ 7.50 SIS AND POLICY ISSUES. August 1990. 608 pp. $25.00 each. 1983 October 1984 264 pp. $11.50 RISK MEASUREMENT AND SYSTEMIC RISK: PROCEEDINGS OF A 1984 October 1985 254 pp. $12.50 JOINT CENTRAL BANK RESEARCH CONFERENCE. 1996. 1985 October 1986 231 pp. $15.00 578 pp. $25.00 each. 1986 November 1987 288 pp. $15.00 1987 October 1988 272 pp. $15.00 1988 November 1989 256 pp. $25.00 EDUCATION PAMPHLETS 1980-89 March 1991 712 pp. $25.00 Short pamphlets suitable for classroom use. Multiple copies are 1990 November 1991 185 pp. $25.00 available without charge. 1991 November 1992 215 pp. $25.00 1992 December 1993 215 pp. $25.00 1993 December 1994 281 pp. $25.00 Consumer Handbook on Adjustable Rate Mortgages 1994 December 1995 190 pp. $25.00 Consumer Handbook to Credit Protection Laws 1990-95 November 1996 404 pp. $25.00 A Guide to Business Credit for Women, Minorities, and Small Businesses Series on the Structure of the Federal Reserve System SELECTED INTEREST AND EXCHANGE RATES—WEEKLY SERIES OF The Board of Governors of the Federal Reserve System CHARTS. Weekly. $30.00 per year or $.70 each in the United The Federal Open Market Committee States, its possessions, Canada, and Mexico. Elsewhere, $35.00 per year or $.80 each. Federal Reserve Bank Board of Directors Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. / (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 general interest. Requests to obtain single copies of the full text or 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- 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 LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH of print. Staff Studies 167-174 are available on line at IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. www.federalreserve. gov/pubs/staffstudies. Lowrey. December 1997. 17 pp. 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- DENCE, by Gregory Elliehausen. April 1998. 35 pp. ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- Donald Savage. February 1990. 12 pp. KET DISCIPLINE, by Study Group on Subordinated Notes 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- and Debentures, Federal Reserve System. December 1999. VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by 69 pp. Gregory E. Elliehausen and John D. Wolken. September 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study 1990. 35 pp. Group on Disclosure, Federal Reserve System. March 2000. 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- 35 pp. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED Rhoades. February 1992. 11 pp. STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Federal Reserve Bulletin • January 2001 Maps of the Federal Reserve System ALASKA HAWAII LEGEND Both pages Facing page • Federal Reserve Bank city • Federal Reserve Branch city • Board of Governors of the Federal — Branch boundary Reserve System, Washington, D.C. NOTE The Federal Reserve officially identifies Districts by num- of Puerto Rico and the U.S. Virgin Islands; the San Franber and Reserve Bank city (shown on both pages) and by cisco Bank serves American Samoa, Guam, and the Comletter (shown on the facing page). monwealth of the Northern Mariana Islands. The Board of In the 12th District, the Seattle Branch serves Alaska, Governors revised the branch boundaries of the System and the San Francisco Bank serves Hawaii. most recently in February 1996. The System serves commonwealths and territories as follows: the New York Bank serves the Commonwealth Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 1-A 2-B 3-C 4-D 5-E Pittsburgh Baltimore MD II /c i vr w\ \ NC NIL Buffalo Cincinnati •Charlotte MA ® / I / NY NJ sc CR ^ RI BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H • Nashville IN KY AL \ £ Ml , / Birmingham \VI ii' ) in r Detroit• Louisville MS ( CIA 1A MO - TN LA Jacksonville AR 1 • Memphis N„ New Orleans H-, Rock ( MS Miami ATLANTA CHICAGO ST. LOUIS ND MI SU W1 MINNEAPOLIS 10-J 12-L WY 1 NE CO Omaha • VI MO KS • Denver ALASKA Seattle MM L Oklahoma Cit\ • Portland OK OR / KANSAS CITY ID NV Y 11-K TX Salt iSke City NM • 1 ( • in- EL Paso A__rJ Y Houston r •I.OS An-eles San Antonio HAWAII AZ DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • January 2001 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 Charisse R. Lillie Anthony M. Santomero Glenn A. Schaeffer 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 Charles E. Bunch 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 James F. Goodmon Dan M. Bechter1 ATLANTA 30303 John F. Wieland Jack Guynn Paula Lovell Patrick K. Barron James M. McKee Birmingham 35283 Catherine Sloss Crenshaw Andre T. Anderson Jacksonville 32231 Julie K. Hilton Robert J. Slack Miami 33152 Mark T. Sodders James T. Curry III Nashville 37203 Whitney Johns Martin Melvyn K. Purcell1 New Orleans 70161 Ben Tom Roberts 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 Charles W. Mueller William Poole Walter L. Metcalfe, Jr. W. LeGrande Rives Little Rock 72203 Vick M. Crawley Robert A. Hopkins Louisville 40232 To be announced Thomas A. Boone Memphis 38101 Gregory M. Duckett Martha Perine Beard MINNEAPOLIS 55480 James J. Howard Gary H. Stern Ronald N. Zwieg James M. Lyon Helena 59601 Thomas O. Markle Samuel H. Gane KANSAS CITY 64198 Terrence P. Dunn Thomas M. Hoenig Jo Marie Dancik Richard K. Rasdall Denver 80217 Kathryn A. Paul Carl M. Gambs1 Oklahoma City 73125 Patricia B. Fennell Kelly J. Dubbert Omaha 68102 Gladys Styles Johnston Steven D. Evans DALLAS 75201 H. B. Zachry, Jr. Robert D. McTeer, Jr. Patricia M. Patterson Helen E. Holcomb El Paso 79999 To be announced Sammie C. Clay Houston 77252 To be announced Robert Smith III1 San Antonio 78295 To be announced James L. Stull1 SAN FRANCISCO 94120 Nelson C. Rising Robert T. Parry George M. Scalise John F. Moore Los Angeles 90051 William D. Jones Mark L. Mullinix2 Portland 97208 Nancy Wilgenbusch Raymond H. Laurence1 Salt Lake City 84125 H. Roger Boyer 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 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

A76 Federal Reserve Bulletin • January 2001 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis