Federal Reserve Bulletin, 2001-02

Volume 87 • Number 2 • February 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 47 SUPERVISION OF LARGE COMPLEX Interim rule on the definition of financial activi- BANKING ORGANIZATIONS ties under the Bank Holding Company Act. The long-term trends of consolidation and inno- Final rule on procedures to qualify as a financial vation in the U.S. banking system have intensified holding company and on permissible activities. over the past decade. A small number of banking Increase in the exemption threshold for deposiorganizations now hold a larger portion of the tory institutions reporting under HMDA. banking system's assets, and, at the same time, their activities have become more complex. As Proposed revisions to Regulation C. a result, the Federal Reserve has altered its Proposed amendments to Regulation Z regarding approach to the supervision of the largest, most the Home Ownership and Equity Protection Act complex banking organizations (LCBOs). This of 1994. new approach focuses on the most important risks facing U.S. banking organizations and the ways in Proposed amendment to Regulation Y. which these risks are managed. This article dis- Proposed revisions to calculation methods for cusses the Federal Reserve's risk-focused superpriced services. vision program as applied to LCBOs. Proposal to allow financial holding companies to offer real estate services. 58 INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION FOR DECEMBER 2000 Publication of the December 2000 update to the Bank Holding Company Supervision Manual. Industrial production fell 0.6 percent in Decem- Enforcement actions and termination of previous ber, to 147.3 percent of its 1992 average, after actions. two months of smaller losses. The rate of capacity utilization for total industry fell to 80.6 per- Changes in Board staff. cent in December, a level IV2 percentage points below its 1967-99 average 68 MINUTES OF THE MEETING OF THE FEDERAL OPEN MARKET COMMITTEE HELD 61 ANNOUNCEMENTS ON NOVEMBER 15, 2000 Federal Open Market Committee directive. At this meeting, the Committee voted to maintain Statement on the nomination of Paul O'Neill as the existing stance of monetary policy, keeping Secretary of the Treasury. its target for the federal funds rate at 6V2 percent. The Committee members also agreed that Statement on the resignation of Arthur Levitt as the risks continued to be weighted mainly toward SEC chairman. conditions that might generate heightened infla- Appointment of new members, president, and tion pressures in the foreseeable future. vice president of the Thrift Institutions Advisory Council. Adoption of an interagency rule on the disclosure 75 LEGAL DEVELOPMENTS and reporting of CRA-related agreements. Various bank holding company, bank service cor- Ruling that the "finder role" is a permissible poration, and bank merger orders; and pending activity for financial holding companies. cases. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 FINANCIAL AND BUSINESS STATISTICS A78 INDEX TO STATISTICAL TABLES These tables reflect data available as of A80 BOARD OF GOVERNORS AND STAFF December 27, 2000. A82 FEDERAL OPEN MARKET COMMITTEE AND A3 GUIDE TO TABULAR PRESENTATION STAFF; ADVISORY COUNCILS A4 Domestic Financial Statistics A84 FEDERAL RESERVE BOARD PUBLICATIONS A42 Domestic Nonfinancial Statistics A50 International Statistics A86 MAPS OF THE FEDERAL RESERVE SYSTEM A63 GUIDE TO STATISTICAL RELEASES AND A88 FEDERAL RESERVE BANKS, BRANCHES, SPECIAL TABLES AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

PUBLICATIONS COMMITTEE Lynn S. Fox, Chair • Jennifer J. Johnson • Karen H. Johnson • Donald L. Kohn • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • 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

Supervision of Large Complex Banking Organizations Lisa M. DeFerrari and David E. Palmer, of the range of financial activities conducted, an extension Board's Division of Banking Supervision and Regu- of long-term trends. From 1989 to 1999, the number lation, prepared this article. of independent banking organizations in the United States fell from 9,500 to 6,800.! Over the same Over the past decade, the long-term trends of consoli- period, total assets held by these banking organizadation and innovation in the U.S. banking system tions rose nearly 50 percent in real terms (chart 1). A have intensified. Today a large proportion of assets related trend is that the banking system's assets have held by U.S. banking organizations is concentrated become even more concentrated than before in the in a small number of companies, and U.S. banking largest banking organizations. Specifically, the share organizations have integrated into their product mix of total assets held by the fifty largest U.S. banking activities that extend well beyond traditional deposit- organizations rose from 55 percent in 1989 to 74 pertaking and lending. As a result of these develop- cent in 1999; the share held by the ten largest grew ments, there is a small number of banking organiza- from 26 percent to 49 percent (chart 2). tions that are larger and engage in a wider array of Expansion in the range of financial activities of financial activities than at any time in recent history. U.S. banking organizations is reflected in an increase Banking supervisors have responded to these both in the notional amount of derivatives contracts changes by adapting their approaches to supervision and in the size of nonbank subsidiaries. A small so that they continue to be aligned with the way finan- number of institutions are responsible for the largest cial organizations structure and manage their business portion of derivatives activity of U.S. banking organiactivities. These newer approaches—collectively referred to as risk-focused supervision—are designed to focus the greatest amount of supervisory attention 1. Included are all bank holding companies and all independent banks (with no holding company). Notably, most of the consolidation on the business areas that represent the greatest risk in the banking system has occurred as the result of mergers and to a banking organization's overall condition. acquisitions, but bank failures at the beginning of the period also played a role. For more detail, see Stephen A. Rhoades, Bank The Federal Reserve began to implement a struc- Mergers and Banking Structure in the United States, 1980-98, Staff tured, more formal program of risk-focused super- Studies 174 (Board of Governors of the Federal Reserve System, vision in the early 1990s, and that program continues August 2000). to evolve as the banking system itself continues to change. Since the mid-1990s, the Federal Reserve 1. Number and total assets of U.S. banking organizations, has devoted particular attention to developing and 1989-99 implementing a program for the supervision of the largest, most complex banking organizations, or Number Assets (billions of dollars) LCBOs. Given the speed with which the risk profiles of these institutions can change, the LCBO super- 8,000 — Number' — 8,000 vision program incorporates both a more continuous supervision process than in the past and a greater 6,000 — ^— 6,000 emphasis on the evaluation of banking organizations' internal systems and controls for managing risk. 4,000 — Tolalassets in real term^ «*» DEVELOPMENT OF THE PROGRAM FOR LCBOS 2,000 — — 2,000 Trends in the Banking Industry I I 1 1 . i i i i i i l 1989 1991 1993 1995 1997 1999 Since 1989, the U.S. banking industry has undergone 1. Includes all bank holding companies and independent banks with no holding company. both consolidation in assets and expansion in the 2. Adjusted by the GDP deflator (base year = 1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

48 Federal Reserve Bulletin • February 2001 2. Share of total banking assets held by the fifty largest ated with firms engaged principally in corporate secu- U.S. banking organizations, selected years, 1989-99 rities underwriting and dealing. Thus, the banking business and the securities business were effectively separated. Starting in the mid-1980s, this separation began to diminish as some U.S. bank holding companies established securities subsidiaries, subject to revenue and other limits to prevent violation of the Glass-Steagall Act.4 U.S. banking organizations, however, were still generally prohibited from engaging in insurance underwriting activities. The Gramm- Leach-Bliley Act of 1999 eliminated the separation of financial activities, allowing U.S. banking organizations with well-capitalized and well-managed bank subsidiaries to engage in both securities and insurance underwriting activities through separate subsidiaries. Banking organizations are now allowed to own securities and insurance companies and vice versa. zations, with the ten largest institutions accounting for nearly 95 percent of the total notional amount. Supervisory Responses Growth in the assets of nonbank subsidiaries of U.S. banking organizations over the past decade reflects Supervisory programs for state member banks and in large part a significant expansion in the securities bank holding companies are implemented by indiactivities of the largest organizations. Total assets of vidual Reserve Banks under policies and procedures nonbank subsidiaries held by the largest fifty banking issued by the Federal Reserve Board.5 Historically, organizations now represent nearly a quarter of their the Reserve Banks generally used local supervisory total consolidated assets, and the largest ten compastaff for examinations and inspections, which, for the nies account for the greatest proportion of these nonbank assets.2 most part, were focused on legal entities, such as banks, Edge corporations, or bank holding compa- Many factors account for the increase in asset nies. The examinations and inspections were conconcentration at the largest U.S. banking organizaducted once a year in most cases, and, subsequently, tions as well as the broadening of the range of their a rating was issued for the entity examined. There financial activities during the 1990s. These factors was usually little supervisory activity focused on the include increased competition in financial markets, examined entity during the remainder of the year improvements in information technology, the lifting unless a crisis arose or the examination revealed of restrictions on interstate branching, some easing material problems that required continued attention of regulatory restrictions on securities activities, the by supervisors. Ratings were arrived at using an globalization of economic activity, and an effort by approach that placed a great deal of emphasis on the banking organizations to diversify revenue sources valuation of assets, particularly the loan portfolio, to mitigate cyclical effects on core banking activities, while also taking into consideration assessments of such as lending and deposit-taking.3 other factors, including capital, earnings, liquidity, These trends are expected to continue, particularly and management. given recent changes in U.S. banking law. During the six decades before 1999, U.S. banking organizations were subject to the provisions of the Banking Act of 4. For example, these so-called section 20 securities subsidiaries 1933, commonly referred to as the Glass-Steagall (referring to section 20 of the Glass-Steagall Act) were allowed to have only a certain percentage of their revenue stem from securi- Act, which prohibited U.S. banks from being affilities activities normally not allowed in a commercial bank—"bankineligible" activities—and were also limited outright from conducting other activities. 5. The type of charter that a U.S. bank holds determines its primary 2. For a few of the fifty largest companies, data on total nonbank- supervisor. For nationally chartered banks, the primary supervisor is ing assets were not available. the Office of the Comptroller of the Currency; for state-chartered 3. For a useful survey on this topic, see Allen N. Berger, Rebecca S. banks that are members of the Federal Reserve System, it is the Demsetz, and Philip E. Strahan, "The Consolidation of the Financial Federal Reserve and the respective state; and for state-chartered banks Services Industry: Causes, Consequences, and Implications for the that are not members of the Federal Reserve, it is the Federal Deposit Future," Journal of Banking and Finance, vol. 23 (February 1999), Insurance Corporation and the respective state. The Federal Reserve pp. 135-94. also supervises bank holding companies and Edge corporations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Supervision of Large Complex Banking Organizations 49 Key Milestones in Risk-Focused Supervision As with most large-scale supervisory efforts, the develop- • SR 98-13: Enhancements to the Interagency Program ment of risk-focused supervision and of the LCBO program for Supervising the U.S. Operations of Foreign Banking has progressed in stages. The formal elements of the pro- Organizations. Describes improvements to the interagency gram's policy development include a number of supervision risk-focused supervision program for the U.S. operations of and regulation (SR) letters, published by the Division of foreign banking organizations. Banking Supervision and Regulation at the Federal Reserve • SR 98-25: Sound Credit Risk Management and the Use Board. In general, these SR letters provide a way for the of Internal Credit Risk Ratings at Large Banking Organi- Board to communicate supervisory policies to its supervi- zations. Guides supervisors in their evaluation of creditsory personnel, to the banking industry, to other market risk-management systems and offers examples of sound participants, and to the general public.1 The SR letters practices. related to risk-focused supervision and the LCBO program • SR 99-15: Risk-Focused Supervision of Large Complex include the following. Banking Organizations. Applies the risk-focused supervision framework to LCBOs and emphasizes the challenges • SR 95-22: Enhanced Framework for Supervising the inherent in evaluating their internal control and risk- U.S. Operations of Foreign Banking Organizations. Details management systems. a risk-focused supervision program developed by the bank- • SR 99-18: Assessing Capital Adequacy in Relation to ing supervisory authorities that have supervisory and exami- Risk at Large Complex Banking Organizations and Others nation responsibilities for the U.S. operations of foreign with Complex Risk Profiles. Directs supervisors to evaluate banking organizations. banking organizations' internal capital management pro- • SR 95-51: Rating the Adequacy of Risk Management cesses to determine whether they meaningfully tie the iden- Processes and Internal Controls at State Member Banks tification, monitoring, and evaluation of risk to the determiand Bank Holding Companies. Instructs examiners to shift nation of the institutions' capital needs.2 more of their focus to risk-management processes and inter- • SR 00-13: Framework for Financial Holding Company nal controls in recognition that new technologies, product Supervision. Provides guidance concerning the purpose and innovation, and the size and speed of financial transactions scope of the Federal Reserve's supervision of financial have changed the nature of financial markets. holding companies, with particular emphasis on working • SR 96-14: Risk-Focused Safety and Soundness Exami- with other relevant supervisors and regulators. nations and Inspections. Outlines the elements of risk- • SR 00-14: Enhancements to the Interagency Program focused examinations and inspections, which focus particu- for Supervising the U.S. Operations of Foreign Banking lar attention on the most important risks facing an institution Organizations. Discusses additional steps that are being and evaluate lower-risk businesses less intensively. taken to further refine the interagency risk-focused super- • SR 97-24: Risk-Focused Framework for Supervision of vision program for the U.S. operations of foreign banking Large Complex Institutions. Describes the framework of a organizations. risk-focused supervision program for institutions with more than $1 billion in assets. The details of the framework, The LCBO program continues to develop and to be including examination and inspection procedures, are con- refined in response to changes in the industry. Senior mantained in an attachment, "Framework for the Risk-Focused agement within the Federal Reserve System meet regularly Supervision of Large Complex Organizations." to review the LCBO program and to strengthen it, where possible. 1. The SR letters are available at www.federalreserve.gov/boarddocs/ srletters. The first two digits of each letter indicate the year of issuance, the second, the sequence of its issuance that year. 2. For more detail, see text note 11. Changes in the environment in which banking supervision. Various aspects of risk-focused superorganizations operate have had a very substantial vision have been communicated in a series of letters impact on the way they are managed and, in turn, on policy guidance starting in 1995 (see box "Key have necessitated changes in the way they are super- Milestones in Risk-Focused Supervision"). The vised. It became clear that the traditional process LCBO supervision program, which was formally of examining banking organizations once a year— established in 1999, is essentially an intensive applifocusing mostly on their stock of assets at a fixed cation of risk-focused supervision to the largest, most point—would no longer be an effective way to complex banking organizations. These are the instituevaluate the condition of many banking organiza- tions in which change is most dramatic, with respect tions. The Federal Reserve responded to this situation both to the impact of change and the speed with in the 1990s by developing a program of risk-focused which changes in the organizations' risk profiles can Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

50 Federal Reserve Bulletin • February 2001 occur (see box "Criteria for Inclusion in the LCBO Overview of the LCBO Program Program"). Generally, by paying special attention to LCBOs, supervisors aim to minimize significant The fundamental goals of the Federal Reserve's adverse effects on the public, on financial markets supervisory process for LCBOs are to maintain an and the financial system in the United States and accurate and current assessment of each banking abroad, and on taxpayers, who provide the ultimate organization's financial and managerial strength and resources behind the bank safety net. to respond in a timely fashion to any emerging problem. There are a number of important elements that together define this program (see box "Comparison Criteria for Inclusion in the LCBO Program of Traditional Bank Examinations with Risk-Focused Supervision for LCBOs"): A number of measures are employed as guidelines for determining whether a particular banking organization • The program places strong emphasis on should be included in the LCBO supervision program. understanding and evaluating each institution's These measures take into account the size of the organiinternal risk-management processes and control zation, the extent of international operations, participainfrastructures. tion in large-value payment and settlement systems, and the extent of custody operations, fiduciary activities, and • Each LCBO is assigned a team of Federal trading activities. For foreign organizations with a signifi- Reserve supervisors, who conduct an ongoing supercant U.S. presence, these measures are assessed for U.S. visory program based on the risks that have been operations as well as for the global organization. Mea- identified in the organization's operations. sures that are considered include the following: • Small teams with technical expertise on such issues as credit-risk modeling, payment systems, and • Total assets information technology are available to supplement • Size of off-balance-sheet exposures individual LCBO teams. • Activity in derivatives markets • The Federal Reserve's assessment of the banking • Trading assets and trading revenue organization's risk profile, as well as the correspond- • Foreign assets and foreign deposits ing plan for supervision of the institution, is updated • Funding from market (non-deposit) sources quarterly, or more frequently as warranted, taking • Securities borrowed and securities lent into account market developments • The program stresses the development of rela- • Income from fiduciary activity tionships with the management of the banking organi- • Mutual fund sales and mutual fund fee income zation at various levels through regular and frequent • Revenue earned in mortgage markets communications. • Assets under management • The banking organizations that are covered by • Activity in payment systems the LCBO program are viewed not just individually • Involvement in securities settlements but also as a group to identify common or emerging • Geographic scope of operations weaknesses that have the potential to become more • Merchant banking activities and proprietary serious or to become systemic problems. investments No single factor qualifies or disqualifies an organiza- Regardless of how their business lines are mantion from being considered an LCBO. It is also important aged, most LCBOs operate through a variety of legal to note that the population of LCBOs is fluid and can entities that fall under the jurisdiction of different change as a result of developments affecting a banking licensing and supervisory authorities, requiring a high organization or changes in the industry as a whole. In level of information sharing and coordination among particular, the number of LCBOs can change rather relevant supervisory agencies. For example, because quickly as a result of mergers and acquisitions. Since a number of U.S.-headquartered LCBOs have lead the establishment of the LCBO program, the number of banks with national bank charters, the Federal institutions that are considered LCBOs has been in the Reserve and the Office of the Comptroller of the range of twenty-five to thirty companies. In addition, Currency, the supervisor for national banks, cooperthere are a number of banking organizations that do not meet enough of the criteria to be considered LCBOs but ate closely in the supervision of these banking have sufficient size or complexity in some of their activi- organizations. This collaboration among superties to be covered by the program to a certain extent. visory agencies both facilitates understanding the risk profile of a banking organization as a whole and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Supervision of Large Complex Banking Organizations 51 Comparison of Traditional Bank Examinations with Risk-Focused Supervision for LCBOs Traditional Bank Examinations Risk-Focused Supervision for LCBOs Supervisory process is focused on a single point in time Supervisory process is continuous and is more tuned and is rarely continuous unless there is a crisis. to market developments. Examinations are generally staffed locally. Institutions are assigned designated supervisory teams. The teams are supplemented with specialists, who may be drawn from across the Federal Reserve System. Significant emphasis is placed on valuation of assets. Focus is on risk-management processes and control systems. Dialogue with management is mostly related to There is more frequent communication with senior examination findings unless there is a crisis. management. Supervisory process includes more interaction with line management of business activities and risks. Program includes business line and functional reviews that incorporate identification of best practices. reduces the burden of the supervisory process on that company-wide. Using both approaches, examiners organization. evaluate six major types of risk—credit, market, liquidity, operational, legal, and reputational (see box "Major Risk Categories"). For significant business BASIC FRAMEWORK lines, examiners prepare an activity risk matrix by FOR RISK-FOCUSED SUPERVISION evaluating the inherent risk undertaken by the busi- The basic framework for risk-focused supervision— ness line with respect to the six major risk categories the program that the Federal Reserve applies to and then evaluating whether that risk is low, modall complex banking organizations with more than erate, or high. They then assess the strength of the $1 billion in assets (discussed in SR 97-24)—consists organization's systems for managing those risks, of four principal activities that are carried out in a evaluating them as strong, acceptable, or weak. Riskcontinuous cycle.6 These are (1) gaining an under- management systems include oversight by the board standing of the institution through a detailed risk of directors and senior management; policies, proassessment; (2) developing the supervisory plan; cedures, and limits; internal risk review and man- (3) executing the supervisory plan and reporting the agement information systems; and internal control results; and (4) determining and communicating the processes. overall condition of the banking organization and The institution-wide risk assessment is also preaddressing supervisory concerns. pared along the lines of the six major types of risk and includes a composite risk assessment. Examiners judge the level of each risk—high, moderate, or Formulating the Risk Assessment low—and the direction of risk—increasing, stable, or The process of understanding an institution and decreasing. In arriving at these assessments, examinassessing its risks combines a "bottom-up" analy- ers incorporate their evaluations of corporate-wide sis of significant business lines—including reviews processes for identifying, measuring, monitoring, and of sampled individual credits, exposures, and controlling the six major types of risk, as well as their transactions—with a "top-down" look at the broad assessments of the risk profiles of significant business policies, procedures, and controls with which the lines. banking organization identifies and manages risks Developing the Supervisory Plan 6. The Federal Reserve has also developed a program for risk- The completion of the institution-wide risk assessfocused supervision of community banks. That program is discussed in SR 97-25. ment leads to the development of a comprehensive Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

52 Federal Reserve Bulletin • February 2001 Executing the Supervisory Plan Major Risk Categories Executing the supervisory plan entails a combination Credit risk arises from the potential that a borrower or of ongoing analysis and monitoring activities, precounterparty will fail to perform on an obligation. examination analysis, and examination activity, which generally includes some level of transaction Market risk is the risk to a financial institution's condi- testing.7 Ongoing analysis and monitoring activities tion resulting from adverse movements in market rates or may include the review of policies and procedures, of prices, such as interest rates, foreign exchange rates, or internally generated management information reports equity prices. and regulatory filings, of audit findings, and of other documents. Given the wide range in size and com- Liquidity risk is the potential that an institution will be plexity of the institutions covered under the basic unable to meet its obligations as they come due. It may risk-focused framework, examination work can vary occur because an institution cannot liquidate assets or from an annual examination that is focused on signifiobtain adequate funding (referred to as funding liquidity risk) or because it cannot easily unwind or offset specific cant risk areas to a series of reviews targeted at exposures without significantly lowering market prices functional areas or business lines that are conducted because of inadequate market depth or market disrup- throughout the year. While carrying out their work, tions (referred to as market liquidity risk). examiners refer to supervisory manuals as well as supplemental guidance. The results of these super- Operational risk arises from the potential that visory assessment activities are detailed in various inadequate information systems, operational problems, written documents, including reports, letters to the breaches in internal controls, fraud, or unforeseen crises management of the institution, and, in some cases, will result in unexpected losses. memoranda that discuss the findings of reviews conducted at a number of institutions. Legal risk arises from the potential that unenforceable contracts, lawsuits, or adverse judgments will disrupt or otherwise negatively affect the operations or condition of Determining and Communicating the Condition a banking organization. of the Institution Reputational risk is the potential that negative public- The final step in the ongoing process of basic riskity regarding an institution's business practices, whether focused supervision is making a judgment about the true or not, will cause a decline in the customer base, overall condition of the banking organization, comcostly litigation, or revenue reductions. municating that condition to the company's management, and addressing any supervisory concerns that have been identified. An overall assessment of the institution's condition is prepared and sent to the institution at least annually. Management is requested supervisory plan for the banking organization. The to respond as to how it plans to address any areas of supervisory plan outlines both the ongoing monitorsupervisory concern that have been brought to its ing and examination activities that are to be carried attention in the assessment. Any necessary superout over the next twelve months and the resources visory measures for remedial action are also prepared required for these activities. The activities that make at this stage. up the supervisory plan are a direct reflection of the areas of significant risk identified in the risk assessment. The risk assessment is updated whenever sig- APPLICATION OF RISK-FOCUSED SUPERVISION nificant new information is obtained, and the supervi- TO LCBOS sory plan, in turn, is updated to reflect any significant changes in an institution's risk assessment. Increased Emphasis on Internal Systems and The supervisory plan is developed in close coordi- Controls for Managing Risk nation with other relevant supervisors and also takes The size, complexity, and rapidly changing risk prointo account the findings of internal audits and indefiles of LCBOs make evaluation of their condition as pendent reviews. The coordination inherent in the planning process is designed to utilize, to the extent feasible, work done by others to avoid duplication 7. Transaction testing involves the review of individual transactions, such as loans, derivatives contracts, or investments, to assess the of effort and unnecessary regulatory burden on the adequacy and consistency with which the institution's policies and institution. procedures are applied. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Supervision of Large Complex Banking Organizations 53 of a fixed point in time extremely difficult and, at the coordinating all supervisory activity related to it. In same time, less meaningful than for smaller, less its effort to accomplish this goal, the team must complex institutions. Therefore, for LCBOs, the maintain a high level of knowledge about the banking supervisory process places even greater emphasis organization and its strategies, organizational strucon evaluating the organizations' own systems for ture, risk-management systems, and control policies. managing risk as well as on evaluating their internal Each designated team is headed by a very senior control processes. examiner or Reserve Bank official—the "central Nevertheless, transaction testing remains an impor- point of contact," or CPC, for the institution. The tant element in the assessment of these banking orga- CPC serves as the Federal Reserve's primary day-tonizations' risk-management systems. Examiners also day contact for a particular LCBO and coordinates evaluate the sufficiency with which banking organi- the development and execution of the supervisory zations stress test their portfolios in the process of strategy for the institution. managing risk.8 Over time, as supervisors become The designated team generally comprises four to satisfied with individual banking organizations' sys- ten seasoned examiners and analysts. Team members tems for classifying and measuring risk, they are typically have broad-based knowledge and experiexpected to provide bank management with sugges- ence in banking and skill sets that are particularly tions for further improvements in the systems based relevant to the risk profile and major activities of the on industry-wide best practices, consistent with mini- banking organization. The work of the designated mum standards for safety and soundness. team is supplemented as necessary with specialists in The Gramm-Leach-Bliley Act (GLBA) authorized technical areas such as modeling credit risk and marqualifying bank holding companies to operate as ket risk, payment systems, and information technolfinancial holding companies (FHCs) and to engage ogy. Staffing for the designated team is directed by in a diverse range of financial activities. The Federal the Reserve Bank that has responsibility for leading Reserve now acts as "umbrella" supervisor for the Federal Reserve's supervisory program for the FHCs. The approach used by the Federal Reserve banking organization. A team may include members under the LCBO program is fully consistent with the from more than one Reserve Bank, and specialists process prescribed by GLBA for supervising FHCs.9 may also be drawn from across the System. Umbrella supervision under GLBA reflects the reality that the risks associated with financial activities generally cut across legal entities and business Maintaining Information Flows lines and that, in fact, most large and sophisticated financial services companies take a consolidated, or Complex banking organizations typically measure organization-wide, approach to managing their risks. and manage consolidated risk by individual cus- The umbrella role requires the Federal Reserve to tomer; by major line of business; by category of risk, understand FHCs corporate-wide systems and con- such as credit risk or market risk; by industry and trols for managing risk and to keep primary bank geographic sector; and within distinct legal entities. supervisors and other relevant supervisors advised of The supervisory team for an LCBO looks at how the any evolving problems in these areas that may affect institution measures, monitors, and controls risk in the entities they supervise and regulate. each of these areas. The team is able to maintain its ongoing understanding of these risks in part through the establishment of regular information flows from a Assignment of a Designated Team variety of sources. Included are internal management information reports from the banking organization as One of the essential elements of the supervisory well as internal and external audit reports, regulatory program for LCBOs is the assignment of a full-time filings, publicly available information, and informateam of Federal Reserve supervisors to each banking tion from other supervisors. Also included in the organization. This designated team is responsible for process are regular discussions with the management developing and maintaining the Federal Reserve's of the banking organization as well as discussions supervisory plan for the banking organization and for with other supervisory authorities responsible for that banking organization. With respect to internal 8. For example, the banking organization might conduct stress tests management information reports, some of the largest by revaluing portions of its portfolio based on a hypothetical increase in interest rates or a hypothetical change in exchange rates. banking organizations are increasingly providing 9. SR 00-13 Framework for Financial Holding Company Super- direct on-line access to this information for the supervision provides guidance concerning the purpose and scope of the visory team. Federal Reserve's supervision of FHCs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

54 Federal Reserve Bulletin • February 2001 The information-gathering portion of the ongoing respective parties with the benefit of the perspective supervision process is supported by an appropriate of their counterparts. degree of verification through examinations or targeted reviews of specific business lines. Such activities include testing of processes, procedures, and Coordinating with Other Primary Supervisors controls, as well as a degree of transaction testing and analysis that reflects the level of risk in the area being This need for the exchange of information is particureviewed and whether concern exists about the insti- larly important when the lead bank of an LCBO has a tution's ability to manage risk in that area. Targeted primary supervisor other than the Federal Reserve. reviews of business lines are generally conducted in The lead bank typically plays an integral role within the following types of circumstances: these dynamic banking organizations. In addition, systemic risk is associated with the potential dis- • When the supervisory team determines that a ruption of the operations of large banks. Thus, the business line has high inherent risk that is not well Federal Reserve needs to know more about the activicontrolled or when little information is available to ties within large insured depository institutions than the team on the operational controls can be derived from public information or from the • When the business line is new, has undergone reports of the primary bank supervisor, and it also significant expansion, or is significant in terms of needs to have more than ad hoc contact with the revenue and capital contribution but has not been primary bank supervisor. Similarly, the primary bank reviewed for an extended period supervisor needs information about the activities of a • When the business line has experienced signifi- bank's parent company and its nonbank affiliates to cant operational problems. be aware of, and address as necessary, threats to the soundness of the bank that may arise from elsewhere The objective of targeting business lines for review in the consolidated organization. is to assess the adequacy of controls on activities As noted earlier, the Federal Reserve cooperates undertaken in these business lines and to assess more routinely with primary bank supervisors in preparing fully their risk to the corporation. supervisory plans for LCBOs. The Federal Reserve takes into account work that has been done by the primary supervisor in identifying those areas that it Coordinating with Other Supervisors wants to focus on at a banking organization. In addition, there are times when examiners from both the Before the development of risk-focused supervision, Federal Reserve and the primary bank supervisor the style of communication among supervisors on participate in an examination. For example, examinmatters pertaining to an individual institution prima- ers from both the Federal Reserve and the OCC may rily involved ad hoc contact. Such contact included participate in a review of an organization's internal exchange of examination reports, sharing of informa- audit process. Such an examination is normally under tion related to specific problem situations, and coordi- the lead of one of the agencies, and, ordinarily, only nation when special examination work was necessary one report or memorandum is prepared. to obtain additional information regarding a problem situation. The supervisors involved in this traditional pattern of communication included the Office of Coordinating with Functional Regulators the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation, the Office of Thrift Because many LCBOs have become financial hold- Supervision, state banking agencies, and foreign bank ing companies, they are in a position to expand supervisors. further the range of activities they engage in through Several authorities are usually involved in super- nonbank subsidiaries. Therefore, functional regulavising various parts of the operations of LCBOs, both tors have been added to the mix of regulatory counwithin the United States and abroad. As these bank- terparts with which effective communication and ing organizations have evolved, ongoing contact cooperation needs to take place. Functional regulaamong the supervisors of the principal affiliates tors include the Securities and Exchange Commiswithin a banking organization has become particu- sion, the Commodities Futures Trading Commission, larly important. This contact is necessary not only to the National Association of Securities Dealers, and avoid duplicative work by supervisors and excessive constituents from the National Association of Insurburden on the institution but also to provide the ance Commissioners. In its role as the umbrella Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Supervision of Large Complex Banking Organizations 55 supervisor of financial holding companies, the Fed- meet to discuss important issues and formulate guideeral Reserve must coordinate its activities with these lines to improve and refine the process of banking functional regulators and work with them to under- supervision globally. stand the risk profiles of the individual regulated entities and their relation and importance to an FHC's Portfolio Approach overall risk profile. Evaluating activities of banking organizations across Coordinating with Foreign Supervisors institutions to identify trends and ensure consistency in supervisory treatment has long been a practice In the international sphere, the Federal Reserve has among supervisors.10 The LCBO program builds been working with its counterparts in various coun- upon this practice by emphasizing comparative tries around the world to strengthen communication analysis of LCBOs with similar business lines, charand cooperation in the supervision of banking organi- acteristics, and risk profiles. This portfolio approach zations that operate across borders. These efforts at to supervision serves to identify "outliers" among collaboration have intensified in recent years and LCBOs with respect to risk profiles and risknow take place in a variety of international settings, management techniques. By using this approach, as well as on a bilateral basis between supervisors supervisors are able not only to continue ensuring with respect to individual banking organizations (see box "Special Aspects of Supervising Large Foreign 10. An example is the Shared National Credit program, in which Banking Organizations"). One example of a multilat- the bank supervisory agencies review large syndicated loans (more eral effort is the Basel Committee on Banking Super- than $20 million) annually to provide an efficient and consistent review and classification of any loan or loan commitment shared by vision, in which supervisors from member countries three or more supervised institutions. Special Aspects of Supervising Large Foreign Banking Organizations Foreign banking organizations (FBOs) have a sizable pres- For FBOs that are part of the LCBO supervision proence in the United States, accounting for about 20 percent gram, the program's risk assessments are prepared speciof the assets held by banking organizations located or fically for the U.S. operations. However, U.S. supervisors operating in the United States.1 Some of the largest FBOs need to have a sufficient understanding of an FBO's global are also among the largest participants in US. financial risk-management and internal control systems in order to markets. Because of their size and complexity both on a evaluate the manner in which those systems are applied global level and in terms of their U.S. operations, large with respect to oversight and control of its US. operations. FBOs account for approximately one-third of the banking U.S. supervisors are often able to obtain much of this organizations in the LCBO program. information from FBO management based in the United U.S. bank supervisory agencies operate as "host coun- States. However, in many cases the centralized nature of try" supervisors for FBOs. As a result, although they have banking organizations' management of certain business full access to information concerning the U.S. operations lines or control functions may necessitate discussions with of FBOs, they do not have the same level of access to corporate management at the FBO's headquarters. information on FBOs' consolidated operations and risk- A core element of the LCBO program as applied to FBOs management systems as the home country supervisors do. is communication with home country supervisors. In peri- Therefore, US. supervisors focus particular attention on odic meetings and discussions, U.S. supervisors seek the evaluating an FBO's consolidated financial condition, its views of the home country supervisors on developments capital adequacy, and its general ability to support its U.S. in the home country financial system generally and with operations. In this regard, U.S. supervisors apply several respect to individual FBOs. U.S. and home country superspecific criteria to assess an FBO's ability to support its visors share information, as appropriate, contained in risk U.S. operations, including measures related to financial and assessments and supervisory plans and obtained in examinamanagerial soundness, to corporate governance, and to tions of U.S. operations of FBOs. When follow-up supertransparency.2 visory action is necessary, U.S. and home country supervisors work together closely in the development and 1. Total assets held by foreign banking organizations include total assets implementation of the supervisory action. of U.S. bank holding companies or financial holding companies held by those foreign institutions, as well as total assets of branches, agencies, Edge corporations, direct nonbank subsidiaries, and commercial lending companies held by them. these measures should be evaluated. See SR 00-14 Enhancements to the 2. The Federal Reserve, along with other banking agencies, has in place a Interagency Program for Supervising the U.S. Operations of Foreign Bankprogram for the coordinated supervision of FBOs, which outlines how ing Organizations (available at www.federalreserve.gov/boarddocs/srletters). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

56 Federal Reserve Bulletin • February 2001 consistency in the supervision of institutions with However, as non-core funding—that is, funding similar businesses and risk profiles but also to com- based on uninsured deposits—now represents a pare risk-management practices within the industry. higher percentage of total funding than in the past, In a broader sense, supervisors are given an improved particularly for LCBOs, it is important that market framework for discerning industry trends, which can participants play a greater role in the supervision of be particularly useful in informing policymakers. these banking organizations. The need for market In the development of the LCBO program, there discipline—and its prerequisite, public disclosure—is have been a number of structured efforts to improve heightened because the unusual size and complexity portfolio analysis of LCBOs. Two of the most impor- of LCBOs requires either more burdensome and tant have been Coordinated Supervisory Exercises detailed supervision and regulation or incentives from (CSEs) and the establishment of competency centers other sources to ensure safe and sound banking operaand knowledge centers. Through CSEs, supervisors tions. Discipline of LCBOs and other banking organidevelop comparative analyses of risk-management zations by the market can complement supervision processes governing specific business activities or by reducing excessive risk-taking, by alleviating functional areas, deepen their understanding of inher- some of the moral hazard that exists with a federal ent risk in specific business activities, develop exam- safety net, and, it is hoped, by decreasing the level of iner expertise, and identify gaps or weaknesses in supervision that would otherwise be necessary.12 existing Federal Reserve System policies and pro- Market discipline works through changes in access cedures. For each CSE, a team is formed that typi- to funds and changes in risk premiums as banks take cally has members from several Reserve Banks as on or shed risk or engage in certain types of transwell as staff from the Federal Reserve Board. CSEs actions. Market discipline can function directly, for can take various forms but usually involve examina- example, if the cost of funding for a banking organition work at a number of LCBOs, which are selected zation rises as its risk-taking increases; or indirectly, based on their involvement in the business activity as market participants and bank supervisors observe or control function being reviewed. Once the project prices of the company's financial instruments (includis completed, participants in a CSE prepare a report ing equity shares and various types of debt) to assess on the results and findings and distribute it within the whether the risk profile has increased and then take community of relevant supervisors. In addition, the appropriate action. Two particular approaches to maraggregate findings are discussed with the banking ket discipline appear to be most promising, particuorganizations that were included in the CSE. larly for LCBOs: increased public disclosure and The establishment of competency centers and issuance of subordinated debt by the companies.13 knowledge centers, which are housed at designated More transparent balance sheets and the disclosure Reserve Banks, arose out of a need to develop and of additional information about a banking organizamaintain Federal Reserve System expertise in spe- tion's risks are beneficial to shareholders, debt holdcific technical areas in an efficient manner. At this ers, and the market in general. Expanding this type of time, competency centers have been established for disclosure is one strategy for improving market discitwo areas—venture capital activities and capital man- pline. To be sure, most LCBOs already disclose a agement processes.11 One knowledge center has been considerable volume of information to market particiestablished with respect to insurance activities. These pants, and, indeed, there is ample evidence that marcenters assist examiners and other supervisory staff in ket discipline now plays a role in affecting their keeping abreast of the most recent developments in behavior. Nonetheless, the scale and clarity of disclotheir respective areas. In addition, competency centers maintain teams of specialists in their respective 12. The term "moral hazard" applies to instances in which an areas that are available to participate in examinations economic agent's risk-taking is affected by the fact that the agent in other Federal Reserve Districts. faces zero or reduced costs from a negative outcome of a risky action but receives full gains from a positive one. For example, if creditors of a banking organization know that deposit insurance will protect them from losses if it fails, then they have few incentives to protect against Market Discipline a deterioration in its financial condition. 13. In 1999, a Federal Reserve task force sponsored the publication The idea that financial markets can provide useful of staff studies on these two subjects: Federal Reserve System Study discipline to U.S. banking organizations is not new. Group on Disclosure, Improving Public Disclosure in Banking, Staff Studies 173 (Board of Governors of the Federal Reserve System, March 2000); and Federal Reserve System Study Group on Subordi- 11. These processes include sophisticated techniques used to model nated Notes and Debentures, Using Subordinated Debt as an Instruthe specific amount of capital necessary to support certain activities— ment of Market Discipline, Staff Studies 172 (Board of Governors of often referred to as "economic" capital. the Federal Reserve System, December 1999). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Supervision of Large Complex Banking Organizations 57 sures is better at some institutions than at others and, the Federal Reserve Board, a number of uncertainties on average, could be considerably improved. need to be clarified before a mandatory subordinated One particularly useful element of increased public debt policy would be judged desirable.15 These uncerdisclosure is the reduced tendency for market partici- tainties include how best to interpret changes in debt pants to be surprised by sudden adverse news. If spreads, whether changes in other regulatory policies, information is released on a more consistent basis, such as improvements in risk-based capital rules, will the reporting of unfavorable news is less likely to make mandatory subordinated debt unnecessary, and result in large market movements, which might have whether the bank or its holding company parent systemic implications. Supervisors are engaged in a should issue the debt. dialogue with the banking industry to identify those areas in which expanded public disclosure would be most useful. In that regard, a private-sector working BENEFITS OF THE LCBO SUPERVISION group recently issued recommendations for more fre- PROGRAM quent public disclosure of financial information by banking and securities organizations. Among its rec- To date, there have been some recognizable benefits ommendations, the group said that market risk infor- from the implementation of the LCBO program. First, mation previously disclosed annually should be dis- supervisors are able to maintain on a more consistent closed quarterly; that the content of market risk basis a deeper understanding of the risk profiles, disclosures should be improved; and, that additional financial performance, and relative strength of the credit risk information on wholesale credit exposures banking organizations in the program. Information should be made available quarterly. The group also exchanges—both with banking organizations and noted that public disclosures should vary among insti- with other supervisors—are more frequent and open tutions to reflect legitimate differences in internal at all levels than in the past. As a result of ongoing management processes and that disclosure practices monitoring and coordination efforts, the Federal should change in step with innovations in firms' Reserve becomes aware more quickly of emerging risk-management and measurement practices.14 problems and is able to work with banking organiza- The second strategy that may hold considerable tions and other supervisors, as appropriate, to take promise for augmenting market discipline is to whatever steps may be necessary to address these require banks to issue minimum amounts of subordi- issues. Having a more complete and continuous flow nated debt to unrelated parties. Subordinated debt of information also helps supervisors to gauge earlier holders have an interest in discouraging excessive the effect of potentially adverse events on banking risk-taking because their claims are both long-term organizations and on the financial system in general. and junior to all depositors and to any senior debt An additional benefit of the program is the perspecholders. Subordinated debt holders share in very lim- tive that has been gained on risk-management pracited ways in potential gains made by a company but tices across the industry. This perspective enables are exposed to considerable risk if it encounters supervisors to provide recommendations to banking financial difficulty. In this respect, their risk prefer- organizations with respect to strengthening of riskences can resemble those of banking supervisors. By management processes. These recommendations are raising a company's cost of funds, subordinated debt based on a greater understanding of industry-wide holders can send a direct signal that excessive risk- best practices, consistent with minimum standards for taking is not desired. However, as documented in a safety and soundness, than was generally available to recent report to the Congress by the Treasury and supervisors in the past. • 14. The Working Group on Public Disclosure, established in April 15. Under GLBA, the U.S. Treasury and the Federal Reserve Board 2000 by the Federal Reserve Board, was composed of representatives were required to prepare a report to the Congress on the feasibility and of eleven banking and securities firms. The working group's recom- desirability of a mandatory subordinated debt policy for certain mendations were announced in a joint press release by the Federal depository institutions and their holding companies. This report, The Reserve Board, the OCC, and the U.S. Securities and Exchange Feasibility and Desirability of Mandatory Subordinated Debt, was Commission, dated January 11, 2001, that is available on the Board's submitted to the Congress in December 2000 and is available on the web site at www.federalreserve.gov/boarddocs/press/general/2001. Board's web site at www.federalreserve.gov/boarddocs/RptCongress/. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

58 Industrial Production and Capacity Utilization for December 2000 Released for publication January 17 December, with cutbacks in many industries. Output at utilities surged 6.5 percent in response to extremely Industrial production fell 0.6 percent in December cold weather, and production in mining edged up after two months of smaller losses. After having 0.3 percent. At 147.3 percent of its 1992 average, slowed in the third quarter, industrial output con- industrial production was 3.1 percent higher than in tracted at an annual rate of 1.1 percent in the fourth December 1999. The rate of capacity utilization for quarter, the first negative quarterly reading since total industry fell to 80.6 percent in December, a level 1991. Manufacturing output declined 1.1 percent in Wi percentage points below its 1967-99 average. Industrial production and capacity utilization Ratio scale, 1992 = 100 Percent of capacity 150 Capacity utilization 140 130 CJ Y Total industry — 85 120 110 Manufacturing 80 100 1 1 1 1 1 1 1 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 1988 1990 1992 1994 1996 1998 2000 Industrial production, market groups Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 CCoonnssuummeerr ggooooddss 165 IInntteerrmmeeddiiaattee pprroodduuccttss - 165 155 — 155 - j ^r 145 145 — Durable 135 — - 135 ( y ^A 125 ~ Construction supplies ,,—/ - 125 rJ 115 - 115 - 105 - 105 ^-nr^Y^Jy' Nondurable 95 Business supplies - 95 1 V 1 1 1 1 1 I I I! 1 1 1 1 1 Ratio scale, 1992 = 100 Ratio scale, 1992 = 100 Equipment 1990 1992 1994 1996 1998 2000 1990 1992 1994 1996 1998 2000 All series are seasonally adjusted. Latest series, December. Capacity is an index of potential industrial production. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

59 Industrial production and capacity utilization, December 2000 Industrial production, index, 1992= 100 Percent change Category 2000 20001 Dec. 1999 to Sept.1 Oct.r Nov.r Dec.P Sept.r Oct.r Nov.r Dec.P Dec. 2000 Total 149.0 148.5 148.1 147.3 -.3 -.3 3.1 Previous estimate 149.1 148.9 148.6 -.1 -.2 Major market groups Products, total2 136.7 136.3 136.4 136.1 .0 -.3 .1 -.2 2.6 Consumer goods ... 123.8 122.7 122.8 122.9 .0 -.8 .1 .0 .4 Business equipment 199.5 200.2 200.3 199.4 .9 .3 .1 -.4 10.5 Construction supplies 143.1 142.2 140.7 137.7 .3 -.7 -1.1 -2.1 -3.1 Materials 171.3 170.8 169.3 167.6 .5 -.3 -.9 -1.0 4.1 Major industry groups Manufacturing 155.1 154.8 153.9 152.2 .3 -.2 -.6 -1.1 2.6 Durable 198.4 197.2 196.0 193.5 .8 -.6 -.6 -1.2 6.0 Nondurable 116.0 116.4 115.8 114.7 -.3 .3 -.5 -.9 -1.6 Mining 100.4 100.4 100.3 100.6 -.6 .0 -.1 .3 1.9 Utilities 121.7 119.4 123.9 132.0 -.3 -1.9 3.8 6.5 12.4 Capacity utilization, percent MMMEEEMMMOOO CCCaaapppaaaccciiitttyyy,,, pppeeerrrccceeennnttt 1999 2000 ccchhhaaannngggeee,,, AAvveerraaggee,, LLooww,, HHiigghh,, DDDeeeccc... 111999999999 11996677--9999 11998822 11998888--8899 tttooo Dec. Sept.r Oct/ Nov/ Dec.P DDDeeeccc... 222000000000 Total 82.1 71.1 85.4 81.7 82.4 81.9 81.4 80.6 4.6 Previous estimate 82.5 82.1 81.6 Manufacturing 81.1 69.0 85.7 81.0 81.7 81.2 80.4 79.1 5.0 Advanced processing 80.5 70.4 84.2 79.8 81.6 81.0 80.4 79.6 6.7 Primary processing . 82.5 66.2 88.9 85.0 83.0 82.6 81.5 79.2 1.6 Mining 87.4 80.3 88.0 84.5 86.4 86.5 86.5 86.9 -.9 Utilities 87.5 75.9 92.6 90.0 91.0 89.0 92.1 97.9 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. MARKET GROUPS December, but growth during the quarter was noticeably slower than earlier in the year. Production of The index for consumer goods was unchanged in other business equipment increased 1.4 percent in December, with decreases in many categories offset December, lifted by a rebound in farm machinery. by a surge in the output of consumer energy products. The production of construction supplies fell The production of durable consumer goods fell sharply in December and was down at an annual rate 1.5 percent and was pulled down for a third month of 8.2 percent in the fourth quarter. The output of by a drop in the production of automotive products. materials contracted 1.0 percent in December follow- The output of other durable goods also fell for a third ing a similar decline in November. The indexes for month and was down at an annual rate of 4.0 percent durable and nondurable materials were down sharply in the fourth quarter. The production of nondurable and were offset only partly by an increase in the consumer goods other than energy products ticked output of energy materials. Among durable materials down 0.1 percent in December. industries, the consumer parts group was hit by The output of business equipment fell 0.4 percent another decline in the production of original equipin December but increased at an annual rate of ment parts for motor vehicles. The output of semicon- 5.2 percent in the fourth quarter. The production of ductors, printed circuit boards, and other electronic both industrial and transit equipment fell about components increased 2.5 percent in December. 1V2 percent in December. The output of transit equip- Nonetheless, the fourth-quarter increase in this catement, particularly motor vehicles, dropped again and gory was at an annual rate of 24.0 percent, a pace posted a substantial loss for the quarter. The output of significantly below the average over the past two computer and office equipment grew 0.6 percent in years. The 1.6 percent drop in the index for nondura- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 Federal Reserve Bulletin • February 2001 ble materials mainly reflected declines in the output through 1999, and the modified methods affect data of paper and chemicals. from 1992 onward. The updating of source data for IP included annual data from the following reports of the Bureau of INDUSTRY GROUPS the Census: the 1997 Census of Manufactures, the 1998 Annual Survey of Manufactures, and selected Manufacturing output dropped 1.1 percent in Decem- editions of its 1998 and 1999 Current Industrial ber, with a 1.2 percent decrease in the production of Reports. Annual data from the U.S. Geological Surdurable goods and a 0.9 percent decrease in nondura- vey regarding metallic and nonmetallic minerals ble goods. Among durable goods, the losses were (except fuels) for 1998 and 1999 also were introwidespread, with the largest declines in primary met- duced. The updating included revisions to the als, fabricated metal products, and transportation monthly indicator for each industry (either physical equipment. The output of nondurables has declined, product data, production-worker hours, or electric on balance, over the last six months, and losses in power usage) and revised seasonal factors. December were widespread. The petroleum products The revision to capacity and capacity utilization and paper and products industries suffered the largest incorporated preliminary data from the 1999 Survey drops. of Plant Capacity of the Bureau of the Census, which The factory operating rate declined to 79.1 percent covers manufacturing, along with other new data on in December, 2lA percentage points below its Sep- capacity from the U.S. Geological Survey, the Departtember level and the lowest level since 1993. In ment of Energy, and other organizations. The statisrecent months, capacity utilization has fallen signifi- tics on the industrial use of electric power incorpocantly in the transportation equipment and primary rated additional information received from utilities metals industries. The operating rate at electric utili- for the past few years as well as data from the 1997 ties surged to 97.8 percent in December, a level Census of Manufactures and 1998 Annual Survey of 8.2 percentage points above its 1967-99 average. The Manufactures. operating rate for mining was 86.9 percent, a reading Aggregate IP indexes are built as annually at the high end of its range for the year. weighted chain-type indexes, beginning with data for 1977. Previously, the weights changed at the middle of every year; with the revision, the weights change REVISION OF INDUSTRIAL PRODUCTION AND every month beginning with data for 1992. CAPACITY UTILIZATION The revision is available on the Board's web site (www.federalreserve.gov/releases/gl7). The revised On December 5, the Federal Reserve Board pub- data are also available through the web site of the lished revisions to the index of industrial production Department of Commerce. Further information on (IP), to the related measures of capacity and capacity these revisions is available from the Board's Indusutilization, and to the index of industrial use of elec- trial Output Section (telephone 202-452-3197). tric power. The updated measures reflect both the The G.17 statistical release will be redesigned incorporation of newly available, more comprehen- beginning with the issue covering data for January sive source data typical of annual revisions and, for 2001. Special aggregates will be added; although some series, the introduction of improved com- some detailed industry data will no longer be listed pilation methods. The revision also included a refine- in the regular release, these series will continue to ment of the method used to aggregate the individual be available on the Federal Reserve Board's public series in the production and capacity indexes. The web site, along with a template of the redesigned new source data are for recent years, primarily 1997 tables. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

61 Announcements FEDERAL OPEN MARKET COMMITTEE mission. Our nation has benefited from his service and he will be missed by all of us who had the pleasure of working DIRECTIVE with him on a daily basis. I am, of course, hopeful that he will continue to agree to the occasional round of golf, and The Federal Open Market Committee at its meeting I wish him all good things as he ponders his next tough on December 19, 2000, decided to maintain the exist- assignment. ing stance of monetary policy, keeping its target for the federal funds rate at 6V2 percent. The drag on demand and profits from rising energy APPOINTMENT OF NEW MEMBERS, costs, as well as eroding consumer confidence, PRESIDENT, AND VICE PRESIDENT TO THE reports of substantial shortfalls in sales and earnings, THRIFT INSTITUTIONS ADVISORY COUNCIL and stress in some segments of the financial markets, suggest that economic growth may be slowing fur- The Federal Reserve Board on December 22, 2000, ther. While some inflation risks persist, they are announced the names of seven new members of its diminished by the more moderate pace of economic Thrift Institutions Advisory Council (TIAC) and desactivity and by the absence of any indication that ignated a new president and vice president of the longer-term inflation expectations have increased. council for 2001. The Committee will continue to monitor closely the The council is an advisory group made up of evolving economic situation. twelve representatives from thrift institutions. The Against the background of its long-run goals of panel was established by the Board in 1980 and price stability and sustainable economic growth and includes savings and loan, savings bank, and credit of the information currently available, the Committee union representatives. The council meets at least three consequently believes that the risks are weighted times each year with the Board of Governors to mainly toward conditions that may generate eco- discuss developments relating to thrift institutions, nomic weakness in the foreseeable future. the housing industry, mortgage finance, and certain regulatory issues. The new council president for 2001 is Thomas S. STATEMENT ON THE NOMINATION OF Johnson, Chairman and CEO, GreenPoint Bank, PAUL O'NEILL AS SECRETARY OF THE New York, New York. The new vice president is TREASURY Mark H. Wright, President and CEO, USAA Federal Savings Bank, San Antonio, Texas. Federal Reserve Board Chairman Alan Greenspan The seven new members, named for two-year issued the following statement on December 20, terms beginning January 1, are the following: 2000: Ronald S. Eliason, President and CEO, Utah Community Federal Credit Union, Provo, Utah In Paul O'Neill, the President-elect has attracted an exceptional and talented person. I look forward to again D.R. Grimes, Vice President and CEO, NetBank, working closely with an old friend and colleague. Alpharetta, Ga„ and Charlotte, N.C. Karen L. McCormick, President and CEO, First Federal Savings and Loan Association, Port Angeles, Wash. STATEMENT ON THE RESIGNATION OF James F. McKenna, President and CEO, North Shore Bank, ARTHUR LEVITT AS SEC CHAIRMAN FSB, Brookfield, Wis. Charles C. Pearson, Jr., Co-Chairman and CEO, Waypoint Federal Reserve Board Chairman Alan Greenspan Bank, Harrisburg, Pa. issued the following statement on December 20, Herbert M. Sandler, Chairman and CEO, World Savings 2000: Bank, FSB, Oakland, Calif. Arthur Levitt has much to be proud of in his lengthy and Everett Stiles, President and CEO, Macon Bank, Franklin, careful stewardship of the Securities and Exchange Com- N.C. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

62 Federal Reserve Bulletin • February 2001 Other TIAC members whose terms continue "FINDER " ROLE PERMISSIBLE ACTIVITY FOR through 2001 are the following: FINANCIAL HOLDING COMPANIES Tom R. Dorety, President and CEO, Suncoast Schools The Federal Reserve Board on December 19, 2000, Federal Credit Union, Tampa, Fla. after consulting with the Secretary of the Treasury, Cornelius D. Mahoney, Chairman, President, and CEO, has determined by rule that acting as a "finder" is an Woronoco Savings Bank, Westfield, Mass. activity that is incidental to a financial activity and Clarence Zugelter, President, CEO, and Chairman of the therefore a permissible activity for a financial holding Board, First Federal Bank, F.S.B., Kansas City, Mo. company. The Board's final rule provides that a finder may act through any means to bring together buyers and ADOPTION OF AN INTERAGENCY RULE ON sellers of products and services for transactions that DISCLOSURE AND REPORTING OF the parties themselves negotiate and consummate. CRA-RELATED AGREEMENTS Among other things, a finder may host an Internet marketplace consisting of links to the web sites of The federal bank regulatory agencies on Decem- buyers and sellers. A finder also may operate a web ber 21, 2000, approved the issuance of final regula- site that allows buyers and sellers to post information tions implementing the CRA Sunshine Requirements concerning products and services and to enter into of the Federal Deposit Insurance Act (FDIA), which transactions among themselves. were recently enacted by the Gramm-Leach-Bliley The rule, approved by the Board on December 13, Act. 2000, is effective thirty days after publication in the The FDIA establishes annual reporting and public Federal Register. disclosure requirements for certain written agreements that are entered into between insured depository institutions or their affiliates and nongovernmen- INTERIM RULE ON DEFINITION OF tal entities or persons (NGEPs) and that are made FINANCIAL ACTIVITIES UNDER pursuant to, or in connection with, the fulfillment of BANK HOLDING COMPANY ACT the Community Reinvestment Act of 1977 (CRA). The final rule, to be published in the Federal Register The Federal Reserve Board on December 21, 2000, by the Board of Governors of the Federal Reserve approved an interim rule defining three categories of System, the Federal Deposit Insurance Corporation, activities listed in section 4(k)(5) of the Bank Holdthe Office of the Comptroller of the Currency, and the ing Company Act as financial in nature or incidental Office of Thrift Supervision, identifies the types of to a financial activity. agreements that are in fulfillment of the CRA and The interim rule also establishes a mechanism implements the requirements of the statute. through which financial holding companies or other The FDIA exempts from coverage all agreements interested parties may request that the Board find, by with NGEPs that have not had a communication order, that particular specific activities fall within one concerning the CRA with the relevant banking orga- of the three categories. nization or a banking agency. The final rule clarifies The categories in section 4(k)(5), added to the when NGEPs have had these types of communica- Bank Holding Company Act by the Gramm-Leachtions and implements this exemption. The final rule Bliley Act, are the following: also implements the exemptions included in the FDIA for certain types of loans and loan commitments. • Lending, exchanging, transferring, investing for Consistent with the statute, the agencies have others, or safeguarding financial assets other than implemented the disclosure and reporting require- money or securities ments of the act in a manner that limits potential • Providing any device or other instrumentality for burden. For example, the final rule establishes simple transferring money or other financial assets disclosure and reporting procedures and allows • Arranging, effecting, or facilitating financial NGEPs to use reports that they have prepared for transactions for the account of third parties. other purposes—such as tax returns and financial statements—if these reports provide the information The Board is soliciting comment on the mecharequired by the FDIA. nism set out in the interim rule for requesting a Board The regulations, which are identical in all substan- finding and on what activities, if any, should be found tive respects, are effective April 1, 2001. by rule to fall within one of the three categories. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 63 The Board plans to issue a joint notice with the INCREASE IN EXEMPTION THRESHOLD FOR Secretary of the Treasury, who is promulgating DEPOSITORY INSTITUTIONS UNDER HMDA a similar interim rule implementing section REPORTING REQUIREMENT 5136A(b)(3) of the Revised Statutes, which parallels section 4(k)(5). The Federal Reserve Board on December 20, 2000, The interim rule will become effective on Janu- announced that the exemption threshold for deposiary 2, 2001, and will be published in the Federal tory institutions that are required to report data under Register. the Home Mortgage Disclosure Act (HMDA) is increased to $31 million. Under the revision to the Board's staff commentary to Regulation C (HMDA), FINAL RULE ON PROCEDURES TO QUALIFY AS depository institutions with assets totaling $31 mil- A FINANCIAL HOLDING COMPANY AND lion or less as of December 31, 2000, are not required PERMISSIBLE ACTIVITIES to collect HMDA data in 2001. An institution's exemption from collecting data in 2001 does not The Federal Reserve Board on December 21, 2000, affect its responsibility to report data it was required approved a final rule setting forth procedures for to collect in 2000. domestic bank holding companies and foreign bank- The Board is required to adjust annually the asseting organizations to qualify as financial holding size exemption threshold for depository institutions companies. based on the annual percentage change in the Con- The rule, effective thirty days after publication in sumer Price Index for Urban Wage Earners and Clerithe Federal Register, also lists financial activities cal Workers. The adjustment reflects changes for the permissible for financial holding companies under twelve-month period ending in November 2000. the Gramm-Leach-Bliley Act. The final rule reflects public comment submitted on the interim rule in effect since March 11, 2000. PROPOSED REVISIONS TO REGULATION C With respect to foreign banks, the final rule does the following: The Federal Reserve Board on December 14, 2000, published proposed revisions to its Regulation C, • Removes the tier 1 leverage ratio from the which implements the Home Mortgage Disclosure numerical screening test in the definition of "well Act (HMDA). The Board voted to request comments capitalized" and adds the leverage ratio to the list of on the proposed revisions at its meeting on Novemfactors the Board may take into account in determin- ber 29, 2000. Comment is requested by March 9, ing whether a foreign bank's capital is comparable to 2001. that required of a U.S. bank owned by a financial holding company • Adopts specific standards with respect to consoli- PROPOSED AMENDMENTS TO REGULATION Z dated home country supervision in order for a foreign REGARDING HOEPA bank to be treated as a financial holding company • Clarifies the definition of "well managed" used The Federal Reserve Board on December 13, 2000, in the assessment required of the overall operations proposed amending the provisions of the Board's of the foreign bank by its home country supervisor Regulation Z (Truth in Lending) that implement • Revises the definition of "well managed" to the Home Ownership and Equity Protection Act require a foreign bank to have a satisfactory compos- (HOEPA) of 1994. ite rating for its U.S. branch and agency operations, The Board seeks public comment on the proposed rather than requiring each office individually to have rule, which will be published in the Federal Register. a satisfactory rating. The amendments would broaden the scope of loans subject to HOEPA's protections by adjusting the price The Board believes that the standards and proce- triggers that determine coverage under the act. The dures for foreign banks represent a flexible approach rate-based trigger would be lowered by 2 percentage that takes into account the statutory requirement for points, and the fee-based trigger would be revised comparability of capital and management standards to include optional insurance premiums and similar while ensuring that foreign banks operating in the credit protection products paid at closing. United States are offered national treatment and Certain acts and practices in connection with equality of competitive opportunity. home-secured loans would be prohibited, including a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

64 Federal Reserve Bulletin • February 2001 rule to restrict creditors from engaging in repeated so long as the investment was related to the provision refinancings of their own HOEPA loans over a short of financial products and services. time period when the transactions are not in the borrower's interest. HOEPA's prohibition against The proposal also requests comment on whether extending credit without regard to a consumer's the Board should permit financial holding companies repayment ability would be strengthened by requiring to invest in companies that do the following: creditors generally to document and verify income for HOEPA-covered loans. HOEPA disclosures • Develop new technologies that might support would include the total amount of money borrowed. the sale and availability of financial products and HOEPA was enacted in response to anecdotal eviservices dence of predatory lending practices in the home • Provide communications links for the delivery of equity lending market. HOEPA imposes additional financial products and services disclosure requirements by creditors at least three • And/or engage in the electronic sale and delivery business days before the loan is closed. It also of products and services that include, but are not imposes substantive limitations, such as restrictions limited to, financial products and services. on short-term balloon notes, on certain home equity loans with rates and fees above a certain percentage Comment is requested by February 16, 2001. or amount. The term "predatory lending" encompasses a variety of practices. Often homeowners in certain communities—particularly, the elderly and PROPOSED REVISIONS TO CALCULATION minorities—are targeted with offers of high-cost, METHODS FOR PRICED SERVICES home-secured credit. The loans carry high up-front fees and may be based on the homeowners' equity in The Federal Reserve Board on December 21, 2000, their homes, not their ability to make the scheduled proposed revisions to the methods used for calculatpayments. When homeowners have problems repay- ing the private-sector adjustment factor (PSAF) and ing the debt, they are often encouraged to refinance net income on clearing balances (NICB). The Board the loan. Frequently this leads to another high-fee requested comment by April 6, 2001. loan that provides little or no economic benefit to the The PSAF imputes the costs that would have been borrower. incurred and profits that would have been earned had HOEPA authorizes the Board to expand HOEPA's the Reserve Banks' priced services been provided by coverage and prohibit certain acts and practices in a private firm. connection with mortgage lending generally. The The NICB imputes income on the investment of Board held hearings this summer in Charlotte, Bos- depository institutions' clearing balances held with ton, Chicago, and San Francisco on possible ways to the Reserve Banks, less related costs. curb predatory lending using its regulatory authority. The Monetary Control Act of 1980 requires that the Federal Reserve set fees for its services to recover, over the long term, its actual costs of provid- PROPOSED AMENDMENT TO REGULATION Y ing the services, as well as these imputed costs and profits. The Board reviews its method for calculating The Federal Reserve Board on December 13, 2000, the PSAF periodically to assess whether it is still requested public comment on a proposal that would appropriate in light of the changing environment. amend Regulation Y (Bank Holding Companies and The Board's proposal would base the PSAF on a Change in Bank Control). The proposal would permit priced-services balance sheet that resembles that of a the following: private business, using real assets and liabilities, imputing liabilities and equity only to the extent neces- • All bank holding companies, as an activity that sary, and more appropriately reflecting the risk inheris closely related to banking, to conduct a greater ent in priced-service activity. amount of nonfinancial data processing in connection Separately, the Board made available a related with processing financial data research paper proposing a new approach for cal- • Financial holding companies, as an activity that culating the cost of equity capital used in the PSAF. is complementary to financial activity, to invest in The paper has been posted on the Internet at: companies engaged in certain types of data storage, www.federalreserve.gov/press/boardacts/2000/ web hosting, and data processing advisory activities, 200012212/researchpaper.pdf. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 65 PROPOSAL TO ALLOW FINANCIAL HOLDING The revised policy supersedes the February 1999 policy and provides for the following: COMPANIES TO OFFER REAL ESTATE SERVICES • Stressing the need for institutions to adopt and adhere The Federal Reserve Board announced on Decemto prudential internal standards on the number and freber 27, 2000, that it is seeking public comment on a quency of extensions, deferrals, rewrites, and renewals of proposal to permit financial holding companies to act closed-end loans they grant as real estate brokers and managers. Comment is due • Limiting re-aging of open-end accounts that particiby March 2, 2001. pate in a debt counseling or workout program, following receipt of at least three consecutive minimum monthly The rule, proposed by the Board on December 13, payments, or an equivalent cumulative amount 2000, would determine that real estate brokerage and • A current assessment of value to be made no later than management services are financial in nature or inci- 180 days past the contractual due date for loans secured by dental to financial activity and are therefore permis- real estate (any loan balance exceeding the property's sible for financial holding companies. value, less selling costs, is to be classified as a loss and charged off) Concurrently with the Board, the Secretary of the • A clarification that collateralized loans due to be Treasury developed a proposal that would allow charged off under the policy can be written down to the financial subsidiaries of national banks to act as real collateral's value, less cost to sell, instead of being entirely estate brokers and managers. charged off The Board and the Secretary will jointly publish • A clarification that payments received after the applicable charge-off threshold, but before the end of the month their proposed rule in the Federal Register. in which the charge-off threshold is triggered, may be considered when determining if a charge-off remains appropriate. PUBLICATION OF THE DECEMBER 2000 UPDATE TO THE BANK HOLDING COMPANY While the terms of the revised policy apply only to SUPERVISION MANUAL federally insured depository institutions, they are broadly applicable to BHCs, particularly their consumer finance nonbank subsidiaries and other credit-extending financial The December 2000 update to the Bank Holding affiliates. Examiners are advised to consider the methodol- Company Supervision Manual, Supplement No. 19, ogy used for aging retail loans. The contractual method of has been published and is now available. The Manual loan aging is emphasized as the more accurate and precomprises the Federal Reserve System's bank hold- ferred methodology for aging retail loans. See Supervision and Regulation (SR) Letter 00-8. (SR Letters are the Feding company (BHC) supervisory and inspection guideral Reserve's primary means of communicating key polance. The supplement includes new or revised supericy directives to its examiners, supervisory staff, and the visory information and examiner guidance on the banking industry. SR Letters can be viewed on the Board's following topics: Internet site: www.federalreserve.gov/boarddocs/srletters.) 4. Financial Holding Companies (FHCs). Information 1. The Statutory Authority, Focus, and Scope of BHC is provided on the focus and scope of the Federal Reserve Inspections. The Gramm-Leach-Bliley (GLB Act), which System's supervisory framework for FHCs. Under the amended section 5(c) of the BHC Act, sets forth the GLB Act, the Federal Reserve has supervisory oversight statutory authority, focus, and scope of BHC inspections. authority and responsibility for BHCs, including BHCs The GLB Act provides specific supervisory guidance per- that operate as FHCs. The GLB Act streamlined the Fedtaining to the breadth of BHC inspections, as well as eral Reserve's supervision of BHCs and provided paraminspections of their subsidiaries. The focus of inspections eters for working with primary depository institution reguwill be on preserving the safety and soundness of the lators and other functional regulators (such as those holding company's affiliated depository institutions. responsible for supervising activities involving insurance, 2. The GLB Act's revisions to Section 23A of the Fed- securities, and commodities). eral Reserve Act (transactions between affiliates). The The GLB Act designates the Federal Reserve as the GLB Act expanded the coverage of section 23A by includ- umbrella supervisor of FHCs. In carrying out its supering transactions between banks and their financial subsidi- visory oversight role, the Federal Reserve will maintain a aries and by providing a definition of financial subsidiary. supervisory focus that is concentrated on a consolidated With respect to transactions between a bank and an indi- or group-wide analysis of the organization. The Federal vidual financial subsidiary of the bank, the GLB Act pro- Reserve will thus identify and evaluate the significant risks vides that the 10 percent limit on covered transactions does in the diversified holding company, assessing how these not apply. The GLB Act also created a rebuttable presump- risks could affect the safety and soundness and viability of tion that a company or shareholder controls another com- its affiliated depository institutions. The Federal Reserve pany if the company or shareholder directly or indirectly will also emphasize analysis of the consolidated financial owns or controls 15 percent or more of the equity capital of condition of FHCs and the risks associated with engaging the other company as a portfolio company. in a broad range of financial activities, since those risks can 3. The Revised June 2000 Uniform Retail-Credit Classi- cut across the organization's legal entities and business fication and Account-Management Policy (revised policy). lines. See SR Letter 00-13. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

66 Federal Reserve Bulletin • February 2001 5. Risk Assessments for Small Shell Bank Holding Com- ments of the bank's anti-money-laundering policies panies (SSBHCs). As announced in SR Letter 00-15, risk and procedures assessments for small SSBHCs are now due within sixty • Because Banca Serfin, S.A. ceased all operations days of receipt of the lead bank's full-scope examination in the United States at the end of 1999, no further report, instead of forty-five days (as stated previously in SR Letter 97-27 and the Board's S-Letter 2587). enforcement action against the bank was necessary • The issuance of a written agreement between A more detailed summary of changes is included Banco Industrial de Venezuela and the Federal with the update package. The Manual and updates, Reserve Bank of Atlanta, requiring continued including pricing information, are available from enhancements of the bank's anti-money-laundering Publications Services, Mail Stop 127, Board of Gov- policies and procedures ernors of the Federal Reserve System, Washington, • The termination of the temporary orders to cease DC 20551 (or charge by facsimile: 202-728-5886). and desist that had been issued against Bancomer, The Manual is also available on the Board's S.A., Banca Serfin, S.A., and Banco Industrial de public web site: www.federalreserve.gov/boarddocs/ Venezuela. supmanual/. In March 2000, the Federal Reserve Board terminated temporary cease and desist orders that had been issued in 1998 against Banco Nacional de Mexico, ENFORCEMENT ACTIONS AND Mexico City, Mexico; Banco Internacional, S.A., TERMINATION OF PREVIOUS ACTIONS Mexico City, Mexico; and Banco Santander, Madrid, Spain. The Federal Reserve Board on December 12, 2000, announced the issuance of several enforcement The issuance of these enforcement actions conactions related to foreign banking organizations that cludes the Federal Reserve's enforcement efforts arishad been involved with Operation Casablanca. ing out of Operation Casablanca. Operation Casablanca was a law enforcement undercover operation that resulted in numerous crimi- The Federal Reserve Board on December 12, 2000, nal money laundering convictions of drug traffickers, announced the issuance of an order of prohibition bankers, and two foreign banking organizations with against Bruce Jeffrey Kingdon, a former partner, operations in the United States—Bancomer, S.A., operating committee member, managing director, Mexico City, Mexico, and Banca Serfin, S.A., Lomas employee, and institution-affiliated party of the Bankde Sante Fe, Mexico. The Federal Reserve provided ers Trust Company, New York, New York. substantial assistance to the U.S. Customs Service Mr. Kingdon, without admitting to any allegations, and the U.S. Department of Justice during the underconsented to the issuance of the order as a result of cover operation and subsequent prosecutions. his alleged violations of law, unsafe or unsound On May 18, 1998, in response to the alleged mis- banking practices, and breaches of his fiduciary duties conduct by employees of several foreign banking to Bankers Trust and its customers. organizations whose activities were identified during Operation Casablanca, the Federal Reserve Board The Federal Reserve Board on December 12, 2000, issued temporary orders to cease and desist. The announced the execution of a written agreement by temporary orders required the banks to enhance their and between People's Bancshares, Inc., New Bedanti-money-laundering policies and procedures in the ford, Massachusetts, and the Federal Reserve Bank of United States. Boston. The Federal Reserve Board's actions included the following: The Federal Reserve Board announced on December 13, 2000, the issuance of a final decision and • The issuance of an order with regard to order of prohibition against Kaye G. Hill, former Bancomer, S.A., determining that it is not necessary employee, Barnett Bank, N.A., Jacksonville, Florida. to terminate the U.S. operations of the bank as a The order, the result of an action brought by the result of the bank's conviction for a money launder- Office of the Comptroller of the Currency, proing offense in the United States hibits Ms. Hill from participating in the conduct of • The issuance of a consent cease and desist order the affairs of any financial institution or holding against Bancomer, S.A., requiring continued enhance- company. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 67 CHANGES IN BOARD STAFF Ms. Bouchard was appointed Assistant Director of the Supervisory and Risk Policy Function after hav- The Board of Governors approved on December 20, ing been the manager of the Policy Development 2000, a restructuring of the Division of Banking Section. She began her career at the Board in Supervision and Regulation. The principal objectives 1992 as a senior financial analyst. She received her of the reorganization are the following: law degree from George Washington University's National Law Center and her B.S. from the University of Virginia. • Focus more effectively on major supervisory risks and to provide additional emphasis on enhanced Ms. Desmond was appointed Assistant Director for accounting, public disclosure, and market discipline the LCBO Secretariat. She joined the Board's staff in as important supplements to safety and soundness 1993 and most recently performed the secretariat supervision function for the LCBO Subcommittee of the System's Strategic Plan Steering Committee. She earned • Develop a more coordinated approach to Systemher B.S. from Boston State College and her J.D. from wide supervisory activities, including large, com- The American University Law School. plex banking organizations (LCBOs) and resource allocation Mr. Embersit was appointed Assistant Director of the Market and Liquidity Risks Function. He began • Support implementation of financial holding his career at the Board in 1991 as a supervisory company umbrella supervision and other aspects of financial analyst and was promoted to manager of the the Gramm-Leach-Bliley Act Capital Markets Program. Mr. Embersit earned his • Address strategic organizational considerations. B.A. from The American University and holds master's degrees from Boston College and George Wash- As part of the reorganization, the Board is pleased ington University. to announce the following official staff promotions Mr. Holm was appointed Assistant Director of the and appointments: Accounting Function. He joined the Board's staff in 1988 as an accountant analyst in the Policy Devel- • The promotion of Herbert A. Biern, Roger T. opment Section and became the manager of the Cole, and William A. Ryback to Senior Associate Accounting Policy and Disclosure Section in 1998. Directors He earned a B.S. from Villanova University, an • The promotion of Gerald A. Edwards to Associ- M.B.A. from the University of Maryland, and is a ate Director and Chief Supervisory Accountant certified public accountant. • The promotion of James V. Houpt, Stephen M. Ms. Richards was appointed Assistant Director of Hoffman, Jack R Jennings, Michael G. Martinson, the Operational Risk and Emerging Activities Funcand Molly S. Wassom to Associate Directors tion after having been manager of Specialized Activ- • The promotion of Sidney M. Sussan to Adviser ities. She joined the Board's staff in 1993 in the • The promotion of Howard A. Amer, Mary Cross Division of Federal Reserve Bank Operations and Jacowski, Norah M. Barger, and Richard A. Small to Payment Systems as an assistant financial services Deputy Associate Directors analyst. She holds an A.B. from Radcliffe College • The appointment of Deborah R Bailey, Bar- and an M.P.A. from the John F. Kennedy School of bara J. Bouchard, Angela Desmond, James A. Ember- Government at Harvard. sit, Charles H. Holm, Heidi W. Richards, William G. Mr. Spaniel was appointed Assistant Director of Spaniel, and David M. Wright to the official staff as the System Planning Evaluation and Staff Develop- Assistant Directors. ment Function. He joined the Board's staff in 1990 as a senior financial analyst and in 1998 was promoted Ms. Bailey was appointed Assistant Director to manager, Supervisory Reviews and Evaluations. responsible for LCBO supervision after having been Mr. Spaniel holds a B.A. from The College of the manager of the Global Organizations Section. William and Mary. She joined the Board's staff in 1997 after seventeen Mr. Wright was appointed Assistant Director of the years with the Office of the Comptroller of the Cur- Credit Risk Function after having been manager of rency as a supervisory financial analyst. She was the Financial Analysis and Special Studies Function awarded a B.B.A. from the University of Georgia and since 1998. He joined the division in 1991. He holds has received her commission as a National Bank a B.A. from Wake Forest University and an M.B.A. Examiner. from The College of William and Mary. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 Minutes of the Meeting of the Federal Open Market Committee Held on November 15, 2000 A meeting of the Federal Open Market Committee Mr. Whitesell, Assistant Director, Division of was held in the offices of the Board of Governors of Monetary Affairs, Board of Governors the Federal Reserve System in Washington, D.C., on Ms. Low, Open Market Secretariat Assistant, Wednesday, November 15, 2000, at 9:00 a.m. Division of Monetary Affairs, Board of Governors Present: Mr. Greenspan, Chairman Mr. Barron and Ms. Pianalto, First Vice Presidents, Mr. McDonough, Vice Chairman Federal Reserve Banks of Atlanta and Cleveland Mr. Broaddus respectively Mr. Ferguson Mr. Gramlich Messrs. Hakkio, Hunter, Ms. Mester, Messrs. Mr. Guynn Rasche, Rolnick, and Rosenblum, Senior Vice Mr. Kelley Presidents, Federal Reserve Banks of Mr. Meyer Kansas City, Chicago, Philadelphia, St. Louis, Mr. Parry Minneapolis, and Dallas respectively Mr. Hoenig, Ms. Minehan, Messrs. Moskow Messrs. Fuhrer, Judd, and Ms. Perelmuter, and Poole, Alternate Members of the Vice Presidents, Federal Reserve Banks of Federal Open Market Committee Boston, San Francisco, and New York respectively Messrs. McTeer, Stern, and Santomero, Presidents of the Federal Reserve Banks of Dallas, Minneapolis, and Philadelphia respectively By unanimous vote, the minutes of the meeting of the Federal Open Market Committee held on Octo- Mr. Kohn, Secretary and Economist ber 3, 2000, were approved. Mr. Bernard, Deputy Secretary The Manager of the System Open Market Account Mr. Gillum, Assistant Secretary reported on recent developments in foreign exchange Ms. Fox, Assistant Secretary Mr. Mattingly, General Counsel markets. There were no open market operations in Ms. Johnson, Economist foreign currencies for the System's account in the Mr. Stockton, Economist period since the previous meeting. The Manager also reported on developments in Ms. Cumming, Messrs. Eisenbeis, Goodfriend, domestic financial markets and on System open mar- Howard, Lindsey, Reinhart, Simpson, and Sniderman, Associate Economists ket transactions in government securities and federal agency obligations during the period October 3, 2000, Mr. Fisher, Manager, System Open Market Account through November 14, 2000. By unanimous vote, the Committee ratified these transactions. Mr. Winn, Assistant to the Board, Office of Board The Committee then turned to a discussion of the Members, Board of Governors economic situation and outlook and the implementation of monetary policy over the intermeeting period Mr. Ettin, Deputy Director, Division of Research and Statistics, Board of Governors ahead. The information reviewed at this meeting sug- Mr. Madigan, Associate Director, Division of gested that economic growth had slowed appreciably Monetary Affairs, Board of Governors from the rapid pace in the first half of the year. The slowdown was most apparent in housing construc- Messrs. Oliner, Slifman, and Struckmeyer, tion and business investment in equipment and Associate Directors, Division of Research and Statistics, Board of Governors software, while consumer spending remained on a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

69 relatively solid upward trend. With expansion of equipment as well as software recorded further robust aggregate demand less robust, industrial production gains. However, expenditures on communications and employment were rising at appreciably slower equipment declined after a half-year of very strong rates, though unemployment remained very low. Core increases, and outlays for other types of equipment inflation appeared to be increasing, but very gradu- also softened; investment in aircraft, autos, trucks, ally and in part reflecting the indirect effects of higher and construction and mining equipment fell, while energy costs. growth of spending on agricultural and industrial Growth in private nonfarm payroll employment equipment slowed. Despite the third-quarter weakslowed in October from the moderate September rate; ness in expenditures, recent data on orders for nonsince midyear, employment growth had been consid- defense capital goods suggested that spending for erably lower than earlier in the year. The falloff in many types of equipment remained on an upward growth was concentrated in the manufacturing, retail trend. Data on construction put in place indicated that trade, and temporary help services industries. By nonresidential building activity picked up considercontrast, the pace of hiring was brisk in real estate ably in the third quarter, with the institutional, indusand construction and slowed only slightly in services trial, and office categories recording solid gains. Marindustries other than temporary help. The civilian ket fundamentals, including rising property values unemployment rate held at its current cyclical low of and low vacancy rates, suggested that further expan- 3.9 percent in October. sion of office building was likely. Other commercial Industrial production edged down in October, after construction, by contrast, remained weak, partly its growth had dropped abruptly in the third quarter to reflecting the already substantial stock of large retail a pace well below that recorded during the first half stores and regional malls. of the year. Manufacturing output was unchanged The pace of inventory investment slowed considin October; a further sharp decline in production of erably in the third quarter. However, for a second motor vehicles followed on the heels of a third- consecutive quarter, the book value of inventories quarter slump, and the manufacture of other durables rose faster than sales, and inventory overhangs were also fell. Expansion of output of high-tech equip- evident in some industries. In manufacturing, stock ment, which had been extraordinarily rapid earlier in accumulation edged up and the aggregate stockthe year, slowed somewhat in October. With produc- shipments ratio in September, though still quite low tion unchanged in October, the rate of capacity utili- by historic norms, was just above the middle of zation in manufacturing fell to a level slightly below its range over the preceding twelve months. In the its long-term average. wholesale sector, inventory accumulation dropped Nominal retail sales edged up in October after in the third quarter; however, sales declined and the rising substantially in the third quarter. Nondurable aggregate inventory-sales ratio for the sector was at goods stores, notably apparel, registered a sizable the top of its narrow range over the past year. Retail increase in October sales, but that gain was more than stockbuilding also slowed in the third quarter, with offset by declines in outlays for durable goods, par- much of the drop reflecting reductions in motor ticularly motor vehicles. Consumer spending for ser- vehicle inventories at auto dealers. The aggregate vices continued to grow at a moderate rate through inventory-sales ratio for this sector edged lower and September (latest data). Recent consumer buying pat- was near the middle of its range over the past year. terns seemed to reflect moderate growth of real dis- The U.S. trade deficit in goods and services narposable income in recent quarters and still generally rowed in August after having widened considerably buoyant consumer sentiment. in July; on balance, the trade deficit increased some- Single-family housing starts declined further in the what from its second-quarter level. The value of third quarter as a whole. Nevertheless, the drop in exports grew in the July-August period at about the interest rates on fixed-rate mortgages since mid-May same strong pace as that recorded for the second might have sparked the slight increase, on balance, in quarter. The value of imports also rose briskly over single-family housing starts in August and September the two months, but at a slightly lower rate than that and the upturn in new home sales in the third quarter. of the second quarter. The available information indi- After a strong first half, multifamily starts dropped in cated that, on average, economic expansion in the the third quarter despite low vacancy rates and rising foreign industrial countries slowed appreciably in the apartment rents. third quarter from the elevated pace during the first Business investment in durable equipment and half of the year and that the slowdown importantly software decelerated sharply in the third quarter. In reflected little or no growth in Japan. In addition, the high-tech area, spending on computers and related economic activity appeared to have decelerated in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 Federal Reserve Bulletin • February 2001 many developing countries in the third quarter but ket interest rates registered small mixed changes over remained solid in most of those nations. the intermeeting interval. At longer maturities, Trea- Incoming data continued to indicate that price sury coupon yields drifted slightly lower, and rates on inflation had picked up somewhat. Consumer prices, high-grade corporate securities changed little. Howas measured by the consumer price index (CPI), ever, growing market concerns about the outlook for rose considerably in September (latest data) after corporate earnings led to substantial increases in having edged down in August; a sizable step-up interest rates on lower-rated investment-grade and in energy prices and a noticeable increase in core high-yield bonds, and the early November survey of inflation contributed about equally to the accelera- senior loan officers indicated that banks had tightened tion. Although the core measure of CPI prices accel- further their standards and terms for business loans. erated noticeably in the twelve months ended in The mixed reports on corporate earnings, incoming September compared with the previous twelve-month information indicating slower growth in economic period, personal consumption expenditure (PCE) activity in the United States, and wide swings in and price inflation had been about steady. By contrast, uncertainty about the price of oil contributed to a core producer prices dropped a little in October and sharp drop in broad indexes of stock market prices decelerated somewhat on a year-over-year basis, over the period in volatile trading. though the deceleration was more than accounted for In foreign exchange markets, the trade-weighted by a surge in tobacco prices during the year ended in value of the dollar increased slightly further on bal- October 1999. With regard to labor costs, the third- ance over the intermeeting interval in terms of the quarter rise in the employment cost index (ECI) for currencies of a broad group of U.S. trading partners. hourly compensation of private industry workers was Among the major foreign currencies, the dollar smaller than the elevated increase of the previous moved up against the euro and the Canadian and quarter. However, ECI compensation advanced con- Australian dollars but edged down a bit in terms of siderably more during the year ended in September the yen. The dollar rose to a record level against the than in the previous year, with larger increases in euro in the weeks following the FOMC meeting, but benefits accounting for much of the rise. Average the release of weaker-than-expected U.S. economic hourly earnings of production or nonsupervisory growth data in late October was seen as possibly workers increased at a slightly higher rate in both marking a shift in the relative growth rates, and the October and the twelve months ended in October. dollar subsequently gave up much of its intermeeting At its meeting on October 3, 2000, the Committee gains in terms of the euro. The dollar also posted adopted a directive that called for maintaining condi- gains against an index of the currencies of other tions in reserve markets consistent with an unchanged important trading partners, largely reflecting condifederal funds rate of about 6V2 percent. In taking that tions in some emerging economies. Concerns about action, the members noted that the growth of aggre- Argentina's recent economic and fiscal performance gate demand had moderated appreciably, the pros- and its external financing situation spilled over to pects for a significant rise in inflation seemed quite other Latin American countries, notably Brazil and limited for the near term, and previous policy tighten- Mexico, and political developments in Indonesia and ing actions and the earlier rise in energy prices the Philippines depressed the currencies of those had not yet exerted their full restraining effects on countries. demand. Nevertheless, in the context of continuing The broad monetary aggregates decelerated in substantial pressures on labor resources and the October. The slower growth of M2 followed strong potential effects of the previous rise in energy prices expansion in August and September, however, and on inflation expectations, members believed it was growth since midyear was at about the same pace as necessary to remain on guard for signs of rising in the first half of the year. M3 also increased at a inflation over the intermediate term. As a result, slower rate in October, partly reflecting weakness in they agreed that the statement accompanying the bank lending and declines in bank holdings of securiannouncement of their decision should continue to ties. The growth of domestic nonfinancial debt picked indicate that the risks remained weighted mainly in up in September in association with an increase in the the direction of rising inflation. pace of private borrowing and a less rapid paydown of federal debt. Open market operations were directed throughout the intermeeting period toward maintaining the fed- The staff forecast prepared for this meeting sugeral funds rate at the Committee's targeted level of gested that the economic expansion, having slowed 6V2 percent, and the average rate remained close to considerably, would be sustained over the forecast the intended level. Short- and intermediate-term mar- horizon at a rate a little below the staff's current Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 71 estimate of the economy's potential output. The fore- might depreciate from its currently elevated level and cast anticipated that the expansion of domestic final add to potential upward pressures on domestic prices demand would be held back to some extent by the over the forecast horizon. waning influence of the positive wealth effects associ- A key factor underlying the economic outlook was ated with past outsized gains in equity prices but also the emergence in recent months of less accommodaby some firming of conditions in credit markets. As a tive financial conditions for many businesses, includresult, growth of spending on consumer durables was ing some further tightening since the meeting in early expected to be appreciably below that in recent quar- October, and decreases in the wealth of households. ters and housing demand to trend slightly downward. The slowdown in the pace of the expansion and By contrast, business fixed investment—notably, out- disappointing business earnings had fostered more lays for equipment and software—was projected to cautious attitudes on the part of lending institutions remain relatively robust, and brisk growth abroad and investors. Anecdotal comments from around the would undergird the expansion of U.S. exports. Core country supported the indications from surveys of price inflation was projected to rise a little over the tightening terms and standards at banks for business forecast horizon, in part as a result of higher import borrowers. At the same time, spreads in securities prices but largely as a consequence of further markets had widened, most sharply on obligations of increases in nominal labor compensation gains that borrowers rated below investment grade, and as a would not be fully offset by growth in productivity. result those borrowers faced higher credit costs. In the Committee's discussion of current and pro- Lender caution and less receptive markets probably spective economic conditions, members commented had contributed to considerable weakening recently that the information that had become available since in overall growth of credit to nonfinancial businesses. the previous meeting had reinforced earlier indica- Rising interest and energy costs in conjunction with tions of appreciable slowing in the expansion of restraint on the prices of final output had depressed economic activity. The cumulating evidence of mod- the earnings and stock market valuations of many erating expansion seemed especially clear in the in- firms, notably in the high-tech area, with adverse formation on employment growth and manufacturing repercussions on their ability to borrow and willingoutput. Aggregate demand currently appeared to be ness to invest and on the financial position of the growing at a pace a little below the rate of increase in households holding their equity shares. the economy's output potential, a configuration that Less hospitable conditions in financial markets for could well persist in coming quarters. Actual and a number of borrowers and deteriorating profit marexpected shortfalls in business profitability had led to gins had contributed to a substantial moderation in tighter credit conditions for many borrowers and the growth of business fixed investment in recent lower equity prices, which would continue to restrain months, and anecdotal reports of reductions in capispending; moreover, further pressure on profit mar- tal spending plans were consistent with continued gins, with adverse effects on financial markets, busi- more moderate expansion in such outlays. The recent ness investment, and consumer spending, was a dis- deceleration was especially pronounced in expenditinct possibility. Members observed, however, that tures for high-tech equipment and software, though economic growth had rebounded sharply from tempo- such spending was still growing at a robust pace. It rary slowdowns previously in the current expansion, was suggested that the weakening expansion of and several noted the possibility that a less restrictive expenditures in these capital goods might reflect a fiscal policy stance would be bolstering demand in surfeit in capacity following a period of extraordinary the years ahead. growth in many industries—for example, those Although the softening in aggregate demand related to fiber optics. The available evidence did not moved in the direction of containing potential infla- indicate any material decrease in the optimism of tion pressures, the members continued to be con- equity market analysts as a group regarding the outcerned about the possibility that inflation would edge look for earnings over the long term. This suggested higher. Even with demand growth slower, labor mar- that their contacts among business executives kets were likely to remain unusually tight for some remained fundamentally upbeat about the long-term time, and in such circumstances labor costs could prospects for productivity and earnings. In these begin to rise increasingly in excess of even elevated circumstances, appreciable further growth in investgains in productivity. Some members also com- ment spending seemed to be in prospect for commented that energy prices might not trend lower as ing quarters, though undoubtedly at a slower pace soon as, or to the extent, now expected by market than had been experienced on average in recent analysts, and a few raised the prospect that the dollar quarters. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • February 2001 Even limited slowing in the expansion of invest- sation appeared to be accelerating, partly as a result ment expenditures could be expected to have retard- of sharply rising health benefit costs. To be sure, unit ing effects on the growth of consumer income and labor costs in the nonfinancial corporate sector had spending. While such spending had held up well in changed little over the past year, undoubtedly reflectthe third quarter, the limited information available on ing impressive further gains in productivity. Even more recent developments suggested some softening, so, higher interest rates and increased energy and though the data were not conclusive. Factors cited in other input costs were adding to overall production support of a somewhat weaker trajectory in consumer expenses. To date, competitive pressures were conspending included the impact of elevated energy tinuing to inhibit the ability of many firms to pass costs, the high debt burdens of many households, and on those costs, although a significant exception was the ebbing of the wealth effects from strong earlier a number of successful efforts to impose energy gains in stock market prices. Even so, anticipated surcharges. increases in employment and income and still rela- Looking to the future, however, the members gentively high levels of consumer confidence were likely erally agreed that the risks were in the direction of a to support appreciable further growth in consumer heightening in inflation pressures despite their belief spending, albeit probably at a rate somewhat below that growth in overall demand now seemed to have the brisk pace of the past few years. declined to a more sustainable pace and probably Key indicators of housing activity had fluctuated would continue to expand for a time at a rate below considerably this year, but the evidence of recent that of the economy's output potential. The members months pointed on balance to a mild softening in believed that growth in labor compensation was such activity, a perception that was supported by likely to remain under upward pressure from the anecdotal reports from several areas around the coun- anticipated persistence of very tight conditions in try. In general, housing demand was expected to edge labor markets that would enable wages to catch up to lower in response to the same income and wealth earlier gains in labor productivity. Whether offsetting effects that were influencing consumer durables increases in the growth of labor productivity would expenditures and to the increase in mortgage interest materialize was open to question, in part because rates that had occurred on net over the past year. productivity growth might tend to level out in the Current forecasts of appreciable growth in foreign context of less ebullient expansion in business investeconomic activity had favorable implications for U.S. ment. Another key factor in the outlook for inflation exports and the nation's trade balance, but some was the course of oil and other energy prices. Thus members expressed concern about financial and eco- far, increases in energy costs had been reflected only nomic weakness in a number of foreign economies. marginally in core consumer prices, and while there Failure to remedy structural and other problems in were widespread market expectations of declining oil some countries incurred the risk of economic and prices in coming quarters, a great deal of uncertainty, financial distress, with possible spillover effects on including the potential for more difficulties in the other economies and financial markets. While those Middle East, surrounded the timing and extent of risks seemed small, they might be difficult to contain. such an outcome. The longer relatively high energy The exchange value of the dollar was another source prices persisted, of course, the greater might be their of uncertainty for the outlook. In the view of some imprint on both inflation expectations and core prices. members, the dollar could well come under down- In sum, the moderation in economic expansion, the ward pressure as the nation's current account deficits persistence of highly competitive conditions in most continued to cumulate. A lower dollar would tend to domestic markets, the outlook for continued robust have a favorable effect on the trade deficit but also gains in productivity, and relatively subdued inflation would add to inflationary pressures in the domestic expectations were favorable factors in the inflation economy. outlook, but the members continued to view the prospects as weighted on balance in the direction of a Members continued to be concerned about the gradual uptrend in core inflation. outlook for inflation. Measured increases in "headline" consumer prices could be explained mostly as In the Committee's discussion of policy for the a result of sharp advances in energy prices, which intermeeting period ahead, all the members supported many observers expected to be reversed at some a proposal to maintain an unchanged policy stance point. However, core consumer price measures also consistent with the federal funds rate continuing to displayed a gradual uptrend, perhaps only in part as a average about 6V2 percent. Despite clear indications consequence of the pass-through effects of persis- of a more moderate expansion in economic activity, tently high energy prices. Measures of labor compen- persisting risks of heightened inflation pressures Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Minutes of the Federal Open Market Committee 73 remained a policy concern, particularly in the context pressures. The members concluded that retaining a of an evident, if gradual, uptrend in key measures of risk statement weighted toward more inflation prescore inflation. Indeed, a few members commented sures would best represent their current thinking, but that measures of core inflation already were near or they believed it was desirable to provide some recogslightly above levels that they viewed as acceptable nition of the emergence of increased downside risks for the longer run. Although overall financial con- to the economic expansion in the statement to be ditions had tightened during the course of recent released after this meeting. months and currently appeared to be holding down At the conclusion of this discussion, the Committhe growth in spending, this added restraint was tee voted to authorize and direct the Federal Reserve likely to be necessary to contain inflation pressures. Bank of New York, until it was instructed other- In these circumstances, all the members saw the wise, to execute transactions in the System Account maintenance of a steady policy as the best course at in accordance with the following domestic policy this juncture to promote the Committee's longer-run directive: objectives of price stability and sustainable economic expansion. The Federal Open Market Committee seeks monetary Still, growth had slowed more quickly than many and financial conditions that will foster price stability and promote sustainable growth in output. To further its longmembers had anticipated, and financial market and run objectives, the Committee in the immediate future other developments now seemed more likely to keep seeks conditions in reserve markets consistent with mainpressures on resources from mounting over coming taining the federal funds rate at an average of around quarters. Under the circumstances, the members 61/2 percent. focused at this meeting on the potential desirability of moving from a statement of risks weighted toward The vote also encompassed approval of the senrising inflation to one that indicated a balanced view tence below for inclusion in the press statement to be of the risks to the Committee's goals of price stability released shortly after the meeting: and sustainable economic growth. The members agreed that a stronger case could be made for a shift Against the background of its long-run goals of price to a balanced risk statement than at the previous stability and sustainable economic growth and of the informeeting. A few indicated that the decision was a mation currently available, the Committee believes that the risks are weighted mainly toward conditions that may close call for them, and several commented that generate heightened inflation pressures in the foreseeable developments might be moving in a direction that future. would make a shift advisable in the relatively near future. Even so, they were unanimous in concluding Votes for this action: Messrs. Greenspan, McDonough, that such a change would be premature at this time. Broaddus, Ferguson, Gramlich, Guynn, Kelley, Meyer, Concerns about the possibility of rising inflation per- Moskow, and Parry. Votes against this action: None. Mr. Moskow voted as alternate member for Mr. Jordan. sisted. And while the members could see an increased risk of a marked slowing of growth relative to the rapid rate of expansion of the economy's potential, It was agreed that the next meeting of the Committhe degree to which growth in demand might remain tee would be held on Tuesday, December 19, 2000. sufficiently damped to contain and offset those infla- The meeting adjourned at 1:00 p.m. tion pressures was quite uncertain. Moreover, a shift in the Committee's published views might induce an Donald L. Kohn undesirable softening in overall financial market con- Secretary ditions, which in itself would tend to add to inflation Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

75 Legal Developments FINAL RULE—AMENDMENT TO REGULATION C FINAL RULE—AMENDMENT TO REGULATION Y The Board of Governors is amending 12 C.F.R. Part 203, The Board of Governors is amending 12 C.F.R. Part 225, its Regulation C (Home Mortgage Disclosure). The Board its Regulation Y (Bank Holding Companies and Change in is required to adjust annually the asset-size exemption Bank Control), by adding acting as a finder to the list of threshold for depository institutions based on the annual activities that a financial holding company may conduct percentage change in the Consumer Price Index for Urban using the streamlined post-transaction notice procedure Wage Earners and Clerical Workers. The present adjust- authorized by the Gramm-Leach-Bliley Act. ment reflects changes for the 12-month period ending in The final rule allows a financial holding company to November 2000. During this period, the index increased bring together buyers and sellers of products and services by 3.4 percent; as a result, the threshold is increased to for transactions that the buyers and sellers themselves $31 million. Thus, depository institutions with assets of negotiate and consummate. The rule provides examples of $31 million or less as of December 31, 2000, are exempt specific services that a financial holding company may and from data collection in 2001. may not perform when acting as a finder under the rule. Effective January 1, 2001, 12 C.F.R. Part 203 is amended The rule also requires a financial holding company that as follows: acts as a finder to provide appropriate disclosures to distinguish products and services that are offered by the financial holding company from those that are offered by a third Part 203—Home Mortgage Disclosure (Regulaparty using the financial holding company's finder service. tion C) Effective January 22, 2001, 12 C.F.R. Part 225 is amended as follows: 1. The authority citation for Part 203 continues to read as follows: Part 225—Bank Holding Companies and Change in Bank Control (Regulation Y) Authority: 12 U.S.C. 2801-2810. 1. The authority citation for Part 225 continues to read as follows: 2. In Supplement I to Part 203, under Section 203.3— Exempt Institutions, under 3(a) Exemption based on Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, location, asset size, or number of home-purchase loans, 183 lp-1, 1843(c)(8), 1843(k), 1844(b), 1972(/), paragraph 2 is revised to read as follows: 3106, 3108, 3310, 3331-3351, 3907, and 3909. 2. Section 225.86 is amended by adding a new paragraph Supplement I to Part 203—Staff Commentary (d) to read as follows: sfc jfc 5j< ^ Section 225.86—What activities are permissible for financial holding companies? Section 203.3—Exempt Institutions (d) Activities determined to be financial in nature or inci- 3(a) Exemption based on location, asset size, or number of dental to financial activities by the Board— home-purchase loans. (1) Acting as a finder— Acting as a finder in bringing together one or more buyers and sellers of any product or service 2. Adjustment of exemption threshold for depository insti- for transactions that the parties themselves negotitutions. For data collection in 2001, the asset-size ex- ate and consummate. emption threshold is $31 million. Depository institu- (i) What is the scope of finder activities ? Acting tions with assets at or below $31 million are exempt as a finder includes providing any or all of the from collecting data for 2001. following services through any means— Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Federal Reserve Bulletin • February 2001 (A) Identifying potential parties, making inquiries the terms are not negotiated as part of as to interest, introducing and referring potential any individual transaction, are proparties to each other, and arranging contacts vided generally to customers or broad between and meetings of interested parties; categories of customers, and are made (B) Conveying between interested parties expres- available by the seller (and not by the sions of interest, bids, offers, orders and con- financial holding company); and firmations relating to a transaction; and (2) Establish rules of general applicabil- (C) Transmitting information concerning prod- ity governing the use and operation of ucts and services to potential parties in con- the finder service, including rules nection with the activities described in para- that— graphs (d)(l)(i)(A) and (B) of this section. (0 Govern the submission of bids (ii) What are some examples of finder services? The and offers by buyers and sellers following are examples of the services that may that use the finder service and the be provided by a finder when done in accordance circumstances under which the with paragraphs (d)(l)(iii) and (iv) of this section. finder service will match bids and These examples are not exclusive. offers submitted by buyers and (A) Hosting an electronic marketplace on the fi- sellers; and nancial holding company's Internet web site (ii) Govern the manner in which by providing hypertext or similar links to the buyers and sellers may bind web sites of third party buyers or sellers. themselves to the terms of a spe- (B) Hosting on the financial holding company's cific transaction. servers the Internet web site of— (C) A finder may not— (7) A buyer (or seller) that provides informa- (1) Take title to or acquire or hold an ownertion concerning the buyer (or seller) and ship interest in any product or service the products or services it seeks to buy (or offered or sold through the finder service; sell) and allows sellers (or buyers) to sub- (2) Provide distribution services for physical mit expressions of interest, bids, offers, products or services offered or sold orders and confirmations relating to such through the finder service; products or services; or (3) Own or operate any real or personal prop- (2) A government or government agency that erty that is used for the purpose of manuprovides information concerning the ser- facturing, storing, transporting, or assemvices or benefits made available by the bling physical products offered or sold by government or government agency, as- third parties; or sists persons in completing applications to (4) Own or operate any real or personal propreceive such services or benefits from the erty that serves as a physical location for government or agency, and allows per- the physical purchase, sale or distribution sons to transmit their applications for ser- of products or services offered or sold by vices or benefits to the government or third parties. agency. (D) A finder may not engage in any activity that (C) Operating an Internet web site that allows would require the company to register or obmultiple buyers and sellers to exchange infor- tain a license as a real estate agent or broker mation concerning the products and services under applicable law. that they are willing to purchase or sell, locate (iv) What disclosures are required? A finder must potential counterparties for transactions, ag- distinguish the products and services offered by gregate orders for goods or services with the financial holding company from those offered those made by other parties, and enter into by a third party through the finder service. transactions between themselves. (2) [Reserved] (D) Operating a telephone call center that provides permissible finder services. (iii) What limitations are applicable to a financial holding company acting as a finder? (A) A finder may act only as an intermediary ORDERS ISSUED UNDER BANK HOLDING COMPANY between a buyer and a seller. ACT (B) A finder may not bind any buyer or seller to the terms of a specific transaction or negotiate Orders Issued Under Sections 3 and 4 of the Bank the terms of a specific transaction on behalf of Holding Company Act a buyer or seller, except that a finder may— (1) Arrange for buyers to receive pre- The Chase Manhattan Corporation ferred terms from sellers so long as New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 77 J. P. Morgan & Co. Incorporated total assets of insured commercial banks in the United New York, New York States ("total banking assets").3 Chase is the largest banking organization in New York, controlling deposits of Order Approving the Merger of Bank Holding $98 billion, representing approximately 23.2 percent of Companies, Merger of Banks, and Establishment of total deposits in depository institutions in the state ("state Branches deposits").4 Chase also operates banks in California, Connecticut, Delaware, Florida, New Jersey, and Texas. The Chase Manhattan Corporation ("Chase"), a bank hold- Morgan, with total consolidated assets of $266.3 billion, ing company within the meaning of the Bank Holding is the fifth largest commercial banking organization in the Company Act ("BHC Act"), has requested the Board's United States, controlling approximately 4 percent of total approval under section 3 of the BHC Act (12 U.S.C. banking assets. It is the 15th largest banking organization § 1842) to merge with J.P. Morgan & Co. Incorporated in New York, controlling deposits of $7.9 billion, repre- ("Morgan") and thereby acquire Morgan's subsidiary senting approximately 1.9 percent of state deposits. Morbank, Morgan Guaranty Trust Company of New York gan also operates insured depository institutions in Dela- ("Morgan Guaranty"), New York, New York.1 Chase's ware and Florida. lead bank, The Chase Manhattan Bank, also in New York After consummation of the proposal, Chase would re- ("Chase Bank"), a state member bank, has applied under main the third largest commercial banking organization section 18(c) of the Federal Deposit Insurance Act in the United States, with total consolidated assets of (12 U.S.C. § 1828(c)) (the "Bank Merger Act") to merge $662.3 billion, representing approximately 10 percent of with Morgan Guaranty, with Chase Bank as the surviving total banking assets. Chase would continue to operate institution. Chase Bank also has applied under section 9 of insured depository institutions in the states where it curthe Federal Reserve Act (12 U.S.C. § 321) to establish rently operates. branches at the locations of the main office and branches of Morgan Guaranty.2 Interstate Analysis In addition, Chase has requested the Board's approval under sections 4(c)(8) and 4(j) of the BHC Act (12 U.S.C. Section 3(d) of the BHC Act allows the Board to approve §§ 1843(c)(8) and 1843(j)) and section 225.24 of the an application by a bank holding company to acquire Board's Regulation Y (12 C.F.R. 225.24) to acquire Mor- control of a bank located in a state other than the home gan's subsidiary savings association, J.P. Morgan FSB, state of the bank holding company if certain conditions are Palm Beach, Florida ("Morgan FSB"). met. For purposes of the BHC Act, the home state of Chase Chase also has filed notices under section 4(c)(13) of the is New York.5 As part of the proposal, Chase proposes to BHC Act (12 U.S.C. § 1843(c)(13)), sections 25 and 25A acquire a bank in Delaware.6 All the conditions for an of the Federal Reserve Act (12 U.S.C. §§ 601 et seq. and interstate acquisition enumerated in section 3(d) are met in 611 et seq.), and the Board's Regulation K (12 C.F.R. 211) this case.7 In light of all the facts of record, the Board is to acquire the Edge Act subsidiary and foreign operations permitted to approve the proposal under section 3(d) of the of Morgan Guaranty. BHC Act. Notice of the proposal, affording interested persons an opportunity to submit comments, has been published Competitive Factors (64 Federal Register 36,875 (2000)). As required by the Bank Merger Act, reports on the competitive effects of the The Bank Merger Act and section 3 of the BHC Act merger were requested from the United States Attorney prohibit the Board from approving a proposal that would General, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. The time for 3. Asset data are as of June 30, 2000. All other banking data are as filing comments has expired, and the Board has considered of June 30, 1999, unless otherwise noted, and have been adjusted to the proposal and all comments received in light of the account for mergers consummated since that date. factors set forth in sections 3 and 4 of the BHC Act, the 4. Unless otherwise noted, depository institutions include commer- Bank Merger Act and the Federal Reserve Act. cial banks, savings banks, and savings associations. 5. A bank holding company's home state is the state in which the Chase, with total consolidated assets of $396 billion, is total deposits of all banking subsidiaries of the company were the the third largest commercial banking organization in the largest on July 1, 1966, or the date on which the company became a United States, controlling approximately 6 percent of the bank holding company, whichever is later. 12 U.S.C. § 1841(o)(4)(C). 6. For purposes of section 3(d) of the BHC Act, the Board considers a bank to be located in the states in which the bank is chartered, headquartered, or operates a branch. 1. On consummation of the proposal, Chase would change its name 7. 12 U.S.C. §§ 1842(d)(1)(A) and (B) and 1842(d)(2)(A) and (B). to J.R Morgan Chase & Co. Chase and Morgan also have each Chase meets the capital and managerial requirements established requested the Board's approval to hold and exercise an option to under applicable law. On consummation, Chase would control less acquire up to 19.9 percent of the other's voting shares. These options than 10 percent of the total amount of deposits of insured depository would expire on consummation of the proposal. institutions in the United States and less than 30 percent of state 2. The branches would be established at: 60 Wall Street, New York, deposits in Delaware. See 5 Del. Code Ann. tit. 5 § 795G (2000). All New York; 522 Fifth Avenue, New York, New York; 500 Stanton other requirements under section 3(d) of the BHC Act also would be Avenue, Newark, Delaware. met on consummation of the proposal. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • February 2001 result in a monopoly or be in furtherance of a monopoly. Chase and Morgan compete directly in the Metropolitan These acts also prohibit the Board from approving a pro- New York/New Jersey banking market ("New York bankposal that would substantially lessen competition in any ing market"); the West Palm Beach, Florida, banking relevant banking market unless the anticompetitive effects market ("West Palm Beach banking market"); and the of the proposal in that banking market are clearly out- Wilmington, Delaware, banking market ("Wilmington weighed in the public interest by the probable effect of the banking market").13 The Board has reviewed carefully the proposal in meeting the convenience and needs of the competitive effects of the proposal in each of the banking community to be served.8 markets in light of all the facts of record, including the In reviewing the competitive effects of the proposal, the number of competitors that would remain in the markets, Board has reviewed carefully comments submitted by In- the relative shares of total deposits in depository instituner City Press/Community on the Move, Bronx, New York tions in the markets ("market deposits") controlled by ("ICP"). ICP contends that the merger would reduce com- Chase and Morgan,14 the concentration level of market petition for banking services in several product markets deposits and the increase in this level as measured by the and result in higher fees and reduced customer conve- Herfindahl-Hirschman Index ("HHI") under the Departnience. ICP also challenges the Board's use of the cluster of banking services to review the competitive effects of the proposal. To review the effect of a particular transaction on competition, it is necessary to designate the area of effective competition between the parties, which the courts have held is decided by reference to the relevant "line of commerce" or a product market and a geographic market. The Leach-Bliley Act, financial holding companies and financial subsidiar- Board and the courts have recognized consistently that the ies of banks may, under certain circumstances, engage in a broader appropriate product market for analyzing the competitive range of nonbanking activities than permitted previously. The passage effects of bank mergers and acquisitions is the cluster of of the act, however, does not suggest that the cluster of banking products and services no longer is the appropriate line of commerce products (various kinds of credit) and services (such as for analyzing the competitive effect of bank affiliations. ICP also checking accounts and trust administration) offered by argues that the elimination of Morgan Guaranty as a counter-party or banking institutions.9 According to the Supreme Court, the participant in the markets for specific products and services listed cluster of banking products and services facilitates conve- above would impair significantly the operations of these markets. Even if the approach advocated by ICP were adopted, the Board notes nient access to these products and services, and this convethat these activities are conducted on a national or global scale, with nience vests the cluster with economic significance beyond numerous other large institutions and sophisticated participants. the individual products and services that constitute the 13. In addition to considering the product markets affected by a cluster.10 Several studies support the conclusion that both banking merger, the Board also analyzes the effects in a geographic businesses and households continue to seek this cluster of market. See e.g., Sunwest Financial Services, Inc., 73 Federal Reserve products and services.11 Consistent with these precedents Bulletin 463 (1987); Pikeville National Corporation, 71 Federal Reserve Bulletin 240 (1985); Wyoming Bancorporation, 68 Federal and studies, and on the basis of all the facts of record in Reserve Bulletin 313 (1982), aff'd 729 F.2d 687 (10th Cir. 1984). this case, the Board concludes that the cluster of banking The New York banking market is defined as New York City; products and services represents the appropriate product Nassau, Orange, Putnam, Rockland, Suffolk, Sullivan, and Westchester Counties in New York; Bergen, Essex, Hudson, Hunterdon, Midmarket for analyzing the competitive effects of the proposdlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union, al.12 Warren, and a portion of Mercer Counties in New Jersey; Pike County in Pennsylvania; and portions of Fairfield and Litchfield Counties in Connecticut. 8. See 12 U.S.C. §§ 1828(c)(5) and 1842(c). The West Palm Beach banking market is defined as all of Palm 9. See Chemical Banking Corporation 82 Federal Reserve Bulletin Beach County east of Loxahatchee and the towns of Indiantown and 239 (1996) and the cases and studies cited therein. The Supreme Court Hobe Sound in Martin County, all in Florida. has emphasized that it is the cluster of products and services that, as a The Wilmington banking market is defined as New Castle County, matter of trade reality, makes banking a distinct line of commerce. See Delaware, and Cecil County, Maryland. United States v. Philadelphia National Bank, 374 U.S. 321, 357 14. Except as noted, market share data are as of June 30, 1999, and (1963); accord, United States v. Connecticut National Bank, 418 U.S. are based on calculations that include the deposits of thrift institutions, 656 (1974); United States v. Phillipsburg National Bank, 399 U.S. 350 which include savings banks and savings associations, weighted at (1969) ("Phillipsburg National"). 50 percent. The Board has indicated previously that thrift institutions 10. See Phillipsburg National 399 U.S. at 361. have become, or have the potential to become, significant competitors 11. Elliehausen and Wolken, Banking Markets and the Use of of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Financial Services by Households, 78 Federal Reserve Bulletin 169 Reserve Bulletin 386 (1989); National City Corporation, 70 Federal (1992); Elliehausen and Wolken, Banking Markets and the Use of Reserve Bulletin 743 (1984). Thus, the Board regularly has included Financial Services by Small- and Medium-Sized Businesses, 76 Fed- thrift deposits in the calculation of market share on a 50-percent eral Reserve Bulletin 726 (1990). weighted basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve 12. ICP asserts that after the enactment of the Gramm-Leach-Bliley Bulletin 52 (1991). Because the deposits of Morgan FSB are con- Act (Pub. L. No. 106-102, 113 Stat. 1338 (1999)), the cluster ap- trolled by and would continue to be controlled by a bank holding proach no longer is appropriate, and that certain products and services company, these deposits are included at 100 percent in the calculation provided by Morgan Guaranty, including syndicated lending, precious of Chase's market share in the West Palm Beach banking market. See metal trading, debt underwriting, and foreign currency exchange, Norwest Corporation, 78 Federal Reserve Bulletin 452 (1992); First should be analyzed as separate product markets. Under the Gramm- Banks, Inc., 76 Federal Reserve Bulletin 669, 670 n.9 (1990). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 79 ment of Justice Merger Guidelines ("DOJ Guidelines"),15 $8 billion, representing approximately 16.9 percent of and other characteristics and measures of the markets. market deposits. The HHI would increase 104 points to Chase operates the largest depository institution in the 2259, and numerous other competitors would remain in the New York banking market, controlling deposits of market. $98 billion, representing approximately 22.7 percent of In addition, the Wilmington banking market is attractive market deposits. Morgan controls the 12th largest deposi- for entry by out-of-market competitors. From 1997 to tory institution in the market, with deposits of $8 billion, 2000, market deposits increased by 47.7 percent, compared representing approximately 1.9 percent of market deposits. with the national rate of increase of 34.1 percent. Per capita On consummation of the proposal, Chase would continue income in the market is $18,156, compared with the nato operate the largest depository institution in the market, tional per capita income of $15,555. From June 1998 to controlling deposits of $106 billion, representing approxi- June 2000, five banking organizations entered the market mately 24.6 percent of market deposits. The New York de novo and two banking organizations entered the market banking market would remain unconcentrated as measured by acquisition. by the HHI, which would increase 84 points to 886, with The Department of Justice also has considered the comnumerous other competitors. petitive effects of the proposal and has determined that it Chase operates the 40th largest depository institution in would not have a significantly adverse effect on competithe West Palm Beach banking market, controlling deposits tion in any relevant banking market. The Federal Deposit of $20.3 million, representing less than 1 percent of market Insurance Corporation ("FDIC") and the Office of the deposits. Morgan controls the 29th largest depository insti- Comptroller of the Currency ("OCC") have been afforded tution in the market, with deposits of $55.5 million, also an opportunity to comment on the competitive aspects of representing less than 1 percent of market deposits. On the proposal and have not objected to consummation of the consummation of the proposal, Chase would become the proposal. 25th largest depository institution in the West Palm Beach Based on all the facts of record, and for the reasons banking market, controlling deposits of $75.8 million, rep- discussed in the order, the Board concludes that consumresenting less than 1 percent of market deposits. The HHI mation of the proposal would not be likely to result in a would remain at 1137 points, and the market would con- significantly adverse effect on competition or on the continue to be moderately concentrated, with numerous other centration of banking resources in any of the banking competitors remaining. markets in which Chase and Morgan compete directly or in Chase operates the second largest depository institution any other relevant banking market. Accordingly, the Board in the Wilmington banking market, controlling deposits of has determined that the competitive effects in this case are $6.1 billion, representing approximately 12.9 percent of consistent with approval of the proposal. market deposits.16 Morgan controls the sixth largest depository institution in the market, with deposits of $1.9 billion, Financial, Managerial, and Other Supervisory Factors representing approximately 4 percent of market deposits. On consummation of the proposal, Chase would continue The Bank Merger Act and section 3 of the BHC Act also to operate the second largest depository institution in the require that the Board consider the financial and manage- Wilmington banking market, controlling deposits of rial resources and future prospects of the organizations involved in a proposal as well as certain other supervisory factors. The Board has carefully considered the financial and managerial resources and future prospects of Chase, 15. Under the DOJ Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market is considered unconcentrated if the post- Morgan, and their respective subsidiary banks and other merger HHI is below 1000, moderately concentrated if the post- supervisory factors in light of all the facts of record, merger HHI is between 1000 and 1800, and highly concentrated if the including comments received on the proposal, reports of post-merger HHI is above 1800. The Department of Justice has examination and other confidential supervisory informainformed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticom- tion assessing the financial and managerial resources of the petitive effects) unless the post-merger HHI is at least 1800 and the organizations, and financial information provided by merger increases the HHI by more than 200 points. The Department Chase. of Justice has stated that the higher than normal HHI thresholds for In evaluating financial factors in expansion proposals by screening bank mergers for anticompetitive effects implicitly recogbanking organizations, the Board consistently has considnize the competitive effects of limited-purpose lenders and other nondepository financial institutions. ered capital adequacy to be especially important. The 16. Deposit data for the Wilmington banking market are as of June Board notes that Chase and Morgan and their subsidiary 30, 2000, and include preliminary summary of deposit data. ICP has depository institutions are well capitalized, as defined in asserted that Chase and Morgan manipulated their deposit data for the relevant regulations of the federal banking agencies, June 30, 2000, to conceal their competitive presence in the Wilmingand would remain well capitalized on consummation of the ton banking market. In reviewing competitive effects and the changes in deposit data in this market over the past year, the Board has proposal.17 The proposal is structured as a stock-for-stock considered the structure of market operations, types of specific institutions, and the specific business practices of Chase and Morgan and changes in the market data for other competitors in the market. Based on these considerations, the Board has concluded that the 2000 data 17. ICP expresses concern about press reports of earnings volatility most accurately reflect the effects of the transaction on this market. at a Chase subsidiary that makes venture capital investments, Chase Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • February 2001 transaction and would not increase the debt service require- ICP expresses concern about certain activities of Chase ments of the combined organization. The proposal also during World War II. ICP cites press reports contending would result in a more diversified client base and more that Chase allegedly collaborated with the German governdiversified revenue sources for the combined organization. ment to confiscate and liquidate Jewish assets and to funnel In addition, Chase expects to increase net income as a French assets to Germany. ICP has urged the Board to result of significant cost reductions as well as projected investigate these alleged activities and produce a full acincreases in revenue.18 counting of any assets Chase has retained wrongfully.20 The Board also has taken account of the managerial Chase has provided information about its eiforts to adresources of Chase and Morgan and the federal financial dress the alleged actions of its predecessors. Chase represupervisory agencies' examination records in supervising sents that Chase Bank has conducted a three-year investigathese organizations. All the subsidiary depository institu- tion into the World War II activities of its predecessor tions of Chase and Morgan are well managed. Chase bank. Through this investigation, Chase has determined previously has integrated acquired organizations in a satis- that during World War II, the German government approfactory manner and has remained well managed. Although priated certain accounts in the Paris branch of a Chase Chase and Morgan continue to assess the appropriate risk predecessor bank, and that the holders of some of those management systems and procedures that would support accounts have applied for restitution. Chase and the World certain individual lines of business, Chase expects to have Jewish Congress have retained jointly an independent an integrated risk management function, including credit counsel to review Chase's self-assessment. risk management, in place and operating at the time of The Board has carefully reviewed the issues presented consummation of the proposal.19 by ICP in light of all the facts of record and taken into consideration the Board's authority under federal banking laws. The Board has taken into account, in particular, the Capital Partners, New York, New York ("Chase Capital"). The Board eiforts of Chase to investigate and address these matters has considered Chase Capital's activities and earnings record in and the ongoing eiforts of current management to elfect a evaluating Chase's financial resources. resolution. The Board also has taken into account that 18. ICP also contends that the combined organization would be able many of the matters raised by ICP involve subjects of to exert an inappropriate level of influence on global financial markets public interest that are not within the Board's limited and foreign nations thereby resulting in an institution too large for the Board and other government agencies to regulate. The Board and the jurisdiction to adjudicate or do not relate to the factors that other financial supervisory agencies have extensive experience super- the Board is required to consider when reviewing an applivising Chase and Morgan and their subsidiary depository institutions cation or notice under the BHC Act or the Bank Merger as well as other large banking organizations. See, e.g., Travelers Act.21 Group Inc., 84 Federal Reserve Bulletin 985 (1998); NationsBank Corporation, 84 Federal Reserve Bulletin 858 (1998). Building on Based on all the facts of record the Board concludes that this experience, the Board has developed a supervisory system that considerations relating to the financial and managerial rewill permit the Board to monitor and supervise the organization sources and future prospects of the organizations involved effectively. As previously noted, section 3 of the BHC Act prohibits are consistent with approval, as are the other supervisory the Board from approving a transaction if the resulting organization would control more than 10 percent of the insured deposits in the country. After consummation, Chase would control approximately 3.7 percent of U.S. insured deposits. 19. ICP notes press reports stating that: or other action that would affect the safety and soundness of the (i) a certain individual with alleged connections to parties in- institutions. These matters also raise issues that are outside the limited volved in a suspected money laundering enterprise maintained statutory factors that the Board is authorized to consider when reviewan account at Chase Bank; and ing an application under the BHC Act. See Western Bancshares, Inc. v. (ii) certain Chase credit card holders were erroneously billed by a Board of Governors, 480 F.2d 749 (10th Cir. 1973). The Board also telemarketer not related to Chase. ICP has provided no facts notes that the Department of Justice and the Environmental Protection that indicate any involvement by Chase or Chase Bank employ- Agency have jurisdiction, to the extent that the actions occur in the ees or management in the alleged money laundering activities United States, to determine whether companies are in compliance with or erroneous billing. federal environmental protection statutes and regulations. ICP has expressed concern about Chase's management on the basis 20. ICP also has expressed concern about the activities of two of press reports that Chase held less than 5 percent of the voting predecessor banks of Chase that allegedly were involved in the shares of Nichiei Co., Tokyo, Japan ("Nichiei"), a Japanese lending mid-19th century in servicing life insurance policies sold on the lives company at which an employee violated Japanese criminal law by of African-American slaves in the United States. In connection with engaging in certain collection practices. Chase has stated that it has these allegations, Chase states that it has investigated its activities and never owned any interest in Nichiei. There is no evidence that Chase has no record indicating that it had any role in providing or servicing controls, exercises a controlling influence over, or participates in any insurance on slaves. Chase represents that it will continue to investimanner in the management of Nichiei. See also 12 C.F.R. 225.31(e)(1) gate the matter by researching sources external to Chase. and 225.171. 21. The factors that the Board considers when reviewing an applica- ICP also has questioned the managerial resources of Chase and tion or notice under the BHC Act and the Bank Merger Act are Morgan on the basis of press reports that Morgan paid no federal necessarily limited by the acts. Moreover, the Board has noted previcorporate income tax in 1998, that Chase received government assis- ously that courts have held that the Board's limited jurisdiction to tance to retain jobs in New York City but subsequently moved those review applications and notices under the BHC Act does not authorize positions outside the city, and that Chase and Morgan helped to the Board to adjudicate disputes involving an applicant that do not finance various activities and projects worldwide that might damage arise under laws administered and enforced by the Board. See Deutthe environment particularly in predominantly minority areas. ICP's sche Bank AG, 85 Federal Reserve Bulletin 509 (1999); Union Bank contentions are unsubstantiated and contain no allegations of illegality of Switzerland, 84 Federal Reserve Bulletin 684 (1998). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 81 factors that the Board must consider under the Bank expanded or be reduced after consummation of the pro- Merger Act and section 3 of the BHC Act.22 posal. Convenience and Needs Factor A. CRA Performance Examinations In acting on a proposal under section 3 of the BHC Act, the As provided in the CRA, the Board has evaluated the Board is required to consider the effect of the proposal on convenience and needs factor in light of examinations of the convenience and needs of the communities to be the CRA performance records of the relevant depository served. The Board has long held that consideration of the institutions by the appropriate federal financial supervisory convenience and needs factor includes a review of the agency.23 Chase's lead bank, Chase Bank, which accounts records of the relevant depository institutions under the for approximately 80 percent of the total consolidated Community Reinvestment Act (12 U.S.C. § 2901 et seq.) assets of Chase, received an "outstanding" rating at its ("CRA"). Accordingly, the Board has carefully considered most recent CRA examination by the Federal Reserve the effect of the proposed merger on the convenience and Bank of New York ("FRBNY"), as of July 1999. All needs of the communities to be served and the CRA Chase's other subsidiary banks also received "outstandrecords of performance of the institutions involved in light ing" or "satisfactory" ratings at the most recent examinaof all the facts of record, including comments received on tions of their CRA performance.24 Morgan's only subsidthe proposal. iary bank, Morgan Guaranty, received an "outstanding" Three parties submitted written comments on aspects of rating from the FRBNY at its most recent examination, as the proposal and, in particular, the effect of the proposal on of January 1999. Morgan's subsidiary thrift, Morgan FSB, the convenience and needs of the affected communities and received a "satisfactory" rating for CRA performance the CRA performance records of the depository institutions from its primary federal financial supervisory agency, the involved. ICP has submitted comments opposing the pro- Office of Thrift Supervision ("OTS"), as of November posal and generally contending that through a series of 1998. Examiners found no evidence of prohibited discrimmergers over the past decade, Chase and its predecessor ination or other illegal credit practices at any of the insured institutions have withdrawn from the business of retail depository institutions involved in this proposal and found banking and concentrated on expanding their wholesale no violations of substantive provisions of the fair lending banking services. ICP states that after consummating previ- laws. ous mergers, Chase closed retail branches and abandoned Chase has indicated that it expects to continue to expand communities, often in low- and moderate-income ("LMI") and improve the products and services of Morgan and that or predominantly minority areas. ICP further alleges that the CRA-related programs and activities of the combined Chase underserves LMI and minority mortgage borrowers organization would be based on the current programs of and other borrowers seeking loans on properties in LMI the two individual organizations. Accordingly, the Board areas. ICP also contends, based in part on its analysis of has considered carefully the CRA performance records of data filed under the Home Mortgage Disclosure Act Chase and Morgan in evaluating the proposal. (12 U.S.C. § 2801 et seq.) ("HMDA"), that Chase and Morgan have violated the fair lending laws. The Greater B. CRA Performance Record of Chase's Rochester Community Reinvestment Coalition, Rochester, Subsidiaries New York ("GRCRC") has submitted comments that commend and criticize Chase's community reinvestment perfor- 1. Chase Bank mance in Rochester. The Association for Neighborhood & Overview. Chase Bank received an examination rating of Housing Development, Inc., New York, New York "outstanding" for its lending activities. Examiners com- ("ANHD"), has provided favorable comments on the com- mended the bank for its response to the credit needs of its munity reinvestment activities of Chase and Morgan, and in particular, the institutions' community development lending, and their lending, investments, technical assis- 23. ICP has questioned the reliability of CRA examinations in tance, and other forms of support to community develop- measuring the performance of a depository institution in meeting the credit needs of its community. The federal financial supervisory ment and nonprofit organizations. ANHD also has exagencies have stated that an institution's most recent CRA perforpressed concern that the community reinvestment products mance evaluation is an important and often controlling factor in the and programs of Chase and Morgan would cease to be consideration of an institution's CRA record because it represents a detailed evaluation of the institution's overall record of performance under the CRA by its appropriate federal financial supervisory agency. 22. ICP notes that Chase and Morgan are defendants in several 65 Federal Register 25,088 and 25,107 (2000). pending lawsuits. In one of these cases, which challenged the payment 24. The OCC has examined the CRA performance of the following crediting practices of Chase USA, the parties recently reached a Chase subsidiary banks: Chase Manhattan Bank and Trust Co., N.A., monetary settlement that also requires Chase to modify its practices. Los Angeles, California, rated "outstanding," as of October 1999; The other cases have been dismissed or are at preliminary pleading or Chase-USA, rated "outstanding," as of May 1999; The Chase Mandiscovery stages, and there has been no determination of liability or hattan Private Bank, N.A., Tampa, Florida, rated "outstanding," as of damages in these cases. In each of the cases, the courts appear to have October 1999; and The Chase Bank of Texas - San Angelo, National adequate jurisdiction and authority to provide relief to plaintiffs, if Association, Texas (then named Texas Commerce Bank - San Anwarranted. gelo), rated "satisfactory," as of August 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 2001 assessment areas and all segments of its community, in- cal area ("New York CMS A"), Chase Bank originated 424 cluding LMI geographies and borrowers. During the re- innovative or flexible small business loans during 1997 and view period of March 1997 to March 1999, Chase Bank 1998, totaling more than $56 million. and its subsidiaries purchased or originated approximately Examiners commented favorably on Chase Bank's inno- 67,600 small business loans, totaling more than $5.1 bil- vative and flexible home mortgage lending. Chase Bank lion.25 More than 90 percent of these loans were in amounts participated in special lending programs through the State of less than $100,000, with an average loan amount of of New York Mortgage Agency, the Federal National Mortapproximately $33,000, and 21 percent by number were to gage Association ("Fannie Mae") and the Federal Home businesses in LMI census tracts.26 Loan Mortgage Corporation ("Freddie Mac"), that were During the review period, Chase Bank and its subsidiar- designed to help LMI and other borrowers purchase homes ies purchased or originated approximately 67,500 HMDA- in LMI geographies. In addition, the bank offered a proprirelated loans, totaling more than $11 billion.27 Examiners etary mortgage loan program for customers financing propalso noted a significant increase in Chase Bank's HMDA- erties in LMI geographies who did not qualify for convenrelated lending. From 1996 to 1997, Chase Bank's HMDA- tional mortgage products. Chase Bank also offered a related and small business lending increased 25 percent by program of flexible mortgages in cooperation with the volume, and from 1997 to 1998, HMDA-related and small Association of Community Organizations for Reform Now. business lending increased an additional 62 percent and 63 In the area comprising New York State and the New York percent, respectively, by volume in LMI geographies. CMS A, Chase originated more than 3,100 innovative or Chase has stated that for the first half of 2000, 21.4 percent flexible mortgage loans in 1997 and 1998, totaling approxof Chase Bank's mortgage loans by volume were extended imately $325 million. to LMI borrowers and 15.5 percent by volume were ex- Chase Bank received an "outstanding" examination rattended on properties in LMI census tracts. ing for its investment activities. Examiners commented Community development lending at Chase Bank was favorably on Chase Bank's responsiveness to the primary considered by examiners to be outstanding. Examiners credit and community development needs in its assessment found that since its last CRA examination, Chase Bank's areas. During the examination period, Chase's level of community development loans had increased by 34 percent qualified investments totaled approximately $377 million. to approximately $613 million. Chase Bank dedicated a Examiners also commended Chase Bank for the level of its large portion of its community development lending to qualified community development investments in facilities support housing initiatives by financing the construction of and organizations supporting affordable housing, economic more than 4,000 housing units in the bank's assessment development, and community services. areas. Chase Bank received a "high satisfactory" examination Examiners found that Chase Bank offered a variety of rating for its record of providing retail banking and comloan products that featured innovative and flexible lending munity development services in its assessment area. Exampractices to serve the credit needs of its assessment area. iners stated that Chase Bank's branch delivery system was During the examination period, the bank originated approx- reasonably accessible to essentially all portions of its asimately 3,600 of these loans, totaling approximately sessment areas. At the time of the examination, Chase $380 million, to assist LMI borrowers or borrowers in LMI Bank operated 486 retail branches in its combined assessgeographies. Chase Bank was instrumental in developing ment area, 22 percent of which were in LMI geographies. and testing the "FA$TRAK" program and other loan pro- Chase Bank's business hours and services were responsive grams designed by the Small Business Administration to the needs of all portions of its assessment areas, includ- ("SBA") to provide loans to small businesses in amounts ing LMI geographies and individuals. Examiners found of less than $150,000. In 1997 and 1998, the bank origi- that Chase offered a wide range of special banking prodnated more SBA loans than any other lender in the SBA's ucts designed to support community development, such as New York region. Chase Bank also used credit enhance- programs for first-time home purchase expenses, education ments, such as guarantees provided by the SBA and other expenses, and small business capitalization. Chase Bank government agencies, to provide small business credit to also provided services to nonprofit organizations seeking borrowers who would not normally qualify for conven- assistance with administering affordable housing constructional loan products. In the area comprising New York tion loans. State and the New York consolidated metropolitan statisti- New York CMS A: Examiners found that Chase Bank had a strong lending record in the New York CMSA, which represented 93 percent of the bank's deposit base, in view of its overall lending record and volume of community 25. In this context, "small business loans" means loans in amounts development loans. Chase Bank originated approximately of less than $1 million. Chase Bank also made 54 percent of its small 110,500 HMDA-related and small business loans, totaling business loans to businesses with gross annual revenues of $ 1 million or less ("loans to small businesses"). approximately $12.7 billion, in the New York CMSA. The 26. Examiners noted that 21 percent of all businesses in Chase examination report stated that Chase Bank's distribution of Bank's assessment area were in LMI areas. home purchase loans reflected excellent penetration in the 27. In this context, "HMDA-related loans" includes home purchase New York CMSA. During the examination period, examinmortgage loans, home improvement loans, and refinancing of such ers found that 13 percent of Chase Bank's home purchase loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 83 and refinance loans were in LMI geographies, where vided business development, financing, and planning assis- 12 percent of the housing units were owner occupied. tance for small business owners. Furthermore, the examination report observed that 21 per- New York State'. In Chase Bank's assessment areas in cent of Chase Bank's small business loans were in LMI New York State, which excluded the New York CMSA, geographies, which coincided with the percentage of busi- examiners found that Chase exhibited good responsiveness nesses in LMI geographies. Examiners noted a significant to the credit needs of its assessment area. During the increase in Chase Bank's small business and HMDA- examination period, Chase Bank reported 9,849 loans totalrelated lending. From 1996 to 1997, the number of small ing approximately $798 million, of which 64 percent were business loans increased 345 percent, with a 275-percent small business loans. Furthermore, the examination report increase in small business loans in LMI geographies. Ex- noted that small business lending significantly increased, aminers also specifically noted the bank's excellent perfor- especially in LMI geographies. From 1996 to 1997, small mance in LMI geographies. From 1997 to 1998, HMDA- business lending increased 397 percent. Overall, HMDArelated lending increased 63 percent overall and 68 percent related lending increased 18 percent from 1996 to 1997 in LMI geographies. and 45 percent from 1997 to 1998. Examiners also charac- Examiners noted that Chase Bank participated in com- terized Chase Bank's loan activity in all portions of its plex and innovative community development lending pro- assessment area, including LMI geographies, as excellent. grams, including a loan pool established by wholesale and During the examination period, Chase Bank reported 362 foreign banks in New York City. ICP contends, however, home purchase or refinance loans in LMI geographies. that Chase Bank's community reinvestment efforts primar- Moreover, 25 percent of Chase Bank's small business ily support the construction of housing that LMI persons loans were in LMI geographies. Examiners also found that cannot afford. In the New York CMS A, Chase Bank had the distribution of loans among borrowers of different approximately $520 million in outstanding community de- income levels was excellent. More than 23 percent of velopment loans during the examination period, which Chase Bank's home purchase and finance loans were to provided financing for more than 2,700 new housing units. LMI borrowers. Chase Bank also had an excellent record Chase Bank also states that it has continued to engage in of lending to businesses of different sizes. Eighty-five community development lending. According to Chase percent of Chase Bank's small business loans were in Bank, it closed a loan for approximately $6.9 million loan amounts of $100,000 or less. Furthermore, approximately in 2000 to help finance the rehabilitation of 200 apartment 52 percent of Chase Bank's small business loans were to units in the Bronx, the majority of whose residents re- small businesses. ceived public housing assistance. Furthermore, Chase has A large portion of Chase Bank's HMDA-reportable lendstated that in August 1999, it provided a $1.75 million loan ing and small business lending in upstate New York was in to rehabilitate apartment units for LMI veterans in Queens. the Rochester metropolitan statistical area ("Rochester The examination report characterized Chase Bank's level MSA"). During the examination period, Chase Bank reof qualified investments in the New York CMSA as strong. ported 1,400 home purchase and refinancing loans and Chase Bank's qualified investments totaled approximately 2,212 small business loans in the portion of the Rochester $365 million at the time of the examination. Ninety-one MSA in its assessment area. Examiners noted that Chase percent, or $344 million, of Chase Bank's investments exhibited excellent geographic distribution of small busiwere directed to agencies engaged in affordable housing. ness loans. Approximately 23 percent of Chase Bank's Chase Bank also participated in innovative qualified invest- small business loans were in LMI geographies. This level ments such as Low Income Housing Tax Credits of lending exceeded the percentage of loans in LMI geog- ("LIHTC"), which accounted for approximately 77 per- raphies by small business loan reporters in the aggregate. cent of total qualified investments. Examiners also noted as excellent Chase Bank's perfor- Examiners determined that Chase Bank's delivery sys- mance in its distribution of small business loans by bortem was reasonably accessible to essentially all portions of rower income. Eighty-four percent of all Chase Bank's the New York CMSA assessment area. Chase Bank oper- small business loans were in amounts of $100,000 or less, ated 406 branches in the New York CMSA, including 87 with an average total amount of approximately $33,000. branches in LMI geographies. The examination report also Moreover, 53 percent of total small business loans were to stated that Chase Bank employed multiple alternative de- small businesses. livery systems that were generally effective in its enhanc- GRCRC expresses concern about Chase Bank's home ing the distribution of banking services throughout the lending record among minority and LMI individuals and in New York CMSA, including a network of 127 stand-alone predominantly minority and LMI census tracts in Roches- ATM locations, 33 percent of which were in LMI geogra- ter and about Chase Bank's record of attracting, counselphies. In certain branches, Chase Bank offered payroll ing, and retaining potential minority and LMI applicants check cashing for non-customer employees of Chase's for home mortgages. The examination report, however, corporate clients. Examiners found that Chase Bank also characterized Chase Bank's distribution of home purchase provided community development services that included and refinance loans by borrower income as good. During seminars designed to help build the credit skills of commu- the examination period, 29 percent of Chase Bank's home nity development organizations. In addition, Chase Bank purchase and refinance loans were to LMI borrowers. also operated three Business Resource Centers that pro- Furthermore, Chase Bank also demonstrated a strong per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • February 2001 formance in home purchase and refinance lending, with 10 Chase Bank also provided a high level of community percent of such loans in LMI geographies. Chase repre- development service in the New York State assessment sents that for the first half of 2000, its loan penetration of areas, including the sponsorship of 125 seminars and work- LMI census tracts has increased more than 5 percent com- shops focusing primarily on affordable housing. Chase pared with 1999. The Board also notes that from 1994 to states that in March 2000, Chase Bank conducted a semi- 1999 loan applications to Chase Bank by minorities in the nar in cooperation with the City of Rochester and local Rochester MSA increased 24 percent. During the examina- realtors that was designed to encourage the purchase of tion period, examiners found that Chase Bank sponsored or affordable housing in Rochester. Chase Bank personnel and conducted approximately 35 seminars and workshops on lending officers also were available at the seminar to disaffordable housing with Rochester community develop- cuss the mortgage application process with attendees. ment organizations. Texas: Chase Bank's operations in Texas as of the date Chase Bank also had a good performance record in of its most recent examination of CRA performance by the community development lending and in innovative and OCC (September 1996, the "1996 Examination") were flexible lending programs throughout New York State, conducted under the name Texas Commerce Bank, N.A., including the Rochester MSA. During the examination Houston ("Chase-TX").28 The Board has considered the period, Chase Bank reported community development loan 1996 examination and supplemental information provided commitments for its New York State assessment areas by Chase on its CRA-related activities in Texas. The Board totaling $31 million. In the Rochester MSA, commitments reviewed the CRA performance of Chase Bank's operafor this type of lending totaled $13.5 million. Examiners tions in Texas in the context of Chase Bank's application to noted that 79 percent of the bank's community develop- merge with Chase-TX. See The Chase Manhattan Bank, 86 ment loan commitments in the New York State assessment Federal Reserve Bulletin 610 (2000). In approving the area were originated since the previous examination. The merger of Chase Bank and Chase-TX, the Board carefully examination report also observed that Chase Bank's inno- reviewed the lending records of Chase Bank and Chasevative and flexible lending practices in the New York State TX, including their policies and programs designed to assessment areas were comparable with Chase Bank's ensure compliance with the fair lending laws. practices in the New York CMSA. In the Rochester MSA, The 1996 Examination noted that Chase-TX had origi- Chase Bank originated mortgages under the Rochester nated a significant volume and variety of loans in its LMI Housing Program, which was a program sponsoring communities. In 1995, Chase-TX originated 11,409 home 30-year mortgage loans that feature low down payment improvement loans, totaling approximately $135 million. requirements of $500 from the borrower's own funds and After reviewing aggregate HMDA data for all reporting flexible debt-to-income ratios. lenders, examiners determined that in 1995, Chase-TX In the New York State and Rochester MSA assessment made more home improvement loans in Texas than any areas, examiners found that Chase maintained a good level other lender. Furthermore, Chase-TX designed a program of qualified community development investments that re- of affordable loans that used specialized loan products to flected a strong responsiveness to credit and community provide credit opportunities that might not otherwise have development needs. At the time of the examination, Chase been available. Under this program, Chase-TX originated Bank's qualified investments totaled $12 million, of which 4,376 mortgage and home improvement loans, totaling approximately 83 percent were in Rochester. Examiners approximately $50 million, in 1995. Examiners also found also noted that Chase Bank made innovative and complex that in 1995, 90 percent of Chase-TX's lending was in its investments, such as LIHTCs which comprised approxi- assessment areas. Furthermore, Chase-TX demonstrated mately 77 percent, or $9.2 million, of the bank's qualified strong loan penetration of LMI areas, and a high level of investments in the New York State assessment areas. More- performance in the distribution of loans by borrower inover, approximately 90 percent of Chase Bank's invest- come level. According to Chase, in 1999 its bank origiments were directed to agencies engaged in affordable nated over 18,485 mortgage loans in Texas, of which housing. approximately 10 percent were in LMI census tracts and Examiners found that Chase Bank's record of providing 22 percent were to LMI borrowers. During the same time retail banking and community development services in its period, Chase has reported that the bank originated 8,146 New York State assessment areas, including the Rochester small business loans in Texas, of which 30.8 percent were MSA, was outstanding. Moreover, the examination report in LMI census tracts. indicated that Chase Bank's branch delivery system was The 1996 Examination noted that Chase-TX engaged in readily accessible to essentially all portions of the New a significant amount of community development lending. York State assessment areas, including the Rochester MSA. In 1995, Chase-TX provided $94 million in community As of July 1999, Chase Bank operated 73 retail branches in development loans. These loans helped finance projects by its New York State assessment areas, including 31 branches America's Preferred Homes (a 360-unit LMI apartment in the Rochester MSA. During the examination period, complex), the Las Haciendas single-family affordable Chase Bank closed one retail branch, which was not in an LMI geography. Examiners stated that Chase Bank's record of opening and closing branches had not adversely 28. Chase-TX later changed its name to Chase Bank of Texas and affected the accessibility of the branch delivery system. merged with Chase Bank in August 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 85 housing development subdivision, and the Midland County gages and $86 million in home refinance mortgages.29 Housing Authority. Chase-TX also engaged in creative and Examiners found that the geographic distribution of Chaseflexible financing activities, such as making a $5.4 million USA's loans reflected good penetration in LMI geograbridge loan for the construction of an apartment complex phies. Approximately 10 percent of Chase-USA's home for senior citizens in an LMI neighborhood and developing mortgage and refinance loans in the Delaware portion of its lease-purchase mortgage products to facilitate the develop- assessment area were in LMI geographies. Examiners also ment of affordable housing. noted good distribution of Chase-USA's loans among bor- According to Chase, in 1999, Chase-TX provided rowers of different income levels. During the examination $10.9 million in loans and lines of credit for the acquisition period, 47 percent of Chase-USA's home purchase mortand development of affordable housing subdevelopments gages, and 22 percent of its home refinance mortgages and apartment complexes in Dallas and Houston. Further- were to LMI borrowers. Chase-USA also originated 225 more, Chase states that in 2000, the Texas bank provided small business loans totaling $4.8 million. Examiners faapproximately $4.8 million in loans and credit to commu- vorably noted that the geographic distribution of Chasenity organizations involved in the economic redevelopment USA's small business loans showed improvement during of inner cities in Texas. the examination period. From 1997 to 1998, small-business The 1996 Examination commented favorably on Chase- loans in low-income geographies increased to 8 percent, TX's community investment activities. During the 1996 while such loans in moderate-income geographies inexamination period, examiners found that Chase-TX made creased to 18 percent. more than $2.9 million of equity investments in Texas Examiners found that CMMC made a significant number community development corporations. During the same of home purchase and refinance loans to LMI borrowers period, Chase-TX also provided grants to cover the opera- and outside Chase-USA's assessment area. During the extional expenses of ACCION-San Antonio, a community amination period, CMMC made more than $3.9 billion in organization that made loans to borrowers in LMI neigh- home mortgage purchase and refinance loans to LMI borborhoods. The 1996 Examination also stated that rowers nationwide. In 1997, approximately 26.2 percent of Chase-TX officers and employees regularly provided finan- CMMC's home purchase and refinance loans were to LMI cial and credit counseling services, often coordinated with borrowers. local not-for-profit organizations, at locations throughout Examiners found that Chase-USA offered flexible and its community. Examiners found that the counseling ser- innovative affordable mortgage products to help meet the vices assisted LMI individuals to understand the credit needs of LMI borrowers. Chase-USA, as a participant in decision process and allowed them to learn about the Federal Housing Administration and Veterans Administra- Chase-TX's bank products designed to meet their credit tion programs, offered 1,231 loans through these programs needs. Chase states that Chase Bank has continued its during the examination period. Chase-USA also offered community investment activities in Texas. According to several proprietary affordable loan products. Examiners Chase, as of October 2000, Chase Bank's outstanding favorably noted that Chase-USA took a leadership role in community investment commitments in Texas totaled establishing partnerships with local financial institutions to $59.2 million. Chase states that from 1999 to 2000, Chase sell affordable mortgage-backed securities. Bank has invested $12.4 million in municipal bonds for Chase-USA's community development lending reflected affordable housing in Texas, and invested in a community a good responsiveness to the credit needs of its assessment development corporation in Fort Worth that provides fi- area in terms of loan volume and lending practices. During nancing for disadvantaged local small businesses. the examination period, Chase-USA and its affiliates, including CMMC, made loan commitments totaling $34.2 million primarily to finance affordable rental housing development and new small businesses. Examiners found that CMMC took a lead role in establishing a network of 2. Chase-USA community development financial institutions that offered credit and financial assistance to individuals and small businesses. CMMC also provided a $12 million loan for Chase-USA was most recently examined for CRA-perfor- the acquisition of a community shopping center in Philadelmance as of May 1999 for the examination period from phia to assist in the economic revitalization of a central city January 1997 to March 1999. As part of the evaluation, community. examiners considered the lending records and activities of Examiners favorably commented on Chase-USA's sig- Chase-USA and its affiliates, notably the Chase Manhattan nificant level of qualified community development invest- Mortgage Corporation, Edison, New Jersey ("CMMC"). ment and responsiveness to the affordable housing and Examiners rated Chase-USA as "outstanding" for overall economic development needs of its community. During the CRA performance. The examination report stated that Chase-USA's lending record reflected good responsiveness to the credit needs of 29. Examiners noted that for approximately half of the examination its community. During the examination period, Chase-USA period, Chase-USA was restricted in its ability to solicit in-state originated more than $163 million in home purchase mort- lending business under Delaware law. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • February 2001 examination period, the investment commitments of During the examination period, Morgan provided a sig- Chase-USA and its affiliates in its assessment area totaled nificant level of community development loans, qualified $31.6 million. Examiners noted that Chase-USA took a investments, and community development services to help leadership role in working with the Delaware State Hous- meet the credit and community development needs of its ing Authority ("DSHA") bond underwriter to restructure assessment areas. Examiners stated that Morgan Guaranits bond program and thereby significantly reduced costs to ty's community development lending totaled approxithe agency and home buyers. Chase-USA and CMMC mately $268.2 million, representing an increase of purchased a total of $21.4 million in DSHA bonds. CMMC 112 percent since the previous examination. Consistent also purchased $1.5 million in LIHTC partnerships. Exam- with Morgan Guaranty's wholesale bank operations, most iners noted that Chase-USA provided $1.83 million in lending activity was indirect, primarily financing housing qualified grants to community organizations to develop and community service intermediaries that supported comaffordable housing programs, shelter and outreach services munity development in the bank's assessment area. for the homeless, and a small business resource center. Morgan Guaranty also had a significant level of qualified Chase-USA also provided more than 400 computers and investments, totaling approximately $196.9 million at the printers and similar donations to community-based organi- time of the examination and representing an increase of zations. 106 percent since the previous examination. Indirect investments in affordable housing initiatives totaled more C. CRA Performance Record of Morgan than $168 million or 86 percent of Morgan Guaranty's qualified investments. Other investments included Morgan Guaranty is a wholesale banking institution that $11.6 million of grants and contributions to more than 200 provides investment management, corporate trust, financial nonprofit community development organizations. Projects and estate planning, fiduciary, and private banking services in the bank's assessment area totaled $149.4 million or for institutions and high net worth individuals. Morgan 76 percent of total investments. Guaranty is a "wholesale bank" for CRA purposes30 and Examiners noted that Morgan Guaranty provided a subits performance is evaluated under the "community devel- stantial level of community development services, includopment test."31 Community development activities as a ing advisory services, technical assistance, and in-kind general matter must benefit areas in an institution's assess- donations. Approximately 47 percent of Morgan Guaranment area(s) or a broader statewide or regional area that ty's community development services were for affordable includes the institution's assessment area(s).32 housing programs for LMI individuals. Morgan Guaranty Morgan Guaranty's most recent CRA performance eval- and its affiliates also donated office furniture, used computuation reviewed the institution's record of assisting to meet ers, and other items to 87 nonprofit and public institutions. the credit needs of its community in 1997 and 1998. Examiners indicated that Morgan Guaranty extensively Examiners rated Morgan Guaranty's performance under used innovative and complex qualified investments, comthe community development test "outstanding." The exam- munity development loans, and community development ination report noted that Morgan had conducted the major- services. Through a partnership with a Primary Care Develity of its community development lending and qualified opment Corporation ("PCDC"), Morgan Guaranty eninvestment activities through its affiliate, Morgan Commu- gaged in the financing of ten primary care facilities that nity Development Corporation. served more than 73,000 low-income individuals in New York City. Examiners stated that Morgan Guaranty's longterm efforts with the PCDC had improved access to pri- 30. A "wholesale bank" is a bank that: mary health care for LMI neighborhoods. Morgan Guar- (i) Is not in the business of extending home mortgage, small anty also structured a revolving line of credit to the New business, small farm or consumer loans to retail consumers; York Community Investment Company and syndicated and bridge loans for several housing fund initiatives. Of Mor- (ii) Has been designated as a wholesale bank by its appropriate federal banking agency. 12 C.F.R. 228.12(w). gan Guaranty's total qualified investments, examiners ICP alleges that Morgan engages in the business of multifamily found that approximately 81 percent or $158.5 million mortgage lending. Morgan engages in the securitization of multifam- were LIHTCS and, therefore, qualified as complex investily mortgage loans, an activity that is consistent with its wholesale ments. bank designation. The examination report indicated that Morgan Guaranty 31 .See 12 C.F.R. 228.25(a). The test evaluates a wholesale bank on its record of community development services, community develop- had exhibited excellent responsiveness to credit and comment investments, and community development lending. 12 C.F.R. munity development needs in its assessment areas through 228.25(c). The primary purpose of any service, investment, or loan community development lending and investments and adeconsidered under the test must be "community development," which quate responsiveness through its community development is defined in terms of specific categories of activities that benefit LMI service and practices. Affordable housing activity totaled individuals, LMI areas, or small businesses or small farms. See 12 C.F.R. 228.12(h); see, e.g., The Charles Schwab Corporation, 86 $180.6 million or 67 percent of Morgan Guaranty's total Federal Reserve Bulletin 494, 496 (2000). community development lending. Morgan's lending to or- 32. Community development activities outside an institution's as- ganizations that provide community services for LMI indisessment area(s) may also be considered if the institution has adeviduals totaled $62.1 million. Examiners also found that quately addressed the needs of its assessment area(s). See 12 C.F.R. Morgan Guaranty provided financing to organizations such 228.25(e). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 87 as the National Community Development Initiative that The Board recognizes, however, that HMDA data alone provided financial and technical support to nonprofit com- provide an incomplete measure of an institution's lending munity development corporations. Qualified investments in its community because the data cover only a few categoin affordable housing initiatives totaled $178.5 million or ries of housing-related lending. HMDA data, moreover, 91 percent of Morgan Guaranty's qualified investments. In provide only limited information about the covered loans.37 Morgan Guaranty's New York assessment area, examiners HMDA data, therefore, have limitations that make the data found that the institution's LIHTCs supported housing an inadequate basis, absent other information, for concludinitiatives that resulted in the creation or rehabilitation of ing that an institution has not adequately assisted in meetapproximately 5,000 units of affordable housing for LMI ing its community's credit needs or has engaged in illegal individuals. lending discrimination.38 Because of the limitations of HMDA data, the Board has D. HMDA Data carefully considered the data and comments in light of other information, including information provided by The Board also has considered the lending record of Chase Chase and Morgan, examination reports, and confidential and Morgan in light of comments about the HMDA data reported by the organizations' subsidiaries.33 HMDA data The Board has considered the due diligence and other actions taken from 1997 to 1999 indicate that in New York and Texas,34 by Chase in connection with its relationships with consumer lending Chase was generally comparable with lenders in the aggre- companies. For example, before obtaining Chase's warehouse financgate in its assessment areas in terms of the percentage of ing services, consumer-lending companies must make certain written housing-related loans to African Americans and Hispanics. representations and warranties stating that they are in compliance with all applicable laws, including consumer protection laws. Chase also During the same time period, Chase's rate of denying has retained an outside firm to investigate and monitor the loan applications from African-American and Hispanic borrowproduction activities of its warehouse finance customers. ers for home mortgage loans in the New York and Texas In addition, Chase states that in the securitization of subprime loans, assessment areas was also comparable with lenders in the it has no role in the initial funding of, and does not control the loan aggregate. The data further indicate that Chase's lending in selection criteria for, the loans it securitizes. Chase states, however, that it conducts due diligence reviews for compliance with consumer minority census tracts in the New York and Texas assessand fair lending laws, including on-site reviews, of every subprime ment areas was comparable with, and at times, exceeded, pool it securitizes as lead manager. Furthermore, when securitizing such loans by lenders in the aggregate.35 subprime mortgage loans, Chase reviews every loan purchased to help The Board is concerned when an institution's record ensure adherence to fair lending laws. Morgan states that it does not engage in subprime warehouse indicates disparities in lending, and believes that all banks financing. Morgan also states that it does not control the origination of are obligated to ensure that their lending practices are subprime loans from consumer lending companies that it securitizes, based on criteria that ensure not only safe and sound but that it hires third parties to conduct due diligence reviews of all banking, but also equal access to credit by creditworthy consumer lending companies before it serves as lead manager. Furapplicants regardless of their race or income level.36 thermore, when securitizing mortgage-backed loans, Morgan, as lead manager, conducts on-site reviews of the consumer lending company and hires a third party to review a sample of the loan pool to be securitized. 33. Some commenters have criticized Chase's record of home The Board has considered all these facts of record in evaluating the mortgage lending in numerous markets, including Chase's assessment managerial and convenience and needs factors in this case. Moreover, areas in New York and Texas. GRCRC and ICP note that in certain the Board notes that the Department of Housing and Urban Developmarkets, minority applications for conventional home purchase and ment, the Department of Justice, and the Federal Trade Commission refinance loans were denied by Chase more frequently than by lenders have responsibility for reviewing the compliance with fair lending in the aggregate. ICP also presents data purportedly demonstrating laws of nondepository institutions. that Chase denies applications from minorities more frequently than it 37. The data, for example, do not account for the possibility that an denied applications from nonminorities. .institution's outreach efforts may attract a larger proportion of margin- ICP contests the inclusion in Chase's HMDA data for subprime ally qualified applicants than other institutions attract and do not loans originated by Chase affiliates. The Board notes that Regula- provide a basis for an independent assessment of whether an applicant tion C (12 C.F.R. 203 et seq.) requires all mortgage lending institu- who was denied credit was, in fact, creditworthy. Credit history tions and subsidiaries of financial institutions supervised by the Board, problems and excessive debt levels relative to income (reasons most OCC, FDIC, and OTS to submit HMDA data to the appropriate frequently cited for a credit denial) are not available from HMDA federal financial supervisory agency. See 12 C.F.R. 203, App. A, Part I data. (C) & (E). 38. ICP contends that Chase Bank, Chase-USA through its subsid- 34. Mortgage loans extended by Chase and its subsidiaries in iary CMMC, and certain other subsidiaries engage directly and indi- New York and Texas comprise 85 percent of Chase's total HMDA- rectly in disproportionate amounts subprime lending to LMI and reportable loans in states where it has been evaluated for performance minority individuals in certain metropolitan areas. ICP further conunder the CRA. tends that Chase has increased its involvement in subprime lending. 35. ICP has expressed concern that the HMDA data reported by Subprime lending is a permissible activity when conducted in compli- Chase do not separately report subprime loans to borrowers. HMDA ance with fair lending laws. ICP has provided no information that and Regulation C do not require separate reporting for subprime loans indicates that Chase's subprime lending is illegal. Moreover, examinto borrowers. ers found no evidence of illegal discrimination or credit practices at 36. ICP also generally alleges that Chase and Morgan have indi- Chase Bank. Examiners considered CMMC's practices and record of rectly supported predatory and discriminatory lending through their lending when evaluating Chase-USA for CRA performance and found business relationships that include warehouse finance and securitiza- no evidence of illegal discrimination or credit practices. The Board tion services for several nonaffiliated nonbanking companies ("con- notes that Chase reviews subprime mortgage applications to inform sumer lending companies"). applicants if they may qualify for a prime loan. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • February 2001 supervisory material. As noted above, examiners found no eral supervisor at the next CRA examination of the releevidence of prohibited discrimination or other illegal credit vant subsidiary depository institution.41 practices at the subsidiary banks of Chase and Morgan at their most recent examinations. Examiners reviewed fair F. Conclusion on the Convenience and Needs lending policies and procedures of the banks and found the Factor policies and procedures to be comprehensive and appropriate for monitoring compliance with fair lending laws. The In its review of the convenience and needs factor, the Board has also considered the HMDA data in light of the Board has carefully considered the entire record, including lending records of Chase and Morgan which show that the the CRA performance examinations of each of the insured organizations' subsidiary banks significantly help to meet depository institutions involved in the proposal, all the the credit needs of their communities, including LMI areas. information provided by the commenters,42 Chase and Morgan, the opinion of federal and state agencies, and E. Branch Closings confidential supervisory information43 Based on all the facts of record, and for the reasons discussed above, the Commenters expressed concern that consummation of the Board concludes that considerations relating to the conveproposal would result in branch closings and that these nience and needs factor, including the CRA performance closings would have adverse effects on the local communi- records of the relevant insured depository institutions, are ties in which the branches are located.39 consistent with approval of the proposal. The Board has carefully considered the comments concerning branch closings in light of all the facts of record, Nonbanking Activities the branch closing policies of Chase and Morgan, and the record of the two organizations in opening and closing Chase also has filed notice under section 4(j)(2) of the branches. Examiners at the most recent CRA examination BHC Act to acquire Morgan FSB and thereby engage in of Chase and Morgan reviewed the banks' records of operating a savings association. The Board has determined opening and closing branches and found that the banks' by regulation that the operation of a savings association is, branch closings had not adversely affected the accessibility within certain limits, closely related to banking for purof banking services in their communities. poses of the BHC Act.44 Chase has committed to conduct The Board also has considered that federal banking law these nonbanking activities in accordance with the limitaprovides a specific mechanism for addressing branch clos- tions set forth in Regulation Y and the Board's orders and ings. Federal law requires an insured depository institution interpretations governing the activity. to provide notice to the public and to the appropriate To approve a notice under section 4(c)(8) of the BHC federal supervisory agency before closing a branch.40 The Act, the Board also must determine that the proposed law does not authorize federal regulators to prevent the activities "can reasonably be expected to produce benefits closing of any branch. Branch closings resulting from the proposal also would be considered by the appropriate fed- 41. ICP asserts that Chase should be held accountable for the closure of branches originally sold by Chase to another banking institution. The Board notes that these closings are subject to separate review by the primary federal supervisor of the purchaser under the same policy guidelines applicable to Chase. 39. ICP expresses concern about potential branch closures by citing 42. ANHD requests that Chase and Morgan answer certain questwo lawsuits that Chase aggressively opposed involving alleged ille- tions and provide certain commitments. The Board notes that the CRA gal discrimination in layoffs after previous Chase consolidations. The requires only that, in considering an acquisition proposal, the Board composition of an applicant's workforce by race or age is not within carefully review the actual performance records of the relevant deposthe statutory factors that the Board is permitted to consider under the itory institutions in helping to meet the credit needs of their communi- BHC Act. The Board also notes that the Equal Employment Opportu- ties. The CRA does not require depository institutions to make pledges nity Commission has jurisdiction to determine whether a banking concerning future performance under the CRA. The Board also notes organization such as Chase is in compliance with federal equal em- that future activities of Chase's subsidiary banks will be reviewed by ployment opportunity statutes under the regulations of the Department the appropriate federal supervisors in future performance examinaof Labor. See 41 C.F.R. 60-1.7(a), 60-1.40. tions, and such CRA performance records will be considered by the 40. Section 42 of the Federal Deposit Insurance Act (12 U.S.C. Board in subsequent applications by Chase to acquire a depository § 1831r-l), as implemented by the Joint Policy Statement Regarding institution. Branch Closings (64 Federal Register 34,844 (1999)), requires that a 43. ICP has alleged that the merger of Chase and Morgan might bank provide the public with at least 30 days' notice and the appropri- result in the loss of jobs. As previously noted, the factors that the ate federal supervisory agency with at least 90 days' notice before the Board may consider when reviewing an application or notice are date of the proposed branch closing. The bank also is required to limited by the applicable law. The effect of a proposed transaction on provide reasons and other supporting data for the closure, consistent employment in a community is not among the factors included in the with the institution's written policy for branch closings. acts administered by the Board. Moreover, the convenience and needs ICP also expresses concern over the sale of Chase Bank's Virgin factor has been consistently interpreted by the federal banking agen- Island branches to an acquirer that might also be engaged in nonbank- cies, the courts, and Congress to relate to the effect of a proposal on ing and nonfinancial activities. The Board notes that any sale of the availability and quality of banking services in the community. See branches must be in accordance with the law including any relevant Wells Fargo & Company, 82 Federal Reserve Bulletin, 455, 457 application and review of CRA performance as required in accordance (1996). with those applications. 44. See 12 C.F.R. 225.28(b)(4)(ii). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 89 to the public . . . that outweigh possible adverse effects, Chase also has requested the Board's consent under such as undue concentration of resources, decreased or section 4(c)(13) of the BHC Act and section 211.5(c) of the unfair competition, conflicts of interests, or unsound bank- Board's Regulation K (12 C.F.R. 211.5(c)) to acquire cering practices."45 As noted above, Morgan received a "sat- tain foreign investments of Morgan 47 In addition, Chase isfactory" rating from the OTS at its most recent CRA has provided notice under sections 25 and 25A of the performance examination, as of November 1998. Federal Reserve Act and sections 211.3, 211.4, and 211.5 As part of its evaluation of the public interest factors, the of Regulation K (12 C.F.R. 211.3, 211.4, and 211.5) to Board considers the financial condition and managerial acquire some of Morgan's foreign branches and Morgan resources of the notificant and its subsidiaries, including Guaranty International Finance Corporation, Newark, Delthe companies to be acquired, and the effect of the pro- aware, a company organized under section 25A of the posed transaction on those resources. For the reasons noted Federal Reserve Act. The Board concludes that all the above, and based on all the facts of record, the Board has factors required to be considered under the Federal Reconcluded that financial and managerial considerations are serve Act, the BHC Act, and the Board's Regulation K are consistent with approval of the proposal. consistent with approval of these proposals. The Board also has considered the competitive effects of Chase Bank has also applied under section 9 of the the proposed acquisition by Chase of Morgan FSB. Mor- Federal Reserve Act (12 U.S.C. § 322 et seq.) to establish gan FSB has two branches in California and Florida and branch at the offices of Morgan Guaranty. The Board has competes directly with Chase in the West Palm Beach considered the factors it is required to consider when banking market. For the reasons discussed above, the reviewing application for establishing branches pursuant to Board has concluded that the acquisition of Morgan's section 9 of the Federal Reserve Act (12 U.S.C. § 322) subsidiary depository institutions, including Morgan FSB, and, for the reasons discussed in this order, finds those is not likely to have any significantly adverse effects in the factors to be consistent with approval. West Palm Beach banking market or any other relevant banking market. Based on all the facts of record, the Board Conclusion concludes that it is unlikely that significantly adverse competitive effects would result from the nonbanking acquisi- Based on the foregoing, and in light of all the facts of tion proposed in the transaction. record, the Board has determined that the applications and Chase has indicated that consummation of the proposal notices should be, and hereby are, approved.48 The Board's would provide current and future customers of the two organizations greater convenience. Chase also has stated that the proposal would permit the combined organization 47. ICP contends that some activities by ICTSI International Holdto achieve greater operational efficiencies and economies ings Corp., Manila, Philippines ("ICTSI"), and Massera S.A., Buenos of scale, and that these improvements would strengthen Aires, Argentina ("Massera"), are impermissible under section 4 of Chase's ability to compete in the markets in which it the BHC Act. Under section 4(c)(13) of the BHC Act, a bank holding company may acquire shares of a foreign organization that does no operates. Morgan also would provide the combined organibusiness in the United States except as incident to its international or zation with an enhanced capacity to offer wholesale bank- foreign business, if the Board determines that the exemption would ing products and services. Chase, in turn, would provide not be substantially at variance with the purposes of the BHC Act and former Morgan customers with access to certain commer- would be in the public interest. See 12 U.S.C. § 1843(c)(13). Section 211.5(b)(l)(iii) of Regulation K generally permits investments of cial and retail banking products not offered by Morgan's less than 20 percent of the voting shares (and less than 40 percent of depository institutions, such as home mortgage loans. Furthe total equity) of foreign companies without regard to the activities thermore, former Morgan customers would gain access to of such companies. 12 C.F.R. 211.5(b)(l)(iii). Chase's investments in Chase's expansive branch delivery network 46 ICTSI and Massera would comply with these provisions. The Board also concludes that conducting the proposed 48. Commenters have requested a public meeting or hearing on the proposal. Section 3 of the BHC Act does not require the Board to hold nonbanking activity within the framework of Regulation Y a public hearing on an application unless the appropriate supervisory and Board precedent is not likely to result in adverse authority for the bank to be acquired makes a timely written recomeffects, such as undue concentration of resources, conflicts mendation of denial. The Board has not received such a recommendaof interests, or unsound banking practices, that would tion from the appropriate supervisory authorities. The Board's regulations provide for a hearing under section 4 of the BHC Act if there are outweigh the public benefits of the proposal, such as indisputed issues of material fact that cannot be resolved in some other creased customer convenience and gains in efficiency. Acmanner. See 12 C.F.R. 225.25(a)(2). Under its rules, the Board also cordingly, based on all the facts of record, the Board has may, in its discretion, hold a public meeting or hearing on an applicadetermined that the balance of public interest factors that tion to acquire a bank if a meeting or hearing is necessary or the Board must consider under the standard in section 4(j) appropriate to clarify factual issues related to the application and to provide an opportunity for testimony. 12 C.F.R. 225.16(e). of the BHC Act is consistent with approval of Chase's The Board has carefully considered the requests for a public meetnotice. ing or hearing in light of all the facts of record. In the Board's view, commenters have had ample opportunity to submit their views and, in fact, have submitted written comments that have been carefully con- 45. 12 U.S.C. § 1843(j)(2)(A). sidered by the Board in acting on the proposal. The requests fail to 46. See, e.g., Banc One Corporation, 84 Federal Reserve Bulletin identify disputed issues of fact that are material to the Board's 553 (1998); First Union Corporation, 84 Federal Reserve Bulletin decision and that may be clarified by a public meeting or hearing. 489 (1998). Commenters have provided substantial written comments that have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

90 Federal Reserve Bulletin • February 2001 approval is specifically conditioned on compliance by approval of the Board to establish a representative office in Chase with all the commitments made in connection with the United States. these applications and with the conditions stated or re- Notice of the application, affording interested persons an ferred to in this order. The Board's determination on the opportunity to submit comments, has been published in a nonbanking activities also is subject to all the terms and newspaper of general circulation in New York (The New conditions set forth in Regulation Y, including those in York Post, August 31, 2000). The time for filing comments sections 225.7 and 225.25(c) (12 C.F.R. 225.7 and has expired, and all comments have been considered. 225.25(c)), and to the Board's authority to require such Bank is a newly formed Belgian bank that was created to modification or termination of the activities of a bank operate the Euroclear System (the "System"), a clearance holding company or any of its subsidiaries as the Board and settlement system for international securities. The Sysfinds necessary to ensure compliance with, and to prevent tem is currently operated by the Brussels office of the evasion of, the provisions of the BHC Act and the Board's Morgan Guaranty Trust Company of New York ("MGT") regulations and orders thereunder. For purposes of this on behalf of Euroclear Clearance System pic ("ECS pic"), action, the commitments and conditions relied on by the a United Kingdom company owned by a consortium of 119 Board in reaching its decision are deemed to be conditions financial institutions. ECS pic owns, directly or indirectly, imposed in writing by the Board in connection with its 95 percent of the shares of Bank, and more than 1200 other findings and decision and, as such, may be enforced in participants in the System own the balance. The parent of proceedings under applicable law. MGT, J.R Morgan & Co. Incorporated, entered into an The acquisition of the subsidiary bank of Morgan shall agreement with ECS pic whereby MGT's role as operator not be consummated before the fifteenth calendar day of the System will cease on or about December 31, 2000. following the effective date of this order, and the proposal At that time, the assets and liabilities of MGT's Brussels shall not be consummated later than three months after the office related to the operation of the System will be transeffective date of this order, unless such period is extended ferred to Bank, and Bank will become the System's operafor good cause by the Board or by the Federal Reserve tor. Most MGT employees who currently have duties re- Bank of New York, acting pursuant to delegated authority. lated to the operations of the System will become By order of the Board of Governors, effective Decem- employees of Bank. Bank will not engage in the full range ber 11,2000. of international banking activities, but only in the clearance and settlement of international securities transactions. Bank Voting for this action: Chairman Greenspan and Governors Kelley, also intends to establish representative offices in Tokyo, Meyer, and Gramlich. Absent and not voting: Vice Chairman Fergu- Sao Paolo, Singapore, Hong Kong, and London. son. The proposed representative office will engage in liaison, marketing and support activities, including the solicitation ROBERT DEV. FRIERSON of new clients and the promotion of Bank products and Associate Secretary of the Board services. These are the same functions currently performed by certain employees of MGT's New York office. In acting on an application to establish a representative ORDERS ISSUED UNDER INTERNATIONAL BANKING office, the IBA and Regulation K provide that the Board ACT shall take into account whether the foreign bank engages directly in the business of banking outside the United Euroclear Bank States and has furnished to the Board the information it Brussels, Belgium needs to assess the application adequately. The Board also shall take into account whether the foreign bank and any Order Approving Establishment of a Representative foreign bank parent is subject to comprehensive supervi- Office sion or regulation on a consolidated basis by its home country supervisor.1 The Board may take into account Euroclear Bank ("Bank"), Brussels, Belgium, a foreign bank within the meaning of the International Banking Act ("IBA"), has applied under section 10(a) of the IBA (12 U.S.C. § 3107(a)) to establish a representative office in 1. See 12 U.S.C. § 3107(a)(2); 12 C.F.R. 211.24(d)(2). In assessing New York, New York. The Foreign Bank Supervision this standard, the Board considers, among other factors, the extent to Enhancement Act of 1991 ("FBSEA"), which amended which the home country supervisors: (i) Ensure that the bank has adequate procedures for monitoring the IBA, provides that a foreign bank must obtain the and controlling its activities worldwide; (ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit been carefully considered by the Board, and the requests fail to show reports, or otherwise; why a public meeting or hearing is necessary for the proper presenta- (iii) Obtain information on the dealings with and relationship betion or consideration of commenters' views. For these reasons, and tween the bank and its affiliates, both foreign and domestic; based on all the facts of record, the Board has determined that a public (iv) Receive from the bank financial reports that are consolidated meeting or hearing and further delay in considering the application is on a worldwide basis, or comparable information that permits not required or warranted in this case. Accordingly, the requests are analysis of the bank's financial condition on a worldwide hereby denied. consolidated basis; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 91 additional standards set forth in the IBA and Regula- pliance with applicable U.S. law, as well as controls and tion K.2 The Board previously has stated that the standards procedures for its worldwide operations generally. that apply to the establishment of a branch or agency need With respect to access to information, the Board has not in every case apply to the establishment of a represen- reviewed the restrictions on disclosure in relevant jurisdictative office, because representative offices do not engage tions in which Bank operates and has communicated with in a banking business and cannot take deposits or make relevant government authorities about access to informaloans.3 tion. Bank and ECS pic have committed to make available As noted above, Bank will engage directly in the busi- to the Board such information on the operations of Bank ness of banking outside the United States through its and any affiliate of Bank that the Board deems necessary to banking operations in Belgium. Bank also has provided the determine and enforce compliance with the IBA, the Bank Board with the information necessary to assess the applica- Holding Company Act, and other applicable federal law. tion through submissions that address the relevant issues. To the extent that the provision of such information may be With respect to home country supervision of Bank, the prohibited or impeded by law or otherwise, Bank and ECS Board has considered the following information. The Bel- pic have committed to cooperate with the Board to obtain gian Banking and Finance Commission ("BBFC") and the any necessary consents or waivers that might be required National Bank of Belgium ("NBB") are the primary super- from third parties in connection with disclosure of certain visors of Bank.4 The Board previously has determined, in information. In addition, subject to certain conditions, the connection with applications involving other Belgian BBFC may share information on Bank's operations with banks, that those banks were subject to comprehensive other supervisors, including the Board. In light of these consolidated supervision by the BBFC.5 Although Bank is commitments and other facts of record, and subject to the a de novo institution, and the BBFC has not previously had condition described below, the Board has concluded that primary supervisory authority over the operations of the Bank has provided adequate assurances of access to any System, the BBFC intends to supervise Bank in substan- necessary information the Board may request. tially the same manner as the banks previously reviewed in On the basis of all the facts of record, and subject to the the orders cited above. Based on all the facts of record, the commitments made by Bank, as well as the terms and Board has determined that factors relating to the supervi- conditions set forth in this order, the Board has determined sion of Bank by its home country supervisor are consistent that Bank's application to establish a representative office with approval of the proposed representative office. in New York should be, and hereby is, approved. Should The Board has taken into account the additional stan- any restrictions on access to information on the operations dards set forth in the IBA and in Regulation K.6 The BBFC or activities of Bank or any of its affiliates subsequently has granted Bank approval to establish the proposed office. interfere with the Board's ability to determine and enforce With respect to the financial and managerial resources of compliance by Bank or its affiliates with applicable federal Bank, taking into consideration the record of operations by statutes, the Board may require or recommend termination Bank's predecessor in its home country, Bank's overall of any of Bank's direct or indirect activities in the United financial resources, and its standing with its home country States. Approval of this application also is specifically supervisor, the Board has determined that financial and conditioned on Bank's compliance with the commitments managerial considerations are consistent with approval. In made in connection with this application and with the addition, Bank appears to have the experience and capacity conditions in this order.7 The commitments and conditions to support the proposed office and has established controls referred to above are conditions imposed in writing by the and procedures in the representative office to ensure com- Board in connection with its decision and may be enforced in proceedings against Bank and its affiliates under applicable law. By order of the Board of Governors, effective December 21, 2000. (v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of comprehensive consolidated supervision; no Voting for this action: Chairman Greenspan, Vice Chairman Fergusingle factor is essential and other elements may inform the Board's son, and Governors Meyer and Gramlich. Absent and not voting: determination. Governor Kelley. 2. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2). 3. See 58 Federal Register 6348, 6351 (1993). See also Banco de la ROBERT DEV. FRIERSON Ciudad de Buenos Aires, 85 Federal Reserve Bulletin 647 (1999); Associate Secretary of the Board Agricultural Bank of China, 83 Federal Reserve Bulletin 617 (1997); Citizens National Bank, 79 Federal Reserve Bulletin 805 (1993). 4. The National Bank of Belgium has primary responsibility for oversight of payment and clearing systems in Belgium. The BBFC is the primary banking regulator in Belgium, however, and would have 7. The Board's authority to approve the establishment of the profull supervisory authority over the activities of Bank. The BBFC has posed office parallels the continuing authority of the State of New indicated that it works closely with the NBB and that both entities York to license offices of a foreign bank. The Board's approval of this share information with respect to supervisory matters. application does not supplant the authority of the State of New York 5. See Antwerpse Diamantbank, N.V., 85 Federal Reserve Bulletin or its agent, the New York State Banking Department, to license the 830 (1999); KBC Bank, N.V., 85 Federal Reserve Bulletin 832 (1999). proposed office of Bank in accordance with any terms or conditions 6. See 12 U.S.C. § 3105(d)(3) and (4); 12 C.F.R. 211.24(c)(2). that the New York State Banking Department may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • February 2001 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) Effective Date The Chase Manhattan Corporation, J.P. Morgan & Co. Incorporated, December 11, 2000 New York, New York New York, New York Morgan Guaranty Trust Company of New York, New York, New York J.P. Morgan FSB, West Palm Beach, Florida Compass Bancshares, Inc., FirsTier Corporation, December 13, 2000 Birmingham, Alabama Northglenn, Colorado FirsTier Bank, Northglenn, Colorado Firstate Bank, Kimball, Nebraska Section 4 Applicant(s) Bank(s) Effective Date City National Corporation, Reed, Conner & Birdwell, Inc., December 27, 2000 Beverly Hills, California Los Angeles, California Wells Fargo & Company, Conseco Finance Vendor Services December 28, 2000 San Francisco, California Corporation, Wells Fargo Financial Services, Inc. Paramus, New Jersey Des Moines, Iowa Wells Fargo Financial, Inc., Des Moines, Iowa Wells Fargo & Company, Flagship Credit Corporation, December 6, 2000 San Francisco, California Philadelphia, Pennsylvania Wells Fargo Financial Services, Inc. Des Moines, Iowa Wells Fargo Financial, Inc., Des Moines, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 93 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 1st Financial Bancshares, Inc. Sylvan Agency, Inc., Kansas City December 11, 2000 Shawnee Mission, Kansas Sylvan Grove, Kansas Centerville State Bank, Centerville, Kansas Amana Bancshares, Inc., Amana Bank, Chicago December 22, 2000 Southfield, Michigan Dearborn, Michigan Bank of America Corporation, Bank of America Georgia, National Richmond December 20, 2000 Charlotte, North Carolina Association, N B Holdings Corporation, Atlanta, Georgia Charlotte, North Carolina Capitol Bancorp Ltd., Sunrise Bank of San Diego, Chicago November 30, 2000 Lansing, Michigan San Diego, California Sun Community Bancorp Limited, Phoenix, Arizona Sunrise Capital Corporation, Albuquerque, New Mexico Capital City Bank Group, Inc., First National Bankshares of Atlanta December 11, 2000 Tallahassee, Florida West Point, Inc., West Point, Georgia First National Bank of West Point, West Point, Georgia First Peoples Bankshares, Inc., Pine Mountain, Georgia First Mortgage Company, Pine Mountain, Georgia Central Financial Corporation, TTAC Corp., Kansas City December 22, 2000 Hutchinson, Kansas Manhattan, Kansas Community First National Bank, Manhattan, Kansas Chemical Financial Corporation, Shoreline Financial Corporation, Chicago December 11, 2000 Midland, Michigan Benton Harbor, Michigan Shoreline Bank, Benton Harbor, Michigan Citizens Bancorp of Oviedo, Citizens Bank of Oviedo, Atlanta December 11, 2000 Oviedo, Florida Oviedo, Florida CNB Holdings, Inc., The Citizens National Bank of Cleveland November 24, 2000 McConnelsville, Ohio McConnelsville, McConnelsville, Ohio Cooper Lake Financial Corporation, The Delta Bank, Dallas December 11, 2000 Cooper, Texas Cooper, Texas Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • February 2001 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Eggemeyer Advisory Corp., First Professional Bank, S.A., San Francisco December 21, 2000 Rancho Santa Fe, California Santa Monica, California WJR Corp., Rancho Santa Fe, California Castle Creek Capital, LLC, Rancho Santa Fe, California Castle Creek Capital Partners Fund I, LP, Rancho Santa Fe, California Castle Creek Capital Partners Fund Ha, Rancho Santa Fe, California Castle Creek Capital Partners Fund lib, Rancho Santa Fe, California F&M National Corporation, Community Bankshares of Maryland, Richmond December 20, 2000 Winchester, Virginia Bowie, Maryland First Bancorp of Taylorville, Inc., The First National Bank of Mt. Auburn, Chicago December 1, 2000 Taylorville, Illinois Mt. Auburn, Illinois First Banks, Inc., Millennium Bank, St. Louis December 12, 2000 St. Louis, Missouri San Francisco, California First Banks America, Inc., St. Louis, Missouri First Banks, Inc., The San Francisco Company, St. Louis November 29, 2000 St. Louis, Missouri San Francisco, California First Banks America, Inc., Bank of San Francisco, St. Louis, Missouri San Francisco, California First Community Bancorp, Profesional Bancorp, Inc., San Francisco December 21, 2000 Rancho Santa Fe, California Santa Monica, California First National Bankers Bankshares, Mississippi National Bankers Bank, Atlanta December 4, 2000 Inc., Ridgeland, Mississippi Baton Rouge, Louisiana First National Johnson Bancshares, Wilber Company, Kansas City November 27, 2000 Inc., Wilber, Nebraska Johnson, Nebraska F.N.B. Corporation, Sun Bancorp, Inc., Cleveland November 27, 2000 Hermitage, Pennsylvania Selinsgrove, Pennsylvania Goering Financial Holding BON, Inc., Kansas City December 20, 2000 Company Partnership, L.P., Moundridge, Kansas Moundridge, Kansas Goering Management Company, Goering Financial Holding Company Kansas City December 20, 2000 LLC, Partnership, L.P., Moundridge, Kansas Moundridge, Kansas Heritage Group, Inc., Heritage Bank, N.A., Kansas City December 14, 2000 Aurora, Nebraska Doniphan, Nebraska Innes Street Financial Corporation, Citizens Bank, Inc., Richmond December 7, 2000 Salisbury, North Carolina Salisbury, North Carolina Citizens Bank, FSB, Salisbury, North Carolina Lake Bank Shares, Inc., Employee Lake Bank Shares, Inc., Minneapolis December 27, 2000 Stock Ownership Plan, Emmons, Minnesota Emmons, Minnesota The First State Bank of Emmons, Emmons, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 95 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Lenawee Bancorp, Inc., Bank of Washtenaw, Chicago December 11, 2000 Adrian, Michigan Saline, Michigan Marquette Bancshares, Inc., Commerce Bank of Santa Barbara, Minneapolis December 14, 2000 Minneapolis, Minnesota N.A., Santa Barbara, California Mason National Bancshares, Inc., Mason National Bank, Dallas December 14, 2000 Mason, Texas Mason, Texas Mason National Bancshares of Nevada, Inc., Carson City, Nevada Meader Insurance Agency, Inc., 1st Financial Bancshares, Inc., Kansas City December 11, 2000 Waverly, Kansas Shawnee Mission, Kansas Merchants and Manufacturers CBOC, Inc., Chicago November 17, 2000 Bancorporation, Inc., Oconto Falls, Wisconsin New Berlin, Wisconsin Community Bank of Oconto County, Merchants Merger Corp., Oconto Falls, Wisconsin New Berlin, Wisconsin Mid-Iowa Bancshares Co., Ruthven Investment, Ltd., Chicago November 30, 2000 Algona, Iowa Ruthven, Iowa Mississippi Valley Bancshares, Inc. Southwest Bank of Phoenix, St. Louis December 12, 2000 St. Louis, Missouri Phoenix, Arizona Mountain West Financial Corp., Bankwest Financial, Inc., Minneapolis December 21, 2000 Helena, Montana Kalispell, Montana Nara Bancorp, Inc., Nara Bank, San Francisco December 15, 2000 Los Angeles, California Los Angeles, California North Texas Bancshares, Inc., Park Cities Bank, Dallas November 28, 2000 Dallas, Texas Dallas, Texas North Texas Bancshares of Delaware, Inc., Wilmington, Delaware Northwest Mutual Holding Northwest Community Bank, Boston December 15, 2000 Company, Winsted, Connecticut Winsted, Connecticut Litchfield Bancorp, Litchfield Mutual Holding Litchfield, Connecticut Company, Litchfield, Connecticut Northwest Suburban Bancorp, Inc., Village Bank and Trust, Chicago December 14, 2000 Mount Prospect, Illinois North Barrington, Illinois OSB Financial Services, Inc., Orange Savings Bank, SSB, Dallas November 24, 2000 Orange, Texas Orange, Texas OSB Delaware Financial Services, Inc., Dover, Delaware PAB Bankshares, Inc., FCB Interim Bank, Atlanta December 8, 2000 Valdosta, Georgia Ocala, Florida Friendship Community Bank, Ocala, Florida Pacifica Bancorp, Inc., Pacifica Bank, San Francisco November 21, 2000 Bellevue, Washington Bellevue, Washington Seacoast Financial Services Home Port Bancorp, Inc., Boston December 11, 2000 Corporation, Nantucket, Massachusetts New Bedford, Massachusetts Nantucket Bank, Nantucket, Massachusetts Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • February 2001 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Sooner Southwest Bankshares, Inc., The First National Bancorporation of Kansas City December 14, 2000 Tulsa, Oklahoma Heavener, Oklahoma, Inc., Heavener, Oklahoma Southern Community Bancorp, Southern Community Bank of Atlanta November 27, 2000 Orlando, Florida Southwest Florida, Bonita Springs, Florida Southwest Bancorporation of Texas, Citizens Bankers, Inc., Dallas November 28, 2000 Inc., Bay town, Texas Houston, Texas Citizens Bankers of Delaware, Inc., Southwest Holding Delaware, Inc., Wilmington, Delaware Wilmington, Delaware Spectrum Bancorporation, Inc., Great Western Securities, Inc., Chicago November 27, 2000 Omaha, Nebraska Omaha, Nebraska TTAC Corp., Community First National Bank, Kansas City November 27, 2000 Manhattan, Kansas Manhattan, Kansas Whitney Holding Corporation, American Bank, Atlanta November 29, 2000 New Orleans, Louisiana Houston, Texas Yankee Ridge, Inc., State Bank of Allerton, Chicago November 22, 2000 Allerton, Illinois Allerton, Illinois Philo Exchange Bank, Philo, Illinois Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Bank Hapoalim B.M., Signature Securities Group Corporation, New York December 20, 2000 Tel Aviv, Israel New York, New York Zohar KSshemesh Le'Hashkaot Ltd., Tel Aviv, Israel Hapoalim U.S.A. Holding Company, Inc., New York, New York Arison Holdings (1998) Ltd., Tel Aviv, Israel Israel Salt Industries Ltd., Atlit, Israel Bank of Montreal, Moneris Solutions Corporation, Chicago November 15, 2000 Toronto, Ontario, Canada Buffalo Grove, Illinois Moneris Solutions, Inc., Buffalo Grove, Illinois Bayerische Hypo-und Vereinsbank Bank Austria AG, New York December 28, 2000 AG, Vienna, Austria Munich, Germany Chesapeake Financial Shares, Inc., Chesapeake Trust Company, Richmond December 21, 2000 Kilmarnock, Virginia Kilmarnock, Virginia Citigroup, Inc., Geneva Group, Inc., New York December 22, 2000 New York, New York Irvine, California Covenant Bancgroup, Inc., To engage de novo in securities Atlanta November 30, 2000 Leeds, Alabama brokerage services Dresdner Bank Aktiengesellschaft, Wasserstein Perella Group, Inc., New York December 11, 2000 Frankfurt, Germany New York, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 97 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Fifth Third Bancorp, Resource Management Inc., Cleveland December 8, 2000 Cincinnati, Ohio Cleveland, Ohio Irwin Financial Corporation, Irwin Union Bank, F.S.B., Chicago December 1, 2000 Columbus, Indiana Louisville, Kentucky Manning Financial Services, Inc., To engage de novo in extending credit Chicago December 20, 2000 Manning, Iowa and servicing loans Mizuho Holdings, Inc., Dealerconx, Inc., New York December 8, 2000 Tokyo, Japan Livingston, New Jersey The Dai-Ichi Kangyo Bank, The CIT Group, Inc., Limited, New York, New York Tokyo, Japan National Australia Bank Limited, Charles F. Curry Company, Chicago December 27, 2000 Melbourne, Australia Kansas City, Missouri HomeSide Lending, Inc., Jacksonville, Florida SSB Management L.L.C., Wilber Company, Kansas City November 27, 2000 Wilber, Nebraska Wilber, Nebraska Saline State Insurance Agency, L.L.C. Wilber, Nebraska Sturm Financial Group, Inc., Community Financial Services, Inc., Kansas City December 18, 2000 Denver, Colorado Denver, Colorado Westdeutsche Landesbank Gulfstream Global Investors, Ltd., New York December 8, 2000 Girozentrale, Addison, Texas Dusseldolf, Germany Wilber Company, Saline State Insurance Agency, L.L.C. Kansas City November 27, 2000 Wilber, Nebraska Wilber, Nebraska APPLICATIONS APPROVED UNDER BANK MERGER ACT By the Secretary of the Board Recent applications have approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Applicant(s) Bank(s) Effective Date The Chase Manhattan Bank, Morgan Guaranty Trust Company of December 11, 2000 New York, New York New York, New York, New York Compass Bank, FirsTier Bank, December 13, 2000 Birmingham, Alabama Northglenn, Colorado Firstate Bank, Kimball, Nebraska Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 Federal Reserve Bulletin • February 2001 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 Adams Bank & Trust, Bank of Colorado-Western Slope, Kansas City November 29, 2000 Ogallala, Nebraska Grand Junction, Colorado Bank of Colorado, Bank of Colorado-Western Slope, Kansas City November 28, 2000 Fort Lupton, Colorado Grand Junction, Colorado Bank of Pontiac, Odell State Bank, Chicago December 27, 2000 Pontiac, Illinois Odell, Illinois Bank of Tazewell County, First Union National Bank, Richmond December 21, 2000 Tazewell, Virginia Charlotte, North Carolina Bank of Washtenaw, Bank of Lenawee, Chicago December 11, 2000 Saline, Wisconsin Adrian, Michigan Capital City Bank, First National Bank of West Point, Atlanta December 11, 2000 Tallahassee, Florida West Point, Georgia Capital City Bank, First Union National Bank, Atlanta December 1, 2000 Tallahassee, Florida Charlotte, North Carolina Centennial Bank of the West, Farmers Bank, Kansas City December 5, 2000 Eaton, Colorado Ault, Colorado F&M Bank-Maryland, Inc., Community Bank of Maryland, Richmond December 20, 2000 Bethesda, Maryland Bowie, Maryland Friendship Community Bank, FCB Interim Bank, Atlanta December 8, 2000 Ocala, Florida Ocala, Florida Harris Trust Bank of Arizona, Century Bank, Chicago November 27, 2000 Scottsdale, Arizona Scottsdale, Arizona PNB Financial Bank, City National Bank, Dallas December 11, 2000 Lubbock, Texas Austin, Texas Sylvan State Bank, Centerville State Bank, Kansas City December 11, 2000 Sylvan Grove, Kansas Centerville, Kansas Kendall State Bank, Valley Falls, Kansas PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the repurchase of privately-owned shares of the Bank for Inter- Federal Reserve Banks in which the Board of Governors is not national Settlements. named a party. Barnes v. Reno, No. 1:00CV02900 (D.D.C., filed December 4, 2000). Civil rights action. Dime Bancorp, Inc. v. Board of Governors, No. 00-4249 (2d El Bey v. United States, No. 00-5293 (D.C. Cir., filed Cir., filed December 11, 2000). Petition for review of a August 31, 2000). Appeal from district court order dismiss- Board order dated September 27, 2000, approving the appli- ing pro se action as lacking arguable basis in law. The cations of North Fork Corporation, Inc., Melville, government filed a motion for summary affirmance on Octo- New York, to acquire control of Dime Bancorp, Inc. and to ber 26, 2000. thereby acquire its wholly owned subsidiary, The Dime Trans Union LLC v. Board of Governors, et al„ No. 00-CV- Savings Bank of New York, FSB, both of New York, 2087(ESH) (D.D.C., filed August 30, 2000). Action under New York. Administrative Procedure Act challenging a portion of inter- Nelson v. Greenspan, No. 99-215(EGS) (D.D.C., amended agency rule regarding Privacy of Consumer Financial Inforcomplaint filed December 8, 2000). Employment discrimi- mation. nation action. Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed Howe v. Bank for International Settlements, No. 00CV12485 August 7, 2000). Appeal of district court dismissal of action RCL (D. Mass., filed December 7, 2000). Action seeking under Federal Tort Claims Act alleging violation of bank damages in connection with gold market activities and the supervision requirements. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 99 Individual Reference Services Group, Inc., v. Board of Gover- money penalty assessment by the Board. On May 26, 1998, nors, et al, No. 00-CV-1828 (ESH) (D.D.C., filed July 28, the court issued a preliminary injunction 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 Board of Governors v. Interfinancial Services, Ltd., No. 00- property. 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 December 1, 2000, the court dismissed the case on appel- and a statutory surcharge in connection with a civil money lant's motion. penalty assessed by the Board. On February 24, 1999, the Bettersworth v. Board of Governors, No. 00-50262 (5th Cir., court granted the Board's appeal and denied the crossfiled April 14, 2000). Appeal of district court's dismissal of appeal, and remanded the matter to the district court for Privacy Act claims. determination of prejudgment interest due to the Board. Hunter v. Board of Governors, No. OO-CV-735 (ESH) (D.D.C., filed April 5, 2000). Action claiming retaliation for whistleblowing activity. The case was dismissed by stipulation on FINAL ENFORCEMENT DECISION ISSUED BY THE December 15, 2000. BOARD OF GOVERNORS Bennett v. Federal Bureau of Investigation, et al., No. H-00- 0707 (S.D. Texas, filed March 1, 2000). Action alleging In the Matter of a Notice to Board interference with a private investment. On Prohibit Further Participation October 20, 2000, the court dismissed the action. Against Kaye G. Hill, Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Former Employee, (D.D.C., filed February 18, 2000). Action challenging the funding of the retirement plan for certain Board employees. Barnett Bank, N.A. Folstad v. Board of Governors, No. 00-1056 (6th Cir., filed Jacksonville, Florida January 14, 2000). Appeal of district court order granting summary judgment to the Board in a Freedom of Informa- Docket No. 0CC-AA-EC-00-24 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 This is an administrative proceeding pursuant to the Fed- December 29, 1999). Challenge to income taxation and eral Deposit Insurance Act ("FDI Act") in which the Federal Reserve notes. On May 1, 2000, the court granted Office of the Comptroller of the Currency of the United the government's motion to dismiss the action. States of America ("OCC") seeks to prohibit the Respon- Guerrero v. United States, No. CV-F-99-6771 (OWW) (E.D. dent, Kaye G. Hill ("Respondent"), from further participa- Cal., filed November 29, 1999). Prisoner suit. tion in the affairs of any financial institution because of her Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed conduct as an employee of Barnett Bank, N.A., Jackson- August 3, 1999). Employment discrimination action. ville, Florida (the "Bank"). Under the FDI Act, the OCC Sheriff Gerry Ali v. U.S. State Department, No. 99-7438 (C.D. may initiate a prohibition proceeding against a former Cal., filed July 21, 1999). Action relating to impounded employee of a national bank, but the Board must make the bank drafts. On December 3, 1999, the court stayed the final determination whether to issue an order of prohibiaction indefinitely. tion. Kerr v. Department of the Treasury, No. 99-16263 (9th Cir., Upon review of the administrative record, the Board filed April 28, 1999). Appeal of dismissal of action chal- issues this Final Decision adopting the Recommended Delenging income taxation and Federal Reserve notes. On cision ("RD") of Administrative Law Judge Ann Z. Cook July 13, 2000, the court of appeals affirmed the dismissal. (the "ALJ"), and orders the issuance of the attached Order Fraternal Order of Police v. Board of Governors, No. of Prohibition. 1:98CV03116 (WBB)(D.D.C., filed December 22, 1998). Declaratory judgment action challenging Board labor prac- /. Statement of the Case tices. On February 26, 1999, the Board filed a motion to dismiss the action. A. Statutory and Regulatory Framework Board of Governors v. Carrasco, No. 98 Civ. 3474 (LAK) (S.D.N.Y., filed May 15, 1998). Action to freeze assets of Under the FDI Act and the Board's regulations, the ALJ is individual pending administrative adjudication of civil responsible for conducting proceedings on a notice of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 Federal Reserve Bulletin • February 2001 charges. 12 U.S.C. § 1818(e)(4). The ALJ issues a recom- failure to file a timely answer "constitutes a waiver of [a mended decision that is referred to the deciding agency respondent's] right to appear and contest the allegations in together with any exceptions to those recommendations the Notice." 12 C.F.R. 19.19(c). If the ALJ finds that no filed by the parties. The Board makes the final findings of good cause has been shown for the failure to file, the judge fact, conclusions of law, and determination whether to "shall file ... a recommended decision containing the issue an order of prohibition in the case of prohibition findings and the relief sought in the notice." Id. An order orders sought by the OCC. Id.; 12 C.F.R. 263.40. based on a failure to file a timely answer is deemed to be The FDI Act sets forth the substantive basis upon which issued by consent. Id. a federal banking agency may issue against a bank official In this case, Respondent failed to file an answer despite or employee an order of prohibition from further participa- notice to her of the consequences of such failure, and also tion in banking. To issue such an order, the Board must failed to respond to the ALJ's Order to show cause. Remake each of three findings: spondent's failure to file an answer constitutes a default. (1) That the respondent engaged in identified misconduct, Respondent's default requires the Board to consider the including a violation of law or regulation, an unsafe or allegations in the Notice as uncontested. The Notice alunsound practice or a breach of fiduciary duty; leges, and the Board finds, that Respondent made an unau- (2) That the conduct had a specified effect, including thorized withdrawal of $3000 from one customer account, financial loss to the institution or gain to the respon- and closed another, reopening it the same day with $2000 dent; and less in the reopened account. This conduct meets all the (3) That the respondent's conduct involved either personal criteria for entry of an order of prohibition under 12 U.S.C. dishonesty or a willful or continuing disregard for the § 1818(e). It is a violation of law and an unsafe or unsound safety or soundness of the institution. 12 U.S.C. practice for a bank employee to embezzle customer funds. § 1818(e)(l)(A)-(C). Respondent's actions caused gain to herself as well as loss to the Bank. Finally, Respondent's actions involved per- An enforcement proceeding is initiated by the filing of a sonal dishonesty in taking property not her own. The notice of charges which is served on the respondent. Under requirements for an order of prohibition having been met, the OCC's and the Board's regulations, the respondent the Board has determined that such an order will issue. must file an answer within 20 days of service of the notice. 12 C.F.R. 19.19(a) and 263.19(a). Failure to file an answer Conclusion constitutes a waiver of the respondent's right to contest the allegations in the notice, and a final order may be entered For these reasons, the Board orders the issuance of the unless good cause is shown for failure to file a timely attached Order of Prohibition. answer. 12 C.F.R. 19.19(c)(1) and 263.19(c)(1). By Order of the Board of Governors, this 13th day of December, 2000. B. Procedural History Board of Governors of the On April 6, 2000, the OCC issued a Notice initiating an Federal Reserve System enforcement action that sought an order of prohibition due to Respondent's actions in taking $5000 from two cus- JENNIFER J. JOHNSON tomer accounts at the Bank. The Notice directed Respon- Secretary of the Board dent to file an answer within 20 days, and warned that failure to do so would constitute a waiver of her right to Order of Prohibition appear and contest the allegations. The record shows that the Respondent received a copy of the Notice by certified WHEREAS, pursuant to section 8(e) of the Federal Demail. Nonetheless, Respondent filed to file an answer posit Insurance Act, as amended, (the "Act") (12 U.S.C. within the 20-day period. Consequently, on May 22, 2000, § 1818(e)), the Board of Governors of the Federal Reserve the ALJ issued an Order directing Respondent to show System ("the Board") is of the opinion, for the reasons set cause for her failure to file an answer. Respondent did not forth in the accompanying Final Decision, that a final respond to the Order. Order of Prohibition should issue against KAYE G. HILL On November 30, 2000, the ALJ issued a Recommended ("HILL"), Decision finding Respondent in default and adopting as her NOW, THEREFORE, IT IS HEREBY ORDERED, purfactual findings the allegations in the Notice. On the basis suant to section 8(e) of the Federal Deposit Insurance Act, of those findings, the ALJ recommended that an order of as amended, (12 U.S.C. § 1818(e)), that: prohibition be entered against the Respondent. 1. In the absence of prior written approval by the Board, and by any other Federal financial institution regula- II. Discussion tory agency where necessary pursuant to section 8(e)(7)(B) of the Act (12 U.S.C. § 1818(e)(7)(B)), The OCC's Rules of Practice and Procedure set forth the Hill is hereby prohibited: requirements of an answer and the consequences of a (a) From participating in the conduct of the affairs of failure to file an answer to a Notice. Under the Rules, any bank holding company, any insured depository Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 101 institution or any other institution specified in sub- affiliated party of the Bankers Trust Company, New York, section 8(e)(7)(A) of the Act (12 U.S.C. New York. § 1818(e)(7)(A)); (b) From soliciting, procuring, transferring, attempting to transfer, voting or attempting to vote any proxy, DETERMINATION NOT TO CONDUCT A TERMINATION consent, or authorization with respect to any voting PROCEEDING rights in any institution described in subsection 8(e)(7)(A) of the Act (12 U.S.C. § 1818(e)(7)(A)); Bancomer, S.A. (c) From violating any voting agreement previously Mexico City, Mexico approved by the appropriate Federal banking agency; or The Federal Reserve Board announced on December 12, (d) From voting for a director, or from serving or 2000, pursuant to section 7(i) of the International Banking acting as an institution-affiliated party as defined in Act ("IBA"), the Board of Governors has determined that section 3(u) of the Act, (12 U.S.C. § 1813(u)), it is not necessary to conduct a proceeding to determine if such as an officer, director, or employee. the United States operations of Bancomer, S.A., Mexico 2. This Order, and each provision hereof, is and shall City, Mexico ("Bancomer"), and Banca Serfin, S.A., Loremain fully effective and enforceable until expressly mas de Santa Fe, Mexico ("Serfin"), foreign banks within stayed, modified, terminated or suspended in writing the meaning of the IBA, should be terminated as a result of by the Board. Bancomer and Serfin each having been found guilty of a money laundering offense in the United States. This Order shall become effective at the expiration of thirty days after service is made. By Order of the Board of Governors, this 13th day of WRITTEN AGREEMENTS APPROVED BY FEDERAL December, 2000. RESERVE BANKS Board of Governors of the People's Bancshares, Inc. Federal Reserve System New Bedford, Massachusetts The Federal Reserve Board announced on December 12, JENNIFER J. JOHNSON Secretary of the Board 2000, the execution of a Written Agreement by and between People's Bancshares, Inc., New Bedford, Massachusetts, and the Federal Reserve Bank of Boston. FINAL ENFORCEMENT ORDERS ISSUED BY THE Caisse Nationale de Credit Agricole BOARD OF GOVERNORS Paris, France Bruce Jeffrey Kingdon The Federal Reserve Board announced on December 1, New York, New York 2000, the execution of a Written Agreement by and among Caisse Nationale de Credit Agricole, Paris, France; Credit The Federal Reserve Board announced on December 12, Agricole Indosuez, Paris, France; Credit Agricole In- 2000, the issuance of an Order of Prohibition against Bruce dosuez, New York Branch, New York, New York; the Jeffrey Kingdon, a former partner, operating committee Federal Reserve Bank of New York; and the New York member, managing director, employee, and institution- State Banking Department. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

60 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued All Gross public debt of U.S. Treasury— DOMESTIC FINANCIAL STATISTICS Types and ownership A28 U.S. government securities Money Stock and Bank Credit dealers—Transactions A4 Reserves, money stock, and debt measures A29 U.S. government securities dealers— A5 Reserves of depository institutions and Reserve Bank Positions and financing credit A30 Federal and federally sponsored credit A6 Reserves and borrowings—Depository agencies—Debt outstanding institutions Securities Markets and Corporate Finance Policy Instruments A31 New security issues—Tax-exempt state and local A7 Federal Reserve Bank interest rates governments and corporations A8 Reserve requirements of depository institutions A32 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution Federal Reserve Banks A3 2 Domestic finance companies—Assets and liabilities A3 3 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate Monetary and Credit Aggregates A34 Mortgage markets—New homes A12 Aggregate reserves of depository institutions A3 5 Mortgage debt outstanding and monetary base A13 Money stock and debt measures Consumer Credit A3 6 Total outstanding Commercial Banking Institutions— A3 6 Terms Assets and Liabilities A15 All commercial banks in the United States Flow of Funds A16 Domestically chartered commercial banks A17 Large domestically chartered commercial banks A37 Funds raised in U.S. credit markets A19 Small domestically chartered commercial banks A39 Summary of financial transactions A20 Foreign-related institutions A40 Summary of credit market debt outstanding A41 Summary of financial assets and liabilities Financial Markets A22 Commercial paper and bankers dollar DOMESTIC NONFINANCIAL STATISTICS acceptances outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A42 Nonfinancial business activity A24 Stock market—Selected statistics A42 Labor force, employment, and unemployment A43 Output, capacity, and capacity utilization A44 Industrial production—Indexes and gross value Federal Finance A46 Housing and construction A25 Federal fiscal and financing operations A47 Consumer and producer prices A26 US. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

61 Federal Reserve Bulletin • February 2001 INTERNATIONAL STATISTICS Securities Holdings and Transactions A60 Foreign transactions in securities Summary Statistics A61 Marketable U.S. Treasury bonds and A50 U.S. international transactions notes—Foreign transactions A51 U.S. foreign trade A51 U.S. reserve assets Interest and Exchange Rates A51 Foreign official assets held at Federal Reserve A62 Foreign exchange rates Banks A52 Selected U.S. liabilities to foreign official A63 GUIDE TO STATISTICAL RELEASES AND institutions SPECIAL TABLES Reported by Banks in the United States SPECIAL TABLES A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A64 Assets and liabilities of commercial banks, A55 Banks' own claims on foreigners September 30, 2000 A56 Banks' own and domestic customers' claims on A66 Terms of lending at commercial banks, foreigners November 2000 A56 Banks' own claims on unaffiliated foreigners A72 Assets and liabilities of U.S. branches and A57 Claims on foreign countries—Combined agencies of foreign banks, September 30, 2000 domestic offices and foreign branches A76 Pro forma balance sheet and income statements for priced service operations, September 30, 2000 Reported by Nonbanking Business Enterprises in the United States A78 INDEX TO STATISTICAL TABLES A58 Liabilities to unaffiliated foreigners A59 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected G-7 Group of Seven e Estimated G-10 Group of Ten n.a. Not available GDP Gross domestic product n.e.c. Not elsewhere classified GNMA Government National Mortgage Association P Preliminary HUD Department of Housing and Urban r Revised (Notation appears on column heading Development when about half of the figures in that column IMF International Monetary Fund are changed.) IOs Interest only, stripped, mortgage-back securities Amounts insignificant in terms of the last decimal IPCs Individuals, partnerships, and corporations place shown in the table (for example, less than IRA Individual retirement account 500,000 when the smallest unit given is millions) MMDA Money market deposit account 0 Calculated to be zero MSA Metropolitan statistical area Cell not applicable NOW Negotiable order of withdrawal ABS Asset-backed security 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 FAMC Federal Agricultural Mortgage Corporation REMICs Real estate mortgage investment conduits FFB Federal Financing Bank RHS Rural Housing Service FHA Federal Housing Administration RP Repurchase agreement FHLBB Federal Home Loan Bank Board RTC Resolution Trust Corporation FHLMC Federal Home Loan Mortgage Corporation SCO Securitized credit obligation FmHA Farmers Home Administration SDR Special drawing right FNMA Federal National Mortgage Association SIC Standard Industrial Classification FSA Farm Service Agency VA Department of Veterans Affairs FSLIC Federal Savings and Loan Insurance Corporation GENERAL INFORMATION In many of the tables, components do not sum to totals because of include not fully guaranteed issues) as well as direct obligarounding. tions of the Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Nonfinancial Statistics • February 2001 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 1999 2000 2000 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Q1 Q2 Q3r Julyr Aug.1" Sept.1" Oct.r Nov. Reserves of depository institutions2 1 Total -3.4 1.8 -9.5 -7.1 9.0 -9.4 -2.5 -9.7 -2.9 2 Required -4.5 .1 -5.9 -7.4 9.1 -8.0 -5.3 -10.8 -5.2 3 Nonborrowed -3.0 2.4 -11.1 -8.8 6.4 -9.8 .6 -8.0 1.2 4 Monetary base3 20.4 4.3 -3.2 2.6 3.7 .6 3.2 3.5 -1.9 Concepts of money and debt4 5 Ml 4.8 .0 -1.0r -2.7 .2 -3.7 -5.2 4.6 -10.7 6 M2 5.2r 6.3 6.5r 4.8 3.6 7.6 9.0 4.6 2.7 7 M3 10.6r 11.3 8.6 8.3 8.8 9.9 8.8 4.0 3.2 8 Debt 6.3 5.6 6.2 4.7 4.3 4.0 5.0 2.7 n.a. Nontransaction components y In M25 5.4r 8.3 8.8 7.0 4.6 11.0 13.2 4.6 6.6 10 In M3 only6 25.0r 24.3 13.8r 17.1 21.4 15.3 8.2 2.6 4.4 Time and savings deposits Commercial banks n Savings, including MMDAs 4.2 3.1' 8.1 10.7 10.4 14.8 22.3 1.5 10.5 12 Small time7 6.9r 9.3 13.7 10.9 9.1 9.9 4.2 1.4 5.9 13 Large time8'9 38.6r 22.0r 17.31 9.9 11.2 17.6 -18.1 -9.3 13.9 Thrift institutions 14 Savings, including MMDAs -3.3 -1.7 2.0r 2.0 -1.3 5.8 2.6 .5 -2.1 15 Small time7 5.1 7.2 3.8r 11.6 12.4 15.8 8.9 8.5 8.8 16 Large time8 6.0 18.5r — .& 16.7 22.6 20.9 6.1 21.7 20.1 Money market mutual funds 17 Retail 11.0r 20.8r 11.7 -.6 -7.3 6.8 13.5 12.4 5.1 18 Institution-only 22.4r 23.7r 13.9r 32.9 51.3 27.2 32.3 6.6 U.l Repurchase agreements and eurodollars 19 Repurchase agreements10 19.5 22.5 10.8 7.3 5.2 -17.9 -3.6 .0 -25.2 20 Eurodollars'0 10.0 41.1 15.4 4.8 -19.8 24.7 33.1 22.3 -6.7 Debt components4 21 Federal -4.4 -4.8 -7.5 -7.2 -3.7 -7.3 -4.8 -10.0 n.a. 22 Nonfederal 9.2r 8.4 9.7 7.6 6.3 6.7 7.4 5.7 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with and Canada. Excludes amounts held by depository institutions, the U.S. government, money regulatory changes in reserve requirements. (See also table 1.20.) market funds, and foreign banks and official institutions. Seasonally adjusted M3 is calculated 3. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally by summing large time deposits, institutional money fund balances, RP liabilities, adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency and eurodollars, each seasonally adjusted separately, and adding this result to seasonally component of the money stock, plus (3) (for all quarterly reporters on the "Report of adjusted M2. Transaction Accounts, Other Deposits and Vault Cash" and for all weekly reporters whose Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference sectors—the federal sector (U.S. government, not including government-sponsored enterbetween current vault cash and the amount applied to satisfy current reserve requirements. prises or federally related mortgage pools) and the nonfederal sectors (state and local 4. Composition of the money stock measures and debt is as follows: governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, commercial banks other than those owed to depository institutions, the U.S. government, and which are derived from the Federal Reserve Board's flow of funds accounts, are breakforeign banks and official institutions, less cash items in the process of collection and Federal adjusted (that is, discontinuities in the data have been smoothed into the series) and Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of month-averaged (that is, the data have been derived by averaging adjacent month-end levels). withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, 5. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail credit union share draft accounts, and demand deposits at thrift institutions. Seasonally money fund balances, each seasonally adjusted separately. adjusted Ml is computed by summing currency, travelers checks, demand deposits, and 6. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities OCDs, each seasonally adjusted separately. (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and M2: Ml plus (1) savings (including MMDAs), (2) small-denomination time deposits (time term) of U.S. addressees, each seasonally adjusted separately. deposits—including retail RPs—in amounts of less than $100,000), and (3) balances in retail 7. Small time deposits—including retail RPs—are those issued in amounts of less than money market mutual funds. Excludes individual retirement accounts (IRAs) and Keogh $100,000. All IRA and Keogh account balances at commercial banks and thrift institutions balances at depository institutions and money market funds. Seasonally adjusted M2 is are subtracted from small time deposits. calculated by summing savings deposits, small-denomination time deposits, and retail money 8. Large time deposits are those issued in amounts of $100,000 or more, excluding those fund balances, each seasonally adjusted separately, and adding this result to seasonally booked at international banking facilities. adjusted Ml. 9. Large time deposits at commercial banks less those held by money market funds, M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more), (2) depository institutions, the U.S. government, and foreign banks and official institutions. balances in institutional money funds, (3) RP liabilities (overnight and term) issued by all 10. Includes both overnight and term. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Money Stock and Bank Credit A5 . 11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures 2000 2000 Sept. Oct. Nov. Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 561,086 561,406 568,061 561,883 559,392 563,827 562,324 566,709 568,001 573,552 U.S. government securities" 2 Bought outright—System account' 510,925 510,713 512,368 509,485 510,464 510,299 510,724 512,336 513,025 513,689 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 133 130 130 130 130 130 130 130 130 130 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 14,427 12,875 19,549 14,330 11,689 16,005 14,558 17,427 19,618 24,720 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 52 120 121 299 175 18 13 38 416 48 9 Seasonal credit 424 298 157 301 277 240 175 155 148 148 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 776 1,192 963 1,181 267 553 1,145 1,071 952 650 13 Other Federal Reserve assets 34,349 36,078 34,774 36,157 36,391 36,582 35,579 35,552 33,712 34,166 14 Gold stock 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 3,667 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 16 Treasury currency outstanding 30,687 30,975 31,128 30,972 31,033 31,093 31,107 31,121 31,135 31,149 ABSORBING RESERVE FUNDS 17 Currency in circulation . . . . 570,465 571,604 575,849 572,442 570,968 571,054 572,602 574,058 576,375 580,283 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 170 248 289 256 287 286 271 274 289 315 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 6,695 5,338 5,093 5,170 5,278 5,171 5,073 5,279 5,175 4,940 21 Foreign 84 95 86 108 91 81 96 79 92 74 22 Service-related balances and adjustments . 6,703 6,733 6,767 6,614 6,697r 6,829 6,776 6,947 6,600 6,758 23 Other 227 251 234 250 241 256 257 200 238 229 24 Other Federal Reserve liabilities and capital 15,260 15,717 17,529 15,427 16,066 16,562 16,865 17,528 17,755 18,027 25 Reserve balances with Federal Reserve Banks 6,882 6,640r 7,589 6,834 5,042r 8,926 5,736 7,709 6,859 8,320 End-of-month figures Wednesday figures Sept. Oct. Nov. Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 565,382 566,215 575,908 565,656 559,965 571,828 564,903 570,798 573,538 574,811 U.S. government securities" 2 Bought outright—System account' 511,413 508,961 512,327 510,168 511,038 510,302 514,015 511,748 513,813 514,308 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 130 130 130 130 130 130 130 130 130 130 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty 17,320 19,440 27,270 18,843 9,995 24,940 11,975 25,795 24,615 25,630 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 4 29 6 12 13 3 1 251 1 286 9 Seasonal credit 368 219 130 290 270 201 159 156 145 152 10 Special Liquidity Facility credit 0 0 0 0 0 0 0 0 0 0 11 Extended credit 0 0 0 0 0 0 0 0 0 0 12 Float 372 1,438 2,096 -143 1,903 42 2,773 95 874 -136 13 Other Federal Reserve assets 35,774 35,999 33,949 36,355 36,616 36,211 35,850 32,622 33,959 34,440 14 Gold stock 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 15 Special drawing rights certificate account 3,200 3,200 3.200 3,200 3,200 3,200 3,200 3,200 3,200 3,200 16 Treasury currency outstanding 30,811 31,093 31,163 30,972 31,033 31,093 31,107 31,121 31,135 31,149 ABSORBING RESERVE FUNDS 17 Currency in circulation • . . . 568,612 572,397 579,545 572,499 571,775 572,693 574,396 575,739 580,111 580,871 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 184 289 344 289 276 271 272 285 311 344 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 8,459 5,360 4,382 5,149 4,207 5,149 5,459 4,850 4,413 5,056 21 Foreign 139 115 104 87 71 75 72 90 71 73 22 Service-related balances and adjustments . 6,894 6,829r 6,606 6,614 6,697r 6,829 6,776 6,947 6,600 6,758 23 Other 177 245 276 269 241 278 229 266 233 227 24 Other Federal Reserve liabilities and capital 15,243 16,416 18,199 15,652 16,254 16,449 17,053 17,318 17,669 17,913 25 Reserve balances with Federal Reserve Banks 10,731 9,903 11,861 10,315 5,722r 15,423 5,998 10,670 9,511 8,963 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float. under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic NonfinancialS tatistics • February 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. May June July Aug. Sept. Oct/ Nov. 1 Reserve balances with Reserve Banks2 10,664 9,026 5,263 7,661 6,460 6,582 6,875 6,829 6,782 7,157 2 Total vault cash3 44,742 44,294 60,619r 44,643 44,560 45,473r 45,319r 44,807r 45,178 44,544 3 Applied vault cash4 37,255 36,183 36,392 33,898 32,757 33,086 32,611 32,429 32,072 31,635 4 Surplus vault cash5 7,486 8,111 24,227r 10,745 11,802 12,387r 12,708r 12,378r 13,105 12,909 5 Total reserves6 47,919 45,209 41,655 41,558 39,217 39,668 39,486 39,257 38,854 38,792 6 Required reserves 46,235 43,695 40,348 40,616 38,153 38,600 38,471 38,155 37,725 37,590 7 Excess reserve balances at Reserve Banks7 1,685 1,514 1,307 943 1,064 1,068 1,014 1,102 1,129 1,202 8 Total borrowing at Reserve Banks 324 117 320 362 479 570 579 477 418 283 9 Adjustment 245 101 179 86 90 60 25 50 119 124 10 Seasonal 79 15 67 276 389 510 554 427 299 159 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 Aug. 9 Aug. 23 Sept. 6 Sept. 20 Oct. 4 Oct. 18 Nov. 1' Nov. 15 Nov. 29 Dec. 13 1 Reserve balances with Reserve Banks2 7,267 6,603 6,911 6,578 7,131 6,502 6,976 6,709 7,621 7,142 2 Total vault cash3 46,287r 45,395' 44,097r 44,823r 45,210' 45,778' 44,521 44,631 44,537 43,450 3 Applied vault cash4 33,638 32,195 32,184 32,077 33,068 31,601 32,274 31,056 32,262 30,319 4 Surplus vault cash5 12,649r 13,201r 11,913r 12,746' 12,142' 14,177' 12,247 13,575 12,275 13,131 5 Total reserves6 40,904 38,797 39,095 38,655 40,198 38,103 39,250 37,765 39,883 37,461 6 Required reserves 39,802 37,818 38,118 37,612 38,938 37,073 38,056 36,762 38,477 36,317 7 Excess reserve balances at Reserve Banks7 1,102 979 977 1,043 1,260 1,030 1,194 1,003 1,406 1,144 8 Total borrowing at Reserve Banks 581 564 604 473 409 480 355 190 380 159 9 Adjustment 27 12 45 70 26 167 97 25 232 37 10 Seasonal 555 552 559 403 383 313 259 165 148 123 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 A 7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit' Extended credit3 FFeeddeerraall RReesseerrvvee Bank On On On 1/5/01 Effective date Previous rate 1/5/01 Effective date Previous rate 1/5/01 Effective date Previous rate Boston 5.50 1/4/01 6.00 6.45 12/28/00 6.55 6.95 12/28/00 7.05 New York 1/4/01 5.75 Philadelphia 1/4/01 6.00 Cleveland 1/4/01 5.75 Richmond 1/4/01 6.00 Atlanta 1/4/01 5.75 Chicago 1/4/01 6.00 St. Louis 1/5/01 5.75 Minneapolis 1/4/01 6.00 Kansas City 1/4/01 5.75 Dallas 1/4/01 5.75 San Francisco .... 5.50 1/4/01 5.75 6.45 12/28/00 6.55 6.95 12/28/00 7.05 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Bank Range (or F.R. Bank level)—All of 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. 112 3 9.5-10 9.5 1994—May 17 3-3.5 3.5 9.5 9.5 18 3.5 3.5 1978—Jan. 290 6-6.5 6.5 Nov. 22 9-9.5 9 Aug. 16 3.5-4 4 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^.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—Aua. 24 4.50-4.75 4.75 21 11 11 Apr. 21 6.5-7 6.5 26 4.75 4.75 Oct. 8 111-122 1122 23. 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 July 11 6 6 18 5.00 5.00 13 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 22 5.5 5.5 2000—Feb. 2 5.00-5.25 5.25 19 13 1133 4 5.25 5.25 May 29 12-13 1987—Sept. 4 5.5-6 6 Mar. 21 5.25-5.50 5.50 30 12 12 11 6 6 23 5.50 5.50 June 13 11-12 11 May 16 5.50-6.00 5.50 16 11 11 1988—Aug. 9 6-6.5 6.5 19 6.00 6.00 July 28 10-11 10 11 6.5 6.5 2 9 10 1101 2001—Jan. 3 5.75-6.00 5.75 Sept. 26 11 1989—Feb. 24 6.5-7 7 4 5.50-5.75 5.50 Nov. 17 12 12 27 7 7 5 5.50 5.50 Dec. 5 12-13 1 1 3 3 8 13 1990—Dec. 19 6.5 6.5 In effect Jan. 5, 2001 5.50 5.50 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 8 14 14 4 6 6 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 6 13 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-I1I1 .5 1I1I Dec. 20 3.5^1.5 3.5 3 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 3 0 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors; Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-I970-, 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 Nonfinancial Statistics • February 2001 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS' 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. Effective 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 Vi years was reduced from 3 percent to 1 'A 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 1VS years was reduced from 3 against which the 3 percent reserve requirement applies be modified annually by 80 percent of percent to zero on Jan. 17, 1991. the percentage change in transaction accounts held by all depository institutions, determined The reserve requirement on nonpersonal time deposits with an original maturity of 1 l/l 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 Vl 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 Apr. May June July Aug. Sept. Oct. U.S. Treasury Securities2 Outright transactions (excluding matched transactions) Treasury bills I Gross purchases 9,147 3,550 0 2,294 0 0 1,825 531 231 779 ? Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 435,907 450,835 464,218 37,141 36,386 44,008 33,718 42,797 37,006 38,142 4 For new bills 435,907 450,835 464,218 37,141 36,386 44,008 33,718 42,797 37,006 38,142 5 Redemptions 0 2,000 0 779 2,297 4,188 4,902 3,438 3,898 2,656 Others within one year 6 Gross purchases 5,549 6,297 11,895 0 164 1,875 1,284 2,770 716 0 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 41,716 46,062 50,590 0 13,063 4,672 5,152 7,040 0 8.663 9 Exchanges -27,499 -49,434 -53,315 0 -12,633 -3,109 -3,333 -7,396 0 -6,608 10 Redemptions 1,996 2,676 1,429 568 0 0 367 887 0 787 One to five years 11 Gross purchases 20,080 12,901 19,731 1,723 890 706 2.259 2,508 2,385 734 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,987 -37,777 -44,032 0 -10,334 -4,672 -5,152 -3,439 0 -8,663 14 Exchanges 20,274 37,154 42,604 0 10,063 3,109 3,333 5,418 0 6,608 Five to ten years 15 Gross purchases 3,449 2,294 4,303 930 0 0 0 1,914 448 0 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -1,954 -5,908 -5,841 0 -1,552 0 0 -3,601 0 0 18 Exchanges 5,215 7,439 7,583 0 2,570 0 0 1,254 0 0 More than ten years 19 Gross purchases 5,897 4,884 9,428 0 528 1,151 500 727 547 982 7,0 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -1,775 -2,377 -717 0 -1,177 0 0 0 0 0 22 Exchanges 2,360 4,842 3,139 0 0 0 0 724 0 0 All maturities 23 Gross purchases 44,122 29,926 45,357 4,947 1,582 3,732 5,868 8,450 4,326 2,495 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 1,996 4,676 1,429 1,347 2,297 4,188 5,269 4,325 3,898 3,443 Matched transactions 26 Gross purchases 3,591,210 4,430,457 4,413,430 336,103 357,355 368,396 344,935 381,349 335,321 344,920 27 Gross sales 3,593,530 4,434,358 4,431,685 334,751 356,640 369,739 344,384 381,475 334,530 346,428 Repurchase agreements 28 Gross purchases 810,485 512,671 281,599 0 0 0 0 00 00 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 4,952 -1 -1,800 1,150 3,999 1,219 -2,457 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 10 0 0 0 0 10 0 Repurchase agreements 34 Gross purchases 160,409 284,316 360,069 0 0 0 0 00 0 0 35 Gross sales 159,369 276,266 370,772 0 0 0 0 0 0 0 36 Net change in federal agency obligations -500 7,703 -10,859 -10 0 0 0 0 -10 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 0 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 0 304,989 79,585 107,375 70,850 66,485 47,265 66,080 64,428 40 Gross sales 0 0 164,349 78,425 105,885 70,315 75,925 46,230 67,285 62,308 41 Net change in triparty obligations 0 0 140,640 1,160 1,490 535 -9,440 1,035 -1,205 2,120 42 Total net change in System Open Market Account. . 40,522 27,538 135,780 6,102 1,489 -1,265 -8,290 5,034 4 -337 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 Nonfinancial Statistics • February 2001 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements' Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2000 2000 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 Sept. 30 Oct. 31 Nov. 30 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 3,200 3,200 3,200 3 Coin 886 906 909 905 892 831 887 901 Loans 4 To depository institutions 203 159 407 146 438 372 248 136 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—triparty" 24,940 11,975 25,795 24,615 25,630 17,320 19,440 27,270 Federal agency obligations3 8 Bought outright 130 130 130 130 130 130 130 130 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 510,302 514,015 511,748 513,813 514,308 511,413 508,961 512,327 11 Bought outright4 510.302 514.015 511,748 513,813 514,308 511,413 508,961 512,327 17 Bills 182,312 185.320 183,044 183,883 183,817 184,356 180,971 182,615 13 235,603 236,014 236,021 237,245 237,804 235,725 235,603 237,025 14 Bonds 92,387 92.680 92,682 92,685 92,687 91,332 92,387 92,687 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 535,575 526,279 538,080 538,704 540,506 529,235 528,779 539,863 17 Items in process of collection 8,834 10.238 7,922 8,472 7,198 5,424 10,945 5,237 18 Bank premises 1,434 1.435 1,442 1,443 1,441 1,430 1,433 1,440 Other assets 19 Denominated in foreign currencies' 15,298 15,304 15,310 15.316 15,323 15,642 15,297 15,348 20 All other" 19,454 19.959 16,761 17,206 17,677 18,817 19,616 17,083 21 Total assets 595,727 588,367 594,669 596,293 597,282 585,625 591,203 594,118 LIABILITIES 22 Federal Reserve notes 542,757 544.466 545,812 550,192 550,957 538,816 542,479 549,627 23 Reverse repurchase agreements—triparty" 0 0 0 0 0 0 0 0 24 Total deposits 27,995 19,098 24,183 20,987 21,718 26,399 22,793 20,621 25 Depository institutions 22,494 13.338 18,978 16,270 16,362 17,624 17,074 15,858 26 U.S. Treasury—General account 5,149 5.459 4.850 4,413 5,056 8,459 5,360 4,382 7.1 Foreign—Official accounts 75 72 90 71 73 139 115 104 28 Other 278 229 266 233 227 177 245 276 ?9 Deferred credit items 8.526 7,749 7,356 7,445 6,694 5,168 9,514 5,672 30 Other liabilities and accrued dividends7 4,296 4.272 4,364 4,368 4,409 4,447 4,325 4,590 31 Total liabilities 583,574 575,585 581,716 582,992 583,778 574,830 579,111 580,510 CAPITAL ACCOUNTS 3? Capital paid in 6,987 6,988 6,988 7,030 7,071 6,933 6,986 7,076 33 Surplus 2.679 2.679 2,679 2,679 2,679 2,679 2,679 2,679 34 Other capital accounts 2,487 3.115 3,287 3.592 3,754 1,184 2,426 3,853 35 Total liabilities and capital accounts 595,727 588,367 594,669 596,293 597,282 585,625 591,203 594,118 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) . 759,820 759.105 758,530 757,512 756,715 764,756 760,004 756,527 LESS: Held by Federal Reserve Banks 217,063 214,638 212,718 207,320 205,757 225,940 217,525 206,900 Federal Reserve notes, net 542.757 544,466 545,812 550,192 550,957 538,816 542,479 549,627 Co/lateral 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 3,200 3,200 3,200 42 Other eligible assets 0 4,104 0 0 0 0 0 0 43 U.S. Treasury and agency securities 528,511 526.120 531,566 535,946 536,712 524,570 528,233 535,381 44 Total collateral 542,757 544,466 545,812 550,192 550,957 538,816 542,479 549,627 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 5. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Cash value of agreements arranged through third-party custodial banks. bills maturing within ninety days. 3. Face value of the securities. 7. Includes exchange-translation account reflecting the monthly revaluation at market 4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with exchange rates of foreign exchange commitments. Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 2000 2000 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 Sept. 30 Oct. 31 Nov. 30 1 Total loans 203 159 407 146 438 372 248 136 2 Within fifteen days1 180 111 336 125 421 221 152 86 3. Sixteen days to ninety days 23 48 71 21 18 151 96 50 4. 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 510,302 514,015 511,748 513,813 514,308 511,413 508,961 512,327 6 Within fifteen days' 17,950 17,053 17,502 17,639 15,478 8,978 12,494 4,706 7 Sixteen days to ninety days 105,007 116,675 108,823 112,587 114,311 116,776 109,123 119,433 8 Ninety-one days to one year 131,002 123,240 128,476 125,994 126,364 128,981 131,002 130,868 9 One year to five years 130,667 131,364 131,941 132,580 132,581 131,987 130,667 131,745 10 Five years to ten years 53,530 53,536 54,117 54,123 54,681 53,527 53,530 54,682 11 More than ten years 72,145 72,147 70,889 70,891 70,893 71,162 72,145 70,893 12 Total federal agency obligations 130 130 130 130 130 130 130 130 13 Within fifteen days1 0 0 0 0 0 0 0 0 14 Sixteen days to ninety days 0 0 0 0 0 0 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 30 30 30 17 Five years to ten years 100 100 100 100 100 100 100 100 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 NonfinancialS tatistics • February 2001 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2000 1996 1997 1998 1999 IItteemm Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS" 1 Total reserves3 50.17 46.87 45.19 41.74 40.93 41.36 39.96 40.26 39.94 39.86 39.54 39.45 2 Nonborrowed reserves4 50.02 46.54 45.07 41.42 40.63 41.00 39.48 39.69 39.37 39.38 39.12r 39.16 3 Nonborrowed reserves plus extended credit5.... 50.02 46.54 45.07 41.42 40.63 41.00 39.48 39.69 39.37 39.38 39.12r 39.16 4 Required reserves 48.76 45.18 43.68 40.44 39.78 40.41 38.89 39.19 38.93 38.76 38.41 38.24 5 Monetary base6 451.62 479.17 512.75 591.18 573.08 574.29 575.63 577.41 577.69r 579.26r 580.94r 580.04 Not seasonally adjusted 6 Total reserves7 51.45 48.01 45.31 41.89 40.61 41.58 39.24 39.70 39.52 39.29 38.90 38.84 7 Nonborrowed reserves 51.30 47.69 45.19 41.57 40.31 41.22 38.76 39.13 38.94 38.82 38.48 38.55 8 Nonborrowed reserves plus extended credit5 51.30 47.69 45.19 41.57 40.31 41.22 38.76 39.13 38.94 38.82 38.48 38.55 9 Required reserves8 50.04 46.33 43.80 40.58 39.47 40.64 38.18 38.63 38.50 38.19 37.77 37.63 10 Monetary base9 456.63 484.98 518.27 600.63 571.51 573.26 574.55 577.19 576.60 576.79r 578.34r 582.21 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS 11 Total reserves" 51.17 47.92 45.21 41.66 40.59 41.56 39.22 39.67 39.49 39.26 38.85r 38.79 12 Nonborrowed reserves 51.02 47.60 45.09 41.33 40.29 41.20 38.74 39.10 38.91 38.78 38.44 38.51 13 Nonborrowed reserves plus extended credit5 51.02 47.60 45.09 41.33 40.29 41.20 38.74 39.10 38.91 38.78 38.44 38.51 14 Required reserves 49.76 46.24 43.70 40.35 39.45 40.62 38.15 38.60 38.47 38.16 37.73 37.59 15 Monetary base12 463.40 491.79 525.06 607.94 578.33 580.09 581.44 583.99 583.34 583.48r 585.07' 588.98 16 Excess reserves13 1.42 1.69 1.51 1.31 1.15 .94 1.06 1.07 1.01 1.10 1.13 1.20 17 Borrowings from the Federal Reserve .16 .32 .12 .32 .30 .36 .48 .57 .58 .48 .42 .28 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 ail 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 1996 1997 1998 1999 IItteemm Dec. Dec. Dec. Dec. Aug.r Sept.r Oct.r Nov. Seasonally adjusted Measures2 1 Ml 1,081.1 1,073.9 1,097.4 1,123.0 1,101.5 1,096.7 1,100.9 1,091.1 2 M2 3,813.3r 4,028.9r 4,380.6r 4,643.7 4,821.3 4,857.5 4,876.0 4,887.1 3 M3 4,949.4r 5,400.2r 5,994.0r 6,489.8 6,863.3 6,913.4 6,936.3 6,955.0 4 Debt 14,430.8 15,223.1 16,276.0r 17,376.7 17,999.1 18,074.5 18,115.0 n.a. Ml components 5 Currency3 394.3 424.8 459.5 515.5 523.0 524.0 525.9 526.5 6 Travelers checks4 8.3 8.1 8.2 8.3 9.2 8.8 8.4 8.0 7 Demand deposits5 402.3 395.3 379.3 355.2 328.3 324.9 325.7 317.3 8 Other checkable deposits6 276.1 245.8 250.3 244.0 241.0 239.0 240.9 239.2 Nonlransaction components 9 In M27 2,732.3r 2,955.0r 3,283.2r 3,520.7 3,719.8 3,760.8 3,775.1 3,796.0 10 In M3 only8 i,i36.r l,371.3r l,613.5r 1,846.1 2,042.0 2,055.9 2,060.3 2,067.9 Commercial banks 11 Savings deposits, including MMDAs 904.0 1,020.5 1,184.8 1,285.7 1,358.9 1,384.1 1,385.8 1,397.9 12 Small time deposits9 593.3 625.4 626.1 634.6 686.2 688.6 689.4 692.8 13 Large time deposits10, 11 413.9 488. r 539.lr 614.0 670.5 660.4 655.3 662.9 Thrift institutions 14 Savings deposits, including MMDAs 366.6 376.6 413.8 448.8 454.3 455.3 455.5 454.7 15 Small time deposits9 353.6 342.8 325.6 320.6 337.6 340.1 342.5 345.0 16 Large time deposits10 78.3 85.6 88.9 91.5 99.1 99.6 101.4 103.1 Money market mutual funds 17 Retail 514.8r 589.8r 733.0r 831.0 882.8 892.7 901.9 905.7 18 Institution-only 318.6r 390.9r 532. lr 625.0 721.0 740.4 744.5 751.4 Repurchase agreements and eurodollars 19 Repurchase agreements12 210.7 256.0 300.8 344.3 363.1 362.0 362.0 354.4 20 Eurodollars12 114.6 150.7 152.6 171.3 188.3 193.5 197.1 196.0 Debt components 21 Federal debt 3,781.3 3,800.6 3,751.2 3,660.2 3,488.9 3,475.0 3,445.9 n.a. 22 Nonfederal debt 10,649.5 11,422.5 12,524.7r 13,716.5 14.510.2 14,599.5 14,669.2 n.a. Not seasonally adjusted Measures1 23 Ml 1,105.1 1,097.7 1,121.3 1,147.4 1,095.3 1,089.3 1,092.8 1,094.3 24 M2 3,835.6r 4,052. r 4,405.8r 4,671.9 4,808.0 4,843.4 4,857.8 4,889.5 25 M3 4,970.5r 5,424.4r 6,023.9r 6,525.0 6,834.9 6,881.0 6,907.8 6,969.3 26 Debt 14,428.4 15,218.5 16,271.3r 17,372.0 17,935.7 18,015.7 18,064.7 n.a. Ml components 27 Currency3 397.9 428.9 464.1 521.2 521.6 522.4 524.2 527.5 28 Travelers checks4 8.6 8.3 8.4 8.4 8.9 8.7 8.4 8.2 29 Demand deposits5 419.9 412.4 395.9 371.2 326.3 321.7 322.1 320.3 30 Other checkable deposits6 278.8 248.2 252.8 246.6 238.4 236.4 238.2 238.3 Nontransaction components 31 In M2 2,730.5r 2,954.4r 3,284.5r 3,524.5 3,712.7 3,754.1 3,765.0 3,795.1 32 In M3 only8 1,134.9r l,372.3r l,618.1r 1,853.1 2,027.0 2,037.6 2,050.0 2,079.9 Commercial banks 33 Savings deposits, including MMDAs 903.3 1,020.4 1,186.0 1,288.5 1,356.5 1,381.1 1,380.0 1,397.4 34 Small time deposits9 592.7 625.3 626.5 635.4 684.2 687.9 690.7 694.8 35 Large time deposits10, " 413.2 487. r 537.61" 612.1 668.6 663.3 659.8 666.2 Thrift institutions 36 Savings deposits, including MMDAs 366.3 376.5 414.2 449.8 453.5 454.3 453.6 454.5 37 Small time deposits9 353.2 342.8 325.8 321.0 336.6 339.8 343.2 346.0 38 Large time deposits10 78.1 85.4 88.6 91.2 98.8 100.1 102.1 103.6 Money market mutual funds 39 Retail 514.8r 589.4r 731.9r 829.7 881.9 890.9 897.5 902.4 40 Institution-only 322.2r 397,0r 541.9r 636.9 709.5 721.5 734.7 755.9 Repurchase agreements and eurodollars 41 Repurchase agreements12 205.7 250.5 295.4 339.5 362.8 360.9 358.3 357.6 42 Eurodollars12 115.7 152.3 154.5 173.4 187.3 191.8 195.1 196.6 Debt components 43 Federal debt 3,787.9 3,805.8 3,754.9 3,663.1 3,437.7 3,426.5 3,395.5 n.a. 44 Nonfederal debt 10,640.4 11,412.7 12,516.3 13,709.0 14,498.1 14,589.2 14,669.2 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities' A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Nov.1" Mayr Juner July1' Aug.r Sept.1" Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Seasonally adjusted Assets 1 Bank credit 4,694.0 5,005.5 5,041.8 5,079.7 5,121.9 5,170.3 5,145.0 5,157.3 5,138.0 5,141.7 5,167.8 5,177.8 2 Securities in bank credit 1,249.5 1,313.8 1,313.5 1,318.5 1,321.9 1,332.5 1,310.4 1,302.5 1,297.2 1,297.6 1,307.5 1,306.6 3 U.S. government securities 801.9 815.4 818.5 820.7 813.8 808.2 793.2 782.7 784.6 782.9 782.7 780.1 4 Other securities 447.6 498.4 494.9 497.8 508.1 524.3 517.2 519.8 512.7 514.7 524.7 526.5 5 Loans and leases in bank credit2 . . . 3,444.5 3,691.7 3,728.3 3,761.2 3,800.0 3,837.8 3,834.6 3,854.8 3,840.8 3,844.2 3,860.3 3,871.2 6 Commercial and industrial 996.0 1,058.1 1,066.6 1,072.1 1,079.9 1,079.9 1,079.0 1,080.2 1,074.7 1,081.7 1.082.5 1.081.6 7 Real estate 1,436.9 1,580.3 1,598.4 1,614.5 1,624.5 1,634.9 1,632.5 1,643.9 1,639.8 1,641.1 1,645.7 1,647.9 8 Revolving home equity 100.8 114.7 115.7 117.1 118.3 120.2 123.4 125.1 124.7 124.9 125.1 125.4 9 Other 1,336.1 1,465.6 1,482.7 1,497.4 1,506.2 1,514.7 1,509.0 1,518.8 1,515.1 1,516.2 1,520.6 1,522.5 10 Consumer 482.7 509.3 516.0 519.6 528.1 531.4 531.3 535.0 529.9 535.7 537.5 537.4 11 Security3 133.7 144.8 149.4 151.5 158.3 179.4 177.7 179.3 177.3 171.5 177.9 188.2 12 Other loans and leases 395.2 399.2 397.8 403.5 409.3 412.1 414.2 416.4 418.9 414.1 416.7 416.0 13 Interbank loans 224.2 226.7 227.1 240.4 247.1 240.1 250.6 250.1 253.2 252.3 244.5 249.7 14 Cash assets4 274.5 275.1 270.6 271.1 271.5 269.1 267.4 255.0 255.6 252.8 270.0 238.7 15 Other assets5 367.6 375.9 377.7 396.0 397.1 396.2 409.6 400.0 401.3 397.7 402.1 397.9 16 Total assets6 5,501.0 5,823.4 5,857.1 5,926.0 5,975.5 6.013.2 6,010.5 5,999.9 5,986.0 5,982.3 6,022.2 6,001.0 Liabilities 17 Deposits 3,485.9 3,633.7 3,667.0 3,725.8 3,753.5 3,771.4 3,786.9 3.774.6 3,768.0 3,782.5 3.794.0 3,744.9 18 Transaction 626.4 629.2 617.0 612.1 618.0 610.6 614.4 599.7 582.9 596.9 624.7 596.4 19 Nontransaction 2,859.5 3,004.5 3,050.0 3,113.7 3,135.5 3,160.8 3,172.4 3,174.9 3,185.1 3,185.5 3,169.3 3,148.6 20 Large time 805.1 879.9 899.0 921.3 930.9 920.4 915.2 912.3 913.8 913.1 912.1 908.6 21 Other 2,054.4 2,124.6 2,151.0 2,192.4 2,204.7 2,240.4 2,257.3 2,262.6 2,271.3 2,272.5 2.257.2 2,240.0 22 Borrowings 1,060.1 1,201.3 1,203.8 1,221.9 1,227.9 1,219.9 1,210.4 1,206.5 1,214.1 1,188.0 1,195.1 1,222.8 23 From banks in the U.S 350.3 385.0 378.4 390.1 389.3 373.4 369.2 365.1 372.4 367.5 353.4 362.9 24 From others 709.8 816.2 825.4 831.8 838.6 846.4 841.2 841.4 841.7 820.4 841.7 859.8 25 Net due to related foreign offices 224.0 254.4 263.5 261.9 269.7 269.1 251.7 241.3 230.4 243.0 245.3 251.0 26 Other liabilities 294.7 310.4 300.6 296.5 312.6 331.6 338.9 339.4 340.1 339.5 341.2 336.0 27 Total liabilities 5,064.7 5,399.7 5,434.8 5,506.1 5,563.7 5,592.0 5,587.8 5,561.7 5,552.6 5,552.9 5,575.6 5,554.7 28 Residual (assets less liabilities)7 436.3 423.7 422.4 419.9 411.8 421.3 422.7 438.2 433.3 429.4 446.5 446.3 Not seasonally adjusted Assets 29 Bank credit 4,721.9 4,997.0 5,024.5 5,048.1 5,093.1 5,157.0 5,158.7 5,188.2 5,171.9 5,173.0 5,193.4 5,210.6 30 Securities in bank credit 1,263.8 1,311.1 1,302.7 1,301.0 1,309.2 1,327.3 1,314.8 1,317.5 1,312.1 1,312.5 1,321.6 1,322.4 31 U.S. government securities 804.7 820.8 817.8 812.2 804.9 800.2 788.1 785.3 787.4 785.3 783.7 783.9 32 Other securities 459.1 490.4 485.0 488.8 504.3 527.1 526.7 532.2 524.7 527.3 5.37.9 538.5 33 Loans and leases in bank credit2 ... 3,458.1 3,685.9 3,721.7 3,747.1 3,783.9 3,829.7 3,843.9 3,870.7 3.859.8 3,860.5 3,871.9 3,888.2 34 Commercial and industrial 999.8 1,061.0 1,066.0 1,067.3 1,069.5 1,075.8 1,079.8 1,084.4 1.079.3 1,086.0 1,086.7 1,085.6 35 Real estate 1,443.4 1,577.7 1,595.0 1,610.7 1,624.6 1,635.3 1,638.2 1,651.8 1,651.6 1,650.0 1,651.1 1,654.1 36 Revolving home equity 101.2 114.3 115.8 117.1 118.5 121.0 124.0 125.6 125.2 125.5 125.6 125.9 37 Other 1,342.2 1,463.4 1,479.3 1,493.6 1,506.1 1,514.4 1,514.2 1,526.3 1,526.4 1.524.5 1,525.5 1,528.2 38 Consumer 481.4 508.9 514.1 516.1 526.9 532.1 529.0 534.1 527.6 534.1 537.0 537.9 39 Credit cards and related plans. . n.a. n.a. n.a. 195.2 202.8 206.0 202.9 206.8 200.7 207.2 209.8 210.0 40 Other n.a. n.a. n.a. 320.9 324.2 326.2 326.1 327.2 326.9 326.9 327.2 328.0 41 Security3 135.8 143.3 149.3 148.6 153.2 172.5 181.5 181.6 181.3 173.1 179.5 190.0 42 Other loans and leases 397.7 395.0 397.4 404.4 409.7 413.8 415.4 418.8 420.0 417.3 417.6 420.6 43 Interbank loans 228.1 226.6 226.8 236.4 237.1 233.8 244.4 255.2 258.0 259.9 246.1 255.8 44 Cash assets4 283.4 272.9 266.7 261.8 259.2 264.8 268.4 262.9 252.1 270.8 268.8 258.3 45 Other assets5 364.6 379.0 379.2 395.4 395.4 394.6 402.4 397.0 400.1 395.6 392.9 398.0 46 Total assets6 5,538.4 5,815.6 5,837.0 5,8805 5,922.5 5,987.5 6,012.0 6,040.7 6,019.9 6,036.9 6,038.7 6,059.4 Liabilities 47 Deposits 3.513.7 3,619.1 3,655.0 3,701.1 3,721.2 3,755.3 3,779.9 3,804.0 3,794.9 3,822.8 3.807.1 3,784.0 48 Transaction 634.6 619.9 615.9 605.6 602.3 604.2 606.3 607.3 580.0 613.1 621.4 617.5 49 Nontransaction 2,879.1 2,999.2 3,039.1 3,095.5 3,118.9 3,151.0 3,173.5 3,196.7 3,215.0 3,209.7 3,185.7 3.166.5 50 Large time 815.2 876.1 888.1 904.6 913.9 909.5 912.4 923.0 921.9 921.9 923.9 923.3 51 Other 2,063.9 2,123.1 2,151.0 2,191.0 2,205.0 2,241.5 2,261.1 2,273.7 2,293.1 2,287.8 2,261.8 2,243.2 52 Borrowings 1,068.1 1,210.7 1,207.2 1,209.4 1,200.6 1,215.5 1,212.1 1,215.5 1,217.5 1,199.2 1,200.3 1,239.5 53 From banks in the U.S 353.7 385.7 379.4 387.3 384.9 373.0 368.2 368.6 373.4 371.4 356.0 369.6 54 From others 714.4 825.0 827.8 822.1 815.7 842.4 843.8 846.9 844.1 827.8 844.3 869.9 55 Net due to related foreign offices .... 228.1 254.9 253.9 253.4 267.0 264.1 252.9 246.5 231.4 241.2 253.7 264.9 56 Other liabilities 295.7 308.8 298.9 294.2 312.2 331.0 338.0 340.4 340.4 340.4 342.2 337.7 57 Total liabilities 5,105.6 5,393.5 5,414.9 5,458.1 5,501.0 5,565.8 5,582.8 5,606.4 5,584.2 5,603.6 5,603.3 5,626.2 58 Residual (assets less liabilities)7 432.8 422.1 422.1 422.4 421.6 421.7 429.1 434.2 435.7 433.2 435.4 433.2 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • February 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 Nov. Mayr Juner Julyr Aug/ Sept.1" Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Seasonally adjusted Assets 1 Bank credit 4,152.2 4,417.1 4,460.4 4.497.7 4,535.4 4,576.4 4,564.6 4,582.4 4,563.4 4,575.6 4.591.1 4,599.1 7 Securities in bank credit 1,052.5 1,099.0 1,103.5 1.108.8 1,111.6 1,124.1 1,118.7 1,119.0 1,113.0 1,116.7 1,122.0 1,125.2 U.S. government securities 722.2 736.0 740.1 741.6 734.6 731.4 724.1 717.2 717.6 717.3 717.4 716.2 4 Other securities 330.3 363.0 363.4 367.2 377.0 392.7 394.6 401.8 395.4 399.4 404.6 408.9 Loans and leases in bank credit2 3,099.7 3,318.1 3,356.8 3,389.0 3,423.8 3,452.4 3,445.9 3,463.3 3,450.4 3,458.9 3,469.2 3,473.9 6 Commercial and industrial 799.9r 851.8 859.9 867.2 873.3 875.5 877.2 878.4 873.1 879.8 881.1 879.3 7 Real estate l,419.4r 1,562.0 1,579.8 1,595.7 1,605.7 1,615.5 1,613.7 1,624.5 1,620.6 1,621.7 1,626.2 1,628.5 8 Revolving home equity 100.8 114.7 115.7 117.1 118.3 120.2 123.4 125.1 124.7 124.9 125.1 125.4 u i i n 9n ? Interb C O S a e o t n h c O n k u e s t r r h u l i o e t m l y o a r 3 e n a r n s s and leases l,3 4 2 3 1 8 6 0 2 8 2 8 9 0 . . . . . 7 3 5 6 1 r 1, 5 3 4 1 0 3 6 4 9 1 9 4 7 6 . . . . . 1 3 0 3 3 1, 2 5 3 4 1 0 6 3 6 6 0 2 8 4 . . . . . 0 8 5 6 0 1, 2 5 3 4 7 1 1 3 7 9 6 6 0 8 . . . . . 6 9 5 0 7 1, 5 2 3 4 2 7 2 4 8 8 6 4 0 7 . . . . . 1 6 6 3 4 1, 5 2 3 4 3 1 4 8 9 1 5 4 5 5 . . . . . 4 1 9 9 3 1, 2 5 3 4 3 2 4 7 9 1 8 2 5 0 . . . . . 1 3 6 9 3 1, 5 2 3 4 3 2 4 7 9 5 2 9 6 9 . . . . . 0 0 4 4 4 1, 5 2 3 4 2 5 2 7 9 9 2 6 4 5 . . . . . 9 5 2 3 9 1, 2 5 3 4 3 2 4 7 9 5 5 8 3 6 . . . . . 7 8 5 2 8 1, 5 2 3 5 3 1 4 7 0 7 9 8 5 1 . . . . . 5 2 8 7 1 1, 2 5 3 5 1 3 4 8 0 8 7 8 0 3 . . . . . 3 4 6 1 0 14 Cash assets4 226.0 230.6 225.1 225.3 226.3 223.6 224.4 215.5 215.8 212.1 231.0 200.3 15 Other assets5 333.3 335.6 335.2 354.1 356.2 356.8 373.5 365.4 365.9 364.1 368.1 362.3 16 Total assets6 4,852.6 5,120.2 5,161.8 5,233.1 5,280.7 5,310.7 5,323.6 5,323.6 5,309.6 5,315.8 5,347.6 5,317.2 Liabilities 17 3,128.4 3,250.1 3,281.8 3,335.4 3,358.0 3,383.1 3,402.5 3,391.7 3,383.9 3,399.5 3,409.9 3,365.0 18 Transaction 615.8 618.1 605.6 600.8 607.2 600.9 604.0 589.2 572.2 586.6 614.2 586.1 19 Nontransaction 2,512.6 2,632.0 2,676.2 2,734.6 2,750.8 2,782.2 2,798.5 2,802.5 2,811.7 2,812.9 2,795.7 2,779.0 ?0 Large time 460.9r 510.0 526.0 544.6 548.6 544.4 543.9 542.6 542.4 542.7 541.0 542.7 ">1 Other 2,051.7' 2,122.1 2,150.1 2,190.1 2,202.2 2,237.8 2,254.6 2,260.0 2,269.3 2,270.2 2,254.7 2,236.3 77. Borrowings 877.0 998.4 1,001.2 1,019.4 1,029.0 1,005.6 991.8 984.5 987.§ 973.5 978.7 996.1 n From banks in the U.S 325.3 367.0 359.2 369.2 372.3 354.1 350.3 345.6 348.1 348.0 338.7 344.6 74 From others 551.7 631.4 642.0 650.2 656.7 651.5 641.5 639.0 639.7 625.5 640.1 651.6 75 Net due to related foreign offices .... 178.9 232.5 243.3 243.7 246.3 244.8 235.0 235.2 226.2 235.0 240.5 243.2 26 Other liabilities 229.9r 231.7 228.6 222.8 239.6 255.1 263.1 269.1 268.6 271.3 269.8 266.9 27 Total liabilities 4,414.3 4,712.7 4,754.9 4,821.2 4,872.9 4,888.5 4,892.4 4,880.6 4,866.6 4,879.4 4,898.9 4,871.2 28 Residual (assets less liabilities)7 438.3 407.5 407.0 411.9 407.8 422.2 431.2 443.0 443.0 436.4 448.7 446.0 Not seasonally adjusted Assets 29 Bank credit 4,167.1 4,417.3 4,453.1 4.477.0 4,516.4 4,563.9 4,569.4 4,599.1 4,582.6 4,592.4 4,603.2 4,618.0 30 Securities in bank credit 1,056.9 1,099.6 1,099.1 1,098.3 1,104.6 1,118.7 1,115.6 1,123.2 1,116.4 1,120.1 1,125.6 1,131.3 31 U.S. government securities 723.5 740.4 739.3 734.2 727.3 725.5 719.4 718.4 718.7 718.3 717.7 718.6 32 Other securities 333.4 359.2 359.7 364.2 377.3 393.2 396.2 404.8 397.8 401.8 407.9 412.7 33 Loans and leases in bank credit2 3,110.2 3,317.7 3,354.0 3,378.7 3,411.8 3,445.2 3,453.8 3,475.9 3,466.1 3,472.2 3,477.6 3,486.7 34 Commercial and industrial 800.7r 858.9 862.6 864.9 865.6 871.4 876.6 879.2 874.6 880.8 881.8 879.8 35 Real estate l,425.8r 1,559.5 1,576.5 1,592.2 1,605.9 1,616.2 1,619.1 1,632.4 1,632.1 1,630.6 1,631.6 1,634.7 36 Revolving home equity 101.2 114.3 115.8 117.1 118.5 121.0 124.0 125.6 125.2 125.5 125.6 125.9 37 Other l,324.6r 1,445.1 1,460.8 1.475.0 1,487.4 1,495.2 1,495.1 1,506.9 1,506.9 1,505.1 1,506.0 1,508.8 38 Consumer 481.4 508.9 514.1 516.1 526.9 532.1 529.0 534.1 527.6 534.1 537.0 537.9 39 Credit cards and related plans. . n.a. n.a. n.a. 195.2 202.8 206.0 202.9 206.8 200.7 207.2 209.8 210.0 40 Other n.a. n.a. n.a. 320.9 324.2 326.2 326.1 327.2 326.9 326.9 327.2 328.0 41 Security3 71.0 62.6 68.1 67.3 71.2 78.4 80.1 79.2 78.8 76.3 78.2 82.1 42 Other loans and leases 331.4 327.8 332.6 338.3 342.1 347.1 349.0 351.1 353.0 350.5 349.1 352.2 43 Interbank loans 204.0 196.2 200.5 212.9 214.6 209.6 216.7 227.6 231.0 233.3 220.8 224.3 44 Cash assets4 232.0 229.6 222.0 217.6 215.4 220.2 224.5 221.0 210.6 227.4 227.6 216.8 45 Other assets5 330.2 339.3 338.9 355.4 355.2 355.9 367.1 362.3 365.0 362.5 358.8 361.8 46 Total assets6 4,874.1 5,122.8 5,154.6 5,202.1 5,239.9 5,287.2 5,316.0 5,347.8 5,327.1 5,353.4 5,348.3 5,358.0 Liabilities 47 Deposits 3,153.5 3,234.6 3,274.2 3,319.6 3,337.6 3,373.3 3,400.0 3.418.0 3,409.4 3,437.5 3,419.0 3,398.4 48 Transaction 623.9 609.2 605.0 594.4 591.6 594.1 595.8 596.7 569.4 602.5 610.8 606.9 49 Nontransaction 2,529.7 2,625.4 2,669.3 2,725.2 2,746.0 2,779.3 2,804.2 2,821.3 2,840.0 2,834.9 2,808.2 2,791.6 50 Large time 468.2r 504.7 520.6 536.4 543.2 540.0 545.3 549.8 549.2 549.4 548.7 550.6 51 Other 2,061.5r 2,120.7 2,148.7 2,188.7 2,202.8 2,239.3 2,258.8 2,271.4 2,290.8 2,285.5 2,259.5 2,241.0 52 Borrowings 885.0 1,007.9 1,004.6 1,006.9 1,001.7 1,001.2 993.5 993.5 991.2 984.7 983.9 1,012.8 53 From banks in the U.S 328.8 367.6 360.2 366.3 367.9 353.7 349.3 349.1 349.1 351.9 341.3 351.2 54 From others 556.3 640.3 644.4 640.6 633.8 647.5 644.2 644.5 642.1 632.8 642.7 661.6 55 Net due to related foreign offices .... 181.2 237.2 235.1 236.1 243.8 240.4 236.1 238.8 227.8 232.3 246.5 252.9 56 Other liabilities 229.9 231.7 228.4 222.1 239.6 254.8 262.7 269.1 268.6 271.4 269.6 267.0 57 Total liabilities 4,449.7 4,711.4 4,742.3 4,784.6 4,822.6 4,869.8 4,892.3 4,919.5 4,897.1 4,925.9 4,919.0 4,931.1 58 Residual (assets less liabilities)7 424.4r 411.5 412.4 417.5 417.2 417.4 423.8 428.3 430.0 427.5 429.3 426.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A17 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Nov.1 Mayr Juner Julyr Aug.1' Sept.r Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Seasonally adjusted Assets 1 Bank credit 2,333.2 2,484.5 2,500.2 2,510.2 2,528.1 2,551.6 2,527.8 2,527.2 2,520.7 2,521.8 2,530.7 2,536.2 2 Securities in bank credit 544.3 579.9 581.3 578.8 577.0 585.1 576.1 572.0 568.3 571.2 574.4 575.5 3 U.S. government securities 352.9 359.8 362.7 363.5 359.4 357.5 351.2 344.6 344.7 345.0 344.7 344.1 4 Trading account 18.2 23.5 22.7 24.3 23.7 23.2 21.1 20.5 19.9 20.1 20.9 20.7 5 Investment account 334.7 336.3 339.9 339.2 335.7 334.3 330.1 324.2 324.7 324.9 323.8 323.4 6 Other securities 191.4 220.1 218.7 215.3 217.6 227.6 224.9 227.4 223.6 226.2 229.6 231.3 7 Trading account 82.1 101.2 100.2 97.2 102.5 114.5 112.7 116.0 111.9 114.4 118.9 119.9 8 Investment account 109.4 118.9 118.5 118.1 115.0 113.2 112.2 111.4 111.7 111.8 110.7 111.5 9 State and local government . 24.0 25.4 25.6 26.1 25.9 25.8 26.1 26.3 26.1 26.4 26.5 26.5 10 Other 85.4 93.5 92.9 92.0 89.1 87.4 86.1 85.1 85.7 85.5 84.2 85.0 11 Loans and leases in bank credit2 . . . 1,788.9 1,904.6 1,918.8 1,931.3 1,951.2 1,966.5 1,951.7 1,955.2 1,952.4 1,950.6 1,956.3 1,960.8 12 Commercial and industrial 548.5 579.5 582.9 583.4 586.5 586.7 586.0 584.2 580.2 585.5 586.1 584.5 13 Bankers acceptances 1.1 1.1 1.0 1.0 .9 .9 .8 .9 .8 .9 .9 .8 14 Other 547.4 578.4 581.8 582.4 585.5 585.9 585.2 583.3 579.4 584.6 585.2 583.7 15 Real estate 717.2 797.2 803.5 812.1 817.8 818.9 810.9 813.8 814.3 812.3 814.0 814.0 16 Revolving home equity 64.7 74.2 74.5 75.4 76.3 75.2 77.1 78.3 78.1 78.1 78.3 78.5 17 Other 652.5 723.1 729.0 736.7 741.5 743.7 733.8 735.5 736.2 734.1 735.7 735.5 18 Consumer 217.7 227.0 227.8 229.0 231.2 232.1 233.3 234.9 234.2 234.2 234.5 236.6 19 Security3 61.6 57.8 62.1 63.1 69.3 77.9 68.1 68.5 66.6 65.8 68.3 72.7 20 Federal funds sold to and repurchase agreements with broker-dealers 43.9 38.9 43.9 44.6 50.7 58.6 49.6 50.6 47.6 46.6 51.4 56.0 21 Other 17.6 18.9 18.2 18.6 18.6 19.3 18.5 17.9 18.9 19.2 17.0 16.7 22 State and local government 11.8 12.4 12.3 12.2 12.3 12.4 12.4 12.4 12.4 12.4 12.4 12.3 23 Agricultural 8.9 9.6 9.6 9.5 9.5 9.4 9.4 9.5 9.4 9.4 9.5 9.6 24 Federal funds sold to and repurchase agreements with others 12.2 13.2 13.5 12.8 14.4 17.0 17.7 20.2 20.1 20.0 20.7 21.1 25 All other loans 92.6 87.7 84.7 84.2 84.1 85.4 85.3 82.8 86.3 82.2 81.8 80.9 26 Lease-financing receivables 118.5 120.3 122.5 125.0 126.1 126.7 128.6 129.0 128.9 128.8 129.1 129.1 27 Interbank loans 134.5 130.7 133.6 141.5 140.1 130.6 136.2 139.9 141.3 141.5 138.2 138.9 28 Federal funds sold to and repurchase agreements with commercial banks 61.0 66.8 67.8 73.6 66.0 56.4 57.5 60.6 58.5 63.1 60.3 60.8 29 Other 73.4 63.9 65.8 67.9 74.1 74.3 78.7 79.3 82.8 78.4 77.9 78.1 30 Cash assets4 144.2 149.8 146.0 143.9 144.6 141.5 141.9 136.8 139.5 134.5 147.3 124.2 31 Other assets5 234.3 222.7 223.3 243.3 246.0 247.9 261.3 257.6 258.5 258.5 256.3 256.6 32 Total assets6 2310.8 2,952.9 2,968.5 3,003.8 3,023.4 3,036.0 3,032.0 3,026.1 3,024.7 3,021.1 3,037.4 3,020.0 Liabilities 33 Deposits 1,597.2 1,644.9 1,638.4 1,638.9 1,634.5 1,634.1 1,637.1 1,620.8 1,623.9 1,628.4 1,630.0 1,596.0 34 Transaction 318.2 316.6 309.4 302.9 305.4 301.5 303.8 293.5 286.2 292.7 309.1 287.4 35 Nontransaction 1,279.0 1,328.2 1,329.0 1,336.0 1,329.1 1,332.6 1,333.3 1,327.3 1,337.7 1,335.7 1,321.0 1,308.6 36 Large time 224.6 251.8 258.6 266.8 265.2 257.2 254.0 249.9 250.9 250.5 247.5 249.3 37 Other 1,054.4 1,076.4 1,070.3 1,069.1 1,063.9 1,075.4 1,079.3 1,077.4 1,086.8 1,085.2 1,073.5 1,059.3 38 Borrowings 581.7 652.2 656.6 678.7 689.3 671.4 664.2 661.2 662.7 650.9 657.5 672.6 39 From banks in the U.S 178.6 203.3 197.0 205.1 207.5 192.2 196.4 193.7 195.7 195.5 188.9 192.4 40 From others 403.1 448.9 459.6 473.6 481.8 479.2 467.8 467.5 467.0 455.3 468.6 480.1 41 Net due to related foreign offices 174.4 226.5 234.2 221.3 222.7 224.4 211.7 211.7 204.5 211.8 215.2 218.6 42 Other liabilities 169.9 172.8 173.8 177.3 193.3 207.4 213.9 218.7 218.5 221.4 218.5 216.2 43 Total liabilities 2,523.2 2,6963 2,702.9 2,716.1 2,739.8 2,7373 2,726.9 2,7123 2,709.6 2,712.5 2,721.2 2,703.4 44 Residual (assets less liabilities)7 287.6 256.6 265.6 287.6 283.6 298.8 305.0 313.8 315.1 308.5 316.2 316.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • February 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 Nov.r May1" Juner Julyr Aug/ Sept.1" Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Not seasonally adjusted Assets 45 Bank credit 2,348.4 2,477.8 2,487.5 2.488.7 2,505.8 2,534.7 2,530.6 2,543.5 2,537.8 2,538.3 2,542.7 2.554.9 46 Securities in bank credit 550.4 576.7 575.0 569.3 570.5 581.1 575.6 577.8 573.1 576.6 579.5 582.7 47 U.S. government securities 355.9 360.8 359.6 356.3 352.8 352.4 349.1 347.6 347.4 348.1 346.7 347.9 48 Trading account 19.4 22.0 22.5 22.6 23.0 22.5 21.0 21.7 20.8 21.5 22.0 22.0 49 Investment account 336.5 338.8 337.1 333.7 329.8 330.0 328.1 325.9 326.6 326.6 324.7 325.9 50 Mortgage-backed securities . . 218.5 219.0 217.6 212.1 207.8 208.1 210.2 210.5 210.4 210.7 210.2 210.6 51 Other 118.0 119.8 119.5 121.5 122.0 121.8 117.9 115.5 116.2 115.9 114.5 115.4 52 One year or less 21.8 31.0 30.8 30.8 31.8 32.6 31.3 31.9 32.2 32.3 31.0 32.2 53 One to five years 57.6 52.4 53.2 54.0 53.0 52.6 50.4 48.8 49.5 49.3 48.0 48.6 54 More than five years . . . 38.6 36.4 35.5 36.7 37.1 36.7 36.2 34.8 34.5 34.3 35.5 34.6 55 Other securities 194.5 215.9 215.4 213.1 217.7 228.7 226.6 230.2 225.7 228.5 232.8 234.8 56 Trading account 82.1 101.2 100.2 97.2 102.5 114.5 112.7 116.0 111.9 114.4 118.9 119.9 57 Investment account 112.4 114.7 115.2 115.8 115.2 114.2 113.9 114.2 113.8 114.1 113.9 114.9 58 State and local government . . 24.3 25.3 25.5 25.6 25.6 25.7 26.1 26.6 26.3 26.6 26.9 26.9 59 Other 88.1 89.3 89.7 90.3 89.6 88.5 87.8 87.6 87.6 87.5 87.0 88.1 60 Loans and leases in bank credit2 . . 1,798.0 1,901.1 1.912.5 1.919.4 1,935.3 1,953.5 1,954.9 1,965.7 1,964.7 1,961.7 1,963.2 1,972.3 61 Commercial and industrial 550.4 583.9 583.5 581.0 580.7 584.3 585.8 586.4 582.6 588.1 588.6 586.5 62 Bankers acceptances 1.1 1.1 1.0 1.0 .9 .9 .8 .9 .8 .9 .9 .8 63 Other 549.3 582.9 582.4 580.0 579.8 583.5 584.9 585.6 581.8 587.2 587.8 585.7 64 Real estate 721.7 794.4 799.2 807.5 815.3 816.5 812.9 819.0 821.7 817.9 817.0 818.6 65 Revolving home equity 64.9 73.8 74.6 75.7 76.6 75.5 77.3 78.4 78.1 78.3 78.4 78.6 66 Other 395.3 440.2 444.2 452.1 457.3 459.8 453.8 457.1 460.8 456.0 454.9 456.0 67 Commercial 261.5 280.4 280.4 279.7 281.4 281.2 281.8 283.6 282.7 283.6 283.7 284.0 68 Consumer 215.8 226.5 226.3 226.5 229.3 231.1 231.2 233.3 232.3 232.4 232.8 235.6 69 Credit cards and related plans. . n.a. n.a. n.a. 72.0 73.1 74.2 74.2 75.7 74.9 75.1 75.4 77.6 70 Other n.a. n.a. n.a. 154.5 156.2 157.0 157.0 157.6 157.4 157.3 157.4 158.0 71 Security' 64.3 56.4 61.6 60.5 64.0 71.1 72.6 71.6 71.1 68.6 70.8 74.9 72 Federal funds sold to and repurchase agreements with broker-dealers .... 47.1 36.8 42.5 41.8 45.8 52.2 54.3 54.2 53.2 50.2 53.9 58.0 73 Other 17.2 19.6 19.1 18.6 18.3 18.9 18.3 17.4 17.9 18.3 16.9 16.8 74 State and local government .... 11.9 12.3 12.1 12.2 12.5 12.6 12.6 12.5 12.5 12.5 12.5 12.4 75 Agricultural 9.0 9.4 9.5 9.6 9.6 9.6 9.5 9.6 9.5 9.5 9.6 9.6 76 Federal funds sold to and repurchase agreements with others 12.2 13.2 13.5 12.8 14.4 17.0 17.7 20.2 20.1 20.0 20.7 21.1 77 All other loans 95.5 84.6 84.3 85.0 84.3 86.2 85.2 85.4 87.1 85.2 83.5 85.7 78 Lease-financing receivables .... 117.2 120.4 122.4 124.3 125.1 125.1 127.4 127.7 127.8 127.5 127.7 127.8 79 Interbank loans 133.4 134.2 136.6 141.6 134.1 127.1 130.3 138.2 137.0 141.8 135.0 139.8 80 Federal funds sold to and repurchase agreements with commercial banks 62.1 67.4 68.4 72.9 62.2 54.6 55.6 61.2 58.2 65.0 58.6 63.5 81 Other 71.4 66.9 68.2 68.7 72.0 72.5 74.6 77.0 78.9 76.8 76.3 76.2 82 Cash assets4 147.3 149.0 143.5 137.7 136.5 138.4 142.3 139.2 133.9 144.3 142.9 134.1 83 Other assets5 230.0 227.2 227.1 242.7 243.3 247.4 255.0 253.1 254.5 254.5 248.7 253.9 84 Total assets6 2,823.5 2,953.4 2,960.0 2,975.6 2,9^4.2 3,011.9 3,023.0 3,038.4 3,027.8 3,0433 3,033.9 3,046.6 Liabilities 85 Deposits 1,611.3 1.630.1 1.633.5 1.628.4 1,618.8 1,626.4 1,631.6 1.634.1 1.632.1 1,649.8 1,633.0 1,617.1 86 Transaction 322.7 310.2 308.2 299.1 294.3 296.9 297.9 297.3 280.8 302.9 306.2 301.1 87 Nontransaction 1,288.6 1,319.8 1,325.3 1.329.2 1.324.5 1,329.5 1,333.8 1,336.8 1,351.3 1,346.8 1,326.8 1,316.0 88 Large time 231.8 246.5 253.2 258.7 259.8 252.7 255.5 257.2 257.7 257.3 255.1 257.2 89 Other 1,056.8 1,073.3 1,072.1 1.070.5 1.064.7 1,076.8 1,078.2 1,079.6 1,093.6 1.089.6 1,071.7 1,058.7 90 Borrowings 588.4 660.3 658.1 663.8 658.9 661.2 663.0 668.1 667.9 660.8 659.3 683.6 91 From banks in the U.S 181.6 204.5 196.3 199.8 200.2 188.2 192.9 196.2 197.4 198.9 190.0 196.5 92 From nonbanks in the U.S 406.8 455.8 461.8 464.0 458.7 473.0 470.2 471.9 470.5 461.9 469.3 487.1 93 Net due to related foreign offices . . . 176.7 231.2 225.9 213.7 220.1 220.0 212.8 215.3 206.1 209.1 221.2 228.3 94 Other liabilities 169.9 172.8 173.8 177.3 193.3 207.4 213.9 218.7 218.5 221.4 218.5 216.2 95 Total liabilities 2,5463 2,6943 2,691.4 2,683.1 2,691.1 2,715.0 2,721.4 2,736.1 2,724.6 2,741.2 2,732.0 2,745.2 96 Residual (assets less liabilities)7 277.2 259.1 268.6 292.5 293.1 296.8 301.6 302.2 303.3 302.2 302.0 301.4 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 Nov.r Mayr Juner Julyr Aug.r Sept.r Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Seasonally adjusted Assets 1 Bank credit 1,819.0 1,932.6 1,960.2 1,987.5 2,007.3 2,024.8 2,036.8 2,055.2 2,042.8 2,053.8 2,060.5 2,062.8 7 Securities in bank credit 508.1 519.1 522.2 529.9 534.6 538.9 542.6 547.0 544.8 545.5 547.6 549.7 U.S. government securities 369.3 376.3 377.5 378.1 375.2 373.9 372.9 372.5 372.9 372.3 372.6 372.1 4 Other securities 138.9 142.8 144.7 151.8 159.4 165.0 169.7 174.5 171.9 173.2 175.0 177.6 Loans and leases in bank credit2 1,310.8 1,413.5 1,438.0 1,457.6 1,472.6 1,485.9 1,494.2 1,508.2 1,498.0 1,508.3 1,512.9 1,513.1 67 C Re o a m l m es e t r a c t i e a l and industrial 2 70 5 2 1 . .4 2 2 76 7 4 2 . . 8 3 2 7 7 7 7 6 . . 1 3 2 7 8 8 3 3 . . 8 6 2 7 8 8 6 7 . . 8 8 2 7 8 9 8 6 . . 8 6 8 29 0 1 2 . . 2 8 2 8 9 1 4 0 . .7 2 2 8 9 0 2 6 . . 8 3 2 80 9 9 4 . . 5 4 2 8 9 1 5 2 . .2 0 2 81 9 4 4 . . 5 8 8 Revolving home equity 36.1 40.6 41.2 41.6 42.0 45.0 46.4 46.8 46.6 46.8 46.8 46.9 i9n Co O ns th u e m r er 6 26 6 5 6 . . 1 2 7 28 2 2 4 . . 3 2 7 2 3 8 5 8 . . 1 2 7 29 4 0 1 . . 6 9 7 2 4 9 5 6 . . 8 9 7 2 5 9 1 9 . . 6 3 7 2 5 9 6 8 . . 4 0 7 30 6 0 3 . . 2 9 7 2 5 9 9 5 . . 7 7 7 30 6 1 2 . . 5 7 7 3 6 0 5 3 . . 4 0 7 3 6 0 7 0 . . 5 9 1I1? O Se th cu er r it l y o 3 a ns and leases 8 6 5 . . 7 5 8 6 7 . . 2 9 8 6 9 . . 5 9 92 6 . . 8 8 9 7 3 . . 2 9 94 7 . . 0 2 9 7 4 . . 5 7 9 7 5. . 5 5 9 7 5 . . 7 4 9 7 5 . . 7 3 9 7 5 . . 3 3 9 7 5. . 7 3 n Interbank loans 65.7 65.6 67.2 75.4 84.5 85.3 86.7 82.6 84.9 84.3 81.0 79.3 14 Cash assets4 81.7 80.8 79.1 81.3 81.7 82.2 82.5 78.7 76.3 77.6 83.7 76.1 15 Other assets5 98.9 112.9 111.9 110.9 110.2 108.9 112.2 107.8 107.4 105.6 111.8 105.7 16 Total assets6 2,041.8 2,167.2 2,193J 2,2293 2,257.4 2,274.6 2,291.6 2,297.5 2,284.9 2,294.7 2310.2 2,297.2 Liabilities 17 Deposits 1,531.2 1,605.3 1,643.4 1,696.5 1,723.5 1,749.0 1,765.4 1,770.9 1,760.0 1,771.1 1,779.8 1,769.0 1 18 9 T N r o a n n t s r a a c n t s i a o c n t ion 1, 2 2 9 3 7 3 . . 6 6 1, 3 3 0 0 1 3 . . 4 8 1, 2 3 9 4 6 7 . . 2 2 1, 2 3 9 9 7 8 . . 9 7 1, 3 4 0 2 1 1 . . 8 7 1, 2 4 9 4 9 9 . . 4 6 1, 3 4 0 6 0 5 . . 2 2 1, 2 4 9 7 5 5 . . 7 2 1, 2 4 8 7 6 4 . . 0 0 1, 2 4 9 7 3 7 . . 9 2 1, 3 4 0 7 5 4 . . 1 7 1, 2 4 9 7 8 0 . . 6 3 7.0 Large time 236.3 258.2 267.4 277.7 283.4 287.3 289.8 292.7 291.5 292.1 293.6 293.4 71 Other 997.3 1,045.7 1,079.8 1,120.9 1,138.3 1,162.3 1,175.4 1,182.6 1,182.5 1,185.0 1,181.2 1,177.0 22 Borrowings 295.3 346.3 344.6 340.7 339.7 334.2 327.6 323.4 325.1 322.6 321.3 323.5 73 From banks in the U.S 146.7 163.7 162.2 164.1 164.8 161.9 153.9 151.9 152.4 152.5 149.8 152.1 74 From others 148.6 182.5 182.4 176.6 174.9 172.3 173.7 171.5 172.7 170.1 171.5 171.4 25 Net due to related foreign offices .... 4.5 6.0 9.1 22.4 23.7 20.4 23.3 23.5 21.8 23.2 25.3 24.7 26 Other liabilities 60.0 58.9 54.8 45.5 46.3 47.7 49.2 50.5 50.1 49.9 51.3 50.7 27 Total liabilities 1391.1 2,016.4 2,051.9 2,105.1 2,133.1 2,151.2 2,165.4 2,1683 2,157.0 2,166.8 2,177.6 2,167.9 28 Residual (assets less liabilities)7 150.7 150.9 141.4 124.2 124.2 123.4 126.2 129.2 127.9 127.9 132.5 129.4 Not seasonally adjusted Assets ?9 Bank credit 1,818.7 1,939.4 1,965.6 1,988.3 2,010.7 2,029.2 2,038.8 2,055.6 2,044.7 2,054.0 2,060.5 2,063.1 30 Securities in bank credit 506.5 522.9 524.1 529.0 534.2 537.6 540.0 545.4 543.3 543.5 546.1 548.6 31 U.S. government securities 367.5 379.5 379.7 377.9 374.6 373.0 370.3 370.8 371.2 370.2 370.9 370.7 3? Other securities 138.9 143.3 144.4 151.1 159.6 164.5 169.7 174.6 172.1 173.3 175.1 177.9 33 Loans and leases in bank credit2 1,312.2 1,416.6 1,441.5 1,459.3 1,476.5 1,491.7 1,498.8 1,510.2 1,501.4 1,510.5 1,514.4 1,514.5 34 Commercial and industrial 250.4 274.9 279.1 283.9 284.9 287.1 290.9 292.7 292.0 292.7 293.2 293.3 35 Real estate 704.1 765.1 777.3 784.6 790.6 799.7 806.2 813.4 810.5 812.7 814.5 816.0 36 Revolving home equity 36.3 40.5 41.1 41.4 41.9 45.5 46.7 47.2 47.1 47.2 47.2 47.3 37 Other 667.8 724.6 736.2 743.2 748.7 754.2 759.5 766.2 763.4 765.5 767.3 768.8 38 Consumer 265.5 282.4 287.9 289.6 297.6 301.0 297.7 300.8 295.3 301.7 304.2 302.3 39 Credit cards and related plans. . n.a. n.a. n.a. 123.1 129.6 131.8 128.6 131.1 125.8 132.1 134.4 132.4 40 Other n.a. n.a. n.a. 166.5 168.0 169.2 169.1 169.7 169.5 169.6 169.8 169.9 41 Security3 6.7 6.2 6.5 6.8 7.2 7.2 7.5 7.5 7.7 7.7 7.3 7.3 47 Other loans and leases 85.6 87.9 90.7 94.4 96.2 96.6 96.6 95.7 95.9 95.7 95.2 95.6 41 Interbank loans 70.5 62.0 63.9 71.3 80.4 82.5 86.4 89.3 93.9 91.6 85.8 84.5 44 Cash assets4 84.7 80.6 78.5 80.0 78.9 81.8 82.2 81.9 76.6 83.1 84.7 82.7 45 Other assets5 100.1 112.0 111.7 112.8 111.9 108.5 112.1 109.2 110.4 108.0 110.1 107.8 46 Total assets6 2,050.6 2,169.4 2,194.6 2,226.5 2,255.7 2,275.4 2,293.0 2309.4 2,2993 2310.1 2314.4 2311.4 Liabilities 47 Deposits 1,542.2 1,604.5 1,640.7 1,691.2 1,718.8 1,746.9 1,768.3 1,783.9 1,777.3 1,787.7 1,786.0 1,781.3 48 Transaction 301.2 299.0 296.7 295.3 297.3 297.2 297.9 299.4 288.6 299.6 304.5 305.7 49 Nontransaction 1,241.0 1,305.6 1,344.0 1,396.0 1,421.5 1,449.8 1,470.4 1,484.5 1,488.7 1,488.1 1,481.4 1,475.6 50 Large time 236.3 258.2 267.4 277.7 283.4 287.3 289.8 292.7 291.5 292.1 293.6 293.4 51 Other 1,004.7 1,047.4 1,076.6 1,118.2 1,138.1 1,162.5 1,180.6 1,191.8 1,197.2 1,196.0 1,187.9 1,182.2 52 Borrowings 296.6 347.6 346.5 343.1 342.8 340.0 330.5 325.5 323.4 323.9 324.6 329.2 53 From banks in the U.S 147.2 163.1 163.9 166.5 167.7 165.5 156.5 152.9 151.7 153.0 151.3 154.7 54 From others 149.5 184.5 182.6 176.6 175.1 174.5 174.0 172.6 171.6 170.9 173.4 174.4 5.5 Net due to related foreign offices .... 4.5 6.0 9.1 22.4 23.7 20.4 23.3 23.5 21.8 23.2 25.3 24.7 56 Other liabilities 60.0 58.9 54.5 44.8 46.2 47.4 48.8 50.5 50.1 50.0 51.1 50.8 57 Total liabilities 1,903.4 2,017.0 2,050.9 2,10 IS 2,131.6 2,154.8 2,170.9 2,1833 2,172.5 2,184.7 2,187.0 2,185.9 58 Residual (assets less liabilities)7 147.2 152.4 143.7 125.0 124.1 120.6 122.1 126.1 126.8 125.4 127.4 125.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • February 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 1999 2000 2000 Nov.r Mayr Juner July1" Aug/ Sept.r Oct/ Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Seasonally adjusted Assets 1 Bank credit 541.8 588.4 581.4 582.0 586.5 593.8 580.4 574.9 574.6 566.1 576.7 578.7 2 Securities in bank credit 197.0 214.8 209.9 209.8 210.3 208.4 191.7 183.5 184.2 180.9 185.5 181.4 3 U.S. government securities 79.7 79.4 78.4 79.1 79.2 76.8 69.1 65.6 67.0 65.6 65.4 63.8 4 Other securities 117.3 135.4 131.5 130.7 131.1 131.7 122.6 117.9 117.2 115.3 120.1 117.6 5 Loans and leases in bank credit2 . . . 344.8 373.6 371.4 372.2 376.2 385.4 388.8 391.4 390.4 385.2 391.2 397.3 6 Commercial and industrial 196.2 206.4 206.7 205.0 206.6 204.4 201.8 201.9 201.7 201.9 201.4 202.3 7 Real estate 17.5 18.3 18.6 18.7 18.9 19.4 18.8 19.4 19.3 19.4 19.5 19.4 8 Security3 65.4 80.8 80.8 81.5 81.8 94.3 102.1 103.2 103.1 98.0 102.2 108.2 9 Other loans and leases 65.7 68.1 65.3 67.0 69.0 67.3 66.1 67.0 66.4 66.0 68.0 67.3 10 Interbank loans 24.1 30.4 26.3 23.5 22.5 24.2 27.8 27.7 27.1 26.5 25.3 31.5 11 Cash assets4 48.5 44.4 45.4 45.9 45.2 45.5 43.0 39.5 39.7 40.6 39.0 38.4 12 Other assets5 34.3 40.3 42.6 41.8 40.9 39.4 36.0 34.6 35.3 33.6 34.0 35.6 13 Total assets6 648.4 703.2 695J 692.9 694.7 702.6 686.9 676.3 676.4 666.5 674.6 683.8 Liabilities 14 Deposits 357.5 383.6 385.1 390.3 395.6 388.3 384.4 382.8 384.1 383.0 384.2 379.9 15 Transaction 10.6 11.1 11.3 11.3 10.8 9.7 10.4 10.5 10.7 10.3 10.6 10.3 16 Nontransaction 346.9 372.5 373.8 379.1 384.8 378.6 374.0 372.4 373.5 372.7 373.6 369.6 17 Borrowings 183.1 202.8 202.6 202.5 198.9 214.3 218.6 222.0 226.2 214.5 216.4 226.7 18 From banks in the U.S 25.0 18.1 19.2 21.0 17.0 19.3 18.9 19.5 24.2 19.5 14.7 18.4 19 From others 158.1 184.8 183.4 181.5 181.9 194.9 199.7 202.5 202.0 195.0 201.7 208.3 20 Net due to related foreign offices 45.1 21.9 20.2 18.2 23.4 24.3 16.7 6.1 4.2 8.0 4.8 7.7 21 Other liabilities 64.8 78.7 72.0 73.7 73.0 76.6 75.8 70.2 71.4 68.1 71.4 69.1 22 Total liabilities 650.4 687.0 679.9 684.8 690.8 703.4 695.4 681.1 686.0 673.6 676.8 683.4 23 Residual (assets less liabilities)7 -2.0 16.2 15.4 8.1 3.9 -.9 -8.5 -4.8 -9.6 -7.0 -2.2 .3 Not seasonally adjusted Assets 24 Bank credit 554.8 579.7 571.4 571.1 576.7 593.1 589.3 589.0 589.3 580.6 590.3 592.6 25 Securities in bank credit 206.9 211.5 203.7 202.7 204.5 208.6 199.2 194.2 195.7 192.4 196.0 191.1 26 U.S. government securities 81.2 80.4 78.5 78.1 77.6 74.7 68.7 66.9 68.7 67.0 66.0 65.3 27 Trading account 8.5 12.4 12.0 12.0 13.9 14.2 11.9 11.0 12.1 11.1 10.1 10.1 28 Investment account 72.8 68.0 66.5 66.1 63.7 60.4 56.9 55.9 56.6 55.9 55.9 55.2 29 Other securities 125.6 131.1 125.2 124.6 126.9 133.9 130.5 127.3 126.9 125.4 130.0 125.8 30 Trading account 84.4 86.9 81.4 80.7 82.4 91.0 89.9 87.3 86.3 85.2 90.7 85.9 31 Investment account 41.3 44.2 43.8 43.9 44.6 42.9 40.6 40.0 40.7 40.2 39.2 39.9 32 Loans and leases in bank credit2 . . . 347.9 368.2 367.8 368.4 372.1 384.5 390.1 394.8 393.6 388.3 394.3 401.5 33 Commercial and industrial 199.1 202.1 203.4 202.5 203.9 204.4 203.2 205.2 201.7 205.2 204.9 205.9 34 Real estate 17.6 18.2 18.5 18.5 18.7 19.2 19.1 19.4 19.5 19.4 19.5 19.4 35 Security3 64.8 80.7 81.1 81.3 81.9 94.2 101.4 102.5 102.5 96.9 101.4 107.9 36 Other loans and leases 66.3 67.2 64.8 66.2 67.6 66.7 66.3 67.7 67.0 66.8 68.5 68.4 37 Interbank loans 24.1 30.4 26.3 23.5 22.5 24.2 27.8 27.7 27.1 26.5 25.3 31.5 38 Cash assets4 51.4 43.3 44.7 44.2 43.7 44.6 43.9 41.9 41.5 43.5 41.1 41.4 39 Other assets5 34.4 39.7 40.4 39.9 40.2 38.7 35.3 34.7 35.2 33.1 34.1 36.2 40 Total assets6 664.3 692.8 682.4 678.4 682.7 700.2 695.9 692.9 692.8 683.4 690.4 7013 Liabilities 41 Deposits 360.2 384.4 38101..80 381.5 383.6 381.9 379.9 386.1 385.5 385.4 388.1 385.6 42 Transaction 10.7 10.7 11.2 10.7 10.2 10.6 10.6 10.6 10.6 10.6 10.6 43 Nontransaction 349.4 373.8 369.8 370.4 372.9 371.8 369.4 375.5 374.9 374.8 377.5 375.0 44 Borrowings 183.1 202.8 202.6 202.5 198.9 214.3 218.6 222.0 226.2 214.5 216.4 226.7 45 From banks in the U.S 25.0 18.1 19.2 21.0 17.0 19.3 18.9 19.5 24.2 19.5 14.7 18.4 46 From others 158.1 184.8 183.4 181.5 181.9 194.9 199.7 202.5 202.0 195.0 201.7 208.3 47 Net due to related foreign offices .... 46.9 17.7 18.8 17.3 23.2 23.6 16.9 7.7 3.6 8.8 7.3 12.0 48 Other liabilities 65.8 77.2 70.5 72.1 72.6 76.2 75.2 71.2 71.7 69.0 72.6 70.8 49 Total liabilities 655.9 682^ 672.6 673.5 678.3 696.0 690.6 687.0 687.1 677.7 684.4 695.1 50 Residual (assets less liabilities)7 8.4 10.6 9.7 4.9 4.3 4.3 5.3 5.9 5.6 5.7 6.0 6.3 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 1999 2000 2000 Nov.r May' Juner Julyr Aug.r Sept.' Oct.r Nov. Nov. 8 Nov. 15 Nov. 22 Nov. 29 Not seasonally adjusted MEMO Large domestically chartered banks. adjusted for mergers 51 Revaluation gains on off-balance-sheet items8 59.6 72.4 68.3 63.1 66.5 74.4 70.9 68.0 67.7 66.6 68.4 69.1 52 Revaluation losses on off-balancesheet items8 59.7 72.9 68.5 62.9 67.3 73.9 72.8 72.6 72.0 71.1 73.4 73.4 53 Mortage-backed securities9 251.0 252.6 250.0 242.2 237.8 238.0 239.4 239.6 239.6 239.5 239.1 240.1 54 Pass-through 173.0 178.0 177.7 173.0 169.8 170.3 173.2 173.6 173.0 173.7 173.5 174.3 55 CMO, REMIC, and other 78.0 74.6 72.2 69.2 68.1 67.6 66.2 65.9 66.5 65.8 65.6 65.8 56 Net unrealized gains (losses) on available-for-sale securities10 .... -11.0 -10.3 -8.7 -11.5 -10.8 -9.7 —8.7 -8.0 -8.3 -8.1 -8.1 -7.8 57 Off-shore credit to U.S. residents". . . . 24.8 23.5 22.4 22.2 22.1 22.1 22.3 23.1 23.0 23.6 23.0 23.0 58 Securitized consumers loans12 n.a. n.a. n.a. 87.4 86.6 85.9 80.8 80.5 80.4 80.1 80.6 80.6 59 Credit cards and related plans n.a. n.a. n.a. 72.4 72.0 71.8 67.2 67.3 67.1 66.9 67.5 67.5 60 Other n.a. n.a. n.a. 15.0 14.6 14.1 13.6 13.2 13.4 13.2 13.1 13.1 61 Securitized business loans12 n.a. n.a. n.a. 17.0 16.2 15.3 15.2 17.8 17.6 17.6 17.5 18.6 Small domestically chartered commercial banks, adjusted for mergers 62 Mortgage-backed securities9 197.1 206.8 207.7 207.7 210.4 212.0 213.2 214.4 214.0 213.8 215.9 213.9 63 Securitized consumer loans'2 n.a. n.a. n.a. 220.5 220.8 221.5 223.7 224.6 226.4 223.1 223.5 225.3 64 Credit cards and related plans n.a. n.a. n.a. 211.5 212.0 212.9 214.0 214.7 216.5 213.2 213.6 215.5 65 Other n.a. n.a. n.a. 9.0 8.8 8.6 9.7 9.9 9.9 9.9 9.9 9.8 Foreign-related institutions 66 Revaluation gains on off-balancesheet items8 44.8 51.2 44.7 41.4 43.0 48.6 47.5 44.8 45.3 44.0 46.3 43.2 67 Revaluation losses on off-balancesheet items8 42.9 47.7 40.7 38.2 40.1 45.3 44.6 40.8 41.2 40.1 42.2 39.2 68 Securitized business loans12 n.a. n.a. n.a. 23.9 23.7 23.1 23.0 22.8 22.8 22.8 23.0 22.4 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. I. 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 availableof 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 • February 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 May June July Aug. Sept. Oct. 1 All issuers 674,904 775,371 966,699 1,163,303 1,403,023 1,497,712 1,516,205 1,551,668 1.559,054 1,557,700 1,587,591 Financial companies' 2 Dealer-placed paper, total2 275,815 361,147 513,307 614,142 786,643 884,299 884,578 900,651 905,634 899,853 912,739 3 Directly placed paper, total3 210,829 229,662 252,536 322.030 337,240 302,305 300,718 309,076 303,307 315,039 328,049 4 Nonfinancial companies4 188,260 184.563 200,857 227,132 279,140 311,109 330,909 341,941 350,113 342,809 346,803 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 by 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 Date of change Average rate 1998—Jan. 1 8.50 1998 8.35 1999—Jan. . 7.75 2000—Jan. . Sept. 30 8.25 1999 8.00 Feb. 7.75 Feb. Oct. 16 8.00 2000 9.23 Mar. 7.75 Mar. Nov. 18 7.75 Apr. 7.75 Apr. 1998—Jan. 8.50 May 7.75 May 1999—July 1 8.00 Feb. 8.50 June 7.75 June Aug. 25 8.25 Mar. 8.50 July . 8.00 July . Nov. 17 8.50 Apr. 8.50 Aug 8.06 Aug. May 8.50 Sept. 8.25 Sept. 2000—Feb. 3 8.75 June 8.50 Oct. . 8.25 Oct. . Mar. 22 9.00 July 8.50 Nov. 8.37 Nov. May 17 9.50 Aug. 8.50 Dec. 8.50 Dec. Sept. 8.49 Oct 8.12 Nov. 7.89 Dec. 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 Aug. Sept. Oct. Nov. Oct. 27 Nov. 3 Nov. 10 Nov. 17 Nov. 24 MONEY MARKET INSTRUMENTS 1 Federal funds1'2'3 5.46 5.35 4.97 6.50 6.52 6.51 6.51 6.51 6.55 6.49 6.52 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 Nonfinancia! 3 1-month 5.57 5.40 5.09 6.47 6.48 6.48 6.49 6.47 6.50 6.47 6.49 6.50 4 2-month 5.57 5.38 5.14 6.48 6.47 6.48 6.52 6.48 6.48 6.51 6.52 6.52 5 3-month 5.56 5.34 5.18 6.49 6.47 6.51 6.50 6.50 6.50 6.49 6.51 6.48 Financial 6 1-month 5.59 5.42 5.11 6.49 6.49 6.48 6.49 6.48 6.49 6.48 6.49 6.49 7 2-month 5.59 5.40 5.16 6.49 6.48 6.47 6.54 6.46 6.49 6.52 6.54 6.57 8 3-month 5.60 5.37 5.22 6.49 6.47 6.52 6.52 6.52 6.52 6.51 6.52 6.53 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)xiper, 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 market3'10 17 1-month 5.54 5.49 5.19 6.55 6.56 6.55 6.56 6.55 6.55 6.55 6.55 6.56 18 3-month 5.62 5.47 5.33 6.61 6.60 6.67 6.65 6.65 6.66 6.65 6.64 6.65 19 6-month 5.73 5.44 5.46 6.76 6.68 6.65 6.63 6.64 6.65 6.65 6.62 6.61 20 Eurodollar deposits, 3-month3'" 5.61 5.45 5.31 6.61 6.59 6.66 6.64 6.65 6.63 6.65 6.64 6.64 U.S. Treasury bills Secondary market3'5 21 3-month 5.06 4.78 4.64 6.09 6.00 6.11 6.17 6.18 6.19 6.22 6.18 6.18 22 6-month 5.18 4.83 4.75 6.07 5.98 6.04 6.06 6.08 6.09 6.10 6.07 6.06 23 1-year 5.32 4.80 4.81 5.87 5.79 5.72 5.84 5.74 5.86 5.89 5.86 5.87 Auction high""1" 24 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 maturitiesL 7.7 1-year 5.63 5.05 5.08 6.18 6.13 6.01 6.09 6.01 6.11 6.14 6.09 6.09 28 2-year 5.99 5.13 5.43 6.23 6.08 5.91 5.88 5.88 5.92 5.97 5.89 5.86 29 3-year 6.10 5.14 5.49 6.17 6.02 5.85 5.79 5.80 5.86 5.90 5.80 5.75 30 5-year 6.22 5.15 5.55 6.06 5.93 5.78 5.70 5.73 5.82 5.82 5.69 5.63 31 7-year 6.33 5.28 5.79 6.05 5.98 5.84 5.78 5.75 5.85 5.93 5.79 5.71 32 10-year 6.35 5.26 5.65 5.83 5.80 5.74 5.72 5.66 5.76 5.85 5.73 5.65 33 20-year 6.69 5.72 6.20 6.02 6.09 6.04 5.98 5.94 6.02 6.09 5.99 5.91 34 30-year 6.61 5.58 5.87 5.72 5.83 5.80 5.78 5.72 5.80 5.88 5.79 5.71 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 5.43 5.40 5.46 5.38 5.42 5.35 5.32 5.44 5.44 37 Baa 5.50 5.14 5.70 6.01 6.12 6.22 6.17 6.18 6.15 6.15 6.20 6.21 38 Bond Buyer series'5 5.52 5.09 5.43 5.51 5.56 5.59 5.54 5.53 5.54 5.60 5.57 5.55 CORPORATE BONDS 39 Seasoned issues, all industries16 7.54 6.87 7.45 7.88 7.98 7.95 7.90 7.89 7.93 7.98 7.89 7.86 Rating group 40 Aaa 7.27 6.53 7.05 7.55 7.62 7.55 7.45 7.45 7.49 7.53 7.45 7.41 41 Aa 7.48 6.80 7.36 7.70 7.83 7.81 7.75 7.75 7.79 7.84 7.75 7.71 42 A 7.54 6.93 7.53 8.02 8.13 8.11 8.09 8.06 8.11 8.17 8.09 8.05 43 Baa 7.87 7.22 7.88 8.26 8.35 8.34 8.28 8.29 8.31 8.35 8.26 8.27 MEMO Dividend-price ratio17 44 Common stocks 1.77 1.49 1.25 1.09 1.10 1.15 1.16 1.16 1.12 1.13 1.15 1.20 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly and 9. Representative closing yields for acceptances of the highest-rated money center banks. G. 13 (415) monthly statistical releases. For ordering address, see inside front cover. 10. An average of dealer offering rates on nationally traded certificates of deposit. 1. The daily effective federal funds rate is a weighted average of rates on trades through 11. Bid rates for eurodollar deposits collected around 9:30 a.m. Eastern time. Data are for New York brokers. indication purposes only. 2. Weekly figures are averages of seven calendar days ending on Wednesday of the 12. Auction date for daily data; weekly and monthly averages computed on an issue-date current week; monthly figures include each calendar day in the month. basis. On or after October 28, 1998, data are stop yields from uniform-price auctions. Before 3. Annualized using a 360-day year or bank interest. that, they are weighted average yields from multiple-price auctions. 4. Rate for the Federal Reserve Bank of New York. 13. Yields on actively traded issues adjusted to constant maturities. Source: U.S. Depart- 5. Quoted on a discount basis. ment of the Treasury. 6. Interest rates interpolated from data on certain commercial paper trades settled by the 14. General obligation bonds based on Thursday figures; Moody's Investors Service. Depository Trust Company. The trades represent sales of commercial paper by dealers or 15. State and local government general obligation bonds maturing in twenty years are used direct issuers to investors (that is, the offer side). See Board's Commercial Paper Web pages in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' (http://www.federalreserve.gov/releases/cp) for more information. Al rating. Based on Thursday figures. 7. An average of offering rates on commercial paper for firms whose bond rating is AA or 16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected the equivalent. Series ended August 29, 1997. long-term bonds. 8. An average of offering rates on paper directly placed by finance companies. Series 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in ended August 29, 1997. the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic Nonfinancial Statistics • February 2001 1.36 STOCK MARKET Selected Statistics 2000 IInnddiiccaattoorr 11999977 11999999 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 456.99 550.65 619.52 622.28 646.82 640.07 649.61 653.27 666.14 667.05 646.53 646.64 2 Industrial 574.97 684.35 775.29 790.35 822.76 814.75 819.54 825.28 837.23 829.99 797.00 800.88 3 Transportation 415.08 468.61 491.62 384.39 406.14 411.50 395.09 410.67 419.84 404.23 403.20 434.92 4 Utility 143.87 190.52 284.82 509.59 502.78 487.17 501.93 484.19 459.91 463.76 469.16 455.66 5 Finance 424.84 516.65 530.97 491.29 524.05 523.22 544.51 556.32 597.17 616.89 587.76 600.45 6 Standard & Poor's Corporation (1941-43 = 10)1 873.43 1,085.50 1,327.33 1,442.21 1.461.36 1,418.48 1,461.96 1,473.00 1,485.46 1,468.06 1.390.14 1,375.04 7 American Stock Exchange (Aug. 31, 1973 = 50)2 628.34 682.69 770.90 1,014.03 918.77 917.76 934.90 930.66 920.54 952.74 913.64 892.60 Volume of trading (thousands of shares) 8 New York Stock Exchange 523,254 666,534 799,554 1.124,097 1,047,960 893,896 971,137 941,694 875,087 1,026,597 1,167,025 1,015,606 9 American Stock Exchange 24,390 28,870 32,629 59,449 63,054 44,146 42,490 36,486 35,695 47,047 57,915 58,541 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers 1,361,600 1,685,820 2,130,152 278,530 251,700 240,660 247,200 244,970 247,560 250,780 233,376 219,110 Free credit balances at brokers4 11 Margin accounts5 293,000 405,180 532.500 65,020 65,930 66,170 64,970 71,730 68,020 70,959 83,131 96,730 12 Cash accounts 517,030 633,725 757.345 85,530 76,190 73,500 74,140 74,970 72,640 74,766 73,271 74,050 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 June July Aug. Sept. Oct. Nov. U.S. budget1 1 Receipts, total 1,721,798 1,827,454 2,025,038 214,875 134,074 138,128 219,471 135,111 125,666 2 On-budget 1,305,999 1,382,986 1,544,455 168,319 97,681 101,429 176,692 101,121 89,216 3 Off-budget 415,799 444,468 480,583 46,556 36,393 36,699 42,779 33,990 36,450 4 Outlays, total 1,652,224 1,702,942 1,788,140 158,987 129,013 148,555 153,744 146,431 149,356 5 On-budget 1,335,948 1,382,262 1,457,376 152,308 99,404 115,539 114,748 115,840 116,737 6 Off-budget 316,604 320,778 330,765 6,679 29,609 33,016 38,901 30,592 32,619 7 Surplus or deficit (-), total 69,246 124,414 236,897 55,888 5,061 -10,427 65,727 -11,321 -23,690 8 On-budget -29,949 724 87,079 16,011 -1,723 -14,110 61,944 -14,719 -27,521 9 Off-budget 99,195 123,690 149,818 39,877 6,784 3,683 3,878 3,398 3,831 Source of financing (total) 10 Borrowing from the public -51,211 -88,674 -222,672 -23,131 -31,307 9,995 -32,334 -29,666 41,325 11 Operating cash (decrease, or increase (—)) 4,743 -17,580 3,799 -34,350 23,384 20,873 -39,479 42,653 -1,431 12 Other2 -22,778 -18,160 -18,024 1,593 2,862 -20,441 6,086 -1,666 -16,204 MEMO 13 Treasury operating balance (level, end of period) 38,878 56,458 52,659 57,437 34,053 13,180 52,659 10,006 11,437 14 Federal Reserve Banks 4,952 6,641 8,459 6,208 5,392 5,961 8,459 5,360 4,382 15 Tax and loan accounts 33,926 49,817 44,199 51,229 28,661 7,218 44,199 4,646 7,055 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 NonfinancialS tatistics • February 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 Sept. Oct. Nov. RECEIPTS 1 All sources 1,827,454 2,025,038 825,057 966,045 892,266 1,089,760 219,471 135,111 125,666 2 Individual income taxes, net 879,480 1,004.461 392,332 481,907 425,451 550,208 104,402 75,969 60,489 3 Withheld 693,940 780,397 339,144 351,068 372,012 388,526 59,766 68,287 62,855 4 Nonwithheld 308,185 358,049 65,204 240,278 68,302 281,103 48,229 8,799 2,320 5 Refunds 122,706 134,046 12,032 109,467 14,841 119,477 3,593 1,118 4,686 Corporation income taxes 6 Gross receipts 216,324 235,655 104,163 106,861 110,111 119,166 46,183 7,113 4,292 7 Refunds 31,645 28.367 14,250 17,092 13,996 13,781 2,746 5,404 2,245 8 Social insurance taxes and contributions, net . . . 611,833 652,851 268,466 324,831 292,551 353,514 56,293 47,155 51,383 9 Employment taxes and contributions2 580,880 620,447 256,142 306,235 280,059 333,584 55,682 45,247 48,536 10 Unemployment insurance 26,480 27,641 10,121 16,378 10,173 17,562 168 1,509 2,43! 11 Other net receipts3 4,473 4,763 2,202 2,216 2,319 2,368 443 399 416 12 Excise taxes 70,414 68,866 33,366 31,015 34,262 33,532 7,769 4,235 6,030 13 Customs deposits 18,336 19,913 9.838 8,440 10,287 9,218 1,823 1,900 1,640 14 Estate and gift taxes 27,782 29,010 12,359 14,915 14,001 15,073 2,168 2,868 2,141 15 Miscellaneous receipts4 34,929 42,647 18,735 15,140 19,569 22,831 3,579 1,275 1,935 OUTLAYS 16 All types l,702,942r l,788,140r 877,414 817,227 882,465 892,947 153,744r 146,431 149,356 17 National defense 274,873 293,856 140,196 134,414 149,573 143,476 28,243 21,478 24,445 18 International affairs 15,243 17,252 8,297 6,879 8,530 7,250 1,553 1,795 1,326 19 General science, space, and technology 18,125 19,707 10,142 9,319 10,089 9,601 1,716 1,676 1,776 20 Energy 912 -1,020 699 797 -90 -893 530 -1,200 74 21 Natural resources and environment 23,970 23,295 12,671 10,351 12,100 10,814 2,542 2,132 2,100 22 Agriculture 23,011 38,472 16,757 9,803 20,887 11,164 6,842 5,025 3,547 23 Commerce and housing credit 2,649 3,321 4,046 -1,629 7,353 -2,497 4,591 843 -709 24 Transportation 42,531 46,211 20,836 17,082 23,199 21,054 4,209 4,729 4,221 25 Community and regional development 11,870 11,687 6,972 5,368 6,806 5,050 975 1,211 1,133 26 Education, training, employment, and social services 56,402 58,364 27,762 29,003 27,532 31,234 3,616 5,061 5,014 27 Health 141,079 154,215 67,838 69,320 74,490 75,871 13,566 14,799 13,111 28 Social security and Medicare 580,488 606,552 316,809 261,146 295,030 306,966 50,381 51,766 51,481 29 Income security 237,707 247,380 109.481 126,552 113,504 133,915 20,031 16,485 18,950 30 Veterans benefits and services 43,212 47,084 22.750 20,105 23,412 23,174 5,619 2,222 3,644 31 Administration of justice 25,924 27,704 12,041 13,149 13,459 13,981 2,398 2,545 2,741 32 General government 15,771 13,721 9,136 6,641 7,010 6,198 1,017 1,239 1,134 33 Net interest5 229,735 222,825 116,954 116,655 112,420 115,545 12,584 18,399 18,916 34 Undistributed offsetting receipts6 -40,445 -42,581 -25,793 -17,724 -22,850 -19,346 -6,766 -3,775 -3,547 1. Functional details do not sum to total outlays for calendar year data because revisions to 4. Deposits of earnings by Federal Reserve Banks and other miscellaneous receipts. monthly totals have not been distributed among functions. Fiscal year total for receipts and 5. Includes interest received by trust funds. outlays do not correspond to calendar year data because revisions from the Budget have not 6. Rents and royalties for the outer continental shelf, U.S. government contributions for been fully distributed across months. employee retirement, and certain asset sales. 2. Old-age, disability, and hospital insurance, and railroad retirement accounts. SOURCE. Fiscal year totals: U.S. Office of Management and Budget, Budget of the U.S. 3. Federal employee retirement contributions and civil service retirement and Government. Fiscal Year 200I\ monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance All 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 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 bonds' 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 296.6 300.3 237.3 246.3 246.3r 235.1 219.7 n.a. 20 Mutual funds 315.8 321.5 343.2 348.6r 348.6r 338.9r 318.6 n.a. 21 Insurance companies 214.1 176.6 144.5 125.3r 125.3r 124.0r 120.9 n.a. 22 State and local treasuries6 257.0 239.3 269.3 266.8 266.8 257.2 256.4 n.a. Individuals 23 Savings bonds 187.0 186.5 186.7 186.5 186.5r 185.3 184.6r 184.7 24 Pension funds 342.8 359.4 374.4 384.5 384.5 385.9 384.5 n.a. 25 Private 139.3 142.5 157.8 171.3 171.3 174.8 175.5 n.a. 26 State and Local 203.5 216.9 216.6 213.2 213.2 211. V 209.0 n.a. 27 Foreign and international7 1,102.1 1,241.6 1,278.7 1,268.8 1,268.8 1,273.9 1,248.9 1,225.2 28 Other miscellaneous investors6'8 715.8 589.5 498.8 407.1 407.1 382.5 253.8 n.a. 1. The US. Treasury first issued inflation-indexed securities during the first quarter of 1997. 7. Includes nonmarketable foreign series treasury securities and treasury deposit funds. 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Excludes treasury securities held under repurchase agreements in custody accounts at the tion, depository bonds, retirement plan bonds, and individual retirement bonds. Federal Reserve Bank of New York. 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- 8. Includes individuals, government-sponsored enterprises, brokers and dealers, bank rency held by foreigners. personal trusts and estates, corporate and noncorporate businesses, and other investors. 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. SOURCE. U.S. Treasury Department, data by type of security, Monthly Statement of the 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual Public Debt of the United States; data by holder, Treasury Bulletin. holdings; data for other groups are Treasury estimates. 6. In March 1996, in a redefinition of series, fully defeased debt backed by nonmarketable federal securities was removed from "Other miscellaneous investors" and added to "State and local treasuries." The data shown here have been revised accordingly. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A28 Domestic NonfinancialS tatistics • February 2001 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2000 2000, week ending IItteemm Aug. Sept. Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Nov. 29 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 21,487 24,438 26,999 26,749 25,644 24,964 21,269 38,246 38,933 32,325 22,990 35,664 Coupon securities, by maturity 2 Five years or less 84,941 117,915 139,243 121,841 142,852 146,449 141,987 136,248 123,038 114,912 86,544 120,857 3 More than five years 62,777 69,458 67,524 67,886 62,610 68,600 67,826 70,445 68,022 62,882 49,039 59,954 4 Inflation-indexed 1,185 1,490 1,987 1,000 4,070 2,150 1,675 831 938 643 1,071 1,446 Federal agency 5 Discount notes 53,668 50,165 51,052 54,014 50,581 51,999 47,189 52,948 46,558 46,902 56,595 57,434 Coupon securities, by maturity 6 One year or less 1,314 1,160 1,082 1,058 730 1,107 1,164 1,317 1,324 1,024 974 749 7 More than one year, but less than or equal to five years 8,879 9,860 12,597 9,922 15,099 10,935 16,278 9,580 10,633 11,754 6,812 9,376 8 More than five years 7,002 9,925 11,659 8,365 11,972 8,979 12,925 15,584 7,445 6,924 5,193 7,128 9 Mortgage-backed 67,487r 76,954r 80,367r 60,673r 109,182r 112,689 51,511 61,990 115,204 99,137 38,129 71,318 By type of counterparty With interdealer broker 10 U.S. Treasury 81,566 101,973 102,544 103,159 102,320 105,704 99,613 102,022 98,148 89,680 71,765 96,092 11 Federal agency 8,089 9,811 10,680 8,589 10.182 9,385 14,588 9,482 8,447 9,271 7,446 8,418 12 Mortgage-backed 25,460 28,514r 26,882 19,705 34,264 33,514 20,349 24,761 32,315 24,834 14,081 22,691 With other 13 U.S. Treasury 88,823 111,328 133,209 114,317 132,855 136,460 133,144 143,747 132,782 121,081 87,878 121,829 14 Federal agency 62,774 61,299 65,710 64,770 68,199 63,635 62,968 69,946 57,513 57,333 62,127 66,269 15 Mortgage-backed 42,027r 48,440r 53,485r 40,968r 74,918r 79,175 31,162 37,229 82,889 74,302 24,048 48,627 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills n.a. 0 0 0 0 n.a. 0 0 0 n.a. n.a. n.a. Coupon securities, by maturity 17 Five years or less 3,467 3,119 2,497 1,678 2,547 2,534 3,263 2,058 1,965 2,663 2,849 6,098 18 More than five years 10,960 11,756 10,472 10.390 9,507 10,129 10,740 11,590 11,889 10,599 10,120 19,774 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 109 165 86 n.a. 131 57 106 52 34 60 67 46 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 1,149 1,350 1,217 751 970 1,799 956 1,412 2,012 1,285 1,879 900 27 More than five years 2,821 3,382 3,829 3,640 3,835 4,313 3,367 3,939 4,820 3,605 2,926 3,048 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 34 38 0 0 0 0 0 0 0 0 0 0 32 More than five years 2 6 102 n.a. n.a. 102 n.a. n.a. 0 320 n.a. 104 33 Mortgage-backed 1,145 1,097 1,189 1,578 1,719 874 1,287 638 2,510 703 1,353 360 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A29 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2000 2000, week ending IItteemm Aug. Sept. Oct. Oct. 4 Oct. 11 Oct. 18 Oct. 25 Nov. 1 Nov. 8 Nov. 15 Nov. 22 Positions2 NET OUTRIGHT POSITIONS^ By type of security 1 U.S. Treasury bills 2,426 9,758 4,172 2,049 3,151 1,661 3,095 10,965 4,413 8,272 3,785 Coupon securities, by maturity 2 Five years or less -29,287 -29,392 -30,472 -31,857 -34,212 -27,319 -27,018 -32,896 -28,111 -29,549 -28,265 3 More than five years -18,943 -17,375 -17,380 -20,181 -19,684 -14,297 -13,550 -20,889 -10,054 -13,323 -10,171 4 Inflation-indexed 2,711 2,452 3,125 2,264 2,882 3,251 3,390 3,526 3,084 3,334 3,410 Federal agency 5 Discount notes 31,912 37,057 33,428 37,785 34,342 30,297 35,388 30,822 29,824 30,166 29,728 Coupon securities, by maturity 6 One year or less 13,638 13,999 13,990 13,751 13,882 14,277 13,787 14,176 14,896 17,318 16,125 7 More than one year, but less than or equal to five years 5,089 4,628 5,672 3,926 6,032 4,333 8,296 4,918 9,516 7,014 6,217 8 More than five years 1,281 1,696 1,978 3,748 3,239 1,951 350 1,257 3,579 4,490 4,667 9 Mortgage-backed 18,646r 14,544r 14,541 15,420 10,702 12,563 22,545 11,406 13,852 11,158 11,308 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S.'Treasury bills .' n.a. 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 11,726 4,480 1,995 1,891 1,919 921 2,083 3,304 3,902 1,220 2,458 12 More than five years -329 1,600 1,365 3,790 2,454 186 -64 1,521 -515 -1,414 -3,844 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 -582 -737 -1,232 -832 -1,320 -1,345 -1,309 -1,175 -1,186 -1,356 -1,450 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 1,723 2,489 1,541 2,046 1,789 1,755 1,298 949 -1,601 -1,587 -2,132 21 More than five years 1,324 1,242 771 -844 651 949 1,470 967 -13 323 54 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 208 88 41 63 28 73 25 24 -1 -304 -309 26 More than five years 181 33 208 104 95 277 311 207 n.a. 248 206 27 Mortgage-backed 5,009 4,328 3,895 4,065 3,615 3,470 4,090 4,377 2,118 1,661 4,107 Financing5 Reverse repurchase agreements 28 Overnight and continuing 283,661 282,991 289,809 293,759 279,418 294,586 272,423 314,011 300,565 326,471 279,769 29 Term 782,717 777,783 832,733 778,462 801,856 821,856 873,787 869,730 909,956 758,572 825,576 Securities borrowed 30 Overnight and continuing 285,382 283,528 289,467 285,566 292,300 296,145 289,248 281,225 283,982 279,538 263,438 31 Term 114,470 1 14,413 117,801 119,912 118,622 116,806 117,024 117,503 120,515 120,590 127,509 Securities received as pledge 32 Overnight and continuing 2,367 2,232 2,228 2,169 2,184 2,259 2,287 2,214 2,527 2,599 2,909 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 748,503 738,371 729,081 732,321 719,909 734,958 723,178 737,650 743,744 757,881 642,402 35 Term 689,557 707,207 772,976 714,107 732,376 775,093 806,465 818,047 860,069 717,776 848,419 Securities loaned 36 Overnight and continuing 7,705 6,935 7,252 6,976 7,214 7,233 7,344 7,396 8,400 8,446 7,995 37 Term 4,295 6,189 5,314 5,682 5,429 5,427 5,160 4,984 4,498 4,410 4,418 Securities pledged 38 Overnight and continuing 60,868 61,552 60,045 62,526 60,986 60,206 58,688 58,686 59,855 56,556 54,741 39 Term 4,203 4,432 4,689 4,771 4,806 4,703 4,617 4,564 4,560 4,162 3,345 Collateralized loans 40 Total 23,695 22,972 27,796 26,125 27,168 28,677 29,648 26,455 26,942 27,820 28,222 1. Data for positions and financing are obtained from reports submitted to the Federal securities are included when the time to delivery is more than five business days. Forward Reserve Bank of New York by the U.S. government securities dealers on its published list of contracts for mortgage-backed agency securities are included when the time to delivery is primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar more than thirty business days. days of the report week are assumed to be constant. Monthly averages are based on the 4. Futures positions reflect standardized agreements arranged on an exchange. All futures number of calendar days in the month. positions are included regardless of time to delivery. 2. Securities positions are reported at market value. 5. Overnight financing refers to agreements made on one business day that mature on the 3. Net outright positions include immediate and forward positions. Net immediate posi- next business day; continuing contracts are agreements that remain in effect for more than one tions include securities purchased or sold (other than mortgage-backed agency securities) that business day but have no specific maturity and can be terminated without advance notice by have been delivered or are scheduled to be delivered in five business days or less and either party; term agreements have a fixed maturity of more than one business day. Financing "when-issued" securities that settle on the issue date of offering. Net immediate positions for data are reported in terms of actual funds paid or received, including accrued interest. mortgage-backed agency securities include securities purchased or sold that have been NOTE, "n.a." indicates that data are not published because of insufficient activity. delivered or are scheduled to be delivered in thirty business days or less. Forward positions reflect agreements made in the over-the-counter market that specify delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • February 2001 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2000 AAggeennccyy 11999966 11999977 11999988 11999999 May June July Aug. Sept. 1 Federal and federally sponsored agencies 925,823 1,022,609 1,296,477 1,616,492 193,776 1,706,709 1,726,016 1,763,089 1,776,334 2 Federal agencies 29,380 27,792 26,502 26,376 26,052 26,669 26,094 25,892 25,993 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 84 102 205 126 184 185 205 210 227 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 26,046 26,663 26,088 25,886 25,987 9 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 Federally sponsored agencies7 896,443 994,817 1,269,975 1,590,116 1,677,265 1,680,040 1,699,922 1,737,197 1,750,341 11 Federal Home Loan Banks 263,404 313,919 382,131 529,005 557,506 568,438 565,037 572,836 580,579 12 Federal Home Loan Mortgage Corporation 156,980 169,200 287,396 360,711 392,555 384,286 399,370 412,656 406,936 13 Federal National Mortgage Association 331,270 369,774 460,291 547,619 571,800 578,500 579,448 595,117 607,000 14 Farm Credit Banks8 60,053 63,517 63,488 68,883 70,036 69,541 69,757 70,139 71,055 15 Student Loan Marketing Association9 44,763 37,717 35,399 41,988 43,144 37,263 44,223 44,113 42,423 16 Financing Corporation10 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 1/ Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 58,172 49,090 44,129 42,152 39,102 38,513 38,143 38,040 42,837 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 1,431 552 4 * f 21 Postal Service6 n.a. n.a. T T T T T T T 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2 2 3 4 T U e n n i n te e d s s S e t e a t V es a l R le a y i l A w u ay th o A r s it s y o ciation6 n n . . a a . . n n . . a a . . •1 i 1 1 1 t 1 1 I 1 1 t I Other lending14 25 Farmers Home Administration 18,325 13,530 9,500 6,665 6,140 6,040 5,760 5,660 5,540 26 Rural Electrification Administration 16,702 14,898 14,091 14,085 13,221 13,121 13,165 13,238 12,989 27 Other 21,714 20,110 20,538 21,402 19,741 19,352 19,218 19,142 24,308 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 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 214,694 262,342 215,427 14,233 14,136 20,208 12,827 15,284 15,598 18,035 18,079 By type of issue 2 General obligation 69,934 87,015 73,308 4,598 6,051 8,581 4,256 5,194 6,888 5,871 5,044 3 Revenue 134,989 175,327 142,120 9,635 8,086 11,628 8,572 10,090 8,710 12,163 13,036 By type of issuer 4 State 18,237 23,506 16,376 1,371 1,102 2,907 783 1,011 2,022 3,005 1,942 5 Special district or statutory authority2 134,919 178,421 152,418 10,229 9,639 13,520 8,545 10,728 10,152 11,224 12,311 6 Municipality, county, or township 70,558 60,173 46,634 2,633 3,396 3,782 3,500 3,545 3,424 3,806 3,827 7 Issues for new capital 135,519 160,568 161,065 12,029 12,481 16,987 11,297 12,402 13,968 16,387 14,520 By use of proceeds 8 Education 31,860 36,904 36,563 2,484 3,662 4,465 3,185 3,630 3,210 3,492 3,446 9 Transportation 13,951 19,926 17,394 768 1,778 1,093 1,947 1,979 1,574 2,575 2,124 10 Utilities and conservation 12,219 21,037 15,098 729 537 1,141 353 1,409 1,408 1,272 1,973 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 9,099 762 585 1,150 632 281 387 730 500 13 Other purposes 35,095 42,450 47,896 3,903 3,557 5,776 2,543 3,564 5,243 6,558 3,787 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 Mar. Apr. May June July Aug. Sept. Oct. 1 AH issues1 929,256 1,128,491 1,072,866 113,093 61,963 62,939 100,615 65,511 82,752 94,492r 59,114 2 Bonds2 811,376 1,001,736 941,298 96,148 40,941 58,233 92,742 57,476 69,875 88,102 53,345 By type of offering 3 Sold in the United States 708,188 923,771 818,683 87,603 36,724 45,986 75,271 40,753 56,133 73,516 47,415 4 Sold abroad 103,188 77,965 122,615 8,545 4,217 12,247 17,471 16,723 13,742 14,586r 5,930 MEMO 5 Private placements, domestic n.a. n.a. n.a. 0 228 2,694 3,391 1,038 241 376 126.8 By industry group 6 Nonfinancial 222,603 307,935 293,963 28,086 8,060 20,832 29,412 15,885 17,947 24,483 12,547 7 Financial 588,773 693,801 647,335 68,062 32,881 37,401 63,331 41,592 51,928 63,619 40,799 8 Stocks3 173,330 205,605 217,868 16,945 21,022 4,706 7,873 8,035 12,877 6,390r 9,121 By type of offering 9 Public 117,880 126,755 131,568 16,945 21,022 4,706 7,873 8,035 12,877 6,390r 99,,112211 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 15,679 16,763 4,522 6,521 7.773 8,645 6,205r 8,278 12 Financial 57,494 52,642 21,284 1,266 4,259 184 1,352 262 4,232 185 843 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data are not available. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic NonfinancialS tatistics • February 2001 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2000 IItteemm 11999988 11999999 Apr. May June July Aug. Sept. Oct/ Nov. 1 Sales of own shares2 1,461,430 1,791,894 202,248 172,718 181,866 166,815 179,890 159,809 169,071 147,268 2 Redemptions of own shares 1,217,022 1,621,987 176,671 162,984 161,462 151,717 159,027 147,644 153,067 139,300 3 Net sales3 244,408 169,906 25,577 9,735 20,404 15,098 20,864 12,166 16,004 7,968 4 Assets4 4,173,531 5,233,191 5,391,187 5,232,319 5,458,914 5,392,308 5,745,264 5,550,176 5,442,937 5,004,095 5 Cash5 191,393 219,189 254,819 260,426 259,241 258,472 261,967 280,192 302,682 304,462 6 Other 3,982,138 5,014,002 5,136,368 4,971,892 5,199,673 5,133,836 5,483,298 5,269,984 5,140,255 4,699,633 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 Q1 Q2 Q3 Q4 Ql Q2 Q3r 1 Profits with inventory valuation and capital consumption adjustment 833.8 815.0 856.0 803.4 852.0 836.8 842.0 893.2 936.3 963.6 970.3 2 Profits before taxes 792.4 758.2 823.0 742.3 797.6 804.5 819.0 870.7 920.7 942.5 945.1 3 Profits-tax liability 237.2 244.6 255.9 239.4 247.8 250.8 254.2 270.8 286.3 292.0 290.6 4 Profits after taxes 555.2 513.6 567.1 502.9 549.9 553.7 564.8 599.9 634.4 650.4 654.4 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 220.0 162.1 196.4 146.9 188.7 186.5 190.9 219.3 247.1 257.4 254.4 7 Inventory valuation 8.4 17.0 -9.1 19.9 11.4 -8.9 -19.7 -19.2 -25.0 -13.6 -4.5 8 Capital consumption adjustment 32.9 39.9 42.1 41.2 42.9 41.2 42.7 41.6 40.6 34.7 29.7 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 Qi Q2R Q3 ASSETS 1 Accounts receivable, gross2 663.3 711.7 811.5 733.8 756.5 776.3 811.5 848.7 884.4 900.1 2 Consumer 256.8 261.8 279.8 261.7 269.2 271.0 279.8 285.4 294.1 301.9 3 Business 318.5 347.5 405.2 362.8 373.7 383.0 405.2 434.6 454.1 455.7 4 Real estate 87.9 102.3 126.5 109.2 113.5 122.3 126.5 128.8 136.2 142.4 5 LESS; Reserves for unearned income 52.7 56.3 53.5 52.9 53.4 54.0 53.5 54.0 57.1 58.8 6 Reserves for losses 13.0 13.8 13.5 13.4 13.4 13.6 13.5 14.0 14.4 14.2 7 Accounts receivable, net 597.6 641.6 744.6 667.6 689.7 708.6 744.6 780.7 813.0 827.1 8 All other 312.4 337.9 406.3 363.3 373.2 368.5 406.3 412.7 418.3 441.4 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 1,231.3 1,268.4 LIABILITIES AND CAPITAL 10 Bank loans 24.1 26.3 35.1 24.8 25.1 27.0 35.1 28.5 32.5 35.4 11 Commercial paper 201.5 231.5 227.9 222.9 231.0 205.3 227.9 230.2 221.3 215.6 Debt 12 Owed to parent 64.7 61.8 123.8 64.6 65.4 84.5 123.8 145.1 137.1 144.3 13 Not elsewhere classified 328.8 339.7 397.0 366.7 383.1 396.2 397.0 412.0 445.4 465.5 14 All other liabilities 189.6 203.2 222.7 220.3 226.1 216.0 222.7 247.6 259.3 269.2 15 Capital, surplus, and undivided profits 101.3 117.0 144.5 131.5 132.2 148.2 144.5 130.1 135.6 138.3 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 1,231.3 1,268.4 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 A33 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2000 TTyyppee ooff ccrreeddiitt 11999977 11999988 11999999 May June July Aug. Sept. Oct. Seasonally adjusted 1 Total 810.5 875.8 993.9 1,074.9 1,076.9 1,089.1 1,094.1 l,110.0r 1,129.8 2 Consumer 327.9 352.8 385.3 400.7 401.4 405.9 411.1 419.7r 437.8 3 Real estate 121.1 131.4 154.7 164.7 163.7 167.5 169.0 170.9 174.1 4 Business . 361.5 391.6 453.9 509.5 511.7 515.8 514.1 519.5r 517.8 Not seasonally adjusted 5 Total 818.1 884.0 1,003.2 1,074.8 1,082.3 1,082.2 1,087.9 l,104.8r 1,127.8 6 Consumer 330.9 356.1 388.8 399.4 403.9 408.3 412.3 421.0r 438.4 7 Motor vehicles loans 87.0 103.1 114.7 124.1 126.5 129.4 130.7 130.1 131.8 8 Motor vehicle leases 96.8 93.3 98.3 104.1 103.9 104.4 105.4 104.6 104.3 9 Revolving" 38.6 32.3 33.8 31.6 33.1 33.6 33.6 35.4 37.1 10 Other3 34.4 33.1 33.1 31.9 30.7 31.5 32.3 31.7r 31.8 Securitized assets4 11 Motor vehicle loans 44.3 54.8 71.1 71.9 74.1 74.5 76.2 78.8 84.3 12 Motor vehicle leases 10.8 12.7 9.7 8.2 7.9 7.6 7.4 7.2 7.0 13 Revolving .0 8.7 10.5 11.1 11.1 10.9 10.7 17.2 26.3 14 Other 19.0 18.1 17.7 16.5 16.6 16.4 16.2 16.0 15.7 15 Real estate 121.1 131.4 154.7 164.7 163.7 167.5 169.0 170.9 174.1 16 One- to four-family 59.0 75.7 88.3 97.3 96.6 100.5 101.7 100.9 104.5 17 Other 28.9 26.6 38.3 39.4 39.6 39.7 40.2 41.5 41.4 Securitized real estate assets4 18 One- to four-family 33.0 29.0 28.0 27.7 27.4 27.1 26.8 26.5 26.3 19 Other .2 .1 .2 .2 .2 .2 .2 1.9 1.9 20 Business 366.1 396.5 459.6 510.7 514.7 506.4 506.7 512.9r 515.3 21 Motor vehicles 63.5 79.6 87.8 94.8 94.5 89.4 89.6 94.1 96.0 22 Retail loans 25.6 28.1 33.2 33.3 33.8 34.1 34.3 34.8 34.7 23 Wholesale loans5 27.7 32.8 34.7 39.5 38.4 32.9 32.6 35.5 37.5 24 Leases 10.2 18.7 19.9 22.0 22.3 22.3 22.7 23.7 23.8 25 Equipment 203.9 198.0 221.9 247.3 250.0 248.6 250.0 256.7 257.3 26 Loans 51.5 50.4 52.2 55.9 56.7 54.8 54.3 55.8 55.7 27 Leases 152.3 147.6 169.7 191.5 193.3 193.9 195.8 200.9 201.6 28 Other business receivables6 51.1 69.9 95.5 106.6 109.7 109.4 108.3 104.9 104.3 Securitized assets4 29 Motor vehicles 33.0 29.2 31.5 32.0 31.7 29.8 29.6 29.9r 30.1 30 Retail loans 2.4 2.6 2.9 3.0 2.9 2.8 2.7 2.4 2.3 31 Wholesale loans 30.5 24.7 26.4 26.7 26.4 24.6 24.5 25.r 25.4 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 21.5 22.3 22.5 22.4 21.4 21.7 34 Loans 4.2 6.6 7.9 15.0 15.8 16.0 15.9 15.1 14.9 35 Leases 6.5 6.4 6.7 6.5 6.4 6.5 6.5 6.4 6.7 36 Other business receivables6 4.0 6.8 8.4 8.4 6.6 6.8 6.8 5.8 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 Nonfinancial Statistics • February 2001 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2000 IItteemm 11999977 11999988 11999999 May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 180.1 195.2 210.7 232.2 238.6 235.8 237.0 241.9 240.2 247.2 2 Amount of loan (thousands of dollars) 140.3 151.1 161.7 176.3 178.3 178.3 179.7 182.5 180.4 184.2 3 Loan-to-price ratio (percent) 80.4 80.0 78.7 78.0 76.9 77.7 77.7 77.1 77.2 76.2 4 Maturity (years) 28.2 28.4 28.8 29.2 29.2 29.3 29.3 29.2 29.2 29.2 5 Fees and charges (percent of loan amount)2 1.02 .89 .77 .71 .69 .66 .68 .70 .69 .69 Yield (percent per year) 6 Contract rate' 7.57 6.95 6.94 7.44 7.40 7.41 7.44 7.41 7.43 7.36 1 Effective rate1,3 7.73 7.08 7.06 7.55 7.50 7.51 7.54 7.52 7.53 7.47 8 Contract rate (HUD series)4 7.76 7.00 7.45 8.26 n.a. n.a. n.a. n.a. n.a. n.a. SECONDARY MARKETS Yield (percent per xear) 9 FHA mortgages (Section 203)5 7.89 7.04 7.74 8.58 n.a. n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 7.26 6.43 7.03 8.06 7.69 7.59 7.44 7.43 7.30 7.22 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 316,678 414,515 523,941 545,803 552,166 561,045 568,187 574,087 586,756 598,951 12 FHA/VA insured 31,925 33,770 55,318 59,140 59,703 60,397 60,150 59,961 60,329 n.a. 13 Conventional 284,753 380,745 468,623 486,663 492,463 500,648 508,037 514,126 526,427 n.a. 14 Mortgage transactions purchased (during period) 70,465 188,448 195,210 12,872 12,842 15,128 13,352 11,501 18,444 17,322 Mortgage commitments (during period) 15 Issued7 69,965 193,795 187,948 10,450 11,825 16,660 14,253 16,143 17,435 15,287 16 To sell8 1,298 1,880 5,900 1,594 1,254 436 236 693 268 676 FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period f 17 Total 164,421 255,010 324,443 347,370 350,836 354,020 357,002 361,624 365,198 372,819 18 FHA/VA insured 177 785 1,836 3,116 2,892 2,858 2,903 3,517 3,530 3,321 19 Conventional 164,244 254,225 322,607 344,254 347,944 351,162 354,099 358,107 361,668 369.498 Mortgage transactions (during period) 20 Purchases 117,401 267,402 239,793 15,741 12,271 10,912 16,056 21,748 16,195 19,402 21 114,258 250,565 233,031 15,261 11,806 10,539 15,558 21,189 15,614 18,823 22 Mortgage commitments contracted (during period)9 120,089 281,899 228,432 13,807 13,596 10,803 17,468 19,481 17,915 20,012 1. Weighted averages based on sample surveys of mortgages originated by major institu- 6. Average net yields to investors on fully modified pass-through securities backed by tional lender groups for purchase of newly built homes; compiled by the Federal Housing mortgages and guaranteed by the Government National Mortgage Association (GNMA), Finance Board in cooperation with the Federal Deposit Insurance Corporation. assuming prepayment in twelve years on pools of thirty-year mortgages insured by the 2. Includes all fees, commissions, discounts, and "points" paid (by the borrower or the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. seller) to obtain a loan. 7. Does not include standby commitments issued, but includes standby commitments 3. Average effective interest rate on loans closed for purchase of newly built homes, converted. assuming prepayment at the end of ten years. 8. Includes participation loans as well as whole loans. 4. Average contract rate on new commitments for conventional first mortgages; from U.S. 9. Includes conventional and government-underwritten loans. The Federal Home Loan Department of Housing and Urban Development (HUD). Based on transactions on the first Mortgage Corporation's mortgage commitments and mortgage transactions include activity day of the subsequent month. under mortgage securities swap programs, whereas the corresponding data for FNMA 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured exclude swap activity. by the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A35 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 1999 2000 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999966 11999977 11999988 Q2 Q3 Q4 Ql 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 banks" 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 institutions3 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 37 Nonfarm, nonresidential 0 0 0 0 0 0 0 0 38 Farm 0 0 0 0 0 0 0 0 39 Federal Deposit Insurance Corporation 2,431 724 361 189 163 152 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 trusts' 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 • February 2001 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2000 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999977 11999988 11999999 May June July Aug. Sept. Oct. Seasonally adjusted 1 Total 1,234,461 1,301,023 1,393,657 1,447,368 1,462,821 1,470,768 1,484,081 1,492,934 1,509,568 2 Revolving 531,163 560,504 595,610 628,764 634,652 638,406 645,121 649,297 656,666 3 Nonrevolving2 703,297 740,519 798,047 818,604 828,170 832,363 838,961 843,637 852,902 Not seasonally adjusted 4 Total 1,264,103 1,331,742 1,426,151 1,434,251 1,454,035 1,463,292 1,486,048 1,495,627 1,513,688 By major holder 5 Commercial banks 512,563 508,932 499,758 502,030 506,245 506,254 520,431 521,767 521,515 6 Finance companies 160,022 168,491 181,573 187,610 190,268 194,438 196,555 197,276 200,815 / Credit unions 152,362 155,406 167,921 173,471 176,030 178,034 180,679 181,597 183,010 8 Savings institutions 47,172 51,611 61,527 60,289 60,951 61,493 62,037 62,580 62,815 9 Nonfinancial business 78,927 74,877 80,311 73,523 73,500 71,956 73,030 72,091 70,842 10 Pools of securitized assets3 313,057 372,425 435,061 437,328 447,041 451,117 453,316 460,316 474,691 By major type of credit4 11 Revolving 555,858 586,528 623.245 621,127 627,909 630,633 641,298 645,820 654,678 12 Commercial banks 219,826 210,346 189,352 192,352 194,793 194,496 204,016 202,362 201,874 13 Finance companies 38,608 32,309 33,814 31,628 33,063 33,565 33,558 35,405 37,147 14 Credit unions 19,552 19,930 20,641 19,930 20,172 20,476 20,796 20,783 20,824 15 Savings institutions 11,441 12,450 15.838 15,295 15,455 15,745 16,036 16,327 16,505 16 Nonfinancial business 44,966 39,166 42,783 37,766 37,098 36,078 36,669 35,817 34,495 1/ Pools of securitized assets3 221,465 272,327 320,817 324,156 327,328 330,273 330,223 335,126 343,833 18 Nonrevolving 708,245 745,214 802,906 813,124 826,126 832,659 844,750 849,807 859,010 19 Commercial banks 292,737 298,586 310,406 309,678 311,452 311,758 316,415 319,405 319,641 20 Finance companies 121,414 136.182 147,759 155,982 157,205 160,873 162,997 161,871 163,668 21 Credit unions 132,810 135,476 147,280 153,541 155,858 157,558 159,883 160,814 162,186 22 Savings institutions 35,731 39,161 45,689 44,994 45,496 45,748 46,001 46,253 46,310 23 Nonfinancial business 33,961 35,711 37,528 35,757 36,402 35,878 36,361 36,274 36,347 24 Pools of securitized assets3 91,592 100,098 114,244 113,172 119,713 120,844 123,093 125,190 130,858 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 Apr. May June July Aug. Sept. Oct. INTEREST RATES Commercial banks2 1 48-month new car 9.02 8.72 8.44 n.a. 9.21 n.a. n.a. 9.62 n.a. n.a. 2 24-month personal 13.90 13.74 13.39 n.a. 13.88 n.a. n.a. 13.85 n.a. n.a. Credit card plan 3 All accounts 15.77 15.71 15.21 n.a. 15.39 n.a. n.a. 15.98 n.a. n.a. 4 Accounts assessed interest 15.57 15.59 14.81 n.a. 14.74 n.a. n.a. 15.35 n.a. n.a. Auto finance companies 5 New car 7.12 6.30 6.66 6.38 6.51 6.40 6.55 7.46 7.16 4.74 6 Used car 13.27 12.64 12.60 13.52 13.47 13.58 13.64 13.70 13.91 13.87 OTHER TERMS3 Maturity (months) 7 New car 54.1 52.1 52.7 53.8 53.5 55.6 55.6 55.7 55.9 57.6 8 Used car 51.0 53.5 55.9 57.1 57.1 57.3 57.2 57.2 57.0 57.0 Loan-to-value ratio 9 New car 92 92 92 93 93 92 92 92 91 93 10 Used car 99 99 99 98 99 99 100 100 100 100 Amount financed (dollars) 11 New car 18,077 19,083 19,880 20,542 20,621 20,349 20,406 20,664 21,010 22,069 12 Used car 12,281 12,691 13,642 13,871 14,132 14,245 14,269 14,166 13,950 13,978 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A37 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 199 9 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999944 11999955 Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors .. . 559.3 71X.3 731.4 804.3 1,042.9 1,277.7 938.8 1,170.1 1,094.8 940.7 958.3 758.5 By sector and instrument 7 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 1,361.2 1,037.3 1,241.6 1,126.3 1,156.3 1,372.3 977.5 By instrument 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 1 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 in 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 n Mortgages 160.5 196.0 275.7 317.5 505.5 572.2 607.8 650.0 601.1 488.9 665.7 565.7 V Home 183.2 180.7 242.5 252.3 386.9 411.2 440.1 479.4 398.3 343.9 496.6 443.4 n Multifamily residential -3.6 5.8 9.4 8.3 20.3 35.5 33.1 44.2 47.9 32.3 43.9 23.6 14 Commercial -21.3 7.9 21.3 53.7 92.0 122.0 125.6 119.4 152.4 105.8 116.3 90.8 is 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 76.2 109.5 142.0 134.6 120.4 By borrowing sector 17 Household 318.5 363.2 358.1 345.8 488.1 562.7 526.4 589.5 513.6 534.7 650.4 564.8 18 Nonfinancial business 131.2 255.1 235.0 379.3 527.1 718.8 467.2 599.6 579.1 617.8 701.1 387.5 19 Corporate 123.7 228.0 148.8 266.1 416.3 625.2 371.6 468.2 456.1 500.5 581.4 292.7 20 Nonfarm noncorporate 3.1 24.3 81.4 107.0 103.2 88.6 93.9 122.9 117.4 102.5 111.4 87.2 ?1 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 ?5 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 1,308.5 914.3 1,247.5 1,112.4 1,057.6 947.4 820.1 Financial sectors 29 Total net borrowing bv 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 47 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 NonfinancialS tatistics • February 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 Ql 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 2,537.2 1,909.6 2,311.7 2,175.8 1,676.0 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 170.3 201.3 283.6 332.4 530.3 592.4 595.6 659.4 604.3 496.0 675.6 571.7 60 Consumer credit 124.9 138.9 88.8 52.5 67.6 130.5 61.4 76.2 109.5 142.0 134.6 120.4 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. 1 (780) quarterly statistical release, tables F.2 through F.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A39 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 Q2 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 2,537.2 1,909.6 2,311.7 2,175.8 1,676.0 1,764.4 1,535.5 2 Domestic nonfederal nonfinancial sectors 210.0 -61.3 80.5 17.1 131.8 472.8 328.4 230.0 -6.4 -143.9 137.1 -323.2 Household 246.8 34.1 128.7 31.8 -16.7 270.5 247.7 221.8 8.1 -239.1 88.6 -299.2 4 Nonfinancial corporate business 17.7 -8.8 -10.2 -12.7 14.0 67.0 -1.4 49.8 -18.3 90.4 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 9 Financial sectors 698.8 1,031.4 878.1 1,196.3 1,760.6 1,790.6 1,512.8 1,685.2 2,055.3 1,478.7 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 1 1 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 1? 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 13 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 14 Bank holding companies .9 -.3 3.9 5.4 -.9 -6.0 .4 -12.4 42.6 -42.2 3.5 -6.7 IS 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 35.6 36.6 41.8 18 Bank personal trusts and estates 7.1 -8.3 -7.7 -25.0 -12.8 27.8 27.8 27.8 27.8 21.9 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 24 Mutual funds -7.1 52.5 48.9 80.9 124.8 97.4 117.2 -13.0 -12.7 -77.8 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 78 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 3? 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 9.5 96.2 .6 401.9 -33.5 187.5 -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 2,537.2 1,909.6 2,311.7 2,175.8 1,676.0 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 -.9 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 .7 -.6 -.7 -.8 .0 -2.1 -4.1 .0 -2.2 -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 -30.8 -40.7 -71.1 177.7 -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 28.0 104.3 130.3 235.7 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 .0 103.2 -122.6 -111.5 46 Mutual fund shares 100.6 147.4 237.6 265.1 274.6 240.6 212.4 127.5 172.8 306.1 237.6 261.5 47 Trade payables 120.0 128.9 114.1 131.2 27.0 121.7 225.3 231.5 160.1 244.3 114.7 160.2 48 Security credit -.1 26.7 52.4 111.0 103.3 -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 49.8 59.7 47.0 50 Pension fund reserves 257.4 171.0 163.0 278.8 248.7 204.5 248.8 266.7 294.6 266.1 280.7 228.1 51 Taxes payable 2.6 6.2 16.2 15.7 12.0 -1.8 47.3 .1 18.2 28.2 22.9 .7 52 Investment in bank personal trusts 17.8 6.4 -5.3 -49.9 -42.5 -7.2 -7.1 -7.2 -6.9 -2.9 -7.6 -3.6 53 Noncorporate proprietors' equity 43.1 34.6 -3.4 -46.0 -41.4 -8.3 21.4 -56.0 12.3 -15.5 -2.9 28.9 54 Miscellaneous 278.3 503.8 537.4 512.5 844.4 406.7 1,454.9 507.0 596.3 870.3 1,120.2 1,242.4 55 Total financial sources 2,108.0 2,756.6 2,957.0 3,350.0 4,105.4 4,030.3 4,732.2 4,134.6 5,316.7 4,830.2 3,875.7 4,341.1 Liabilities not identified as assets (-) 56 Treasury currency -.2 -.3 -1.6 -1.4 -1.4 -1.5 -3.5 -5.9 -2.2 -6.1 -6.2 -6.7 57 Foreign deposits 43.0 25.1 59.6 107.4 -6.4 49.3 96.8 27.4 92.5 189.4 -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 -217.4 553.2 5.4 128.8 60 Taxes payable 16.6 21.1 23.1 28.0 13.9 -8.8 25.0 2.7 -5.1 13.4 -1.3 -10.0 61 Miscellaneous -114.0 -166.5 -76.4 -69.1 -46.1 -522.5 -131.8 -454.8 -132.1 -342.9 -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 -63.7 75.3 119.3 24.5 -74.8 -68.6 65 Total identified to sectors as assets 2,072.1 2,849.0 2,976.4 3,276.5 4,123.3 4,209.1 4,787.8 4,410.7 5,494.7 4,345.0 4,217.6 4,380.2 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F. 1 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 • February 2001 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1999 2000 tyy3 tyyo Ql Q2 Q3 Q4 Ql Q2 Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonlinancial sectors 13,712.9 14,444.2 15,247.0 16,289.9 16,605.4 16,784.8 17,105.1 17,445.0 17,677.8 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 12,845.7 13,133.1 13,472.4 13,763.9 14,024.3 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 / 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 n Mortgages 4,557.9 4,833.6 5,151.1 5,656.6 5,790.9 5,945.9 6,151.0 6,298.7 6,410.8 6,579.6 6,731.6 12 Home 3,510.5 3,719.2 3,971.5 4,358.4 4,451.1 4,564.1 4,693.6 4,790.7 4,866.5 4,993.0 5,114.4 13 Multifamily residential 265.5 278.6 286.9 307.3 316.4 324.6 335.7 347.7 355.7 366.7 372.6 14 Commercial 697.3 748.7 802.3 894.4 926.1 957.5 1,020.3 1,058.4 1,084.8 1,113.9 1,136.6 15 Farm 84.6 87.1 90.3 96.5 97.4 99.6 101.4 102.0 103.7 106.0 107.9 lb 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 1,416.0 1,454.0 1,495.6 By borrowing sector 1/ Household 4,898.2 5,222.7 5,568.8 6,056.9 6,138.8 6,282.3 6,448.5 6,605.2 6,678.8 6,851.5 7,024.3 18 Nonfinancial business 4,107.7 4,376.4 4.753.9 5,281.0 5,483.8 5,612.6 5,781.5 5,906.6 6,088.3 6,272.7 6,356.1 iy Corporate 2,913.1 3,095.6 3,359.8 3,776.1 3,957.9 4,059.5 4,195.9 4,290.7 4,445.5 4,596.8 4,656.9 20 Nonfarm noncorporate 1,049.5 1,130.9 1.237.9 1,341.1 1,363.5 1,387.0 1,417.0 1,446.8 1,472.7 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 21 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 17,264.6 17,437.5 17,778.0 18,121.9 18,382.5 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 3/ 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 3y 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 4y 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 24,073.5 24,510.8 25,124.9 25,728.9 26,126.9 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 53 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 36 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 3/ 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 38 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 sy 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 5,867.6 6,019.5 6,226.9 6,375.5 6,489.3 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 1,416.0 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 A41 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 Ql Q2 Q3 Q4 Ql Q2 Q3 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 18,445.3 19,811.0 21,300.2 23,460.4 24,073.5 24,510.8 25,124.9 25,728.9 26,126.9 26,517.1 26,930.6 ? Domestic nonfederal nonfinancial sectors 2,905.5 3,031.3 3,004.7 3,108.2 3,199.5 3,255.5 3,311.9 3,434.5 3,368.4 3,377.1 3,303.4 Household 1,944.3 2,118.3 2,106.4 2,061.4 2,124.7 2,155.3 2,208.2 2,318.5 2,252.7 2,244.2 2,174.1 4 Nonfinancial corporate business 280.4 270.2 257.5 271.5 266.1 268.5 284.7 295.7 294.7 298.3 300.8 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 18,042.4 18,409.0 18,834.0 19,358.4 19,733.1 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 11 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 17 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 263.0 288.5 305.3 324.2 330.2 341.0 348.5 351.7 359.0 370.8 381.9 18 Bank personal trusts and estates 239.7 232.0 207.0 194.1 201.1 208.0 215.0 222.0 227.4 231.7 236.8 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 20 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 21 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 22 State and local government retirement funds 531.0 568.2 632.0 703.6 722.6 728.9 738.9 753.4 767.2 772.4 781.3 23 Money market mutual funds 545.5 634.3 721.9 965.9 1,036.2 1,001.8 1,049.7 1,147.8 1,217.1 1,159.4 1,212.5 ?4 Mutual funds 771.3 820.2 901.1 1,025.9 1,050.8 1,083.7 1,083.0 1,073.1 1,053.7 1,073.9 1,090.6 25 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 ?H 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 29 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 32 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 108.4 122.0 164.7 165.2 173.8 204.9 204.0 291.9 293.8 342.7 315.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 18,445.3 19,811.0 21,300.2 23,460.4 24,073.5 24,510.8 25,124.9 25,728.9 26,126.9 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 18.3 17.7 17.0 16.2 16.2 15.7 14.6 14.6 14.1 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 290.7 240.8 219.4 189.0 182.0 207.1 199.6 204.5 168.1 215.9 200.2 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 2,728.0 2,738.8 2,790.2 42 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 4,863.3 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 566.2 610.6 665.0 718.3 735.9 749.8 756.2 783.9 799.9 809.4 821.2 48 Pension fund reserves 5,812.8 6,548.6 7,817.4 8,913.1 9,065.3 9,480.0 9,151.1 10,000.0 10,230.0 10,155.0 10,348.6 49 Trade payables 1,698.0 1,812.1 1,943.3 1,970.3 1,973.9 2,031.1 2,095.1 2,155.0 2,189.6 2,218.8 2,265.7 50 Taxes payable 107.6 123.8 139.5 151.5 158.8 162.4 167.5 167.5 182.3 179.5 185.3 51 Investment in bank personal trusts 803.0 871.3 942.5 1,001.0 1,016.5 1,061.0 1,019.0 1,130.4 1,163.8 1,125.6 1,124.5 52 Miscellaneous 5,953.4 6,349.8 6,699.6 7,268.4 7,267.8 7,459.1 7,468.8 7,812.0 7,984.0 8,235.4 8,696.4 53 Total liabilities 41,733.4 45,472.1 50,218.5 55,588.1 56,674.4 58,240.5 58,594.5 61,754.5 63,280.9 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 3,683.6 3,889.2 4,164.4 4,414.7 4,487.4 4,548.8 4,623.1 4,704.5 4,732.2 4,779.1 4,848.4 Liabilities not identified as assets (—) 57 Treasury currency -5.7 -7.3 -8.6 -10.1 -10.5 -11.3 -12.8 -13.4 -14.9 -16.6 -18.2 58 Foreign deposits 360.2 437.0 538.3 548.2 560.5 584.7 591.5 615.0 662.4 646.7 652.0 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 76.9 92.6 102.0 89.8 112.2 96.4 95.5 90.8 102.5 94.9 62 Miscellaneous -1,052.2 -1,512.3 -1,868.4 -2,404.7 -2,618.2 -2,651.5 -2,957.4 -2,847.2 -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 19.4 37.0 136.1 92.3 51.4 34.5 66 Total identified to sectors as assets 54,237.8 60,340.1 68,554.3 76,892.9 78,726.6 81,509.7 81,380.2 87,814.5 90,015.5 89,623.3 90,692.7 1. Data in this table also appear in the Board's Z. 1 (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. L. 1 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 • February 2001 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2000 MMeeaassuurree 11999977 11999988 11999999 Mar. Apr. May June July' Aug.' Sept.' Oct. Nov.? 1 Industrial production' 127.7r 134.0r 139.6r 145.2r 146.3r 147.2r 147.9r 147.6 148.6 149.1 148.9 148.6 Market groupings 2 Products, total 121.5r 127.2r 131.2r 134.4r 135.3' 135.5r 136.0r 135.8 136.6 136.9 136.4 136.4 3 Final, total 123.2r 129.3r 133.3r 136.0r 137.2r 137.5r 138.3r 138.1 139.2 139.4 138.8 139.0 4 Consumer goods 115.9r 118.4r 120.8r 122.2r 123.2r 123.5r 124.2r 122.9 123.8 124.1 123.0 123.2 5 Equipment 135.4r 147.1r 153.8r 161.3' 162.8r 163.1r I64.3r 166.3 167.9 167.9 168.4 168.7 6 Intermediate 116.3r 121.0r 125.1r 129.5r 129.3r 129.4r 129.0r 128.7 128.8 129.1 129.2 128.3 7 Materials 138.0r 145.7r 154.5r 164.7r 166.1' 168.4r 169.4r 169.0 170.5 171.5 171.7 170.8 Industry groupings 8 Manufacturing 130.8r 138.2r 144.8C 151.3r 152.2' 153.1' 153.8' 153.7 154.6 155.2 155.1 154.4 9 Capacity utilization, manufacturing (percent)2. . 82.7r 81.3r 80.5r 81.6r 81.8r 81.9r 82.0' 81.6 81.7 81.7 81.4 80.6 10 Construction contracts3 144.2 161.2 177.5 195.0 186.0 179.0 188.0 178.0 175.0 182.0 187.0 n.a. 11 Nonagricultural employment, total4 120.3 123.4 126.2 128.5 128.9 129.1 129.1 129.1 129.0 129.2 129.3 129.4 12 Goods-producing, total 101.2 102.7 102.3 104.3 104.3 104.1 104.2 104.4 103.9 103.9 104.0 104.0 13 Manufacturing, total 98.3 98.8 97.0 97.3 97.3 97.3 97.3 97.6 97.0 96.7 96.7 96.7 14 Manufacturing, production workers 99.6 99.8 97.8 97.9 98.0 97.9 97.9 98.4 97.5 97.2 97.1 97.1 15 Service-producing 126.5 130.0 133.8 136.2 136.8 137.0 137.1 137.0 137.0 137.3 137.3 137.5 16 Personal income, total 175.1 186.5 196.6 206.0 207.2 207.9 208.9 209.5 210.1 212.5 212.2 213.0 17 Wages and salary disbursements 171.3 184.6 196.9 206.4 208.2 208.4 209.8 211.0 211.3 212.7 214.1 214.9 18 Manufacturing 144.6 152.3 157.4 162.0 163.6 162.9 164.3 165.8 164.9 165.1 166.5 167.2 19 Disposable personal income5 172.5 182.7 191.9 199.8 200.6 201.3 202.1 202.5 202.9 205.2 204.5 205.1 20 Retail sales5 169.8 178.4 194.6 209.3 208.3 208.5 209.3 211.1 211.0 212.7 212.7 211.9 Prices6 21 Consumer (1982-84=100) 160.5 163.0 166.6 171.2 171.3 171.5 172.4 172.8 172.8 173.7 174.0 174.1 22 Producer finished goods (1982= 100) 131.8 130.7 133.0 136.8 136.7 137.3 138.6 138.6 138.1 139.2 140.0 139.9 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 December 2000. 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 2001 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 Apr. May June July Aug. Sept.' Oct. Nov.p HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 136,297 137,673 139,368 141,230 140,489 140,762 140,399 140,742 140,639 140,918 141,052 Employment ? Nonagricultural industries3 126,159 128,085 130,207 132,351 131,417 131,858 131,450 131,569 131,821 132,188 132,219 3 Agriculture 3,399 3,378 3,281 3,355 3,298 3,321 3,299 3,344 3,340 3,233 3,154 4 6,739 6,210 5,880 5,524 5,774 5,583 5,650 5,829 5,477 5,496 5,679 5 Rate (percent of civilian labor force) 4.9 4.5 4.2 3.9 4.1 4.0 4.0 4.1 3.9 3.9 4.0 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 122,690 125,826 128,616 131,419 131,590 131,647 131,607 131,528 131,723 131,800 131,894 7 Manufacturing 18,675 18,772 18,431 18,492 18,479 18,493 18,548 18,432 18,380 18,377 18,378 8 Mining 596 590 535 539 539 539 538 537 539 541 542 9 Contract construction 5,691 5,985 6,273 6,694 6,666 6,668 6,670 6,675 6,720 6,742 6,736 10 Transportation and public utilities 6,408 6,600 6,792 6,970 6,962 6,985 7,010 6,941 7,037 7,046 7,062 11 Trade 28,614 29,127 29,792 30,252 30,112 30,171 30,246 30,253 30,249 30,278 30,338 12 Finance 7,109 7,407 7,632 7,610 7,600 7,588 7,586 7,608 7,622 7,637 7,648 1.3 Service 36,040 37,526 39,000 40,195 40,220 40,401 40,403 40,572 40,685 40,685 40,750 14 Government 19,557 19,819 20,161 20,667 21,012 20,802 20,606 20,510 20,491 20,494 20,440 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 Q3 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 142.1 144.4 147.1 148.5 174.1 176.1 178.1 180.1 81.6 82.0 82.6 82.5 2 Manufacturing 147.6 150.1 153.0 154.5 182.4 184.6 186.9 189.2 80.9 81.3 81.9 81.7 3 Primary processing3 169.2 173.5 178.6 180.3 200.0 203.0 206.9 211.2 84.6 85.4 86.4 85.4 4 Advanced processing4 135.6 137.3 139.0 140.3 171.2 172.7 174.1 175.2 79.2 79.5 79.8 80.1 .5 Durable goods 181.2 186.7 192.9 196.6 223.9 228.5 233.3 238.3 81.0 81.7 82.7 82.5 6 Lumber and products 122.1 122.4 120.3 117.0 146.6 147.0 147.5 147.9 83.3 83.3 81.6 79.1 7 Primary metals 135.2 136.1 137.0 133.4 152.6 153.0 153.3 153.4 88.6 88.9 89.4 87.0 8 Iron and steel 132.8 135.0 136.1 130.6 152.3 152.8 153.1 153.4 87.2 88.4 88.9 85.2 9 Nonferrous 138.1 137.4 138.2 136.8 152.7 153.2 153.4 153.4 90.4 89.7 90.1 89.2 10 Industrial machinery and equipment 228.9 242.2 249.4 257.2 286.8 296.3 304.5 311.1 79.8 81.7 81.9 82.7 11 Electrical machinery 434.5 476.7 535.1 581.1 520.7 552.1 591.7 639.1 83.4 86.3 90.4 90.9 12 Motor vehicles and parts 170.6 171.8 175.9 170.7 205.8 207.0 208.2 209.2 82.9 83.0 84.5 81.6 13 Aerospace and miscellaneous transportation equipment 95.1 93.7 92.9 93.5 130.6 130.7 130.7 130.4 72.8 71.7 71.1 71.7 14 Nondurable goods 116.2 116.3 116.7 116.3 143.4 143.8 144.1 144.4 81.0 80.9 80.9 80.5 15 Textile mill products 102.8 104.0 103.3 100.1 124.8 124.4 123.9 123.3 82.4 83.6 83.4 81.1 16 Paper and products 118.6 117.6 117.9 114.0 136.8 136.9 137.2 137.5 86.7 85.8 85.9 82.9 17 Chemicals and products 126.2 124.8 125.8 125.7 160.9 161.9 163.0 164.1 78.4 77.1 77.2 76.6 18 Plastics materials 142.5 141.6 140.9 137.6 151.5 151.5 151.6 151.9 94.0 93.5 93.0 90.5 19 Petroleum products 114.6 116.0 118.3 117.4 123.1 123.2 123.2 123.2 93.2 94.1 96.0 95.3 20 Mining 98.9 99.4 100.0 100.6 116.8 116.7 116.5 116.3 84.7 85.2 85.8 86.5 21 Utilities 116.1 117.4 120.7 121.5 130.1 131.2 132.3 133.4 89.2 89.5 91.2 91.1 22 Electric 120.0 120.5 124.3 124.7 128.2 129.5 130.9 132.3 93.6 93.1 94.9 94.2 1973 1975 Previous cycle5 Latest cycle6 1999 2000 High Low High Low High Low Nov. June July Aug.r Sept.r Oct. Nov.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 81.5 82.7 82.3 82.6 82.5 82.1 81.6 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 80.9 82.0 81.6 81.7 81.7 81.4 80.6 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 84.7 86.5 85.6 85.4 85.2 84.8 83.3 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 79.1 79.9 79.8 80.2 80.2 79.9 79.7 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 80.9 82.8 82.3 82.6 82.6 81.8 80.8 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 83.0 80.4 80.3 78.1 79.0 78.1 76.9 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 88.5 89.0 87.3 86.3 87.3 85.2 83.4 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 87.9 88.5 84.8 84.5 86.2 83.4 79.7 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 89.4 89.7 90.5 88.5 88.7 87.5 87.9 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 79.6 81.7 82.1 82.9 83.0 83.5 82.7 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 82.9 91.5 91.8 90.8 90.2 88.3 86.6 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 83.2 84.5 78.1 83.1 83.6 80.5 78.1 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 72.9 71.6 72.7 71.7 70.6 71.8 73.4 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 81.1 80.9 80.6 80.5 80.4 80.6 80.1 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 81.5 83.3 82.1 80.6 80.7 80.4 79.2 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.6 86.5 83.6 82.3 82.6 85.0 83.6 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 79.1 77.1 76.2 76.7 76.9 77.0 76.9 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 94.8 93.5 92.8 89.1 89.8 89.2 87.9 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 92.4 96.4 95.0 95.5 95.4 95.5 95.5 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 85.1 86.2 86.3 86.9 86.3 86.3 86.5 21 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 87.2 91.7 89.5 91.5 92.2 90.2 93.2 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 93.4 95.0 91.8 95.3 95.6 93.3 95.7 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 December 2000. The recent annual revision is described in an article in the 4. Advanced processing includes foods; tobacco; apparel; furniture and fixtures; printing March 2001 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 • February 2001 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 1999 2000 GGrroouupp p p r o o r - - 1 a 9 v 9 g 9 . tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.r Oct. NNoovv..pp Index (1992 = 100) MAJOR MARKETS 1 Total index 100.0 139.6 141.9 142.8 143.6 144.3 145.2 146.3 147.2 147.9 147.6 148.6 149.1 148.9 148.6 2 Products 60.5 131.2 131.8 132.7 133.3 134.2 134.4 135.3 135.5 136.0 135.8 136.6 136.9 136.4 136.4 3 Final products 46.3 133.3 133.6 134.4 135.1 135.9 136.0 137.2 137.5 138.3 138.1 139.2 139.4 138.8 139.0 4 Consumer goods, total 29.1 120.8 121.5 122.4 122.1 122.8 122.2 123.2 123.5 124.2 122.9 123.8 124.1 123.0 123.2 5 Durable consumer goods 6.1 158.3 160.4 161.6 162.9 162.6 162.1 164.7 163.8 164.4 158.7 160.0 162.3 157.1 156.0 6 Automotive products 2.6 152.6 155.0 153.3 156.9 154.8 155.3 157.6 157.9 157.8 149.4 153.8 156.2 147.8 146.0 7 Autos and trucks 1.7 167.9 171.1 166.2 171.4 169.0 170.3 173.7 175.7 174.8 160.5 169.8 172.7 159.4 156.1 8 Autos, consumer .9 113.6 117.7 112.0 116.5 116.3 115.1 118.5 119.7 118.1 113.6 120.3 120.5 107.7 103.7 9 Trucks, consumer .7 223.9 226.3 222.1 228.2 223.7 227.3 230.7 233.7 233.2 209.8 221.8 227.1 212.7 209.7 10 Auto parts and allied goods .... .9 129.1 130.2 132.8 134.3 132.5 131.9 132.7 130.6 131.6 131.6 129.1 130.7 129.3 129.8 11 Other 3.5 162.9 164.6 168.7 167.6 169.1 167.7 170.6 168.5 169.8 166.7 165.2 167.3 165.2 164.7 12 Appliances, televisions, and air conditioners 1.0 309.8 326.3 336.5 328.3 336.1 332.3 341.1 334.6 348.2 322.3 325.0 340.5 333.2 338.0 13 Carpeting and furniture .8 127.3 123.2 128.2 129.2 129.7 128.3 131.8 130.8 130.1 131.5 128.6 130.7 129.3 127.2 14 Miscellaneous home goods 1.6 121.0 121.5 122.8 122.7 122.7 122.1 122.7 121.6 120.5 121.3 119.7 118.1 117.3 116.4 15 Nondurable consumer goods 23.0 112.0 112.4 113.3 112.7 113.5 112.9 113.6 114.1 114.8 114.5 115.2 115.2 114.9 115.3 16 Foods and tobacco 10.3 109.2 109.6 109.7 110.3 110.6 110.8 110.9 110.3 110.8 111.0 111.4 110.4 110.4 110.0 17 Clothing 2.4 87.8 86.9 86.8 86.3 87.5 87.2 87.5 86.8 85.1 85.6 84.2 83.3 82.6 82.0 18 Chemical products 4.5 132.7 136.5 137.3 132.9 133.5 134.9 136.5 138.5 139.3 137.4 139.4 140.3 140.4 141.7 19 Paper products 2.9 106.7 109.3 108.5 109.1 109.6 108.3 108.2 109.0 111.6 112.4 112.4 112.4 113.2 111.3 20 Energy 2.9 114.0 108.3 113.8 113.1 116.2 110.7 113.6 116.0 117.0 114.9 117.1 119.3 117.1 121.7 21 Fuels .8 111.4 110.7 112.1 108.4 111.0 114.9 112.1 113.1 113.4 112.6 113.1 115.8 114.1 116.5 22 Residential utilities 2.1 114.7 106.4 114.0 115.1 118.5 107.4 113.8 117.1 118.5 115.6 119.0 120.7 118.2 124.2 23 Equipment 17.2 153.8 155.3 155.7 158.7 159.8 161.3 162.8 163.1 164.3 166.3 167.9 167.9 168.4 168.7 24 Business equipment 13.2 176.4 179.8 180.6 185.2 187.0 188.9 191.1 191.6 192.8 195.0 197.8 198.9 199.2 199.1 25 Information processing and related 5.4 257.6 270.8 274.9 284.8 289.2 293.5 298.8 302.5 307.0 313.9 322.1 326.4 330.8 334.1 26 Computer and office equipment 1.1 791.2 890.2 930.2 979.1 1,019.5 1,044.0 1,062.0 1,087.8 1,130.8 1.182.8 1,229.0 1,264.1 1,295.8 1,321.2 27 Industrial 4.0 135.6 136.4 137.3 140.4 142.1 142.2 142.9 143.4 143.8 144.4 147.7 145.7 146.8 145.5 28 Transit 2.5 134.8 132.5 128.8 130.9 130.6 131.5 131.3 129.0 130.1 127.6 126.8 127.2 121.4 122.2 29 Autos and trucks 1.2 148.3 151.7 147.1 153.8 154.2 154.0 156.5 153.9 152.9 141.5 142.8 144.0 130.6 129.7 30 Other 1.3 137.1 136.0 137.7 138.6 138.5 142.9 146.7 145.8 142.8 148.1 144.8 149.4 151.5 146.9 31 Defense and space equipment 3.3 80.8 79.1 78.5 77.1 75.9 76.0 75.5 75.5 76.3 77.9 76.1 73.7 75.2 77.0 32 Oil and gas well drilling .6 103.3 116.5 120.1 121.1 124.6 126.7 126.7 130.3 130.8 136.2 137.1 132.8 136.5 137.0 33 Manufactured homes .2 159.6 144.1 142.0 138.5 133.8 131.7 127.2 122.9 121.9 116.8 115.5 109.3 96.8 93.2 34 Intermediate products, total 14.2 125.1 126.3 127.4 127.8 128.9 129.5 129.3 129.4 129.0 128.7 128.8 129.1 129.2 128.3 35 Construction supplies 5.3 138.5 140.4 142.2 142.6 143.4 144.6 144.4 143.1 143.4 143.8 142.7 143.2 143.0 141.6 36 Business supplies 8.9 117.2 118.0 118.7 119.0 120.3 120.6 120.4 121.3 120.5 119.8 120.6 120.7 121.1 120.4 37 Materials 39.5 154.5 160.0 161.0 162.0 162.4 164.7 166.1 168.4 169.4 169.0 170.5 171.5 171.7 170.8 38 Durable goods materials 20.8 198.5 207.8 210.6 213.4 215.4 220.0 222.7 227.6 230.3 230.5 233.8 235.9 235.9 233.9 39 Durable consumer parts 4.0 156.9 162.5 163.8 164.3 163.2 164.9 162.2 169.9 165.7 158.3 168.3 169.4 171.0 166.2 40 Equipment parts 7.6 353.0 381.7 392.6 404.2 416.6 434.2 451.9 466.8 486.2 499.9 505.7 513.1 515.7 519.3 41 Other 9.2 131.7 134.4 134.8 135.3 134.8 135.9 135.7 135.9 135.9 135.3 134.7 135.3 134.1 132.2 42 Basic metal materials 3.1 125.9 130.1 131.0 130.7 128.8 131.1 131.9 130.8 130.7 128.5 127.5 128.8 126.6 124.4 43 Nondurable goods materials 8.9 114.3 117.6 116.8 116.2 115.3 115.6 115.2 115.7 115.2 113.9 112.8 112.8 113.8 112.8 44 Textile materials 1.1 100.9 102.0 100.7 100.4 101.9 102.2 101.1 100.9 101.7 97.9 99.3 97.4 97.8 96.5 45 Paper materials 1.8 117.0 119.0 118.4 118.2 116.7 118.1 118.7 117.5 118.1 114.9 112.8 113.8 117.3 115.3 46 Chemical materials 3.9 116.5 121.9 120.1 119.7 118.6 118.6 118.1 119.8 118.4 117.0 116.8 116.2 116.1 115.4 47 Other 2.1 113.7 114.3 116.1 114.6 113.0 113.5 112.6 112.4 112.3 113.7 110.2 111.8 113.5 112.5 48 Energy materials 9.7 103.1 103.3 103.1 102.6 102.1 102.5 103.5 103.3 103.1 102.9 104.2 104.4 103.9 104.9 49 Primary energy 6.3 98.9 99.4 98.5 97.2 96.2 97.7 98.8 98.3 98.4 98.7 98.9 98.7 98.2 98.8 50 Converted fuel materials 3.3 111.4 111.1 112.5 113.9 114.6 112.3 113.0 113.7 112.4 110.8 115.1 116.7 116.3 118.5 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 139.0 141.3 142.4 143.0 143.8 144.8 145.7 146.7 147.5 147.5 148.4 148.9 149.1 148.8 52 Total excluding motor vehicles and parts 95.1 138.3 140.5 141.5 142.2 143.0 143.9 144.9 145.8 146.5 146.9 147.4 147.9 148.0 147.9 53 Total excluding computer and office equipment 98.2 134.1 135.9 136.7 137.2 137.8 138.6 139.6 140.4 141.0 140.5 141.4 141.8 141.5 141.1 54 Consumer goods excluding autos and trucks . 27.4 118.3 118.8 120.0 119.5 120.3 119.6 120.5 120.7 121.5 120.9 121.3 121.5 121.0 121.4 55 Consumer goods excluding energy 26.2 121.6 123.1 123.5 123.2 123.5 123.6 124.4 124.4 125.0 123.9 124.5 124.6 123.7 123.2 56 Business equipment excluding autos and trucks 12.0 179.7 183.1 184.5 188.9 190.8 193.1 195.2 196.1 197.6 201.5 204.5 205.6 207.7 207.7 57 Business equipment excluding computer and office equipment 12.1 149.8 150.5 150.3 153.6 154.4 155.7 157.4 157.3 157.6 158.6 160.3 160.6 160.3 159.7 58 Materials excluding energy 29.8 170.6 177.8 179.3 180.8 181.5 184.6 186.0 189.3 190.7 190.3 191.8 193.1 193.6 191.9 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 Group S co IC de 2 p po ro r- - 1 a 9 v 9 g 9 . tion Apr. May July Aug.' Sept.' Nov.p Index (1992 = 100) MAJOR INDUSTRIES 59 Total index 100.0 139.6 141.9 142.8 143.6 144.3 145.2 146.3 147.2 147.9 147.6 148.6 149.1 148.9 148.6 60 Manufacturing 85.4 144.8 147.5 148.4 149.2 149.9 151.3 152.2 153.1 153.8 153.7 154.6 155.2 155.1 154.4 61 Primary processing 26.5 163.3 169.4 170.9 171.9 173.0 175.5 177.1 178.7 180.1 179.4 180.3 181.3 181.7 179.8 62 Advanced processing 58.9 133.6 135.5 135.9 136.8 137.1 137.9 138.5 139.1 139.4 139.5 140.5 140.8 140.6 140.4 63 Durable goods 45.0 175.6 181.0 182.6 185.1 186.3 188.9 191.0 193.0 194.6 194.7 196.9 198.3 197.7 196.9 64 Lumber and products " ' 24 2.0 122.4 121.7 122.8 122.9 122.3 121.9 121.6 120.5 118.7 118.6 115.5 117.0 115.7 114.1 65 Furniture and fixtures 25 1.4 137.0 137.5 138.9 138.9 140.7 139.3 140.7 143.0 141.9 142.6 143.8 145.9 144.3 143.6 66 Stone, clay, and glass products 32 2.1 131.6 134.2 133.4 132.8 133.6 134.4 132.9 134.2 134.6 136.3 136.1 136.5 136.1 134.4 67 Primary metals 33 3.1 130.4 135.0 136.6 136.3 134.7 137.1 137.8 136.7 136.4 133.9 132.4 134.0 130.8 128.1 68 Iron and steel 331,2 1.7 126.7 133.9 135.4 134.8 133.5 136.9 136.8 135.9 135.5 129.9 129.7 132.3 128.0 122.4 69 Raw steel 331PT .1 116.5 126.4 127.4 126.4 121.7 125.8 127.3 127.1 128.2 126.4 123.9 117.7 115.6 111.0 70 Nonferrous 333-6,9 1.4 135.0 136.5 138.3 138.3 136.4 137.6 139.1 137.9 137.6 138.8 135.7 136.1 134.3 134.9 71 Fabricated metal products . . 34 5.0 131.9 133.6 133.3 134.9 135.8 135.6 135.9 136.2 135.7 136.1 136.3 136.0 135.7 134.6 72 Industrial machinery and equipment 35 8.0 219.0 228.3 232.8 238.7 242.1 245.8 247.2 249.9 250.9 253.9 257.9 259.9 263.2 262.2 73 Computer and office equipment 357 1.8 936.6 1,049.0 1,094.0 1,149.5 1,195.9 1,224.7 1,245.1 1,272.3 1,316.2 1,370.4 1,421.6 1,464.2 1,498.8 1.526.2 74 Electrical machinery 36 7.3 399.4 431.7 445.5 460.2 474.8 495.2 516.5 533.8 555.0 571.2 580.0 591.9 595.5 600.9 75 Transportation equipment. . . 37 9.5 131.4 132.0 130.7 132.0 130.7 131.9 132.1 133.6 133.5 128.0 132.4 132.2 130.0 128.8 76 Motor vehicles and parts . 371 4.9 165.8 171.1 169.4 172.7 170.3 172.5 174.1 177.6 176.1 163.1 173.9 175.2 168.9 164.1 77 Autos and light trucks . 371PT 2.6 153.8 157.0 152.2 157.1 155.1 156.0 159.2 161.1 160.1 147.8 156.4 158.8 146.1 142.7 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 98.9 95.2 94.2 93.8 93.5 93.7 92.7 92.3 93.6 94.9 93.5 92.0 93.5 95.5 79 Instruments 38 5.4 119.7 121.3 120.8 120.6 119.7 120.2 121.5 121.3 122.2 122.6 123.3 123.3 122.6 122.8 80 Miscellaneous 39 1.3 127.4 129.8 130.9 131.6 130.9 130.6 130.9 130.7 130.5 132.1 130.8 130.9 131.0 129.8 81 Nondurable goods 40.4 115.4 116.3 116.5 116.0 116.3 116.6 116.7 116.7 116.7 116.3 116.3 116.2 116.6 115.9 82 Foods " ' 20 9.4 112.5 113.2 113.0 113.3 114.1 114.9 114.7 114.2 114.9 115.0 115.1 114.6 114.9 114.6 83 Tobacco products 21 1.6 97.1 96.1 97.8 99.8 97.4 94.3 95.6 95.3 93.8 95.8 96.6 94.5 93.3 91.7 84 Textile mill products 22 1.8 104.0 101.7 103.4 103.6 103.8 104.4 104.4 102.6 103.1 101.4 99.4 99.4 98.9 97.3 85 Apparel products 23 2.2 94.8 94.0 94.0 93.4 94.3 94.1 94.6 93.0 91.2 92.0 90.7 89.7 89.0 88.4 86 Paper and products 26 3.6 117.2 118.4 118.8 117.5 117.4 117.8 118.4 116.5 118.8 114.9 113.3 113.7 117.1 115.3 87 Printing and publishing .... 27 6.7 106.8 108.8 108.6 108.9 108.9 109.7 109.1 109.9 109.1 110.0 110.4 110.8 111.3 110.1 88 Chemicals and products .... 28 9.9 126.1 127.3 127.0 124.8 124.9 124.9 125.2 126.3 125.9 124.8 125.9 126.4 126.7 126.8 89 Petroleum products 29 1.4 115.3 113.7 115.4 113.7 115.5 118.9 117.2 118.9 118.8 117.0 117.6 117.5 117.6 117.6 90 Rubber and plastic products . 30 3.5 139.7 141.4 142.7 143.2 143.2 143.0 143.5 142.6 143.5 144.4 142.1 141.6 141.2 139.5 91 Leather and products 31 .3 72.9 71.0 70.5 72.1 71.4 70.6 70.0 70.5 69.3 70.0 68.8 69.6 68.2 69.0 92 Mining 6.9 98.0 99.4 98.7 98.6 99.1 100.4 99.9 99.6 100.4 100.5 101.0 100.3 100.2 100.3 93 Metal 10 .5 99.9 98.7 98.6 101.3 99.1 99.7 98.8 95.7 97.5 92.9 95.8 95.2 95.3 93.6 94 Coal 12 1.0 107.8 108.7 108.2 106.8 102.6 110.1 112.6 112.2 113.6 110.3 109.3 107.0 110.2 108.6 95 Oil and gas extraction 13 4.8 92.5 94.2 93.4 93.5 94.0 94.6 94.0 94.3 94.8 95.7 96.3 95.7 95.3 95.7 96 Stone and earth minerals 14 .6 124.9 126.4 126.3 124.9 131.7 133.4 130.4 123.9 127.7 124.4 125.0 124.1 124.1 122.7 97 Utilities 7.7 117.1 113.5 117.4 117.8 119.5 114.7 118.7 121.6 121.7 119.1 122.1 123.4 120.9 125.3 98 Electric 491,493PT 6.2 120.2 119.7 121.2 120.8 121.0 119.7 122.8 125.2 124.8 121.1 126.1 127.0 124.3 128.1 99 Gas 492.493PT 1.6 106.1 92.8 104.1 106.8 113.1 98.3 104.4 108.7 110.5 111.0 108.4 110.6 108.8 114.5 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 143.6 146.2 147.2 147.9 148.7 150.1 151.0 151.7 152.6 153.2 153.5 154.1 154.4 153.9 101 Manufacturing excluding computer and office equipment 83.6 138.4 140.6 141.2 141.9 142.3 143.6 144.4 145.2 145.8 145.4 146.2 146.6 146.5 145.6 102 Computers, communications equipment, and semiconductors 5.9 777.6 869.9 905.9 955.1 999.4 1,048.5 1,097.8 1,140.2 1,193.1 1,248.0 1,281.6 1.311.9 1,334.0 1.353.6 103 Manufacturing excluding computers and semiconductors 81.1 125.5 126.6 126.9 127.1 127.1 127.8 128.0 128.4 128.4 127.7 128.2 128.4 128.2 127.4 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 123.0 124.1 124.3 124.3 124.3 124.9 125.1 125.4 125.3 124.5 124.9 125.1 124.8 123.9 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,784.6 2,795.0 2,812.2 2,828.5 2,846.9 2,853.1 2,868.9 2,872.7 2,883.5 2,865.7 2,882.9 2,892.7 2,872.3 2,870.3 106 Final 1,552.1 2,142.0 2,146.0 2,156.4 2,170.2 2,183.5 2,186.3 2,202.8 2,205.6 2,218.6 2,202.8 2,220.5 2,228.6 2,206.6 2,211.0 107 Consumer goods 1,049.6 1,322.9 1,328.0 1,337.2 1,334.8 1,342.3 1,338.5 1,347.2 1,349.8 1,357.8 1,338.7 1,348.7 1,356.2 1,338.3 1.342.0 108 Equipment 502.5 813.1 821.3 822.1 840.3 846.2 854.0 862.2 862.2 867.3 872.8 880.8 880.8 877.8 878.2 109 Intermediate 449.9 642.5 648.1 654.7 657.2 662.3 665.6 665.0 666.0 663.9 661.8 661.5 663.2 664.6 658.5 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 December 2000. The recent annual revision is described in an article in the Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. March 2001 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 • February 2001 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 2000 IItteemm 11999977 11999988 11999999 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,441 1,612 1,664 1,762 1,661 1,597 1,559 1,511 1,528 1,511 1,486 1,518 1,546 2 One-family 1,062 1,188 1,247 1,317 1,223 1,238 1,164 1,150 1,127 1,117 1,140 1,157 1,191 3 Two-family or more 379 425 417 445 438 359 395 361 401 394 346 361 355 4 Started 1,474 1,617 1,667 1,744 1,822 1,630 1,652 1,591 1,571 1,527 1,519 1,537 1,528 5 One-family 1,134 1,271 1,335 1,361 1,324 1,327 1,310 1,258 1,227 1,201 1,229 1,226 1,225 6 Two-family or more 340 346 332 383 498 303 342 333 344 326 290 311 303 7 Under constniction at end of period1 847 971 993 1,033 1,041 1,031 1,029 1,023 1,024 1,020 1,016 1,011 1,009 8 One-family 555 659 679 712 712 706 703 697 696 691 692 690 693 9 Two-family or more 292 312 314 321 329 325 326 326 328 329 324r 321 316 10 Completed 1,400 1,474 1,636 1,599 1,732 1,728 1,660 1,705 1,545 1,531 1,612 1,569 1,555 11 One-family 1,116 1,160 1,307 1,296 1,382 1,375 1,354 1,377 1,222 1,216 1,266 1,225 1,208 12 Two-family or more 284 315 329 303 350 353 306 328 323 315 346 344 347r 13 Mobile homes shipped 354 374 348 307 291 287 271 265 262 251 249 231 213 Merchant builder activity in one-family units 14 Number sold 804 886 907 927 905 947 865 875 827 914 852 953 928 15 Number for sale at end of period1 287 300 326 321 309 321 305 308 312 311 313 311 317 Price of units sold (thousands of dollars)2 16 Median 146.0 152.5 160.0 163.0 162.3 165.7 163.1 165.0 159.9 168.6 165.0 169.9 174.9 17 Average 176.2 181.9 195.8 200.1 199.6 205.3 207.5 200.1 197.7 202.4 199.3 204.3 218.4 EXISTING UNITS (one-family) 18 Number sold 4,382 4,970 5,197 4,450 4,760 5,200 4,880 5,090 5,310 4,820 5,280 5,160 4,960 Price of units sold (thousands of dollars)2 19 Median 121.8 128.4 133.3 132.2 133.7 134.7 136.1 137.6 140.2 143.3 143.2 141.6 138.2 20 Average 150.5 159.1 168.3 168.9 168.1 171.5 173.3 176.0 178.9 177.7 183.0 178.6 177.8 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 656,084 710,104 765,719 806,099 816,012 829,517 816,156 811,816 798,860 786,390 802,723 818,021 824,960 22 Private 501,426 550,983 592,037 614.584 629,590 637,743 629,491 629,820 624,383 612,031 617,988 630,529 639,183 23 Residential 289,101 314,058 348,584 365,149 368,745 372,118 368,948 367,653 363,756 347,488 350,489 353,003 360,537 24 Nonresidential 212,325 236,925 243,454 249,435 260,845 265,625 260,543 262,167 260,627 264,543 267,499 277,526 278,646 25 Industrial buildings 36,696 40,464 35,016 33,947 38,538 39,030 38,670 39,814 39,951 42,165 41,552 42,378 44,579 26 Commercial buildings 86,151 95,753 103,759 107,961 115,440 116,030 115,042 113,381 112,834 112,167 115,497 118,807 120,001 27 Other buildings 37,193 39,607 41,279 43,350 45,553 45,808 44,136 45,540 44,559 45,772 46,765 47,458 47,449 28 Public utilities and other 52,287 61,101 63,400 64,177 61,314 64,757 62,695 63,432 63,283 64,439 63,685 68,883 66,617 29 Public 154,657 159,121 173,682 191,515 186,422 191,774 186,665 181,995 174,477 174,359 184,735 187,492 185,777 30 Military 2,561 2,538 2,122 1,782 3,011 2,249 2,180 2,246 2,157 2,102 2,318 2,420 1,873 31 Highway 43,886 48,339 54,447 63,368 53,145 59,007 55,923 51,966 48,148 49,664 52,658 52,874 47,353 32 Conservation and development 5,708 5,421 6,002 6.223 6,975 6,494 5,840 5,363 5,832 4,864 5,614 5,972 6,792 33 Other 102,502 102,823 111,110 120,142 123,291 124,024 122,722 122,420 118,340 117,729 124,145 126,226 129,759 1. Not at annual rates. SOURCE. Bureau of the Census estimates for all series except (1) mobile homes, which are 2. Not seasonally adjusted. private, domestic shipments as reported by the Manufactured Housing Institute and season- 3. Recent data on value of new construction may not be strictly comparable with data for ally adjusted by the Census Bureau, and (2) sales and prices of existing units, which are previous periods because of changes by the Bureau of the Census in its estimating techniques. published by the National Association of Realtors. All back and current figures are available For a description of these changes, see Construction Reports (C-30-76-5), issued by the from the originating agency. Permit authorizations are those reported to the Census Bureau Census Bureau in July 1976. from 19,000 jurisdictions beginning in 1994. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A47 2.15 CONSUMER AND PRODUCER PRICES Percentage changes based on seasonally adjusted data except as noted Change from 12 Change from 3 months earlier Change from 1 month earlier months earlier (annual rate) IIInnndddeeexxx llleeevvveeelll,,, IIIttteeemmm 1999 2000 2000 NNNooovvv... 11999999 22000000 222000000000111 NNoovv.. NNoovv.. Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. CONSUMER PRICES2 (1982-84=100) 1 AH items 2.6 3.4 2.4 6.1 2.6 2.8 .2 -.1 .5 .2 .2 174.1 ? Food 1.9 2.2 2.2 1.7 2.7 3.9 .5 2 .2 .1 .0 168.9 3 Energy items 10.6 16.0 7.8 50.5 6.6 3.5 .1 -2.9 3.8 .2 .1 129.0 4 All items less food and energy 2.1 2.6 1.8 3.4 2.2 2.7 .2 .2 .3 .2 .3 183.0 Commodities .8 .7 -.6 .3 .0 1.7 .0 -.1 .5 -.1 .3 146.0 6 Services 2.7 3.4 3.1 4.7 3.0 3.0 .3 .3 .1 .2 .3 204.2 PRODUCER PRICES (1982=100) 7 Finished goods 3.1 3.7 .9 7.9 2.3 2.0 .1' — ,4R .9 .4 .1 139.9 8 Consumer foods .4 2.0 -2.0 3.6 2.7 -2.3 -.R -,8R .4 .8 .2 138.1 9 Consumer energy 14.8 18.8 5.9 51.8 8.3 8.6 —1.4' 3.7 1.4 .4 99.3 10 Other consumer goods 2.9 1.0 1.1 .8 1.0 2.1 A .1 .4 .0 -.1 155.0 11 Capital equipment .1 1.1 1.2 .9 1.2 1.7 .R ,lr .2 .0 .0 139.8 Intermediate materials 17 Excluding foods and feeds 3.1 4.4 3.6 9.5 3.1 3.1 ,4r -,3R .7 .2 -.2 131.5 13 Excluding energy 1.5 1.7 2.1 4.2 2.7 .3 .2 -.1 .0 .0 -.1 136.7 Crude materials 14 Foods -2.8 1.0 -3.6 21.5 -10.4 -14.0 -2.9 -4.5 3.9 3.5 1.3 100.5 15 Energy 47.8 36.3 -27.9 84.9 163.6 11.8 -2.3R -2.1' 8.1 4.6 -4.1 134.8 16 Other 9.5 -3.4 26.2 9.9 -10.7 -10.5 -1.6R — 1.4r .3 -.6 -2.3 137.7 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 • February 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 Q3r GROSS DOMESTIC PRODUCT 1 Total 8318.4 8,790.2 9,299.2 9,340.9 9,559.7 9,752.7 9,945.7 10,039.4 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 6,810.8 3 Durable goods 642.5 693.9 761.3 767.2 787.6 826.3 814.3 824.7 4 Nondurable goods 1.641.6 1,707.6 1,845.5 1,860.0 1,910.2 1,963.9 1,997.6 2,031.5 5 Services 3,245.2 3,449.3 3,661.9 3,692.7 3,748.5 3,831.6 3,894.4 3,954.6 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 1,869.3 7 Fixed investment 1,327.7 1,472.9 1,606.8 1,622.4 1,651.0 1,725.8 1,780.5 1,803.0 8 Nonresidential 999.4 1,107.5 1,203.1 1,216.8 1,242.2 1,308.5 1,359.2 1,390.6 9 Structures 255.8 283.2 285.6 281.2 290.4 308.9 315.1 330.1 10 Producers' durable equipment 743.6 824.3 917.4 935.6 951.8 999.6 1,044.1 1,060.5 11 Residential structures 328.2 365.4 403.8 405.6 408.8 417.3 421.3 412.4 12 Change in business inventories 62.9 77.0 43.3 36.7 72.7 29.9 72.0 66.4 13 Nonfarm 60.0 76.4 43.6 42.0 71.8 32.4 72.2 67.5 14 Net exports of goods and services -89.3 -151.5 -254.0 -280.5 -299.1 -335.2 -355.4 -389.5 15 Exports 966.4 966.0 990.2 999.5 1,031.0 1,051.9 1,092.9 1,130.8 16 Imports 1.055.8 1,117.5 1,244.2 1,280.0 1,330.1 1,387.1 1,448.3 1,520.3 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 1,748.8 18 Federal 538.2 540.6 568.6 570.4 591.6 580.1 604.5 594.2 19 State and local 949.7 1,000.3 1,065.8 1,072.1 1,097.3 1,130.4 1,137.7 1,154.6 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 9,973.1 21 Goods 3,082.5 3,239.3 3,467.0 3,490.6 3,566.0 3,680.3 3,734.1 3,776.5 22 Durable 1,436.2 1,532.3 1,651.1 1,669.4 1,701.8 1,773.7 1,809.6 1,830.6 23 Nondurable 1,646.4 1,707.1 1,815.8 1,821.1 1,864.1 1,906.6 1,924.5 1,945.9 24 Services 4,442.1 4.673.0 4,934.6 4,965.2 5,050.3 5,135.2 5,231.4 5,281.6 25 Structures 730.9 800.9 854.3 848.5 870.7 907.4 908.2 915.0 26 Change in business inventories 62.9 77.0 43.3 36.7 72.7 29.9 72.0 66.4 27 Durable goods 33.1 45.8 27.2 27.6 47.5 20.7 48.3 39.2 28 Nondurable goods 29.8 31.2 16.1 9.1 25.2 9.2 23.7 27.2 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 9,369.5 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 8,088.5 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 5,679.6 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 4,804.9 33 Government and government enterprises 664.3 692.7 724.4 727.5 734.5 749.9 760.2 765.4 34 Other 3,221.7 3,500.1 3,750.7 3,784.7 3,849.0 3,910.5 3,980.0 4,039.5 35 Supplement to wages and salaries 765.3 791.4 824.6 828.7 837.7 851.8 863.3 874.7 36 Employer contributions for social insurance 289.9 305.9 323.6 325.9 330.3 337.8 342.9 347.1 37 Other labor income 475.4 485.5 501.0 502.8 507.4 514.0 520.5 527.6 38 Proprietors' income1 581.2 620.7 663.5 659.7 689.6 693.9 709.5 724.8 39 Business and professional1 551.5 595.2 638.2 644.2 657.9 674.8 688.1 693.1 40 Farm1 29.7 25.4 25.3 15.5 31.7 19.1 21.5 31.7 41 Rental income of persons" 128.3 135.4 143.4 136.6 146.2 145.6 140.8 138.1 42 Corporate profits' 833.8 815.0 856.0 842.0 893.2 936.3 963.6 970.3 43 Profits before tax3 792.4 758.2 823.0 819.0 870.7 920.7 942.5 945.1 44 Inventory valuation adjustment 8.4 17.0 -9.1 -19.7 -19.2 -25.0 —13.6 -4.5 45 Capital consumption adjustment 32.9 39.9 42.1 42.7 41.6 40.6 34.7 29.7 46 Net interest 423.9 482.7 507.1 513.8 530.6 545.4 565.9 575.7 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 Q3R 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 8,349.0 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 4,804.9 3 Commodity-producing industries 975.1 1,038.6 1,089.2 1,097.8 1,111.2 1,130.9 1,147.1 1,161.4 4 Manufacturing 718.4 756.6 782.4 789.0 795.1 802.8 813.1 821.4 Distributive industries 879.6 949.1 1,020.3 1,029.9 1,049.4 1,070.9 1,095.7 1,118.1 6 Service industries 1,369.9 1,510.3 1,636.0 1,651.8 1,683.2 1,708.6 1,737.2 1,760.1 7 Government and government enterprises 664.3 692.7 724.4 727.5 734.5 749.9 760.2 765.4 8 Other labor income 475.4 485.5 501.0 502.8 507.4 514.0 520.5 527.6 <3 Proprietors' income' 581.2 620.7 663.5 659.7 689.6 693.9 709.5 724.8 in Business and professional 551.5 595.2 638.2 644.2 657.9 674.8 688.1 693.1 11 Farm 29.7 25.4 25.3 15.5 31.7 19.1 21.5 31.7 n Rental income of persons" 128.3 135.4 143.4 136.6 146.2 145.6 140.8 138.1 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 1,042.9 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 8,349.0 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 7,040.9 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 7,054.7 22 EQUALS: Personal saving 252.9 265.4 147.6 121.1 101.0 11.0 20.6 -13.8 MEMO Per capita (chained 1996 dollars) Gross domestic product 30,434.4 31,474.2 32,512.4 32,586.0R 3333,,115533..55RR 3333,,448855..66 3333,,887744..77RR 3333,,998844..33 24 Personal consumption expenditures 20,230.9 20,988.5 21,900.7 22,004.4 22,266.4 22,635.5R 22,757.7R 22,959.1 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 23,732.0 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 1,854.7 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 1,319.2 79 Personal saving 252.9 265.4 147.6 121.1 101.0 11.0 20.6 -13.8 30 Undistributed corporate profits 261.3 218.9 229.4 214.0 241.7 262.7 278.5 279.6 31 Corporate inventory valuation adjustment 8.4 17.0 -9.1 -19.7 -19.2 -25.0 -13.6 -4.5 Capital consumption allowances 37 Corporate 581.5 624.3 676.9 687.7 694.8 711.5 773311..11 775500..00 33 Noncorporate 250.9 265.1 284.5 293.1 288.7 294.1 298.7 303.3 34 Gross government saving 158.6 278.7 374.1 395.7 414.9 497.7 515.7 535.5 35 Federal 33.4 137.4 217.3 240.6 238.4 333.0 339.9 354.1 36 Consumption of fixed capital 86.8 88.4 92.8 93.4 95.0 97.2 98.9 100.8 37 Current surplus or deficit ( —), national accounts -53.3 49.0 124.4 147.3 143.3 235.8 240.9 253.3 38 State and local 125.2 141.3 156.8 155.1 176.6 164.7 175.8 181.4 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 63.2 41 Gross investment 1,532.1 1,629.6 1,645.6 1,627.3 1,678.5 1,699.3 1,771.9 1,752.8 4? 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 1,869.3 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 -450.1 45 Statistical discrepancy 29.7 -24.8 -71.9 -89.5 -67.8 -77.7 -72.5 -101.8 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 • February 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 Q3 Q4 Ql Q2r Q3P 1 Balance on current account -140.540 -217,138 -331,479 -89,649 -96,223 -101,505 -104,971 -113,773 ? Balance on goods and services -105.932 -166,898 -264,971 -72,718 -76,280 -85,117 -88,598 -96,503 3 Exports 936,937 932,977 956,242 241,969 249,653 255,977 265,969 274,657 4 Imports -1,042,869 -1,099,875 -1,221,213 -314,687 -325,933 -341,094 -354,567 -371,160 5 Income, net 6.186 -6,211 -18,483 -5,535 -5,683 -4,364 -4,103 -4,518 6 Investment, net 11,050 -1,036 -13,102 -4,193 -4,319 -2,987 -2,706 -3,172 7 Direct 71,935 67,728 62,704 15,701 16,275 17,068 19,015 21,558 8 Portfolio -60,885 -68,764 -75,806 -19,894 -20,594 -20.055 -21,721 -24,730 9 Compensation of employees -4,864 -5,175 -5,381 -1,342 -1,364 -1,377 -1,397 -1,346 10 Unilateral current transfers, net -40,794 -44,029 -48,025 -11,396 -14,260 -12,024 -12.270 -12,752 11 Change in U.S. government assets other than official reserve assets, net (increase, —) 68 -422 2,751 -686 3,711 -131 -574 111100 12 Change in U.S. official reserve assets (increase, -) -1,010 -6,783 8,747 1,951 1,569 -554 2.020 -346 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -350 -147 10 -184 -178 -180 -180 -182 15 Reserve position in International Monetary Fund -3,575 -5,119 5,484 2,268 1,800 -237 2,328 1,300 16 Foreign currencies 2.915 -1,517 3,253 -133 -53 -137 -128 -1,464 17 Change in U.S. private assets abroad (increase, —) -487.998 -328,231 -441,685 -124,174 -120,162 -178,273 -93,870 -76.968 18 Bank-reported claims' -141.118 -35,572 -69,862 -11,259 -45,304 -55,511 18,320 -11,383 19 Nonbank-reported claims -122,888 -10,612 -92,328 -27,943 -24.428 -52,563 -36,507 931 20 U.S. purchases of foreign securities, net -118,976 -135,995 -128,594 -41,420 -17,150 -27,236 -38,196 -30,428 21 U.S. direct investments abroad, net -105,016 -146,052 -150,901 -43,552 -33,280 -42,963 -37,487 -36,088 22 Change in foreign official assets in United States (increase, +) 18,876 -20,127 42,864 12,191 27,495 22,015 6.346 11,625 23 U.S. Treasury securities -6,690 -9.921 12,177 12,963 5,122 16,198 -4,000 -9,001 24 Other U.S. government obligations 4,529 6,332 20,350 1,835 6,730 8,107 10.334 14,272 25 Other U.S. government liabilities' -1,041 -3,550 -3,255 -760 89 -644 -781 -620 26 Other U.S. liabilities reported by U.S. banks3 22,286 -9,501 12,692 -2,032 14,427 -2,577 -111 6,339 27 Other foreign official assets4 -208 -3,487 900 185 1,127 931 904 635 28 Change in foreign private assets in United States (increase, +) 738.086 502,362 710,700 182,019 157.072 214.520 238.803 188,544 29 U.S. bank-reported liabilities" 149,026 39,769 67,403 24,585 19,618 -8,824 46,943 13.981 30 U.S. nonbank-reported liabilities 113,921 -7,001 34,298 -8.085 792 58,061 24,038 2,633 31 Foreign private purchases of U.S. Treasury securities, net 146,433 48,581 -20,464 9,639 -17,191 -9,248 -20,597 -12,642 3? U.S. currency flows 24,782 16,622 22,407 4,697 12,213 -6,847 989 757 33 Foreign purchases of other U.S. securities, net 197,892 218,075 331,523 95,620 92,250 132,416 87,107 118,882 34 Foreign direct investments in United States, net 106.032 186,316 275,533 55,563 49,390 48,962 100,323 64,933 35 Capital account transactions, net5 350 637 -3,500 171 -3,993 166 170 165 36 Discrepancy -127,832 69,702 11,602 18,177 30,531 43,762 -47,924 -9.357 37 Due to seasonal adjustment -9,739 5,738 5,724 -2,515 -9,691 38 Before seasonal adjustment -127.832 69.702 11,602 27,916 24,793 38,038 -45,409 334 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) -1,010 -6,783 8,747 1,951 1,569 -554 2,020 --334466 40 Foreign official assets in United States, excluding line 25 (increase, +) 19,917 -16,577 46,119 12,951 27.406 22,659 7,127 12,245 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) 12.124 -11,531 1,331 -783 -1,673 6.109 1,913 33,,445500 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38—4-1. corporations and state and local governments. 2. Reporting banks included all types of depository institutions as well as some brokers 5. Consists of capital transfers (such as those of accompanying migrants entering or and dealers. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Associated primarily with military sales contracts and other transactions arranged with nonfinancial assets. or through foreign official agencies. SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Swrvev 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 Apr.r Mayr June' July' Aug.' Sept. Oct.p 1 Goods and services, balance -105,932 -166,898 -264,971 -29,171 -29,604 -29,826 -31,824 -30,059 -33,741 -33,184 2 Merchandise -196,665 -246,854 -345,559 -36,894 -36,475 -36,862 -38,524 -36,684 -39,329 -39,488 3 Services 90,733 79,956 80,588 7,723 6,871 7,036 6,700 6,625 5,588 6,304 4 Goods and services, exports 936,937 932,977 956,242 87,606 87,074 91,288 89,655 92,868 92,654 91,231 5 Merchandise 679,702 670,324 684,358 62,566 62,749 66,468 65,096 67,973 67,836 66,431 6 Services 257,235 262,653 271,884 25,040 24,325 24,820 24,559 24,895 24,818 24,800 7 Goods and services, imports 1,042,869 1,099,875 1,221,213 -116,777 -116,678 -121,114 -121,479 -122,927 -126,395 -124,415 8 Merchandise 876,367 917,178 1,029,917 -99,460 -99,224 -103,330 -103,620 -104,657 -107,165 -105,919 9 Services 166,502 182,697 191,296 -17,317 -17,454 -17,784 -17,859 -18,270 -19,230 -18,496 1. Data show monthly values consistent with quarterly figures in the US. balance of SOURCE. FT900, US. 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 May June July Aug. Sept. Oct. Nov. Dec? 1 Total 69,954 81,761° 71,516 67,160 67,955° 66,516 65,333 66,256 65,257 65,523 67,647 2 Gold stock1 11,047° 11,046° 11,048° 11,048 11,046° 11,046 11,046 11,046 11,046 11,046 11,046 3 Special drawing rights2'3 10,027 10,603 10,336 10,310 10,444 10,257 10,371 10,316 10,169 10,369 10,539 4 Reserve position in International Monetary Fund2 18,071 24,111 17,950 15,373 15,428 15,083 13,798 13,685 13,528 13,491 14,824 5 Foreign currencies4 30,809 36,001 32,182 30,429 31,037 30,130 30,118 31,209 30,514 30,617 31,238 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 May June July Aug. Sept. Oct. Nov. Dec.p 1 Deposits 457 167 71 110 104 76 78 139 115 104 215 Held in custody 2 U.S. Treasury securities2 620,885 607,574 632,482 623,553 627,081 624,177 628,001 611,641 595,591 591,071 594,094 3 Earmarked gold3 10,763 10,343 9,933 9,711 9,688 9,688 9,674 9,620 9,565 9,505 9,451 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 • February 2001 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2000 IItteemm 11999988 11999999 Apr.r Mayr Juner Julyr Aug.1" Sept. Oct.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 certificates' 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 10,552 12,503 13,338 13,027 13,542 13,728 12,992 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 3,157 4,266 4,567 3,618 4,624 5,882 5,678 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 States' Payable in Foreign Currencies Millions of dollars, end of period 1999 2000 IItteemm 11999966 11999977 11999988 Dec. Mar. Juner Sept. 1 Banks' liabilities 103,383 117,524 101,125 88.537 85,649 85,842 78,872 2 Banks' claims 66,018 83,038 78,162 67.365 63,492 67,862 60,355 3 Deposits 22,467 28.661 45.985 34.426 32,967 31,224 25,847 4 Other claims 43,551 54,377 32,177 32.939 30,525 36,638 34,508 5 Claims of banks' domestic customers2 10,978 8,191 20.718 20.826 21,753 18,802 19,123 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2000 IItteemm 11999977 11999988 11999999 Apr. May June July Aug. Sept. Oct.p BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,283,027 1,347,837 1,413,622 1,408,223 1,457,629 1,456,560 1,486,568 L,449,693R 1,453,644 1,502,805 2 Banks' own liabilities 882,980 884,939 976,400 976,662 1,036,677 1,017,559 1,056,717 1,018,63 lr 1,027,139 1,073,381 3 Demand deposits 31,344 29,558 42,884 30,202 29,097 30,719 34,914 30,101 31,964 29,500 4 Time deposits2 198,546 151,761 163,595 182,657 176,927 182,787 186,483 184,820 184,822 185,520 5 Other3 168,011 140,752 162,749 165,626 179,090 175,905 178,711 179,177 174,458 194,516 6 Own foreign offices4 485,079 562,868 607,172 598,177 651,563 628,148 656,609 624,533r 635,895 663,845 7 Banks' custodial liabilities5 400,047 462,898 437,222 431,561 420,952 439,001 429,851 431,062 426,505 429,424 8 U.S. Treasury bills and certificates6 193.239 183,494 185,736 184,159 174,310 180,951 182,699 180,925 174,604 173,984 9 Other negotiable and readily transferable instruments7 93,641 141,699 132,575 124,207 123,580 124,670 120,624 119,212 120,296 122,525 10 Other 113,167 137,705 118,911 123,195 123,062 133,380 126,528 130,925 131,605 132,915 11 Nonmonetary international and regional organizations8 . . 11,690 11,883 15,276 20,590 22,807 21,366 16,689 14,630 15,658 17,104 12 Banks' own liabilities 11,486 10,850 14,357 19,800 22,109 20,924 16,294 14,377 15,404 16,751 13 Demand deposits 16 172 98 58 36 34 30 26 19 48 14 Time deposits2 5,466 5,793 10,349 11,338 11,393 12,545 10,305 9,062 7,627 5,925 15 Other3 6.004 4,885 3,910 8,404 10,680 8,345 5,959 5,289 7,758 10,778 16 Banks' custodial liabilities5 204 1,033 919 790 698 442 395 253 254 353 17 U.S. Treasury bills and certificates6 69 636 680 623 582 432 371 217 223 215 18 Other negotiable and readily transferable instruments7 133 397 233 77 113 10 21 26 26 138 19 Other 2 0 6 90 3 0 3 10 5 0 20 Official institutions9 283,685 260,060 294,994 295,331 284,622 293,319 299,720 296,770 298,508 301,003 21 Banks' own liabilities 102,028 80,256 97,615 87,379 87.931 88,449 92,739 90,985 95,049 102,104 22 Demand deposits 2,314 3,003 3,341 2,620 2,781 2,887 4,063 4,573 5,213 4,361 23 Time deposits' 41,396 29,506 28,942 36,587 31,645 33,520 34,641 32,009 36,679 34,015 24 Other3 58,318 47,747 65,332 48,172 53,505 52,042 54,035 54,403 53,157 63,728 25 Banks' custodial liabilities5 181,657 179,804 197,379 207,952 196,691 204,870 206,981 205,785 203,459 198,899 26 U.S. Treasury bills and certificates6 148,301 134,177 156,177 157,607 148,820 157,190 160,093 159,781 155,498 155,101 27 Other negotiable and readily transferable instruments7 33,151 44,953 41,152 50,118 47,734 47,611 46,363 45,644 47,660 43,753 28 Other 205 674 50 227 137 69 525 360 301 45 29 Banks10 815,247 885,336 905,347 892,804 941,920 930,663 961,456 926,392r 927,116 963,227 30 Banks' own liabilities 641,447 676,057 733,381 732,303 781,795 759,887 798,322 759,304r 762,409 796,950 31 Unaffiliated foreign banks 156,368 113,189 126,209 134,126 130,232 131,739 141,713 134,771 126,514 133,105 32 Demand deposits 16,767 14,071 17,583 14,404 13,254 14,543 17,508 11,959 12,918 12,160 33 Time deposits" 83,433 45,904 48,140 57,240 55,167 58,095 60,703 62,841 59,958 64,467 34 Other3 56,168 53,214 60,486 62,482 61,811 59,101 63,502 59,971 53,638 56,478 35 Own foreign offices4 485,079 562,868 607,172 598,177 651,563 628,148 656,609 624,533r 635,895 663,845 36 Banks' custodial liabilities5 173,800 209,279 171,966 160,501 160,125 170,776 163,134 167,088 164,707 166,277 37 U.S. Treasury bills and certificates6 31,915 35,359 16,875 13,931 14,179 13,239 12,657 12,251 10,667 9,972 38 Other negotiable and readily transferable instruments7 35,393 45,332 45,695 33,790 33,667 34,657 34,018 33,893 32,679 34,232 39 Other 106,492 128,588 109,396 112,780 112,279 122,880 116,459 120,944 121,361 122,073 40 Other foreigners 172,405 190,558 198,005 199,498 208,280 211,212 208,743 211,901 212,362 221,471 41 Banks' own liabilities 128,019 117,776 131,047 137,180 144,842 148,299 149,362 153,965 154,277 157,576 42 Demand deposits 12,247 12,312 21,862 13,120 13,026 13,255 13,313 13,543 13,814 12,931 43 Time deposits" 68,251 70,558 76,164 77,492 78,722 78,627 80,834 80,908 80,558 81,113 44 Other3 47,521 34,906 33,021 46,568 53,094 56,417 55,215 59,514 59,905 63,532 45 Banks' custodial liabilities5 44,386 72,782 66,958 62,318 63,438 62,913 59,381 57,936 58,085 63,895 46 U.S. Treasury bills and certificates6 12,954 13,322 12,004 11,998 10,729 10,090 9,579 8,676 8,216 8,696 47 Other negotiable and readily transferable instruments7 24,964 51,017 45,495 40,222 42,066 42,392 40,261 39,649 39,931 44,402 48 Other 6,468 8,443 9,459 10,098 10,643 10,431 9,541 9,611 9,938 10,797 MEMO 49 Negotiable time certificates of deposit in custody for foreigners 16,083 27,026 30,345 26,087 27,238 26,571 26,186 25,911 25,991 27,164 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 • February 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 Apr. May June July Aug. Sept. Oct.p AREA 50 Total, all foreigners 1,283,027 1,347,837 1,413,622 1,408,223 1,457,629 1,456,560 1,486,568 l,449,693r 1,453,644 1,502,805 51 Foreign countries 1,271,337 1,335,954 1,398,346 1,387,633 1,434,822 1,435,194 1,469,919 l,435,063r 1,437,986 1,485,701 52 Europe 419,672 427,375 448,070 433,782 435,694 448,745 481,802 455,479R 459,595 479,894 53 Austria 2,717 3,178 2,789 2,302 2,468 2,697 3,239 2,783 2,541 2,037 54 Belgium and Luxembourg 41,007 42,818 44,692 33,100 31,656 31,246 33,282 31,281 29,828 29,438 55 Denmark 1,514 1,437 2,196 2,601 3,629 3,444 3,521 3,689 3,429 3,001 56 Finland 2,246 1,862 1,658 1,744 1,529 1,380 1,751 1,618 1,512 1,418 57 France 46,607 44,616 49,790 45,324 43,577 42,105 42,379 42,723 39,693 41,065 58 Germany 23,737 21,357 24,748 23,710 24,875 28,943 26,484 25,893 26,212 28,658 59 Greece 1,552 2,066 3,748 3,188 3,030 2,765 2,917 3,455 3,331 3,420 60 Italy 11,378 7,103 6,775 4,788 7,142 6,676 5,700 5,566 5,959 5,700 61 Netherlands 7,385 10,793 8,310 7,277 6,823 8,728 12,313 13,087 10,311 14,253 62 Norway 317 710 1,327 1,197 963 2,189 2,337 1,636 3,501 4,101 63 Portugal 2,262 3,236 2,228 1,913 1,964 2,373 2,169 2,144 2,244 2,261 64 Russia 7,968 2,439 5,475 10,065 11,716 11,884 14,960 14,252 15,970 17,230 65 Spain 18,989 15,781 10,426 11,208 10,796 9,999 8,829 8,791 8,410 9,270 66 Sweden 1,628 3,027 4,652 5,165 4,390 5,434 5,100 5,992 6,220 6,247 67 Switzerland 39,023 50,654 65,985 69,208 63,700 59,561 78,195 77,578 88,276 97,099 68 Turkey 4,054 4,286 7,842 8,016 7,501 8,472 8,341 7,999 8,173 8,492 69 United Kingdom 181,904 181,554 176,234 169,221 176,824 187,806 197,309 174,653r 171,867 170,376 70 Yugoslavia" 239 233 286 265 275 276 277 277 275 271 71 Other Europe and other former U.S.S.R.12 25,145 30,225 28,909 33,490 32,836 32,767 32,699 32,062 31,843 35,557 72 Canada 28,341 30,212 34,119 40,562 36,229 37,256 37,231 33,722 33,881 27,198 73 Latin America and Caribbean 536,393 554,866 577,737 606,768 663,827 641,087 644,766 634,413 637,604 658,168 74 Argentina 20,199 19,014 18,633 18,487 16,496 16,540 19,092 17,552 18,560 18,746 75 Bahamas 112,217 118,085 134,407 159,115 173,589 181,673 170,535 176,109 171,457 180,951 76 Bermuda 6,911 6,846 7,877 9,710 8,713 8,021 7,074 8,157 8,100 8,730 77 Brazil 31,037 15,815 12,860 10,305 9,945 10,905 11,950 12,351 11,537 10,204 78 British West Indies 276,418 302,486 312,779 317,044 360,314 325,537 340,713 322,831 331,097 340,895 79 Chile 4,072 5,015 7,008 5,933 6,095 6,192 5,440 5,296 5,346 5,105 80 Colombia 3,652 4,624 5,669 4,243 4,237 4,360 4,627 4,735 4,658 4,945 81 Cuba 66 62 75 77 77 85 122 91 88 93 82 Ecuador 2,078 1,572 1,956 2,193 2,274 2,272 2,219 2,082 2,074 2,084 83 Guatemala 1,494 1,336 1,626 1,628 1,669 1,649 1,730 1,659 1,671 1,667 84 Jamaica 450 577 520 670 706 674 725 915 830 680 85 Mexico 33,972 37,157 30,717 32,832 33,915 33,937 33,379 33,291 33,878 36,054 86 Netherlands Antilles 5,085 5,010 3,997 5,108 6,561 7,885 7.164 6,373 5,159 4,614 87 Panama 4,241 3,864 4,415 3,788 3,764 3,822 3,353 3,561 3,661 3,788 88 Peru 893 840 1,142 1,021 1,100 1,125 1,097 1,065 1,091 1,153 89 Uruguay 2,382 2,486 2,386 2,431 2,520 2,680 2,179 2,541 2,567 2,512 90 Venezuela 21,601 19,894 20,189 21,140 20,469 22,263 21,462 23,909 23,997 24,283 91 Other 9,625 10,183 11,481 11,043 11,383 11,467 11,905 11,895 11,833 11,664 92 Asia 269,379 307,960 319,302 288,739 282,325 290,016 285,018 291,017 286,551 299,145 China 93 Mainland 18,252 13,441 12,325 8,529 7,824 9,930 9,385 11,769 11,830 13,719 94 Taiwan 11,840 12,708 13,600 14,483 14,113 13,584 13,156 14,675 15,140 18,289 95 Hong Kong 17,722 20,900 27,697 22,873 23,951 23,952 25,675 26,749 26,583 25,784 96 India 4,567 5,250 7,367 5,586 5,703 5,558 5,712 5,547 5,838 5,548 97 Indonesia 3,554 8,282 6,567 7,275 7,064 7,400 7,342 7,318 7,310 7,589 98 Israel 6,281 7,749 7,488 7,058 5,541 6.123 5,794 5,951 7,132 6,668 99 Japan 143,401 168,563 159,075 147,409 148,668 153,662 147,549 146,382 142,782 150,196 100 Korea (South) 13,060 12,524 12,853 16,820 12,941 10,324 8,618 8,819 9,043 6,684 101 Philippines 3,250 3,324 3,253 2,290 1,750 1,999 1,649 1,679 1,822 1,676 102 Thailand 6,501 7,359 6,050 3,628 3,428 3.529 3,900 3,504 3,330 3,178 103 Middle Eastern oil-exporting countries 14,959 15,609 21,284 19,005 18,647 18,538 22,195 21,968 21,851 23,852 104 Other 25,992 32,251 41,743 33,783 32,695 35,417 34,043 36,656 33,890 35,962 105 Africa 10,347 8,905 9,468 8,576 8,437 8,718 9,739 9,607 9,821 9,625 106 Egypt 1,663 1.339 2,022 1,663 1,722 1,962 1,780 1,615 1,544 1,546 107 Morocco 138 97 179 106 122 149 118 109 112 121 108 South Africa 2,158 1,522 1,495 687 662 595 792 708 842 767 109 Zaire 10 5 14 7 13 6 5 7 5 4 110 Oil-exporting countries'4 3,060 3,088 2,914 3,558 3,298 3,405 4,258 4,470 4,499 4,406 111 Other 3,318 2,854 2,844 2,555 2,620 2,601 2,786 2,698 2,819 2,781 112 Other 7,205 6,636 9,650 9,206 8,310 9,372 11,363 10,825 10,534 11,671 113 Australia 6,304 5,495 8,377 8,413 7,586 8,564 10,346 9,825 9,507 10,562 114 Other 901 1,141 1,273 793 724 808 1,017 1,000 1,027 1,109 115 Nonmonetary international and regional organizations .. 11,690 11,883 15,276 20,590 22,807 21,366 16,689 14,630 15,658 17,104 116 International'5 10,517 10,221 12,876 19,207 21,375 20,106 15,295 13,118 14,387 16,126 117 Latin American regional16 424 594 1,150 518 624 768 786 1,146 888 589 118 Other regional'7 749 1,068 1,250 865 808 492 608 366 383 389 11. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 15. Principally the International Bank for Reconstruction and Development. Excludes 12. Includes the Bank for International Settlements. Since December 1992, has "holdings of dollars" of the International Monetary Fund. included all parts of the former U.S.S.R. (except Russia), and Bosnia, Croatia, and Slovenia. 16. Principally the Inter-American Development Bank. 13. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 17. Asian, African, Middle Eastern, and European regional organizations, except the Bank Emirates (Trucial States). for International Settlements, which is included in "Other Europe." 14. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 2000 AArreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 Apr. May June July Aug. Sept. Oct.P 1 Total, all foreigners 708,225 734,995 795,377 815,083 820,782 825,898 833,459 800,472 840,425 856,474 2 Foreign countries 705,762 731,378 790,814 810,081 816,439 820,887 829,573 796,695 835,560 851,251 3 Europe 199,880 233,321 315,905 350,067 359,895 357,243 361,594 331,384 359,865 359,753 4 Austria 1,354 1,043 2,643 2,429 2,242 2,148 2,617 1,956 2,584 2,820 Belgium and Luxembourg 6,641 7,187 10,193 7,939 5,959 6,393 6,302 5,819 6,344 6,009 6 Denmark 980 2,383 1,669 1,940 2,001 3,440 3,349 3,278 3,403 3,093 7 Finland 1,233 1,070 2,020 2,087 2,414 2,650 2,897 2,701 3,561 4,927 8 France 16,239 15,251 29,142 30,958 35,217 28,633 25,845 23,229 27,062 29,093 9 Germany 12,676 15,923 29,205 33,991 31,521 33,585 30,452 31,804 33,229 33,017 10 Greece 402 575 806 864 828 837 754 557 516 526 11 Italy 6,230 7,284 8,496 7,034 6,565 7,724 6,447 7,358 6,215 6,482 P Netherlands 6,141 5,697 11,810 13,932 14,377 15,668 13,159 14,999 15,507 16,226 13 Norway 555 827 1,000 1,499 1,832 1,935 2,401 1,448 4,474 4,655 14 Portugal 111 669 1,571 1,085 1,268 1,424 1,454 1,273 1,480 1,574 15 Russia 1,248 789 713 709 715 744 718 666 643 647 16 Spain 2,942 5,735 3,796 3,217 3,126 3,844 4,767 3,566 3,208 3,360 17 Sweden 1,854 4,223 3,264 8,100 7,112 8,744 8,404 8,761 8,501 8,504 18 Switzerland 28,846 46,874 79,158 97,688 105,573 86,284 94,550 87,172 100,345 103,724 19 Turkey 1,558 1,982 2,617 3,148 3,269 3,189 2,735 2,855 2,821 3,065 20 United Kingdom 103,143 106,349 120,190 125,935 128,259 141,769 147,073 127,335 132,503 121,921 21 Yugoslavia2 52 53 50 51 49 49 49 49 49 49 22 Other Europe and other former U.S.S.R.-1 7,009 9,407 7,562 7,461 7,568 8,183 7,621 6,558 7,420 10,061 23 Canada 27,189 47,037 37,206 43,300 45,481 42,591 40,420 37,934 37,610 38,647 74 Latin America and Caribbean 343,730 342,654 353,416 328,769 321,219 328,629 334,855 338,764 347,550 357,575 75 Argentina 8,924 9,552 10,167 9,732 9,507 9,386 10,630 10,597r 10,840 11,166 76 Bahamas 89,379 96,455 99,324 72,312 71,459 80,393 76,477 78,896 83,126 83,525 71 Bermuda 8,782 5,011 8,007 5,685 6,478 6,285 6,906 4,684 6,265 8,426 ?8 Brazil 21,696 16,184 15,706 16,210 16,376 16,544 18,199 18,555 19,061 20,197 ?9 British West Indies 145,471 153,749 167,189 173,907 165,920 164,969 172,262 175,936r 178,744 184,796 30 Chile 7,913 8,250 6,607 6,447 6,399 6,213 6,070 5,985 5,954 5,755 31 Colombia 6,945 6,507 4,524 3,907 4,032 3,796 3,909 3,953 3,850 3,846 3? Cuba 0 0 0 0 0 0 0 3 0 0 33 Ecuador 1,311 1,400 760 662 640 613 610 607 623 639 34 Guatemala 886 1,127 1,135 1,252 1,245 1,235 1,215 1,277 1,226 1,245 35 Jamaica 424 239 295 316 300 291 299 305 337 379 36 Mexico 19,428 21,212 17,899 16,944 16,771 17,066 16,426 16,840 16,849 16,737 37 Netherlands Antilles 17,838 6,779 5,982 6,388 6,579 6,502 6,652 5,804 5,770 6,158 38 Panama 4,364 3,584 3,387 2,844 2,984 3,063 2,981 2,882 2,781 2,674 39 Peru 3,491 3,275 2,529 2,356 2,515 2,458 2,488 2,487 2,697 2,670 40 Uruguay 629 1,126 801 714 708 620 649 111 728 663 41 Venezuela 2,129 3,089 3,494 3,474 3,595 3,471 3,357 3,410 3,390 3,321 42 Other 4,120 5,115 5,610 5,619 5,711 5,724 5,725 5,766 5,309 5,378 43 125,092 98,607 74,914 78,257 80,221 82,415 83,127 79,022 81,655 87,465 China 44 Mainland 1,579 1,261 2,090 4,532 2,611 1,688 1,822 1,601 1,519 1,912 45 Taiwan 922 1,041 1,390 1,080 1,732 1,339 922 790 2,475 3,691 46 Hong Kong 13,991 9,080 5,893 4,546 4,573 4,266 5,777 5,403 6,014 6,540 47 India 2,200 1,440 1,738 1,786 1,941 1,905 2,013 2,037 2,006 1,787 48 Indonesia 2,651 1,942 1,776 1,821 1,819 1,856 1,940 1,880 1,982 2,009 49 Israel 768 1,166 1,875 3,293 2,857 1,610 1,982 2,281 1,116 1,551 50 Japan 59,549 46,713 28,636 30,381 31,689 33,256 31,209 32,494 35,234 35,775 51 Korea (South) 18,162 8,289 9,262 12,209 14,018 15,866 18,915 16,924 14,457 18,587 52 Philippines 1,689 1,465 1,410 1,714 1,884 1,865 1,802 1,483 1,495 1,473 53 Thailand 2,259 1,807 1,515 1,081 1,137 1,255 1,051 1,059 1,071 1,046 54 Middle Eastern oil-exporting countries4 10,790 16,130 14,252 10,765 11,666 12,128 10,367 10,006 9,961 9,650 55 Other 10,532 8,273 5,077 5,049 4,294 5.381 5,327 3,064 4,325 3,444 56 Africa 3,530 3,122 2,268 2,054 2,109 2,494 2,505 2,215 2,597 2,235 57 Egypt 247 257 258 206 218 230 217 186 176 201 58 Morocco 511 372 352 300 271 259 272 247 254 252 59 South Africa 805 643 622 360 341 772 411 358 372 322 60 Zaire 0 0 24 0 0 0 0 0 0 0 61 Oil-exporting countries' 1,212 936 276 394 508 430 751 616 913 656 62 Other 755 914 736 794 771 803 854 808 882 804 63 Other 6,341 6,637 7,105 7,634 7,514 7,515 7,072 7,376 6,283 5,576 64 Australia 5,300 6,173 6,824 7,225 7,139 7,240 6,891 7,036 6,036 5,238 65 Other 1,041 464 281 409 375 275 181 340 247 338 66 Nonmonetary international and regional organizations6. . . 2,463 3,617 4,563 5,002 4,343 5,011 3,886 3,777 4,865 5,223 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 • February 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 Apr. May June July Aug. Sept. Oct.p 1 Total 852,852 875,891 947,175r 1,010,005 1,009,934 2 Banks' claims 708.225 734,995 795,377 815,083 820,782 825,898 833,459 800.472 840,425 856,474 3 Foreign public borrowers 20,581 23,542 35.090 37,300 43,092 41,461 48,424 41,459r 40,436 49,691 4 Own foreign offices" 431.685 484,535 528,397 557,339 549,165 553,262 557,557 544,142 576,452 581,277 5 Unaffiliated foreign banks 109.230 106,206 101,227 91,849 92,280 92,911 89,352 82,536 87,276 82,250 6 Deposits 30.995 27,230 34,360 22.399 24,769 22,373 21,856 21,822 23,765 22,830 7 Other 78.235 78,976 66,867 69,450 67,511 70,538 67,496 60,714 63,511 59,420 8 All other foreigners 146,729 120,712 130,663 128,595 136,245 138,264 138,126 132,335r 136,261 143,256 9 Claims of banks' domestic customers3 144,627 140,896 151,798r 184,107 169,509 10 Deposits 73,110 79,363 88,006 106,055 87,340 11 Negotiable and readily transferable instruments4 53,967 47,914 51,161 62,975 70,334 12 Outstanding collections and other claims 17,550 13,619 12,631r 15,077 11,835 MEMO 13 Customer liability on acceptances 9,624 4,520 4,553 5,056r 4,827 14 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States5 33,816 39,978 31,125 45,383 45,468 44,139 46,337 55,293 57,784 53,848 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- paper. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Includes demand and time deposits and negotiable and nonnegotiable certificates of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. Dollars Millions of dollars, end of period 1999 2000 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999966 11999977 11999988 Dec. Mar. Juner Sept.p 1 Total 258,106 276,550 250,418 267,082r 262,173r 273,139 263,500 By borrower 2 Maturity of one year or less 211,859 205,781 186,526 187,894r 181,050r 185,927 174,809 3 Foreign public borrowers 15,411 12,081 13,671 22,811 23,436 24,850 23,647 4 All other foreigners 196,448 193,700 172,855 165,083r 157,614r 161,077 151,162 5 Maturity of more than one year 46,247 70,769 63,892 79,188r 81,123r 87,212 88,691 6 Foreign public borrowers 6,790 8,499 9,839 12,013 12,852r 15,905 16,236 7 All other foreigners 39,457 62,270 54,053 67,175r 68,27 lr 71,307 72,455 By area Maturity of one year or less 8 Europe 55,690 58,294 68,679 80,842 79,638r 75,561 69,486 9 Canada 8,339 9,917 10,968 7,859 8,408 7,344 8,225 10 Latin America and Caribbean 103,254 97,207 81,766 69,498r 62,923r 66,140 65,918 11 Asia 38,078 33,964 18,007 21,802 23,002 29,091 23,874 12 Africa 1,316 2,211 1,835 1,122 957 1,520 1,594 13 All other3 5,182 4,188 5,271 6,771 6,122 6,271 5,712 Maturity of more than one year 14 Europe 6,965 13,240 14,923 22,951 23,951 25,404 27,550 15 Canada 2,645 2,525 3,140 3,192 3,127 3,323 3,261 16 Latin America and Caribbean 24,943 42,049 33,442 39,05 r 39,714r 42,427 41,166 17 Asia 9,392 10,235 10,018 11,257 11,612 12,549 13,131 18 Africa t ,36 1,236 1,232 1,065 965 924 895 19 Allother3 941 1,484 1,137 1,672 1,754 2,585 2,688 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1998 1999 2000 AArreeaa oorr ccoouunnttrryy 11999966 11999977 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.p 1 Total 645.8 721.8 1071.9 1051.6 992.8 939.4 936.8 936.7 952.7 991.5r 952.4 2 G-10 countries and Switzerland 228.3 242.8 240.0 217.7 208.7 223.1 206.4 236.5 284.1 324.2r 286.9 3 Belgium and Luxembourg 11.7 11.0 11.7 10.7 15.6 16.1 15.7 14.3 14.2 13.8 13.0 4 France 16.6 15.4 20.3 18.4 21.6 20.4 19.9 29.0 27.1 32.6 29.1 Germany 29.8 28.6 31.4 30.9 34.7 32.1 37.4 38.7 37.3 31.5 37.8 6 Italy 16.0 15.5 18.5 11.5 17.8 16.4 15.0 18.1 20.0 20.8r 18.8 7 Netherlands 4.0 6.2 8.4 7.8 10.7 13.3 10.6 12.3 17.1 16.1 17.6 8 Sweden 2.6 3.3 2.1 2.3 4.0 2.6 3.6 3.0 3.9 3.5 4.3 9 Switzerland 5.3 7.2 7.6 8.5 7.8 8.2 8.8 10.3 10.1 13.8 10.9 10 United Kingdom 104.7 113.4 100.1 85.4 56.1 74.3 51.9 72.4 113.5 148.3 118.7 1 1 Canada 14.0 13.7 15.9 16.8 15.9 17.1 17.9 16.3 17.5 18.2 18.7 12 Japan 23.7 28.6 23.9 25.4 24.6 22.6 25.6 22.0 23.5 25.4 18.1 13 Other industrialized countries 66.1 65.5 78.5 69.0 80.1 79.7 71.7 68.4 62.8 75.3r 72.5 14 Austria 1.1 1.5 2.1 1.4 2.8 2.8 3.0 3.5 2.6 2.8 3.5 15 Denmark 1.5 2.4 3.0 2.2 3.4 2.9 2.1 2.6 1.5 1.2 1.8 16 Finland .8 1.3 1.6 1.4 1.5 .9 .9 .9 .8 1.3 2.8 17 Greece 6.7 5.1 5.8 5.9 6.5 5.9 6.6 6.0 5.7 6.8 6.4 18 Norway 8.0 3.6 3.2 3.2 3.1 3.0 3.8 3.3 3.0 4.6 8.5 19 Portugal .9 .9 1.1 1.4 1.4 1.2 1.2 1.0 1.0 2.0 1.5 20 Spain 13.3 12.6 19.5 13.7 15.7 16.6 15.1 12.1 11.3 12.2 10.5 21 Turkey 2.7 4.5 5.2 4.8 5.2 4.9 4.7 4.8 5.1 5.6 5.6 22 Other Western Europe 4.9 8.3 10.4 10.4 10.2 10.2 9.2 6.8 8.3 7.9r 8.4 23 South Africa 2.0 2.2 5.4 4.4 4.8 4.7 4.0 3.8 4.8 4.6 2.9 24 Australia 24.0 23.1 21.4 20.3 25.4 26.6 21.1 23.5 18.6 26.3 20.5 25 OPEC2 19.8 26.0 26.0 27.1 26.2 26.1 30.1 31.4 28.9 32.3 31.8 26 Ecuador 1.1 1.3 1.2 1.3 1.2 1.1 .9 .8 .7 .7 .6 27 Venezuela 2.4 2.5 3.1 3.2 3.5 3.2 3.0 2.8 3.0 2.9 2.9 7.8 Indonesia 5.2 6.7 4.7 4.7 4.5 5.0 4.4 4.2 3.9 4.1 4.4 29 Middle East countries 10.7 14.4 16.1 17.0 16.7 16.5 21.4 23.0 21.1 24.0 22.7 30 African countries .4 1.2 .8 1.0 .4 .4 .5 .5 .2 .7 1.2 31 Non-OPEC developing countries 130.3 139.2 140.4 143.4 146.7 148.6 142.5 147.3 152.5 155.6 150.5 Latin America 32 Argentina 14.3 18.4 22.9 23.1 24.3 22.8 22.1 22.4 21.3 20.3 21.4 33 Brazil 20.7 28.6 24.0 24.7 24.2 25.1 22.1 26.4 26.9 27.0 28.5 34 Chile 7.0 8.7 8.5 8.3 8.6 8.2 7.7 7.4 8.2 8.1 7.4 35 Colombia 4.1 3.4 3.4 3.2 3.3 3.1 2.7 2.5 2.5 2.4 2.4 36 Mexico 16.2 17.4 18.7 18.9 19.7 18.5 19.4 18.7 18.3 20.5 17.5 37 1.6 2.0 2.2 2.2 2.2 2.1 1.8 1.7 1.9 2.1 2.1 38 Other 3.3 4.1 4.6 5.4 5.3 5.5 5.5 5.9 6.5 6.7 6.3 Asia China 39 Mainland 2.5 3.2 2.8 3.0 5.0 5.3 3.3 3.6 4.6 3.8 3.4 40 Taiwan 10.3 9.5 12.5 13.3 11.8 12.6 12.3 12.0 12.6 12.6 12.8 41 India 4.3 4.9 5.3 5.5 5.5 6.7 7.0 7.7 7.9 8.2 5.8 42 Israel .5 .7 .9 1.1 1.1 2.0 1.0 1.8 3.3 1.5 1.1 43 Korea (South) 21.5 15.6 13.1 13.7 13.7 15.3 16.0 15.1 17.4 21.2 21.0 44 Malaysia 6.0 5.1 5.0 5.6 5.9 6.0 6.1 6.1 6.5 6.8 6.4 45 Philippines 5.8 5.7 4.7 5.1 5.4 5.7 5.8 6.2 5.3 5.3 4.7 46 Thailand 5.7 5.4 5.3 4.7 4.5 4.2 4.0 4.1 4.3 4.0 3.9 47 Other Asia 4.1 4.3 3.1 2.9 3.0 2.8 2.8 2.9 2.6 2.5 2.3 Africa 48 Egypt .7 .9 1.7 1.3 1.4 1.4 1.3 1.4 1.4 1.3 1.1 49 Morocco .7 .6 .5 .5 .5 .5 .5 .4 .3 .3 .4 50 Zaire .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .8 1.1 1.0 1.2 1.0 1.0 1.0 .9 .9 2.1 52 Eastern Europe 6.9 9.1 6.3 5.5 7.1 5.8 5.4 5.2 6.3 9.4 9.1 53 Russia4 3.7 5.1 2.8 2.2 2.3 2.1 2.0 1.6 1.7 1.5 1.4 54 Other 3.2 4.0 3.5 3.3 4.8 3.7 3.4 3.6 4.7 7.9 7.6 55 Offshore banking centers 135.1 140.2 121.0 93.9 93.6 75.9 89.4 60.1 42.0 52.4 50.6 56 Bahamas 20.5 24.2 30.7 35.4 32.6 20.4 28.6 13.9 2.4 .5 .6 57 Bermuda 4.5 9.8 10.4 4.6 3.9 5.7 8.2 8.0 7.3 6.3 6.3 58 Cayman Islands and other British West Indies 37.2 43.4 27.8 12.8 13.9 7.2 6.3 1.3 .0 5.1 5.9 59 Netherlands Antilles 26.1 14.6 6.0 2.6 2.7 1.3 9.1 1.7 2.5 2.6 1.9 60 Panama5 2.0 3.1 4.0 3.9 3.9 3.9 3.9 3.9 3.4 3.3 2.5 61 Lebanon .1 .1 .2 .1 .1 .1 .2 .1 .1 .1 .1 62 Hong Kong, China 27.9 32.2 30.6 23.3 22.8 22.0 22.4 21.0 22.2 20.7 20.5 63 Singapore 16.7 12.7 11.1 11.1 13.5 15.2 10.6 10.1 4.1 13.6 12.7 64 Other6 .1 .1 .2 .2 .2 .1 .2 .1 .1 .1 .1 65 Miscellaneous and unallocated7 59.6 99.1 459.9 495.1 430.4 380.2 391.2 387.9 376.1 342.4r 351.1 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 • February 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 53,489r 70,534 2 Payable in dollars 39,542 41,543 36,668 34,030 36,032 36,296 37,605 35,614r 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 29,180r 44,068 5 Payable in dollars 11,913 12,630 10,371 11,225 13,205 12,231 13,883 12,858r 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 9 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 11 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 24,050r 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 l,849r 1,702 15 Germany 1,834 1,958 2,063 1,906 1,959 1,712 1,974 l,880r 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 countries" 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 33 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 countries' 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 countries" 532 408 393 377 392 584 499 536 575 53 Other3 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 80,725r 2 Payable in dollars 59,156 62,173 72,171 64,026 57,006 60,456 69,170 74,331 72,294r 3 Payable in foreign currencies 6,741 5,955 5,291 5,028 6,878 7,110 7,472 9,935 8,431 By typ e 4 Financial claims 37,523 36,959 46,260 38,217 31,957 33,877 40,231 47,798 44,303 5 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 36,422r 12 Trade receivables 25,751 27,536 27,202 26,724 27,791 29,397 32,629 31,443 31,277r 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 34,549r 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 76 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 countries' 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 15,928r 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 2,692r 40 Germany 1,337 1,614 1,822 1,599 1,660 1,944 1,960 2,034 1,906r 41 Netherlands 562 597 467 415 389 617 1,429 1,337 1,242r 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 4,929r 44 Canada 2,165 2,660 2,617 2,983 2,855 2,638 2,757 3,088 3,250r 4S Latin America and Caribbean 5,276 5,750 6,296 5,930 6,278 5,879 5,959 5,899 5,792r 46 Bahamas 35 27 24 10 21 29 20 15 48 47 Bermuda 275 244 536 500 583 549 390 404 381r 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 l,565r 51 Venezuela 357 576 401 361 384 365 439 435 466r 52 Asia 8,376 8,713 7,192 7,080 7,690 8,579 9,165 9,101 9,173r 53 Japan 2,003 1,976 1,681 1,486 1,511 1,823 2,074 2,082 l,882r 54 Middle Eastern oil-exporting countries' 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 766r 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 l,513r 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 • February 2001 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2000 2000 Transaction, and area or country 1998 1999 J O an ct . . - Apr. May June July Aug. Sept. Oct.p U.S. corporate securities STOCKS 1 Foreign purchases 1,574,192 2,340,659 3,034,215 309,778 268,454 300,356 271,145 286.819 297,626 340,608 2 Foreign sales 1,524,203 2,233,137 2.880,106 306,474 262,142 282,563 255,999 262,775 289,067 324,215 3 Net purchases, or sales (—) 49,989 107,522 154,109 3,304 6,312 17,793 15,146 24,044 8,559 16,393 4 Foreign countries 50,369 107,578 154,090 3,243 6,291 17,823 15,136 24,020 8,603 16,395 5 Europe 68,124 98,060 145,957 12,289 7,496 14,853 12,922 15,678 10,014 14,032 6 France 5,672 3,813 5,279 1,341 -588 -653 1,292 575 -565 1,757 7 Germany 9,195 13,410 29,998 3,431 3,355 2,544 371 2,670 643 1,394 8 Netherlands 8,249 8,083 2,869 113 -113 584 554 594 792 -167 9 Switzerland 5,001 5,650 13,245 1,689 585 67 1,702 1,114 780 491 10 United Kingdom 23,952 42,902 47,355 558 1,440 7,026 6,033 7,098 5,163 6,312 11 Canada -4,689 -335 2,845 9 834 -46 -166 1,038 -922 256 12 Latin America and Caribbean 757 5,187 -12,075 -11,441 -2,633 1,898 11,,336633 4,907 -3,405 -4,403 13 Middle East1 -1,449 -1,066 8,572 2,071 705 4 9988 908 52 754 14 Other Asia -12,351 4,445 7,736 52 -121 870 815 1,789 2,704 5,848 15 Japan -1,171 5,723 -196 -446 -1,045 439 492 568 2,467 2,651 16 Africa 639 372 379 228 -50 54 -124 2 -56 -28 17 Other countries -662 915 676 35 60 190 228 -302 216 -64 18 Nonmonetary international and regional organizations -380 -56 21 61 21 -30 10 24 -42 -2 BONDS2 19 Foreign purchases 905,782 854,692 973,700 88,555 89,760 107,281 87.580 107,808 106,384 102,981 20 Foreign sales 727,044 602,100 703,575 70,851 68,212 75,117 67,010 69,514 76,225 71,612 21 Net purchases, or sales (-) 178,738 252,592 270,125 17,704 21,548 32,164 20,570 38,294 30,159 31,369 22 Foreign countries 179,081 252,994 270,093 17,709 21,490 32,215 20,482 38,215 30,161 31,382 23 Europe 130,057 140,674 146,547 7,640 9,475 19,378 7,789 21,618 17,058 16,989 24 France 3,386 1,870 1,806 -34 104 159 85 334 -819 347 25 Germany 4,369 7,723 3,611 288 175 897 154 1,185 44 436 26 Netherlands 3,443 2,446 672 279 283 -169 -575 850 -818 848 27 Switzerland 4,826 4,553 3,438 -18 9 324 1,003 757 333 349 28 United Kingdom 99,637 106,344 114,380 4,274 6,237 16,218 4,003 15,909 15,950 12,508 29 Canada 6,121 6,043 11,694 764 1,076 1,092 943 1,965 811 897 30 Latin America and Caribbean 23,938 58,783 48,720 4,823 2,786 4,390 4,743 3,829 6,338 5,021 31 Middle East1 4,997 1.979 368 347 -47 99 264 54 -702 -54 32 Other Asia 12,662 42,817 60,902 4,103 7,996 7,059 6,601 10,562 6,777 8,214 33 Japan 8,384 17,541 28,475 580 3,491 3,945 3,320 5,664 3.573 3,690 34 Africa 190 1,411 837 35 40 72 10 37 49 58 35 Other countries 1,116 1,287 1,025 -3 164 125 132 150 -170 257 36 Nonmonetary international and regional organizations -343 -402 63 -5 58 -51 88 110 -2 -13 Foreign securities 37 Stocks, net purchases, or sales ( —) 6,227 15,640 -9,821 576 8,334 -2,046 -14,973 602 10,479 3,152 38 Foreign purchases 929,923 1,177.303 1.524,145 154,322 144,592 152,149 133,902 143,618 149,696 155,705 39 Foreign sales 923,696 1.161,663 1,533,966 153,746 136,258 154,195 148,875 143,016 139,217 152,553 40 Bonds, net purchases, or sales (-) -17,350 -5,676 -10,613 798 4,263 5,770 -6,484 -2,811 267 -3,157 41 Foreign purchases 1,328,281 798,267 781,465 63,916 79,534 82,951 68,420 74,803 92,182 99,255 42 Foreign sales 1,345,631 803,943 792,078 63,118 75,271 77,181 74,904 77,614 91,915 102,412 43 Net purchases, or sales (-), of stocks and bonds .... -11,123 9,964 -20,434 1,374 12,597 3,724 -21,457 -2,209 10,746 -5 44 Foreign countries -10,778 9,679 -20,761 1,209 12,521 3,874 -21,216 -2,055 10,570 -172 45 Europe 12,632 59,247 -27,183 1,535 10,113 -1,434 -23,856 -6,190 6,530 -3,748 46 Canada -1,901 -999 -2,166 -422 -1,234 1,399 279 916 -1,142 1,774 47 Latin America and Caribbean -13,798 -4,726 -13,601 -5,155 -845 1,981 -715 -562 665 1,195 48 -3,992 -42,961 19,697 5,641 4,770 1.878 3,145 3,160 3,867 80 49 Japan -1,742 -43.637 18,581 4,688 5,777 3,243 3,904 1,478 2,082 -1,105 50 Africa -1,225 710 983 -143 -51 -33 532 -50 49 12 51 Other countries -2,494 -1.592 1,509 -247 -232 83 -601 671 601 515 52 Nonmonetary international and regional organizations -345 285 331 165 76 -150 -241 -154 180 167 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 Transactions' Millions of dollars; net purchases, or sales ( —) during period 2000 2000 AArreeaa oorr ccoouunnttrryy 11999988 11999999 Ja O n c .— t. Apr. May June July Aug. Sept. Oct.p 1 Total estimated 49,039 -9,953 -29,830 14,520 -7,018 -17,932 -6,061 -114 -8,516 -2,944 2 Foreign countries 46,570 -10,518 -29,410 14,484 -6,820 -17,597 -5,746 -117 -8,741 -3,129 3 Europe 23,797 -38,228 -32,727 -632 -2,526 -9,935 -6,351 3,707 -1,284 -3,506 4 Belgium and Luxembourg 3,805 -81 116 -498 -743 252 -138 138 -127 320 5 Germany 144 2,285 -4,054 -1,676 74 609 -2,199 -36 -1,738 1,424 6 Netherlands -5,533 2,122 3.498 700 -1,159 -389 -584 91 836 183 7 Sweden 1,486 1,699 858 -289 266 -47 114 56 214 -118 8 Switzerland 5,240 -1,761 -10,090 -288 -337 -1,928 -1,398 -338 -959 -58 9 United Kingdom 14,384 -20,232 -23,227 -533 178 -9,243 -4,372 3,054 -1,865 -3,585 10 Other Europe and former U.S.S.R 4,271 -22,260 172 1,952 -805 811 2,226 742 2,355 -1,672 11 Canada 615 7,348 2,357 1,819 -681 226 -872 222 1,417 160 12 Latin America and Caribbean -3,662 -7,523 -4,238 2,509 -3,122 -3,839 1,415 245 -4,979 3,887 13 Venezuela 59 362 737 26 4 16 89 45 314 152 14 Other Latin America and Caribbean 9,523 1,661 -8,649 258 -548 -4,748 1,261 61 -4,936 2,954 15 Netherlands Antilles -13,244 -9,546 3,674 2,225 -2,578 893 65 139 -357 781 16 Asia 27,433 29,359 3,350 11,166 -908 -3,988 -488 -4,918 -3,319 -4,719 17 Japan i 3,048 20,102 9,959 10,855 -2,486 -2,660 672 367 1,717 1,577 18 Africa 751 -3,021 -354 4 -114 -130 4 9 -139 -6 19 Other -2,364 1,547 2,202 -382 531 69 546 618 -437 1,055 20 Nonmonetary international and regional organizations 2,469 565 -420 36 -198 -335 -315 3 225 185 21 International 1,502 190 -352 30 -158 -286 -333 15 391 39 22 Latin American regional 199 666 71 6 -14 -9 -1 -10 1 28 MEMO 23 Foreign countries 46,570 -10,518 -29,410 14,484 -6,820 -17,597 -5,746 -117 -8,741 -3,129 24 Official institutions 4,123 -9,861 -2,409 6,403 -1,405 -1,412 -639 449 -6,626 -7,150 25 Other foreign 42.447 -657 -27,001 8,081 -5,415 -16,185 -5,107 -566 -2,115 4,021 Oil-exporting countries 26 Middle East* -16,554 2,207 4,338 811 572 859 267 217 -1,030 -724 27 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 • February 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 11999999 22000000 July Aug. Sept. Oct. Nov. Dec. Exchange Rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 62.91 64.54 58.15 58.70 58.08 55.21 52.80 52.18 54.66 2 Austria/schilling 12.379 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3 Belgium/franc 36.31 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4 Brazil/real 1.1605 1.8207 1.8301 1.7982 1.8091 1.8397 1.8813 1.9483 1.9632 5 Canada/dollar 1.4836 1.4858 1.4855 1.4778 1.4828 1.4864 1.5125 1.5426 1.5219 6 China, P.R./yuan 8.3008 8.2783 8.2784 8.2794 8.2796 8.2785 8.2785 8.2774 8.2771 7 Denmark/krone 6.7030 6.9900 8.0953 7.9471 8.2459 8.5849 8.7276 8.6992 8.3059 8 European Monetary Union/euro3 n.a. 1.0653 0.9232 0.9386 0.9045 0.8695 0.8525 0.8552 0.8983 9 Finland/markka 5.3473 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 France/franc 5.8995 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 Germany/deutsche mark 1.7597 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Greece/drachma 295.70 306.30 365.92 359.04 372.97 389.67 398.29 397.94 379.58 13 Hong Kong/dollar 7.7467 7.7594 7.7924 7.7969 7.7995 7.7985 7.7977 7.7991 7.7991 14 India/rupee 41.36 43.13 45.00 44.84 45.77 45.97 46.43 46.82 46.78 15 Ireland/pound2 142.48 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italy/lira 1,736.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 17 Japan/yen 130.99 113.73 107.80 108.21 108.08 106.84 108.44 109.01 112.21 18 Malaysia/ringgit 3.9254 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 19 Mexico/peso 9.152 9.553 9.459 9.419 9.272 9.362 9.537 9.508 9.467 20 Netherlands/guilder 1.9837 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 New Zealand/dollar2 53.61 52.94 45.68 45.97 44.52 41.71 40.01 39.90 42.97 22 Norway/krone 7.5521 7.8071 8.8131 8.7185 8.9526 9.2331 9.3794 9.3524 9.0616 23 Portugal/escudo 180.25 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Singapore/dollar 1.6722 1.6951 1.7250 1.7414 1.7206 1.7406 1.7525 1.7478 1.7361 2.5 South Africa/rand 5.5417 6.1191 6.9468 6.8971 6.9570 7.1805 7.4902 7.6889 7.6439 26 South Korea/won 1,400.40 1,189.84 1,130.90 1,115.08 1,114.47 1,117.57 1,131.10 1,156.54 1,216.94 27 Spain/peseta 149.41 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 Sri Lanka/rupee 65.006 70.868 76.964 78.852 78.283 78.731 79.291 80.381 82.030 29 Sweden/krona 7.9522 8.2740 9.1735 8.9640 9.2771 9.6853 9.9930 10.0965 9.6604 30 Switzerland/franc 1.4506 1.5045 1.6904 1.6519 1.7149 1.7586 1.7745 1.7779 1.6855 31 Taiwan/dollar 33.547 32.322 31.260 30.984 31.106 31.198 31.846 32.433 33.123 32 Thailand/baht 41.262 37.887 40.210 40.318 40.889 41.992 43.334 43.791 43.246 33 United Kingdom/pound2 165.73 161.72 151.56 150.76 148.89 143.36 145.06 142.58 146.29 34 Venezuela/bolivar 548.39 606.82 680.52 685.86 689.17 690.39 692.86 695.77 698.85 Indexes4 NOMINAL 35 Broad (January 1997= 100)5 116.48' 116.87' 119.93' 119.35' 120.13' 121.54' 123.28' 124.22' 123.29' 36 Major currencies (March 1973= 100)6 95.79' 94.06' 98.34' 97.52' 98.99' 100.57' 102.15' 103.00' 101.18' 37 Other important trading partners (January 1997= 100)7 126.03' 129.94' 130.26' 129.80' 129.24' 130.09' 131.71' 132.60' 133.33' REAL 38 Broad (March 1973= 100)5 99.2 lr 98.53' 102.19' 102.23' 102.74' 103.82' 105.22' 105.71' 104.89' 39 Major currencies (March 1973= 100)6 97.24' 96.68' 102.86' 102.29' 103.88' 105.54' 107.29' 108.08' 106.17' 40 Other important trading partners (March 1973=100)' 108.10' 107.22' 107.67' 108.53' 107.64' 108.01' 109.05' 109.18' 109.72' 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. US. 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 December 31, 1999 May 2000 A64 March 31, 2000 August 2000 A64 June 30, 2000 November 2000 A64 September 30, 2000 February 2001 A64 Terms of lending at commercial banks February 2000 May 2000 A66 May 2000 August 2000 A66 August 2000 November 2000 A66 November 2000 February 2001 A66 Assets and liabilities of U.S. branches and agencies of foreign banks December 31, 1999 May 2000 A72 March 31, 2000 August 2000 A72 June 30, 2000 November 2000 A72 September 30, 2000 February 2001 A72 Pro forma balance sheet and income statements for priced service operations March 31, 2000 August 2000 A76 June 30, 2000 November 2000 A76 September 30, 2000 February 2001 A76 Residential lending reported under the Home Mortgage Disclosure Act 1998 September 1999 A64 1999 September 2000 A64 Disposition of applications for private mortgage insurance 1998 September 1999 A73 1999 September 2000 A73 Small loans to businesses and farms 1998 September 1999 A76 1999 September 2000 A76 Community development lending reported under the Community Reinvestment Act 1998 September 1999 A79 1999 September 2000 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • February 2001 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 2000 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 DDoommeessttiicc IItteemm TToottaall ttoottaall Total Domestic Over 100 Under 100 1 Total assets3 5,991,548 5,288,698 4,167,981 3,465,131 1,556,846 266,721 2 Cash and balances due from depository institutions 327,364 234,607 257,843 165,087 57,626 11,894 3 Cash items in process of collection, unposted debits, and currency and coin 119,249 115,946 29,339 f 4 Cash items in process of collection and unposted debits I n.a. 92,949 19,221 1 5 Currency and coin n.a. n.a. n.a. 22,997 10,118 n.a. 6 Balances due from depository institutions in the United States 1 39,569 29,181 19,511 1 7 Balances due from banks in foreign countries and foreign central banks 1 86,109 7,135 1,008 1 8 Balances due from Federal Reserve Banks 1 12,916 12,824 7,769 i MEMO 9 Non-interest-bearing balances due from commercial banks in the United States (included in balances due from depository institutions in the United States) n.a. 38,411 n.a. 19,009 14,936 4,466 10 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 1,042,258 595,992 379,692 66,574 11 U.S. Treasury securities 92,355 63,503 23,716 5,135 12 U.S. government agency and corporation obligations (excludes mortgage-backed 222233,,990077 8822,,880066 110066,,223311 3344,,887700 13 Issued by U.S. government agencies 4,969 2,466 1,862 640 14 Issued by U.S. government-sponsored agencies 218,938 80,340 104,368 34,230 15 Securities issued by states and political subdivisions in the United States 89,922 30,316 48,283 11,323 16 General obligations 64,748 20,205 36,435 8.108 17 Revenue obligations 24,553 9,721 11.660 3,172 18 Industrial development and similar obligations 621 389 187 44 19 Mortgage-backed securities (MBS) 442,916 286,928 144,039 11,949 20 Pass-through securities 280,165 191,994 80,099 8,072 21 Guaranteed by GNMA 70,248 n.a. 40,639 n.a. 26,570 3,039 22 Issued by FNMA and FHLMC 207,585 149,791 52,801 4,993 23 Privately issued 2,332 1,563 728 41 24 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 162,752 94,935 63,940 3,877 25 Issued or guaranteed by FNMA, FHLMC, or GNMA 106,355 63,892 38,904 3,558 26 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 4,258 3,418 739 101 27 All other mortgage-backed securities 52,139 27,625 24,296 218 28 Other debt securities 153,873 105,443 46,461 1,968 29 Other domestic debt securities n.a. 51,361 42,102 n.a. 30 Foreign debt securities n.a. 54,082 4,359 n.a. 31 39,285 26,995 10,963 1,327 32 Investments in mutual funds and other equity securities with readily determinable 12,384 9,517 2,552 315 33 All other equity securities 26,901 17,478 8,410 1,012 34 Federal funds sold and securities purchased under agreements to resell 223,594 178,110 176,735 131,250 35,941 10,918 35 Total loans and lease-financing receivables, gross 3,737,074 3,444,328 2,551,833 2,259,087 1,017,042 168,199 36 LESS: Unearned income on loans 2,940 2,385 1,486 932 1,188 265 37 Total loans and leases (net of unearned income) 3,734,134 3,441,943 2,550,347 2,258,155 1,015,854 167,934 38 LESS: Allowance for loan and lease losses 61,319 n.a. 42,605 n.a. 16,443 2,270 39 LESS: Allocated transfer risk reserves 123 n.a. 121 n.a. 1 1 40 EQUALS: Total loans and leases, net 3,672,693 n.a. 2,507,620 n.a. 999,410 165,663 Total loans and leases, gross, by category 41 Loans secured by real estate 1,646,072 1,614,630 997755,,887711 944,429 557722,,115577 9988,,004433 42 Construction and land development f 155,590 f 83,958 62,526 9,106 43 Farmland 33,919 6,664 15,872 11,383 44 One- to four-family residential properties 1 912,161 1 593,813 271,706 46,642 45 Revolving, open-end loans, extended under lines of credit n.a. 122,853 n.a. 8 9,217 31,056 2,580 46 All other loans 1 789,307 1 504,595 240,650 44,062 4 4 7 8 M No u n lt f i a f r a m m i n ly o n ( r f e iv si e d e o n r t m ial o r p e r ) o r p e e s r i t d ie e s n tial properties •1 45 5 3 9 , , 0 9 5 0 8 3 1 1 22 3 6 3 , , 6 3 1 8 0 5 1 2 9 4 7 , , 2 7 9 5 7 6 28 2 , , 6 2 9 2 1 1 49 Loans to depository institutions 121,840 105,012 108,989 92,161 12,754 97 50 Commercial banks in the United States n.a. n.a. 74,487 73,624 12,485 n.a. 51 Other depository institutions in the United States n.a. n.a. 11,650 11,629 174 n.a. 52 Banks in foreign countries n.a. n.a. 22,852 6,909 95 n.a. 53 Loans to finance agricultural production and other loans to farmers 47,094 46,204 12,510 11,620 18,299 16,286 54 Commercial and industrial loans 1,037,675 872,892 834,855 670,072 173,484 29,336 55 U.S. addressees (domicile) n.a. n.a. 682,661 659,947 172,699 n.a. 56 Non-U.S. addressees (domicile) n.a. n.a. 152,194 10,125 785 n.a. 57 Acceptances of other banks 1,316 645 1,243 572 68 5 58 U.S. banks n.a. n.a. 315 268 n.a. n.a. 59 Foreign banks n.a. n.a. 929 305 n.a. n.a. 60 Loans to individuals for household, family, and other personal expenditures (includes purchased paper) 565,100 521,737 327,109 283,747 215,784 22,207 61 Credit cards and related plans 214,559 n.a. 119,478 n.a. 94,157 925 62 Other (includes single payment and installment) 350,541 n.a. 207,632 n.a. 121,627 21,282 63 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 20,975 20,960 13,987 13,972 66,,222233 776655 64 135,918 107,129 127,653 9 8,865 7,484 780 65 Loans to foreign governments and official institutions n.a. n.a. 6,811 1,957 9 n.a. 66 n.a. n.a. 120,842 96,908 7,475 n.a. 67 Loans for purchasing and carrying securities n.a. n.a. n.a. 21,057 1,518 n.a. 68 All other loans (excludes consumer loans) n.a. n.a. n.a. 75,851 5,957 n.a. 69 161,085 155,119 149,615 143,649 10,790 680 70 Assets held in trading accounts 279,519 f 278,703 f 811 1 71 Premises and fixed assets (including capitalized leases) 73,771 1 45,828 1 22,677 5,266 17 Other real estate owned 3,105 n.a. 1,652 n.a. 1,154 299 73 Investments in unconsolidated subsidiaries and associated companies 9,371 I 8,919 I 403 50 74 Customers' liability on acceptances outstanding 9,292 1 9,076 1 214 2 75 Net due from own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. 19,458 n.a. 19,458 n.a. n.a. 76 Intangible assets 101,515 n.a. 87,232 n.a. 13,413 870 77 All other assets 249,066 n.a. 198,380 n.a. 45,506 5,180 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banks A65 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 2000 Millions of dollars except as noted Banks with domestic Banks with foreign offices' offices only2 DDoommeessttiicc IItteemm TToottaall ttoottaall Total Domestic Over 100 Under 100 78 Total liabilities, limited-life preferred stock, and equity capital 5,991,546 n.a. 4,167,981 n.a. 1,556,844 266,721 79 Total liabilities 5,480,528 4,777,677 3,827,322 3,124,472 1,414,916 238,289 80 Total deposits 3,990,401 3,296,441 2,639,176 1,945,215 1,126,624 224,602 81 Individuals, partnerships, and corporations 3,555,181 3,069,559 2,309,114 1,823,492 1,043,541 202,527 82 U.S. government n.a. 7,737 n a. 6,728 872 137 83 States and political subdivisions in the United States n.a. 150,981 n.a. 68,561 64,358 18,063 84 Commercial banks in the United States 100,601 33,820 91,848 25,068 7,748 1,004 85 Other depository institutions in the United States n.a. 8,142 n.a. 3,402 3,341 1,399 86 Foreign banks, governments, and official institutions 141,849 9,602 141,312 9,065 525 11 87 Banks n.a. n.a. 103,410 8,038 521 n.a. 88 Governments and official institutions n.a. n.a. 37,902 1,027 4 n.a. 89 Certified and official checks 17,825 16,599 10,126 8,900 6,239 1,461 90 Total transaction accounts 621,916 353,094 207,182 61,640 91 Individuals, partnerships, and corporations 526,894 294,175 178,901 53,818 92 U.S. government 1,489 1,114 322 53 93 States and political subdivisions in the United States 43,108 20,242 16,870 5,996 94 Commercial banks in the United States 24,370 20,221 3,923 226 95 Other depository institutions in the United States 2,711 1,967 668 75 96 Foreign banks, governments, and official institutions 6,745 6,475 259 11 97 Banks n.a. 5,938 255 n.a. 98 Governments and official institutions n.a. 537 4 n.a. 99 Certified and official checks 16,599 8,900 6,239 1,461 100 Demand deposits (included in total transaction accounts) 484,062 314,282 136,615 33,165 101 Individuals, partnerships, and corporations 414,199 263,835 120,175 30,189 102 U.S. government 1,368 1,070 255 43 103 States and political subdivisions in the United States 18,095 11,818 5,115 1,162 104 Commercial banks in the United States n.a. 24,363 n.a. 20,220 3,918 226 105 Other depository institutions in the United States 2,695 1,967 654 74 106 Foreign banks, governments, and official institutions 6,743 6,473 259 11 107 Banks n.a. 5,938 255 n.a. 108 Governments and official institutions n.a. 536 4 n.a. 109 Certified and official checks 16,599 8,900 6,239 1,461 110 Total nontransaction accounts 2,674,525 1,592,122 919,442 162,961 111 Individuals, partnerships, and corporations 2,542,666 1,529,318 864,639 148,709 112 U.S. government 6,248 5,614 550 84 113 States and political subdivisions in the United States 107,873 48,319 47,488 12,066 114 Commercial banks in the United States 9,449 4,846 3,826 778 115 Other depository institutions in the United States 5,431 1,435 2,673 1,324 116 Foreign banks, governments, and official institutions 2,857 2,591 266 1 117 Banks n.a. 2,101 266 n.a. 118 Governments and official institutions n.a. 490 0 n.a. 119 Federal funds purchased and securities sold under agreements to repurchase 457,647 426,278 369,047 337,678 85,125 3,475 120 Demand notes issued to the U.S. Treasury 37,835 37,835 34,985 34,985 2,758 91 121 Trading liabilities 195,336 n.a. 195,271 n.a. 64 0 122 Other borrowed money 537,689 492,579 362,272 317,162 167,602 7,815 123 Banks' liability on acceptances executed and outstanding 9,346 6,784 9,130 6,568 214 2 124 Notes and debentures subordinated to deposits 83,863 n.a. 79,674 n.a. 4,169 19 125 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. 201,572 n.a. 201,572 n.a. n.a. 126 All other liabilities 168,412 n.a. 137,768 n.a. 28,360 2,284 127 Total equity capital 511,019 n.a. 340,659 n.a. 141,928 28,432 MEMO 128 Trading assets at large banks4 279,248 132,420 278,683 131,854 565 1 1 2 3 9 0 U U. . S S . . T go re v a e s r u n r m y e s n e t c a u g ri e t n ie c s y ( c d o o r m po es ra ti t c i o o n f f o ic b e li s g ) ations • • 1 5 5 , , 8 9 1 3 6 2 -• 1 5 5 , , 7 9 1 1 4 9 10 1 2 3 131 Securities issued by states and political subdivisions in the United States n.a. 1,852 n.a. 1,670 181 n.a. 132 Mortgage-backed securities 5,622 5,526 97 133 Other debt securities 24,428 24,417 11 134 Other trading assets 13,222 13,152 70 135 Trading assets in foreign banks 146,828 0 146,828 0 0 136 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 65,548 65,548 65,457 65,457 91 n.a. 137 Total individual retirement (IRA) and Keogh plan accounts 156,092 81,421 63,536 11,135 138 Total brokered deposits 160,274 76,148 81,807 2,318 139 Fully insured brokered deposits 115,581 43,116 70,378 2,087 140 Issued in denominations of less than $100,000 2200,,443344 44,,669944 14,614 1,125 141 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. 95,147 n.a. 38,421 55,764 962 142 Money market deposit accounts (MMDAs) 933,241 637,835 269,294 26,112 143 Other savings deposits (excluding MMDAs) 419,155 262,802 136,885 19,468 144 Total time deposits of less than $100,000 782,658 378,205 322,393 82,060 145 Total time deposits of $100,000 or more 539,471 313,279 190,870 35,322 146 All negotiable order of withdrawal (NOW) accounts 135,992 38,787 69,319 27,887 147 Number of banks ,350 8,350 159 n.a. 3,013 5,178 NOTE. The notation "n.a." indicates the lesser detail available from banks that don't have were $100 million or more. (These banks file the FFIEC 032 or FFIEC 033 Call Report.) foreign offices, the inapplicability of certain items to banks that have only domestic offices, or "Under 100" refers to banks whose assets, on June 30 of the preceding calendar year, were the absence of detail on a fully consolidated basis for banks that have foreign offices. less than $100 million. (These banks file the FFIEC 034 Call Report.) 1. All transactions between domestic and foreign offices of a bank are reported in "net due 3. Because the domestic portion of allowances for loan and lease losses and allocated from" and "net due to" lines. All other lines represent transactions with parties other than the transfer risk reserves are not reported for banks with foreign offices, the components of total domestic and foreign offices of each bank. Because these intra-office transactions are nullified assets (domestic) do not sum to the actual total (domestic). by consolidation, total assets and total liabilities for the entire bank may not equal the sum of 4. Components of "Trading assets at large banks" are reported only by banks with either assets and liabilities respectively of the domestic and foreign offices. total assets of $1 billion or more or with $2 billion or more in the par/notional amount of their Foreign offices include branches in foreign countries, Puerto Rico, and U.S. territories and off-balance-sheet derivative contracts. possessions; subsidiaries in foreign countries; all offices of Edge Act and agreement corporations wherever located; and IBFs. 2. "Over 100" refers to banks whose assets, on June 30 of the preceding calendar year, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 2001 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 6-10, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks' Weighted- Weighted- Amount of loans (percent) e a f v f e e r c a ti g v e e Am lo o a u n n s t of Aver s a i g z e e loan m a a v t e u r r a i g ty e 3 ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u la re te d r a b l y p S re p u p e b a n je y a c m lt t y e t n o t c M om ad m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 8.15 118,805 765 374 41.0 8.9 24.9 71.7 2 Minimal risk 7.54 6,845 1,103 390 49.3 14.9 62.4 90.3 3 Low risk 7.55 21,357 1,391 306 22.7 17.8 42.0 67.8 4 Moderate risk 8.33 36,786 663 447 37.2 8.0 26.6 78.9 5 Other 8.85 22,404 524 309 37.3 5.1 12.7 73.1 By maturity/repricing interval6 6 Zero interval 9.39 18,618 425 58.2 12.8 4.1 55.6 7 Minimal risk 9.81 439 343 77.2 44.3 23.0 82.7 8 Low risk 7.97 2,189 705 535 68.9 50.0 8.3 48.3 9 Moderate risk 9.39 5,725 313 509 12.5 7.0 97.6 10 Other 10.34 2,979 212 631 7.5 2.3 96.3 11 Daily 7.84 50,383 1,031 207 32.7 10.1 26.8 62.8 12 Minimal risk 7.23 3,823 5,897 301 71.2 9.6 85.7 99.5 13 Low risk 7.51 10,527 3,306 271 15.8 17.6 37.2 52.8 14 Moderate risk 8.02 14,489 893 243 23.2 10.1 27.3 64.9 15 Other 9,226 627 153 25.5 6.3 3.6 52.6 16 2 to 30 days 7.99 27,080 1.464 329 27.7 4.7 44.5 1 1 7 8 M Lo i w ni m ri a s l k risk 7 7 . . 1 3 2 9 5 1 , , 9 4 0 8 0 6 2 3 , , 5 7 6 7 2 8 425891 1 9 1 . . 0 1 6 8 . . 9 2 5 69 6 . . 2 9 9 8 2 6 . . 7 1 2 1 0 9 O M t o h d er e rate risk 8 8 . . 0 9 4 0 1 5 0 , , 7 0 3 2 4 5 1, 9 3 3 4 6 5 3 3 9 1 1 3 2 39 4 . . 8 3 32..51 3 2 9 8 . . 4 4 8 82 7 . . 5 2 21 31 to 365 days 7.93 17,383 624 382 54.9 3.5 18.7 89.9 22 Minimal risk 7.82 770 240 251 21.7 5.0 6.3 53.3 23 Low risk 7.66 2,501 416 254 34.2 12.9 31.0 88.6 24 Moderate risk 8.35 4,878 598 750 52.0 3.1 28.7 90.8 25 Other 8.65 3,926 917 339 31.1 1.2 20.1 87.6 26 More than 365 days 7.97 4,502 347 83.0 11.3 2.1 77.5 27 Minimal risk . .. 9.25 324 721 2.5 97.9 .6 98.9 28 Low risk 8.36 203 149 69.5 2.2 4.8 65.1 29 Moderate risk .. 9.05 1,447 345 87.2 7.0 3.7 44.7 30 Other 9.13 287 122 68.5 3.9 5.8 87.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 10.32 2,635 3.2 140 83.1 27.5 2.2 77.9 32 100-999 9.65 10,346 3.2 107 69.7 17.0 6.9 84.9 33 1,000-9,999 34,445 3.0 63 42.5 7.3 22.8 78.3 34 10,000 or more 71,379 2.8 103 34.6 7.7 29.4 66.3 BASE RATE OF LOAN4 35 Prime7 10.12 20,739 3.3 83 70.1 17.7 3.7 75.3 36 Fed funds 7.43 30,753 2.8 11 35.6 7.9 16.0 47.4 37 Other domestic 7.61 14,503 2.4 31 12.3 20.3 69.3 72.9 38 Foreign 7.97 31,403 2.9 40 29.8 2.9 39.9 82.2 39 Other 7.88 21,407 3.1 343 56.5 2.6 6.3 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A67 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 6-10, 2000 B. Commercial and industrial loans made by all domestic banks' W e a f e v f i e e g r c h a t t i g e v e d e - Am lo o a u n n s t of Aver s a i g z e e loan W m a e a v i t e g u r h r a i t g t e y e d 3 - Amount of loans (percent) ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of S c e o c l u la re te d r a b l y Callable p S re u p b a je y c m t e t n o t c M om ad m e i u tm nd e e n r t Days penalty LOAN RISK3 1 All commercial and industrial loans 8.50 72,874 496 475 43.5 12.9 24.3 75.5 2 Minimal risk 7.58 5,985 1.004 416 56.0 17.0 66.2 88.9 3 Low risk 7.57 14,387 1.005 372 30.3 24.9 47.4 76.4 4 Moderate risk 8.55 26,200 569 43.7 9.8 22.6 89.2 5 Other 9.69 10,890 522 63.0 7.8 8.5 87.4 By maturity/repricing interval6 6 Zero interval 9.37 18,216 422 457 57.5 13.0 2.8 54.6 7 Minimal risk 9.81 432 340 909 76.8 45.1 23.4 82.4 8 Low risk 7.97 2,187 708 535 68.9 49.9 8.3 48.3 9 Moderate risk 9.36 5,440 300 486 67.1 13.1 2.8 97.5 10 Other 10.32 2,872 210 615 70.1 7.7 2.3 96.3 11 Daily 8.03 27,728 594 317 38.7 15.8 33.0 77.1 12 Minimal risk 7.23 3,627 5,977 313 75.1 10.1 88.5 99.5 13 Low risk 7.35 6,090 2,070 380 27.0 29.1 54.3 72.7 14 Moderate risk 8.20 8,776 562 312 31.8 12.5 29.2 85.7 15 Other 9.38 3,721 266 279 53.5 9.5 1.4 73.7 16 2 to 30 days 8.15 17,110 1,048 431 28.7 7.4 41.5 93.8 17 Minimal risk 7.10 1,088 2,211 509 10.9 9.4 55.6 81.0 18 Low risk 7.47 4,676 3,471 291 11.3 10.4 67.7 91.9 19 Moderate risk 8.19 7,268 1,064 495 26.9 4.8 38.3 96.4 20 Other 9.65 2,790 531 490 4.2 19.5 97.2 21 31 to 365 days 8.65 6,559 263 782 49.8 7.3 13.2 82.9 22 Minimal risk 8.11 513 165 313 32.6 7.4 9.1 29.9 23 Low risk 8.11 1,194 219 220 42.7 15.9 12.6 87.9 24 Moderate risk 8.75 3,055 405 1,128 54.3 4.8 11.7 88.1 25 Other 9.28 1,054 335 834 55.7 4.4 23.1 84.6 26 More than 365 days 9.05 2,699 210 71.7 18.8 3.3 62.5 27 Minimal risk . . . 9.25 323 736 2.5 98.1 .3 98.9 28 Low risk 8.36 203 149 69.5 2.2 4.8 65.1 29 Moderate risk . . 9.05 1,446 345 87.2 7.0 3.7 44.7 30 Other 9.14 121 68.2 3.3 5.7 86.9 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 10.34 2,585 3.2 142 83.9 27.6 1.9 77.8 32 100-999 9.77 9,165 3.2 112 73.4 17.3 4.1 84.7 33 1,000-9,999 22,750 3.0 69 46.0 8.4 16.1 77.5 34 10,000 or more 38,375 2.5 56 32.1 13.6 35.5 72.0 BASE RATE OF LOAN4 35 Prime7 10.13 18,777 3.3 71.9 14.5 1.4 74.2 36 Fed funds 7.31 9,886 2.3 15 56.3 24.6 32.1 55.6 37 Other domestic 7.52 10,560 2.3 40 14.9 27.8 58.2 3 3 8 9 F O o th re e i r g n 8 8 . . 1 4 4 0 2 1 0 3 , , 2 3 7 7 3 9 2 3 . . 8 0 13670 3 3 0 6 . . 7 0 4 3 . . 1 8 3 9 3 . . 6 8 7 84 3 . . 5 8 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 2001 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 6-10, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks' Weighted- Amount of loans (percent) W ( l e p a o f e e v a f i r e n e g c r c h e a r t n t g i a e v t t e d ) e e 2 - A o ( f m m l d o o il o a u l l i n n l o s a t n r s o s ) f ( A th v o d e u r o s a s l i g a l z a n e e r d s l s ) o a o n f m av a D t e u a r r y a i g s t y e 3 S c e o c l u la re te d r a b l y p S re u p p e b a n je y a c m lt t y e t n o t c M om ad m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 8.40 66,315 454 40.9 12.6 26.3 75.5 2 Minimal risk 7.49 5,173 4.460 421 58.2 18.3 75.6 99.2 3 Low risk 7.43 13,210 3,278 352 27.6 26.6 51.6 76.2 4 Moderate risk 8.46 24,309 864 553 41.3 23.7 89.7 5 Other 9.63 9,478 407 487 59.8 9.3 87.5 By maturity/repricing interval6 6 Zero interval 9.30 15,854 714 448 54.2 11.5 2.7 49.7 7 Minimal risk 9.91 283 1,070 815 67.7 65.8 17.0 99.1 8 Low risk 7.67 1,740 1,957 539 75.4 61.3 10.2 39.4 9 Moderate risk 9.28 4,730 441 479 64.2 9.9 3.0 98.5 10 Other 10.35 2,247 307 651 63.7 4.9 2.7 97.9 11 Daily 7.95 26,556 757 309 37.1 15.7 34.3 76.5 12 Minimal risk 7.23 3,619 9,799 313 75.2 10.0 88.7 99.5 13 Low risk 7.31 5,868 3,441 376 26.1 29.8 56.4 72.1 14 Moderate risk 8.08 8,329 767 300 29.2 11.9 30.3 85.5 15 Other 9.27 3,409 336 258 50.8 9.1 1.4 72.3 1 1 6 7 2 t M o i 3 n 0 i m d a a l y s r isk 8 7. . 1 1 8 5 16,814671 3 1 , , 8 5 2 0 5 6 4 6 4 2 6 2 27 7 . . 8 7 9 7 . . 4 5 4 7 3 0 . . 5 2 9 9 5 7 . . 1 9 18 Low risk 7.47 4,542 4,952 289 10.0 10.7 69.7 91.7 19 Moderate risk 8,17 7,004 1,827 505 26.2 4.8 38.6 96.8 20 Other 9.65 2,653 699 501 67.6 4.1 20.5 97.7 21 31 to 365 days 8.51 5,310 1,672 879 47.1 6.6 15.8 90.9 22 Minimal risk 7.29 92 462 438 33.3 .6 50.4 100.0 23 Low risk 7.55 896 2,880 244 28.6 19.5 16.8 91.2 24 Moderate risk 8.65 2,875 2,628 1,159 52.5 4.8 11.9 90.4 25 Other 9.26 912 1,208 827 54.2 2.3 25.2 87.3 26 More than 365 days 8.82 1,911 1,227 70.6 18.6 3.6 62.1 2 2 7 8 M Lo i w ni m ri a s l k risk . . . 7 9 . . 6 2 6 3 311268 4 1 , , 7 4 3 3 2 5 56. . 2 4 99 3 . . 3 5 7. . 6 3 1 9 0 7 0 . . 9 0 29 Moderate risk 8.96 1,166 2,058 93.3 2.8 4.2 39.9 30 Other 8.47 90 288 67.3 .5 4.6 93.1 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 10.16 1,347 3.4 83.4 30.3 1.9 87.8 32 100-999 9.70 6,823 3.3 69.6 16.2 3.6 87.2 33 1,000-9,999 8.82 20,192 3.1 45.3 8.0 18.0 77.8 34 10,000 or more 7.88 37,952 2.5 31.9 13.7 35.7 71.8 BASE RATE OF LOAN' 35 Prime7 10.08 15,485 3.3 72 69.7 12.7 1.2 71.6 36 Fed funds 7.29 9,705 2.3 3 55.8 25.0 32.6 55.5 37 Other domestic 7.49 10,312 2.3 32 13.1 27.7 59.5 89.3 38 Foreign 8.13 19,343 2.8 28 30.1 3.9 34.8 72.9 39 Other 8.34 11,470 3.1 112 32.7 2.9 10.8 89.7 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A69 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 6-10, 2000 D. Commercial and industrial loans made by small domestic banks' Weighted- Amount of loans (percent) Weighted- Amount of Average loan average average loans size maturity3 ( l e p o f e a f r n e c c e t r n i a v t t ) e e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u l r a e te d r a b l y p S r u e p p b e a n je y a c m l t t y e t n o t c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 9.48 92 684 69.4 16.6 3.9 75.6 2 Minimal risk 8.14 169 383 41.7 9.1 6.5 23.0 3 Low risk 9.05 1,177 114 570 60.0 5.8 .3 79.5 4 Moderate risk 9.80 1,891 75 782 75.6 23.9 8.2 82.4 5 Other 10.05 1,412 752 84.5 14.0 2.5 86.5 By maturity/repricing interval6 6 Zero interval 9.84 2,362 112 511 79.9 23.0 3.1 87.8 7 Minimal risk 9.61 149 148 1,090 93.9 5.8 35.6 50.8 8 Low risk 9.14 447 203 529 43.5 5.8 .6 83.0 9 Moderate risk 9.87 709 96 530 86.3 34.7 1.7 91.1 10 Other 10.23 625 99 498 93.3 18.0 .9 90.6 11 Daily 9.98 1,171 101 516 75.3 16.6 4.0 90.0 12 Minimal risk 8.81 8 35 334 42.6 30.2 100.0 13 Low risk 8.63 222 179 463 51.2 11.7 .5 87.7 14 Moderate risk 10.36 447 94 547 81.5 24.4 9.2 89.2 15 Other 10.49 312 521 83.3 13.4 1.4 88.4 16 2 to 30 days 8.21 963 172 178 42.9 5.1 72.8 17 Minimal risk 6.81 227 850 38 22.9 9.5 17.0 18 Low risk 7.49 134 313 354 55.3 .2 96.5 19 Moderate risk 8.77 264 88 233 45.6 4.7 31.2 87.0 20 Other 9.72 138 94 278 89.6 6.2 .0 87.2 21 31 to 365 days 9.25 1,249 57 61.5 9.9 2.4 49.2 22 Minimal risk 8.28 421 144 32.4 8.9 .0 14.6 23 Low risk 9.80 298 58 149 85.0 5.2 77.8 24 Moderate risk 10.30 179 28 639 83.5 3.6 8.3 52.0 25 Other 9.43 142 59 874 64.9 17.8 9.8 67.5 26 More than 365 days 27 Minimal risk . . . 2 2 3 8 9 0 O L M o t o h w d e e r r r i a s t k e risk . . 9 9 9. . . 4 5 4 4 4 0 2 1 78 9 5 4 1 1 7 0 4 3 9 6 6 2 8 1 . . . 1 6 5 2 4 4 . . 7 4 61 . .. 1 71 6 8 4 9 4 . . . 7 0 6 Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 10.53 1,238 3.0 248 84.4 24.7 1.9 66.9 32 100-999 9.96 2,341 2.9 309 84.3 20.5 5.4 77.2 33 1,000-9,999 8.64 2,558 2.6 299 51.4 12.0 1.6 75.3 34 10,000 or more 8.87 423 2.9 3 51.3 15.0 94.6 BASE RATE OF LOAN4 35 Prime7 10.36 3,292 3.1 167 82.2 23.0 2.5 86.0 3 3 6 7 F O e t d h e f r u d n o d m s estic 9 8 . . 1 4 0 2 2 1 4 8 8 1 22..61 6 3 1 6 2 3 8 89 0 . . 2 7 32 6. .9 2 2 3. . 2 0 5 5 8 9 . . 7 2 38 Foreign 8.17 930 2.9 213 43.8 1.9 11.9 92.7 39 Other 8.76 1,909 2.3 448 56.1 11.7 2.7 53.2 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 2001 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 6-10, 2000 E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks' Weighted- Weighted- Amount of loans (percent) e a f v f e e r c a ti g v e e Am lo o a u n n s t of Avera si g z e e loan m a a v t e u r r a i g ty e 3 ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s l a la n r d s s ) of Days S c e o c l u la re te d r a b l y p S re u p p b e a n je y a c m l t t y e t n o t c M om ad m e it u m nd e e n r t LOAN RISK5 1 All commercial and industrial loans 7.59 45,930 5,445 223 37.0 25.9 65.6 2 Minimal risk 7.24 860 3,529 211 2.8 36.0 100.0 3 Low risk 7.53 6,970 6,711 191 7.0 3.0 30.8 49.9 4 5 M Ot o h d e e r rate risk 7 8 . . 7 0 7 6 1 11 0 , , 5 5 1 8 4 7 5 3 , , 2 4 4 1 5 3 115212 2 1 0 3 . . 9 1 3 2 . . 5 5 3 1 6 6 . . 4 7 5 5 3 9 . . 3 6 By maturity/repricing interval6 6 Zero interval 403 7 Minimal risk 8 Low risk 9 Moderate risk 10.12 285 1,836 935 96.9 99.1 10 Other 10.88 108 277 993 61.9 97.5 11 Daily 22,655 10,148 12 Minimal risk 13 Low risk 7.73 4,437 18,341 147 .4 1.8 13.7 25.6 14 Moderate risk 7.74 5,714 9,262 137 9.9 6.3 24.5 33.0 15 Other 7.70 5,505 7,640 71 6.6 4.1 5.1 38.3 16 2 to 30 days 7.71 9,970 4,583 158 25.9 49.5 72.0 17 Minimal risk 7.18 398 4,522 323 4.1 60.6 100.0 18 Low risk 7.07 1,224 5,710 247 10.2 74.7 95.8 19 Moderate risk 7.63 2,758 4,397 118 17.6 42.3 63.1 20 Other 8.20 2,944 3,374 153 12.5 .2 36.9 68.6 21 31 to 365 days 7.49 10,824 3,709 141 58.0 1.3 22.1 94.1 22 Minimal risk 7.24 256 2,749 126 .7 100.0 23 Low risk 7.25 1,307 2,306 285 26.5 10.1 47.8 89.3 24 Moderate risk 7.68 1,823 2,997 128 48.1 .4 57.1 95.2 25 Other 8.42 2,871 2,537 154 22.1 19.0 88.7 26 More than 365 days 15,120 27 Minimal risk . . . 28 Low risk 29 Moderate risk . . 30 Other Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 9.34 50 3.5 49 41.7 21.0 19.9 85.6 32 100-999 8.71 1,181 3.6 64 41.6 14.5 29.0 87.2 33 1,000-9,999 7.85 11,695 3.1 49 35.6 5.2 35.8 79.9 34 10,000 or more 7.46 33,004 3.2 159 37.4 .9 22.3 59.7 BASE RATE OF LOAN4 35 Prime7 10.05 1,962 3.5 20 52.4 24.9 86.1 36 Fed funds 7.50 20,867 3.1 9 25.8 8.4 43.6 37 Other domestic 7.83 3,943 2.7 6 5.4 .0 99.1 30.7 38 Foreign 7.68 11,130 3.1 45 28.1 1.3 51.1 97.5 39 Other 7.01 8,028 4.8 641 90.5 .9 90.6 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets hi 1 NOTES TO TABLE 4.23 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions 5. A complete description of these risk categories is available from the Banking Analysis made during the first full business week in the mid-month of each quarter. The authorized Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC panel size for the survey is 348 domestically chartered commercial banks and 50 U.S. 20551. The category "Moderate risk" includes the average loan, under average economic branches and agencies of foreign banks. The sample data are used to estimate the terms of conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as loans extended during that week at all domestic commercial banks and all U.S. branches and well as special mention or classified loans. The weighted-average risk ratings published for agencies of foreign banks. Note that the terms on loans extended during the survey week may loans in rows 31-39 are calculated by assigning a value of "1" to minimal risk loans; "2" to differ from those extended during other weeks of the quarter. The estimates reported here are low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special not intended to measure the average terms on all business loans in bank portfolios. mention and classified loans. These values are weighted by loan amount and exclude loans 1. As of December 31, 1996, assets of most of the large banks were at least $7.0 billion. with no risk rating. Some of the loans in lines 1,6, 11, 16, 21, 26, and 31-39 are not rated for Median total assets for all insured banks were roughly $62 million. Assets at all U.S. branches risk. and agencies averaged 1.3 billion. 6. The maturity/repricing interval measures the period from the date the loan is made until it 2. Effective (compounded) annual interest rates are calculated from the stated rate and first may reprice or it matures. For floating-rate loans that are subject to repricing at any other terms of the loans and weighted by loan amount. The standard error of the loan rate for time—such as many prime-based loans—the maturity/repricing interval is zero. For floating-rate all commercial and industrial loans in the current survey (line 1, column 1) is 0.21 percentage loans that have a scheduled repricing interval, the maturity/repricing interval measures the number point. The chances are about two out of three that the average rate shown would differ by less of days between the date the loan is made and the date on which it is next scheduled to reprice. For than this amount from the average rate that would be found by a complete survey of the loans having rates that remain fixed until the loan matures (fixed-rate loans), the maturity/repricing universe of all banks. interval measures the number of days between the date the loan is made and the date on which it 3. Average maturities are weighted by loan amount and exclude loans with no stated matures. Loans that reprice daily mature or reprice on the business day after they are made. Owing maturities. to weekends and holidays, such loans may have maturity/repricing intervals in excess of one day; 4. The most common base pricing rate is that used to price the largest dollar volume of such loans are not included in the "2 to 30 day" category. loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or 7. For the current survey, the average reported prime rate, weighted by the amount of "reference" rate); the federal funds rate; domestic money market rates other than the prime loans priced relative to a prime base rate, was 9.51 percent for all banks; 9.50 percent for rate and the federal funds rate; foreign money market rates; and other base rates not included large domestic banks, 9.56 percent for small domestic banks; and 9.50 percent for U.S. in the foregoing classifications. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • February 2001 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 20001—Continued Millions of dollars except as noted All states- New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s ' inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 1 Total assets4 941,110 183,880 776,872 154,401 25,985 6,445 45,990 4,969 2 Claims on nonrelated parties 751,152 77,500 609,470 67,217 25,371 1,796 45,969 2,811 3 Cash and balances due from depository institutions 78,279 36,171 72,521 32,855 905 262 3,312 2,729 4 Cash items in process of collection and unposted debits 2,534 0 2,477 0 3 0 28 0 5 Currency and coin (U.S. and foreign) 16 n.a. 11 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 5511,,220077 14.744 4488,,228833 1133,,994400 695 85 832 423 7 U.S. branches and agencies of other foreign banks (including IBFs) 44,731 14,059 42,341 13,370 542 85 722 333 8 Other depository institutions in United States (including IBFs) . .. 6,475 685 5.942 570 153 0 110 90 9 Balances with banks in foreign countries and with foreign central banks 24,194 21,427 21,512 18,915 180 177 2,441 2,306 10 Foreign branches of U.S. banks 836 764 814 743 0 0 18 18 11 Banks in home country and home-country central banks 6,739 6.122 6,650 6,044 38 38 35 35 12 All other banks in foreign countries and foreign central banks .... 16,619 14,540 14,048 12,127 141 139 2,388 2,254 13 Balances with Federal Reserve Banks 329 n.a. 237 n.a. 27 n.a. 11 n.a. 14 Total securities and loans 431,156 33,907 338,569 27,258 23,637 1,462 31,555 26 15 Total securities, book value 104,740 3,995 96,418 3,494 1,184 453 5,589 11 16 U.S. Treasury 12,613 n.a. 11,810 n.a. 59 n.a. 728 n.a. 1/ Obligations of U.S. government agencies and corporations 4444,,551122 n.a. 4422,,007711 n.a. 174 n.a. 22,,006644 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 47,615 3,995 42,537 3,494 952 453 2,797 11 19 Securities of foreign governmental units 9,858 1,982 9,530 1,891 175 78 11 11 20 All Other 37,757 2,013 33,008 1,603 777 375 2,785 0 21 Federal funds sold and securities purchased under agreements to resell 105,167 5,397 101,699 5,297 302 33 2,435 0 22 U.S. branches and agencies of other foreign banks 10,692 3.020 9,907 2,946 159 8 251 0 2 3 Commercial banks in United States 13,287 60 12,409 34 89 25 434 0 24 Other 81,188 2,317 79,383 2,317 55 0 1,750 0 25 Total loans, gross 326,783 29,956 242,425 23,802 22,494 11,,001100 25,984 15 26 LESS: Unearned income on loans 367 45 274 38 41 11 18 0 27 EQUALS: Loans, net 326,416 29,912 242,151 23,764 22,453 1,009 25,966 15 Total loans, gross, by category 28 Real estate loans 17,399 90 12,478 90 3,075 0 134 0 29 Loans to depository institutions 22,541 13,960 15,931 9,850 1,393 807 164 11 30 Commercial banks in United States (including IBFs) 5,809 2,442 4,123 1,769 1,169 611 1 0 31 U.S. branches and agencies of other foreign banks 3,730 2,142 2,293 1,470 1,107 611 0 0 32 Other commercial banks in United States 2,079 299 1,831 299 62 0 1 0 33 Other depository institutions in United States (including IBFs) 15 0 0 0 0 0 0 0 34 Banks in foreign countries 16,717 11,518 11,807 8,081 • 225 196 164 11 35 Foreign branches of U.S. banks 939 617 900 582 0 0 0 0 36 Other banks in foreign countries 15,779 10.901 10,908 7,499 225 196 164 11 3/ Loans to other financial institutions 49,069 1,807 38,036 1,565 1,253 0 5,285 0 38 Commercial and industrial loans 211,915 11,956 153,356 10,330 16,152 180 18,782 0 39 U.S. addressees (domicile) 173,924 31 126,257 31 14,772 0 16,531 0 40 Non-U.S. addressees (domicile) 37,991 11,925 27,099 10,299 1,380 180 2,251 0 41 Acceptances of other banks 686 12 150 12 33 0 501 0 42 U.S. banks 8 0 3 0 3 0 0 0 43 Foreign banks 678 12 147 12 30 0 501 0 44 Loans to foreign governments and official institutions (including foreign central banks) 3,620 2,014 3,041 1,864 139 23 237 3 45 Loans for purchasing or carrying securities (secured and unsecured) . . . 12,596 12 12,246 12 0 0 0 0 46 All other loans 8,088 105 6,949 78 449 0 250 0 47 Lease financing receivables (net of unearned income) 868 0 238 0 0 0 630 0 48 U.S. addressees (domicile) 868 0 238 0 0 0 630 0 49 Non-U.S. addressees (domicile) 0 0 0 0 0 0 0 0 50 Trading assets 102,510 625 66,556 625 43 0 6,782 0 51 All other assets 34,040 1,400 30,126 1,182 484 39 1,885 56 52 Customers' liabilities on acceptances outstanding 1,406 n.a. 995 n.a. 147 n.a. 228 n.a. 53 U.S. addressees (domicile) 723 n.a. 566 n.a. 144 n.a. 12 n.a. 54 Non-U.S. addressees (domicile) 683 n.a. 429 n.a. 3 n.a. 216 n.a. 55 Other assets including other claims on nonrelated parties 32,634 1,400 29,131 1,182 336 39 1,657 56 56 Net due from related depository institutions5 189,958 106,380 167,402 87.184 613 4,649 20 2,158 57 Net due from head office and other related depository institutions . . . 118899,,995588 n.a. 116677,,440022 n.a. 613 n.a. 20 n.a. 58 Net due from establishing entity, head office, and other related depository institutions5 n.a. 106,380 n.a. 87,184 n.a. 4,649 n.a. 2,158 59 Total liabilities4 941,110 183,880 776,872 154,401 25,985 6,445 45,990 4,969 60 Liabilities to nonrelated parties 823,043 164,220 704,302 137,701 10,416 6,310 34,544 3,309 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A73 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2000'—Continued Millions of dollars except as noted All states- New York California Illinois IItteemm ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u t F d a s i l ng I o B n F ly s exc T IB l o u F t d a s i l ng I o B n F ly s exc T IB l o u t F d a s i l ng I o B n F ly s 61 Total deposits and credit balances 376,632 121,299 319,971 106,288 3,012 1,072 11,753 2,142 62 Individuals, partnerships, and corporations 286,493 10,648 237,872 5,356 2,542 181 9,498 28 63 U.S. addressees (domicile) 270,860 1 228,877 0 1,008 0 9,418 0 64 Non-U.S. addressees (domicile) 15,633 10,647 8,995 5,356 1,534 181 80 28 65 Commercial banks in United States (including IBFs) 43,443 15,813 38,633 14,972 325 87 721 168 66 U.S. branches and agencies of other foreign banks 19,590 14,130 16,010 13,366 0 87 295 163 67 Other commercial banks in United States 23,853 1,683 22,623 1,606 325 0 426 5 68 Banks in foreign countries 6,363 67,898 6,085 65,726 10 78 150 439 69 Foreign branches of U.S. banks 1,434 4,619 1,433 4,532 0 0 0 87 70 Other banks in foreign countries 4,930 63,278 4,652 61,193 10 78 150 352 71 Foreign governments and official institutions (including foreign central banks) 20,795 26,903 18,952 20,196 9 726 1,382 1,507 72 All other deposits and credit balances 19,054 37 17,967 37 120 0 0 0 73 Certified and official checks 484 462 6 1 74 Transaction accounts and credit balances (excluding IBFs) 8,524 6,805 349 208 75 Individuals, partnerships, and corporations 6,912 5,413 331 206 76 U.S. addressees (domicile) 4,807 4,223 222 .88 77 Non-U.S. addressees (domicile) 2,105 1,190 109 18 78 Commercial banks in United States (including IBFs) 40 36 0 0 79 U.S. branches and agencies of other foreign banks 3 3 0 0 80 Other commercial banks in United States 37 33 0 0 81 Banks in foreign countries 577 467 10 0 82 Foreign branches of U.S. banks 2 1 0 0 83 Other banks in foreign countries 576 466 10 0 84 Foreign governments and official institutions (including foreign central banks) 362 319 1 1 85 All other deposits and credit balances 149 108 1 0 86 Certified and official checks 484 462 6 1 87 Demand deposits (included in transaction accounts and credit balances) 7,965 6,506 279 205 88 Individuals, partnerships, and corporations 6,442 5,200 261 203 89 U.S. addressees (domicile) 4,617 4,139 195 185 90 Non-U.S. addressees (domicile) 1,824 1,061 66 18 91 Commercial banks in United States (including IBFs) 35 n.a. 31 n a. 0 n.a. 0 n.a. 92 U.S. branches and agencies of other foreign banks 2 1 0 0 93 Other commercial banks in United States 33 30 0 0 94 Banks in foreign countries 564 454 10 0 95 Foreign branches of U.S. banks 1 0 0 0 96 Other banks in foreign countries 563 454 10 0 97 Foreign governments and official institutions (including foreign central banks) 357 314 1 1 98 All other deposits and credit balances 85 46 0 0 99 Certified and official checks 484 462 6 1 100 Nontransaction accounts (including MMDAs, excluding IBFs) 368 108 313,166 2,662 11,544 101 Individuals, partnerships, and corporations 279,581 232,459 2,211 9.292 102 U.S. addressees (domicile) 266,052 224,654 786 9,230 103 Non-U.S. addressees (domicile) 13,528 7,805 1,425 62 104 Commercial banks in United States (including IBFs) 43,403 38,597 325 721 105 U.S. branches and agencies of other foreign banks 19,586 16,007 0 295 106 Other commercial banks in United States 23,816 22,589 325 426 107 Banks in foreign countries 5,786 5,618 0 150 108 Foreign branches of U.S. banks 1,432 1,432 0 0 109 Other banks in foreign countries 4,354 4,186 0 .50 110 Foreign governments and official institutions (including foreign central banks) 20,434 18,633 9 1,381 111 All other deposits and credit balances 18,905 17,859 119 0 112 IBF deposit liabilities 121.299 106,288 1,072 2,142 113 Individuals, partnerships, and corporations in 648 5.356 181 78 114 U.S. addressees (domicile) 1 0 0 0 115 Non-U.S. addressees (domicile) 10,647 5,356 181 78 116 Commercial banks in United States (including IBFs) 15,813 14,972 87 168 117 U.S. branches and agencies of other foreign banks 14,130 13,366 87 163 118 Other commercial banks in United States n.a. 1,683 n.a. 1,606 n a. 0 n.a. 5 119 Banks in foreign countries 67,898 65,726 78 439 120 Foreign branches of U.S. banks 4,619 4,532 0 87 121 Other banks in foreign countries 63.278 61.193 78 352 122 Foreign governments and official institutions (including foreign central banks) 26.903 20.196 726 1.507 123 All other deposits and credit balances 37 37 0 0 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • February 2001 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 20001—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 1 n g o IB nl F y s 3 inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 124 Federal funds purchased and securities sold under agreements to repurchase 153,661 17,238 144,256 12,105 978 567 3,361 983 125 U.S. branches and agencies of other foreign banks 9,448 2,295 8,065 1,710 329 250 858 271 126 Other commercial banks in United States 8,756 422 7,768 191 291 48 168 83 127 Other 135,457 14,521 128,423 10,203 358 269 2,335 629 128 Other borrowed money 74,032 23, ?68 57,783 17,746 4,998 4,630 4,940 169 129 Owed to nonrelated commercial banks in United States (including IBFs) 11,546 4,470 9,633 3,385 1,131 952 253 10 130 Owed to U.S. offices of nonrelated U.S. banks 5,009 777 4,377 516 346 257 72 0 131 Owed to U.S. branches and agencies of nonrelated foreign banks 6,537 3,693 5,256 2,870 785 696 182 10 132 Owed to nonrelated banks in foreign countries 15,975 13,536 11,530 9,315 3,011 2,991 270 159 133 Owed to foreign branches of nonrelated U.S. banks 1,274 1,122 937 798 315 315 0 0 134 Owed to foreign offices of nonrelated foreign banks 14,701 12,414 10,592 8,518 2,696 2,677 270 159 135 Owed to others 46,511 5,962 36,621 5,046 856 6 86 4,418 0 136 All other liabilities 97,420 1,715 76,004 1,562 356 42 12,348 14 137 Branch or agency liability on acceptances executed and outstanding 1,743 n.a. 1,143 n.a. 148 n.a. 402 n.a. 138 Trading liabilities 68,049 39 51,475 39 41 0 10,676 0 139 Other liabilities to nonrelated parties 27,628 1,676 23,386 1,523 167 42 1,271 14 140 Net due to related depository institutions5 118,067 19,659 72,570 16,700 15,568 135 11,446 1,660 141 Net due to head office and other related depository institutions5 .... 118,067 n.a. 72,570 n.a. 15,568 n.a. 11,446 n.a. 142 Net due to establishing entity, head office, and other related depository institutions5 n.a. 19,659 n.a. 16,700 n.a. 135 n.a. 1,660 MEMO 143 Non-interest-bearing balances with commercial banks in United States 934 0 801 0 32 0 9 0 144 Holding of own acceptances included in commercial and industrial loans 1,687 • • 1,217 • > 133 • 231 • • 145 Commercial and industrial loans with remaining maturity of one year or less (excluding those in nonaccrual status) 99,896 68,237 8,187 9,053 146 Predetermined interest rates 56,324 n.a. 36,799 n.a. 4,082 n.a. 6,770 n.a. 147 Floating interest rates 4433,,557711 3311,,443388 4,106 2,283 148 Commercial and industrial loans with remaining maturity of more than one year (excluding those in nonaccrual status) 109,782 83,616 7,584 9,609 149 Predetermined interest rates 29,521 20,103 976 6,636 150 Floating interest rates 80,261 63,513 6,609 2,973 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, September 30, 2000'—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm ex I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u t F d a s i l n g I o B n F ly s 111155551111 CCCCoooommmmppppoooonnnneeeennnnttttssss ooooffff ttttoooottttaaaallll nnnnoooonnnnttttrrrraaaannnnssssaaaaccccttttiiiioooonnnn aaaaccccccccoooouuuunnnnttttssss,,,, iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ttttoooottttaaaallll ddddeeeeppppoooossssiiiittttssss aaaannnndddd ccccrrrreeeeddddiiiitttt bbbbaaaallllaaaannnncccceeeessss ((((eeeexxxxcccclllluuuuddddiiiinnnngggg IIIIBBBBFFFFssss)))) 370,830 n.a. 317,076 n.a. 2,504 n.a. 11,487 n.a. 111155552222 TTTTiiiimmmmeeee ddddeeeeppppoooossssiiiittttssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee 364,354 n.a. 310,663 n.a. 2,479 n.a. 11,485 n.a. 111155553333 TTTTiiiimmmmeeee CCCCDDDDssss iiiinnnn ddddeeeennnnoooommmmiiiinnnnaaaattttiiiioooonnnnssss ooooffff $$$$111100000000,,,,000000000000 oooorrrr mmmmoooorrrreeee wwwwiiiitttthhhh rrrreeeemmmmaaaaiiiinnnniiiinnnngggg mmmmaaaattttuuuurrrriiiittttyyyy ooooffff mmmmoooorrrreeee tttthhhhaaaannnn 11112222 mmmmoooonnnntttthhhhssss 6,477 n.a. 6,413 n.a. 24 n.a. 2 n.a. All states2 New York California Illinois inc T I l B o u t F d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u t F d a s i l n g I o B n F ly s 111155554444 IIIImmmmmmmmeeeeddddiiiiaaaatttteeeellllyyyy aaaavvvvaaaaiiiillllaaaabbbblllleeee ffffuuuunnnnddddssss wwwwiiiitttthhhh aaaa mmmmaaaattttuuuurrrriiiittttyyyy ggggrrrreeeeaaaatttteeeerrrr tttthhhhaaaannnn oooonnnneeee ddddaaaayyyy iiiinnnncccclllluuuuddddeeeedddd iiiinnnn ooootttthhhheeeerrrr bbbboooorrrrrrrroooowwwweeeedddd mmmmoooonnnneeeeyyyy 27,185 n.a. 24,082 n.a. 2,156 n.a. 292 n.a. 111155555555 NNNNuuuummmmbbbbeeeerrrr ooooffff rrrreeeeppppoooorrrrttttssss ffffiiiilllleeeedddd6666 344 0 180 0 70 0 28 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G. 11, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G.ll monthly statistical release, the G.l 1 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G. 11 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases, two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Special Tables • February 2001 4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES A. Pro forma balance sheet Millions of dollars Item Sept. 30, 2000 Sept. 30, 1999 Short-term assets (Note 1) Imputed reserve requirement on clearing balances 603.4 680.5 Investment in marketable securities 5,430.6 6.124.5 Receivables 71.8 70.7 Materials and supplies 3.2 4.3 Prepaid expenses 22.9 21.0 Items in process of collection 3,152.5 3.532.6 Total short-term assets 9,284.4 10,433.7 Long-term assets (Note 2) Premises 459.9 418.8 Furniture and equipment 163.2 145.7 Leases and leasehold improvements 46.1 40.9 Prepaid pension costs 629.4 516.4 Total long-term assets 1,298.5 1,121.8 Total assets 10,582.9 11,555.5 Short-term liabilities Clearing balances and balances arising from early credit of uncollected items 5,718.1 7.076.8 Deferred-availability items 3,468.4 3.260.9 Short-term debt 97.9 96.0 Total short-term liabilities 9,284.4 10,433.7 Long-term liabilities Obligations under capital leases 0.0 0.0 Long-term debt 417.3 225.2 Postretirement/postemployment benefits obligation 239.5 215.9 Total long-term liabilities 656.7 441.1 Total liabilities 9,941.1 10,874.7 641.8 680.7 Total liabilities and equity (Note 3) 10,582.9 11,555.5 NOTE. Components may not sum to totals because of rounding. The priced services (2) LONG-TERM ASSETS financial statements consist of these tables and the accompanying notes. Consists of long-term assets used solely in priced services, the priced-services portion of (1) SHORT-TERM ASSETS long-term assets shared with nonpriced services, and an estimate of the assets of the Board of Governors used in the development of priced services. Effective Jan. 1, 1987, the Reserve The imputed reserve requirement on clearing balances held at Reserve Banks by depository Banks implemented the Financial Accounting Standards Board's Statement of Financial institutions reflects a treatment comparable to that of compensating balances held at corre- Accounting Standards No. 87, Employers' Accounting for Pensions (SFAS 87). Accordingly, spondent banks by respondent institutions. The reserve requirement imposed on respondent the Federal Reserve Banks recognized credits to expenses of $24.9 million in the third quarter balances must be held as vault cash or as nonearning balances maintained at a Reserve Bank; of 1999, $54.2 million in the second quarter of 1999, $21.9 million in the first quarter of 1999, thus, a portion of priced services clearing balances held with the Federal Reserve is shown as $86.6 million in the third quarter of 2000, $57.7 million in the second quarter of 2000, and required reserves on the asset side of the balance sheet. The remainder of clearing balances is $28.9 million in the first quarter of 2000, and corresponding increases in this asset account. assumed to be invested in three-month Treasury bills, shown as investment in marketable securities. (3) LIABILITIES AND EQUITY Receivables are (1) amounts due the Reserve Banks for priced services and (2) the share of suspense-account and difference-account balances related to priced services. Under the matched-book capital structure for assets that are not "self-financing," short-term Materials and supplies are the inventory value of short-term assets. assets are financed with short-term debt. Long-term assets are financed with long-term debt Prepaid expenses include salary advances and travel advances for priced-service personnel. and equity in a proportion equal to the ratio of long-term debt to equity for the fifty largest Items in process of collection is gross Federal Reserve cash items in process of collection bank holding companies, which are used in the model for the private-sector adjustment factor (CIPC) stated on a basis comparable to that of a commercial bank. It reflects adjustments for (PSAF). The PSAF consists of the taxes that would have been paid and the return on capital intra-System items that would otherwise be double-counted on a consolidated Federal that would have been provided had priced services been furnished by a private-sector firm. Reserve balance sheet; adjustments for items associated with non-priced items, such as those Other short-term liabilities include clearing balances maintained at Reserve Banks and collected for government agencies; and adjustments for items associated with providing fixed deposit balances arising from float. Other long-term liabilities consist of obligations on capital availability or credit before items are received and processed. Among the costs to be leases. recovered under the Monetary Control Act is the cost of float, or net CIPC during the period (the difference between gross CIPC and deferred-availability items which is the portion of gross CIPC that involves a financing cost), valued at the federal funds rate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data All 4.31 PRO FORMA FINANCIAL STATEMENTS FOR FEDERAL RESERVE PRICED SERVICES B. Pro forma income statement Millions of dollars Item Quarter ending Sept. 30, 2000 Quarter ending Sept. 30, 1999 Revenue from services provided to depository institutions (Note 4) 221.5 210.9 Operating expenses (Note 5) 173.3 173.6 Income from operations 48.2 37.3 Inputed costs (Note 6) Interest on float 2.5 1.0 Interest on debt 7.8 4.6 Sales taxes 1.9 2.3 FDIC insurance 0.0 12.2 0.9 8.8 Income from operations after imputed costs 36.0 28.5 Other income and expenses (Note 7) Investment income on clearing balances 102.5 84.6 Earnings credits 94.0 8.5 (79.2) 5.4 Income before income taxes 44.5 33.9 Inputed income taxes (Note 8) 14.0 10.9 Net income 30.5 23.1 MEMO Targeted return on equity (Note 9) 24.6 14.3 Nine months ending Sept. 30, 2000 Nine months ending Sept. 30, 1999 Revenue from services provided to depository institutions (Note 4) 654.9 619.3 Operating expenses (Note 5) 519.7 508.5 Income from operations 135.2 110.8 Imputed costs (Note 6) Interest on float 5.7 6.9 Interest on debt 23.6 13.8 Sales taxes 6.1 6.9 FDIC insurance 0.0 35.4 2.5 30.2 Income from operations after imputed costs 99.8 80.7 Other income and expenses (Note 7) Investment income on clearing balances 306.2 243.8 Earnings credits (275.8) 30.5 (220.2) 23.6 Income before income taxes 130.2 104.3 Imputed income taxes (Note 8) 41.0 33.4 Net income 89.2 70.9 MEMO Targeted return on equity (Note 9) 73.8 45.8 NOTE. Components may not sum to totals because of rounding. The priced services Unrecovered float includes float generated by services to government agencies and by other financial statements consist of these tables and the accompanying notes. central bank services. Float recovered through income on clearing balances is the result of the increase in investable clearing balances; the increase is produced by a deduction for float for cash items in process of collection, which reduces imputed reserve requirements. The income (4) REVENUE on clearing balances reduces the float to be recovered through other means. As-of adjustments Revenue represents charges to depository institutions for priced services and is realized from are memorandum adjustments to an institution's reserve or clearing position to recover float each institution through one of two methods: direct charges to an institution's account or incurred by the institution. Direct charges are billed to the institution for float incurred when charges against its accumulated earnings credits. an institution chooses to close on a normal business day and for float incurred on interterritory check transportation. Float recovered through direct charges is valued at cost using the federal funds rate and charged directly to an institution's account. Float recovered through per-item (5) OPERATING EXPENSES fees is valued at the federal funds rate and has been added to the cost base subject to recovery Operating expenses consist of the direct, indirect, and other general administrative expenses in the third quarters of 2000 and 1999. of the Reserve Banks for priced services plus the expenses for staff members of the Board of Governors working directly on the development of priced services. The expenses for Board (7) OTHER INCOME AND EXPENSES staff members totaled $3.15 million for the first, second, and third quarters of 2000 and $.85 million for the first, second, and third quarters of 1999. The credit to expenses under SFAS 87 Consists of imputed investment income on clearing balances and the actual cost of earnings (see note 2) is reflected in operating expenses. credits. Investment income on clearing balances represents the average coupon-equivalent yield on three-month Treasury bills applied to the total clearing balance maintained, adjusted for the effect of reserve requirements on clearing balances. Expenses for earnings credits (6) IMPUTED COSTS granted to depository institutions on their clearing balances are derived by applying the Imputed costs consist of interest on float, interest on debt, sales taxes, and the FDIC average federal funds rate to the required portion of the clearing balances, adjusted for the net assessment. Interest on float is derived from the value of float to be recovered, either effect of reserve requirements on clearing balances. explicitly or through per-item fees, during the period. Float costs include costs for checks, book-entry securities, noncash collection, ACH, and funds transfers. (8) INCOME TAXES Interest is imputed on the debt assumed necessary to finance priced-service assets. The sales taxes and FDIC assessment that the Federal Reserve would have paid had it been a Imputed income taxes are calculated at the effective tax rate derived from the PSAF model private-sector firm are among the components of the PSAF (see note 3). (see note 3). Float costs are based on the actual float incurred for each priced service, multiplied by the appropriate federal funds rate. Other imputed costs are allocated among priced services (9) RETURN ON EQUITY according to the ratio of operating expenses less shipping expenses for each service to the total expenses for all services less the total shipping expenses for all services. Represents the after-tax rate of return on equity that the Federal Reserve would have earned The following list shows the daily average recovery of float (before converting to float had it been a private business firm, as derived from the PSAF model (see note 3). This amount costs) by the Reserve Banks for the third quarter of 2000 and 1999 in millions of dollars: is adjusted to reflect the recovery of automation consolidation costs of $0.0 million for the first, second, and third quarters of 2000, $0.3 million for the third quarter of 1999, $3.5 2000 1999 million for the second quarter of 1999, and $3.3 million for the first quarter of 1999. The Reserve Banks recovered these amounts, along with a finance charge, by the end of 1999. Total float 725.4 437.1 Unrecovered float 145.6 (148.5) Float subject to recovery 579.8 585.6 Sources of float recovery Income on clearing balances 58.0 44.3 As-of adjustments 430.8 352.0 Direct charges 314.2 100.2 Per-item fees (223.2) 89.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Bulletin • February 2001 Index to Statistical Tables References are to pages A3-A77, although the prefix 'A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal credit agencies, 30 Assets and liabilities (See also Foreigners) Federal finance Commercial banks, 15-21, 64-65 Debt subject to statutory limitation, and types and ownership Domestic finance companies, 32, 33 of gross debt, 27 Federal Reserve Banks, 10 Receipts and outlays, 25, 26 Foreign banks, U.S. branches and agencies, 72-5 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, 72-5. (See also Foreigners) Bonds (See also U.S. government securities) Federal National Mortgage Association, 30, 34, 35 New issues, 31 Federal Reserve Banks Rates, 23 Balance sheet, priced services, 76 Business activity, nonfinancial, 42 Condition statement, 10, 77 Business loans (See Commercial and industrial loans) Discount rates (See Interest rates) US. government securities, 5, 10, 11, 27 Federal Reserve credit, 5, 6, 10, 12 CAPACITY utilization, 43 Federal Reserve notes, 10 Capital accounts Federal Reserve System Commercial banks, 15-21, 64-65 Balanced sheet for priced services, 76, 77 Federal Reserve Banks, 10 Condition statement for priced services, 76, 77 Certificates of deposit, 23 Federally sponsored credit agencies, 30 Commercial and industrial loans Finance companies Commercial banks, 15-21, 64-71 Assets and liabilities, 32 Weekly reporting banks, 17, 18 Business credit, 33 Commercial banks Loans, 36 Assets and liabilities, 15-21, 64-65 Paper, 22, 23 Commercial and industrial loans, 15-21, 64-65, 66-71 Float, 5 Consumer loans held, by type and terms, 36, 66-71 Flow of funds, 37-41 Real estate mortgages held, by holder and property, 35 Foreign banks, US. branches and agencies, 71-5 Terms of lending, 64-65 Foreign currency operations, 10 Time and savings deposits, 4 Foreign deposits in U.S. banks, 5 Commercial paper, 22, 23, 32 Foreign exchange rates, 62 Condition statements (See Assets and liabilities) Foreign-related institutions, 20 Construction, 42, 46 Foreign trade, 51 Consumer credit, 36 Foreigners Consumer prices, 42 Claims on, 52, 55-7, 59 Consumption expenditures, 48, 49 Liabilities to, 51-3, 58, 60, 61 Corporations Profits and their distribution, 32 Security issues, 31, 61 GOLD Cost of living (See Consumer prices) Certificate account, 10 Credit unions, 36 Stock, 5, 51 Currency in circulation, 5, 13 Government National Mortgage Association, 30, 34, 35 Customer credit, stock market, 24 Gross domestic product, 48, 49 DEBT (See specific types of debt or securities) HOUSING, new and existing units, 46 Demand deposits, 15-21 Depository institutions Reserve requirements, 8 INCOME and expenses, Federal Reserve System, 76, 77 Reserves and related items, 4-6, 12, 64-65 Income, personal and national, 42, 48, 49 Deposits (See also specific types) Industrial production, 42, 44 Commercial banks, 4, 15-21, 64-65 Insurance companies, 27, 35 Federal Reserve Banks, 5, 10 Interest rates Discount rates at Reserve Banks and at foreign central banks and Bonds, 23 foreign countries (See Interest rates) Commercial banks, 66-71 Discounts and advances by Reserve Banks (See Loans) Consumer credit, 36 Dividends, corporate, 32 Federal Reserve Banks, 7 Money and capital markets, 23 Mortgages, 34 EMPLOYMENT, 42 Prime rate, 22, 66-71 Euro, 62 International capital transactions of United States, 50-61 International organizations, 52, 53, 55, 58, 59 FARM mortgage loans, 35 Inventories, 48 Federal agency obligations, 5, 9-11, 28, 29 Investment companies, issues and assets, 32 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A79 Investments (See also specific types) Residential mortgage loans, 34, 35 Commercial banks, 4, 15-21, 66-71 Retail credit and retail sales, 36, 42 Federal Reserve Banks, 10, 11 Financial institutions, 35 SAVING Flow of funds, 37-41 LABOR force, 42 National income accounts, 48 Life insurance companies (See Insurance companies) Savings deposits (See Time and savings deposits) Loans (See also specific types) Savings institutions, 35, 36, 37-41 Commercial banks, 15-21, 64-65, 66-71 Securities (See also specific types) Federal Reserve Banks, 5-7, 10, 11 Federal and federally sponsored credit agencies, 30 Federal Reserve System, 76, 77 Foreign transactions, 60 Financial institutions, 35 New issues, 31 Foreign banks, U.S. branches and agencies, 72 Prices, 24 Insured or guaranteed by United States, 34, 35 Special drawing rights, 5, 10, 50, 51 State and local governments MANUFACTURING Holdings of U.S. government securities, 27 Capacity utilization, 43 New security issues, 31 Production, 43, 45 Rates on securities, 23 Margin requirements, 24 Stock market, selected statistics, 24 Member banks, reserve requirements, 8 Stocks (See also Securities) Mining production, 45 New issues, 31 Mobile homes shipped, 46 Prices, 24 Monetary and credit aggregates, 4, 12 Money and capital market rates, 23 Student Loan Marketing Association, 30 Money stock measures and components, 4, 13 Mortgages (See Real estate loans) TAX receipts, federal, 26 Mutual funds, 13, 32 Thrift institutions, 4. (See also Credit unions and Savings Mutual savings banks (See Thrift institutions) institutions) Time and savings deposits, 4, 13, 15-21, 64-65 NATIONAL defense outlays, 26 Trade, foreign, 51 National income, 48 Treasury cash, Treasury currency, 5 Treasury deposits, 5, 10, 25 OPEN market transactions, 9 Treasury operating balance, 25 UNEMPLOYMENT, 42 PERSONAL income, 49 U.S. government balances Priced services, Federal Reserve income statements, 76, 77 Commercial bank holdings, 15-21 Prices Treasury deposits at Reserve Banks, 5, 10, 25 Consumer and producer, 42, 47 U.S. government securities Stock market, 24 Bank holdings, 15-21, 27 Prime rate, 22, 66-71 Dealer transactions, positions, and financing, 29 Producer prices, 42, 47 Federal Reserve Banks holdings, 5, 10, 11, 27 Production, 42, 44 Foreign and international holdings and transactions, 10, 27, 61 Profits, corporate, 32 Open market transactions, 9 Outstanding, by type and holder, 27, 28 REAL estate loans Rates, 23 Banks, 15-21, 35 U.S. international transactions, 50-62 Terms, yields and activity, 34 Utilities, production, 45 Type and holder and property mortgaged, 35 Reserve requirements, 8 VETERANS Administration, 34, 35 Reserves Commercial banks, 15-21 WEEKLY reporting banks, 17, 18 Depository institutions, 4-6, 12 Wholesale (producer) prices, 42, 47 Federal Reserve Banks, 10 U.S. reserve assets, 51 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • February 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 RICHARD T. FREEMAN, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board WILLIAM L. HELKIE, Assistant Director STEVEN B. KAMIN, Assistant Director LEGAL DIVISION RALPH W. TRYON, Assistant Director J. VIRGIL MATTINGLY, JR., General Counsel SCOTT G. ALVAREZ, Associate General Counsel DIVISION OF RESEARCH AND STATISTICS RICHARD M. ASHTON, Associate General Counsel DAVID J. STOCKTON, Director KATHLEEN M. O'DAY, Associate General Counsel EDWARD C. ETTIN, Deputy Director ANN E. MISBACK, Assistant General Counsel DAVID WILCOX, Deputy Director SANDRA L. RICHARDSON, Assistant General Counsel WILLIAM R. JONES, Associate Director STEPHEN L. SICILIANO, Assistant General Counsel MYRON L. KWAST, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel STEPHEN D. OLINER, Associate Director PATRICK M. PARKINSON, Associate Director OFFICE OF THE SECRETARY 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 DONALD L. KOHN, Director JAMES V. HOUPT, Associate Director DAVID E. LINDSEY, Deputy Director JACK P. JENNINGS, Associate Director BRIAN F. MADIGAN, Associate Director MICHAEL G. MARTINSON, Associate Director RICHARD D. PORTER, Deputy Associate Director MOLLY S. WASSOM, Associate Director WILLIAM C. WHITESELL, Assistant Director HOWARD A. AMER, Deputy Associate Director NORMAND R. V. BERNARD, Special Assistant to the Board NORAH M. BARGER, Deputy Associate Director BETSY CROSS, Deputy Associate Director DIVISION OF CONSUMER RICHARD A. SMALL, Deputy Associate Director AND COMMUNITY AFFAIRS DEBORAH P. BAILEY, Assistant Director DOLORES S. SMITH, Director BARBARA J. BOUCHARD, Assistant Director GLENN E. LONEY, Deputy Director ANGELA DESMOND, Assistant Director SANDRA F. BRAUNSTEIN, Assistant Director JAMES A. EMBERSIT, Assistant Director MAUREEN P. ENGLISH, Assistant Director CHARLES H. HOLM, Assistant Director ADRIENNE D. HURT, Assistant Director HEIDI W. RICHARDS, Assistant Director IRENE SHAWN MCNULTY, Assistant Director WILLIAM G. SPANIEL, 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

A81 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 CHRISTINE M. FIELDS, Assistant Director, Human Resources MARSHA REIDHILL, Assistant Director Function JEFF J. STEHM, Assistant Director SHEILA CLARK, EEO Programs Director OFFICE OF THE INSPECTOR GENERAL DIVISION OF SUPPORT SERVICES BARRY R. SNYDER, Inspector General ROBERT E. FRAZIER, Director DONALD L. ROBINSON, Deputy Inspector General GEORGE M. LOPEZ, Assistant Director DAVID L. WILLIAMS, Assistant Director 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

A82 Federal Reserve Bulletin • February 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 LYNN E. BROWNE, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary CHRISTINE M. CUMMING, Associate Economist LYNN S. FOX, Assistant Secretary CRAIG S. HAKKIO, Associate Economist GARY P. GILLUM, Assistant Secretary DAVID H. HOWARD, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel WILLIAM C. HUNTER, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel DAVID E. LINDSEY, Associate Economist KAREN H. JOHNSON, Economist ROBERT H. RASCHE, Associate Economist DAVID J. STOCKTON, Economist VINCENT R. REINHART, Associate Economist PETER R. FISHER, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL LAWRENCE K. FISH, First District ALAN G. MCNALLY, 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 CAMDEN R. FINE, Tenth District L. M. BAKER, JR., Fifth District RICHARD W. EVANS, JR., Eleventh District L. PHILLIP HUMANN, Sixth District LINNET F. DEILY, Twelfth District JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A83 CONSUMER ADVISORY COUNCIL LAUREN ANDERSON, New Orleans, Louisiana, Chairman DOROTHY BROADMAN, San Francisco, California, Vice Chairman ANTHONY S. ABBATE, Saddlebrook, New Jersey ANNE S. LI, Trenton, New Jersey TERESA A. BRYCE, St. Louis, Missouri J. PATRICK LIDDY, Cincinnati, Ohio MALCOLM M. BUSH, Chicago, Illinois OSCAR MARQUIS, Park Ridge, Illinois MANUEL CASANOVA, JR., Brownsville, Texas JEREMY NOWAK, Philadelphia, Pennsylvania CONSTANCE K. CHAMBERLIN, Richmond, Virginia NANCY PIERCE, Kansas City, Missouri ROBERT M. CHEADLE, Ada, Oklahoma MARTA RAMOS, San Juan, Puerto Rico MARY ELLEN DOMEIER, New Ulm, Minnesota RONALD A. REITER, San Francisco, California LESTER W. FIRSTENBERGER, Evansville, Indiana ELIZABETH RENUART, Boston, Massachusetts JOHN C. GAMBOA, San Francisco, California RUSSELL W. SCHRADER, San Francisco, California EARL JAROLIMEK, Fargo, North Dakota FRANK TORRES, JR., Washington, District of Columbia WILLIE M. JONES, Boston, Massachusetts GARY S. WASHINGTON, Chicago, Illinois M. DEAN KEYES, St. Louis, Missouri ROBERT L. WYNN II, Madison, Wisconsin THRIFT INSTITUTIONS ADVISORY COUNCIL THOMAS S. JOHNSON, New York, New York, President MARK H. WRIGHT, San Antonio, Texas, Vice President TOM R. DORETY, Tampa, Florida JAMES F. MCKENNA, Brookfield, Wisconsin RONALD S. ELIASON, Provo, Utah CHARLES C. PEARSON, JR., Harrisburg, Pennsylvania D. R. GRIMES, Alpharetta, Georgia HERBERT M. SANDLER, Oakland, California CORNELIUS D. MAHONEY, Westfield, Massachusetts EVERETT STILES, Franklin, North Carolina KAREN L. MCCORMICK, Port Angeles, Washington CLARENCE ZUGELTER, Kansas City, Missouri Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin • February 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, Federal Reserve Bank Board of Directors $35.00 per year or $.80 each. Federal Reserve Banks REGULATIONS OF THE BOARD OF GOVERNORS OF THE FEDERAL A Consumer's Guide to Mortgage Lock-Ins RESERVE SYSTEM. A Consumer's Guide to Mortgage Settlement Costs ANNUAL PERCENTAGE RATE TABLES (Truth in Lending— A Consumer's Guide to Mortgage Refinancings Regulation Z) Vol. I (Regular Transactions). 1969. 100 pp. Home Mortgages: Understanding the Process and Your Right Vol. II (Irregular Transactions). 1969. 116 pp. Each volume to Fair Lending $5.00. How to File a Consumer Complaint about a Bank GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. Making Sense of Savings 1,186 pp. $20.00 each. SHOP: The Card You Pick Can Save You Money FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Welcome to the Federal Reserve monthly. (Requests must be prepaid.) When Your Home is on the Line: What You Should Know Consumer and Community Affairs Handbook. $75.00 per year. About Home Equity Lines of Credit Monetary Policy and Reserve Requirements Handbook. $75.00 Keys to Vehicle Leasing per year. Looking for the Best Mortgage Securities Credit Transactions Handbook. $75.00 per year. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A85 STAFF STUDIES: Only Summaries Printed in the 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by James T. Fergus and John L. Goodman, Jr. July 1993. BULLETIN Studies and papers on economic and financial subjects that are of 20 pp. general interest. Requests to obtain single copies of the full text or1 67. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANKto be added to the mailing list for the series may be sent to ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Publications Services. PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out 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. w w w .federalreserve. go v/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

A86 Federal Reserve Bulletin • February 2001 Maps of the Federal Reserve System 1 Bos I ON P ^ BNI-WYORK " Cleveland B m„ , ia p l PH •D RICHMOND Louis 8 imlT^^ • •S Atlanta . jmrnmrnsmi M \SK\ 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

A87 1-A 2-B 3-C 4-D 5-E Pittsburgh Baltimore MD V tf ' : X' , CT VT wv NH ' Buffa ' lo Bj / cmnati • Chariot ic MA ® / NY CT KY sc BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H , „ ' • Nashville TN—*• KY AL \ MI Birmingham WI MS _ OA J Lofsville 1 * L_F — TN LA J;ickson\ ille IL ""AA • Memphis New Orleans IN Little / Rock ( MS Miami ATLANTA CHICAGO ST Louis 99--11 MT liiiil^M M> MK • Helen IHHHHIHI IFIBBBR^^ • /•wMHHMBHB® MINNEAPOLIS 10—J 12-L \VY . 1 NE (X) Omaha* • KS • Denver Oklahoma Cit\ • OK KANSAS CITY 11-K S;ui Antonio DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A88 Federal Reserve Bulletin • February 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 Roger Reynolds 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

A89 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

A90 Federal Reserve Bulletin • February 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. 1 Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis