Federal Reserve Bulletin, 2001-06

Volume 87 • Number 6 • June 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 367 PROFITS AND BALANCE SHEET in April 2000. The rate of capacity utilization DEVELOPMENTS AT U.S. COMMERCIAL for total industry fell further, to 78.5 percent, BANKS IN 2000 more than SVz percentage points below its 1967- 2000 average. The profitability of the U.S. commercial banking industry remained robust in 2000, but returns on 403 TESTIMONY OF FEDERAL RESERVE equity and on commercial bank assets fell back OFFICIALS somewhat from the peak reached in 1999. The falloff reflected a continuation of the decline in Alan Greenspan, Chairman, Board of Governors net interest margin that dates from the extraor- of the Federal Reserve System, discusses his dinarily high levels of the early 1990s, a sig- views on some of the important issues concernnificant increase in loan-loss provisions, and a ing international trade and the attendant implicanotable slowing in noninterest income growth. tions for the U.S. economy and the world econ- The expansion of bank balance sheets was much omy more generally and states that the evidence stronger in 2000 than in the preceding year, as is impressively persuasive that the dramatic growth of both loans and securities accelerated. increase in world competition—a consequence The pickup in loan growth resulted mainly from of broadening trade flows—has fostered marka marked decline in securitizations, which edly higher standards of living for almost all boosted the growth of consumer loans in bank countries that have participated in cross-border portfolios, and from business and real estate trade. He states further that we must reaffirm the lending. The faster growth of securities was due United States' leadership role in the area of to a surge in trading accounts, as runoffs of U.S. international trade policy to improve standards Treasury securities damped the growth of invest- of living in the United States and among all of ment accounts. our trading partners (Testimony before the Senate Committee on Finance, April 4, 2001). 394 TREASURY AND FEDERAL RESERVE 405 Laurence H. Meyer, Member, Board of Gover- FOREIGN EXCHANGE OPERATIONS nors, outlines the rules recently adopted jointly by the Federal Reserve Board and the Secretary During the first quarter of 2001, the dollar appreof the Treasury to allow financial holding comciated 7.3 percent against the euro and 10.3 perpanies to engage in merchant banking activities cent against the yen in an atmosphere of under the Gramm-Leach-Bliley Act; he also increased market uncertainty about the extent comments on the recent proposal to establish and duration of global economic slowing. On regulatory minimum capital requirements for a trade-weighted basis, the dollar ended the equity investment activities conducted by bankquarter 7.4 percent stronger against an index of ing organizations. He testifies that the final rule major currencies. The U.S. monetary authorities governing merchant banking activities was did not intervene in the foreign exchange marmodified in several important respects from the kets during the quarter. original interim rule to reflect insights and suggestions made by commenters; the final rule maintains the differences required by the 400 INDUSTRIAL PRODUCTION AND CAPACITY GLB Act and the Bank Holding Company Act UTILIZATION FOR APRIL 2001 between merchant banking and banking and Industrial production declined 0.3 percent in commerce and also does not sacrifice the safety April after a drop in output in the first quarter and soundness benefits of the rule (Testimony that was steeper than previously reported. At before the Subcommittee on Capital Markets, Insurance and Government Sponsored Enter- 144.9 percent of its 1992 average, industrial prises and the Subcommittee on Financial Instiproduction in April was 1.0 percent lower than Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

tutions and Consumer Credit of the House Com- A1 FINANCIAL AND BUSINESS STATISTICS mittee on Financial Services, April 4, 2001). These tables reflect data available as of April 26, 2001. 412 ANNOUNCEMENTS Action by the Federal Open Market Committee A3 GUIDE TO TABULAR PRESENTATION and a decrease in the discount rate. A4 Domestic Financial Statistics Final rule on section 23A of the Federal Reserve A42 Domestic Nonfinancial Statistics Act regarding bank affiliates. A50 International Statistics Guidance on protection of customer financial information against identity theft. A63 GUIDE TO STATISTICAL RELEASES AND SPECIAL TABLES Interagency advisory on brokered and ratesensitive deposits. A64 INDEX TO STATISTICAL TABLES Guidance on risk management of leveraged financing. A66 BOARD OF GOVERNORS AND STAFF Proposed amendment to Regulation H regarding A68 FEDERAL OPEN MARKET COMMITTEE AND interstate branching and deposits. STAFF; ADVISORY COUNCILS Interim rule on derivatives transactions between banks and affiliates. A70 FEDERAL RESERVE BOARD PUBLICATIONS Proposed new Regulation W regarding banks A72 SCHEDULE OF RELEASE DATES FOR and affiliates. PERIODIC RELEASES 417 LEGAL DEVELOPMENTS A74 MAPS OF THE FEDERAL RESERVE SYSTEM Various bank holding company, bank service corporation, and bank merger orders; and pend- A76 FEDERAL RESERVE BANKS, BRANCHES, ing cases. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 William F. Bassett and Egon Zakrajsek, of the Board's 1. Measures of commercial bank profitability, 1975-2000 Division of Monetary Affairs, prepared this article. Percent Thomas C. Allard assisted in developing the database used in this article and is responsible for maintaining Keturn on equity v 15 it. James E. Cypert, Jr., and Alice Memminger pro- — 10 vided research assistance. — 5 The profitability of the U.S. commercial banking industry remained robust in 2000, but returns on equity and on commercial bank assets fell back somewhat from the peaks reached in 1999 (chart 1). Aggregate earnings were depressed in 2000 by a substantial one-time charge at a single large bank and by the ongoing restructuring at one of the nation's largest bank holding companies. Even after accounting for those special factors, however, overall profitability was still down in 2000. The major factors in During the first half of last year, the Federal the decline were a continuation of the narrowing in Reserve raised the intended level of the federal funds net interest margin that dates from the extraordinarily rate three times—twice by 25 basis points and once high levels of the early 1990s, a significant increase by 50 basis points (chart 2). Longer-term interest in loan-loss provisions, and a notable slowing in the rates also moved up over that period, particularly on growth of noninterest income. high-yield debt. By June, however, signs that the economy was cooling from its frenetic pace of the NOTE. Except where otherwise indicated, data in this article are from the quarterly Reports of Condition and Income (Call Reports) for 2. Selected interest rates, 1998-2001 :Q1 insured domestic commercial banks and nondeposit trust companies (hereafter, banks). The data consolidate information from foreign and Percent domestic offices and have been adjusted to take account of mergers (see the appendix). For additional information on the adjustments to the data, see the appendix in William B. English and William R. 14 Nelson, "Profits and Balance Sheet Developments at U.S. Commercial Banks in 1997," Federal Reserve Bulletin, vol. 84 (June 1997), High-yield bonds 12 p. 408. Size categories, based on assets at the start of each quarter, are as follows: the 10 largest banks, large banks (those ranked 11 through Moody's Baa corporate bond 10 100), medium-sized banks (those ranked 101 through 1,000), and small banks. At the start of the fourth quarter of 2000, the approximate 8 asset sizes of the banks in those groups were as follows: the 10 largest banks, more than $84 billion; large banks, $6.94 billion to $82 billion; 6 medium-sized banks, $331 million to $6.93 billion; small banks, less than $331 million. Many of the data series reported here begin in 1985 because the — • Intended federal funds rate 4 Call Reports were significantly revised in 1984. Data for 1984 and earlier years are taken from Federal Deposit Insurance Corporation, Statistics on Banking (FDIC, 1999). The data reported here are also available on the Internet at www.fdic.gov/bank/statistical/statistics/ SOURCE. For intended federal funds rate, Federal Reserve Board index.html. (www.federalreserve.gov/fomc/fundsrate.htm); for mortgage rate and Moody's Data shown in this article may not match data published in earlier bond rates, Federal Reserve Board, Statistical Release H.15, "Selected Interest years because of revisions and corrections. In the tables, components Rates" (www.federalreserve.gov.releases/hl5); for high-yield bond rates, may not sum to totals because of rounding. Merrill Lynch Master n index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

368 Federal Reserve Bulletin • June 2001 previous six quarters prompted market participants to securitizations, which boosted the growth of conlower the odds of further tightening by the Federal sumer loans in bank portfolios. In addition, business Reserve; longer-term interest rates started leveling and real estate lending was robust. The faster growth off or falling, and they generally continued to decline of securities was due to a surge in trading accounts, over the second half of the year. By December, the as runoffs of U.S. Treasury securities damped growth Baa corporate bond rate had fallen more than 1 per- of investment accounts. centage point from a peak of 9.02 percent in May, Following a lull in 1999, bank merger activity and rates on thirty-year fixed-rate mortgages had bounced back a bit in 2000, but the number of deals dropped even more, to 7.13 percent. By contrast, the remained well below the 1994-98 average of about slowing economy and rising default rates led to prob- 575 per year. A spate of bank holding company lems for below-investment-grade business borrowers; consolidations of formerly independent bank subsidiyields on junk bonds rose 296 basis points over the aries helped boost to 474 the number of banks that year, to 14.08 percent. merged, were bought outright, or otherwise changed The growth of both loans and securities on banks' their charters in 2000. Only five banks failed, two books picked up in 2000. The acceleration in loan fewer than in 1999. Meanwhile, 215 new banks were growth resulted mainly from a marked decline in created, down from 255 in 1999; the result was a net 1. Annual rates of growth of balance sheet items, 1991-2000 Percent MEMO: Dec. 2000 Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 (billions of dollars) Assets 1.33 2.19 5.68 8.06 7.55 6.10 9.23 8.25 5.42 8.75 6,170 Interest-earning assets 1.98 2.53 6.56 5.30 7.69 5.68 8.88 8.18 5.98 8.69 5,335 Loans and leases (net) -2.65 -1.04 6.05 9.83 10.53 8.12 5.33 8.90 8.01 9.36 3,711 Commercial and industrial -9.10 ^t.10 .52 9.33 12.26 7.24 12.02 12.94 8.07 8.00 1,042 Real estate 2.73 1.94 6.13 7.90 8.32 5.45 9.30 7.98 12.18 10.74 1,658 Booked in domestic offices 2.90 2.57 6.17 7.64 8.47 5.51 9.52 7.96 12.32 11.01 1,626 One- to four-family residential 7.76 7.53 11.08 10.09 10.05 4.66 9.67 6.35 9.65 9.28 909 Other -1.93 -2.86 .22 4.35 6.24 6.75 9.32 10.30 16.03 13.29 718 Booked in foreign offices -2.35 -17.80 4.67 18.35 2.81 3.18 .34 8.79 6.28 -1.62 32 Consumer -2.55 -1.66 9.06 16.01 9.50 4.90 -2.19 .99 -1.48 8.65 588 Other loans and leases -4.91 -4.24 9.97 5.29 14.23 22.28 -7.91 14.07 6.28 8.33 489 Loan-loss reserves and unearned income -3.78 -4.85 -5.82 -2.21 .25 -.06 -.50 3.49 2.33 7.96 66 Securities 16.23 12.29 12.26 -4.14 .57 .86 8.85 8.39 5.09 6.37 1,219 Investment account 14.42 11.44 8.11 -1.73 -1.58 -1.10 8.66 12.05 6.66 2.87 1,058 U.S. Treasury 32.01 23.95 7.24 -8.46 -19.21 -14.28 -8.86 -25.17 -1.88 -32.72 74 U.S. government agency and corporation obligations 15.88 12.77 9.62 .87 6.43 3.63 14.18 16.98 1.82 3.75 618 Other -2.56 -5.20 6.09 2.49 4.20 1.83 11.21 26.97 20.83 13.42 366 Trading account 38.88 21.01 51.84 -20.46 18.51 14.44 9.97 -13.30 -6.93 37.16 161 Other 2.82 1.57 -7.90 3.25 7.64 -0.90 45.13 2.34 -7.58 9.73 405 Non-interest-earning assets -3.10 -.32 -.86 30.22 6.61 8.88 11.47 8.64 1.93 9.18 835 Liabilities 1.01 1.35 5.12 8.31 7.17 5.96 9.12 8.12 5.55 8.59 5,648 Core deposits 5.25 5.09 1.49 -.17 3.96 4.13 4.52 7.05 .20 7.53 2,876 Transaction deposits 3.38 14.62 5.47 -.32 -3.09 -3.44 -4.55 -1.41 -8.99 -1.23 671 Savings and small time deposits 6.24 .18 -.85 -.07 8.37 8.35 9.03 10.73 3.77 10.51 2,206 Managed liabilities1 -6.19 -6.07 12.30 17.58 10.44 9.66 13.83 9.60 15.50 8.80 2,369 Deposits booked in foreign offices 3.81 -5.85 15.06 30.89 5.13 4.27 11.13 8.71 14.60 7.84 707 Large time -19.73 -26.20 -9.21 8.72 19.61 21.17 20.14 9.10 14.18 19.39 564 Subordinated notes and debentures 4.69 34.90 10.82 9.23 6.61 17.74 21.05 17.00 5.07 13.98 86 Other managed liabilities -1.39 6.94 22.18 12.91 11.24 8.21 12.23 9.87 17.68 3.91 1,012 Other -4.18 -1.02 15.30 79.17 20.46 2.60 23.79 8.54 -6.38 15.45 403 Equity capital 5.98 13.75 12.58 5.24 12.00 7.73 10.45 9.61 3.92 10.51 522 MEMO Commercial real estate loans2 -2.58 -4.03 -.60 4.01 6.34 7.67 10.12 11.37 15.39 12.14 717 Mortgage-backed securities 19.27 10.37 9.66 -3.12 .67 2.06 14.15 22.09 -3.34 3.29 464 NOTE. Data are from year-end to year-end. 2. Measured as the sum of construction and land development loans secured 1. Measured as the sum of deposits in foreign offices, large time deposits in by real estate; real estate loans secured by nonfarm nonresidential properties; domestic offices, federal funds purchased and securities sold under repurchase real estate loans secured by multifamily residential properties; and loans to agreements, demand notes issued to the U.S. Treasury, subordinated notes and finance commercial real estate, construction, and land development activities debentures, and other borrowed money. not secured by real estate. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 369 Number of commercial banks and share of assets the second highest pace since 1985. A vigorous at the largest banks, 1984-2000 expansion of total loans and leases reflected strong growth in business loans, continued rapid expansion in residential and commercial real estate lending, and Number a sharp rebound in the growth of consumer loans on banks' books. Despite a record contraction in holdings of U.S. Treasury securities that in part reflected a reduced supply of such instruments, overall growth of securities picked up, especially for those held in trading accounts. Business lending was supported by merger-related financing and by the rapid pace of business outlays Share of assets on plant and equipment, which both continued at a vigorous pace well into 2000 despite the rise in Largest 100 market interest rates over much of 1999. During the second half of 2000, however, merger activity and Largest 10 business fixed investment fell off a great deal. Moreover, mounting concerns about a more uncertain and less favorable economic outlook led banks to tighten 1984 1988 1992 1996 2000 lending standards and terms. Thus squeezed by a falloff in demand and a crimp in supply, the growth reduction of 264 in the number of commercial banks of commercial and industrial (C&I) and commercial operating in the United States, to 8,356 as of Decemreal estate loans had slowed appreciably by the end of ber 31, 2000 (chart 3, top panel).1 the year. Mergers enlarged the share of bank assets held by Declining mortgage rates over much of 2000 the 100 largest commercial banks, from 71 percent in maintained the growth of residential mortgages at 1999 to 73 percent in 2000 (chart 3, bottom panel). about the robust pace of 1999. Generally strong con- The combination of Fleet Bank and BankBoston cresumer spending also supported lending to houseated the nation's fourth largest commercial bank, and holds. However, a sharp rebound in consumer loans as a result, the share of assets held by the 10 largest on banks' books came mainly from a slowdown in banks increased more than 2 percentage points, to securitizations. 38 percent. Adjusted to reflect the effects of mergers, Core deposits accelerated smartly in 2000 after a however, assets at the 10 largest banks grew only virtual cessation of inflows during 1999. The pickup 4.5 percent, about half the rate of growth of all may have reflected an increased demand for safe and commercial bank assets. The number of mergers between bank holding companies (BHCs) declined from 211 in 1999 to 179 Financing gap at nonfarm nonfinancial corporations, in 2000, the lowest level of merger activity since 1990-2000 1992. The number of BHCs declined a net of only 23 Billions of dollars over the year, to 5,931. The share of banking and nonbanking assets held by the top 50 BHCs remained at just over 76 percent for the third consecutive year, — /— 200 even though the share was bolstered by the December 31 union of J.P. Morgan and Chase Manhattan. — — 150 BALANCE SHEET DEVELOPMENTS — — 100 The growth of total bank assets accelerated from 5.4 percent in 1999 to 8.8 percent in 2000 (table 1), — 50 1 1 1 1 1 1 1 1 1 1 1 1 1. This count of commercial banks, derived from Call Report data, 1990 1992 1994 1996 1998 2000 may vary slightly from measures, such as those in the Federal NOTE. The data are four-quarter moving averages. The financing gap is the Reserve's Annual Report that are based on the definition of a bank difference between capital expenditures and internally generated funds. given in the Bank Holding Company Act and implemented in the SOURCE. Federal Reserve Board, Statistical Release Z.l, "Flow of Funds Federal Reserve's Regulation Y. Accounts of the United States," table L. 101 (www.federalreserve.gov/releases/zl). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

370 Federal Reserve Bulletin • June 2001 liquid assets in the face of declining and sometimes a sharp drop in C&I loan demand, as perceived by volatile equity markets. lenders responding to the Federal Reserve's Senior Loan Officer Opinion Survey on Bank Lending Practices (informally, the bank lending practices survey, Loans to Businesses or BLPS), which covers about sixty large domestic banks and twenty-four U.S. branches and agencies of In the first half of 2000, C&I loans expanded at an foreign banks (chart 5, top panel). annual rate of 12.9 percent. This borrowing activity On the supply side, commercial banks significantly was supported by a rise in spending on capital goods tightened their business lending standards, according that exceeded the increase in internally generated to BLPS respondents. In the third quarter of 2000, funds (chart 4). During the second half, however, the net percentage of surveyed domestic banks that business fixed investment advanced little, and the reported tightening standards and terms on C&I loans need for merger-related financing fell as the total to large and medium-sized firms rose to more than dollar volume of completed mergers and acquisitions 30 percent, which was comparable to that reported among large, domestic, nonfinancial corporations during the financial turmoil in the second half of dropped more than half. As a result, C&I loans 1998 (chart 5, middle panel). Conditions apparently expanded at only a 2.9 percent annual rate during that tightened further in the final quarter of the year, when period. The reduced need for credit was reflected in more than 40 percent of domestic institutions, on net, indicated that they raised standards on C&I loans to large and medium-sized businesses. Similarly, the net percentage of banks that widened loan spreads over 5. C&I loan demand and terms of selected commercial their cost of funds and the net percentage of banks banks, large and medium-sized borrowers, 1998-2001 :Q 1 that raised premiums charged on riskier loans increased dramatically in the later part of 2000 (chart 5, bottom panel). Apart from increased uncer- Net percentage of banks reporting increases in demand tainty and a less favorable economic outlook, BLPS respondents most often cited a reduced tolerance for risk as reasons for tightening lending standards and terms. The evidence of a shift to more stringent business credit standards was corroborated by information from the Federal Reserve's quarterly Survey of Terms Net percentage that tightened standards 6. Average spread between rates on new C&I loans and the intended federal funds rate, 1998-2001 :Q1 Basis points Hi Net percentage that increased spreads over cost of funds or increased premiums for riskier loans Loans not made under commitment NOTE. Net percentage is the percentage of banks reporting an increase in demand, a tightening of standards, or an increase in spreads or premiums less, in each case, the percentage reporting the opposite. The definition for firm size suggested for, and generally used by, survey respondents is that medium-sized firms are those with sales of between $50 million and $250 million. NOTE. The data are weighted by loan volume. Data are adjusted for composi- Data was collected on risk premiums beginning in 1998:Q4. tional effects such as changes in the underlying distribution of maturity, size, SOURCE. Federal Reserve Board, "Senior Loan Officer Opinion Survey on and riskiness of loans over time. Bank Lending Practices." SOURCE. Federal Reserve Board, "Survey of Terms of Business Lending." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 371 of Business Lending (STBL).2 The average spread of in the share of lower-risk loans made under previous rates charged on new C&I loans over the intended commitments suggested that domestic commercial federal funds rate (adjusted for changes in the compo- banks continued to extend credit to their better-rated sition of loan originations) remained in a narrow, customers. As noted below, in the section on profitelevated range during all of last year (chart 6). The ability, such shifts apparently held down interest overall average spread, however, encompasses loans earnings on business loans last year. extended under previous commitments, and such The growth of commercial real estate loans slowed loans were less likely to have been affected by the from 15.4 percent in 1999 to a still impressive concerns about the pricing of credit risk that intensi- 12.1 percent in 2000. The within-year pattern of this fied during the latter part of the year. Indeed, in the lending resembled that of C&I lending. Commercial STBL, the average spread of rates charged on new real estate loans expanded at an average annual rate C&I loan extensions that were not made under pre- of more than 15 percent for the first half of 2000 as vious commitments (adjusted for changes in the com- the growth of investment in nonresidential structures position of loan originations) trended up notably last accelerated notably. All categories of commercial year (chart 6). real estate loans—multifamily housing, construction Credit flow patterns from the STBL also suggested and land development, and nonfarm, nonresidential tighter financial conditions for business borrowers, real estate—followed the pattern. Buoyed by a strong particularly for higher-risk loans not made under housing market, multifamily housing loans advanced commitment; such loans fell significantly in 2000, most rapidly, maintaining the 23 percent rate of bottoming out at about 6 percent as a share of growth posted in 1999. Construction and land develtotal C&I loan originations reported in the STBL opment loans grew 21 percent, on average, in the first (chart 7).3 By contrast, a marked rise late in the year half of 2000, about the same pace as in 1999, and nonfarm, nonresidential real estate loans accelerated from about 12 percent in 1999 to 14 percent over the 2. The STBL data are based on a representative sample of up to same period. 348 insured domestic commercial banks and up to 50 foreign-related In the second half of 2000, however, as the pace of banking institutions. The sample data are used to estimate the terms of loans extended during the survey period at all domestic banks nonresidential investment moderated and as banks and at all foreign-related institutions. The data are available at started to tighten standards, the average growth of www.federalreserve.gov/releases/E2/. commercial real estate loans slowed to about an 3. Loans in the STBL receive risk ratings ranging from 1 to 5, which correspond, respectively, to minimal risk, low risk, moderate 8 percent annual rate (chart 8). The most abrupt risk, acceptable risk, and classified. For more information on loan slowdown was in multifamily housing, where loan rating categories in the STBL, see Thomas F. Brady, William B. growth dropped more than 20 percentage points to English, and William R. Nelson, "Recent Changes to the Federal Reserve's Survey of Terms of Business Lending." Federal Reserve about 2.5 percent. The deceleration in the other two Bulletin, vol. 84 (August 1998), p. 604-15. categories was considerably less pronounced. 7. Lower-risk and higher-risk C&I loans as a share 8. Net percentage of selected banks that tightened standards of all C&I loans, 1998-2001:Q1 for commercial real estate loans, 1990-2001 :Q1 NOTE. Lower-risk loans are rated 1 or 2; those shown were made under NOTE. Net percentage is the percentage of banks that reported a tightening of previous commitment. Higher-risk loans are rated from 3 to 5; those shown standards less the percentage that reported an easing. were not made under commitment. For definitions of risk ratings, see text note 3. SOURCE. Federal Reserve Board, "Senior Loan Officer Opinion Survey on SOURCE. Federal Reserve Board, "Survey of Terms of Business Lending." Bank Lending Practices." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

372 Federal Reserve Bulletin • June 2001 9. Securitized share of outstanding consumer loans (chart 9). Despite the relatively strong growth, conoriginated by banks, 1988-2000 sumer loans, as a share of total loans and leases, on banks' books fell to a new low of about 15 percent by — the end of last year (chart 10). — 40 For the first three quarters of 2000, commercial banks appeared to be willing suppliers of consumer credit, according to BLPS respondents. Negligible net fractions of banks reported tightening standards for the approval of consumer loan applications other than for credit cards, and the net percentage of institutions that increased spreads of loan rates over the cost of funds on these types of loans also remained small (chart 11). During the year's final quarter, however, lenders became more cautious, with larger net frac- NOTE. The data are seasonally adjusted. SOURCE. Federal Reserve Board, Statistical Releases H.8, "Assets and Lia- tions of banks reporting that they had tightened stanbilities of Commercial Banks in the United States," and G.19, "Consumer dards and widened spreads. The final survey of the Credit." year also revealed that, on net, banks had tightened standards and widened spreads on credit card loans Loans to Households (chart 12). Real estate loans for one- to four-family homes The stock of consumer loans held by banks registered expanded 9.3 percent in 2000, down a touch from its biggest increase since 1995, rising 8.7 percent. A 1999. Most of the growth was in the first half, when significant part of last year's advance was due to a the robust housing market appeared to be little sharp slowdown in the rate of securitization of these affected by rising mortgage rates; during this period a loans. Including securitized loans, consumer loans substantial share of households turned to adjustableoriginated by domestic commercial banks expanded rate mortgages (ARMs) (chart 13). Indeed, the share 7.5'percent in 2000, up from 4.8 percent in 1999, a of mortgage lenders' originations that were attributmove supported by resilient consumer spending in able to ARMs remained near its recent peak of the face of a marked slowing in economic growth. 30 percent throughout the first half. By the end of The decline in the proportion of consumer loans the fourth quarter, however, the higher level of ARM that are securitized—the share fell in the first quarter rates and of other shorter-term interest rates, comof 2000 for the first time since 1994 and continued to bined with falling rates on fixed-rate mortgages, edge lower steadily throughout the year—suggests that the cost of funding these loans on the balance 11. Net percentage of selected commercial banks that sheet declined relative to the cost of securitizing them tightened standards and terms on consumer loans other than credit card loans, 1997-2001 :Q1 10. Consumer loans as a share of total loans and leases, Percent 1988-2000 ^ ^H HFS 25 Percent — — 20 — — 18 . — 16 I NOTE. Net percentage is the percentage of banks that reported a tightening of 1 I 1 1 1 1 1 1 1 1 1 1 1 1 standards or terms less the percentage that reported an easing. Tightening or easing of terms represented by increase or decrease respectively in spread 1988 1990 1992 1994 1996 1998 2000 of loan yield over bank's cost of funds. SOURCE. Federal Reserve Board, Statistical Release Z.l, "Flow of Funds SOURCE. Federal Reserve Board, "Senior Loan Officer Opinion Survey on Accounts of the United States," table L. 101. Bank Lending Practices." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 373 12. Net percentage of selected commercial banks that -rate mortgages (chart 14). In addition, households tightened standards and terms on credit card loans, responded to declining equity prices and concerns 1997-2001 :Q1 about the future course of the economy by scaling back their purchases of consumer durable goods in the fourth quarter. The ratio of outstanding home equity loans to total commitments remained stable at about 40 percent in 2000. Other Loans and Leases Other loans and leases grew 8.3 percent in 2000, up 2 percentage points from the pace of the previous year. However, the lease component, which had been expanding at an average rate of about 25 percent since 1994, decelerated to 9.3 percent in 2000. 1997 1998 1999 2000 The increase in lease financing since the mid- NOTE. See notes to chart 11. 1990s has resulted largely from the rapid expansion of outlays on equipment that businesses typically drove down the share of mortgage lenders' origina- lease, according to BLPS respondents. A shift of tions attributable to ARMs, to below 20 percent. leasing activities from nonbank affiliates to banks Because ARM cash flows match those of banks' also contributed to the growth of these assets at liabilities better than do those of fixed-rate mort- domestic banks. Banks reported that more than gages, the shift away from ARMs likely contributed 60 percent of their leases have been made to nonto increased securitization of household real estate financial corporations and that such leases have been loans later in the year; the share of such loans on an important source of growth in this component over bank balance sheets shrank 1.6 percent in the last the past several years. The slowdown in 2000, which quarter of 2000. was concentrated in the second half of the year, Home equity loans jumped 24.6 percent in 2000, reflected a notable slackening in the growth of outthe largest increase since 1989 and a significant accel- lays on equipment that businesses typically lease. eration from the 5.9 percent growth in 1999. The Most of the remaining leases held by banks are to pickup actually began in the final two quarters of consumers, primarily for automobiles. 1999 and continued through the third quarter of Loans to depository institutions jumped 22.4 per- 2000. Growth slowed appreciably in the fourth quar- cent in 2000, up substantially from the sluggish 2 perter, in part because of a pickup in home mortgage cent growth in 1999. The surge was concentrated refinancing, spurred by the drop in the rate on fixed- in loans made to depository institutions other than 13. Share of home mortgages originated 14. Index of home mortgage refinancing activity, with adjustable rates, 1991-2000 1991-2000 Percent January 4, 1991 = 1 1992 1994 1996 1998 2000 SOURCE. Federal Home Loan Bank Board. SOURCE. Mortgage Bankers Association. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

374 Federal Reserve Bulletin • June 2001 banks, although the growth of loans to banks—both deposit accounts at two affiliated banks. The two in the United States and abroad—remained strong affiliates appear to have used the funds to acquire last year. In part, the growth of loans to depository private securities and to expand their lending to other institutions last year may have reflected a significant banking institutions. slowdown in advances from the Federal Home Loan Bank System, which had grown rapidly during the 1998-99 period. Liabilities After changing little in 1999, core deposits advanced Securities 7.5 percent in 2000, the fastest rate of increase since 1990. As noted, the growth of core deposits Banks' holdings of securities in combined investment during the second half of 2000 was boosted by and trading accounts expanded 6.4 percent in 2000, Merrill Lynch's money fund shifts; abstracting up from 5.1 percent in 1999. The pickup was entirely from this special factor, core deposits grew 6.2 perin trading accounts, where holdings jumped 37.2 per- cent last year. In addition, a good portion of the cent after having contracted in 1998 and 1999. increase in core deposits was in the final quarter Trading account assets surged, in domestic as well of the year, when transaction deposits surged as in foreign trading operations. As a result, the share 31.9 percent (annual rate). The jump likely reflected of assets held in trading accounts moved up in 2000, declining market interest rates, falling and often volato 2.6 percent, after having fallen to the lowest level tile equity prices, and increased economic uncerin eight years at the end of 1999. Probably because tainty, which apparently made liquid bank assets of the deteriorating environment for stocks, however, more attractive. the acquisition of equity investments in trading Although bank funding needs picked up last year, accounts slowed greatly—these investments had been the stronger flows into core deposits allowed banks to expanding rapidly in recent years but are still a tiny rely relatively less on managed liabilities. Managed fraction of total assets. liabilities grew 8.8 percent in 2000, down consider- Securities held in investment accounts grew only ably from the 15.5 percent pace in 1999. Foreign 2.9 percent, down markedly from the 6.7 percent deposits slowed markedly, with most of the deceleadvance in 1999. Most of the slowdown was during ration coming in the second half of the year. The the first half of the year, when, as noted, loan growth other-managed-liabilities category, which had been was strongest. In the second half, falling interest rates growing at a rapid pace over the past several years caused the value of investment account securities to and accounts for about 18 percent of total liabilities, rise because 87 percent of these assets were classified also slowed appreciably last year, to about 4 percent. as available for sale and were therefore carried at Large time deposits, in contrast, expanded a hefty market value. For the year as a whole, the difference 19.4 percent in 2000, with a sharp acceleration during between the market and book values of securities the final quarter. held in investment accounts rose from a loss of more than $18 billion to a loss of only $5.5 billion. Abstracting from the effect of this reevaluation, Capital investment account securities grew only about 1.5 percent last year. Equity capital at banks rose 10.5 percent in 2000 The growth of securities in investment accounts after eking out an advance of less than 4 percent in was held down by the largest drop on record in bank 1999. The rebound was larger than that for assets, holdings of U.S Treasury securities, 32.7 percent. and as a result, the share of assets funded by equity The runoff was likely caused by soaring federal bud- capital moved up 13 basis points, to 8.5 percent. get surpluses, which lower the supply of these securi- Commercial banks added slightly more than $17 bilties, driving up their prices and thus reducing their lion to retained earnings in 2000, about $2 billion less yields in relation to other securities. than in 1999, as dividend payments were about un- Holdings of other securities in investment accounts changed even as net income slipped. They also added grew 13.4 percent in 2000, down from the previous about $18 billion to paid-in capital, the other source two years. This category, however, was boosted sig- of equity capital. Approximately half of the $18 bilnificantly in the second half of the year by ongoing lion was attributable to new capital, a large portion of shifts of funds by Merrill Lynch from cash manage- which represented capital injections from parent ment accounts held at its brokerages to money market holding companies. The remainder came primarily Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 375 from the amount by which equity issued to fund noted, the latter measure was boosted last year by mergers exceeded the value of the shares retired in unrealized gains on securities held in investment those mergers. Equity capital was also boosted by a accounts; such gains and losses are excluded from swing, on an end-of-period basis, from a $13 billion regulatory capital. loss in net unrealized gains on available-for-sale The ratio of tier 1 capital to risk-weighted assets securities in 1999 to a $1 billion gain last year. edged down 8 basis points, to 9.4 percent, as risk- The percentage of assets held by well-capitalized weighted assets expanded 8.7 percent, up markedly banks inched up for the second consecutive year, to from 6 percent in 1999 (chart 16). A smaller drop in almost 98 percent (chart 15, top panel). However, the the ratio of total capital to risk-weighted assets— average margin by which domestic commercial banks 3 basis points, to just over 12 percent—reflected a remained well capitalized narrowed slightly after 10.6 percent jump in tier 2 capital. The leverage ratio having firmed a bit in 1999 (chart 15, bottom panel).4 fell nearly 10 basis points, as the growth of average Tier 1 capital expanded 7.8 percent last year, a rate tangible assets more than doubled.5 substantially below the increase in equity capital. As TRENDS IN PROFITABILITY 4. The average margin by which banks remained well capitalized was computed as follows. First, among the leverage, tier 1, and total capital ratios of each well-capitalized bank, the institution's tightest Total net income of commercial banks declined capital ratio is defined as the one closest to the regulatory standard 2 percent, to $69.8 billion, in 2000. After a strong for being well capitalized. The bank's margin is then defined as the first quarter, in which profits advanced 8.5 percent percentage-point difference between its tightest capital ratio and the compared with the first quarter of 1999, profits fell corresponding regulatory standard. The average margin among all well-capitalized banks—the measure referred to in the text—is the below year-earlier levels for the rest of the year. In weighted average of all the individual margins, with the weights being particular, profits dropped considerably in the second each bank's share of the total assets of well-capitalized banks. 15. Assets and regulatory capital at well-capitalized banks, 5. The tier 1 ratio is the ratio of tier 1 capital to risk-weighted 1994-2000 assets, and the total ratio is the ratio of the sum of tier 1 and tier 2 capital to risk-weighted assets. Tier 1 capital consists primarily of Percent common equity (excluding intangible assets such as goodwill and Share of industry assets excluding net unrealized gains on investment account securities classi- — at well-capitalized banks — 100 fied as available for sale) and certain perpetual preferred stock. Tier 2 capital consists primarily of subordinated debt, preferred stock not included in tier 1 capital, and loan-loss reserves. Risk-weighted assets are calculated by multiplying the amount of assets and the creditequivalent amount of off-balance-sheet items (an estimate of the potential credit exposure posed by the item) by the risk weight for each category. The risk weights rise from zero to one as the credit risk of the assets increases. The leverage ratio is the ratio of tier 1 capital to average tangible assets. Tangible assets are equal to total assets less assets excluded from common equity in the calculation of tier 1 capital. 16. Regulatory capital ratios, 1990-2000 Percentage points Percent Average margin by which banks were well capitalized — Total (tier 1 + tier 2) ratio — 14 12 - Tier 1 ratio — 10 Leverage ratio — 8 1994 19% 1998 2000 i —r" 1 1 I 1 1 1 1 1 1 1990 1992 1994 1996 1998 2000 NOTE. For the definition of well capitalized and of the margin by which banks remain well capitalized, see text note 4. NOTE. For the definition of capital ratios, see text note 5. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

376 Federal Reserve Bulletin • June 2001 2. Selected income and expense items as a proportion of assets, 1992-2000 Percent Item 1992 1993 1994 1995 1996 1997 1998 1999 2000 Net interest income 3.89 3.90 3.78 3.72 3.73 3.67 3.52 3.52 3.43 Noninterest income 1.95 2.13 2.00 2.02 2.18 2.23 2.40 2.65 2.57 Noninterest expense 3.86 3.94 3.75 3.64 3.71 3.61 3.76 3.76 3.65 Loss provisioning .78 .47 .28 .30 .37 .41 .41 .39 .49 Realized gains on investment account securities .11 .09 -.01 .01 .03 .04 .06 .00 -.04 Income before taxes and extraordinary items 1.32 1.70 1.73 1.81 1.85 1.93 1.81 2.03 1.81 Taxes and extraordinary items .41 .50 .58 .63 .65 .67 .61 .72 .63 Net income (return on assets) .91 1.20 1.15 1.18 1.20 1.25 1.19 1.31 1.18 Dividends .41 .62 .73 .75 .90 .90 .80 .96 .89 Retained income .49 .58 .42 .43 .30 .35 .39 .35 .29 quarter, when First Union Bank and several banks in from 1.7 percent in 1999 and the largest share since the Bank One holding company booked substantial 1992, when banks holding more than 11 percent of restructuring charges. After having peaked in 1999, the industry's assets lost money. About half of last industrywide return on assets fell 13 basis points, to year's increase in assets of banks losing money was 1.18 percent (table 2). Return on equity fell 139 basis at several large commercial bank subsidiaries of a points, to 14.0 percent. A sharp increase in loan-loss single large bank holding company. provisioning, a slowdown in the growth of noninter- In 1999, the small-bank size group was the only est income, and an increase in the cost of funds that one to show a decline in profitability; in 2000, this exceeded the rise in earning asset yields all contrib- group was alone in posting profitability gains uted to the decline in profitability last year. (chart 17). The difference between the two years Despite reduced profitability, dividends remained reflects loss provisioning, which was concentrated at fairly stable, growing about 1 percent. These pay- the larger banks last year. The largest 1,000 banks ments, made primarily to parent holding companies, suffered from a 40 percent increase in loan-loss providecreased only 7 basis points as a percentage of sions, whereas the smaller banks increased provisionassets after having risen by 16 basis points in 1999. ing only 10 percent. The ten largest banks also expe- Partly as a result, retained income fell to 0.29 percent rienced a big increase in noninterest expense, more of assets, the lowest level in a decade. than 20 percent of which was the result of the afore- The number of banks that had negative net income mentioned restructuring charges at First Union; at declined to 605 in 2000 from 658 the previous year, small banks this item declined. reversing an upward trend that had begun in 1995. Despite some earnings pressure, bank holding On the other hand, banks that lost money held company stocks rose in 2000, significantly outper- 4.5 percent of industry assets last year, a sharp rise forming the S&P 500, primarily because of gains registered during the second half of the year (chart 18). The Dow Jones bank index advanced 14 percent for the year, boosted substantially by the 17. Return on equity, by size of bank, 1985-2000 performance of some of the largest regional bank holding companies. By affecting investors' percep- Medium tions, falling market interest rates likely offset moderate declines in actual profitability and increasing concerns about asset quality. Interest Income and Expense Although market interest rates fell in the latter part of 2000, in many cases to below the levels prevailing as the year began, they were higher on average for the year than in 1999. Gross interest income rose 46 basis points as a percentage of assets, but gross interest expense increased more, 54 basis points. As a result, NOTE. For definition of bank size, see text note 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 377 18. Indexes of bank holding company stock prices and the bank alternatives available to both lenders and bor- S&P 500, 2000-March 30, 2001 rows since the early 1990s. However, somewhat less than half of the decline in the net interest margin is estimated to have come from a shift of banking system assets toward larger banks, which tend to have narrower interest margins but higher returns in other dimensions. The tightening of standards and terms on business loans as reported in the BLPS (and discussed above in the section on balance sheet developments) likely had offsetting effects on the net interest margin. On one hand, the reported widening of spreads of loan rates over the cost of funds clearly would act to widen margins. On the other hand, more stringent standards and reduced appetite for risk likely 2000 increased the share of lending to lower-risk, lower- NOTE. Regional banks consist of 22 bank holding companies as defined by return customers, a shift that would tend to narrow Standard and Poor's. The Dow Jones bank index consists of 343 bank holding spreads. As noted above, the evidence from the STBL companies. SOURCE. Standard and Poor's and Dow Jones. indicated that the average spread over the intended federal funds rate did not increase, on balance, in 2000. However, those spreads remained rather high, the industrywide net interest margin—the ratio of net and the percentage of new loans that were made interest income to average interest-earning assets— under commitment increased, while the share of fell 11 basis points, to 3.93 percent (chart 19, top higher-risk loan originations decreased. Call Report panel). After trending down throughout much of the data reveal that for C&I loans held by banks in 2000, past decade, the net interest margin has returned to the difference between the average effective interest the levels observed in the late 1980s. The elevated rate they earned and the average quarterly federal level of the net interest margin in the early 1990s funds rate declined somewhat. reflected diminished competition for deposit funds On the household side, 30 percent of banks, on net, and a desire to curb asset growth through tight lendreported in the May 2000 BLPS that over the past ing terms to improve capital positions. In part, the two years they had lowered the spread of mortgage subsequent decline reflects increased competition loan rates over their cost of funds, and 20 percent, on among banks as well as the greater number of nonnet, indicated that they had reduced their fees on mortgage loan originations. According to Call Report data for all real estate loans held by banks, the spread 19. Net interest margin, by size of bank, 1985-2000 of the average rate of return over the seven-year Percent constant maturity Treasury rate declined about 14 basis points last year. Part of the decline likely reflected the rise from from 1999 to 2000 in the share of mortgages originated with adjustable rates. The average effective spread on consumer loans over the average quarterly prime rate also slipped in 2000. The industrywide decline in net interest margin masks important differences, however, across different bank sizes (chart 19, bottom panel). The decrease in net interest margin was concentrated at the largest 100 banks, where it fell 15 basis points, to 3.71 percent. In contrast, at banks outside the top 100, the net Medium / Large interest margin increased 2 basis points, to 4.45 percent. The divergent movements reflected the rising average cost of managed liabilities, which fund a significantly higher percentage of assets at large 1985 1988 1991 1994 1997 2000 banks, relative to the average cost of core deposits. NOTE. Net interest margin is net interest income divided by average interest- Furthermore, the average effective interest rate paid earning assets. For definition of bank size, see text note 1. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

378 Federal Reserve Bulletin • June 2001 20. Noninterest income and its components perception that they had become relatively more as a share of total revenue, 1985-2000 risky. Noninterest Income and Expense The ratio of noninterest income to total revenue slipped to 42.9 percent in 2000, the first decline in that ratio since 1994 (chart 20, top panel). "Other nonfee income"—which includes income from professional services, such as those provided for holding company affiliates; gains or losses on the sale of assets other than securities; and income from venture capital activities, including those at banks' small business investment subsidiaries—accounted for the entire decline (chart 20, middle panel). Losses reported by two large banks and several others on sales of assets that had been leased accounted for almost half of the decrease in this subcomponent. Most of the losses likely resulted from forecasts of auto lease residuals that were too optimistic. "Other nonfee income" also may have been depressed last year by declines in the market value of venture capital investments, especially in technology companies, over the final three quarters.6 Trading income increased as a percentage of revenue for the second consecutive year. Revenue from trading in interest rate contracts increased 28 percent NOTE. Nondeposit fees and "other nonfee" were first included in the March in 2000; revenue from foreign exchange contracts 1991 Call Report. advanced about 6 percent after growing only 2 percent in 1999 (table 3). Most of the 50 percent rise in revenue from trading in equities and equity futures on large time deposits increased at large banks by contracts was booked during the first and second more than it did at small banks, and the spreads (over quarters; by the fourth quarter, such revenue was comparable-maturity Treasury debt) on the subordimore than one-third below its year-earlier level. Revenated debt issues of several large bank holding comnue from trading in contracts for commodity futures panies also rose. Perhaps contributing to the higher funding costs at large banks relative to small banks was the significantly larger increase in delinquency 6. Bank holding companies conduct most of their venture capital rates at large banks, which may have created the investment, however, through nonbank subsidiaries. 3. Trading revenue at all U.S. banks, by type of exposure, 1995-2000 Millions of dollars Equity, security, Commodity and Total Interest rate Foreign exchange and index other exposures YYeeaarr Millions of Percent Millions of Percent Millions of Percent Millions of Percent Millions of Percent dollars change dollars change dollars change dollars change dollars change 1995 6,337 1.4 3,012 n.a. 2,491 n.a. 519 n.a. 116 n.a. 1996 7,523 18.7 4,112 36.5 2,689 8.0 391 -24.7 334 187.9 1997 8,019 6.6 3,995 -2.9 3,951 46.9 49 -87.5 23 -93.1 1998 7,705 -3.9 2,500 -37.4 4,714 19.3 452 822.5 39 69.6 1999 10,478 36.0 3,840 53.6 4,813 2.1 1,225 171.0 602 1,443.6 2000 12,447 18.8 4,910 27.9 5,090 5.8 1,934 57.9 514 -14.6 n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 379 and options declined. Fiduciary income, primarily several large banks that had completed mergers in fees received for services rendered by bank trust recent years. departments, resumed its upward trend as a share of revenue after dipping in 1999. Nondeposit fee income—which consists of fees Loan Performance and Loss Provisioning earned on credit cards, mortgage servicing and refinancing, the sale and servicing of mutual funds The slowdown in economic growth during the second and annuities, ATM surcharges, and securitized loans half of 2000 brought renewed attention to credit and securities lending—continued to increase as a quality, especially in the business sector, where delinshare of total revenue (chart 20, bottom). Although quency rates and net charge-off rates increased subno data are available on most of the individual ele- stantially. On the household side, delinquency rates ments of this income category, fees from the sale and also increased, on balance, last year. While delinservicing of mutual funds grew 11 percent in 2000. quency rates on residential mortgages remained at a The gain also likely reflects, in part, the continued relatively low level, those on credit card and other rise in securities lent by the trust departments consumer loans returned to the elevated levels of commercial banks (chart 21). Deposit fees also reached in the mid-1990s. increased as a percentage of revenue after having declined fairly continuously throughout the 1990s; the turnaround perhaps reflected some results from C&I Loans banks' reported efforts to increase the profitability of transactions accounts. Delinquencies on C&I loans, which had begun to Relative to 1999, noninterest expense remained move up at large domestic banks in 1998, rose further about unchanged as a percentage of total revenue, but in 2000 (chart 23, top left panel). The delinquency abstracting from the substantial restructuring charges at First Union, the ratio declined significantly (chart 22, top panel). Continued consolidation pre- 22. Noninterest expense as a proportion of revenue, sumably helped to sustain last year's extension of the 1985-2000 decade-long decline in the cost of buildings and premises as a percentage of total revenue. But noninterest expense was also held in check by a marked Total decline in the growth rate of employee compensation, — 70 from 8 percent in 1999 to just over 3 percent in 2000 (chart 22, bottom panel). The decline in compensation reflected a slowing in the growth rate of the average salary and benefits per employee, from 5 percent in 1999 to less than 2 percent in 2000, and only a slight increase in the number of employees. The slow growth in the number of employees was partly attributable to small declines in employment last year at Components 21. Off-balance-sheet securities lent, 1989-2000 — 35 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

380 Federal Reserve Bulletin • June 2001 rate on business loans at small banks, which had ment, particularly the less restrictive loan covenants been relatively stable over the past several years, also and lower collateral requirements, that prevailed increased in 2000. Although the delinquency rates before the market turmoil in the second half of 1998. have risen from exceedingly low levels, about half of Despite the rise in charge-offs, the fraction of C&I the banks participating in the November 2000 BLPS loans that are classified as "nonaccrual" has also indicated that they had been surprised by the extent risen, reaching 1.52 percent in 2000; many nonof deterioration in the credit quality of their C&I loan accrual loans are later charged off. The ratio of net portfolio since the middle of 1998. During the first charge-offs to average delinquencies rose for the half of last year, respondents often noted problems sixth consecutive year, to 34 percent, a level higher related to specific industries, such as health care and than it was during the recession of 1990-91. companies exposed to asbestos-related litigation; but by year-end, problem loans reportedly were spread over a wider variety of industries. Commercial Real Estate Loans Net charge-off rates on C&I loans—which had begun increasing more than a year before delin- In contrast to C&I loans, commercial real estate loans quency rates—continued to move up in 2000, mark- continued to perform well, with delinquency rates edly so in the fourth quarter (chart 23, bottom left remaining below 2 percent and net charge-off rates panel). In part, net charge-offs increased because still almost negligible (chart 23, top and bottom left recovery rates—defined as gross recoveries divided panels). These loans benefited from low vacancy by total business loans—declined to decade-low rates for commercial office space and rising commerlevels in 2000. The sustained decline in the C&I cial rents even as economic growth slowed in the recovery rate over the past several years probably second half. Nevertheless, many of the largest banks arises from the relatively easier bank lending environ- in this sector apparently have not forgotten the heavy 23. Delinquency and charge-off rates for loans to businesses and households, by type of loan, 1991-2000 Delinquencies, businesses Delinquencies, households 12 Commercial real estate Residential real estate _L_ L J L Net charge-offs, businesses Net charge-offs, households J L J L 1992 1994 1996 1998 2000 1992 1994 1996 1998 2000 NOTE. The data are seasonally adjusted. Delinquent loans are loans that are loans divided by the end-of-period level of outstanding loans. The net charge-off not accruing interest and those that are accruing interest but are more than thirty rate is the annualized amount of charge-offs over the period, net of recoveries, days past due. The delinquency rate is the end-of-period level of delinquent divided by the average level of outstanding loans over the period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 381 losses suffered in the commercial real estate market consumer loans, a significantly higher fraction than during the early 1990s. On net, about 40 percent of in previous surveys. banks responding to the BLPS indicated that they had The delinquency rate on residential mortgage loans tightened standards on commercial real estate loans crept up and then rose sharply in the fourth quarter. at some point in 2000. Also, in the January 2001 A fairly recent trend toward relatively easier lending survey, 49 percent of domestic banks, on net, indi- conditions in this market may have added to the cated that they had increased spreads of loan rates effect of a weakening economy and rising debtover their cost of funds during 2000, and 42 percent service burdens. In the May 2000 BLPS, for examreported that they required higher debt-service- ple, almost half of the banks surveyed, on net, indicoverage ratios. cated that over the past two years they had increased the maximum size of their residential mortgage loans. Moreover, about one-fourth, on net, had eased their Loans to Households requirements for down payments, a change reflected in the fraction, albeit small, of mortgage loans A period of improving quality in consumer loans extended with no down payment. The easier terms on came to an end in the first quarter of 2000, with residential real estate loans have negative implicadelinquency and net charge-off rates on credit card tions for the average credit quality in this sector and loans and consumer installment loans rising over the for the recovery rate on foreclosed properties. Neverrest of the year (chart 23 top and bottom right pan- theless, the net charge-off rate on residential mortels). The delinquency rate on consumer installment gages remained very low in 2000, likely as a result loans rose 7 basis points in 2000, to 3.06 percent, of continued strength in existing home sales, which although that on credit card loans edged up only contributed to solid growth in median home prices. 2 basis points, to 4.57 percent. The deterioration in consumers' servicing of their debt probably reflects the pressures brought to bear by the slowdown in 25. Reserves, provisioning, and charge-offs economic activity as the year progressed and the for loan and lease losses, 1985-2000 continued rise in household debt-service payments as a fraction of disposable income, which reached its Percent As a percentage of loans and leases highest level in fifteen years (chart 24). In the January 2001 BLPS, 19 percent of banks, on net, reported — 3.0 Loss reserves a tightening of lending standards on all types of 24. Debt burden of businesses and households, 1985-2000 Loss reserves Relative to net charge-offs 400 — 300 200 Relative to delinquencies NOTE. The debt burden for nonfinancial corporations is calculated as interest payments as a percentage of cash flow. The debt burden for households is an estimate of the ratio of debt payments to disposable personal income; debt payments consist of the estimated required payments on outstanding mortgage and consumer debt. SOURCE. National income and product accounts and the Federal Reserve NOTE. For definitions of delinquencies and net charge-offs, see note to System. chart 23. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

382 Federal Reserve Bulletin • June 2001 4. Exposures of selected U.S. banking organizations to selected economies at year-end, relative to tier 1 capital, 1998-2000 Percent except as noted MEMO: Total exposure, All reporting Large Other all reporting banks RReeggiioonn oorr ccoouunnttrryy (billions of dollars) 1998 1999 2000 1998 1999 2000 1998 1999 2000 1998 1999 2000 Selected Asian countries' 15.49 14.37 13.17 24.02 20.73 19.98 2.08 1.75 1.41 37.87 37.45 37.30 Eastern Europe All 3.49 2.85 4.35 5.61 4.25 6.83 .16 .08 .08 8.53 7.43 12.33 Russia .43 .37 .49 .68 .55 .77 .00 .01 .00 1.05 .95 1.39 Latin America All 42.93 39.00 37.88 64.20 53.90 54.98 9.51 9.41 8.35 104.96 101.63 107.31 Brazil 11.27 10.49 11.15 17.04 14.53 16.40 .00 2.47 2.08 27.55 27.34 31.59 Total 61.90 5622 55.40 93.83 78.88 81.79 11.75 11.24 9.84 15136 146.51 156.94 NOTE. For definition of tier 1 capital, see text note 5. Exposures consist of (5 money center banks and 5 other large banks) ($179 billion in tier 1 capital), lending and derivatives exposures for cross-border and local-office operations. and the remaining 89 were "other" banks ($104 billion). The average "other" Respondents may file information on one bank or on the bank holding company bank at year-end 2000 had $16 billion in assets. as a whole. 1. Indonesia, Korea, Malaysia, Philippines, and Thailand. At year-end 2000, "all reporting" banks consisted of 99 institutions with a SOURCE. Federal Financial Institutions Examination Council Statistical total of $283 billion in tier 1 capital; of these institutions, 10 were "large" banks Release E.16, "Country Exposure Survey," available at www.ffiec.gov/E16.htm/ Loss Provisioning consecutive year in 2000, reaching 12.3 percent. The decline reflected strong U.S. economic growth and In response to higher delinquency and charge-off the associated rise in lending to U.S. entities over the rates overall, commercial banks aggressively stepped first half of 2000. Nevertheless, rising income from up loan-loss provisioning in 2000 (chart 25, top foreign operations during the first two quarters of panel). Almost 80 percent of the increase was attrib- the year boosted the share of income attributable utable to the largest 100 banks, and among those, to such operations to 10.3 percent, up from 9.9 permuch of it was concentrated at the commercial bank cent in 1999. The increase in income reflected a subsidiaries of a few large bank holding companies. rise in interest income, which rebounded notably Nevertheless, because of the increase in net charge- after slipping in 1999, and—in contrast to domesoffs, the sharp rise in loss provisioning resulted in tic operations—a notable reduction in loan-loss only an 8 percent increase in loan-loss reserves—less provisioning. than the advance in total loans and leases. As a result, Reports from ninety-nine banks for year-end 2000 the ratio of loan-loss reserves to total loans and leases show that the ten largest of them increased their fell 7 basis points, to 1.66 percent, the lowest level exposure to Eastern Europe and, by a lesser amount, since 1986. to Latin America, as a proportion of tier 1 capital, Other measures of the adequacy of loan-loss while further paring back their exposure to certain reserves also fell but remained at fairly high levels Asian economies (table 4). The rise in exposure to relative to historical norms (chart 25, bottom panel). Brazil accounted for almost half of the rise in the The ratio of loan-loss reserves to delinquent loans large banks' exposure to Latin America, which nonedropped 10 percentage points, to 70 percent, still just theless remained below its level of two years ago. below the elevated range of the past several years The other reporting banks cut back their exposure and above its level of the late 1980s and early 1990s. to all these economies, to below 10 percent of tier 1 Similarly, the ratio of loan-loss reserves to net capital. For all reporting banks, exposures to all these charge-ofFs declined significantly last year but economies fell slightly, to 55.4 percent of tier 1 remained above its level of the late 1980s and early capital. 1990s. RECENT DEVELOPMENTS INTERNATIONAL OPERATIONS OF U.S. COMMERCIAL BANKS Over the first three months of 2001, the Federal Reserve lowered the federal funds rate 150 basis The share of assets at domestically chartered banks points in three 50-point steps, to 5 percent, and that were booked at foreign offices fell for the third almost completely reversed the tightening that had Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 383 begun in the second half of 1999. Despite the change cent in the first quarter of 2001 relative to the same in the stance of monetary policy, responses to a quarter last year. Profitability was restrained sigsupplementary survey of bank lending practices in nificantly by continued increases in loan-loss provi- March 2001 indicated that banks, on net, continued to sioning arising from ongoing deterioration in credit tighten standards and strengthen terms on commer- quality; according to several banks, the deterioration cial and industrial loans during the first two months remains concentrated in commercial loan portfolios. of 2001. The equity prices of bank holding compa- The decline in net income also reflected reduced nies declined moderately, on balance, over the first revenues from capital market activities, particularly quarter of 2001, although bank share prices contin- at banking organizations that have substantial venture ued to perform better than the S&P 500. capital operations. • The net income of a sample of twenty-five large bank holding companies declined more than 10 per- A.l. Report of income, all U.S. banks, 1991-2000 Millions of dollars Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Gross interest income 290,692 256,415 244,742 257,065 302,376 313,120 338,225 359,184 366,182 424,299 Taxable equivalent 293,879 259,394 247,620 259,822 305,010 315,579 340,660 361,648 368,809 426,937 Loans 215,019 185,938 178,425 189,764 227,218 239,310 255,499 270,952 278,604 327,277 Securities 52,769 51,825 48,678 48,299 51,030 50,603 52,662 56,596 62,095 67,665 Gross federal funds sold and reverse repurchase agreements 9,149 5,913 4,796 6,415 9,744 9,265 13,658 14,999 12,327 13,530 Other 13,757 12,739 12,843 12,587 14,382 13,944 16,407 16,635 13,155 15,829 Gross interest expense 168,492 122,517 105,615 110,850 147,958 150,047 164,516 177,999 174,870 222,011 Deposits 139,431 98,809 79,503 79,106 105,329 107,467 117,351 125,217 119,640 151,159 Gross federal funds purchased and repurchase agreements 14,439 9,263 8,442 12,476 18,424 16,775 20,440 22,182 21,129 26,847 Other 14,623 14,441 17,669 19,269 24,204 25,806 26,724 30,599 34,101 44,004 Net interest income 122,200 133,898 139,127 146,215 154,418 163,073 173,709 181,185 191,312 202,288 Taxable equivalent 125,387 136,877 142,005 148,972 157,052 165,532 176,144 183,649 193,939 204,926 Loss provisioning1 34,871 26,813 16,841 10,991 12,631 16,206 19,173 21,224 21,120 29,038 Noninterest income 61,124 67,044 75,847 77,224 83,851 95,278 105,776 123,490 144,131 151,715 Service charges on deposits 12,884 14,126 14,898 15,281 16,057 17,043 18,558 19,770 21,495 23,717 Income from fiduciary activities 9,499 10,452 11,199 12,124 12,890 14,288 16,604 19,271 20,501 22,213 Trading income 5,954 6,273 9,238 6,249 6,337 7,523 8,019 7,705 10,478 12,447 Other 32,785 36,193 40,513 43,572 48,567 56,424 62,597 76,745 91,656 93,340 Noninterest expense 126,665 132,815 140,523 144,905 151,137 162,401 170,996 193,681 204,365 215,514 Salaries, wages, and employee benefits .. 53,810 55,484 58,507 60,904 64,013 67,776 72,347 79,508 86,139 89,005 Expenses of premises and fixed assets .. 17,984 18,152 18,578 18,978 19,760 20,883 22,082 24,160 25,859 26,763 Other 54,871 59,181 63,439 65,023 67,363 73,742 76,568 90,013 92,367 99,744 Net noninterest expense 65,541 65,771 64,676 67,681 67,286 67,123 65,220 70,191 60,234 63,799 Realized gains on investment account securities 2,897 3,957 3,054 -568 481 1,123 1,826 3,087 251 -2,298 Income before taxes and extraordinary items 24,684 45,273 60,662 66,974 74,980 80,866 91,141 92,856 110,208 107,155 Taxes 8,292 14,450 19,861 22,429 26,222 28,431 31,987 31,902 39,262 37,448 Extraordinary items 1,198 401 2,085 -17 28 88 56 506 169 -32 Net income 17,590 31,224 42,886 44,528 48,785 52,522 59,209 61,460 71,114 69,675 Cash dividends declared 15,562 14,226 22,068 28,165 31,105 39,391 42,726 41,206 51,957 52,517 Retained income 2,028 16,997 20,816 16,362 17,681 13,132 16,483 20,253 19,159 17,157 1. Includes provisions for loan and lease losses and for allocated transfer risk. Table A. 2 begins on page 384. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

384 Federal Reserve Bulletin • June 2001 A.2. Portfolio composition, interest rates, and income and expense, all U.S. banks, 1991-2000 A. All banks Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Balance sheet items as a percentage of average net consolidated assets Interest-earning assets 88.04 88.33 88.50 86.60 86.47 86.80 86.58 86.26 86.54 86.66 Loans and leases, net 59.55 57.30 56.25 56.07 58.37 59.89 58.69 58.33 59.36 60.51 Commercial and industrial 17.33 15.78 14.88 14.51 15.20 15.60 15.78 16.37 17.09 17.20 U.S. addressees 15.00 13.54 12.72 12.35 12.87 13.07 13.18 13.62 14.43 14.67 Foreign addressees 82.33 2.24 2.16 2.16 2.33 2.53 2.60 2.75 2.66 2.53 Consumer 11.45 11.00 11.00 11.43 12.08 12.21 11.44 10.36 9.71 9.39 Credit card 3.88 3.80 3.88 4.21 4.69 4.87 4.55 3.96 3.51 3.52 Installment and other 7.57 7.20 7.11 7.22 7.39 7.34 6.89 6.39 6.20 5.88 Real estate 24.87 24.87 24.80 24.43 25.01 25.06 25.02 24.87 25.44 27.04 In domestic offices 24.11 24.18 24.18 23.80 24.36 24.43 24.41 24.30 24.87 26.49 Construction and land development 3.41 2.64 1.99 1.65 1.59 1.63 1.73 1.86 2.18 2.51 Farmland .53 .56 .57 .56 .56 .56 .55 .55 .56 .56 One- to four-family residential 12.27 12.91 13.49 13.74 14.42 14.43 14.42 14.26 14.10 14.95 Home equity 1.95 2.09 2.07 1.91 1.88 1.85 1.94 1.89 1.76 1.96 Other 10.32 10.83 11.42 11.84 12.54 12.57 12.48 12.37 12.34 13.00 Multifamily residential .66 .75 .79 .79 .81 .85 .83 .82 .88 .99 Nonfarm nonresidential 7.23 7.32 7.33 7.07 6.97 6.96 6.88 6.81 7.15 7.48 In foreign offices .76 .69 .62 .63 .65 .63 .61 .57 .57 .54 Depository institutions 1.42 1.24 1.08 1.42 1.88 2.29 1.89 1.88 1.94 1.85 Foreign governments .75 .73 .67 .41 .30 .26 .18 .15 .16 .12 Agricultural production 1.01 1.02 .99 1.00 .96 .92 .90 .89 .83 .78 Other loans 3.60 3.50 3.56 3.34 3.15 3.36 2.84 2.81 2.76 2.56 Lease-financing receivables 1.09 1.03 .99 1.03 1.19 1.51 1.87 2.14 2.53 2.65 LESS: Unearned income on loans -.36 -.28 -.21 -.16 -.14 -.12 -.09 -.07 -.06 -.05 LESS: Loss reserves' -1.62 -1.60 -1.51 -1.36 -1.26 -1.21 -1.13 -1.07 -1.04 -1.02 Securities 20.70 23.52 25.37 24.32 21.94 21.01 20.41 20.38 20.40 20.02 Investment account 18.93 21.18 22.50 21.60 19.39 18.20 17.25 17.49 18.33 17.59 Debt 18.62 20.82 22.12 21.21 18.98 17.75 16.75 16.94 17.73 16.93 U.S. Treasury 5.06 6.49 7.08 6.77 5.25 4.20 3.38 2.71 2.14 1.66 U.S. government agency and corporation obligations 8.75 9.86 10.73 10.24 9.81 9.75 9.74 10.28 10.85 10.31 Government-backed mortgage pools ... 4.51 4.52 4.74 4.67 4.47 4.80 4.94 5.17 5.24 4.75 Collateralized mortgage obligations 2.07 3.12 3.72 3.24 2.67 2.11 1.94 2.13 2.15 1.92 Other 2.16 2.21 2.27 2.33 2.68 2.83 2.86 2.99 3.46 3.63 State and local government 2.28 2.08 2.06 2.02 1.80 1.68 1.59 1.57 1.62 1.52 Private mortgage-backed securities .94 .82 .73 .64 .62 .61 .50 .67 .88 .95 Other 1.59 1.58 1.52 1.54 1.49 1.51 1.54 1.71 2.24 2.48 Equity .31 .37 .38 .39 .41 .45 .50 .55 .61 .66 Trading account 1.77 2.34 2.87 2.71 2.55 2.81 3.16 2.90 2.06 2.43 Gross federal funds sold and reverse RPs 4.58 4.54 4.27 3.82 3.93 3.82 5.18 5.37 4.61 4.12 Interest-bearing balances at depositories 3.21 2.97 2.62 2.40 2.23 2.08 2.29 2.17 2.17 2.01 Non-interest-earning assets 11.96 11.67 11.50 13.40 13.53 13.20 13.42 13.74 13.46 13.34 Revaluation gains on off-balance-sheet items2 ... n.a. n.a. n.a. 2.95 2.90 2.25 2.59 2.95 2.57 2.29 Other 11.96 11.67 11.50 10.45 10.62 10.95 10.83 10.79 10.89 11.05 Liabilities 93.33 92.82 92.15 92.12 91.99 91.73 91.57 91.51 91.51 91.58 Interest-bearing liabilities 76.58 75.32 73.92 71.86 71.86 71.62 71.36 71.33 72.51 73.28 Deposits 64.45 62.94 60.26 57.34 56.30 55.87 55.01 54.66 54.79 54.66 In foreign offices 8.55 8.37 8.32 9.39 10.28 10.01 10.02 10.15 10.46 10.90 In domestic offices 55.90 54.56 51.94 47.96 46.03 45.86 44.99 44.51 44.33 43.75 Other checkable deposits 6.72 7.65 8.24 7.80 6.63 4.75 3.62 3.11 2.81 2.46 Savings (including MMDAs) 18.00 20.28 20.91 19.60 17.48 18.71 19.13 19.91 21.00 20.64 Small-denomination time deposits 21.30 19.21 16.98 15.33 16.14 15.97 15.17 14.15 13.10 12.49 Large-denomination time deposits 9.89 7.42 5.81 5.23 5.77 6.42 7.08 7.33 7.42 8.16 Gross federal funds purchased and RPs 7.09 7.02 7.47 7.60 7.71 7.18 8.13 7.99 7.97 7.84 Other 5.03 5.36 6.19 6.92 7.85 8.56 8.21 8.68 9.75 10.79 Non-interest-bearing liabilities 16.75 17.50 18.23 20.26 20.13 20.11 20.21 20.18 19.00 18.30 Demand deposits in domestic offices 12.59 13.24 13.86 13.49 12.68 12.82 12.16 11.00 9.78 8.62 Revaluation losses on off-balance-sheet items2 . n.a. n.a. n.a. 2.69 2.88 2.14 2.64 2.97 2.52 2.29 Other 4.16 4.27 4.37 4.55 4.57 5.14 5.41 6.21 6.70 7.39 Capital account 6.67 7.18 7.85 7.88 8.01 8.27 8.43 8.49 8.49 8.42 MEMO Commercial real estate loans 12.02 11.34 10.63 9.94 9.83 9.92 9.99 10.12 10.87 11.58 Other real estate owned .75 .82 .63 .36 .19 .14 .11 .08 .06 .05 Managed liabilities 31.05 28.70 28.28 29.61 32.08 32.73 34.09 34.94 36.58 38.82 Average net consolidated assets (billions of dollars) 3,379 3,442 3,566 3,863 4,148 4,376 4,733 5,144 5,438 5,904 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 385 A.2.—Continued A. All banks Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Effective interest rate (percent)3 Rates earned » Interest-earning assets 9.57 8.27 7.61 7.61 8.33 8.14 8.15 7.99 7.70 8.23 Taxable equivalent 9.69 8.37 7.71 7.70 8.41 8.21 8.22 8.06 7.77 8.26 Loans and leases, gross 10.40 9.20 8.69 8.62 9.25 8.99 9.01 8.85 8.48 9.01 Net of loss provisions 8.72 7.87 7.87 8.12 8.74 8.39 8.34 8.15 7.83 8.21 Securities 8.19 7.04 6.08 5.96 6.51 6.42 6.50 6.37 6.25 6.53 Taxable equivalent 8.56 7.34 6.36 6.20 6.73 6.66 6.73 6.63 6.45 6.65 Investment account 8.25 7.11 6.07 5.79 6.35 6.35 6.45 6.29 6.23 6.52 U.S. government and other debt 8.43 7.18 6.07 5.80 6.42 6.47 6.60 6.45 6.39 6.71 State and local 7.25 6.81 6.25 5.87 5.82 5.55 5.41 5.23 5.11 5.21 Equity 6.20 5.32 4.79 4.79 5.51 5.23 5.15 4.92 4.85 4.99 Trading account 7.54 6.40 6.16 7.41 7.73 6.86 6.75 6.85 6.47 6.63 Gross federal funds sold and reverse RPs 5.69 3.58 3.04 4.26 5.63 5.21 5.45 5.29 4.78 5.56 Interest-bearing balances at depositories 8.44 7.31 6.61 5.71 6.84 6.21 6.24 6.32 5.95 6.48 Rates paid Interest-bearing liabilities 6.55 4.75 4.01 4.01 4.99 4.82 4.92 4.88 4.47 5.17 Interest-bearing deposits 6.34 4.51 3.65 3.53 4.47 4.33 4.39 4.31 3.87 4.45 In foreign offices 8.54 7.32 6.82 5.59 6.12 5.54 5.44 5.66 4.91 5.61 In domestic offices 6.00 4.07 3.14 3.14 4.11 4.07 4.16 4.01 3.63 4.18 Other checkable deposits 4.34 2.70 1.99 1.85 2.06 2.04 2.25 2.29 2.08 2.34 Savings (including MMDAs) 5.11 3.25 2.50 2.58 3.19 2.99 2.93 2.79 2.49 2.86 Large-denomination time deposits4 6.69 4.90 4.00 4.09 5.47 5.39 5.45 5.22 4.92 5.79 Small-denomination time deposits4 6.93 5.15 4.19 4.17 5.44 5.40 5.54 5.48 5.09 5.68 Gross federal funds purchased and RPs 5.76 3.64 3.07 4.18 5.65 5.12 5.17 5.19 4.73 5.76 Other interest-bearing liabilities 8.65 7.87 8.02 7.25 7.47 6.93 6.95 6.89 6.48 6.96 Income and expense as percentage of average net consolidated assets Gross interest income 8.60 7.45 6.86 6.65 7.29 7.16 7.15 6.98 6.73 7.19 Taxable equivalent 8.70 7.54 6.94 6.73 7.35 7.21 7.20 7.03 6.78 7.23 Loans 6.36 5.40 5.00 4.91 5.48 5.47 5.40 5.27 5.12 5.54 Securities 1.56 1.51 1.37 1.25 1.23 1.16 1.11 1.10 1.14 1.15 Gross federal funds sold and reverse RPs .27 .17 .13 .17 .23 .21 .29 .29 .23 .23 Other .41 .37 .36 .33 .35 .32 .35 .32 .24 .27 Gross interest expense 4.99 3.56 2.96 2.87 3.57 3.43 3.48 3.46 3.22 3.76 Deposits 4.13 2.87 2.23 2.05 2.54 2.46 2.48 2.43 2.20 2.56 Gross federal funds purchased and RPs .43 .27 .24 .32 .44 .38 .43 .43 .39 .45 Other .43 .42 .50 .50 .58 .59 .56 .59 .63 .75 Net interest income 3.62 3.89 3.90 3.78 3.72 3.73 3.67 3.52 3.52 3.43 Taxable equivalent 3.71 3.98 3.98 3.86 3.79 3.78 3.72 3.57 3.57 3.47 Loss provisioning5 1.03 .78 .47 .28 .30 .37 .41 .41 .39 .49 Noninterest income 1.81 1.95 2.13 2.00 2.02 2.18 2.23 2.40 2.65 2.57 Service charges on deposits .38 .41 .42 .40 .39 .39 .39 .38 .40 .40 Income from fiduciary activities .28 .30 .31 .31 .31 .33 .35 .37 .38 .38 I Trading income .18 .18 .26 .16 .15 .17 .17 .15 .19 .21 Interest rate exposures n.a. n.a. n.a. n.a. n.a. .09 .08 .05 .07 .08 Foreign exchange exposures n.a. n.a. n.a. n.a. n.a. .06 .08 .09 .09 .09 1 Equity, commodity, and other exposures ... n.a. n.a. n.a. n.a. n.a. .02 * .01 .03 .04 Other .97 1.05 1.14 1.13 1.17 1.29 1.32 1.49 1.69 1.58 f Noninterest expense 3.75 3.86 3.94 3.75 3.64 3.71 3.61 3.76 3.76 3.65 I Salaries, wages, and employee benefits 1.59 1.61 1.64 1.58 1.54 1.55 1.53 1.55 1.58 1.51 Expenses of premises and fixed assets .53 .53 .52 .49 .48 .48 .47 .47 .48 .45 Other 1.62 1.72 1.78 1.68 1.62 1.69 1.62 1.75 1.70 1.69 I Net noninterest expense 1.94 1.91 1.81 1.75 1.62 1.53 1.38 1.36 1.11 1.0811 Realized gains on investment account securities . .09 .11 .09 -.01 .01 .03 .04 .06 * -.04 1 Income before taxes and extraordinary items .73 1.32 1.70 1.73 1.81 1.85 1.93 1.81 2.03 1.81 1 Taxes .25 .42 .56 .58 .63 .65 .68 .62 .72 .63 Extraordinary items .04 .01 .06 * * * * .01 * * 'iff Net income (return on assets) .52 .91 1.20 1.15 1.18 1.20 1.25 1.19 1.31 1.18 Cash dividends declared .46 .41 .62 .73 .75 .90 .90 .80 .96 .89 1 Retained income .06 .49 .58 .42 .43 .30 .35 .39 .35 .29 | MEMO: Return on equity 7.80 12.64 15.32 14.63 14.69 14.52 14.84 14.07 15.41 14.01;; * In absolute value, less than 0.005 percent. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Includes the allowance for loan and lease losses and the allocated transfer risk reserve. 2. Before 1994, the netted value of off-balance-sheet items appeared in "trading account securities" if a gain and "other non-interest-bearing liabilities" if a loss. 3. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Reports. 4. Before 1997, data for large time open accounts are included in small-denomination time deposits. 5. Includes provisions for loan and lease losses and for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

386 Federal Reserve Bulletin • June 2001 A.2. Portfolio composition, interest rates, and income and expense, all U.S. banks, 1991-2000 B. Ten largest banks by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Balance sheet items as a percentage of average net consolidated assets Interest-earning assets 85.41 85.16 84.79 77.16 77.02 79.94 81.62 81.06 81.28 82.02 Loans and leases, net 62.14 58.34 55.57 49.91 50.05 53.51 50.91 50.76 53.37 55.22 Commercial and industrial 22.42 20.32 18.65 16.43 16.16 17.17 16.90 18.07 19.24 19.95 U.S. addressees 13.44 12.00 10.75 9.16 8.66 9.59 10.24 11.76 13.14 13.94 Foreign addressees 8.97 8.32 7.90 7.27 7.50 7.59 6.66 6.31 6.10 6.01 Consumer 7.20 7.31 7.33 6.59 6.60 6.22 6.40 6.04 5.94 5.45 Credit card 2.53 2.61 2.50 2.28 1.96 1.23 1.34 1.30 1.36 1.34 Installment and other 4.67 4.70 4.83 4.31 4.65 4.99 5.06 4.74 4.58 4.11 Real estate 21.68 19.93 18.54 16.21 15.82 16.53 17.42 16.51 16.96 19.82 In domestic offices 18.37 17.07 15.99 13.80 13.48 14.44 15.69 15.08 15.55 18.48 Construction and land development 3.42 2.48 1.59 .84 .58 .51 .68 .77 .90 .98 Farmland .08 .07 .07 .06 .06 .06 .09 .09 .10 .11 One- to four-family residential 10.34 10.08 10.29 9.69 9.62 10.43 11.02 10.33 10.77 13.37 Home equity 1.63 1.63 1.60 1.40 1.40 1.53 1.70 1.72 1.54 1.60 Other 8.71 8.46 8.68 8.29 8.22 8.90 9.31 8.61 9.22 11.76 Multifamily residential .57 .58 .53 .41 .38 .38 .39 .38 .43 .60 Nonfarm nonresidential 3.95 3.86 3.51 2.79 2.83 3.05 3.52 3.51 3.35 3.42 In foreign offices 3.32 2.85 2.55 2.41 2.35 2.09 1.73 1.43 1.41 1.34 Depository institutions 3.05 2.56 2.35 3.37 4.95 6.06 4.14 4.00 4.30 3.75 Foreign governments 2.88 2.75 2.46 1.27 .90 .69 .45 .35 .38 .28 Agricultural production .31 .28 .27 .25 .21 .23 .31 .28 .26 .23 Other loans 5.61 6.05 6.82 6.44 5.85 6.42 4.21 3.79 3.97 3.68 Lease-financing receivables 1.68 1.51 1.30 1.14 1.14 1.59 2.24 2.81 3.40 3.07 LESS: Unearned income on loans -.35 -.27 -.21 -.16 -.14 -.11 -.07 -.06 -.05 -.04 LESS: Loss reserves1 -2.34 -2.08 -1.94 -1.63 -1.45 -1.30 -1.08 -1.01 -1.03 -.97 Securities 15.58 19.13 22.74 20.61 19.53 19.83 20.00 19.72 18.34 18.98 Investment account 9.38 10.70 12.45 11.68 10.65 10.60 10.97 12.12 13.08 13.71 Debt 9.08 10.36 12.08 11.30 10.27 10.22 10.55 11.64 12.57 13.03 U.S. Treasury 1.35 2.30 2.39 2.17 2.03 1.93 1.56 1.70 1.98 1.96 U.S. government agency and corporation obligations 3.46 4.45 6.14 5.16 4.46 4.59 5.34 6.31 6.35 6.59 Government-backed mortgage pools ... 2.26 2.43 3.30 2.79 2.89 3.58 4.26 5.13 5.03 4.88 Collateralized mortgage obligations 1.12 1.97 2.76 2.31 1.50 .95 .93 .93 .79 .93 Other .08 .05 .08 .06 .08 .06 .15 .26 .52 .78 State and local government .77 .66 .59 .60 .49 .39 .51 .47 .45 .51 Private mortgage-backed securities .48 .33 .38 .43 .32 .30 .32 .60 .57 .51 Other 3.01 2.62 2.59 2.94 2.97 3.01 2.81 2.57 3.22 3.47 Equity .30 .33 .36 .38 .38 .38 .42 .47 .51 .68 Trading account 6.19 8.43 10.30 8.93 8.88 9.23 9.03 7.60 5.25 5.26 Gross federal funds sold and reverse RPs 2.96 3.23 2.71 2.68 3.20 3.10 7.56 7.81 6.64 5.02 Interest-bearing balances at depositories 4.74 4.45 3.76 3.95 4.25 3.50 3.15 2.77 2.94 2.80 Non-interest-earning assets 14.59 14.84 15.21 22.84 22.98 20.06 18.38 18.94 18.72 17.98 Revaluation gains on off-balance-sheet items2 ... n.a. n.a. n.a. 11.23 10.77 7.63 7.36 7.62 6.66 5.66 Other 14.59 14.84 15.21 11.61 12.21 12.43 11.02 11.33 12.05 12.32 Liabilities 94.97 94.44 93.24 93.42 93.59 93.04 92.61 92.58 92.28 92.36 Interest-bearing liabilities 74.62 73.08 71.56 64.33 63.37 64.45 65.83 65.81 66.87 67.81 Deposits 57.67 55.73 52.91 48.20 47.49 47.87 47.36 47.65 48.79 49.27 In foreign offices 28.47 27.16 25.51 26.10 28.36 26.41 22.18 20.17 21.04 21.62 In domestic offices 29.19 28.56 27.41 22.10 19.12 21.46 25.18 27.48 27.76 27.66 Other checkable deposits 3.00 3.38 3.45 2.91 2.30 1.61 1.21 .99 .72 .74 Savings (including MMDAs) 13.50 14.91 15.33 12.70 10.56 12.31 14.26 15.83 16.84 16.73 Small-denomination time deposits 6.55 5.72 5.09 3.98 4.04 4.68 5.82 6.03 5.66 5.38 Large-denomination time deposits 6.14 4.56 3.53 2.51 2.23 2.86 3.89 4.62 4.54 4.80 Gross federal funds purchased and RPs 6.80 6.19 6.70 5.83 6.17 5.88 10.26 9.78 8.84 8.89 Other 10.15 11.16 11.94 10.29 9.71 10.69 8.20 8.37 9.24 9.65 Non-interest-bearing liabilities 20.35 21.36 21.68 29.09 30.22 28.59 26.78 26.77 25.41 24.56 Demand deposits in domestic offices 10.36 11.05 11.27 10.15 8.88 9.73 8.98 8.46 7.83 7.28 Revaluation losses on off-balance-sheet items2 . n.a. n.a. n.a. 10.22 10.68 7.27 7.53 7.67 6.51 5.69 Other 9.99 10.30 10.41 10.51 10.66 11.59 10.27 10.65 11.06 11.59 Capital account 5.03 5.56 6.76 6.58 6.41 6.96 7.39 7.42 7.72 7.64 MEMO Commercial real estate loans 9.05 8.01 6.46 4.65 4.40 4.65 5.45 5.61 5.69 5.87 Other real estate owned .78 1.13 1.02 .58 .27 .18 .13 .09 .06 .04 Managed liabilities 53.23 50.82 49.23 46.21 47.94 47.39 46.02 44.42 45.49 46.84 Average net consolidated assets (billions of dollars) 717 775 818 949 1,051 1,189 1,514 1,820 1,935 2,234 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 387 A.2.—Continued B. Ten largest banks by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Effective interest rate (percent)3 Rates earned Interest-earning assets 9.92 8.67 8.16 8.15 8.20 7.72 7.55 7.54 7.35 7.77 Taxable equivalent 9.95 8.72 8.20 8.18 8.22 7.74 7.60 7.57 7.39 7.78 Loans and leases, gross 10.46 9.36 9.07 8.89 8.84 8.32 8.25 8.21 7.99 8.46 Net of loss provisions 8.58 7.51 7.95 8.38 8.62 8.11 7.93 7.62 7.50 7.84 Securities 8.52 7.38 6.69 7.09 7.41 6.80 6.70 6.79 6.52 6.52 Taxable equivalent 8.63 7.54 6.77 7.19 7.47 6.85 6.85 6.89 6.65 6.55 Investment account 8.99 7.96 6.90 6.57 7.06 6.71 6.61 6.71 6.50 6.45 U.S. government and other debt 9.29 8.13 6.99 6.70 7.22 6.86 6.80 6.92 6.68 6.70 State and local 7.67 7.40 6.99 6.35 6.23 5.73 5.55 5.50 5.65 5.69 Equity 4.22 4.04 3.72 3.27 4.03 3.84 3.47 2.98 2.93 2.55 Trading account 7.84 6.69 6.45 7.79 7.83 6.90 6.81 6.92 6.56 6.70 Gross federal funds sold and reverse RPs 5.60 3.65 3.02 4.52 5.20 4.92 5.45 5.20 4.52 4.93 Interest-bearing balances at depositories 10.05 9.29 8.34 7.27 7.15 6.71 6.91 7.16 7.22 7.43 Rates paid Interest-bearing liabilities 7.71 6.17 5.60 5.43 5.88 5.44 5.41 5.29 4.79 5.37 Interest-bearing deposits 7.09 5.33 4.50 4.32 4.99 4.57 4.54 4.40 3.82 4.40 In foreign offices 8.76 7.55 6.87 6.04 6.07 5.62 5.52 5.83 4.99 5.67 In domestic offices 5.47 3.25 2.36 2.35 3.42 3.32 3.69 3.39 3.04 3.51 Other checkable deposits 3.93 1.97 1.28 1.10 1.29 1.32 1.97 1.67 1.44 1.61 Savings (including MMDAs) 5.09 2.95 2.14 2.35 3.11 2.76 2.68 2.45 2.11 2.43 Large-denomination time deposits4 6.50 4.66 3.55 3.12 3.73 4.62 5.17 4.53 4.36 5.35 Small-denomination time deposits4 6.09 3.81 3.01 2.80 5.08 4.58 5.45 5.21 4.95 5.50 Gross federal funds purchased and RPs 5.98 4.04 3.26 4.05 5.22 4.93 5.02 5.18 4.53 5.47 Other interest-bearing liabilities 11.20 10.40 11.16 10.87 9.80 8.86 9.13 8.85 8.61 8.15 Income and expense as a percentage of average net consolidated assets Gross interest income 8.77 7.69 7.22 6.37 6.42 6.26 6.31 6.21 6.01 6.39 Taxable equivalent 8.80 7.72 7.25 6.40 6.43 6.27 6.33 6.22 6.03 6.41 Loans 6.77 5.65 5.22 4.49 4.44 4.48 4.31 4.27 4.35 4.74 Securities .84 .85 .86 .77 .75 .71 .73 .81 .85 .88 Gross federal funds sold and reverse RPs .17 .14 .11 .15 .21 .18 .45 .42 .30 .25 Other .98 1.05 1.04 .97 1.00 .88 .82 .70 .51 .51 Gross interest expense 5.81 4.54 4.06 3.52 3.74 3.52 3.55 3.48 3.16 3.60 Deposits 4.23 3.09 2.48 2.15 2.43 2.26 2.26 2.20 1.97 2.33 Gross federal funds purchased and RPs .43 .28 .24 .24 .35 .31 .54 .54 .40 .49 Other 1.15 1.17 1.35 1.13 .95 .95 .75 .74 .79 .78 Net interest income 2.96 3.15 3.16 2.86 2.68 2.73 2.76 2.73 2.84 2.78 Taxable equivalent 2.99 3.18 3.19 2.88 2.70 2.75 2.79 2.75 2.86 2.80 Loss provisioning5 1.21 1.12 .64 .26 .11 .11 .16 .31 .26 .35 Noninterest income 2.40 2.59 2.99 2.33 2.16 2.34 2.12 2.15 2.55 2.51 Service charges on deposits .26 .30 .30 .26 .25 .28 .32 .33 .37 .40 Income from fiduciary activities .33 .37 .39 .36 .30 .31 .34 .32 .31 .27 Trading income .64 .66 .91 .53 .46 .52 .43 .33 .46 .48 Interest rate exposures n.a. n.a. n.a. n.a. n.a. .30 .23 .10 .17 .20 Foreign exchange exposures n.a. n.a. n.a. n.a. n.a. .17 .20 .20 .19 .18 Equity, commodity, and other exposures n.a. n.a. n.a. n.a. n.a. .05 * .03 .09 .11 Other 1.16 1.27 1.38 1.18 1.15 1.23 1.04 1.17 1.41 1.36 Noninterest expense 3.83 3.86 4.13 3.56 3.32 3.57 3.24 3.47 3.45 3.30 Salaries, wages, and employee benefits 1.79 1.78 1.88 1.65 1.58 1.57 1.45 1.45 1.57 1.46 Expenses of premises and fixed assets .66 .65 .66 .55 .50 .50 .47 .47 .50 .47 Other 3.38 1.43 1.59 1.36 1.24 1.50 1.33 1.54 1.38 1.38 Net noninterest expense 1.44 1.27 1.14 1.23 1.16 1.23 1.12 1.32 .90 .79 Realized gains on investment account securities . .04 .11 .13 .02 .03 .04 .08 .11 .03 -.03 Income before taxes and extraordinary items .34 .87 1.50 1.39 1.44 1.44 1.56 1.22 1.71 1.60 Taxes .17 .26 .53 .48 .55 .52 .58 .44 .66 .60 Extraordinary items .03 * .16 * * • * * * * Net income (return on assets) .21 .61 1.13 .91 .88 .92 .98 .78 1.05 1.00 Cash dividends declared .21 .18 .28 .58 .57 .70 .82 .53 .79 .86 Retained income * .43 .85 .33 .31 .21 .15 .25 .26 .14 MEMO: Return on equity 4.23 10.91 16.75 13.86 13.78 13.21 13.22 10.53 13.58 13.07 * In absolute value, less than 0.005 percent. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Includes the allowance for loan and lease losses and the allocated transfer risk reserve. 2. Before 1994, the netted value of off-balance-sheet items appeared in "trading account securities" if a gain and "other non-interest-bearing liabilities" if a loss. 3. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Reports. 4. Before 1997, data for large time open accounts are included in small-denomination time deposits. 5. Includes provisions for loan and lease losses and for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

388 Federal Reserve Bulletin • June 2001 A.2. Portfolio composition, interest rates, and income and expense, all U.S. banks, 1991-2000 C. Banks ranked 11 through 100 by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Balance sheet items as a percentage of average net consolidated assets Interest-earning assets 86.88 87.97 88.36 88.16 88.31 87.75 86.95 87.39 87.95 88.25 Loans and leases, net 60.08 58.30 57.33 58.56 62.68 64.24 63.89 64.42 64.28 64.97 Commercial and industrial 20.53 18.83 18.03 18.03 19.26 18.95 19.01 18.92 19.40 18.20 U.S. addressees 19.30 17.78 17.05 16.99 18.10 17.71 17.78 17.59 18.18 17.66 Foreign addressees 1.24 1.05 .98 1.04 1.16 1.24 1.22 1.33 1.22 .55 Consumer 11.66 11.72 11.47 12.62 14.23 15.67 15.62 14.53 13.57 13.80 Credit card 5.04 5.16 5.23 5.99 7.34 8.26 8.50 7.67 6.78 6.98 Installment and other 6.62 6.56 6.24 6.63 6.89 7.40 7.12 6.86 6.79 6.82 Real estate 21.51 21.89 22.11 22.26 23.25 23.26 22.99 24.60 24.81 26.23 In domestic offices 21.37 21.78 22.01 22.17 23.10 23.10 22.85 24.42 24.63 26.13 Construction and land development 4.00 3.02 2.08 1.63 1.50 1.55 1.69 2.03 2.43 3.00 Farmland .12 .14 .13 .14 .13 .13 .14 .17 .19 .22 One- to four-family residential 10.17 11.36 12.30 12.98 14.16 14.15 13.88 14.86 14.15 14.52 Home equity 2.07 2.50 2.54 2.33 2.19 2.08 2.22 2.17 2.08 2.49 Other 8.10 8.85 9.76 10.65 11.97 12.07 11.65 12.69 12.07 12.03 Multifamily residential .54 .66 .71 .71 .77 .89 .93 1.00 1.02 1.11 Nonfarm nonresidential 6.53 6.61 6.79 6.72 6.54 6.37 6.21 6.36 6.82 7.28 In foreign offices .14 .11 .10 .09 .15 .16 .15 .18 .19 .09 Depository institutions 1.58 1.43 1.30 1.49 1.59 1.50 1.27 1.06 .92 1.04 Foreign governments .39 .33 .30 .28 .20 .20 .09 .06 .06 .03 Agricultural production .31 .31 .29 .29 .26 .28 .29 .33 .33 .37 Other loans 4.55 4.28 4.05 3.47 3.32 3.30 3.21 3.38 3.01 2.58 Lease-financing receivables 1.53 1.49 1.47 1.60 1.96 2.41 2.70 2.75 3.32 3.87 LESS: Unearned income on loans -.22 -.17 -.11 -.07 -.07 -.06 -.05 -.04 -.04 -.03 LESS: Loss reserves1 -1.76 -1.79 -1.60 -1.41 -1.32 -1.27 -1.24 -1.16 -1.11 -1.12 Securities 17.38 20.38 21.97 21.19 18.64 16.87 15.80 16.67 17.80 17.33 Investment account 16.25 19.24 20.60 19.82 17.88 16.06 15.07 16.13 17.29 16.11 Debt 16.02 18.99 20.34 19.50 17.51 15.62 14.58 15.58 16.64 15.51 U.S. Treasury 3.78 5.88 7.05 6.85 4.82 3.34 2.81 2.25 1.70 1.12 U.S. government agency and corporation obligations 8.43 9.26 9.55 9.28 9.40 9.12 8.98 9.93 10.58 9.71 Government-backed mortgage pools ... 5.38 5.22 5.21 5.30 5.06 5.42 5.17 4.98 5.12 4.31 Collateralized mortgage obligations 2.48 3.54 3.71 3.07 2.82 2.16 2.13 2.83 2.89 2.55 Other .57 .50 .63 .91 1.51 1.54 1.68 2.12 2.56 2.84 State and local government 1.63 1.46 1.31 1.21 1.11 .99 .88 .92 .99 .96 Private mortgage-backed securities 1.09 1.05 1.06 .93 1.02 .96 .73 .96 1.35 1.66 Other 1.10 1.34 1.37 1.22 1.16 1.21 1.18 1.53 2.02 2.06 Equity .22 .25 .26 .32 .37 .44 .49 .55 .65 .60 Trading account 1.13 1.14 1.37 1.38 .76 .80 .73 .54 .51 1.22 Gross federal funds sold and reverse RPs 4.90 4.78 4.98 5.11 4.52 4.26 4.38 3.57 3.34 3.77 Interest-bearing balances at depositories 4.51 4.52 4.08 3.30 2.47 2.38 2.88 2.72 2.53 2.18 Non-interest-earning assets 13.12 12.03 11.64 11.84 11.69 12.25 13.05 12.61 12.05 11.75 Revaluation gains on off-balance-sheet items2 n.a. n.a. n.a. .60 .50 .51 .69 .75 .57 .41 Other 13.12 12.03 11.64 11.23 11.18 11.75 12.36 11.86 11.48 11.34 Liabilities 93.93 93.13 92.56 92.47 92.23 92.02 91.85 91.63 91.65 91.57 Interest-bearing liabilities 76.07 74.66 73.38 72.86 74.05 73.14 72.62 73.40 74.95 76.40 Deposits 59.24 56.99 54.22 53.03 52.32 51.81 51.47 51.51 51.51 51.56 In foreign offices 6.69 6.20 6.78 8.05 8.12 7.52 7.85 8.15 7.97 7.28 In domestic offices 52.54 50.79 47.43 44.98 44.20 44.30 43.62 43.36 43.55 44.28 Other checkable deposits 5.36 6.26 7.21 6.91 5.62 3.06 1.95 1.75 1.60 1.32 Savings (including MMDAs) 17.62 20.21 20.60 20.13 18.78 20.76 21.09 21.41 22.47 22.36 Small-denomination time deposits 17.99 15.98 14.19 13.26 14.24 14.09 13.43 12.84 11.86 11.81 Large-denomination time deposits 11.56 8.34 5.44 4.68 5.55 6.39 7.15 7.36 7.62 8.78 Gross federal funds purchased and RPs 10.94 11.45 11.93 11.48 11.37 10.00 9.36 9.48 9.78 9.28 Other 5.89 6.22 7.23 8.34 10.36 11.32 11.79 12.41 13.67 15.56 Non-interest-bearing liabilities 17.87 18.47 19.18 19.62 18.18 18.89 19.22 18.23 16.70 15.17 Demand deposits in domestic offices 13.76 14.52 15.38 15.27 14.26 14.47 14.17 12.40 10.52 8.62 Revaluation losses on off-balance-sheet items2 . n.a. n.a. n.a. .57 .49 .49 .68 .76 .58 .41 Other 4.10 3.95 3.80 3.89 3.43 3.93 4.37 5.07 5.59 6.14 Capital account 6.07 6.87 7.44 7.53 7.77 7.98 8.15 8.37 8.35 8.43 MEMO Commercial real estate loans 11.83 11.09 10.29 9.69 9.42 9.38 9.44 10.11 11.00 12.07 Other real estate owned .76 .70 .47 .25 .13 .08 .06 .04 .03 .03 Managed liabilities 35.49 32.59 31.76 32.89 35.68 35.60 36.60 38.09 39.81 41.94 Average net consolidated assets (billions of dollars) 1,006 1,003 1,082 1,204 1,338 1,450 1,604 1,745 1,880 2,029 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 389 A.2.—Continued C. Banks ranked 11 through 100 by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Effective interest rate (percent)3 Rates earned Interest-earning assets 9.30 7.97 7.35 7.29 8.31 8.16 8.31 8.10 7.84 8.47 Taxable equivalent 9.39 8.07 7.45 7.37 8.37 8.23 8.36 8.17 7.88 8.49 Loans and leases, gross 9.96 8.75 8.25 8.22 9.10 8.87 9.03 8.82 8.50 9.15 Net of loss provisions 7.98 7.45 7.46 7.68 8.49 8.05 8.11 8.01 7.68 8.13 Securities 8.23 7.00 6.05 5.70 6.38 6.42 6.50 6.21 6.34 6.71 Taxable equivalent 8.57 7.30 6.32 5.92 6.56 6.66 6.70 6.46 6.46 6.77 Investment account 8.37 7.12 6.14 5.70 6.34 6.41 6.52 6.22 6.36 6.74 U.S. government and other debt 8.51 7.16 6.14 5.69 6.38 6.50 6.63 6.31 6.47 6.86 State and local 7.23 6.80 6.30 6.04 6.05 5.84 5.58 5.36 5.21 5.25 Equity 7.36 6.71 5.20 5.00 5.68 4.84 5.07 5.26 5.33 6.36 Trading account 6.46 4.73 4.74 5.75 7.27 6.53 6.05 5.86 5.58 6.25 Gross federal funds sold and reverse RPs 5.80 3.70 3.11 4.31 5.91 5.31 5.45 5.46 5.12 6.04 Interest-bearing balances at depositories 8.15 6.76 6.50 4.69 6.78 5.82 5.77 5.67 4.81 5.49 Rates paid Interest-bearing liabilities 6.41 4.43 3.76 3.72 4.94 4.70 4.79 4.76 4.38 5.22 Interest-bearing deposits 6.27 4.30 3.51 3.25 4.35 4.15 4.22 4.15 3.76 4.42 In foreign offices 8.39 7.26 7.37 4.60 6.30 5.29 5.23 5.22 4.70 5.38 In domestic offices 6.01 3.96 2.98 3.03 4.01 3.96 4.04 3.96 3.60 4.26 Other checkable deposits 4.21 2.43 1.70 1.62 1.89 1.78 2.01 2.41 2.03 2.57 Savings (including MMDAs) 5.04 3.07 2.33 2.46 3.10 2.91 2.84 2.76 2.49 2.94 Large-denomination time deposits4 6.77 5.10 4.30 4.21 5.70 5.50 5.47 5.32 4.96 5.88 Small-denomination time deposits4 6.96 5.07 4.06 4.18 5.35 5.26 5,43 5.35 5.03 5.73 Gross federal funds purchased and RPs 5.75 3.57 3.04 4.28 5.86 5.19 5.29 5.22 4.87 6.02 Other interest-bearing liabilities 6.55 5.77 5.97 5.24 6.43 5.95 5.85 5.81 5.41 6.36 Income and expense as a percentage of average net consolidated assets Gross interest income 8.24 7.12 6.58 6.46 7.40 7.24 7.26 7.16 6.99 7.56 Taxable equivalent 8.31 7.19 6.64 6.51 7.45 7.28 7.30 7.20 7.02 7.59 Loans 6.15 5.23 4.84 4.91 5.79 5.80 5.87 5.79 5.57 6.07 Securities 1.36 1.37 1.26 1.13 1.13 1.03 .98 1.00 1.10 1.09 Gross federal funds sold and reverse RPs .28 .18 .15 .21 .27 .23 .22 .19 .18 .22 Other .45 .34 .32 .21 .21 .18 .19 .18 .14 .18 Gross interest expense 4.80 3.26 2.74 2.67 3.62 3.39 3.41 3.45 3.26 3.96 Deposits 3.75 2.48 1.93 1.73 2.29 2.18 2.23 2.23 2.02 2.41 Gross federal funds purchased and RPs .67 .43 .38 .51 .67 .55 .51 .51 .51 .56 Other .38 .35 .43 .43 .66 .66 .68 .71 .73 .98 Net interest income 3.43 3.86 3.84 3.79 3.78 3.84 3.85 3.71 3.72 3.60 Taxable equivalent 3.51 3.93 3.91 3.85 3.84 3.89 3.89 3.75 3.76 3.63 Loss provisioning5 1.22 .78 .47 .32 .39 .54 .60 .53 .54 .68 Noninterest income 2.05 2.25 2.29 2.25 2.38 2.61 2.76 3.07 3.35 3.14 Service charges on deposits .41 .44 .46 .45 .44 .44 .44 .42 .42 .42 Income from fiduciary activities .36 .38 .38 .39 .40 .43 .44 .49 .48 .52 Trading income .10 .09 .14 .08 .09 .08 .08 .09 .08 .08 Interest rate exposures n.a. n.a. n.a. n.a. n.a. .03 .02 .03 .02 .02 Foreign exchange exposures n.a. n.a. n.a. n.a. n.a. .04 .05 .06 .06 .05 Equity, commodity, and other exposures n.a. n.a. n.a. n.a. n.a. .01 * * • * Other 1.19 1.33 1.32 1.33 1.45 1.67 1.79 2.07 2.37 2.13 Noninterest expense 3.77 3.98 3.95 3.86 3.79 3.85 3.85 4.03 4.11 3.96 Salaries, wages, and employee benefits 1.52 1.53 1.52 1.50 1.47 1.51 1.51 1.53 1.53 1.44 Expenses of premises and fixed assets .51 .49 .47 .47 .47 .48 .46 .46 .45 .43 Other 1.74 1.95 1.95 1.89 1.85 1.86 1.88 2.04 2.13 2.10 Net noninterest expense 1.73 1.73 1.65 1.61 1.41 1.24 1.10 .96 .76 .82 Realized gains on investment account securities . .14 .15 .09 -.01 .02 .02 .02 .03 -.01 -.05 Income before taxes and extraordinary items .62 1.50 1.81 1.85 2.01 2.09 2.18 2.24 2.41 2.04 Taxes .19 .48 .56 .63 .70 .75 .77 .79 .87 .71 Extraordinary items .03 .03 * * * * * * * * Net income (return on assets) .47 1.04 1.25 1.22 1.31 1.34 1.42 1.46 1.54 1.34 Cash dividends declared .47 .46 .76 .86 .85 1.07 .93 .96 1.16 .94 Retained income * .58 .49 .36 .46 .26 .48 .50 .38 .40 MEMO: Return on equity 7.71 15.16 16.86 16.27 16.84 16.78 17.36 17.38 18.48 15.85 * In absolute value, less than 0.005 percent. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Includes the allowance for loan and lease losses and the allocated transfer risk reserve. 2. Before 1994, the netted value of off-balance-sheet items appeared in "trading account securities" if a gain and "other non-interest-bearing liabilities" if a loss. 3. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Reports. 4. Before 1997, data for large time open accounts are included in small-denomination time deposits. 5. Includes provisions for loan and lease losses and for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

390 Federal Reserve Bulletin • June 2001 A.2. Portfolio composition, interest rates, and income and expense, all U.S. banks, 1991-2000 D. Banks ranked 101 through 1,000 by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Balance sheet items as a percentage of average net consolidated assets Interest-earning assets 88.90 89.02 89.54 90.09 90.12 90.13 90.30 90.39 90.75 90.54 Loans and leases, net 61.03 58.49 57.93 59.75 62.19 62.63 62.22 61.13 61.49 62.14 Commercial and industrial 15.04 13.34 12.19 12.07 12.70 12.80 12.43 12.48 12.64 12.97 U.S. addressees 14.88 13.16 12.03 11.91 12.54 12.61 12.19 12.16 12.32 12.61 Foreign addressees .16 .18 .16 .16 .16 .18 .23 .32 .32 .36 Consumer 15.13 14.18 14.82 15.84 16.27 15.88 14.03 12.28 10.79 10.19 Credit card 5.75 5.38 5.63 6.05 6.32 6.66 5.52 4.48 3.37 3.26 Installment and other 9.39 8.80 9.19 9.79 9.95 9.22 8.52 7.80 7.42 6.92 Real estate 27.51 28.11 28.61 29.42 30.81 31.36 33.23 33.94 35.89 36.91 In domestic offices 27.47 28.07 28.58 29.39 30.79 31.34 33.21 33.92 35.87 36.89 Construction and land development 3.67 2.86 2.26 2.08 2.21 2.38 2.69 2.88 3.48 4.16 Farmland .28 .32 .34 .36 .40 .46 .53 .56 .58 .65 One- to four-family residential 13.21 14.25 15.16 16.25 17.49 17.34 18.14 18.19 18.25 17.14 Home equity 2.53 2.56 2.51 2.33 2.36 2.30 2.30 2.15 1.99 2.10 Other 10.68 11.69 12.66 13.92 15.13 15.03 15.84 16.05 16.26 15.04 Multifamily residential .80 .95 1.07 1.13 1.21 1.29 1.29 1.26 1.43 1.57 Nonfarm nonresidential 9.50 9.68 9.75 9.57 9.48 9.87 10.56 11.03 12.12 13.36 In foreign offices .05 .04 .02 .03 .02 .02 .02 .02 .02 .02 Depository institutions .93 .80 .43 .40 .35 .48 .57 .50 .44 .36 Foreign governments .07 .05 .03 .02 .02 .02 .02 .03 .03 .03 Agricultural production .49 .54 .56 .62 .69 .71 .74 .80 .78 .82 Other loans .81 2.47 2.16 2.00 1.80 1.70 1.50 1.33 1.27 1.24 Lease-financing receivables .85 .78 .77 .83 .90 1.01 .99 .99 .78 .75 LESS: Unearned income on loans —.40 -.30 -.21 -.15 -.12 -.10 -.10 -.09 -.08 -.08 LESS: Loss reserves' -1.42 -1.49 -1.44 -1.30 -1.22 -1.22 -1.18 -1.13 -1.06 -1.04 Securities 21.27 24.13 25.92 25.72 23.08 22.67 23.45 24.26 25.16 24.32 Investment account 20.91 23.78 25.63 25.40 22.88 22.55 23.35 24.15 25.09 24.24 Debt 20.54 23.32 25.16 24.96 22.42 22.03 22.74 23.46 24.32 23.44 U.S. Treasury 6.16 7.75 8.63 8.26 6.48 5.61 4.96 3.92 2.53 1.81 U.S. government agency and corporation obligations 9.34 11.08 12.32 12.67 12.23 12.66 13.97 15.13 16.29 15.56 Government-backed mortgage pools ... 4.51 4.74 4.96 5.57 5.42 5.69 6.22 6.46 6.72 6.22 Collateralized mortgage obligations 2.73 3.95 4.82 4.39 3.56 3.12 3.01 3.22 3.52 3.03 Other 2.10 2.39 2.54 2.72 3.25 3.85 4.73 5.44 6.05 6.31 State and local government 2.65 2.27 2.26 2.29 2.13 2.24 2.44 2.70 2.91 2.91 Private mortgage-backed securities 1.16 1.01 .84 .75 .68 .76 .59 .65 1.00 .99 Other 1.23 1.21 1.10 .99 .89 .77 .78 1.06 1.60 2.18 Equity .37 .46 .48 .44 .47 .52 .61 .69 .77 .79 Trading account .36 .35 .28 .31 .20 .12 .10 .11 .08 .09 Gross federal funds sold and reverse RPs 4.71 4.92 4.49 3.64 3.92 3.87 3.60 4.17 3.35 3.41 Interest-bearing balances at depositories 1.89 1.47 1.20 .98 .93 .96 1.03 .83 .75 .67 Non-interest-earning assets 11.10 10.98 10.46 9.91 9.88 9.87 9.70 9.61 9.25 9.46 Revaluation gains on off-balance-sheet items3 ... n.a. n.a. n.a. .02 .05 .02 * * .01 .02 Other 11.10 10.98 10.46 9.89 9.83 9.84 9.69 9.61 9.24 9.44 Liabilities 92.90 92.47 91.85 91.62 91.36 91.06 90.78 90.55 90.90 90.95 Interest-bearing liabilities 77.26 75.98 74.42 74.77 75.00 75.06 75.19 75.43 76.76 77.42 Deposits 66.34 65.65 63.05 60.38 59.67 59.99 61.47 62.40 61.94 62.68 In foreign offices 1.76 1.56 1.43 1.69 1.71 1.33 1.23 1.31 1.20 1.28 In domestic offices 64.59 64.09 61.62 58.69 57.96 58.66 60.25 61.09 60.74 61.41 Other checkable deposits 7.82 9.14 9.94 9.70 8.54 6.20 4.96 4.23 3.75 3.33 Savings (including MMDAs) 20.79 23.34 24.06 22.92 20.75 22.50 23.59 25.65 27.35 27.02 Small-denomination time deposits 25.22 23.56 20.78 19.29 21.11 21.61 22.03 21.22 19.60 19.44 Large-denomination time deposits 10.76 8.06 6.84 6.78 7.56 8.34 9.66 9.99 10.04 11.62 Gross federal funds purchased and RPs 7.46 7.18 7.43 8.45 8.31 8.19 7.09 6.16 6.90 6.32 Other 3.46 3.15 3.94 5.94 7.02 6.88 6.62 6.86 7.92 8.42 Non-interest-bearing liabilities 15.64 16.49 17.43 16.85 16.36 16.00 15.60 15.12 14.14 13.53 Demand deposits in domestic offices 13.56 14.39 15.07 14.58 14.07 13.84 13.15 11.90 10.19 8.98 Revaluation losses on off-balance-sheet items2 . n.a. n.a. n.a. .02 .05 .02 .01 .01 .01 * Other 2.07 2.10 2.36 2.26 2.24 2.14 2.44 3.21 3.95 4.54 Capital account 7.10 7.53 8.15 8.38 8.64 8.94 9.22 9.45 9.10 9.05 MEMO Commercial real estate loans 14.64 13.91 13.37 13.05 13.19 13.83 14.77 15.38 17.28 19.32 Other real estate owned .77 .80 .57 .28 .17 .13 .11 .09 .08 .07 Managed liabilities 23.48 20.00 19.68 22.89 24.62 24.78 24.66 24.46 26.32 28.00 Average net consolidated assets (billions of dollars) 962 967 978 1,031 1,092 1,076 968 935 972 986 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 391 A.2.—Continued D. Banks ranked 101 through 1,000 by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Effective interest rate (percent)3 Rates earned Interest-earning assets 9.56 8.15 7.43 7.58 8.44 8.41 8.50 8.32 7.84 8.51 Taxable equivalent 9.70 8.26 7.55 7.68 8.53 8.50 8.59 8.44 7.93 8.57 Loans and leases, gross 10.44 9.12 8.57 8.64 9.45 9.39 9.48 9.37 8.75 9.43 Net of loss provisions 8.72 7.83 7.77 8.11 8.77 8.60 8.60 8.61 8.13 8.59 Securities 8.11 6.89 5.78 5.69 6.23 6.32 6.42 6.22 6.02 6.50 Taxable equivalent 8.54 7.19 6.10 5.93 6.50 6.60 6.69 6.57 6.29 6.71 Investment account 8.12 6.90 5.79 5.69 6.24 6.32 6.42 6.21 6.01 6.50 U.S. government and other debt 8.29 6.95 5.76 5.68 6.29 6.41 6.55 6.35 6.15 6.68 State and local 7.25 6.84 6.29 5.92 5.81 5.51 5.35 5.14 4.98 5.10 Equity 6.02 5.06 4.94 5.29 6.06 6.29 6.35 6.34 5.98 6.81 Trading account 7.19 5.62 4.74 5.29 5.55 5.94 6.37 6.84 7.33 9.30 Gross federal funds sold and reverse RPs — 5.64 3.48 3.02 4.05 5.45 5.29 5.42 5.31 4.98 6.15 Interest-bearing balances at depositories 6.81 4.62 3.52 4.28 6.09 5.72 5.49 5.77 5.06 5.78 Rates paid Interest-bearing liabilities 6.11 4.20 3.33 3.57 4.65 4.58 4.66 4.60 4.19 4.93 Interest-bearing deposits 6.06 4.17 3.26 3.31 4.26 4.27 4.34 4.28 3.84 4.46 In foreign offices 6.38 4.25 3.35 4.31 5.94 5.72 5.42 5.55 5.07 6.13 In domestic offices 6.05 4.17 3.26 3.28 4.21 4.24 4.32 4.25 3.82 4.43 Other checkable deposits 4.28 2.67 2.02 1.86 2.02 1.97 2.16 2.15 1.99 2.27 Savings (including MMDAs) 5.14 3.34 2.58 2.64 3.24 3.11 3.08 2.97 2.65 3.07 Large-denomination time deposits4 6.64 4.78 3.90 4.23 5.62 5.48 5.56 5.50 5.17 6.01 Small-denomination time deposits4 7.08 5.35 4.40 4.40 5.53 5.57 5.57 5.64 5.11 5.74 Gross federal funds purchased and RPs 5.62 3.46 2.95 4.12 5.61 5.16 5.21 5.14 4.83 5.94 Other interest-bearing liabilities 6.80 5.28 4.44 4.93 6.32 5.89 6.09 6.00 5.36 6.39 Income and expense as a percentage of average net consolidated assets Gross interest income 8.64 7.36 6.74 6.90 7.69 7.68 7.75 7.63 7.19 7.79 Taxable equivalent 8.76 7.46 6.84 6.99 7.78 7.76 7.83 7.71 7.27 7.87 Loans 6.52 5.46 5.06 5.26 5.99 5.99 6.00 5.85 5.48 5.97 Securities 1.70 1.64 1.48 1.45 1.43 1.42 1.50 1.50 1.51 1.57 Gross federal funds sold and reverse RPs .28 .17 .14 .14 .21 .20 .19 .22 .17 .21 Other .15 .08 .06 .06 .07 .06 .06 .06 .04 .04 Gross interest expense 4.68 3.17 2.46 2.65 3.46 3.41 3.47 3.44 3.20 3.79 Deposits 4.02 2.75 2.07 2.01 2.56 2.58 2.70 2.71 2.44 2.88 Gross federal funds purchased and RPs .42 .25 .22 .35 .46 .43 .37 .32 .34 .38 Other .23 .17 .17 .29 .44 .40 .40 .41 .42 .53 Net interest income 3.96 4.20 4.28 4.25 4.24 4.28 4.28 4.19 3.99 4.01 Taxable equivalent 4.08 4.30 4.37 4.34 4.32 4.35 4.36 4.27 4.07 4.08 Loss provisioning5 1.07 .77 .47 .32 .43 .50 .56 .48 .39 .53 Noninterest income 1.65 1.69 1.84 1.86 1.84 1.88 2.08 2.25 2.31 2.36 Service charges on deposits .40 .44 .45 .42 .42 .41 .40 .39 .38 .36 Income from fiduciary activities .27 .28 .29 .28 .27 .29 .32 .37 .38 .44 Trading income .04 .02 .03 .02 .03 .02 .01 .02 .02 .01 Interest rate exposures n.a. n.a. n.a. n.a. n.a. .01 .01 .01 .01 .01 Foreign exchange exposures n.a. n.a. n.a. n.a. n.a. .01 • • * * Equity, commodity, and other exposures ... n.a. n.a. n.a. n.a. n.a. * * * * * Other .95 .95 1.08 1.14 1.12 1.16 1.34 1.48 1.53 1.55 Noninterest expense 3.77 3.88 3.92 3.78 3.68 3.69 3.73 3.86 3.70 3.84 Salaries, wages, and employee benefits 1.48 1.51 1.51 1.49 1.44 1.44 1.50 1.57 1.56 1.58 Expenses of premises and fixed assets .49 .49 .48 .46 .45 .45 .46 .47 .47 .47 Other 1.80 1.88 1.92 1.83 1.79 1.80 1.76 1.83 1.68 1.79 Net noninterest expense 2.12 2.18 2.08 1.92 1.84 1.81 1.65 1.61 1.39 1.48 Realized gains on investment account securities . .09 .10 .06 -.05 -.01 .02 .02 .04 -.01 -.04 Income before taxes and extraordinary items .86 1.34 1.78 1.96 1.96 1.98 2.10 2.14 2.20 1.96 Taxes .29 .44 .61 .67 .67 .69 .73 .73 .75 .68 Extraordinary items -.07 • .04 • • * * .06 .01 • Net income (return on assets) .49 .90 1.21 1.29 1.28 1.29 1.37 1.47 1.47 1.29 Cash dividends declared .33 .48 .79 .81 .87 1.04 1.09 1.01 1.06 .91 Retained income .16 .42 .43 .48 .41 .25 .28 .45 .41 .37 MEMO: Return on equity 6.91 12.01 14.91 15.40 14.82 14.47 14.90 15.53 16.16 14.19 * In absolute value, less than 0.005 percent. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Includes the allowance for loan and lease losses and the allocated transfer risk reserve. 2. Before 1994, the netted value of off-balance-sheet items appeared in "trading account securities" if a gain and "other non-interest-bearing liabilities" if a loss. 3. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Reports. 3. Includes provisions for loan and lease losses and for allocated transfer risk. 4. Before 1997, data for large time open accounts are included in small-denomination time deposits. 5. Includes provisions for loan and lease losses and for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

392 Federal Reserve Bulletin • June 2001 A.2. Portfolio composition, interest rates, and income and expense, all U.S. banks, 1991-2000 E. Banks not ranked among the 1,000 largest by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Balance sheet items as a percentage of average net consolidated assets Interest-earning assets 91.26 91.39 91.67 91.72 91.70 91.64 91.66 91.89 91.84 91.77 Loans and leases, net 54.05 53.03 52.95 54.64 56.61 57.38 58.75 59.11 59.75 62.31 Commercial and industrial 10.60 9.74 9.24 9.31 9.65 9.97 10.16 10.33 10.64 11.09 U.S. addressees 10.56 9.69 9.20 9.26 9.59 9.90 10.08 10.25 10.56 11.02 Foreign addressees .04 .04 .04 .05 .06 .07 .08 .08 .08 .07 Consumer 10.44 9.68 9.18 9.38 9.54 9.42 8.98 8.46 8.15 7.97 Credit card 1.02 1.00 .92 .96 1.01 1.03 .85 .70 .68 .58 Installment and other 9.43 8.68 8.26 8.42 8.53 8.38 8.14 7.76 7.47 7.39 Real estate 29.34 30.16 31.10 32.19 33.55 34.11 35.55 36.04 36.84 39.29 In domestic offices 29.33 30.15 31.09 32.19 33.55 34.10 35.55 36.04 36.83 39.29 Construction and land development 2.18 1.97 1.93 2.14 2.39 2.61 2.82 3.02 3.28 3.70 Farmland 1.93 2.06 2.20 2.34 2.48 2.55 2.69 2.83 2.96 3.06 One- to four-family residential 16.01 16.44 16.82 16.94 17.45 17.48 18.16 18.04 17.65 18.43 Home equity 1.29 1.34 1.27 1.21 1.20 1.20 1.24 1.21 1.17 1.28 Other 14.72 15.10 15.56 15.73 16.26 16.28 16.92 16.83 16.48 17.15 Multifamily residential .71 .77 .84 .93 .95 .92 .95 .93 .98 1.04 Nonfarm nonresidential 8.50 8.91 9.30 9.83 10.28 10.54 10.92 11.21 11.97 13.06 In foreign offices * * * * • * * * * * Depository institutions .20 .13 .12 .13 .16 .17 .17 .12 .13 .11 Foreign governments .01 .01 .02 .01 * * * * .01 .01 Agricultural production 3.48 3.55 3.58 3.89 3.95 3.93 4.05 4.28 4.06 3.85 Other loans 1.24 .99 .86 .81 .76 .72 .70 .69 .69 .69 Lease-financing receivables .18 .17 .18 .20 .22 .23 .25 .24 .26 .27 LESS: Unearned income on loans -.51 -.43 -.36 -.31 -.30 -.27 -.24 -.20 -.15 -.11 LESS: Loss reserves' -.93 -.96 -.97 -.95 -.93 -.90 -.87 -.86 -.87 -.88 Securities 30.00 32.10 33.08 32.90 30.51 29.53 28.24 26.70 26.92 25.41 Investment account 29.95 32.04 33.01 32.86 30.48 29.50 28.21 26.66 26.88 25.39 Debt 29.57 31.60 32.57 32.41 30.03 29.01 27.69 26.12 26.35 24.83 U.S. Treasury 9.24 10.25 10.49 10.81 9.19 7.85 6.70 5.05 3.34 2.12 U.S. government agency and corporation obligations 13.83 15.03 15.80 15.35 15.13 15.67 15.58 15.43 16.89 16.95 Government-backed mortgage pools ... 5.59 5.52 5.39 4.81 4.19 4.21 4.01 3.90 3.95 3.47 Collateralized mortgage obligations 1.56 2.66 3.33 3.11 2.76 2.46 2.19 2.02 2.00 1.70 Other 6.68 6.85 7.09 7.43 8.18 9.00 9.38 9.51 10.94 11.79 State and local government 4.27 4.29 4.70 5.01 4.69 4.62 4.60 4.80 4.96 4.64 Private mortgage-backed securities .89 .77 .47 .27 .20 .18 .19 .16 .26 .23 Other 1.34 1.26 1.10 .97 .81 .68 .61 .68 .89 .88 Equity .38 .44 .45 .44 .45 .49 .52 .54 .53 .56 Trading account .06 .05 .07 .04 .03 .03 .03 .03 .03 .02 Gross federal funds sold and reverse RPs 5.64 5.10 4.67 3.42 3.91 4.04 3.95 5.13 4.17 3.22 Interest-bearing balances at depositories 1.57 1.16 .97 .76 .67 .69 .71 .96 1.00 .84 Non-interest-earning assets 8.74 8.61 8.33 8.28 8.30 8.36 8.34 8.11 8.16 8.23 Revaluation gains on off-balance-sheet items2 ... n.a. n.a. n.a. * * # * * * * Other 8.74 8.61 8.33 8.28 8.30 8.36 8.34 8.11 8.16 8.23 Liabilities 91.37 91.07 90.63 90.43 90.04 89.81 89.63 89.54 89.75 89.89 Interest-bearing liabilities 78.39 77.83 76.88 76.19 75.74 75.59 75.47 75.35 75.89 76.05 Deposits 76.41 75.75 74.54 73.14 72.70 72.47 72.05 71.77 71.41 70.54 In foreign offices .08 .07 .08 .09 .11 .10 .09 .07 .07 .05 In domestic offices 76.34 75.68 74.45 73.05 72.59 72.37 71.96 71.70 71.34 70.49 Other checkable deposits 11.00 12.33 13.16 13.31 12.37 11.75 11.39 11.18 11.07 10.58 Savings (including MMDAs) 19.34 22.10 23.55 23.23 20.41 19.57 18.98 19.01 19.69 19.03 Small-denomination time deposits 35.88 32.85 30.09 28.83 30.92 31.29 31.09 30.42 29.07 28.42 Large-denomination time deposits 10.12 8.40 7.66 7.68 8.89 9.77 10.50 11.10 11.51 12.46 Gross federal funds purchased and RPs 1.31 1.36 1.44 1.89 1.78 1.70 1.67 1.49 1.79 2.06 Other .67 .72 .90 1.16 1.25 1.41 1.74 2.08 2.69 3.45 Non-interest-bearing liabilities 12.97 13.24 13.74 14.24 14.30 14.23 14.16 14.19 13.86 13.84 Demand deposits in domestic offices 11.83 12.23 12.82 13.34 13.23 13.12 13.10 13.09 12.81 12.65 Revaluation losses on off-balance-sheet items2 . n.a. n.a. n.a. * * * • * • * Other 1.14 1.01 .93 .90 1.07 1.10 1.06 1.10 1.05 1.19 Capital account 8.64 8.93 9.37 9.57 9.97 10.19 10.37 10.46 10.25 10.11 MEMO Commercial real estate loans 11.73 11.85 12.21 13.02 13.72 14.18 14.80 15.26 16.34 17.91 Other real estate owned .66 .65 .52 .35 .25 .20 .16 .13 .11 .11 Managed liabilities 12.18 10.56 10.09 10.83 12.05 12.99 14.02 14.76 16.08 18.06 Average net consolidated assets (billions of dollars) 694 697 687 679 666 661 647 644 651 654 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2000 393 A.2.—Continued E. Banks not ranked among the 1,000 largest by assets Item 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Effective interest rate (percent)3 Rates earned Interest-earning assets 9.63 8.42 7.62 7.57 8.38 8.33 8.50 8.33 8.05 8.49 Taxable equivalent 9.81 8.58 7.78 7.72 8.53 8.48 8.63 8.49 8.18 8.59 Loans and leases, gross 11.01 9.81 9.13 9.00 9.80 9.72 9.80 9.69 9.28 9.56 Net of loss provisions 10.07 9.05 8.62 8.65 9.39 9.29 9.35 9.21 8.76 9.02 Securities 8.04 6.99 5.93 5.61 6.09 6.09 6.25 5.98 5.89 6.21 Taxable equivalent 8.53 7.40 6.33 5.99 6.49 6.51 6.65 6.46 6.29 6.55 Investment account 8.04 6.99 5.93 5.61 6.09 6.09 6.25 5.98 5.89 6.21 U.S. government and other debt 8.20 7.06 5.92 5.60 6.17 6.22 6.43 6.17 6.08 6.45 State and local 7.17 6.70 6.09 5.69 5.64 5.44 5.33 5.15 5.04 5.11 Equity 7.13 5.67 5.18 5.52 6.26 6.05 6.40 6.12 6.16 6.71 Trading account 8.41 7.12 4.83 6.03 6.12 6.48 6.60 6.01 3.60 4.01 Gross federal funds sold and reverse RPs 5.66 3.50 2.95 4.08 5.95 5.32 5.51 5.35 4.96 6.26 Interest-bearing balances at depositories 7.35 5.59 4.53 4.64 5.91 5.68 5.69 5.66 5.71 6.39 Rates paid Interest-bearing liabilities 6.17 4.43 3.54 3.49 4.46 4.48 4.61 4.60 4.28 4.80 Interest-bearing deposits 6.15 4.43 3.53 3.44 4.39 4.43 4.54 4.53 4.21 4.67 In foreign offices 5.95 3.97 2.91 3.92 5.73 5.34 4.77 5.08 4.34 5.14 In domestic offices 6.15 4.43 3.53 3.44 4.39 4.43 4.53 4.53 4.21 4.67 Other checkable deposits 4.61 3.13 2.42 2.29 2.50 2.41 2.46 2.45 2.28 2.46 Savings (including MMDAs) 5.17 3.61 2.91 2.83 3.32 3.24 3.36 3.39 3.20 3.56 Large-denomination time deposits4 6.72 4.88 3.96 4.12 5.55 5.48 5.53 5.53 5.21 5.92 Small-denomination time deposits4 6.97 5.35 4.39 4.28 5.51 5.59 5.66 5.63 5.24 5.70 Gross federal funds purchased and RPs 5.71 3.72 3.17 4.12 5.61 5.08 5.23 4.99 4.72 5.71 Other interest-bearing liabilities 6.96 5.00 4.68 4.98 6.46 5.78 6.32 6.45 5.63 6.24 Income and expense as a percentage of average net consolidated assets Gross interest income 8.91 7.78 7.06 7.01 7.78 7.74 7.90 7.75 7.48 7.86 Taxable equivalent 9.07 7.93 7.20 7.15 7.91 7.86 8.02 7.87 7.60 7.97 Loans 6.04 5.29 4.92 4.99 5.63 5.66 5.86 5.80 5.62 6.02 Securities 2.41 2.24 1.96 1.84 1.86 1.80 1.76 1.59 1.58 1.58 Gross federal funds sold and reverse RPs .34 .18 .14 .15 .25 .24 .24 .29 .22 .21 Other .12 .07 .05 .04 .04 .04 .04 .06 .06 .05 Gross interest expense 4.82 3.45 2.72 2.65 3.37 3.38 3.48 3.46 3.26 3.64 Deposits 4.70 3.36 2.64 2.52 3.19 3.21 3.28 3.25 3.02 3.31 Gross federal funds purchased and RPs .07 .05 .04 .07 .10 .08 .08 .07 .08 .12 Other .05 .04 .04 .06 .08 .08 .11 .13 .15 .21 Net interest income 4.09 4.34 4.34 4.36 4.41 4.36 4.42 4.29 4.22 4.22 Taxable equivalent 4.24 4.48 4.48 4.50 4.54 4.49 4.54 4.41 4.34 4.33 Loss provisioning5 .51 .41 .27 .19 .24 .25 .27 .29 .31 .34 Noninterest income 1.07 1.16 1.25 1.30 1.38 1.42 1.44 1.52 1.44 1.32 Service charges on deposits .44 .45 .45 .44 .44 .44 .44 .42 .42 .43 Income from fiduciary activities .14 .16 .16 .17 .22 .19 .20 .23 .26 .21 Trading income .01 .01 .01 * .01 * * * * Interest rate exposures n.a. n.a. n.a. n.a. n.a. * * * * * Foreign exchange exposures n.a. n.a. n.a. n.a. n.a. * * * * * Equity, commodity, and other exposures ... n.a. n.a. n.a. n.a. n.a. * * * * * Other .49 .55 .64 .69 .71 .78 .79 .86 .75 .68 Noninterest expense 3.60 3.66 3.74 3.78 3.80 3.69 3.71 3.75 3.73 3.58 Salaries, wages, and employee benefits 1.64 1.69 1.73 1.75 1.79 1.77 1.80 1.82 1.82 1.78 Expenses of premises and fixed assets .49 .49 .49 .49 .50 .49 .49 .49 .49 .47 Other 1.46 1.49 1.53 1.55 1.51 1.44 1.41 1.43 1.42 1.33 Net noninterest expense 2.53 2.51 2.49 2.48 2.42 2.28 2.27 2.23 2.29 2.26 Realized gains on investment account securities . .06 .09 .07 -.03 * .01 .01 .02 * -.01 Income before taxes and extraordinary items 1.11 1.51 1.65 1.66 1.75 1.84 1.89 1.79 1.62 1.60 Taxes .35 .47 .51 .51 .55 .59 .59 .53 .47 .45 Extraordinary items .19 .02 .05 * * * * * * * Net income (return on assets) .96 1.05 1.19 1.15 1.20 1.25 1.30 1.26 1.15 1.16 Cash dividends declared .89 .51 .56 .57 .62 .64 .73 .82 .68 .79 Retained income .07 .54 .63 .58 .58 .62 .57 .44 .48 .37 MEMO: Return on equity 11.06 11.78 12.67 12.03 12.06 12.31 12.57 12.02 11.27 11.44 * In absolute value, less than 0.005 percent. n.a. Not available. MMDA Money market deposit account. RP Repurchase agreement. CD Certificate of deposit. 1. Includes the allowance for loan and lease losses and the allocated transfer risk reserve. 2. Before 1994, the netted value of off-balance-sheet items appeared in "trading account securities" if a gain and "other non-interest-bearing liabilities" if a loss. 3. When possible, based on the average of quarterly balance sheet data reported on schedule RC-K of the quarterly Call Reports. 4. Before 1997, data for large time open accounts are included in small-denomination time deposits. 5. Includes provisions for loan and lease losses and for allocated transfer risk. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

394 Treasury and Federal Reserve Foreign Exchange Operations This report, presented by Dino Kos, Senior Vice 2. Federal funds target rate and yields implied President, Federal Reserve Bank of New York, and by the April federal funds futures and June eurodollar futures contracts, 2001 :Q1 Manager, System Open Market Account, describes the foreign exchange operations of the U.S. Depart- Percent ment of the Treasury and the Federal Reserve System for the period from January through March 2001. Krista Schwarz was primarily responsible for preparing the report. During the first quarter of 2001, the dollar appreciated 7.3 percent against the euro and 10.3 percent against the yen in an atmosphere of increased market uncertainty about the extent and duration of global economic slowing. On a trade-weighted basis, the dollar ended the quarter 7.4 percent stronger against an index of major currencies. Despite economic data suggesting a deceleration of activity in the United States, the dollar's gains in value over the quarter primarily reflected global investors' preference for U.S. assets. The U.S. monetary authorities did not rate a total of 150 basis points in three separate intervene in the foreign exchange markets during the moves, bringing the rate from 6.5 percent to 5.0 perquarter. cent. On January 3, the federal funds rate was cut 50 basis points to 6.0 percent. The FOMC cited FEDERAL OPEN MARKET COMMITTEE weakening sales and production, lower consumer EASES U.S. MONETARY POLICY confidence, and tight conditions in some segments of financial markets. Market participants came to expect During the first quarter, the Federal Open Market further monetary easing in response to additional data Committee (FOMC) lowered its target federal funds releases pointing to slower growth. Intraday price volatility in short-dated U.S. Treasury securities was exacerbated amid increased uncertainty as forecasts 1. Trade-weighted Group of Three currencies, 2001 :Q 1 Index,January 1 = 100 3. U.S. Treasury yields, 2001 :Q1 Trade-weighted dollar 106 Percent 103 Trade-weighted euro 5.6 100 Thirty-year Treasury bond — 5.2 97 Trade-weighted yen 94 — 4.8 Two-year 4.4 Feb. 2001 NOTE. In this chart and those that follow, the data are for business days except as noted. SOURCES. Board of Governors of the Federal Reserve System, The Federal Reserve Bank of New York, and the Bank of England. SOURCE. Bloomberg L.R Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

395 were rapidly revised. Concerns over the ramifications 5. The yen against the dollar and the euro, 2001 :Q1 of the California utility situation for other sectors of Yen per dollar or euro the U.S. economy added to market expectations for additional interest rate reductions. On January 31, the FOMC announced a reduction of 50 basis points in the target federal funds rate to 5.5 percent. In line with market expectations for further easing, the FOMC indicated that the balance of risks remained weighted toward economic weakness. Market participants cited anticipated easing as a factor contributing to improved investor sentiment. Over the quarter, the two-year Treasury yield declined 92 basis points while the yield on the Jan. Feb. Mar. thirty-year bond was nearly unchanged, bringing 2001 the spread between the two- and thirty-year Treasury SOURCE. Bloomberg L.P. yields to 126 basis points. Rising investor caution stymied a brief rally in global equity markets as weak corporate profit forecasts and disappointing earnings during the second half of the quarter. The yen's prompted steep declines in major indexes. In early short-lived midquarter strength against other major March, the Nasdaq index fell below the 2000 point currencies was widely attributed to fiscal year-end level for the first time since December 1998, and the repatriation flows and to decisions by foreign asset S&P 500 and the Nikkei indexes also reached multimanagers to purchase Japanese securities to bring year lows. During the quarter, these three indexes fell their portfolio positions closer to neutral. In the sec- 25.5, 12.1, and 5.7 percent respectively. ond half of the quarter, however, market sentiment The FOMC reduced the target federal funds rate an toward Japan turned negative as economic and politiadditional 50 basis points at its March 20 meeting, cal prospects became more uncertain. Risk-reversals bringing the official rate to 5.0 percent. The central in dollar-yen and euro-yen options skewed toward a banks of Canada, the United Kingdom, Switzerland, premium for yen puts across maturities, and net Japan, Australia, and New Zealand also lowered speculative short yen positions on the International official rates during the quarter in light of eco- Monetary Market rose to their highest level since nomic pressure stemming, in part, from global mar- September 1999. Comments by Japanese officials ket developments. that were interpreted as suggesting tolerance toward yen depreciation contributed to the yen's weakness at the end of the quarter. Protection against exchange ECONOMIC AND POLITICAL FACTORS AFFECT rate movements became more expensive, with optionimplied volatility in euro-yen and dollar-yen con- SENTIMENT TOWARD JAPANESE SECURITIES tracts rising 0.6 and 3.1 percent, respectively, over On a trade-weighted basis, the yen declined 6.2 per- the quarter. In March alone, the yen depreciated cent, with some of its sharpest losses occurring 6. One-month euro-yen and dollar-yen option 4. U.S. and Japanese equity indexes, 2001:Q1 implied volatility, 2001 :Q1 Index, January 1 = 100 Percent Percent Dollar-yen 18 — / 13 17 — — 12 16 / / 1 if 11 J I / Euro-yen 1 1 * ' 1 _J Jan. Feb. Mar. 2001 2001 SOURCE. Bloomberg L.P. SOURCE. J.P. Morgan Chase & Co. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

396 Federal Reserve Bulletin • June 2001 7. Bank of Japan overnight call rate target and slowing exports and production. On March 19, the yield implied by the June euroyen futures contract, Bank of Japan announced a shift in its operational 2001 :Q1 target, effectively returning to the near-zero interest rate policy for call money. The yield implied by the June three-month euroyen futures contract declined 30 basis points on the quarter, reaching 0.12 percent at the quarter-end. On February 16, the Japanese Cabinet Office downgraded its overall assessment of the economy, citing concern over a slowdown in external demand, and on February 22, Standard & Poor's downgraded Japan's long-term local and foreign currency sovereign credit ratings. Persistent rumors of Prime Minister Mori's impending resignation added to negative market sentiment. Through February and early 2001 March, the Topix and Nikkei stock indexes declined NOTE. On March 19, the Bank of Japan discontinued targeting the overnight to two- and sixteen-year lows, respectively, lending call rate. further support to the Japanese government bond SOURCE. Bloomberg L.P. (JGB) market. Yields on two- and ten-year JGBs declined to 0.14 and 1.28 percent, respectively, then- 2.3 percent against the euro and 7.0 percent against lowest levels since June 1999. During the remainder the dollar, its weakest level since September 1998. of March, ahead of the Japanese fiscal year-end, From the outset of the quarter, speculation over the equities staged a sharp recovery from midmonth lows type and timing of the Bank of Japan's action to with the Topix and Nikkei indexes gaining 10.0 and stimulate the economy contributed to market uncer- 9.9 percent, respectively, and JGB yields rose tainty. In January, Bank of Japan officials discour- slightly. aged expectations of a return to a near-zero interest rate policy. On February 9, the Bank of Japan announced changes aimed at improving money mar- THE EURO WEAKENS AGAINST THE DOLLAR ket liquidity, including a reduction of 15 basis points DESPITE NARROWING INTEREST RATE in the discount rate to 35 basis points, the creation DIFFERENTIALS of a standby Lombard-style lending facility, active outright Treasury-bill purchases for money market At the outset of the quarter, the euro-dollar exchange operations, and enhancements to bill purchase opera- rate was near 0.94. Despite a 68-basis-point narrowtions. On February 28, the Bank of Japan lowered the ing of the spread between two-year dollar and euro overnight call rate target and the rate on the standby swaps and aggressive monetary policy easing in the facility to 15 and 25 basis points, respectively, citing United States, the euro depreciated 6.3 percent over 8. Ten-year Japanese government yield and 9. Two-year U.S.-euro swap differential, 2001:Q1 Nikkei equity index, 2001 :Q1 Basis points Percent Index, January 1 = 100 Ten-year Japanese government bonds U.S. rate minus euro rate — 100 1.56 — U A — 110 wA f*^ v. Nikkei index — — 80 1.42 —^ 100 1.28 — 90 — — 60 \A J — 40 1.14 — 80 1 1 1 1 1 1 I1 1 Jan. Feb. Mar. Jan. Feb. Mar. 2001 2001 SOURCE. Bloomberg L.P. SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 397 10. One-month dollar-yen and euro-dollar risk reversals, growth outlook. The yield implied by the June 2001:Q1 euribor futures contract declined 15 basis points to 4.27 percent, and the two- to ten-year German sovereign yield curve steepened 19 basis points to a spread Dollar-yen risk reversal rate of 57 basis points. A sharp decline in German business confidence for February, as measured by the Ifo (Information und Forschung) survey, and steep European equity market losses contributed to expectations of slower growth in the euro area. In addition, economic data revealed stabilizing headline inflation and moderating money supply growth moving toward the ECB's reference value. In this environment, market participants began to view interest rate cuts by the ECB as imminent. Over the month of March, the euro Jan. Feb. Mar. 2001 depreciated 4.9 percent against the dollar. Many investors expressed surprise at the dollar's SOURCE. J.P. Morgan Chase & Co. continued appreciation against the euro, particularly as interest rate differentials continued to narrow. The the quarter. On a trade-weighted basis, the euro dollar's gains were supported by perceptions of the declined 2.4 percent. relatively greater resilience of the U.S. economy and Over the first half of the quarter, prospects for a a preference for U.S. fixed-income assets. Market near-term resumption of U.S. growth continued to reports indicated that U.S investors were scaling back shift to a later date, and market participants debated foreign holdings and that foreign investors were the possibility of a more pronounced economic slowreallocating into U.S. debt instruments. ECB data down. The apparent resilience of growth in the euro indicated that there was a €50 billion net investment area contributed to market expectations that less outflow from the euro area in January, the highest monetary policy easing would be forthcoming in the monthly outflow since January 2000. In addition, euro area relative to the United States. The yield International Monetary Market data indicated a implied by the June euribor futures contract declined reduction in net long euro positions over the quarter. only 3 basis points to 4.50 percent, and the two- to ten-year German government yield curve flattened 10 basis points to a spread of 31 basis points. Until TREASURY AND FEDERAL RESERVE FOREIGN midquarter, the euro-dollar exchange rate was little EXCHANGE RESERVES changed. In March, asset prices began to reflect expectations The U.S. monetary authorities did not undertake any of some monetary easing by the European Central intervention operations this quarter. At the end of the Bank (ECB) against the backdrop of a slowing global quarter, the current values of the euro and yen reserve 11. Net speculative long euro positions on International Money Market and spot euro-dollar exchange rate, 2001 :Q1 Contracts Dollars per euro Net long euro positions .95 22,500 — Tm 15,000 7,500 Jan. Feb. Mar. 2001 SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

398 Federal Reserve Bulletin • June 2001 holdings totaled $14.6 billion for the Federal Reserve chase agreement. Foreign currency reserves are also System and $14.6 billion for the Treasury's Exchange invested in deposits at the Bank for International Stabilization Fund. The U.S. monetary authorities Settlements and in facilities at other official instituinvest all of their foreign currency balances in a tions. As of March 31, direct holdings of foreign variety of instruments that yield market-related rates government securities totaled $12.9 billion, split of return and have a high degree of liquidity and evenly between the two authorities. Foreign governcredit quality. To the greatest extent possible, these ment securities held under repurchase agreement investments are split evenly between the Federal totaled $2.8 billion at the end of the quarter and were Reserve System and the Exchange Stabilization Fund. also split evenly between the two authorities. • A significant portion of the balances is invested in government securities held directly or under repur- Tables appear on page 399. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 399 1. Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 2001 :Q1 Millions of dollars Quarterly changes in balances, by source BBaallaannccee,, BBaallaannccee,, IItteemm DDeecc.. 3311,, 22000000 Net purchases Effect of Investment Currency Interest MMaarr.. 3311,, 22000011 and sales1 sales2 income ad v j a u l s u t a m ti e o n n t s3 an a d c c o ru th a e l r4 FEDERAL RESERVE SYSTEM OPEN MARKET ACCOUNT (SOMA) Euro 7,375.9 .0 .0 91.4 -471.6 6,995.7 Japanese yen 8,244.6 .0 .0 5.9 -735.2 7,515.3 Total 15,620.5 .0 .0 97.3 -1,206.8 14,511.0 Interest receivables (net)5 76.5 -.6 75.9 Other cash flow from investments4 .0 .0 .0 Total 15,697.0 .0 .0 973 -1,206.8 -.6 14,586.9 U.S. TREASURY EXCHANGE STABILIZATION FUND (ESF) Euro 7,373.1 .0 .0 91.8 -471.4 6,993.5 Japanese yen 8,244.7 .0 .0 5.9 -735.3 7,515.3 Total 15,617.8 .0 .0 97.7 -1,206.7 14,508.8 Interest receivables5 61.2 11.2 72.4 Other cash flow from investments4 .0 .0 Total 15,679.0 .0 .0 97.7 -1,206.7 11.2 14,581.2 NOTE. Figures may not sum to totals because of rounding. 3. Foreign currency balances are marked to market monthly at month-end 1. Purchases and sales for the purpose of this table include foreign cur- exchange rates. rency sales and purchases related to official activity, swap drawings and repay- 4. Values are cash flow differences from payments and collection of funds ments, and warehousing. between quarters. 2. This figure is calculated using marked-to-market exchange rates; it 5. Interest receivables for the ESF are revalued at month-end exchange rates. represents the difference between the sale exchange rate and the most recent Interest receivables for the Federal Reserve System are carried at average cost revaluation exchange rate. Realized profits and losses on sales of foreign cur- of acquisition and are not marked to market until interest is paid. rencies, computed as the difference between the historical cost-of-acquisition . . . Not applicable. exchange rate and the sale exchange rate, are reflected in table 2. 2. Net profits or losses (-) on U.S. Treasury 3. Reciprocal currency arrangements, March 31, 2001 and Federal Reserve foreign exchange operations, Millions of dollars based on historical cost-of-acquisition exchange rates, 2001:Q1 Institution Amount of Outstanding, facility Mar. 31, 2001 Millions of dollars Reciprocal currency Federal U.S. Treasury arrangements Reserve Exchange Period and item System Open Stabilization BBaannkk ooff CCaannaaddaa 22,,000000 ..00 Market Account Fund BBaannkk ooff MMeexxiiccoo 33,,000000 ..00 Valuation profits and losses on TToottaall 55,,000000 ..00 outstanding assets and liabilities, Dec. 31, 2000 Federal Reserve and U.S. Treasury Euro -936.6 -1,153.3 Exchange Stabilization Fund Japanese yen 1,194.7 1,406.9 currency arrangements Total 258.1 253.6 BBBaaannnkkk ooofff MMMeeexxxiiicccooo 33,,000000 ..00 Realized profits and losses TTToootttaaalll 33,,000000 ..00 from foreign currency sales, Dec. 31, 2000-Mar. 31, 2001 Euro .0 .0 Japanese yen .0 .0 Total .0 .0 Valuation profits and losses on outstanding assets and liabilities, Mar. 31, 2001 Euro -1,408.1 -1,624.6 Japanese yen 459.5 671.6 Total -948.6 -953.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

400 Industrial Production and Capacity Utilization for April 2001 Released for publication May 14 1.0 percent lower than in April 2000. Manufacturing output also fell 0.3 percent in April and has con- Industrial production declined 0.3 percent in April tracted nearly 3.5 percent since its recent peak in after a drop in output in the first quarter that was September 2000. Manufacturing output excluding steeper than previously reported. At 144.9 percent of motor vehicles and parts declined 0.4 percent in its 1992 average, industrial production in April was April. Output at utilities moved down 1.0 percent, Industrial production Ratio scale, 1992 = 100 - Total industrial production Excluding high-tech industries 1 1 1 j i i i i S i i i _i_ J I L J I I L Capacity utilization Percent of capacity 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 12-month percent change Percent of capacity Industrial production Capacity utilization 10 - 90 Total industrial production Primary processing 85 - 80 Excluding high- tech industries V 1 1 1 1 1 1 1 1995 1997 1999 2001 1995 1997 1999 2001 High-tech industries are defined as semiconductors and related electronic Shaded areas are periods of business recession as defined by the NBER. components (SIC 3672-9), computers (SIC 357), and communications equipment (SIC 366). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

401 Industrial production and capacity utilization, April 2001 Industrial production, index, 1992=100 Percent change Category 2001 2001' Apr. 2000 to Jan.r Feb/ Mar.r Apr.f Jan.' Feb/ Mar/ Apr.? Apr. 2001 Total 146.0 145.5 145.3 144.9 -.9 -.4 -.1 -.3 -1.0 Previous estimate 146.4 145.9 146.5 -.6 -.4 .4 Major market groups Products, total2 135.0 134.7 134.8 134.3 -.7 -.2 .1 -.4 -.7 Consumer goods 121.8 122.3 122.4 122.2 -1.1 .4 .1 -.2 -.8 Business equipment 197.4 195.1 196.1 193.8 -.9 -1.2 .5 -1.1 1.4 Construction supplies 140.7 139.7 139.2 138.4 .0 -.7 -.3 -.6 -4.2 Materials 165.9 164.8 164.3 163.9 -1.1 -.6 -.4 -.2 -1.3 Major industry groups Manufacturing 151.3 150.7 150.3 149.8 -.8 -.4 -.2 -.3 -1.6 Durable 192.3 191.0 191.9 190.7 -1.4 -.7 .4 -.6 -.1 Nondurable 114.0 114.0 112.8 112.8 -.1 .0 -1.1 .0 -3.3 Mining 101.0 101.3 102.4 103.1 1.4 .3 1.1 .6 3.2 Utilities 124.0 123.1 123.6 122.3 -3.9 -.7 .4 -1.0 3.1 Capacity utilization, percent 2000 2001 Average, Low, High, 1967-00 1982 1988-89 Apr. Jan/ Feb/ Mar/ Apr/ Total 82.1 71.1 85.4 82.5 79.7 79.2 78.9 78.5 4.0 Manufacturing 81.1 69.0 85.7 81.8 78.4 77.9 77.5 77.1 4.5 Advanced processing 80.6 71.0 84.2 79.8 78.6 78.1 78.1 77.7 2.3 Primary processing . 82.2 65.7 88.3 86.2 79.2 78.6 77.6 77.1 8.0 Mining 87.4 80.3 88.0 85.7 87.5 87.8 88.9 89.6 -1.3 Utilities 87.6 75.9 92.6 90.0 91.7 90.7 90.8 89.6 3.5 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. and production in mining rose 0.6 percent. The rate March; production for this group has fallen more than of capacity utilization for total industry fell further, to 3 percent since November. The output of industrial 78.5 percent, more than 3l/2 percentage points below and other equipment fell nearly 2 percent in April, its 1967-2000 average. with sharp losses in construction equipment, metalworking machinery, and farm machinery. The output of information processing equipment declined MARKET GROUPS 0.4 percent further, pushed down by continued weak- The output of consumer goods declined 0.2 percent ness in the production of communications equipment in April. The production of automotive products and computers. The output of transit equipment also edged up 0.6 percent after a stronger gain in March; declined, largely owing to a rollback in the producnonetheless, output remained below the level posted tion of medium and heavy trucks. before the industry's downturn that began in October Within intermediate products, the output of conof last year. The production indexes declined for struction supplies fell 0.6 percent further in April; most other consumer durables and for consumer output for that group is more than 4 percent below energy products. The decline in the energy index its level in April 2000. The production of materials reflected a drop in utility output for residential use receded 0.2 percent in April, with the losses concenthat more than offset a jump in the production of trated in durables. The production of semiconductors automotive gasoline. The output of nondurable con- and related electronic components fell further, as did sumer goods excluding energy was unchanged and the output of basic metals. In addition, the production thus continued the sluggish pattern of production that of semiconductors and related electronic components has been evident over the past year. in the first quarter was revised down significantly, The production of business equipment dropped leaving the April level about 6 percent below the December level. The output of nondurable goods 1.1 percent, more than reversing the gain posted in Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

402 Federal Reserve Bulletin • June 2001 materials edged up 0.2 percent in April after a 2 per- cent, while the rate for advanced-processing induscent decline in March. The production of both chemi- tries edged down to 77.7 percent. Capacity utilization cal and paper materials posted small gains, while the in high-technology industries (computers, communioutput of textiles fell again. The production of energy cations equipment, and semiconductors) dropped for materials was up 0.3 percent, as declines at electric the ninth successive month, to 73.4 percent, a level and gas utilities were more than offset by gains in the more than 6V2 percentage points below its July 2000 coal and oil and gas extraction industries. peak. The operating rate at utilities dipped to 89.6 percent. The operating rate for mining increased for the fourth consecutive month, to 89.6 percent. INDUSTRY GROUPS Manufacturing output fell 0.3 percent in April, the NEW RELEASE FORMAT seventh consecutive monthly decline. Most of the losses were posted in the durable goods industries, Beginning with the data for January 2001, the capacmost notably in high technology, other industrial ity indexes have been revised. Although changes machinery, and primary metals. The production of among most industries were offsetting, a significant nondurable goods was unchanged; both the textile downward revision to capacity growth at both semimill products industry and the apparel industry made conductor and computer manufacturers has led to a significant cutbacks in production, while the output reduction in the overall estimate of capacity growth of petroleum products jumped sharply. in 2001 from 3.5 percent to 2.7 percent. These series The factory operating rate edged down further, are available on the Federal Reserve Board's public to 77.1 percent. The utilization rate for primary- web site (www.federalreserve.gov/releases/gl7). • processing industries decreased slightly, to 77.1 per- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

403 Testimony of Federal Reserve Officials Testimony of Alan Greenspan, Chairman, Board of and trade barriers and, where necessary, to deregulate Governors of the Federal Reserve System, before the markets. These actions themselves have further pro- Committee on Finance, U.S. Senate, April 4, 2001 moted the very globalization that, interacting with advancing technology, spurred the deregulatory ini- I am pleased to be invited to discuss some of the tiatives in the first place. The result of this process important issues concerning international trade and has been an advance and diffusion of technical the attendant implications for the U.S. economy and change that has raised living standards in much of the the world economy more generally. In doing so, I world. want to emphasize that I speak for myself and not The international trading system that evolved has necessarily for the Federal Reserve. enhanced competition and nurtured what Joseph One of the most impressive and persistent trends Schumpeter a number of decades ago called "creof the last several decades is the expansion of inter- ative destruction," the continuous scrapping of old national trade. Trade across national borders has technologies to make way for the new. Standards of increased far faster than world gross domestic prod- living rise because the depreciation and other cash uct. As a consequence, imports of goods and services flows of industries employing older, increasingly as a percentage of gross domestic products world- obsolescent technologies are marshaled to finance the wide, on average, have risen from approximately newly produced capital assets that almost always 12 percent forty years ago to 24 percent today. embody the cutting-edge technologies. This is the To most economists, the evidence is impressively process by which wealth is created incremental step persuasive that the dramatic increase in world by incremental step. It presupposes a continuous competition—a consequence of broadening trade churning of an economy in which the new displaces flows—has fostered markedly higher standards of the old. living for almost all countries that have participated But there is also no doubt that this transition to the in cross-border trade. I include most especially the new high-tech economy, of which rising trade is a United States. part, is proving difficult for a large segment of our Globalization as generally understood involves the workforce that interfaces with our rapidly changing increasing interaction of national economic systems. capital stock day by day. This is most evident in the Of necessity, these systems are reasonably compat- rising fear of job skill obsolescence that has induced ible and, in at least some important respects, market a marked increase in experienced workers going back oriented. Certainly, market-directed capitalism has to school—often community colleges—to upgrade become the paradigm for most of the world, as their skills for a rapidly changing work environment. central-planning regimes have fallen into disfavor While major advances in standards of living are since their undisputed failures around the world in evident among virtually all nations that have opened the four decades following World War II. their borders to increased competition, the adjustment Globalization, in turn, has been driven importantly trauma resulting from technological advances as well by advances in technology. By lowering the costs of as globalization has also distressed those who once gathering information and conducting transactions, thrived in industries that were once at the cutting new technologies have reduced market frictions and edge of technology but that have become increasprovided significant impetus to the process of broad- ingly noncompetitive. Economists will say that workening world markets. Expanding markets, in turn, ers should move from the steel districts of western have both increased competition and rendered many Pennsylvania to Silicon Valley or its equivalent. And forms of government intervention either ineffective eventually they, or more likely their children, will or perverse. move. But the adjustment process is wrenching to an The recognition of this prosperity-enhancing sea- existing workforce made redundant largely through change in world markets and, in that context, of the no fault of their own. It may be argued that all counterproductive consequences of pervasive inter- workers should have the foresight to recognize longvention has led many governments to reduce tariffs term job opportunity shifts and move in advance of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

404 Federal Reserve Bulletin • June 2001 obsolescence. Such forecasting abilities are not in duction of those goods and services most highly great abundance among workers. But neither are they valued by consumers. evident among business managers or the economists Protectionism will also slow the inevitable transiwho counsel them. tion of the workforce to more productive endeavors. Yet the protectionist propensity to thwart the pro- To be sure, an added few years may enable some cess of the competitive flow of capital, from failing workers to reach retirement with dignity, but it will technologies to the more productive, is unwise and also keep frozen in place younger workers whose surely self-defeating. History tells us that not only is opportunities to secure jobs with better long-run prosit unwise to try to hold back innovation, it is also not pects diminish with time. possible over the longer run. Generation after gen- I regret that trade policy has been inextricably eration has experienced episodes in which those linked with job creation. We often try to promote free rendered technologically obsolescent endeavored to trade on the mistaken ground, in my judgment, that undermine progress, often appealing to the very real it will create jobs. The reason should be that it short-term costs of adjusting to a changing economic enhances standards of living through the effects of environment. In the end, these attacks did not pre- competition on productivity. It is difficult to find vail, and long-term advances in standards of living credible evidence that trade has affected the level of resumed. total employment in this country over the long run. Nonetheless, the campaign to expand free trade is Indeed, in recent months we have experienced the never won. It is a continuing battle. Though tariffs in widest trade deficit in history with unemployment industrial countries have come down sharply over the still close to record lows. past half-century, other barriers have become more Certainly, the distribution of jobs by industry is prevalent. Administrative protection in the form of influenced by international trade, but it is also antidumping suits and countervailing duties is a case affected by domestic trade. The relative balance of in point. These forms of protection have often been supply and demand in a competitive market economy imposed under the label of promoting "fair trade," determines the mix of employment. When exports but oftentimes they are just simple guises for inhibit- fall or imports rise, domestic demand and relative ing competition. Typically, antidumping duties are prices have invariably adjusted in the long run to levied when foreign average prices are below the leave total employment generally unaffected. average cost of production. But that also describes I also regret that, despite the remarkable success a practice that often emerges as a wholly appro- over a near half-century of GATT, the General Agreepriate response to a softening in demand. It is the ment on Tariffs and Trade, and its successor, the rare case that prices fall below marginal cost, World Trade Organization, in reducing trade barriers, which would be a more relevant standard. In the our trade laws and negotiating practices are essenview of many economists, antidumping initiatives tially adversarial. They presume that a trade concesshould be reserved for those cases in which anti- sion extracted from us by our trading partners is to competitive behavior is involved. Contrary to popu- their advantage at our expense and must be counlar notions about antidumping suits, under U.S. law, it tered. Few economists see the world that way; trade is not required to show evidence of predatory behav- is not a zero-sum game. ior, or of intention to monopolize, or of any If trade barriers are lowered by both parties, each other intentional efforts to drive competitors out of clearly benefits. In almost every credible scenario, if business. one lowers barriers and the other does not, the coun- In the end, economic progress clearly rests on try that lowered barriers unilaterally would still be competition. It would be a great tragedy were we to better off having done so. Raising barriers to achieve stop the wheels of progress because of an incapacity protectionist equality with reluctant trading partners to assist the victims of progress. would be neither to our benefit nor to theirs. The best Our efforts should be directed at job-skills enhance- of all possible worlds for competition is for both ment and retraining—a process in which the pri- parties to lower trade barriers. The worst is for both vate market is already engaged—and, if necessary, to keep them up. selected income maintenance programs for those For these reasons, we should welcome the opportuover a certain age, where retraining is problematic. nity to contribute to the effort of working toward Thwarting competition, by placing barriers to further trade liberalization. If we freeze competitive imports, will prevent markets in the United States progress in place, we will almost certainly slow ecoand other nations from deploying capital to their most nomic growth overall and impart substantial harm productive uses, that is, the most cost-effective pro- to those workers who would otherwise seek more- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 405 effective longer-term job opportunities. Protecting markets to imports from these countries. Such counmarkets from new technologies has never succeeded. tries need more globalization, not less. Adjustments to newer technologies have been In many important respects, the past half-century delayed, but only at significant cost. has represented an uneven struggle to repair the close Moreover, even should our trading partners not linkages among national economies that existed retaliate in the face of increased American trade before the First World War. The hostilities bred of barriers—an unlikely event—we would do ourselves war, the substantial disruptions to established trading great harm by lessening the vigor of American com- patterns associated with that conflict, and the subsepetitiveness. The United States has been in the fore- quent poor economic performance over the next few front of the postwar opening up of international mar- decades engendered the erection of trade barriers kets, much to our and the rest of the world's benefit. around the world that have taken even longer to It would be a great tragedy were that process stopped dismantle. To repeat that error would increase or reversed. poverty among a significant segment of the world's The arguments against the global trading system population. that emerged first in Seattle and then spread over the The United States has been a world leader in terms past year and a half arguably touched a chord in of free trade and open markets for capital as well as many people partly, in the judgment of many ana- goods and services. We have benefited enormously lysts, by raising the fear that they would lose local from the resulting international competition: We have political control of their destinies. Clearly, the risk is a wide range of goods and services available for that support for restrictions on trade is not dead, only consumption; our industries produce and employ quiescent. cutting-edge technologies; and the opportunities Those who protest against "globalization" appear created by these technologies have attracted capital too often to be self-designated representatives of inflows from abroad. These capital inflows have developing-country interests. For all the reasons that reduced the costs of building our country's capital I have cited earlier, these protests, however well stock and added to the productivity of our workers. intentioned, are wrongheaded. In particular, it is Most economists would argue that we must reaffirm essential to note that probably the best single action the United States' leadership role in the area of that the industrial countries could actually take to international trade policy in order to improve stanalleviate the terrible problem of poverty in many dards of living in the United States and among all of developing countries would be to open, unilaterally, our trading partners. Testimony of Laurence H. Meyer, Member, Board of capital requirements for equity investment activities Governors of the Federal Reserve System, before the conducted by banking organizations. Subcommittee on Capital Markets, Insurance, and When I last appeared before this subcommittee to Government Sponsored Enterprises and the Subcom- address the topic of merchant banking, the Board and mittee on Financial Institutions and Consumer Credit the Department of the Treasury were in the middle of of the Committee on Financial Services, U.S. House considering comments on rules we had proposed only of Representatives, April 4, 2001 recently before the testimony. As I indicated at that time, our experience has been that public comments I am pleased to appear before the Subcommittee on are generally very helpful and provide us with valu- Capital Markets, Insurance, and Government Spon- able insights and information from practitioners, anasored Enterprises and the Subcommittee on Financial lysts, other policymakers, and informed members of Institutions and Consumer Credit to outline the rules the public. recently adopted jointly by the Federal Reserve Board That is in fact what happened in this case. The and the Secretary of the Treasury to allow financial Board and the Treasury received a significant amount holding companies to engage in merchant banking of useful information and comment that led us to activities under the Gramm-Leach-Bliley Act. I will revise in some important respects the rules that implealso discuss the proposal recently published by the ment the merchant banking powers in the Gramm- Federal Reserve, the Office of the Comptroller of the Leach-Bliley Act. The comments also caused the Currency (OCC), and the Federal Deposit Insurance Board to rethink and revise our proposed capital Corporation (FDIC) to establish regulatory minimum treatment for equity investment activities. We have Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

406 Federal Reserve Bulletin • June 2001 also consulted with our fellow banking agencies investments that meet two important requirements: regarding the appropriate capital treatment for equity The investment may be held only for a period of time investment activities. As a result of the comments to enable the resale of the investment, and while the and those interagency consultations, we significantly investment is held by the FHC, the investing FHC revised our capital proposal and have again sought may not routinely manage or operate the commercial public comment on a proposed capital approach. The firm except as necessary or required to obtain a comment period on that proposal is open until reasonable return on the investment on resale. April 16. In addition, the GLB Act imposed limits on bank Before discussing the merchant banking rule and funding of portfolio companies owned by the bank's the capital proposal, I will outline both the final rule parent holding company and on cross-marketing that we and the Secretary of the Treasury adopted activities between banks and portfolio companies to implement the merchant banking provisions and owned by the same financial holding company. These the revised capital proposal. Let me start with some restrictions were also intended to reinforce the sepabackground that I hope will help put both what we ration between banks and the commercial companies did and what we have proposed in context. owned in reliance on the new merchant banking authority. THE GRAMM-LEACH-BLILEY ACT SUMMARY OF THE FINAL RULE GOVERNING MERCHANT BANKING ACTIVITIES The Bank Holding Company Act generally prohibits bank holding companies from owning more than The final rule adopted by the Board and the Treasury 5 percent of the voting stock of nonfinancial com- in late January of this year focuses on defining these panies, with limited exceptions. This prohibition was two important restrictions. In addition, the final rule included in the act in 1956 and extended in 1970 explains the types of risk-management policies, probecause the Congress has long been concerned that cedures, and systems that the agencies expect will the mixing of banking and commerce could result in be in place at FHCs that engage in merchant banka number of adverse effects. Among the concerns are ing activities and the manner in which the crossthat mixing banking and commerce could result in marketing restrictions and inter-affiliate lending concentration of economic power in a few large restrictions imposed by the GLB Act apply. Finally, conglomerates, less stringent credit standards for the rule temporarily establishes an interim procedure and higher risk exposures to affiliates, less attractive for agency review of an FHCs risk-management credit terms to unaffiliated commercial firms, and policies and systems in the event the organization other similar conflicts of interest, all of which could seeks to commit a significant portion of its capital to reduce the availability of credit to unaffiliated com- merchant banking activities. panies and create greater risks to the federal deposit Together, these provisions are important for maininsurance funds and ultimately the taxpayer. taining the difference between merchant banking The Gramm-Leach-Bliley Act (GLB Act) did not activities and the authorization of banking and comremove this general prohibition. In fact, as part of the merce within the same organization. They also supconsideration of that act, the Congress considered port the important objective of encouraging the safe and rejected the idea of allowing banking organiza- and sound exercise of the new merchant banking tions to affiliate broadly with commercial firms. authority. At the same time, the Congress recognized that As I suggested earlier, the final rule was modified there are some forms of ownership of commercial in several important respects from the original firms by banking organizations that are the functional interim rule that was the subject of my testimony last equivalent of financing for small businesses. It was June. These changes reflect insights and suggestions on this basis that the Congress authorized financial made by commenters that we believe improve the holding companies (FHCs) to engage in merchant workability of the rule while maintaining the differbanking activities. ences required by the GLB Act and the BHC Act between merchant banking, on the one hand, and Toward this end, the GLB Act contains several banking and commerce, on the other. Critically, the provisions in its authorization of merchant banking final rule also does not sacrifice the safety and soundactivities that are designed to distinguish merchant ness benefits of the rule. I will point out the most banking investments from the more general mixing significant changes between the interim rule and the of banking and commerce. In particular, the GLB Act final rule in my remarks. defines permissible merchant banking investments as Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 407 The final rule provides guidance on the GLB Act's ments and allow the investing company to monitor its requirement that merchant banking investments be investment and the activities of the portfolio comheld only for a period of time long enough to enable pany without becoming involved in the routine manthe sale or disposition of each investment on a reason- agement or operation of the company. able basis. Generally, the rule permits a ten-year The final rule also identifies several situations that holding period for direct investments and a fifteen- would be considered restricted routine management year holding period for investments in private equity of the portfolio company. In particular, an FHC would funds. The Board may approve a longer holding be considered to be routinely managing or operating period on a case-by-case basis. a company if an officer or employee of the FHC is Many commenters acknowledged that merchant also an executive officer of the portfolio company. In banking investments are rarely held beyond these addition, agreements that restrict decisions made in periods and, in fact, are typically sold within three to the ordinary course of the business of the portfolio five years after the investment is made. The longer company are considered to be routine management of holding periods permitted in the final rule allow some the company and thus are permitted by the final rule flexibility for FHCs to adjust their investment only in special circumstances. exit strategies to account for fluctuations in market The interim rule originally provided that any type conditions. of officer or employee interlock between an FHC and While some commenters advocated no restrictions a portfolio company would be considered to involve on holding periods, this approach did not appear to be the FHC in routinely managing the portfolio comeither suitable or workable. The GLB Act itself con- pany. Commenters argued that employee interlocks templates that investments would not be held indefi- may allow FHCs to share expertise—both giving and nitely, and the agencies believe that it is better to gaining—with portfolio companies without becomestablish a regulatory safe harbor that gives assurance ing involved in the routine management or operation regarding holding periods, and thereby allow FHCs of the company. to plan their investment strategies, than for the agen- In response to commenters, the final rule has been cies to forego providing regulatory guidance and modified from the interim rule to convert its absolute impose decisions on holding periods for each invest- prohibition into a rebuttable presumption. This proment on an ad hoc basis through the supervisory vides a mechanism for allowing a specific employee process. The uncertainty and potential for reaching and junior officer interlock in the limited situation different decisions regarding holding periods as in which the interlock does not rise to the level of different supervisors examine competing banking routine management or operation of the portfolio organizations would frustrate planning by investing company. companies and, we believe, in the end lead to a firm The GLB Act allows an investing FHC to routinely rule in any event. To accommodate situations in manage or operate a portfolio company in special which the regulatory safe harbor is not sufficient in an circumstances when intervention is necessary or individual case, the final rule allows financial holding required in order to enable the investing company to companies to seek approval, when events require it, obtain a reasonable return on the investment on its to hold an investment longer than the periods estab- resale or disposition. The final rule adopts this statulished in the rule. tory standard. For example, an FHC may become As I noted earlier, the GLB Act restricts the ability involved in the routine management of a portfolio of FHCs to routinely manage or operate companies company to avoid or address a significant operating held under the merchant banking authority. The final loss or in connection with a loss of senior managerule contains several safe harbors and examples of ment at the portfolio company. The final rule also routine management and operation. For example, the replaces the interim rule's requirement that an FHC final rule allows representatives of an FHC to serve obtain Board approval to routinely manage a comon the board of directors of a portfolio company pany for more than six months with a provision that without running afoul of the routine management the FHC provide the Board with notice in the event restrictions. In addition, an FHC may enter into that the FHC routinely manages a portfolio company agreements that restrict extraordinary actions of the for more than nine months. This notice provision will portfolio company, such as the sale of major assets or allow the Board to monitor management intervenacquisition of other companies, without the approval tions to ensure compliance with the limitations in the of the investing company. Director interlocks and GLB Act and the final rule. agreements that govern extraordinary transactions are The final rule also contains several provisions that common in connection with merchant banking invest- are designed to encourage the safe and sound conduct Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

408 Federal Reserve Bulletin • June 2001 of merchant banking activities. In particular, the final $6 billion or 30 percent of the FHCs tier 1 capital, rule requires that FHCs establish policies, systems, and the other triggered when the direct investments and procedures to monitor and address the risks asso- of an FHC, excluding investments in private equity ciated with their merchant banking activities. The funds, exceed the lesser of $4 billion or 20 percent of final rule provides FHCs with significant discretion in the FHCs tier 1 capital—were designed to allow the formulating the policies, systems, and procedures Board to ensure that FHCs that devote significant that best fit the management style of the FHC and the amounts of capital to merchant banking activities had type, scope, and nature of the FHCs merchant bank- in place the types of risk-management policies, proceing activities. The Board recently issued supervisory dures, and systems to conduct these activities safely guidance that outlines some of the best practices and soundly. The Board and the Treasury indicated employed by merchant bankers for managing the that they would review the continued need for these risks of equity investment activities. That guidance thresholds when a final capital requirement for merhas been well received by the industry as useful and chant banking activities was adopted. flexible. Even though these thresholds were high and The final rule also generally requires that FHCs applied only to the newly authorized merchant bankretain records sufficient to allow them to monitor and ing activities, these thresholds were very controverassess the risks and exposures associated with their sial and were viewed by many commenters as, in merchant banking activities. The final rule allows effect, caps on their merchant banking activities. Con- FHCs to assemble the records that best fit these sequently, commenters strongly urged the agencies to purposes and contemplates that FHCs may satisfy eliminate this review process or, at a minimum, to these requirements with the types of records and remove the component of the thresholds that was reports kept in the ordinary course of conducting based on the absolute dollar size of the FHCs mermerchant banking activities. The final rule does not chant banking portfolio. adopt the provision of the original interim rule that The agencies continue to believe that capital and required these records to be maintained at a central strong risk-management policies and procedures prolocation. FHCs must already make all of their vide the best protection for FHCs that engage in records, including their merchant banking records, merchant banking activities. Consequently, in line available to the Federal Reserve in the examination with the comments on this matter and the intent process. behind the original proposal, the final rule takes two The interim rule included two reporting require- steps. First, the absolute dollar thresholds in the ments for FHCs engaged in merchant banking activi- interim rule were eliminated from the final rule. ties. One was a relatively brief quarterly report of the Accordingly, the thresholds are triggered only when gross amounts of investments made by the FHC, and merchant banking activities are at high proportions to the other required annual reporting of investments the FHCs capital. And recall, the thresholds trigger that were held for a substantial period—seven years an agency review process—they are not an absolute or longer. The final rule does not include either of cap on activity. these reporting requirements. A limited amount of Consistent with the original proposal, the final rule information regarding equity investments is already also contains a sunset provision that automatically collected by the banking agencies on existing regula- eliminates the entire threshold review process once tory reports. The Board is in the process of develop- the banking agencies have implemented final rules ing other reports that would focus on collection of governing the capital requirements for merchant additional basic information regarding equity invest- banking activities. As I will discuss in a moment, the ment activities, such as the total amount invested in agencies have already jointly proposed a new capital and carrying value of privately owned securities and treatment for public comment and are working publicly traded shares owned by the banking organi- toward adopting a final capital rule. I should note also zation and on individual merchant banking invest- that the thresholds may be exceeded with Board ments held for extended periods. The Board will approval, and one experienced investment firm has separately invite public comment on any new report- already reached the thresholds and received Board ing requirements in the near future. approval to exceed the thresholds. The interim rule contained two thresholds that The GLB Act contained two provisions that govtriggered agency review of FHCs that devote signifi- ern the relationship between depository institutions cant amounts of capital to merchant banking activi- and portfolio companies owned by the same FHC: ties. These thresholds—one triggered when total one prohibits cross-marketing activities, and the other merchant banking investments exceed the lesser of restricts credit and other funding transactions. Both Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 409 are contained in the GLB Act to reinforce the separa- menters did not disagree with our concern that tion between banking and commerce. The prohibition merchant banking activities are riskier than more in the GLB Act on the ability of a depository institu- traditional banking activities. Nonetheless, most comtion controlled by an FHC to cross-market its prod- menters criticized our proposed capital treatment, and ucts and services with a portfolio company that is several offered constructive alternative approaches. held under the merchant banking authority is included In addition to reviewing the public comments, we in the final rule. The final rule also clarifies that this worked with the other federal banking agencies to cross-marketing restriction does not prevent a deposi- improve the proposal in ways that took account of tory institution from marketing the shares of private commenters' concerns but also addressed the necesequity funds controlled by an affiliated FHC and does sity for risky assets to be adequately capitalized by not apply to situations in which the FHC owns less equity. Together with the other agencies we were able than 5 percent of the voting shares of the portfolio to develop a new, revised capital proposal that would company. apply uniformly to equity investments held by The final rule also adopts the presumption estab- bank holding companies and those held by depository lished by the GLB Act that applies the limits on institutions. inter-affiliate transactions contained in section 23A The banking agencies were guided by several prinof the Federal Reserve Act to transactions between ciples in considering the appropriate levels of capital a depository institution controlled by the investing that should be required as a regulatory minimum FHC and any portfolio company in which the FHC to support equity investment activities. First, equity owns at least a 15 percent equity interest. In response investment activities in nonfinancial companies gento suggestions made by commenters, the final rule erally involve greater risks than traditional bank and includes several safe harbors from this statutory pre- financial activities. As I noted, this is a principle over sumption for situations in which the Board would which there is little disagreement. Industry data on consider, absent evidence to the contrary, that the venture capital investments indicate losses on onepresumption is rebutted and the restrictions of sec- fourth to one-third of individual deals. For portfolio tion 23A would not apply. investments, studies suggest that, while some portfolios achieve extraordinary returns, nearly 20 percent lose capital. I explained in much more detail our CAPITAL PROPOSAL analysis of the risks associated with equity invest- An integral part of our original merchant banking ment activities in my testimony before this subcomproposal involved the regulatory capital that would mittee last June. If anything, the activity in the equity be required to support merchant banking activities. markets since last June has confirmed that analysis, As anyone who has experienced a downturn in the and few of the commenters on our original capital stock market will attest, an investor's chances of proposal disagreed with the substance of that analysis financial survival are greater if the investor has used or with its conclusion that equity investment activicapital rather than debt to finance their investments. ties are significantly riskier activities than most tradi- And in the case of banking organizations, it is also tional banking activities. important that the organization have sufficient capital A second and related principle is that the financial after losses associated with declines in stock prices to risks to an organization engaged in equity investment support its other activities. activities increase as the level of its investments The Board's capital proposal was intended to offset accounts for a larger portion of the organization's some of the risks from merchant banking investments capital, earnings, and activities. Banking organizaby requiring financial holding companies to limit the tions have for some time engaged in equity investamount of debt they used to support their merchant ment activities using various authorities, including banking activities. While many merchant bankers primarily Small Business Investment Companies fund their merchant banking investments entirely (SBICs) and the authority to make limited passive with equity capital—that is, each dollar of investment investments under sections 4(c)(6) and (7) of the is funded with one dollar of their own equity BHC Act. When the current capital treatment, which capital—the Board originally had proposed a regu- requires a minimum of 4 percent tier 1 capital (6 perlatory minimum requirement of 50 cents of equity cent in the case of depository institutions that must capital for each dollar invested in merchant banking. meet the regulatory well-capitalized definition), was This proposal attracted quite a bit of comment and developed, these equity investment activities were is an example of an area in which we learned from small in relation to the more traditional lending and the public comments. Importantly, most of the com- other activities of these organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

410 Federal Reserve Bulletin • June 2001 The level of these investment activities has grown are regulatory minima, and FHCs are expected to significantly in recent years, however. For example, hold capital based on their assessment of the nature investments made through SBICs owned by banking of their capital investments and the quality of the organizations have alone more than doubled in the overall risk management of these portfolios. past five years. Industrywide, investments have more The agencies announced that they would intensify than quadrupled over the same period. The grant to their supervisory review and oversight of the equity financial holding companies of a significant new investment activities at all banking organizations, authority to make equity investments under the GLB including in particular banking organizations with Act without many of the restrictions that apply to concentrations in this activity that exceed 50 percent other authorities currently used by banking organiza- of the organization's equity capital. The agencies tions to make these investments was an appropriate also indicated that they would apply higher minimum time to re-evaluate whether existing capital charges regulatory capital charges on a case-by-case basis as were adequate. appropriate in light of supervisory concerns regard- A third principle guiding the agencies' efforts is ing an organization's risk-management systems; the that the risk of loss associated with a particular equity risk, nature, size, and composition of an organizainvestment is likely to be the same regardless of the tion's portfolio of investments; market conditions; legal authority used to make the investment or and other relevant information and circumstances. whether the investment is held in the bank holding The series of marginal capital charges in our company or in the bank. In fact, the agencies' super- revised proposal is somewhat more complex than the visory experience is that banking organizations are original single-charge proposal. However, we believe increasingly making investment decisions and man- that it better reflects the reality that, as an organizaaging equity investment risks as a single business tion concentrates greater amounts of its resources in line within the organization and across legal entities. riskier activities, the organization increases its overall These organizations use different legal authorities risk profile. In order to continue to operate safely and available to different legal entities within the soundly, a banking organization must increase its organization to conduct a unified equity investment capital as it increases its risk profile. business. Commenters, including a number of members of In light of these principles, the Board and the other this subcommittee, strongly urged the agencies not agencies issued a revised proposal that would estab- to impose a higher capital charge than is currently lish special minimum regulatory capital requirements applied on investments made through SBICs. These for equity investments in nonfinancial companies. commenters argued that SBICs serve the important This capital treatment would apply symmetrically public purpose of encouraging investment in small to equity investment activities of bank holding businesses, are already subject to investment limitacompanies and banks. tions imposed by the Congress and the Small Busi- Under the original capital proposal made last ness Administration, and to date have been generally March, the Board proposed to apply a uniform profitable. 50 percent capital charge to all equity investments Commenters made similar arguments in support of made by bank holding companies. The revised pro- an exception from higher capital charges for investposal would apply a series of marginal capital charges ments made by state banks under special grandfatherthat increase with the level of a banking organiza- ing authority preserved by section 24 of the Federal tion's overall exposure to equity investment activi- Deposit Insurance Act (FDI Act). These investments ties relative to the institution's tier 1 capital. Under have also been reviewed and limited by the Congress the new proposal, with several exceptions that I will and are subject to further review and limitation by the discuss in a moment, a modest 8 percent equity FDIC. capital charge would apply to the portion of the The agencies recognized substantial merit in these banking organization's equity investment portfolio arguments. Accordingly, we revised the capital prothat totals less than 15 percent of the tier 1 capital posal so that it does not generally impose a higher of the organization, and a 12 percent equity capital capital charge on investments made through SBICs. charge would apply to the portion of the portfolio Because SBICs may, under certain conditions, hold between 15 percent and 25 percent of the banking investments that exceed the statutory limitations organization's tier 1 capital. A 25 percent equity imposed on bank investments in SBICs, the revised capital charge would be applied to the portion of a proposal would apply the higher marginal capital portfolio that exceeds 25 percent of the tier 1 capital charges to SBIC investments only when the total of the investing banking organization. These charges amount of these investments exceeds 15 percent of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 411 the parent bank or bank holding company's tier 1 ments. As a result, we believe that internal capital capital. This 15 percent threshold allows banking models are important and ideally should serve as organizations a cushion for growth between the statu- the basis for both economic and regulatory capital tory investment limit and the higher capital charges requirements. However, the development of internal under the revised proposal. risk models is still in its infancy, with many organiza- The proposal also includes an exception for invest- tions only beginning to develop internal models and, ments held by state banks in accordance with the even with those that have begun this task, with catespecial grandfather rights under section 24 of the FDI gories of assets and activities—such as portfolios Act. As commenters noted, these investments are of equities—still not adequately factored into most limited by statute in both amount and type and may models. We are committed to enhancing our ability only be made by a small and diminishing group of as supervisors to assess and aid in the development of grandfathered companies. strong internal models. We have been working with Section 24 of the FDI Act also permits other, the Basel Capital Committee on a proposal, recently non-grandfathered investments with the approval of published for public comment, that would focus reguthe FDIC. In nearly all cases, the FDIC has imposed latory capital requirements at least at large banking a higher capital charge on these investments than the organizations on internal risk models developed by marginal charges included in the revised interagency the organization and verified by the regulatory proposal. Consequently, although the proposal covers agencies. these investments, it would not have an effect on the But neither the banking agencies nor most banking regulatory capital required for these investments. The organizations are at the stage where we can rely proposal would allow the FDIC, in exceptional indi- on these models as a replacement for regulatory vidual cases, to impose a lesser minimum regulatory minimum capital requirements. We view our revised capital charge on investments under section 24 where capital proposal for equity investment activities as a the total of all investments made by the organization bridge to a robust internal model approach—one that under section 24 and through an SBIC is less than covers a banking organization's assets generally and 15 percent of the organization's tier 1 capital. The not just a subset of those assets. When we cross that FDIC also retains authority to impose greater capital bridge will depend on a number of factors, including requirements on any investment activities under sec- how the Basel proposal is received and develops, on tion 24 of the FDI Act as it deems appropriate to the ability of banking organizations to develop their protect the deposit insurance funds and ensure the own models, and on our own ability to evaluate and safe and sound operation of the investing bank. verify the models that develop. For those banking One of the comments made most often in response organizations that engage in equity investment activito our original capital proposal was that the Board ties but choose not to adopt internal capital models, had selectively adopted part of the internal risk mod- the revised capital proposal will help provide a stanels used by banking and securities firms to assess the dard against which we can analyze the organizations' capital risks and needs of their organization—the part capital adequacy. of the model that recognized that equity investment The invitation for public comments on the revised activities are risky activities that require substantial capital proposal is still open and will remain open capital support—without also adopting the parts until April 16, 2001. We find the public comment of those internal models that assess lower capital process to be a useful and instructive discipline, charges to activities with less risk. Some com- especially for analyzing rules that will govern menters urged the Board to rely on internal capital new activities and the banking industry broadly. As models for assessing all aspects of regulatory capital always, the Board will carefully review all of the requirements. comments that we receive. While we have not Internal risk-based models for assessing capital reached a final decision on the capital proposal, we adequacy of an organization would, indeed, better believe that we are homing in on a final rule that will reflect the individual risk profile of individual organi- address the information and concerns of commenters, zations than the more general formulas that currently will be workable, and importantly, will enhance underlie the agencies' regulatory capital require- safety and soundness. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

412 Announcements ACTION BY THE FEDERAL OPEN MARKET directors of the Federal Reserve Bank of St. Louis, COMMITTEE AND A DECREASE IN THE effective April 20, 2001. DISCOUNT RATE The Federal Open Market Committee decided on FINAL RULE ON SECTION 23A OF THE April 18, 2001, to lower its target for the federal FEDERAL RESERVE ACT REGARDING funds rate by 50 basis points to AV2 percent. In a BANK AFFILIATES related action, the Board of Governors approved a The Federal Reserve Board announced on May 4, 50 basis point reduction in the discount rate to 2001, that it is publishing a final rule granting exemp- 4 percent. tions from and providing interpretations of sec- The FOMC has reviewed prospects for the econtion 23A of the Federal Reserve Act. The Board omy in light of the information that has become approved the final rule at its meeting on May 2, 2001. available since its March meeting. A significant The Board proposed and sought public comment reduction in excess inventories seems well advanced. on the exemptions and interpretations in June 1998. Consumption and housing expenditures have held However, the content of the rule is incorporated in a up reasonably well, though activity in these areas has newly proposed Regulation W, which will allow an flattened recently. Although measured productivity additional opportunity for public comment. probably weakened in the first quarter, the impressive Section 23A restricts loans by a bank to an affiliate, underlying rate of increase that developed in recent asset purchases by a bank from an affiliate, and other years appears to be largely intact. transactions between a bank and its affiliates. Nonetheless, capital investment has continued to The rule's first exemption and interpretation soften and the persistent erosion in current and applies to loans made by an insured depository instiexpected profitability, in combination with rising tution to an unaffiliated borrower that uses the prouncertainty about the business outlook, seems poised ceeds of the loan to purchase certain third-party secuto dampen capital spending going forward. This rities through a registered broker-dealer affiliate of potential restraint, together with the possible effects the institution acting exclusively as a broker or riskof earlier reductions in equity wealth on consumption less principal in the transaction. The second exempand the risk of slower growth abroad, threatens to tion applies to loans by an insured depository institukeep the pace of economic activity unacceptably tion to an unaffiliated borrower that uses the proceeds weak. As a consequence, the Committee agreed that to purchase certain securities underwritten or sold as an adjustment in the stance of policy is warranted principal by a registered broker-dealer affiliate of the during this extended intermeeting period. institution. The Committee continues to believe that against The remaining interpretation expands the ability of the background of its long-run goals of price stability an insured depository institution to purchase from an and sustainable economic growth and of the informaaffiliate of a registered broker-dealer securities that tion currently available, the risks are weighted mainly have a ready market and prices that can be verified toward conditions that may generate economic weakfrom a reliable independent source. The final rule ness in the foreseeable future. will be published in the Federal Register. In taking the discount rate action, the Federal Reserve Board approved requests submitted by the boards of directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta, GUIDANCE ON PROTECTION OF Kansas City, Minneapolis, Dallas, and San Francisco. CUSTOMER FINANCIAL INFORMATION Subsequently, the Board approved on April 19, AGAINST IDENTITY THEFT 2001, similar requests by the boards of directors of the Federal Reserve Banks of Richmond and The Federal Reserve Board announced on April 30, Chicago, effective immediately, and by the board of 2001, the issuance of supervisory guidance address- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

413 ing how banking organizations should protect cus- ing, due diligence in assessing deposit brokers and tomer information against identity theft. the risk to earnings and capital, and management Recommended steps to safeguard information information systems that identify non-relationship or include establishing procedures to verify the identity higher-cost funding sources that can be monitored of individuals applying for financial products, to pre- and managed. vent fraudulent address changes, and to block pretext The advisory lists potential red flags that may callers from using personal information to imper- indicate the need for closer supervisory review, sonate account holders and gain access to account including newly chartered institutions with an aggresinformation. sive growth strategy and few relationship deposits, Guidance is also provided to banking organizations high on- or off-balance-sheet growth rates, and inadon completing Suspicious Activity Reports for report- equate systems or controls. ing offenses associated with identity theft and pretext calling that are filed with law enforcement agencies. The guidance is consistent with the Gramm- Leach-Bliley Act, which directs the Board and other GUIDANCE ON RISK MANAGEMENT OF federal agencies to ensure that financial institutions LEVERAGED FINANCING have policies, procedures, and controls in place to prevent the unauthorized disclosure of customer The federal bank regulatory agencies on April 11, financial information and to deter and detect fraudu- 2001, issued guidance on sound risk-management lent access to such information. practices for institutions engaged in leveraged financ- Supervision and Regulation (SR) Letters are the ing. Federal Reserve's primary means of communicating The guidance, issued by the Board of Governors of key policy directives to its examiners, supervisory the Federal Reserve System, the Federal Deposit staff, and the banking industry. The guidance is con- Insurance Corporation, the Office of the Comptroller tained in SR Letter 01-11, Identity Theft and Pretext of the Currency, and the Office of Thrift Supervision, Calling, which can be accessed on the Board's web augments previously issued individual statements. site at www.federalreserve.gov/boarddocs/srletters Over the past year, deterioration has emerged in the leveraged finance portfolios of many banking organizations, driven in part by the relaxation of INTERAGENCY ADVISORY ON BROKERED AND sound lending standards in past years. In response, RATE-SENSITIVE DEPOSITS affected institutions have strengthened their lending standards and are amending their risk-management The federal bank and thrift regulatory agencies issued practices. The purpose of this guidance is to clarify on May 11, 2001, an advisory on the risks of bro- supervisors' expectations regarding sound practices kered and other rate-sensitive deposits. The agencies and facilitate their adoption. warn that excessive reliance on these types of fund- Leveraged financing has been an important financing products without proper risk-management safe- ing vehicle for mergers and acquisitions, business guards has the potential to weaken an institution's recapitalizations, and business expansions. These financial condition. transactions are characterized by a degree of financial Deposit brokers have traditionally provided inter- leverage that significantly exceeds industry norms mediary services for financial institutions and inves- measured by various debt, cash flow, or other ratios. tors. Today, however, the Internet and other auto- Consequently, leveraged borrowers generally have a mated service providers enable investors who focus diminished ability to respond to changing economic on yield to easily identify high-yield deposit sources. conditions or unexpected events, creating significant Customers who focus exclusively on yield can be a implications for an institution's overall credit-risk less stable source of funding than typical relationship exposure and challenges for bank risk-management deposit customers. If market conditions change, these systems. customers may rapidly transfer funds elsewhere in a Leveraged finance activities can be conducted in manner similar to that of wholesale investors. a safe and sound fashion if pursued with a risk- Financial institutions that use significant amounts management structure that provides for appropriate of brokered and rate-sensitive deposits should ensure underwriting, pricing, monitoring, and controls. This that proper risk-management practices are in place. guidance highlights the need for comprehensive Among the practices cited in the advisory are control credit analysis processes, frequent monitoring, and structures to limit concentrations in this type of fund- detailed portfolio reports to better understand and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

414 Federal Reserve Bulletin • June 2001 manage the inherent risk in these leveraged finance final rules, under sections 23A and 23B of the Fedportfolios. eral Reserve Act, requiring institutions to (1) adopt Many leveraged transactions are underwritten with policies and procedures to monitor, manage, and conreliance on the imputed value of a business ("enter- trol credit exposures arising from derivatives transacprise value"), which often exhibits a high degree of tions with affiliates and intraday credit extensions volatility. The guidance stresses the importance of to affiliates and (2) subject such transactions to the sound valuation methodologies and ongoing stress market terms requirement of section 23B. The Board testing and monitoring of enterprise values. The state- voted to issue the rule at its meeting on May 2, ment also provides guidance about the risk rating 2001. of leveraged finance loans and how enterprise value Sections 23A and 23B restrict loans by a bank to should be evaluated in the risk-rating process. an affiliate, asset purchases by a bank from an affiliate, and other transactions between a bank and its affiliates. The interim rules are effective January 1, REQUEST FOR COMMENT ON AMENDMENT TO 2002. REGULATION H REGARDING INTERSTATE The rules will be published in the Federal Regis- BRANCHING AND DEPOSITS ter. Comment is requested by August 15, 2001. Concurrent with these interim final rules, the Board The Federal Reserve Board announced on April 11, issued a proposal for a new Regulation W, which also 2001, that it is requesting public comment on a seeks comment on how to address these transactions proposal that would amend Regulation H (Member- under section 23A. ship of State Banking Institutions in the Federal Reserve System) to expand the prohibition against deposit production offices to include any branch of a REQUEST FOR COMMENT ON PROPOSED bank controlled by an out-of-state bank holding com- NEW REGULATION W REGARDING BANKS pany. Comment is requested by June 8, 2001. AND AFFILIATES Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 prohibits banks The Federal Reserve Board on May 2, 2001, decided from engaging in interstate branching primarily for to seek public comment on a proposed new Regulathe purpose of deposit production. It was intended to tion W that would comprehensively implement secensure that interstate branching authority would not tions 23A and 23B of the Federal Reserve Act. The result in the taking of deposits from a community sections restrict loans by a bank to an affiliate, asset without banks reasonably helping to meet the credit purchases by a bank from an affiliate, and other needs of that community. transactions between a bank and its affiliates. Section 106 of the Gramm-Leach-Bliley Act of Regulation W would unify in one document vari- 1999 expanded the coverage of section 109 of the act ous Board and staff interpretations issued over the to include any branch of a bank controlled by an years as well as several new interpretations of the out-of-state bank holding company. The Board's statute. It would also provide several additional proposal amends the regulatory prohibition against exemptions from the statute. The purpose of secbranches being used as deposit production offices to tions 23A and 23B and Regulation W is to limit a include any bank or branch of a bank controlled by bank's risk of loss in transactions with affiliates and an out-of-state bank holding company, including a limit a bank's ability to transfer to its affiliates the bank consisting only of a main office. benefits arising from its access to the federal safety The proposed amendment to Regulation H is simi- net. Comment is requested within ninety days of publar to proposed amendments to regulations of the lication in the Federal Register. Office of the Comptroller of the Currency and the Until Regulation W is finalized, all previously Federal Deposit Insurance Corporation. issued, valid Board and staff interpretations regarding sections 23A and 23B remain in effect. Separately, the Board, as required by the Gramm- REQUEST FOR COMMENT ON INTERIM RULE Leach-Bliley Act, approved an interim final rule on ON DERIVATIVES TRANSACTIONS BETWEEN May 4, 2001, under sections 23A and 23B, requiring BANKS AND AFFILIATES institutions to adopt policies and procedures designed to monitor, manage, and control credit exposures The Federal Reserve Board announced on May 4, arising from derivatives transactions with affiliates 2001, that it is seeking public comment on interim and intraday credit extensions to affiliates. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 415 The interim rules are effective January 1, 2002. unaffiliated borrower that uses the proceeds of the Comments are requested within ninety days of publi- loan to purchase certain third-party securities through cation in the Federal Register. a registered broker-dealer affiliate of the institution. The Board also approved on May 4, 2001, a final The second exemption applies to loans by an insured rule granting exemptions from and providing inter- depository institution to an unaffiliated borrower pretations of section 23A. The Board proposed and that uses the proceeds to purchase certain securisought public comment on the exemptions and inter- ties underwritten or sold as principal by a registered pretations in June 1998. The rule is effective thirty broker-dealer affiliate of the institution. The remaindays after publication in the Federal Register. ing interpretation expands the ability of an insured However, the content of the rule is incorporated depository institution to purchase from a registered in the proposed Regulation W, which will allow an affiliate of a broker-dealer securities that have a additional opportunity to comment. ready market and prices that can be verified from a The first exemption and interpretation applies to reliable independent source. • loans made by an insured depository institution to an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

417 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A Effective April 13, 2001, 12 C.F.R. Part 225 is amended as follows: The Board of Governors is amending 12C.F.R. Part 201, its Regulation A (Extensions of Credit by Federal Reserve Part 225—Bank Holding Companies and Change in Banks; Change in Discount Rate), to reflect its approval of Bank Control (Regulation Y) a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. 1. The authority citation for Part 225 continues to read as Effective April 18, 2001, 12 C.F.R. Part 201 is amended follows: as follows: Part 201—Extensions of Credit by Federal Reserve Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 183lp-1, 1843(c)(8), 1843(k), 1844(b), 1972(1), 2903, Banks (Regulation A) 3106, 3108, 3310, 3331-3351, 3907, and 3909. 1. The authority citation for Part 201 continues to read as 2. Section 225.86 is amended by adding new paragraphs follows: (d) and (e) to read as follows: Authority: 12U.S.C. 343 et seq., 347a, 374b, 347c, 347d, Section 225.86—What activities are permissible for 348 et seq., 357, 374, 374a and 461. any financial holding company? 2. Section 201.51 is revised to read as follows: Section 201.51—Adjustment credit for depository (d) Activities determined to be financial in nature or inciinstitutions. dental to financial activities by the Board— (1) Acting as a finder—Acting as a finder in bringing The rates for adjustment credit provided to depository together one or more buyers and sellers of any institutions under section 201.3(a) are: product or service for transactions that the parties themselves negotiate and consummate. (i) What is the scope of finder activities? Acting Federal Reserve Bank Rate Effective as a finder includes providing any or all of the Boston 4.0 April 18, 2001 following services through any means— New York 4.0 April 18, 2001 (A) Identifying potential parties, making in- Philadelphia 4.0 April 18, 2001 Cleveland 4.0 April 18, 2001 quiries as to interest, introducing and re- Richmond 4.0 April 19, 2001 ferring potential parties to each other, and Atlanta 4.0 April 18, 2001 Chicago 4.0 April 19, 2001 arranging contacts between and meetings St. Louis 4.0 April 20, 2001 of interested parties; Minneapolis 4.0 April 18, 2001 Kansas City 4.0 April 18, 2001 (B) Conveying between interested parties ex- Dallas 4.0 April 18, 2001 San Francisco 4.0 April 18, 2001 pressions of interest, bids, offers, orders and confirmations relating to a transaction; and (C) Transmitting information concerning FINAL RULE—AMENDMENT TO REGULATION Y products and services to potential parties in connection with the activities described The Board of Governors is amending 12 C.F.R. Part 225, in paragraphs (d)(l)(i)(A) and (B) of this its Regulation Y (Bank Holding Companies and Change in section. Bank Control). The Board is adopting technical amend- (ii) What are some examples of finder services? The ments to the financial holding company provisions of Reg- following are examples of the services that may ulation Y to restore provisions that were adopted in De- be provided by a finder when done in accorcember 2000, and inadvertently deleted from the Code of dance with paragraphs (d)(l)(iii) and (iv) of this Federal Regulations. section. These examples are not exclusive. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

418 Federal Reserve Bulletin • June 2001 (A) Hosting an electronic marketplace on the that use the finder service and the financial holding company's Internet web circumstances under which the site by providing hypertext or similar finder service will match bids and links to the web sites of third party buyers offers submitted by buyers and or sellers. sellers; and (B) Hosting on the financial holding com- (ii) Govern the manner in which buypany's servers the Internet web site of— ers and sellers may bind them- (1) A buyer (or seller) that provides infor- selves to the terms of a specific mation concerning the buyer (or transaction. seller) and the products or services it (C) A finder may not— seeks to buy (or sell) and allows sell- (1) Take title to or acquire or hold an ers (or buyers) to submit expressions ownership interest in any product or of interest, bids, offers, orders and service offered or sold through the confirmations relating to such prod- finder service; ucts or services; or (2) Provide distribution services for phys- (2) A government or government agency ical products or services offered or that provides information concerning sold through the finder service; the services or benefits made avail- (3) Own or operate any real or personal able by the government or govern- property that is used for the purpose ment agency, assists persons in com- of manufacturing, storing, transportpleting applications to receive such ing, or assembling physical products services or benefits from the govern- offered or sold by third parties; or ment or agency, and allows persons to (4) Own or operate any real or personal transmit their applications for ser- property that serves as a physical lovices or benefits to the government or cation for the physical purchase, sale agency. or distribution of products or services (C) Operating an Internet web site that allows offered or sold by third parties. multiple buyers and sellers to exchange (D) A finder may not engage in any activity information concerning the products and that would require the company to regisservices that they are willing to purchase ter or obtain a license as a real estate or sell, locate potential counterparties for agent or broker under applicable law. transactions, aggregate orders for goods (iv) What disclosures are required? A finder must or services with those made by other par- distinguish the products and services offered ties, and enter into transactions between by the financial holding company from those themselves. offered by a third party through the finder (D) Operating a telephone call center that pro- service. vides permissible finder services. (2) [Reserved] (iii) What limitations are applicable to a financial (e) Activities permitted under section 4(k)(5) of the Bank holding company acting as a finder? Holding Company Act (12 U.S.C. 1843(h)(5)). (A) A finder may act only as an intermediary (1) The following types of activities are financial in between a buyer and a seller. nature or incidental to a financial activity when (B) A finder may not bind any buyer or seller conducted pursuant to a determination by the to the terms of a specific transaction or Board under paragraph (e)(2) of this section: negotiate the terms of a specific transac- (i) Lending, exchanging, transferring, investing tion on behalf of a buyer or seller, except for others, or safeguarding financial assets that a finder may— other than money or securities; (1) Arrange for buyers to receive pre- (ii) Providing any device or other instrumentality ferred terms from sellers so long as for transferring money or other financial asthe terms are not negotiated as part of sets; and any individual transaction, are pro- (iii) Arranging, effecting, or facilitating financial vided generally to customers or broad transactions for the account of third parties. categories of customers, and are made (2) Review of specific activities. available by the seller (and not by the (i) Is a specific request required? A financial financial holding company); and holding company that wishes to engage on the (2) Establish rules of general applicabil- basis of paragraph (e)(1) of this section in an ity governing the use and operation of activity that is not otherwise permissible for a the finder service, including rules that— financial holding company must obtain a de- (i) Govern the submission of bids termination from the Board that the activity is and offers by buyers and sellers permitted under paragraph (e)(1). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 419 (ii) Consultation with the Secretary of the Trea- Section 26la. 13—Exemptions. sury. After receiving a request under this section, the Board will provide the Secretary of (tl) ^ "i* the Treasury with a copy of the request and (9) BGFRS-31 Protective Information System. consult with the Secretary in accordance with section 4(k)(2)(A) of the Bank Holding Company Act (12 U.S.C. 1843(k)(2)(A)). (iii) Board action on requests. After consultation (c^ ^ with the Secretary, the Board will promptly (10) BGFRS-25 Multi-rate Feedback Records. make a written determination regarding whether the specific activity described in the request is included in an activity category listed in paragraph (e)(1) of this section and is therefore either financial in nature or inciden- ORDERS ISSUED UNDER BANK HOLDING COMPANY tal to a financial activity. ACT (3) What factors will the Board consider? In evaluat- Orders Issued Under Section 3 of the Bank Holding ing a request made under this section, the Board Company Act will take into account the factors listed in section 4(k)(3) of the BHC Act (12 U.S.C. 1843(k)(3)) that Countrywide Credit Industries, Inc. it must consider when determining whether an Calabasas, California activity is financial in nature or incidental to a financial activity. Countrywide Financial Holding Company, Inc. (4) What information must the request contain? Any Calabasas, California request by a financial holding company under this section must be in writing and must: Effinity Financial Corporation (i) Identify and define the activity for which the Alexandria, Virginia determination is sought, specifically describing what the activity would involve and how Order Approving Formation of Bank Holding Companies the activity would be conducted; and and Determination on Financial Holding Company (ii) Provide information supporting the requested Elections determination, including information regarding how the proposed activity falls into one of Countrywide Credit Industries, Inc. and two of its subsidthe categories listed in paragraph (e)(1) of this iaries, Countrywide Financial Holding Company, Inc. section, and any other information required by ("CFHC") and Effinity Financial Corporation ("Effinity the Board concerning the proposed activity. Financial") (collectively, "Applicants"), have requested the Board's approval under section 3(a)(1) of the Bank Holding Company Act ("BHC Act") (12 U.S.C. FINAL RULE—AMENDMENT TO RULES REGARDING § 1842(a)(1)) to become bank holding companies by ac- ACCESS TO PERSONAL INFORMATION UNDER THE quiring control of Treasury Bank, Ltd., Washington, D.C. PRIVACY ACT ("Bank").1 As part of their proposal to become bank holding companies, Applicants have filed with the Board The Board of Governors is amending 12 C.F.R. Part 261a, elections to become financial holding companies pursuant its Rules Regarding Access to Personal Information Under to section 4(1) of the BHC Act (12 U.S.C. § 1843(1)) and the Privacy Act. section 225.82 of the Board's Regulation Y (12 C.F.R. Effective May 21, 2001, 12 C.F.R. Part 261a is amended 225.82). as follows: Notice of the proposal, affording interested persons an opportunity to comment, has been published (65 Federal Part 261a—Rules Regarding Access to Personal Register 51,618 (2000)). The time for filing comments has Information Under the Privacy Act of 1974 expired, and the Board has considered the proposal and all 1. The authority citation for Part 261a continues to read 1. Applicants intend to convert Bank from a District of Columbia as follows: corporation with banking powers to a national banking association. Applicants then propose to merge Bank with an interim subsidiary national bank controlled by Effinity Financial, rename the merger Authority: 5 U.S.C. 552a. survivor Effinity Bank, National Association, and move Bank's headquarters to Alexandria, Virginia. On consummation of the proposal, Countrywide Credit Industries would own 100 percent of CFHC. 2. In section 261a. 13, revise paragraph (b)(9) and add a CFHC would own 79 percent of Effinity Financial, which in turn new paragraph (c)(l 1) to read as follows: would own 100 percent of Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

420 Federal Reserve Bulletin • June 2001 comments received in light of the factors set forth in result of the proposed acquisition, current customers of the section 3 of the BHC Act. bank to be acquired would have access to products and Countrywide Credit Industries, Inc. (together with its services offered by Countrywide that the bank currently subsidiaries "Countrywide") engages primarily in the busi- does not offer.6 Moreover, customers of Countrywide ness of making and purchasing mortgage loans in the would have access to an additional source of financial United States. Countrywide also conducts other activities services, including mortgage loan products. The Board has that are related to mortgage lending, such as servicing reviewed all information submitted by Applicants related loans, acting as a broker-dealer for mortgage-backed secu- to the convenience and needs factor and concludes, based rities, and underwriting and selling homeowners' and other on all the facts of record, that considerations relating to types of insurance. In addition, Countrywide is engaged convenience and needs are consistent with approval. abroad in mortgage lending and data processing through several foreign subsidiaries and joint ventures with foreign Financial and Managerial Considerations companies.2 Section 3 of the BHC Act requires the Board to consider Competition and Convenience and Needs the financial and managerial resources and future prospects of the companies and banks involved in a bank acquisition Section 3 of the BHC Act prohibits the Board from approv- proposal.7 As part of this analysis, the Board has reviewed ing a proposal that would result in a monopoly or would be Applicants' operating plan and notes that Bank has hired in furtherance of any attempt to monopolize the business of management officials with significant banking experience.8 banking. The BHC Act also prohibits the Board from In addition, the Board has taken into account Countryapproving a proposed acquisition that substantially would wide's financial resources, including its capital levels, cash lessen competition or tend to create a monopoly in any reserves, and ability to serve as a source of strength to relevant banking market, unless the anticompetitive effects Bank. The Board also has reviewed confidential superviclearly are outweighed in the public interest by the proba- sory and examination information on Bank and publicly ble effect of the proposal in meeting the convenience and reported financial and other information on both Bank and needs of the community to be served.3 Countrywide. Moreover, the Board has consulted with the Applicants currently do not own or control a bank, as OCC concerning the financial and managerial resources that term is defined in the BHC Act, and propose to acquire and operating plan of Bank, particularly on Bank's proan existing bank and expand the scope of its operations. posed relocation, Internet focus, and business plan. Applicants propose that Bank would focus on providing a After considering all the facts of record, the Board full range of banking products and services through the concludes that the financial and managerial resources and Internet. Based on the facts of record, the Board concludes future prospects of Countrywide and Bank are consistent that consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market, tion as an Internet bank. The Board notes that Bank's primary federal and that competitive considerations are consistent with banking supervisor, the OCC, has reviewed Bank's proposed CRA approval. plan, including the proposed assessment area, and determined that the Section 3 of the BHC Act also requires the Board to CRA plan is appropriate in light of the proposed changes in Bank's location and current business. consider the effect of the transaction on the convenience 6. Commenter also alleged without providing supporting data that and needs of the community to be served.4 In evaluating Countrywide's subprime lending subsidiaries focused on minority this factor, the Board places particular emphasis on the individuals for high-interest loans and that Countrywide lacked aderatings the banks involved in a proposal received at their quate fair lending procedures. Countrywide has stated that its subprime lending subsidiaries provide financing to customers who most recent examinations under the Community Reinvestmight not otherwise qualify for credit and has provided information ment Act (12 U.S.C. § 2901 et seq.) ("CRA"). As of about steps taken by these subsidiaries to ensure that individuals who February 1998, Bank received a satisfactory CRA rating qualify for conventional loans are informed about prime credit prodfrom the Office of the Comptroller of the Currency ucts. The Board has forwarded the commenter's allegations to the ("OCC"). On consummation of the proposal, Bank would Department of Housing and Urban Development, the Department of Justice, and the Federal Trade Commission, the federal agencies that be located in Alexandria, Virginia, and would offer its have responsibility for enforcing fair lending laws for nondepository products and services primarily through the Internet.5 As a lending companies. 7. 12 U.S.C. § 1842(c)(2). 8. Bank plans to have a contractual arrangement with Country- 2. Countrywide has informed the Board that it intends to retain its wide's primary operating subsidiary, Countrywide Home Loans, Inc. existing nonbanking activities under section 4(k) of the BHC Act ("CHL"), regarding the origination of mortgage loans. Under this (12 U.S.C. § 1843(k)) in accordance with the post-transaction notice arrangement, CHL would include Bank's mortgage loan products procedure described in section 225.87 of Regulation Y (12C.F.R. among the more than 200 products it offers to CHL customers. If a 225.87). customer chooses a Bank product, CHL would take credit and other 3. 12 U.S.C. § 1842(c)(1). information from customers and transmit a detailed summary of that 4. 12 U.S.C. § 1842(c)(2). information to Bank. A Bank official independently would review the 5. The Board received comments on the proposal from one organi- information about the potential borrower and decide whether to apzation, which expressed concern that Bank's proposed assessment prove the loan. Bank would fund the loan, and all mortgage loans area under the CRA was inappropriate in light of its proposed opera- originated using this procedure would be booked as assets of Bank. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 421 with approval, as are other supervisory factors the Board is Amplicon, Inc. required to consider under section 3 of the BHC Act. Santa Ana, California Order Approving Formation of a Bank Holding Conclusion Regarding Section 3 Application Company and Acquisition of a Bank Amplicon, Inc. ("Amplicon") has requested the Board's Based on the foregoing and in light of all the facts of approval under section 3(a)(1) of the Bank Holding Comrecord, the Board has determined that the application pany Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to beshould be, and hereby is, approved. The Board's approval come a bank holding company by acquiring all the voting specifically is conditioned on compliance by Countrywide shares of California First National Bank, Santa Ana, Caliwith all the commitments made in connection with the fornia ("Bank"), a de novo bank. Amplicon also has application. For purposes of this action, the commitments requested the Board's approval under sections 4(c)(8) and and conditions on which the Board relied in reaching its 4(j) of the BHC Act (12 U.S.C. §§ 1843(c)(8) and 1843(j)) decision are deemed to be conditions imposed in writing and section 225.24 of the Board's Regulation Y (12 C.F.R. by the Board in connection with its findings and decision 225.24) to retain certain nonbanking businesses and and, as such, may be enforced in proceedings under appli- thereby engage in leasing personal property and acting as cable law. agent, broker, and adviser in leasing such property in The acquisition of Bank shall not be consummated be- accordance with section 225.28(b)(3) of the Board's Regufore the fifteenth calendar day after the effective date of lation Y (12 C.F.R. 225.28(b)(3)). this order, and the proposal shall not be consummated later Notice of the proposal, affording interested persons an than three months after the effective date of this order, opportunity to comment, has been published (65 Federal unless such period is extended for good cause by the Board Register 26,206 (2000)). The time for filing comments has or the Federal Reserve Bank of Richmond, acting pursuant expired, and the Board has considered the proposal and all to delegated authority. comments received in light of the factors set forth in sections 3 and 4 of the BHC Act. Amplicon is an operating company that provides per- Financial Holding Company Declaration sonal property leases, concentrating on leasing computer networks and computer equipment to small businesses. Amplicon offers its products nationally through the Inter- Applicants also have filed with the Board elections to net and by traditional means. This proposal involves the become financial holding companies pursuant to section acquisition of a de novo bank by Amplicon, which cur- 4(1) of the BHC Act and section 225.82 of Regulation Y. rently does not own a commercial bank. Applicants have certified that Bank, the only depository institution that Applicants would control, will be well Competition and Convenience and Needs Considerations capitalized and well managed on consummation of the proposal. Applicants have provided all other information Section 3 of the BHC Act prohibits the Board from approvrequired by section 225.82(f) of Regulation Y. ing a proposal that would result in a monopoly or would be The Board has reviewed the CRA rating of Bank. As in furtherance of any attempt to monopolize the business of discussed above, Bank received a satisfactory rating at its banking. The BHC Act also prohibits the Board from most recent examination under the CRA. Based on all the approving a proposed acquisition that substantially would facts of record, the Board has determined that, on the date lessen competition or tend to create a monopoly in any Applicants consummate the proposed acquisition of Bank, relevant banking market, unless the anticompetitive effects the financial holding company elections by Applicants will clearly are outweighed in the public interest by the probabe complete for purposes of section 225.82 of Regula- ble effect of the proposal in meeting the convenience and tion Y. Unless the Board notifies Applicants otherwise needs of the community to be served.1 before consummation of the proposal, the declaration to As noted above, consummation of the proposal would become financial holding companies also will become ef- result in the establishment of a de novo bank, which would fective for purposes of section 4(1) of the BHC Act and increase the number of alternative sources of banking sections 225.81 and 225.82 of Regulation Y on consumma- products and services available to consumers. Accordingly, tion of the acquisition of Bank. the Board concludes that consummation of the proposal By order of the Board of Governors, effective April 11, would not have a significantly adverse effect on competi- 2001. tion or on the concentration of banking resources in any relevant banking market, and that competitive consider- Voting for this action: Chairman Greenspan, Vice Chairman Fergu- ations are consistent with approval. son, and Governors Kelley, Meyer, and Gramlich. ROBERT DEV. FRIERSON Associate Secretary of the Board 1. 12 U.S.C. § 1842(c)(1). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

422 Federal Reserve Bulletin • June 2001 Section 3 of the BHC Act also requires the Board to affiliate's when the affiliate originating the transaction is consider the effect of the transaction on the convenience much larger than the bank, and the bank has limited and needs of the communities to be served. The Board has independent sources from which to acquire or generate reviewed information presented by Amplicon related to the assets. convenience and needs factor and other information and The Board has weighed these concerns carefully in concludes, based on all the facts of record, that consider- reviewing the facts of this case. To address these concerns, ations relating to convenience and needs are consistent Amplicon has made certain commitments to ensure that with approval.2 Bank's purchases of leases from Amplicon are conducted in accordance with the relevant interpretations, and that Financial and Managerial Considerations such transactions are conducted in a safe and sound manner. In particular, these commitments are designed to en- Section 3 of the BHC Act requires the Board to consider sure that Bank will exercise independent credit judgment the financial and managerial resources and future prospects when purchasing leases from its affiliate, to limit the of the companies and banks involved in a bank acquisition amount of assets it can acquire from Amplicon, and to proposal. As part of this analysis, the Board has reviewed ensure that Amplicon will not rely on Bank to meet its Amplicon's operating plan for Bank and notes that Bank working capital needs. has hired experienced management that possesses signifi- In the future, the Board may review the policy in cant leasing experience acquired independently of Ampli- 12 C.F.R. 250.250 to ensure that the safeguards in that con. In addition, the Board has taken into account Ampli- interpretation are not impaired when a bank generates a con's record of offering lease financing and other products significant amount of its assets from transactions that inand services through the Internet and related technologies, volve its affiliate. Accordingly, Amplicon also has commitand Amplicon's capital level, cash reserves, and ability to ted that it will conform the operations of Bank to any serve as a source of strength to Bank. The Board also has amendments the Board may make concerning the policy in reviewed confidential supervisory and examination infor- 12 C.F.R. 250.250. mation and publicly reported financial and other informa- In addition to the commitments described above, Amplition. Moreover, the Board has consulted with the OCC on con has committed that Amplicon and Bank will remain the financial and managerial resources and operating plan well capitalized, and that Amplicon will provide any addiof Bank, particularly with respect to Bank's proposal to tional capital necessary to enable Bank to meet its liquidity purchase a significant volume of leases from Amplicon demands. Moreover, Bank has hired experienced staff to during the first several years of Bank's operation. review and determine the creditworthiness of lessees be- In reliance on a Board interpretation and related interpre- fore Bank's agreement to acquire and Amplicon's committive letters identifying certain transactions that are not ment to enter into a lease. covered transactions for purposes of section 23A of the Based on the foregoing and after consulting with the Federal Reserve Act, Amplicon has proposed that Bank OCC, Bank's primary federal supervisor, the Board has would acquire leases originated by Amplicon that national determined not to object to the proposed lease purchase banks are permitted to originate and hold.3 Amplicon has transactions between Bank and Amplicon. committed that these lease purchases will conform in all After considering all the facts of record, including comrespects to the limitations set forth in the Board's interpre- mitments made by Amplicon, the Board concludes that the tation. financial and managerial resources and future prospects of The Board notes that one of the foundations of the Amplicon and Bank are consistent with approval, as are the interpretation describing transactions that are not covered other supervisory factors the Board must consider under by the limitations in section 23A of the Federal Reserve section 3 of the BHC Act. Act is that each transaction must be reviewed by bank personnel with authority to make a credit judgment that is Nonbanking Activities independent of the credit judgment of the affiliate that originates the transaction. This policy was adopted in the Amplicon also has filed a notice under sections 4(c)(8) and context of allowing an existing bank with multiple sources 4(j) of the BHC Act to engage in leasing personal property of earning assets to take advantage of an investment oppor- and acting as agent, broker, and advisor in leasing personal tunity presented by an affiliate that is relatively small when property. The Board has determined by regulation that compared with the bank. It is more difficult to ensure that personal property leasing activities are closely related to the bank's credit judgment will be independent of its banking for purposes of the BHC Act.4 Amplicon has committed to conduct all its nonbanking activities in accordance with the limitations set forth in Regulation Y and all 2. Amplicon has requested that Bank be treated as a wholesale bank relevant Board orders and interpretations. for purposes of the Community Reinvestment Act (12 U.S.C. § 2901 In order to approve this notice, the Board is required by et seq.). The Bank's primary federal supervisor, the Office of the section 4(j)(2)(A) of the BHC Act to determine that the Comptroller of the Currency (the "OCC"), has approved that request. 3. See 12 U.S.C. § 371c. See also 12 C.F.R. 250.250 and Letter dated April 24, 1995, from the Board's General Counsel to the General Counsel of the Federal Deposit Insurance Corporation. 4. See 12 C.F.R. 225.28(b)(3). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 423 retention and continuation by Amplicon of its nonbanking notice should be, and hereby are, approved. The Board's activities "can reasonably be expected to produce benefits approval is specifically conditioned on compliance by Amto the public . . . that outweigh possible adverse effects, plicon with all the commitments made in connection with such as undue concentration of resources, decreased or the application and notice and the conditions in this order. unfair competition, conflicts of interests, or unsound bank- The Board's determination on the nonbanking activities ing practices."5 also is subject to all the conditions set forth in this order As part of its evaluation of these factors, the Board has and in Regulation Y, including those in sections 225.7 and carefully reviewed the financial and managerial resources 225.25(c) (12 C.F.R. 225.7 and 225.25(c)), and to the of Amplicon and Bank and the effect the transaction would Board's authority to require such modification or terminahave on such resources. For the reasons discussed above, tion of the activities of a bank holding company or any of and based on all the facts of record, including the commit- its subsidiaries as the Board finds necessary to ensure ments made in this case, the Board concludes that the compliance with, and prevent evasion of, the provisions of financial and managerial resources of the organizations the BHC Act and the Board's regulations and order thereinvolved in the proposal are consistent with approval. The under. For the purpose of this action, the commitments and Board also expects that the proposed transaction would conditions relied on by the Board in reaching its decision increase Amplicon's ability to serve its customers. As are deemed to be conditions imposed in writing by the noted above, the Board will monitor carefully lease pur- Board in connection with its findings and decision and, as chase transactions between Amplicon and Bank. such, may be enforced in proceedings under applicable The Board concludes that the conduct of the proposed law. nonbanking activities within the framework established The acquisition of Bank shall not be consummated beunder Regulation Y is not likely to result in adverse effects, fore the fifteenth calendar day after the effective date of such as undue concentration of resources, decreased or this order, and the proposal shall not be consummated later unfair competition, conflicts of interests, or unsound bank- than three months after the effective date of this order, ing practices, that would outweigh the public benefits of unless such period is extended for good cause by the Board the proposal, such as increased customer convenience and or the Federal Reserve Bank of San Francisco, acting gains in efficiency. Accordingly, based on all the facts of pursuant to delegated authority. record, the Board has determined that the balance of public By order of the Board of Governors, effective April 23, benefits that the Board must consider under section 4 of the 2001. BHC Act is favorable and consistent with approval of the notice. Voting for this action Chairman Greenspan, Vice Chairman Ferguson, and Governors Kelley and Gramlich. Absent and not voting: Governor Meyer. Conclusion Based on the foregoing, and in light of all the facts of ROBERT DEV. FRIERSON Associate Secretary of the Board record, the Board has determined that the application and 5. 12 U.S.C. § 1843(j)(2)(A). INDEX OF ORDERS ISSUED OR ACTIONS TAKEN BY THE BOARD OF GOVERNOS OF THE FEDERAL RESERVE SYSTEM (JANUARY 1, 2001-MARCH 31, 2001) Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page Allfirst Bank, To establish branches at Central Avenue February 5, 2001 87, 274 Baltimore, Maryland & Campus Way South, Largo, Maryland; and Broadcast Square Center, Broadcast Road & Papermill Road, Reading, Pennsylvania Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

424 Federal Reserve Bulletin • June 2001 Index of Orders Issued or Actions Taken—Continued Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page Bank Hapoalim, B.M., Signature Bank, March 26, 2001 87, 327 Tel Aviv, Israel New York, New York Zohar Hashemesh 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 The Charles Schwab Corporation, U.S. Trust Corporation, February 26, 2001 87, 233 San Francisco, California New York, New York Resource Companies, Inc., Minneapolis, Minnesota Resource Trust Company, Minneapolis, Minnesota Fifth Third Bancorp, Old Kent Financial Corporation, March 12, 2001 87, 330 Cincinnati, Ohio Grand Rapids, Michigan Old Kent Bank, Grand Rapids, Michigan Old Kent Bank, S.A., lonesville, Michigan Firstar Corporation, U.S. Bancorp, February 12, 2001 87, 236 Milwaukee, Wisconsin Minneapolis, Minnesota U.S. Bank National Association, Minneapolis, Minnesota FleetBoston Financial Corporation, Summit Bancorp., February 12, 2001 87, 252 Boston, Massachusetts Princeton, New lersey Summit Bank, Hackensack, New Jersey Franklin Resources, Inc., Fiduciary Trust Company International, March 26, 2001 87, 343 San Mateo, California New York, New York Franklin Templeton Bank & Trust, F.S.B., Salt Lake City, Utah Friedman, Billings, Ramsey Group, Inc. Money Management Associates, L.P., March 13, 2001 87, 346 Arlington, Virginia Bethesda, Maryland FBR Bancorp, Inc., FBR National Bank, Arlington, Virginia Bethesda, Maryland Money Management Associates, Inc., Arlington, Virginia Money Management Associates (LP), Inc., Arlington, Virginia Great Southern Bancorp, Inc., Guaranty Federal Bancshares, Inc., February 26, 2001 87, 266 Springfield, Missouri Springfield, Missouri Lea M. McMullan Trust, Dupont State Bank, February 12, 2001 87, 262 Shelbyville, Kentucky Dupont, Indiana Citizens Union Bancorp of Shelbyville, Inc., Shelbyville, Kentucky Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 425 Index or Orders Issued or Actions Taken—Continued Bulletin Volume Applicant Merged or Acquired Bank of Activity Date of Approval and Page MetLife, Inc., Grand Bank, National Association, February 12, 2001 87, 268 New York, New York Kingston, New Jersey Mitsubishi Tokyo Financial Group, Inc., The Bank of Tokyo-Mitsubishi, Ltd., March 14, 2001 87, 349 Tokyo Japan Tokyo, Japan The Mitsubishi Trust and Banking Corporation, Tokyo, Japan Union Bank of California International, New York, New York BTM North America International, Inc., New York, New York Prosperity Bancshares, Inc., Commercial Bancshares, Inc., February 5, 2001 87, 264 Houston, Texas Houston, Texas Heritage Bancshares, Inc., Wilmington, Delaware Heritage Bank, Wharton, Texas Societe Generale, To establish a state-licensed agency in March 5, 2001 87, 353 Paris, France Greenwich, Connecticut UFJ Holdings, Inc. (In Formation), The Sanwa Bank, Limited, February 5, 2001 87, 270 Osaka, Japan Osaka, Japan The Tokai Bank, Limited, Nagoya, Japan The Toyo Trust and Banking Company, Limited, Tokyo, Japan APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By the Secretary of the Board Recent applications have been approved by the Secretary of the Board as listed below. Copies are available upon request to the Freedom of Information Office, Office of the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. Section 3 Applicant(s) Bank(s) Effective Date Wesbanco, Inc., Freedom Bancshares, Inc., April 9, 2001 Wheeling, West Virginia Belington, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

426 Federal Reserve Bulletin • June 2001 APPLICATIONS APPROVED UNDER BANK HOLDING COMPANY ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Section 3 Applicant(s) Bank(s) Reserve Bank Effective Date Alliance Bank Shares Corporation, 1st Regions Bank, Minneapolis April 16, 2001 Andover, Minnesota Andover, Minnesota BB&T Corporation, Virginia Capital Bancshares, Inc., Richmond April 5, 2001 Winston-Salem, North Carolina Fredericksburg, Virginia Boiling Springs, MHC, Ridgewood Financial, MHC, New York March 30, 2001 Rutherford, New Jersey Ridgewood, New Jersey Boiling Springs Bancorp, Ridgewood Financial, Inc., Rutherford, New Jersey Ridgewood, New Jersey Ridgewood Savings Bank of New Jersey, Ridgewood, New Jersey Border Capital Group, Inc., McAllen National Bank, Dallas March 29, 2001 McAllen, Texas McAllen, Texas Border Capital Group of Delaware, Inc., Dover, Delaware Chinatrust Commercial Bank, Ltd., Chinatrust Bank (U.S.A.), New York April 18, 2001 Taipei, Taiwan, Republic of China Torrance, California China Trust Holdings, N.V., Curacao, Netherlands Antilles Coast Bancorp, Coast National Bank, San Francisco April 12, 2001 San Luis Obispo, California San Luis Obispo, California Community Bank Holdings of Eagle Bancshares, Inc., Dallas April 19, 2001 Texas, Inc., Fairfield, Texas Corsicana, Texas Corsicana Holdings, Inc., Dover, Delaware Cowboy State Bancorp, Inc., Tongue River Valley Bankshares, Inc., Kansas City March 29, 2001 Ranchester, Wyoming Ranchester, Wyoming Ranchester State Bank, Ranchester, Wyoming First Commerce Corporation, First Commerce Bank, Richmond April 17, 2001 Charlotte, North Carolina Charlotte, North Carolina EvergreenBancorp, Evergreen Bank, San Francisco April 17, 2001 Seattle, Washington Seattle, Washington eZ Bancorp, Inc., eZ Community Bank, Chicago April 24, 2001 Grand Rapids, Michigan Grand Rapids, Michigan First Okmulgee Corporation, Missouri Bancorp, Inc., Kansas City April 20, 2001 Okmulgee, Oklahoma Richmond, Missouri Giant Holdings, Inc., Landmark Bank, N.A., Atlanta March 30, 2001 Fort Lauderdale, Florida Fort Lauderdale, Florida Gulfstream Bancshares, Inc., Gulfstream Business Bank, Atlanta April 6, 2001 Stuart, Florida Stuart, Florida Hampton Roads Bankshares, Inc., Bank of Hampton Roads, Richmond April 25, 2001 Chesapeake, Virginia Chesapeake, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 427 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Ida Grove Bancshares, Inc. Alliance Bancshares, Inc., Chicago April 5, 2001 Ida Grove, Iowa Rockwell City, Iowa Alliance Bank, Rockwell City, Iowa Missouri Bancorp, Inc., Community Bank of Missouri, Kansas City April 20, 2001 Richmond, Missouri Richmond, Missouri One American Corporation, Schwegmann Bank and Trust Company, Atlanta April 16, 2001 Vacherie, Louisiana Harvey, Louisiana Peotone Bancorp, Inc., SouthwestUSA Corporation, Chicago April 18, 2001 Peotone, Illinois Las Vegas, Nevada SouthwestUSA Bank, Las Vegas, Nevada Shamrock Bancshares Employee Shamrock Bancshares, Inc., Kansas City April 5, 2001 Stock Ownership Plan, Coalgate, Oklahoma Coalgate, Oklahoma Southern Community Bancorp, Peninsula Bancorp, Inc., Atlanta March 30, 2001 Orlando, Florida Daytona Beach, Florida Peninsula Bank of Central Florida, Daytona Beach, Florida SouthwestUSA Corporation, SouthwestUSA Bank, San Francisco March 29, 2001 Las Vegas, Nevada Las Vegas, Nevada Valley Bancorp, Valley Bank, Henderson, Nevada San Francisco April 5, 2001 Henderson, Nevada Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Charter One Financial, Inc., Alliance Bancorp, Cleveland April 23, 2001 Cleveland, Ohio Hinsdale, Illinois Liberty Federal Bank, Hinsdale, Illinois East Side Bancorporation, Bank Chicago, Chicago April 20, 2001 Chicago, Illinois Chicago, Illinois East Texas Financial Corporation, East Texas Financial Services, Inc. Dallas April 18, 2001 Kilgore, Texas Tyler, Texas First Federal Savings and Loan Association of Tyler, Tyler, Texas FBOP Corporation, PBOC Holdings, Inc., Chicago April 11, 2001 Oak Park, Illinois Los Angeles, California Peoples Bank of California, Los Angeles, California Greater Bay Bancorp, CAPCO Financial Company, Inc., San Francisco March 26, 2001 Palo Alto, California Bellevue, Washington Independent Bankers Financial Trust Management Network, LLC, Dallas April 2, 2001 Corporation, Dallas, Texas Irving, Texas IBFC Nevada Corporation, Reno, Nevada Lone Tree Service Company, To engage de novo in extending credit Chicago March 30, 2001 Lone Tree, Iowa and servicing loans Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

428 Federal Reserve Bulletin • June 2001 Section 4—Continued Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Marshall & Ilsley Corporation, Mortgagebot LLC, Chicago March 30, 2001 Milwaukee, Wisconsin Cedarburg, Wisconsin MB Financial, Inc., FSL Holdings, Inc., Chicago April 26, 2001 Chicago, Illinois South Holland, Illinois Manufacturers National Corporation, First Savings & Loan Association of Chicago, Illinois South Holland, South Holland, Illinois Mcintosh County Bank Holding To engage de novo in extending credit Minneapolis April 19, 2001 Company, Inc., and servicing loans Ashley, North Dakota Texas Community Bancshares, Inc., Trust Management Network, LLC, Dallas April 2, 2001 Dallas, Texas Dallas, Texas First Lakewood, Inc., Dover, Delaware Zumbrota Agency, Inc., Larsen Insurance Agency, Minneapolis April 5, 2001 Zumbrota, Minnesota Pine Island, Minnesota Pine Island Bancshares, Inc., Hermann Insurance Agency, Pine Island, Minnesota Pine Island, Minnesota Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Ames National Corporation, Mahaska Investment Company, Chicago April 5, 2001 Ames, Iowa Oskaloosa, Iowa Central Valley Bank, Ottumwa, Iowa Midwest Federal Savings and Loan Association of Eastern Iowa, Burlington, Iowa BB&T Corporation, Century South Banks, Inc., Richmond April 19, 2001 Winston-Salem, North Carolina Alpharetta, Georgia Waccamaw Bankshares, Inc., Waccamaw Bank, Richmond April 19, 2001 Whiteville, North Carolina Whiteville, North Carolina APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date The Farmers Bank of Mt. Pulaski, Citizens National Bank, Chicago April 20, 2001 Mt. Pulaski, Illinois Macomb, Illinois Rolling Hills Bank & Trust, Rippey Savings Bank, Chicago April 5, 2001 Atlantic, Iowa Rippey, Iowa Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 429 PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the agencies' motion for summary judgment and dismissed the Federal Reserve Banks in which the Board of Governors is not action. named a party. Sedgwick v. Board of Governors, No. 00-16525 (9th Cir., filed August 7, 2000). Appeal of district court dismissal of action under Federal Tort Claims Act alleging violation of bank Artis v. Greenspan, No. 01-CV-0400(ESG) (D.D.C., complaint supervision requirements. filed February 22, 2001. Employment discrimination action. Individual Reference Services Group, Inc., v. Board of Gover- Dime Bancorp, Inc. v. Board of Governors, No. 00^-249 (2d nors, et al., No. 00-CV-1828 (ESH) (D.D.C., filed July 28, Cir., filed December 11, 2000). Petition for review of a 2000). Action under Administrative Procedure Act chal- Board order dated September 27, 2000, approving the applilenging a portion of interagency rule regarding Privacy of cations of North Fork Corporation, Inc., Melville, New Consumer Finance Information. On April 30, 2001, the York, to acquire control of Dime Bancorp, Inc. and to court granted the defendant agencies' motion for summary thereby acquire its wholly owned subsidiary, The Dime judgment and dismissed the action. Savings Bank of New York, FSB, both of New York, New Reed Elsevier Inc. v. Board of Governors, No. 00-1289 (D.C. York. Cir., filed June 30, 2000). Petition for review of interagency Nelson v. Greenspan, No. 99-215(EGS) (D.D.C., amended rule regarding Privacy of Consumer Financial Information. complaint filed December 8, 2000). Employment discrimi- Bettersworth v. Board of Governors, No. 00-50262 (5th Cir., nation action. filed April 14, 2000). Appeal of district court's dismissal of Howe v. Bank for International Settlements, No. 00CV12485 Privacy Act claims. On April 12, 2001, the court denied the RCL (D. Mass., filed December 7, 2000). Action seeking petition for review. damages in connection with gold market activities and the Albrecht v. Board of Governors, No. 00-CV-317 (CKK) repurchase of privately-owned shares of the Bank for Inter- (D.D.C., filed February 18, 2000). Action challenging the national Settlements. method of funding of the retirement plan for certain Board Barnes v. Reno, No. 1:00CV02900 (D.D.C., filed December 4, employees. On March 30, 2001, the district court granted in 2000). Civil rights action. part and denied in part the Board's motion to dismiss. El Bey v. United States, No. 00-5293 (D.C. Cir., filed Guerrero v. United States, No. CV-F-99-6771(OWW) (E.D. August 31, 2000). Appeal from district court order dismiss- Cal., filed November 29, 1999). Prisoner suit. ing pro se action as lacking arguable basis in law. On Artis v. Greenspan, No. 1:99CV02073 (EGS) (D.D.C., filed January 11, 2001, the court dismissed the appeal. August 3, 1999). Employment discrimination action. Trans Union LLC v. Board of Governors, et al., No. 00-CV- Fraternal Order of Police v. Board of Governors, No. 2087(ESH) (D.D.C., filed August 30, 2000). Action under 1:98CV03116 (WBB)(D.D.C„ filed December 22, 1998). Administrative Procedure Act challenging a portion of inter- Declaratory judgment action challenging Board labor pracagency rule regarding Privacy of Consumer Financial Infor- tices. On February 26, 1999, the Board filed a motion to mation. On April 30, 2001, the court granted the defendant dismiss the action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABULAR PRESENTATION Federal Finance—Continued 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 A35 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 U.S. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 Federal Reserve Bulletin • June 2001 INTERNATIONAL STATISTICS Reported by Nonbanking Business Enterprises in the United States Summary Statistics A58 Liabilities to unaffiliated foreigners A50 U.S. international transactions A59 Claims on unaffiliated foreigners A51 U.S. foreign trade A51 U.S. reserve assets Securities Holdings and Transactions A51 Foreign official assets held at Federal Reserve A60 Foreign transactions in securities Banks A61 Marketable U.S. Treasury bonds and A52 Selected U.S. liabilities to foreign official notes—Foreign transactions institutions Interest and Exchange Rates Reported by Banks in the United States A62 Foreign exchange rates A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A63 GUIDE TO STATISTICAL RELEASES AND A55 Banks' own claims on foreigners A56 Banks' own and domestic customers' claims on SPECIAL TABLES foreigners A56 Banks' own claims on unaffiliated foreigners A64 INDEX TO STATISTICAL TABLES A57 Claims on foreign countries—Combined domestic offices and foreign branches Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tabular Presentation SYMBOLS AND ABBREVIATIONS c Corrected 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 Agriculture 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 • June 2001 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 2000 2001 2000r 2001 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q2 Q3 Q4 Q1 Nov. Dec. Jan. Feb/ Mar. Reserves of depository institutions2 1 Total -10.9 -8.3 -8.7 -2.0 .1 -15.9 10.0 1.2 -18.7 2 Required -7.7 -8.6 -10.4 -3.5 -1.7 -20.3 12.7 -4.5 -17.8 3 Nonborrowed -12.5 -9.9 -6.4 .5 4.3 -13.7 14.3 1.9 -18.9 4 Monetary base3 -3.6 2.5 2.8 6.3 3.5 5.3 11.2 3.3 2.4 Concepts of money and debt4 5 Ml -1.8 -3.6 -3.0 4.7 -8.3 2.0 12.0 .0 10.6 6 M2 6.4 5.7r 6.4r 10.8 4.2 9.6 12.3 10.7 14.5 7 M3 9.0 S.8' 7.1r 12.9 4.6r 14.2r 16.0 11.5 10.5 8 Debt 6.1 4.8r 4.6 n.a. 5.3r 5.9r 3.7r 5.7 n.a. Nontransaction components 9 In M25 9.0r 8.5r 9.2' 12.5 7.8r 11.8 12.3r 13.7 15.5 10 In M3 only6 15.2 16.3 8.7r 17.7 5.5r 25.0r 24.6 13.3 1.5 Time and savings deposits Commercial banks 11 Savings, including MMDAs 7.8 11.8 11.9 17.1 10.4 16.4r 13.lr 23.8 21.1 12 Smalltime7 13.2 10.5 6.1 2.6 7.7 9.5 5.0 -6.0 -6.3 13 Large time8,9 17.1 11.5 3.5 3.0 4.8 39.2 22.0 -39.9 -39.1 Thrift institutions 14 Savings, including MMDAs 1.6 3.3 .0 7.1 -3.4 -9.2 1.9 27.6 24.6 15 Small time7 3.3 10.8 9.7 8.9 9.1 5.6 14.6 7.2 1.0 16 Large time8 .6 23.0 14.0 12.3 4.6 -6.9 34.9 6.8 1.1 Money market mutual funds 17 Retail 13.4r 3.7r 11.8r 17.1 9.2r I9.3r 20.9r 8.7 23.9 18 Institution-only 18.0 29.2 18.6 50.4 12.9 24.9 52.5 86.9 40.5 Repurchase agreements and eurodollars 19 Repurchase agreements10 10.7 8.0 -3.4 -11.3 -14.6 12.4 -10.7 -30.2 -20.7 20 Eurodollars10 15.0 .6 10.3r 1.3 18.8r 13.5r - 14.6r -3.7 17.9 Debt components4 21 Federal -7.5 -7.3 -8.0 n.a. -9.2 —6.6 -7.1 -3.0 n.a. 22 Nonfederal 9.1' 7.8r 7.6 n.a. 8.8 8.7r 6.2r 7.7 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 1.11 RESERVES OF DEPOSITORY INSTITUTIONS AND RESERVE BANK CREDIT1 Millions of dollars Average of Average of daily figures for week ending on date indicated daily figures 2001 2001 Jan. Feb. Mar. Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 577,991 574,233 577,856 572,626 577,131 575,091 577,729 575,106 581,252 576,086 U.S. government securities2 2 Bought outright—System account3 515,712 517,974 522,787 515,909 519,669 520,739 521,674 522,805 522,353 523,930 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 130 81 10 110 81 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 24,662 19,085 19,105 17,757 21,976 17,685 20,074 16,713 22,824 15,926 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 43 29 27 24 13 72 78 14 20 3 9 Seasonal credit 32 19 19 23 17 17 21 20 22 18 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 873 1,231 406 1,543 955 1,802 1,187 345 299 28 13 Other Federal Reserve assets 36,539 35,815 35,502 37,260 34,421 34,766 34,685 35,199 35,724 36,171 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 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 16 Treasury currency outstanding 31,800 32,026 32,191 32,005 32,046 32,087 32,129 32,165 32,200 32,235 ABSORBING RESERVE FUNDS 17 Currency in circulation .. . . 584,006 582,524 585,180 581,885 584,138 584,052 584,492 585,070 585,342 585,422 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 452 485 496 485 488 489 505 504 495 489 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 6,682 4,894 5,390 5,023 4,836 4,868 4,959 4,893 6,709 4,621 21 Foreign 104 94 85 79 107 100 87 79 83 98 22 Service-related balances and adjustments . . 6,841 6,533r 6,859 6,533 6,530r 6,623r 6,726 7,109 6,936 6,710 23 Other 305 302 260 323 257 290 251 263 237 296 24 Other Federal Reserve liabilities and capital . 18,124 18,168 18,232 18,232 18,162 18,246 18,173 18,343 18,318 18,325 25 Reserve balances with Federal Reserve Banks" 6,521 6,502r 6,788 5,317 7,903 5,755r 7,911 4,256 8,578 5,605 End-of-month figures Wednesday figures Jan. Feb. Mar. Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 573,194 578,124 581,870 574,244 587,381 578,124 578,965 575,911 597,298 575,715 U.S. government securities2 2 Bought outright—System account3 516,018 519,618 523,862 514,561 521,118 519,618 523,051 523,407 523,302 524,946 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 130 10 10 110 10 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreements—triparty4 18,920 23,665 21,995 17,510 28,765 23,665 20,940 17,495 38,550 15,500 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 5 2 8 11 17 2 101 95 2 0 9 Seasonal credit 30 15 14 24 15 15 20 17 25 15 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 1,536 1,016 180 4,463 2,823 1,016 -142 -688 -534 -1,234 13 Other Federal Reserve assets 36,555 33,798 35,801 37,565 34,633 33,798 34,985 35,576 35,943 36,477 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 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 16 Treasury currency outstanding 31,888 32,087 32,271 32,005 32,046 32,087 32,129 32,165 32,200 32,235 ABSORBING RESERVE FUNDS 17 Currency in circulation . .. . 579,781 585,129 585,853 583,547 585,086 585,129 586,167 586,274 586,480 586,682 18 Reverse repurchase agreements—triparty . . . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 477 505 478 489 487 505 506 496 491 478 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,256 4,956 5,657 6,713 4,100 4,956 5,067 4,564 4,662 4,764 21 Foreign 199 196 70 72 77 196 97 73 74 145 22 Service-related balances and adjustments . . 6,578 6,623r 6,758 6,533 6,530r 6,623r 6,726 7,109 6,936 6,710 23 Other 306 377 248 286 256 377 241 247 241 251 2 2 4 5 O R t e h s e e r r v F e ed b e a r l a a l n c R e e s s w er i v th e l F i e a d b e il r i a ti l es R e a s n e d rv e c ap B i a ta n l k s' . 1 8 7 , , 0 6 8 4 2 8 1 7 7 , , 8 8 3 42 0 r 1 1 7 0 , , 4 88 4 1 1 1 3 7 , , 9 92 3 1 5 1 1 7 8 , , 9 2 3 0 5 2 r 1 7 7 , , 8 8 3 42 0 r 1 7 8 , , 5 0 3 0 6 0 1 4 8 , , 4 0 8 7 2 6 2 1 5 8 , , 8 0 2 3 3 6 1 4 8 , , 1 0 4 2 6 0 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float. under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • June 2001 1.12 RESERVES AND BORROWINGS Depository Institutions' Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1998 1999 2000 2000 2001 Dec. Dec. Dec. Sept. Oct. Nov. Dec. Jan. Feb/ Mar. 1 Reserve balances with Reserve Banks2 9,026 5,262 7,159 6,852 6,778 7,156 7,159 7,190 6,615 6,738 2 Total vault cash3 44,294 60,619 45,120 44,807 45,178 44,546 45,120 47,506 48,396 44,019 3 Applied vault cash4 36,183 36,392 31,381 32,316 31,998 31,629 31,381 32,601 32,734 30,980 4 Surplus vault cash5 8,111 24,227 13,739 12,491 13,180 12,917 13,739 14,905 15,662 13,039 5 Total reserves6 45,209 41,654 38,540 39,168 38,776 38,786 38,540 39,791 39,349 37,718 6 Required reserves 43,695 40,357 37,216 38,050 37,629 37,584 37,216 38,538 37,917 36,334 7 Excess reserve balances at Reserve Banks7 1,514 1,297 1,325 1,119 1,147 1,201 1,325 1,253 1,432 1,384 8 Total borrowing at Reserve Banks 117 320 210 477 418 283 210 73 51 58 9 Adjustment 101 179 99 50 119 124 99 39 30 38 10 Seasonal 15 67 111 427 299 159 111 34 21 20 11 Special Liquidity Facility8 0 74 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 2001 Nov. 29 Dec. 13 Dec. 27 Jan. 10 Jan. 24 Feb. 7 Feb. 21r Mar. 7r Mar. 21 Apr. 4 1 Reserve balances with Reserve Banks" 7,620 7,131 7,208 7,085 7,656 6,410 6,608 6,836 6,296 7,291 2 Total vault cash3 44,539 43.452 46,220 46,696 45,558 52,560r 48,504 44,016 43,784 44,351 3 Applied vault cash4 32,262 30,255 32,370 31,579 32,316 34,631 32,380 31,547 30,304 31,530 4 Surplus vault cash5 12,277 13,197 13,850 15,117 13,242r 17,929r 16,124 12,469 13,480 12,822 5 Total reserves6 39,881 37,386 39,578 38,664 39,972 41,041 38,988 38,382 36,600 38,820 6 Required reserves 38,475 36.254 38,124 37,165 38,866 39,844 37,361 37,103 35,419 37,078 7 Excess reserve balances at Reserve Banks7 1,406 1,132 1,453 1,499 1,106 1,196 1,627 1,279 1,180 1,742 8 Total borrowing at Reserve Banks 380 159 285 110 66 34 38 95 38 60 9 Adjustment 232 37 169 56 42 9 18 76 17 42 10 Seasonal 148 123 117 55 25 25 20 19 21 18 11 Special Liquidity Facility8 12 Extended credit9 0 0 0 0 0 0 0 0 0 0 1. Data in this table also appear in the Board's H.3 (502) weekly statistical release. For 5. Total vault cash (line 2) less applied vault cash (line 3). ordering address, see inside front cover. Data are not break-adjusted or seasonally adjusted. 6. Reserve balances with Federal Reserve Banks (line 1) plus applied vault cash 2. Excludes required clearing balances and adjustments to compensate for float and (line 3). includes other off-balance-sheet "as-of' adjustments. 7. Total reserves (line 5) less required reserves (line 6). 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by 8. Borrowing at the discount window under the terms and conditions established for the those banks and thrift institutions that are not exempt from reserve requirements. Dates refer Century Date Change Special Liquidity Facility in effect from October 1, 1999, through to the maintenance periods in which the vault cash can be used to satisfy reserve require- April 7, 2000. ments. 9. Consists of borrowing at the discount window under the terms and conditions estab- 4. All vault cash held during the lagged computation period by "bound" institutions (that lished for the extended credit program to help depository institutions deal with sustained is, those whose required reserves exceed their vault cash) plus the amount of vault cash liquidity pressures. Because there is not the same need to repay such borrowing promptly as applied during the maintenance period by "nonbound" institutions (that is, those whose vault with traditional short-term adjustment credit, the money market effect of extended credit is cash exceeds their required reserves) to satisfy current reserve requirements. similar to that of nonborrowed reserves. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A7 1.14 FEDERAL RESERVE BANK INTEREST RATES Percent per year Current and previous levels Adjustment credit1 Seasonal credit2 Extended credit1 FFeeddeerraall RReesseerrvvee BBaannkk 5/1 O 1 n /0 1 Effective date Previous rate 5/1 O 1 n /0 1 Effective date Previous rate 5/1 O 1 n /0 1 Effective date Previous rate Boston 4.00 4/18/01 4.50 4.35 5/3/01 4.85 4.85 5/3/01 5.35 New York 4/18/01 Philadelphia 4/18/01 Cleveland 4/18/01 Richmond 4/19/01 Atlanta 4/18/01 Chicago 4/19/01 St. Louis 4/20/01 Minneapolis 4/18/01 Kansas City 4/18/01 Dallas 4/18/01 San Francisco .... 4.00 4/18/01 4.50 4.35 5/3/01 4.85 4.85 5/3/01 5.35 Range of rates for adjustment credit in recent years4 Range (or F.R. Bank Range (or F.R. Ba Range (or level)—All of Effective date level)—All of level)—All F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks In effect Dec. 31, 1977 6 6 1982—Oct. 12 9.5-10 9.5 1994—May 17 3-3.5 3.5 13 9.5 9.5 18 3.5 3.5 1978—Jan. 9 6-6.5 6.5 Nov. 22 9-9.5 9 Aug. 16 3.5-4 4 20 6.5 6.5 26 9 9 18 4 4 May 11 6.5-7 7 Dec. 14 8.5-9 9 Nov. 15 4-4.75 4.75 12 7 7 15 8.5-9 8.5 1 7 4.75 4.75 July 3 7-7.25 7.25 17 8.5 8.5 10 7.25 7.25 1995—Feb. 1 4.75-5.25 5.25 Aug. 21 7.75 7.75 1984—Apr. 9 8.5-9 9 9 5.25 5.25 Sept. 22 8 8 13 9 9 Oct. 16 8-8.5 8.5 Nov. 21 8.5-9 8.5 1996—Jan. 31 5.00-5.25 5.00 20 8.5 8.5 26 8.5 8.5 Feb. 5 5.00 5.00 Nov. 1 8.5-9.5 9.5 Dec. 24 8 8 3 9.5 9.5 1998—Oct. 15 4.75-5.00 4.75 1985—May 20 7.5-8 7.5 16 4.75 4.75 1979—July 20 10 10 24 7.5 7.5 Nov. 17 4.50-4.75 4.50 Aug. 17 10-10.5 10.5 19 4.50 4.50 20 10.5 10.5 1986—Mar. 7 7-7.5 7 Sept. 19 10.5-11 11 10 7 7 1999—Aug. 24 4.50-4.75 4.75 21 11 11 Apr. 21 6.5-7 6.5 26 4.75 4.75 Oct. 8 11-12 12 23 6.5 6.5 Nov. 16 4.75-5.00 4.75 10 12 12 July 11 6 6 1 8 5.00 5.00 Aug. 21 5.5-6 5.5 1980—Feb. 15 12-13 13 22 5.5 5.5 2000—Feb. 2 5.00-5.25 5.25 19 13 13 4 5.25 5.25 May 29 12-13 13 1987—Sept. 4 5.5-6 6 Mar. 21 5.25-5.50 5.50 30 12 12 11 6 6 23 5.50 5.50 June 13 11-12 11 May 16 5.50-6.00 5.50 16 11 11 1988—Aug. 9 6-6.5 6.5 1 9 6.00 6.00 July 28 10-11 10 11 6.5 6.5 2 9 10 10 2001—Jan. 3 5.75-6.00 5.75 Sept. 26 11 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 13 31 5.00-5.50 5.00 8 13 13 1990—Dec. 19 6.5 6.5 Feb. 1 5.00 5.00 Mar. 20 4.50-5.00 4.50 1981—May 5 13-14 14 1991—Feb. 1 6-6.5 6 21 4.50 4.50 8 14 14 4 6 6 Apr. 18 4.00-4.50 4.00 Nov. 2 13-14 13 Apr. 30 5.5-6 5.5 2 0 4.00 4.00 6 13 13 May 2 5.5 5.5 Dec. 4 12 12 Sept. 13 5-5.5 5 In effect May 11,2001 4.00 4.00 17 5 5 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 23 11.5 11.5 7 4.5 4.5 Aug. 2 11-11.5 11 Dec. 20 3.5^1.5 3.5 3 11 11 24 3.5 3.5 16 10.5 10.5 27 10-10.5 10 1992—July 2 3-3.5 3 3 0 10 10 7 3 3 1. Available on a short-term basis to help depository institutions meet temporary needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that cannot be met through reasonable alternative sources. The highest rate established flexible rate somewhat above rates charged on market sources of funds is charged. The rate for loans to depository institutions may be charged on adjustment credit loans of unusual size ordinarily is reestablished on the first business day of each two-week reserve maintenance that result from a major operating problem at the borrower's facility. period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis 2. Available to help relatively small depository institutions meet regular seasonal needs for points. funds that arise from a clear pattern of intrayearly movements in their deposits and loans and 4. For earlier data, see the following publications of the Board of Governors: Banking and that cannot be met through special industry lenders. The discount rate on seasonal credit takes Monetary Statistics, 1914-1941, and 1941-1970\ and the Annual Statistical Digest, 1970into account rates charged by market sources of funds and ordinarily is reestablished on the 1979. first business day of each two-week reserve maintenance period; however, it is never less than In 1980 and 1981, the Federal Reserve applied a surcharge to short-term adjustment-credit the discount rate applicable to adjustment credit. borrowings by institutions with deposits of $500 million or more that had borrowed in 3. May be made available to depository institutions when similar assistance is not successive weeks or in more than four weeks in a calendar quarter. A 3 percent surcharge was reasonably available from other sources, including special industry lenders. Such credit may in effect from Mar. 17, 1980, through May 7, 1980. A surcharge of 2 percent was reimposed be provided when exceptional circumstances (including sustained deposit drains, impaired on Nov. 17, 1980; the surcharge was subsequently raised to 3 percent on Dec. 5, 1980, and to access to money market funds, or sudden deterioration in loan repayment performance) or 4 percent on May 5, 1981. The surcharge was reduced to 3 percent effective Sept. 22, 1981, practices involve only a particular institution, or to meet the needs of institutions experiencing and to 2 percent effective Oct. 12, 1981. As of Oct. 1, 1981, the formula for applying the difficulties adjusting to changing market conditions over a longer period (particularly at times surcharge was changed from a calendar quarter to a moving thirteen-week period. The of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is surcharge was eliminated on Nov. 17, 1981. charged on extended-credit loans outstanding less than thirty days; however, at the discretion Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Nonfinancial Statistics • June 2001 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Type of deposit Net transaction accounts 1 $0 million-$42.8 million3 . 12/28/00 2 More than $42.8 million4 . 12/28/00 3 Nonpersonal time deposits" 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 1.5 years was reduced from 3 percent to 1.5 percent for by check, draft, debit card, or similar order payable directly to third parties) are savings the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that deposits, not transaction accounts. began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts nonpersonal time deposits with an original maturity of less than 1.5 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 1.5 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 1.5 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 TRANSACTIONS' Millions of dollars 2000 2001 TTyyppee ooff ttrraannssaaccttiioonn 11999988 11999999 22000000 aanndd mmaattuurriittyy Aug. Sept. Oct. Nov. Dec. Jan. Feb. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 3,550 0 8,676 531 231 779 2,507 509 552200 22,,668833 2 Gross sales 0 0 0 0 0 0 0 0 0 0 3 Exchanges 450,835 464,218 477,904 42,797 37,006 38,142 45,182 39,428 40,769 42,767 4 For new bills 450,835 464,218 477,904 42,797 37,006 38,142 45,182 39,428 40,769 42,767 5 Redemptions 2,000 0 24,522 3,438 3,898 2,656 1,021 1,145 228 638 Others within one year 6 Gross purchases 6,297 11,895 8,809 2,770 716 0 580 11,,442200 00 11,,660055 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 46,062 50,590 62,025 7,040 0 8,663 7,957 0 5,405 10,619 9 Exchanges -49,434 -S3,315 -54,656 -7,396 0 -6,608 -7,012 0 -6,667 -6,799 10 Redemptions 2,676 1,429 3,779 887 0 787 780 0 2,422 1,529 One to five years 11 Gross purchases 12,901 19,731 14,482 2,508 2,385 734 1,332 1,045 992255 22,,998833 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,777 -44,032 -52,068 -3,439 0 -8,663 -5,997 0 -5,405 -7,794 14 Exchanges 37,154 42,604 46,177 5,418 0 6,608 5,737 0 6,667 4,945 Five to ten years 15 Gross purchases 2,294 4,303 5,871 1,914 448 0 510 777711 11,,228833 00 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,908 -5,841 -6,801 -3,601 0 0 -699 0 0 -2,825 18 Exchanges 7,439 7,583 6,585 1,254 0 0 1,275 0 0 971 More than ten years 19 Gross purchases 4,884 9,428 5,833 727 547 982 0 0 22%% 449955 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -2,377 -717 -3,155 0 0 0 -1,261 0 0 0 22 Exchanges 4,842 3,139 1,894 724 0 0 0 0 0 883 All maturities 23 Gross purchases 29,926 45,357 43,670 8,450 4,326 2,495 4,929 3,745 33,,002244 7,766 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 4,676 1,429 28,301 4,325 3,898 3,443 1,802 1,145 2,650 2,166 Matched transactions 26 Gross purchases 4,430,457 4,413,430 4,399,257 381,349 335,321 344,920 351,391 345,680 335566,,225500 332200,,006600 27 Gross sales 4,434,358 4,431,685 4,381,188 381,475 334,530 346,428 351,232 348,917 352,336 322,056 Repurchase agreements 28 Gross purchases 512,671 228811,,559999 00 00 00 00 00 00 00 00 514,186 301,273 0 0 0 0 0 0 0 0 30 Net change in U.S. Treasury securities 19,835 5,999 33,439 3,999 1,219 -2,457 3,286 -637 4,289 3,604 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 00 00 00 32 Gross sales 25 0 0 0 0 0 0 0 0 0 33 Redemptions 322 157 51 0 10 0 0 0 0 120 Repurchase agreements 34 Gross purchases 284,316 360,069 0 00 00 00 00 00 00 00 35 Gross sales 276,266 370,772 0 0 0 0 0 0 0 0 36 Net change in federal agency obligations 7,703 -10,859 -51 0 -10 0 0 0 0 -120 Reverse repurchase agreements 37 Gross purchases 0 0 00 00 00 00 00 00 00 00 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 0 304,989 890,236 47,265 66,080 64,428 8877,,112255 95,470 110044,,993300 6677,,665555 40 Gross sales 0 164,349 987,501 46,230 67,285 62,308 79,295 79,365 129,385 62,910 41 Net change in triparty obligations 0 140,640 -97,265 1,035 -1,205 2,120 7,830 16,105 -24,455 4,745 42 Total net change in System Open Market Account... 27,538 135,780 -63,877 5,034 4 -337 11,116 15,468 -20,166 8,229 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 • June 2001 1.18 FEDERAL RESERVE BANKS Condition and Federal Reserve Note Statements1 Millions of dollars Wednesday End of month Account 2001 2001 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Jan. 31 Feb. 28 Mar. 31 Consolidated condition statement ASSETS 1 Gold certificate account 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 2 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 3 1,115 1,117 1,126 1,146 1,147 1,066 1,115 1,179 Loans 4 To depository institutions 18 122 112 27 16 35 18 22 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" 23,665 20.940 17,495 38,550 15,500 18,920 23,665 21,995 Federal agency obligations3 8 Bought outright 10 10 10 10 10 130 10 10 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 519,618 523,051 523,407 523,302 524,946 516,018 519,618 523,862 II Bought outright4 519,618 523,051 523,407 523,302 524,946 516,018 519,618 523,862 1?. Bills 182,998 184,713 184.527 184,411 185,333 182,949 182,998 184,244 N 241,792 243,039 243,048 243,056 243,658 239,725 241,792 243,661 14 Bonds 94,827 95,299 95,832 95,835 95,956 93,345 94,827 95,957 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 543311 544,123 541,024 561,889 540,472 535,103 543,311 545,889 17 Items in process of collection 9,019 9,042 7,523 8,102 6,681 10,023 9,019 6,292 18 Bank premises 1,476 1,477 1,477 1,479 1,479 1.467 1,476 1,487 Other assets 19 Denominated in foreign currencies5 15,386 15,393 15.400 15,407 15,427 15,495 15,386 14,554 20 All other6 17,534 18.069 18,669 19,148 19,558 19,673 17,534 19,748 21 Total assets 601,086 602,465 598,464 620,417 598,010 596,072 601,086 602,394 LIABILITIES ?.?. Federal Reserve notes 554,662 555,660 555,731 555,917 556,072 549,436 554,662 555,239 23 Reverse repurchase agreements—triparty" 0 0 0 0 0 0 0 0 24 Total deposits 20,667 20,642 16,848 38,692 16,389 21,182 20,667 23,803 25 Depository institutions 15,139 15,237 11,964 33,715 11,230 15,420 15,139 17,828 26 U.S. Treasury—General account 4,956 5,067 4.564 4,662 4,764 5,256 4,956 5,657 27 Foreign—Official accounts 196 97 73 74 145 199 196 70 28 Other 377 241 247 241 251 306 377 248 ?9 Deferred credit items 7.915 8,163 7.809 7,772 7,529 7,806 7,915 5,911 30 Other liabilities and accrued dividends7 3,931 3,947 3,925 3,843 3,817 3,960 3,931 3,858 31 Total liabilities 587,175 588,412 584,313 606,224 583,808 582,384 587,175 588,811 CAPITAL ACCOUNTS 3? Capital paid in 7,023 7,036 7.023 7,023 7,029 7,014 7,023 7,029 33 Surplus 6,355 6,387 6,422 6,455 6,489 6,265 6,355 6,217 34 Other capital accounts 534 630 705 715 685 409 534 336 35 Total liabilities and capital accounts 601,086 602,465 598,464 620,417 598,010 596,072 601,086 602,394 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) 744,972 744,056 743.186 742,461 741,569 746,920 744,972 741,342 38 LESS: Held by Federal Reserve Banks 190,310 188,396 187,455 186,544 185,497 197,484 190,310 186,103 39 Federal Reserve notes, net 554,662 555,660 555,731 555,917 556,072 549,436 554,662 555,239 Collateral held against notes, net 40 Gold certificate account 11,046 11,046 11,046 11,046 11,046 11,046 11,046 11,046 41 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 4? Other eligible assets 0 0 1,574 0 2,370 1,122 0 0 43 U.S. Treasury and agency securities 541,417 542,414 540,912 542.671 540.456 535,068 541,417 541,993 44 Total collateral 554,662 555,660 555,731 555,917 556,072 549,436 554,662 555,239 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 5. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Cash value of agreements arranged through third-party custodial banks. bills maturing within ninety days. 3. Face value of the securities. 7. Includes exchange-translation account reflecting the monthly revaluation at market 4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with exchange rates of foreign exchange commitments. Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month Type of holding and maturity 2001 2001 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 Jan. 31 Feb. 28 Mar. 31 1 Total loans 18 122 112 27 16 35 18 22 2 Within fifteen days1 16 114 106 27 16 30 16 22 3 Sixteen days to ninety days 2 8 6 0 0 5 2 0 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. TVeasury securities2 519,618 523,051 523,407 523,302 524,946 516,018 519,618 523,861 6 Within fifteen days' 12,450 15,427 13,999 18,933 20,700 20,921 12,450 9,959 7 Sixteen days to ninety days 116,644 120,798 122,014 117,213 116,999 112,430 116,644 126,988 8 Ninety-one days to one year 128,775 123,424 123,451 123,202 122,571 124,617 128,775 122,234 9 One year to five years 134,268 135,442 135,443 135,445 136,156 130,088 134,268 136,157 10 Five years to ten years 54,893 54,899 54,906 54,913 54,921 56,750 54,893 54,923 11 More than ten years 72,589 73,060 73,594 73,597 73,599 71,212 72,589 73,600 12 Total federal agency obligations 10 10 10 10 10 130 10 10 13 Within fifteen days' 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 10 10 10 10 10 130 10 10 17 Five years to ten years 0 0 0 0 0 0 0 0 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 Nonfinancial Statistics • June 2001 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2000 2001 11999977 11999988 11999999 22000000 IItteemm DDeecc.. DDeecc.. DDeecc.. DDeecc.. Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. Seasonally adjusted AADDJJUUSSTTEEDD FFOORR CCHHAANNGGEESS IINN RREESSEERRVVEE RREEQQUUIIRREEMMEENNTTSS22 11 TToottaall rreesseerrvveess33 46.85 45.18 41.78 38.51 39.64 39.39 39.02 39.02 38.51 38.83 38.87 38.26 22 NNoonnbboorrrroowweedd rreesseerrvveess44 46.52 45.07 41.46 38.30 39.06 38.91 38.60 38.74 38.30 38.75 38.82 38.20 33 NNoonnbboorrrroowweedd rreesseerrvveess pplluuss eexxtteennddeedd ccrreeddiitt55 46.52 45.07 41.46 38.30 39.06 38.91 38.60 38.74 38.30 38.75 38.82 38.20 44 RReeqquuiirreedd rreesseerrvveess 45.16 43.67 40.48 37.18 38.64 38.27 37.87 37.82 37.18 37.57 37.43 36.88 55 MMoonneettaarryy bbaassee66 479.47 513.49 593.09 583.97 577.53 578.34 579.70 581.40 583.97 589.40 591.03 592.23 Not seasonally adjusted 6 Total reserves7 48.01 45.31 41.89 38.60 39.51 39.22 38.84 38.85 38.60 39.78 39.38 37.77 7 Nonborrowed reserves 47.69 45.19 41.57 38.39 38.93 38.75 38.42 38.56 38.39 39.70 39.33 37.71 8 Nonborrowed reserves plus extended credit5 47.69 45.19 41.57 38.39 38.93 38.75 38.42 38.56 38.39 39.70 39.33 37.71 9 Required reserves8 46.33 43.80 40.59 37.27 38.51 38.11 37.69 37.65 37.27 38.52 37.95 36.38 10 Monetary base9 484.98 518.27 600.72 590.20 576.66 576.84 578.29 582.36 590.20 591.49 588.95 591.17 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 U Total reserves" 47.92 45.21 41.65 38.54 39.46 39.17 38.78 38.79 38.54 39.79 39.35 37.72 12 Nonborrowed reserves 47.60 45.09 41.33 38.33 38.89 38.69 38.36 38.50 38.33 39.72 39.30 37.66 13 Nonborrowed reserves plus extended credit5 47.60 45.09 41.33 38.33 38.89 38.69 38.36 38.50 38.33 39.72 39.30 37.66 14 Required reserves 46.24 43.70 40.36 37.22 38.46 38.05 37.63 37.58 37.22 38.54 37.92 36.33 15 Monetary base12 491.79 525.06 608.02 597.12 583.40 583.52 585.01 589.12 597.12 598.37 595.50 598.00 16 Excess reserves" 1.69 1.51 1.30 1.33 1.00 1.12 1.15 1.20 1.33 1.25 1.43 1.38 17 Borrowings from the Federal Reserve .32 .12 .32 .21 .58 .48 .42 .28 .21 .07 .05 .06 1. Latest monthly and biweekly figures are available from the Board's H.3 (502) weekly 8. To adjust required reserves for discontinuities that are due to regulatory changes in statistical release. Historical data starting in 1959 and estimates of the effect on required reserve requirements, a multiplicative procedure is used to estimate what required reserves reserves of changes in reserve requirements are available from the Money and Reserves would have been in past periods had current reserve requirements been in effect. Break- Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve adjusted required reserves include required reserves against transactions deposits and nonper- System, Washington, DC 20551. sonal time and savings deposits (but not reservable nondeposit liabilities). 2. Figures reflect adjustments for discontinuities, or "breaks," associated with regulatory 9. The break-adjusted monetary base equals (1) break-adjusted total reserves (line 6), plus changes in reserve requirements. (See also table 1.10.) (2) the (unadjusted) currency component of the money stock, plus (3) (for all quarterly 3. Seasonally adjusted, break-adjusted total reserves equal seasonally adjusted, break- reporters on the "Report of Transaction Accounts, Other Deposits and Vault Cash" and for all adjusted required reserves (line 4) plus excess reserves (line 16). those weekly reporters whose vault cash exceeds their required reserves) the break-adjusted 4. Seasonally adjusted, break-adjusted nonborrowed reserves equal seasonally adjusted, difference between current vault cash and the amount applied to satisfy current reserve break-adjusted total reserves (line 1) less total borrowings of depository institutions from the requirements. Federal Reserve (line 17). 10. Reflects actual reserve requirements, including those on nondeposit liabilities, with no 5. Extended credit consists of borrowing at the discount window under the terms and adjustments to eliminate the effects of discontinuities associated with regulatory changes in conditions established for the extended credit program to help depository institutions deal reserve requirements. with sustained liquidity pressures. Because there is not the same need to repay such 11. Reserve balances with Federal Reserve Banks plus vault cash used to satisfy reserve borrowing promptly as with traditional short-term adjustment credit, the money market effect requirements. of extended credit is similar to that of nonborrowed reserves. 12. The monetary base, not break-adjusted and not seasonally adjusted, consists of (1) total 6. The seasonally adjusted, break-adjusted monetary base consists of (1) seasonally reserves (line 11), plus (2) required clearing balances and adjustments to compensate for float adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency at Federal Reserve Banks, plus (3) the currency component of the money stock, plus (4) (for component of the money stock, plus (3) (for all quarterly reporters on the "Report of all quarterly reporters on the "Report of Transaction Accounts, Other Deposits and Vault Transaction Accounts, Other Deposits and Vault Cash" and for all those weekly reporters Cash" and for all those weekly reporters whose vault cash exceeds their required reserves) the whose vault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference between current vault cash and the amount applied to satisfy current reserve difference between current vault cash and the amount applied to satisfy current reserve requirements. Since February 1984, currency and vault cash figures have been measured over requirements. the computation periods ending on Mondays. 7. Break-adjusted total reserves equal break-adjusted required reserves (line 9) plus excess 13. Unadjusted total reserves (line 11) less unadjusted required reserves (line 14). reserves (line 16). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Monetary and Credit Aggregates A13 1.21 MONEY STOCK AND DEBT MEASURES1 Billions of dollars, averages of daily figures 2000 2001 1997 1998 1999 2000 IItteemm Dec. Dec. Dec. Dec. Dec. Jan. Feb. Mar. Seasonally adjusted Measures2 1 Ml 1,073.4 1,097.0 1,124.3 1,090.3 1,090.3 1,101.2 1,101.2 1,110.9 2 M2 4,030.4 4,383.4 4,650.0 4,943.4r 4,943.4r 4,993.9r 5,038.3r 5,099.0 3 M3 5,427.8 6,027.3 6,526.8 7,098.3r 7,098.3r 7,193.1r 7,261.9r 7,325.4 4 Debt 15,223. lr 16,277.9r 17,379.4r 18,303.3r 18,303.3r 18,360. lr 18,447.9 n.a. Ml components 5 Currency3 424.3 459.2 516.7 530.1 530.1 534.5 537.3 539.1 6 Travelers checks4 8.1 8.2 8.2 8.0 8.0 8.1 8.0 7.9 7 Demand deposits5 395.4 379.4 355.6 313.2 313.2 317.0 314.8r 315.4 8 Other checkable deposits6 245.7 250.1 243.7 239.0 239.0 241.7 241.1 248.5 Nontransaction components 9 In M27 2,957.0 3,286.4 3,525.7 3,853. lr 3,853.lr 3,892.7r 3,937. lr 3,988.1 10 In M3 only8 1,397.4 1,643.9 1,876.8 2,155.0r 2,155.0r 2,199.2r 2,223.6r 2,226.4 Commercial banks 11 Savings deposits, including MMDAs 1,021.1 1,185.8 1,287.0 l,420.4r 1.420.4r 1,435.9 1,464.4 1,490.2 12 Small time deposits9 625.5 626.4 635.2 699.9 699.9 702.8 699.3r 695.6 13 Large time deposits10'" 517.6 575.4 648.6 726.9 726.9 740.2 715.6 692.3 Thrift institutions 14 Savings deposits, including MMDAs 376.8 414.1 449.3 451.7 451.7 452.4 462.8 472.3 15 Small time deposits9 342.9 325.8 320.9 346.3 346.3 350.5 352.6r 352.9 16 Large time deposits10 85.5 88.7 91.3 103.1 103.1 106.1 106.7 106.8 Money market mutual funds 17 Retail 590.6 734.3 833.4 934.8r 934.8r 951. lr 958.0r 977.1 18 Institution-only 390.0 530.4 622.4 767.4 767.4 801.0 859.0 888.0 Repurchase agreements and eurodollars 19 Repurchase agreements12 254.3 297.5 341.2 360.5 360.5 357.3 348.3 342.3 20 Eurodollars12 150.0 151.8 173.3 197.1r 197 .r 194.7r 194.lr 197.0 Debt components 21 Federal debt 3,800.6 3,751.2 3.660.3 3,400.5 3,400.5 3,380.4 3,372.0 n.a. 22 Nonfederal debt 11,422.5 12,526.6 13,719.1r 14,902.8r 14,902.8' 14,979.6r 15,075.9 n.a. Not seasonally adjusted Measures2 23 Ml 1,096.9 1,120.4 1,147.8 1,114.6 1,114.6 1,101.4 1,088.6 1,105.6 24 M2 4,051.8 4,405.7 4,674.0 4,972. lr 4,972. lr 5,003.2r 5,037.0r 5,133.4 25 M3 5,453.1 6,059.4 6,564.2 7,143.5r 7,143.5r 7,223.3r 7,296.8r 7,387.6 26 Debt 15,218.8 16,273.1 17,374.8r 18,295.5r 18,295.5r 18,355.4r 18,439.8 n.a. MI components 27 Currency3 428.1 463.3 521.5 535.4 535.4 532.3 535.8r 539.1 28 Travelers checks4 8.3 8.4 8.4 8.1 8.1 8.2 8.2 8.0 29 Demand deposits5 412.4 395.9 371.2 328.6 328.6 317.0 305.7 310.3 30 Other checkable deposits6 248.2 252.8 246.6 242.5 242.5 243.9 238.9 248.2 Nontransaction components 31 In M27 2,954.9 3,285.3 3,526.3 3,857.5r 3,857.5r 3,901.8r 3,948.5r 4,027.8 32 In M3 only8 1,401.3 1,653.7 1,890.2 2,171.4r 2,171.4r 2,220. r 2,259.7r 2,254.2 Commercial banks 33 Savings deposits, including MMDAs 1,020.4 1,186.0 1,288.5 1,425.1r l,425.1r 1,433.6 l,456.2r 1,497.1 34 Small time deposits9 625.3 626.5 635.4 700.1 700.1 704.0r 701.7 697.3 35 Large time deposits10' 11 517.0 574.8 648.0 726.2 726.2 733.8r 716.0r 697.9 Thrift institutions 36 Savings deposits, including MMDAs 376.5 414.2 449.8 453.2 453.2 451.7 460.2 474.5 37 Small time deposits9 342.8 325.8 321.0 346.5r 346.5r 351.1 353.8r 353.8 38 Large time deposits10 85.4 88.6 91.2 103.0 103.0 105.2 106.7r 107.6 Money market mutual funds 39 Retail 589.9 732.7 831.5 932.6r 932.6r 961.4r 976.7r 1,005.1 40 Institution-only 397.0 542.4 637.3 785.3 785.3 827.8 889.0 905.7 Repurchase agreements and eurodollars 41 Repurchase agreements12 249.5 293.4 337.7 357.5 357.5 356.7 352.8 345.0 42 Eurodollars12 152.3 154.5 176.0 199.5r 199.5r 196.5r 195.2r 198.0 Debt components 43 Federal debt 3,805.8 3,754.9 3,663.2 3,403.5 3,403.5 3,373.2 3,368.7 n.a. 44 Nonfederal debt 11,413.0 12,518.2 13,711.6r 14,892.0r 14,892.0r 14,982.2r 15,071.1 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic NonfinancialS tatistics • June 2001 NOTES TO TABLE 1.21 1. Latest monthly and weekly figures are available from the Board's H.6 (508) weekly prises or federally related mortgage pools) and the nonfederal sectors (state and local statistical release. Historical data starting in 1959 are available from the Money and Reserves governments, households and nonprofit organizations, nonfinancial corporate and nonfarm Projections Section, Division of Monetary Affairs, Board of Governors of the Federal Reserve noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions; (2) travelers checks of nonbank issuers; (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float; and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and seasonally adjusted M1. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars subtracted from small time deposits. (overnight and term) held by U.S. residents at foreign branches of U.S. banks worldwide and 10. Large time deposits are those issued in amounts of $100,000 or more, excluding those at all banking offices in the United Kingdom and Canada. Excludes amounts held by booked at international banking facilities. depository institutions, the U.S. government, money market funds, and foreign banks and 11. Large time deposits at commercial banks less those held by money market funds, official institutions. Seasonally adjusted M3 is calculated by summing large time deposits, depository institutions, the U.S. government, and foreign banks and official institutions. institutional money fund balances, RP liabilities, and eurodollars, each seasonally adjusted 12. Includes both overnight and term. separately, and adding this result to seasonally adjusted M2. Debt: The debt aggregate is the outstanding credit market debt of the domestic nonfinancial sectors—the federal sector (U.S. government, not including government-sponsored enter- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A15 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1 A. All commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2000r 2001 2001 Mar.r Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Seasonally adjusted Assets 1 Bank credit 4,887.9 5,159.5 5,147.5 5,166.5 5,216.2 5,266.5 5,280.4 5,288.6 5,289.2 5,273.8 5,287.7 5,297.2 2 Securities in bank credit 1,279.0 1,332.4 1,316.8 1,311.4 1,335.2 1,356.5 1,351.2 1,344.6 1,338.5 1,334.1 1,344.0 1,352.2 3 U.S. government securities 815.2 804.7 794.4 786.1 788.8 786.8 777.4 758.1 764.3 752.6 755.2 756.4 4 Other securities 463.8 527.7 522.4 525.3 546.4 569.7 573.8 586.5 574.2 581.5 588.8 595.8 5 Loans and leases in bank credit2 ... 3,608.9 3,827.1 3,830.7 3,855.1 3,880.9 3,910.0 3,929.1 3,944.0 3,950.7 3,939.6 3,943.7 3,945.0 6 Commercial and industrial 1,033.2 1,080.4 1,082.8 1,087.0 1,094.4 1,109.8 1,118.5 1,117.8 1,120.0 1,118.5 1,119.6 1,116.9 7 Real estate 1,533.8 1,635.4 1,638.4 1,651.3 1,658.0 1,661.1 1,671.4 1,679.0 1,683.7 1,674.5 1,680.3 1,677.1 8 Revolving home equity 108.8 121.7 125.0 127.1 129.4 131.2 132.3 133.8 133.1 133.3 134.6 134.1 9 Other 1,425.0 1,513.7 1,513.4 1,524.2 1,528.6 1,529.9 1,539.1 1,545.2 1,550.6 1,541.2 1,545.7 1,543.0 10 Consumer 504.7 531.5 530.1 533.9 537.0 540.8 540.3 538.3 537.8 537.1 537.5 540.2 11 Security3 143.4 168.5 164.1 165.1 168.8 170.3 169.1 173.9 177.2 174.5 166.2 175.0 12 Other loans and leases 393.8 411.3 415.4 417.8 422.8 427.9 429.9 434.9 432.0 435.0 440.0 435.7 13 Interbank loans 225.1 238.5 246.5 245.9 252.2 270.2 266.7 275.0 260.2 276.9 284.7 275.1 14 Cash assets4 272.1 267.7 267.1 256.1 267.2 273.0 265.1 267.9 266.1 257.7 285.4 263.0 15 Other assets5 368.8 401.1 413.6 402.7 397.3 412.8 419.6 430.8 424.1 433.6 437.9 427.1 16 Total assets6 5,694.6 6,004.5 6,012.5 6,008.5 6,069.0 6,157.7 6,166.8 6,197.5 6,174.9 6,177.2 6,231.1 6,197.6 Liabilities 17 Deposits 3,572.6 3,769.1 3,784.4 3,778.7 3,845.9 3,891.4 3,889.2 3,923.5 3,904.3 3,926.1 3,902.2 3,936.4 18 Transaction 626.0 607.5 611.1 601.2 602.0 608.8 607.7 607.3 587.9 604.7 613.8 631.0 19 Nontransaction 2,946.6 3,161.6 3,173.3 3,177.5 3,243.9 3,282.6 3,281.4 3,316.3 3,316.4 3,321.4 3,288.4 3,305.4 20 Large time 855.5 919.6 917.6 917.4 935.3 946.8 941.5 933.5 930.8 931.8 920.5 941.8 21 Other 2,091.1 2,242.1 2,255.7 2,260.1 2,308.6 2,335.8 2,339.9 2,382.8 2,385.6 2,389.6 2,367.9 2,363.6 22 Borrowings 1,148.7 1,213.7 1,208.7 1,202.9 1,242.1 1,262.3 1,258.0 1,243.7 1,235.1 1,232.5 1,251.4 1,244.2 23 From banks in the U.S 370.8 380.9 374.0 368.7 396.7 397.4 395.9 395.0 388.4 387.2 400.5 398.0 24 From others 777.9 832.8 834.8 834.2 845.4 864.9 862.1 848.7 846.7 845.3 850.9 846.2 25 Net due to related foreign offices 241.0 262.9 252.6 244.3 225.7 221.2 219.3 233.5 242.1 223.9 273.9 222.9 26 Other liabilities 295.2 339.4 347.9 347.2 345.1 362.7 344.0 355.5 342.0 356.9 364.5 356.9 27 Total liabilities 5,257.4 5,585.1 5,593.7 5,573.0 5,658.9 5,737.6 5,710.5 5,7563 5,723.5 5,739.4 5,792.1 5,760/4 28 Residual (assets less liabilities)7 437.2 419.4 418.8 435.4 410.1 420.2 456.3 441.2 451.4 437.8 439.0 437.2 Not seasonally adjusted Assets 29 Bank credit 4,881.3 5,154.4 5,155.0 5,185.6 5,252.5 5,281.3 5,275.4 5,276.0 5,287.0 5,265.5 5,271.3 5,274.9 30 Securities in bank credit 1,284.7 1,328.2 1,313.7 1,315.4 1,340.8 1,361.6 1,353.0 1,348.7 1,345.3 1,340.5 1,345.5 1,353.8 31 U.S. government securities 822.3 801.2 789.3 787.1 788.6 789.0 779.2 764.0 770.8 758.6 760.2 761.3 32 Other securities 462.4 527.0 524.4 528.3 552.2 572.6 573.9 584.7 574.5 581.8 585.3 592.5 33 Loans and leases in bank credit2 ... 3,596.7 3,826.2 3,841.3 3,870.2 3,911.7 3,919.6 3,922.3 3,927.2 3,941.7 3,925.0 3,925.8 3,921.0 34 Commercial and industrial 1,034.9 1,077.2 1,082.3 1,088.1 1,096.6 1,107.1 1,117.8 1,119.4 1,120.5 1,118.1 1,122.7 1,118.5 35 Real estate 1,527.1 1,638.2 1,641.7 1,656.9 1,662.6 1,660.2 1,664.9 1,671.7 1,677.0 1,668.4 1,671.5 1,668.8 36 Revolving home equity 107.4 122.9 126.0 127.7 129.5 130.4 131.2 132.3 131.8 131.9 132.9 132.4 37 Other 1,419.6 1,515.4 1,515.7 1,529.1 1,533.2 1,529.8 1,533.7 1,539.4 1,545.2 1,536.5 1,538.6 1,536.4 38 Consumer 501.8 534.0 529.9 534.3 542.8 545.1 540.9 534.5 534.8 533.7 533.9 535.9 39 Credit cards and related plans.. n.a. 210.0 206.7 209.9 218.7 218.8 213.8 209.6 208.8 208.2 208.9 212.0 40 Other n.a. 324.0 323.2 324.4 324.1 326.3 327.1 324.9 326.0 325.4 325.0 323.9 41 Security3 142.2 163.6 171.2 171.1 181.0 178.1 171.9 170.0 179.0 174.3 162.4 166.3 42 Other loans and leases 390.7 413.1 416.1 419.9 428.7 429.1 426.8 431.7 430.3 430.5 435.4 431.6 43 Interbank loans 229.0 231.1 242.0 252.6 261.0 272.2 268.5 282.3 274.8 285.3 286.3 274.9 44 Cash assets4 262.4 263.8 267.9 263.2 286.5 289.1 266.2 258.0 257.6 251.1 269.9 251.9 45 Other assets5 368.2 401.0 410.0 402.4 403.5 414.6 418.8 430.1 426.5 433.3 435.1 423.0 46 Total assets6 5,681.6 5,987.7 6,012.9 6,041.0 6,139.5 6,192.7 6,163.8 6,181.5 6,181.0 6,1703 6,197.8 6,160.0 Liabilities 47 Deposits 3,580.2 3,747.1 3,773.0 3,800.7 3,892.4 3,906.2 3,906.1 3,933.9 3,931.3 3,938.9 3,895.0 3,932.1 48 Transaction 619.6 602.6 605.1 607.4 631.2 620.6 599.6 601.3 583.8 600.1 598.2 622.8 49 Nontransaction 2,960.6 3,144.5 3,167.9 3,193.3 3,261.2 3,285.6 3,306.5 3,332.6 3,347.6 3,338.8 3,296.8 3,309.3 50 Large time 858.9 909.0 912.6 924.8 949.3 959.9 953.3 936.6 937.0 935.0 922.5 944.2 51 Other 2,101.7 2,235.5 2,255.3 2,268.5 2,311.9 2,325.7 2,353.2 2,395.9 2,410.6 2,403.7 2,374.3 2,365.0 52 Borrowings 1,148.2 1,210.6 1,206.9 1,211.3 1,245.0 1,279.6 1,261.6 1,242.1 1,239.1 1,232.0 1,255.4 1,233.3 53 From banks in the U.S 375.2 373.8 369.3 369.5 398.6 403.6 400.3 398.6 394.1 391.1 405.0 399.0 54 From others 773.0 836.7 837.6 841.8 846.4 876.0 861.3 843.4 845.1 840.9 850.4 834.3 55 Net due to related foreign offices .... 239.6 264.1 253.0 246.6 230.6 225.4 225.5 232.5 247.2 222.1 268.5 222.1 56 Other liabilities 294.0 339.5 348.1 349.1 347.5 365.1 348.0 354.3 343.9 355.2 360.4 356.9 57 Total liabilities 5062.0 5,561.3 5,581.0 5,607.7 5,715.6 5,776.2 5,741.1 5,76Z7 5,761.6 5,748.2 5,779.2 5,7443 58 Residual (assets less liabilities)7 419.5 426.4 431.9 433.3 423.9 416.5 422.7 418.8 419.4 422.1 418.6 415.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • June 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2000r 2001 2001 Mar.r Sept. Oct. Nov. Dec. Jan.r Feb.1 Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Seasonally adjusted Assets 1 Bank credit 4,339.4 4,562.9 4,560.2 4,578.3 4,616.7 4,651.7 4,670.0 4,668.3 4,678.2 4,656.7 4,665.9 4,668.1 ? Securities in bank credit 1,082.9 1,121.0 1,115.0 1.115.8 1,130.2 1,147.6 1,151.4 1,139.2 1,137.2 1,132.3 1,138.0 1,143.7 U.S. government securities 737.3 729.1 724.4 718.0 719.5 719.5 712.9 690.3 698.7 686.8 686.9 687.4 4 Other securities 345.5 391.9 390.7 397.9 410.6 428.1 438.5 448.9 438.5 445.4 451.1 456.2 Loans and leases in bank credit2 3,256.5 3,441.8 3,445.1 3,462.5 3,486.5 3,504.1 3,518.6 3,529.1 3,541.0 3,524.4 3,527.9 3,524.4 6 Commercial and industrial 835.1 875.6 879.1 881.0 885.4 895.3 900.3 897.7 900.0 898.3 898.0 897.5 7 Real estate 1,516.6 1,617.2 1,620.3 1,632.8 1,639.4 1,642.2 1,652.7 1,660.6 1,665.3 1,656.1 1,661.9 1,658.4 8 Revolving home equity 108.8 121.7 125.0 127.1 129.4 131.2 132.3 133.8 133.1 133.3 134.6 134.1 9 Other 1,407.8 1,495.5 1,495.3 1,505.7 1,510.0 1,510.9 1,520.4 1,526.8 1,532.2 1,522.7 1,527.2 1,524.3 in 504.7 531.5 530.1 533.9 537.0 540.8 540.3 538.3 537.8 537.1 537.5 540.2 n 72.9 73.6 67.4 64.7 68.7 65.1 63.3 67.4 74.2 67.4 63.2 62.2 i? Other loans and leases 327.3 344.0 348.2 350.1 356.0 360.7 362.0 365.1 363.7 365.6 367.2 366.0 n 196.5 214.9 219.4 219.1 225.2 240.9 238.1 244.4 227.3 246.8 251.8 247.4 14 225.1 223.1 225.0 217.5 227.3 231.5 223.2 227.2 225.0 218.6 243.9 222.6 15 Other assets5 329.7 357.6 372.3 362.7 361.1 375.7 383.0 392.5 388.9 394.3 399.9 388.2 16 Total assets6 5,031.8 5,296.4 5,315.1 5,315.4 5,366.8 5,435.4 5,449.7 5,468.0 5,455.0 5,452.1 5,497.2 5,461.8 Liabilities 17 Deposits 3,193.2 3,387.5 3,405.5 3,401.5 3,467.6 3,505.4 3,510.1 3,546.1 3,531.0 3,550.6 3,533.6 3,551.1 18 614.8 597.5 600.4 590.4 591.3 598.1 597.5 597.8 578.4 595.5 604.3 621.5 19 Nontransaction 2,578.3 2,790.0 2,805.1 2,811.1 2,876.3 2,907.3 2,912.6 2,948.3 2,952.5 2,955.0 2,929.3 2,929.6 ?n 489.7 544.1 545.6 547.2 563.9 567.5 568.8 567.7 569.1 567.6 563.6 568.2 ?1 Other 2,088.7 2,245.9 2,259.5 2,263.9 2,312.5 2,339.8 2,343.8 2,380.6 2,383.4 2,387.4 2,365.7 2,361.4 ?? Borrowings 971.5 996.3 987.7 979.9 1,002.8 1,020.7 1,020.8 1,010.1 1,003.9 1,000.1 1,017.7 1,009.4 ?3 351.0 361.0 355.0 350.1 374.5 372.3 373.5 370.9 366.6 361.7 373.7 376.2 ?4 620.4 635.4 632.7 629.8 628.3 648.4 647.3 639.2 637.2 638.4 644.0 633.2 75 Net due to related foreign offices .... 219.8 241.4 236.1 237.1 227.6 217.7 214.6 211.8 222.4 199.7 237.4 206.5 26 Other liabilities 222.1 260.8 268.2 271.8 272.8 285.2 266.6 272.7 264.1 273.6 279.2 274.1 27 Total liabilities 4,606.6 4,886.1 4,897.5 4,890.2 4,970.8 5,029.0 5,012.1 5,040.7 5,021.4 5,023.9 5,068.0 5,041.2 28 Residual (assets less liabilities)7 425.2 410.3 417.6 425.2 396.0 406.5 437.7 427.3 433.6 428.2 429.2 420.6 Not seasonally adjusted Assets 29 Bank credit 4,335.8 4,559.5 4,563.5 4,594.8 4,642.3 4,658.4 4,661.7 4,660.5 4,678.5 4,651.5 4,653.7 4,652.7 30 Securities in bank credit 1,088.5 1,116.8 1,111.9 1,119.9 1.135.8 1,152.8 1,153.2 1,143.3 1,144.0 1,138.6 1,139.4 1,145.3 31 U.S. government securities 744.4 725.6 719.4 719.1 719.3 721.7 714.6 696.2 705.2 692.9 691.9 692.4 32 Other securities 344.1 391.2 392.6 400.8 416.4 431.1 438.5 447.2 438.8 445.7 447.6 452.9 33 Loans and leases in bank credit2 3,247.2 3,442.7 3,451.6 3,475.0 3,506.6 3,505.6 3,508.5 3,517.2 3,534.5 3,512.9 3,514.3 3,507.4 34 Commercial and industrial 836.0 872.7 878.4 881.4 885.2 890.9 897.4 898.1 899.2 896.9 899.4 898.2 35 Real estate 1,509.9 1,620.1 1,623.6 1,638.3 1,644.1 1,641.2 1,646.2 1,653.2 1,658.6 1,650.0 1,653.1 1,650.1 36 Revolving home equity 107.4 122.9 126.0 127.7 129.5 130.4 131.2 132.3 131.8 131.9 132.9 132.4 37 Other 1,402.4 1,497.2 1,497.6 1,510.6 1,514.6 1,510.8 1,515.0 1,520.9 1,526.8 1,518.1 1,520.2 1,517.7 38 Consumer 501.8 534.0 529.9 534.3 542.8 545.1 540.9 534.5 534.8 533.7 533.9 535.9 39 Credit cards and related plans. . n.a. 210.0 206.7 209.9 218.7 218.8 213.8 209.6 208.8 208.2 208.9 212.0 40 Other n.a. 324.0 323.2 324.4 324.1 326.3 327.1 324.9 326.0 325.4 325.0 323.9 41 Security3 75.5 69.9 70.3 69.2 74.7 67.6 65.1 69.4 80.1 70.8 65.0 61.4 42 Other loans and leases 324.1 346.0 349.4 351.7 359.7 360.8 358.9 361.9 361.8 361.5 362.9 361.9 43 Interbank loans 200.4 207.4 215.0 225.8 233.9 242.9 239.9 251.7 241.8 255.2 253.4 247.2 44 Cash assets4 217.0 220.1 225.0 222.5 243.8 244.9 224.1 218.7 217.7 213.5 230.0 212.6 45 Other assets5 328.3 357.8 369.3 362.4 365.6 376.3 381.2 391.2 389.7 392.6 397.0 384.2 46 Total assets6 5,022.5 5,282.5 5,311.2 5,343.2 5,422.1 5,458.5 5,442.4 5,457.6 5,463.2 5,448.2 5,469.7 5,432.4 Liabilities 47 Deposits 3,196.1 3,372.8 3,400.3 3,420.8 3,503.5 3,510.3 3,518.8 3,552.0 3,554.4 3,559.7 3,522.3 3,539.5 48 Transaction 608.8 592.3 594.3 596.4 619.8 609.7 589.5 592.1 574.7 591.3 589.0 613.4 49 Nontransaction 2,587.3 2,780.5 2,806.0 2,824.4 2.883.7 2,900.6 2,929.3 2,959.9 2,979.7 2,968.5 2,933.4 2,926.1 50 Large time 488.1 541.2 546.9 552.1 567.7 570.8 572.1 566.2 571.3 567.0 561.3 563.3 51 Other 2,099.2 2,239.2 2,259.0 2,272.3 2,315.9 2,329.8 2,357.2 2,393.7 2,408.4 2,401.5 2,372.0 2,362.8 52 Borrowings 971.0 993.2 985.9 988.3 1,005.7 1,038.0 1,024.4 1,008.5 1,007.9 999.6 1,021.7 998.5 53 From banks in the U.S 355.5 353.9 350.3 350.9 376.4 378.5 377.9 374.5 372.3 365.7 378.2 377.2 54 From others 615.5 639.3 635.5 637.4 629.3 659.5 646.5 634.0 635.6 634.0 643.5 621.2 55 Net due to related foreign offices .... 218.4 240.6 236.3 239.0 227.7 218.6 217.4 210.6 221.8 198.4 234.3 207.6 56 Other liabilities 220.8 260.1 268.3 273.5 273.1 286.2 269.2 271.4 263.6 272.1 276.1 274.9 57 Total liabilities 4,606.3 4,866.7 4,890.7 4,921.6 5,010.0 5,053.1 5,029.8 5,042.4 5,047.7 5,029.9 5,054.4 5,020.4 58 Residual (assets less liabilities)7 416.2 415.9 420.5 421.5 412.1 405.4 412.6 415.2 415.6 418.3 415.3 412.0 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 2000 2000r 2001 2001 Mar.r Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Seasonally adjusted Assets 1 Bank credit 2,454.8 2,552.3 2,537.3 2,535.8 2,553.5 2,571.3 2,582.7 2,590.1 2,596.1 2,580.9 2,588.3 2,590.1 2 Securities in bank credit 570.1 587.4 577.9 573.6 580.8 592.2 595.3 591.1 584.1 584.2 591.9 597.8 3 U.S. government securities 364.0 359.2 355.4 348.6 352.1 353.3 349.4 338.8 340.5 335.4 337.4 339.4 4 Trading account 21.2 22.8 21.2 21.6 28.8 34.2 37.5 35.4 37.4 36.5 32.7 32.8 5 Investment account 342.8 336.4 334.2 327.0 323.2 319.1 311.9 303.3 303.2 299.0 304.6 306.6 6 Other securities 206.1 228.2 222.5 225.0 228.7 238.9 245.9 252.3 243.6 248.7 254.5 258.4 7 Trading account 91.7 114.8 111.7 114.5 119.0 126.0 129.3 132.5 127.8 128.8 132.2 137.3 8 Investment account 114.4 113.4 110.7 110.6 109.8 112.9 116.6 119.9 115.8 119.9 122.3 121.1 9 State and local government . 25.0 25.7 25.9 26.3 26.3 27.1 27.6 28.1 27.7 27.8 28.4 28.3 10 Other 89.4 87.6 84.8 84.3 83.5 85.8 89.0 91.8 88.0 92.2 93.9 92.8 11 Loans and leases in bank credit2 . . . 1,884.7 1,965.0 1,959.4 1,962.2 1,972.7 1,979.1 1,987.4 1.999.0 2,012.0 1,996.7 1,996.4 1,992.2 12 Commercial and industrial 571.5 590.8 591.5 590.8 594.6 599.9 602.9 599.5 602.7 601.3 600.5 596.8 13 Bankers acceptances 1.0 .9 .8 .9 .9 .8 .8 .8 .8 .8 .8 ..88 14 Other 570.5 589.9 590.7 590.0 593.8 599.1 602.1 598.8 601.9 600.5 599.7 559966..00 15 Real estate 777.6 822.4 817.8 821.1 820.9 821.7 827.7 835.7 839.6 830.8 835.8 835.2 16 Revolving home equity 70.2 77.3 79.5 81.0 82.4 83.6 84.3 85.8 85.1 85.4 86.5 8866..11 17 Other 707.4 745.1 738.4 740.1 738.5 738.1 743.4 749.9 754.5 745.4 749.3 774499..11 18 Consumer 228.1 234.0 235.0 236.4 236.3 236.8 238.8 239.7 239.9 239.9 239.0 240.1 19 Security3 66.8 66.6 60.5 58.1 61.6 57.9 55.7 59.3 66.5 59.3 54.8 54.0 20 Federal funds sold to and repurchase agreements with broker-dealers 45.7 46.4 42.8 41.7 46.2 41.7 39.4 4433..66 51.7 4444..33 3388..44 3377..88 21 Other 21.1 20.2 17.7 16.4 15.3 16.2 16.2 15.7 14.8 15.1 16.4 16.2 22 State and local government 12.5 12.8 12.8 12.7 12.5 12.6 12.6 12.7 12.7 12.7 12.7 12.6 23 Agricultural 9.5 9.5 9.5 9.6 9.7 9.8 10.0 10.1 10.1 10.2 10.2 10.1 24 Federal funds sold to and repurchase agreements with others 14.6 16.2 17.0 19.0 21.0 25.7 26.1 2266..00 2255..11 2277..00 2266..88 2266..99 25 All other loans 85.4 86.1 87.5 86.4 87.7 86.2 84.8 85.6 86.3 84.9 85.9 86.0 26 Lease-financing receivables 118.8 126.5 127.8 128.1 128.4 128.4 128.8 130.3 129.2 130.7 130.8 130.5 27 Interbank loans 135.8 132.7 137.0 138.6 137.7 153.6 140.6 136.6 128.4 139.6 141.4 134.6 28 Federal funds sold to and repurchase agreements with commercial banks 67.1 57.7 59.1 62.1 63.8 78.9 70.3 7700..33 6622..00 7744..00 7722..66 6688..77 29 Other 68.8 75.0 77.8 76.6 73.9 74.8 70.3 66.2 66.5 65.6 68.8 65.9 30 Cash assets4 147.6 142.8 143.8 139.0 144.1 146.0 137.3 141.6 139.2 135.1 156.8 137.3 31 Other assets5 225.1 249.2 259.8 254.1 248.5 260.2 262.5 271.4 266.1 274.2 281.2 267.7 32 Total assets6 2,928.6 3,041.4 3,0423 3,031.8 3,047.1 3,093.8 3,085.4 3,102.1 3,092.2 3,092.2 3,130.1 3,092.1 Liabilities 33 Deposits 1,633.5 1,650.5 1,652.9 1,642.2 1,672.1 1,679.9 1,673.3 1,699.5 1,691.7 1,709.0 1,688.5 1,697.9 34 Transaction 316.0 303.1 304.5 296.2 297.0 300.1 298.0 301.4 291.7 305.5 304.2 309.1 35 Nontransaction 1,317.5 1,347.4 1,348.4 1,346.0 1,375.1 1,379.8 1,375.3 1,398.0 1,400.0 1,403.5 1,384.2 1,388.8 36 Large time 241.0 257.6 256.2 254.4 265.1 267.0 262.5 264.6 266.1 266.2 260.5 263.8 37 Other 1,076.5 1,089.8 1,092.2 1,091.6 1,110.0 1,112.7 1,112.8 1,133.4 1,133.9 1,137.3 1,123.7 1,125.0 38 Borrowings 645.9 658.0 657.8 652.6 666.2 676.8 679.5 676.8 670.4 669.3 682.0 676.3 39 From banks in the U.S 194.2 195.7 198.1 196.0 214.0 213.9 215.6 219.6 215.5 212.5 221.1 223.2 40 From others 451.8 462.3 459.7 456.7 452.3 462.9 463.9 457.2 454.9 456.9 460.8 453.2 41 Net due to related foreign offices 214.5 220.9 212.7 213.4 206.7 200.9 197.9 196.4 206.1 184.7 220.2 191.2 42 Other liabilities 163.9 210.6 216.1 217.9 218.7 231.8 212.2 216.6 208.2 217.5 223.3 218.0 43 Total liabilities 2,657.8 2,740.0 2,739.5 2,726.1 2,763.7 2,789.4 2,763.0 2,7893 2,7763 2,780.6 2,813.9 2,783.4 44 Residual (assets less liabilities)7 270.8 301.4 302.8 305.7 283.5 304.4 322.4 312.8 315.9 311.6 316.2 308.7 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Nonfinancial Statistics • June 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2000 2000r 2001 2001 Mar/ Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Not seasonally adjusted Assets 45 Bank credit 2,454.2 2,543.9 2,539.3 2,551.6 2,574.6 2,582.3 2,585.5 2,586.6 2,603.9 2,580.1 2,580.5 2,577.2 46 Securities in bank credit 573.6 583.5 577.2 579.4 587.2 598.0 599.0 593.0 591.2 588.4 590.6 595.5 47 U.S. government securities 368.9 356.1 352.8 351.4 352.7 356.1 353.1 342.4 347.3 339.4 339.6 340.4 48 Trading account 21.5 22.6 21.1 21.8 28.9 34.5 37.9 35.8 38.1 36.9 33.0 32.9 49 Investment account 347.5 333.5 331.8 329.6 323.8 321.6 315.2 306.6 309.2 302.4 306.7 307.5 50 Mortgage-backed securities , . 224.1 209.0 211.1 211.4 213.4 219.7 215.6 214.0 211.7 210.5 216.9 216.4 51 Other 123.3 124.5 120.7 118.2 110.4 101.9 99.6 92.5 97.5 91.9 89.7 91.2 52 One year or less 30.0 33.3 32.0 32.7 31.3 31.4 33.6 33.3 35.0 32.9 32.2 32.6 53 One to five years 54.6 53.8 51.6 49.9 45.0 38.4 37.0 34.1 35.7 34.2 33.4 33.2 54 More than five years . . . 38.7 37.5 37.0 35.6 34.1 32.0 29.0 25.2 26.8 24.7 24.1 25.3 55 Other securities 204.6 227.5 224.4 228.0 234.5 241.9 246.0 250.5 243.9 249.0 251.0 255.1 56 Trading account 91.1 114.5 112.7 116.0 122.0 127.6 129.3 131.5 128.0 128.9 130.3 135.6 57 Investment account 113.6 113.0 111.7 112.0 112.5 114.3 116.6 119.0 115.9 120.1 120.6 119.5 58 State and local government . . 24.8 25.7 26.1 26.6 26.9 27.5 27.6 27.9 27.8 27.8 28.0 27.9 59 Other 88.8 87.3 85.6 85.4 85.6 86.8 89.0 91.1 88.2 92.3 92.6 91.6 60 Loans and leases in bank credit2 . . 1,880.6 1,960.3 1,962.1 1,972.2 1,987.4 1,984.3 1,986.4 1,993.7 2,012.7 1,991.7 1,989.9 1,981.7 61 Commercial and industrial 572.4 589.3 591.3 592.0 593.7 596.4 601.7 600.3 603.0 600.6 601.7 597.4 62 Bankers acceptances 1.0 .9 .8 .9 .9 .8 .8 .8 .8 .8 .8 .8 63 Other 571.4 588.5 590.4 591.1 592.8 595.6 601.0 599.5 602.2 599.8 601.0 596.6 64 Real estate 772.4 823.8 820.2 826.3 825.5 822.4 824.5 829.9 835.3 826.3 829.2 827.6 65 Revolving home equity 69.0 78.3 80.3 81.4 82.3 82.8 83.3 84.4 83.9 84.0 85.0 84.6 66 Other 425.2 460.4 454.3 457.5 455.9 454.5 454.6 459.0 465.2 455.6 457.3 456.1 67 Commercial 278.2 285.1 285.6 287.4 287.3 285.1 286.5 286.6 286.2 286.6 286.8 286.9 68 Consumer 227.5 233.1 232.8 234.9 238.3 240.3 240.9 239.4 240.2 239.5 238.5 239.5 69 Credit cards and related plans. . n.a. 75.4 76.5 78.0 82.3 83.3 83.0 82.5 82.7 82.7 81.9 82.7 70 Other n.a. 157.7 156.3 156.9 156.1 157.0 157.9 156.9 157.5 156.8 156.6 156.8 71 Security3 69.2 63.0 63.3 62.2 67.4 60.5 57.5 61.1 71.8 62.5 56.6 53.2 72 Federal funds sold to and repurchase agreements with broker-dealers .... 47.4 43.9 44.8 44.6 50.6 43.6 40.7 44.9 55.9 46.6 39.6 37.2 73 Other 21.8 19.1 18.5 17.6 16.8 16.9 16.8 16.1 16.0 15.9 16.9 15.9 74 State and local government .... 12.5 12.8 12.8 12.7 12.5 12.6 12.6 12.7 12.7 12.7 12.7 12.6 75 Agricultural 9.2 9.6 9.6 9.6 9.7 9.8 9.8 9.9 9.9 9.9 9.9 9.8 76 Federal funds sold to and repurchase agreements with others 14.6 16.2 17.0 19.0 21.0 25.7 26.1 26.0 25.1 27.0 26.8 26.9 77 All other loans 83.4 87.1 87.6 87.7 90.6 86.2 83.1 83.7 84.7 82.0 83.5 83.9 78 Lease-financing receivables .... 119.3 125.2 127.5 127.8 128.7 130.4 130.2 130.8 130.0 131.2 131.0 130.8 79 Interbank loans 136.5 128.3 131.4 139.5 141.5 155.1 139.5 137.7 130.8 141.2 141.1 134.4 80 Federal funds sold to and repurchase agreements with commercial banks 67.5 55.8 56.8 62.5 65.6 79.6 69.8 70.9 63.1 74.9 72.4 68.6 81 Other 69.1 72.5 74.6 77.0 76.0 75.6 69.7 66.8 67.7 66.4 68.6 65.8 82 Cash assets4 142.2 139.3 143.3 140.1 155.4 156.9 139.1 136.8 134.3 133.0 148.5 131.4 83 Other assets5 223.8 249.4 256.8 253.7 253.0 260.8 260.7 270.1 267.0 272.5 278.3 263.7 84 Total assets6 2,921.8 3,024.9 3,035.4 3,049.0 3,087.9 3,118.0 3,087.1 3,093.5 3,098.1 3,089.0 3,110.7 3,0693 Liabilities 85 Deposits 1,631.6 1,641.3 1,646.8 1,649.4 1,689.9 1,686.1 1,681.1 1,697.9 1,701.3 1,709.8 1,676.6 1,685.1 86 Transaction 311.8 298.0 299.0 298.5 314.8 309.1 294.9 297.7 287.4 302.5 295.0 305.3 87 Nontransaction 1,319.7 1,343.3 1,347.8 1,350.8 1,375.1 1,377.0 1,386.2 1,400.2 1,413.9 1,407.3 1,381.6 1,379.8 88 Large time 239.4 254.8 257.6 259.2 269.0 270.4 265.8 263.1 268.3 265.5 258.2 258.9 89 Other 1,080.4 1,088.5 1,090.1 1,091.6 1,106.1 1,106.7 1,120.4 1,137.1 1,145.6 1,141.8 1,123.4 1,120.9 90 Borrowings 645.5 654.9 656.0 661.1 669.1 694.0 683.1 675.2 674.4 668.8 685.9 665.4 91 From banks in the U.S 198.6 188.7 193.4 196.8 215.8 220.1 220.0 223.2 221.2 216.4 225.6 224.2 92 From nonbanks in the U.S 446.9 466.2 462.6 464.3 453.3 473.9 463.1 452.0 453.3 452.4 460.3 441.2 93 Net due to related foreign offices . .. 213.1 220.0 212.8 215.4 206.8 201.8 200.8 195.2 205.4 183.5 217.0 192.2 94 Other liabilities 162.6 209.8 216.1 219.7 219.0 232.8 214.8 215.3 207.6 216.1 220.2 218.8 95 Total liabilities 2,652.7 2,726.0 2,731.7 2,745.4 2,784.8 2,814.8 2,779.8 2,783.6 2,788.8 2,778.2 2,799.7 2,761.4 96 Residual (assets less liabilities)7 269.1 298.9 303.7 303.6 303.1 303.2 307.4 309.9 309.3 310.8 311.0 307.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2000r 2001 2001 Mar.r Sept. Oct. Nov. Dec. Jan.r Feb/ Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Seasonally adjusted Assets 1 Bank credit 1,884.6 2,010.5 2,022.9 2,042.5 2,063.2 2,080.4 2,087.3 2,078.2 2,082.1 2,075.8 2,077.6 2,078.0 2 Securities in bank credit 512.8 533.7 537.2 542.2 549.4 555.4 556.1 548.1 553.1 548.1 546.1 545.9 3 U.S. government securities 373.3 369.9 369.0 369.4 367.5 366.2 363.5 351.5 358.2 351.4 349.5 348.0 4 Other securities 139.5 163.7 168.2 172.8 181.9 189.2 192.6 196.6 194.9 196.7 196.6 197.9 5 Loans and leases in bank credit2 1,371.8 1,476.9 1,485.7 1,500.3 1,513.8 1,525.1 1,531.2 1,530.1 1,529.0 1,527.7 1,531.5 1,532.1 6 Commercial and industrial 263.7 284.8 287.6 290.1 290.8 295.4 297.4 298.2 297.3 297.0 297.6 300.7 7 Real estate 739.0 794.8 802.4 811.7 818.5 820.4 825.0 824.9 825.8 825.3 826.0 823.2 8 Revolving home equity 38.5 44.3 45.5 46.1 47.0 47.6 48.0 48.1 48.0 48.0 48.1 48.1 9 Other 700.4 750.5 757.0 765.6 771.5 772.8 777.0 776.9 777.7 777.3 778.0 775.2 10 Consumer 276.6 297.4 295.1 297.5 300.7 304.0 301.6 298.6 298.0 297.2 298.6 300.1 11 Security3 6.0 7.0 6.9 6.7 7.1 7.2 7.6 8.1 7.7 8.1 8.4 8.2 12 Other loans and leases 86.5 92.9 93.7 94.3 96.8 98.0 99.6 100.3 100.2 100.1 100.9 99.9 13 Interbank loans 60.7 82.2 82.5 80.4 87.5 87.3 97.5 107.8 98.9 107.2 110.4 112.8 14 Cash assets4 77.5 80.3 81.2 78.6 83.2 85.4 85.9 85.6 85.8 83.5 87.2 85.3 15 Other assets5 104.6 108.4 112.5 108.7 112.6 115.5 120.5 121.1 122.8 120.1 118.7 120.5 16 Total assets6 2,103.2 2,255.0 2,272.8 2,283.6 2,319.7 2,341.7 2364.4 2,365.9 2,362.8 2359.9 2367.1 2369.7 Liabilities 17 Deposits 1,559.6 1,737.0 1,752.6 1,759.3 1,795.6 1,825.5 1,836.7 1,846.7 1,839.3 1,841.6 1,845.2 1,853.2 18 Transaction 298.8 294.4 295.9 294.2 294.3 298.0 299.5 296.4 286.8 290.0 300.1 312.4 19 Nontransaction 1,260.8 1,442.6 1,456.7 1,465.1 1,501.2 1,527.6 1,537.3 1,550.3 1,552.5 1,551.5 1,545.1 1,540.8 20 Large time 248.7 286.5 289.3 292.8 298.7 300.5 306.3 303.1 303.0 301.5 303.1 304.4 21 Other 1,012.1 1,156.1 1,167.3 1,172.3 1,202.5 1,227.1 1,231.0 1,247.2 1,249.5 1,250.1 1,242.0 1,236.4 22 Borrowings 325.6 338.3 329.9 327.3 336.6 343.9 341.3 333.3 333.5 330.8 335.8 333.1 23 From banks in the U.S 156.9 165.2 156.9 154.1 160.5 158.3 157.9 151.3 151.1 149.3 152.6 153.1 24 From others 168.7 173.1 173.0 173.2 176.0 185.6 183.4 182.0 182.3 181.5 183.2 180.0 25 Net due to related foreign offices .... 5.4 20.6 23.4 23.7 20.9 16.8 16.7 15.4 16.4 14.9 17.2 15.4 26 Other liabilities 58.2 50.3 52.1 53.9 54.1 53.4 54.4 56.1 56.0 56.0 55.9 56.1 27 Total liabilities 1,948.8 2,146.1 2,158.0 2,164.1 2,207.2 2,239.6 2,249.1 2051.4 2045.0 2,2433 2054.1 2057.8 28 Residual (assets less liabilities)7 154.4 108.9 114.8 119.5 112.5 102.1 115.3 114.4 117.7 116.6 113.0 111.9 Not seasonally adjusted Assets 29 Bank credit 1,881.6 2,015.7 2,024.3 2,043.3 2,067.7 2,076.1 2,076.2 2,073.9 2,074.6 2,071.4 2,073.2 2,075.5 30 Securities in bank credit 514.9 533.3 534.7 540.5 548.6 554.8 554.1 550.4 552.8 550.2 548.8 549.8 31 U.S. government securities 375.5 369.6 366.5 367.6 366.7 365.6 361.5 353.8 357.9 353.5 352.2 352.0 32 Other securities 139.5 163.7 168.2 172.8 181.9 189.2 192.6 196.6 194.9 196.7 196.6 197.9 33 Loans and leases in bank credit2 1,366.7 1,482.4 1,489.5 1,502.8 1,519.1 1,521.4 1,522.1 1,523.5 1,521.8 1,521.2 1,524.3 1,525.7 34 Commercial and industrial 263.6 283.3 287.2 289.4 291.6 294.5 295.7 297.8 296.2 296.3 297.7 300.9 35 Real estate 737.5 796.3 803.3 812.1 818.5 818.9 821.7 823.3 823.4 823.7 823.9 822.5 36 Revolving home equity 38.4 44.5 45.7 46.4 47.1 47.6 47.8 47.9 47.9 47.9 47.9 47.8 37 Other 699.1 751.7 757.6 765.7 771.4 771.3 773.9 775.4 775.5 775.9 776.0 774.7 38 Consumer 274.3 300.9 297.1 299.5 304.5 304.8 300.0 295.1 294.6 294.2 295.4 296.3 39 Credit cards and related plans. . n.a. 134.6 130.2 131.9 136.4 135.5 130.9 127.1 126.2 125.5 127.0 129.2 40 Other n.a. 166.3 166.9 167.6 168.0 169.3 169.2 168.0 168.4 168.6 168.3 167.1 41 Security3 6.2 6.9 7.0 7.0 7.3 7.1 7.6 8.4 8.3 8.3 8.5 8.2 42 Other loans and leases 85.1 95.0 94.9 94.8 97.2 96.1 97.0 98.9 99.3 98.7 99.0 97.8 43 Interbank loans 63.9 79.1 83.6 86.3 92.4 87.8 100.4 114.0 111.1 113.9 112.4 112.8 44 Cash assets4 74.8 80.8 81.7 82.4 88.4 88.0 85.0 82.0 83.4 80.4 81.5 81.2 45 Other assets5 104.6 108.4 112.5 108.7 112.6 115.5 120.5 121.1 122.8 120.1 118.7 120.5 46 Total assets6 2,100.6 2057.6 2,275.8 2094.2 2,334.2 2,340.5 2,3553 2>4.1 2,365.2 23590 2358.9 2363.1 Liabilities 47 Deposits 1,564.5 1,731.5 1,753.5 1,771.4 1,813.6 1,824.2 1,837.7 1,854.1 1,853.1 1,849.9 1,845.8 1,854.4 48 Transaction 296.9 294.3 295.3 297.9 305.1 300.6 294.6 294.4 287.3 288.7 294.0 308.1 49 Nontransaction 1,267.5 1,437.2 1,458.2 1,473.5 1,508.6 1,523.6 1,543.1 1,559.7 1,565.8 1,561.2 1,551.8 1,546.3 50 Large time 248.7 286.5 289.3 292.8 298.7 300.5 306.3 303.1 303.0 301.5 303.1 304.4 51 Other 1,018.8 1,150.7 1,168.9 1,180.7 1,209.8 1,223.1 1,236.8 1,256.6 1,262.8 1,259.7 1,248.6 1,241.9 52 Borrowings 325.6 338.3 329.9 327.3 336.6 343.9 341.3 333.3 333.5 330.8 335.8 333.1 53 From banks in the U.S 156.9 165.2 156.9 154.1 160.5 158.3 157.9 151.3 151.1 149.3 152.6 153.1 54 From others 168.7 173.1 173.0 173.2 176.0 185.6 183.4 182.0 182.3 181.5 183.2 180.0 55 Net due to related foreign offices .... 5.4 20.6 23.4 23.7 20.9 16.8 16.7 15.4 16.4 14.9 17.2 15.4 56 Other liabilities 58.2 50.3 52.1 53.9 54.1 53.4 54.4 56.1 56.0 56.0 55.9 56.1 57 Total liabilities 1,953.6 2,140.6 2,159.0 2,176.2 2,225.2 20383 2,250.0 2058.8 2058.9 2051.7 2054.7 2059.0 58 Residual (assets less liabilities)7 147.0 117.0 116.8 118.0 109.0 102.2 105.2 105.3 106.3 107.5 104.2 104.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Nonfinancial Statistics • June 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 2000 2000r 2001 2001 Mar.r Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Seasonally adjusted Assets 1 Bank credit 548.5 596.7 587.4 588.1 599.5 614.8 610.4 620.3 611.0 617.1 621.8 629.1 2 Securities in bank credit 196.2 211.4 201.8 195.5 205.1 208.9 199.9 205.4 201.3 201.9 206.0 208.5 3 U.S. government securities 77.9 75.6 70.0 68.1 69.3 67.3 64.5 67.8 65.6 65.8 68.3 68.9 4 Other securities 118.3 135.8 131.8 127.5 135.8 141.6 135.3 137.6 135.7 136.1 137.7 139.6 5 Loans and leases in bank credit2 .. . 352.3 385.3 385.6 392.6 394.4 405.9 410.5 414.9 409.7 415.2 415.8 420.6 6 Commercial and industrial 198.0 204.9 203.7 206.1 209.0 214.5 218.2 220.2 220.0 220.2 221.6 219.4 7 Real estate 17.2 18.2 18.1 18.5 18.6 18.9 18.7 18.4 18.4 18.4 18.4 18.7 8 Security3 70.5 94.9 96.7 100.3 100.1 105.2 105.8 106.4 103.0 107.1 103.0 112.8 9 Other loans and leases 66.6 67.3 67.1 67.7 66.7 67.2 67.8 69.8 68.4 69.4 72.8 69.6 10 Interbank loans 28.6 23.7 27.0 26.8 27.0 29.2 28.5 30.6 32.9 30.1 32.9 27.7 11 Cash assets4 47.0 44.6 42.1 38.5 39.9 41.6 41.9 40.7 41.2 39.0 41.5 40.4 12 Other assets5 39.1 43.5 41.3 40.0 36.1 37.1 36.6 38.3 35.2 39.2 38.0 39.0 13 Total assets6 662.8 708.1 697.4 693.1 702.2 722.3 717.1 729.5 719.9 725.1 733.8 735.8 Liabilities 14 Deposits 379.4 381.6 378.9 377.2 378.3 385.9 379.1 377.4 373.3 375.5 368.6 385.3 15 Transaction 11.1 10.0 10.7 10.8 10.7 10.7 10.3 9.4 9.4 9.2 9.5 9.5 16 Nontransaction 368.3 371.6 368.2 366.4 367.6 375.3 368.9 368.0 363.9 366.4 359.1 375.8 17 Borrowings 177.2 217.3 221.0 223.0 239.4 241.6 237.2 233.6 231.3 232.4 233.6 234.8 18 From banks in the U.S 19.7 20.0 19.0 18.6 22.2 25.1 22.3 24.1 21.7 25.5 26.8 21.8 19 From others 157.5 197.4 202.1 204.4 217.2 216.5 214.8 209.5 209.5 206.9 206.9 213.0 20 Net due to related foreign offices 21.1 21.5 16.5 7.3 -1.9 3.5 4.7 21.7 19.7 24.3 36.5 16.3 21 Other liabilities 73.1 78.5 79.7 75.4 72.3 77.5 77.4 82.9 77.9 83.3 85.3 82.8 22 Total liabilities 650.8 699.0 696.1 682.8 688.1 708.6 698.4 715.6 702.1 715.5 724.1 719.2 23 Residual (assets less liabilities)7 12.0 9.1 1.3 10.2 14.1 13.7 18.7 13.9 17.8 9.6 9.7 16.6 Not seasonally adjusted Assets 24 Bank credit 545.6 594.9 591.4 590.8 610.2 622.9 613.6 615.5 608.5 614.0 617.6 622.2 25 Securities in bank credit 196.2 211.4 201.8 195.5 205.1 208.9 199.9 205.4 201.3 201.9 206.0 208.5 26 U.S. government securities 77.9 75.6 70.0 68.1 69.3 67.3 64.5 67.8 65.6 65.8 68.3 68.9 27 Trading account 9.3 14.1 11.8 10.9 11.8 11.2 10.5 9.6 9.1 9.0 9.1 9.5 28 Investment account 68.6 61.5 58.2 57.2 57.5 56.1 54.1 58.2 56.5 56.8 59.2 59.4 29 Other securities 118.3 135.8 131.8 127.5 135.8 141.6 135.3 137.6 135.7 136.1 137.7 139.6 30 Trading account 75.1 91.6 90.5 88.0 90.6 95.8 91.2 94.4 92.1 93.0 94.9 96.1 31 Investment account 43.1 44.2 41.3 39.4 45.2 45.8 44.1 43.2 43.6 43.1 42.8 43.6 32 Loans and leases in bank credit2 .. . 349.4 383.5 389.7 395.3 405.1 414.0 413.8 410.0 407.2 412.2 411.6 413.7 33 Commercial and industrial 198.9 204.6 203.9 206.7 211.3 216.2 220.4 221.3 221.4 221.2 223.2 220.3 34 Real estate 17.2 18.2 18.1 18.5 18.6 18.9 18.7 18.4 18.4 18.4 18.4 18.7 35 Security3 66.8 93.7 100.9 101.8 106.2 110.5 106.8 100.5 98.9 103.4 97.3 104.9 36 Other loans and leases 66.6 67.0 66.7 68.2 69.0 68.3 67.9 69.8 68.6 69.1 72.5 69.7 37 Interbank loans 28.6 23.7 27.0 26.8 27.0 29.2 28.5 30.6 32.9 30.1 32.9 27.7 38 Cash assets4 45.4 43.7 42.9 40.6 42.7 44.2 42.0 39.3 39.9 37.7 39.9 39.3 39 Other assets5 39.8 43.2 40.7 40.0 37.9 38.3 37.6 38.9 36.8 40.7 38.2 38.8 40 Total assets6 659.1 705.1 701.7 697.9 717.5 734.2 721.4 723.9 717.7 722.1 728.1 727.6 Liabilities 41 Deposits 384.1 374.3 372.7 379.9 388.9 395.8 387.3 381.9 376.9 379.2 372.6 392.6 42 Transaction 10.9 10.3 10.8 11.0 11.4 10.9 10.0 9.2 9.0 8.9 9.2 9.4 43 Nontransaction 373.3 364.0 361.9 368.9 377.6 385.0 377.2 372.7 367.9 370.3 363.4 383.2 44 Borrowings 177.2 217.3 221.0 223.0 239.4 241.6 237.2 233.6 231.3 232.4 233.6 234.8 45 From banks in the U.S 19.7 20.0 19.0 18.6 22.2 25.1 22.3 24.1 21.7 25.5 26.8 21.8 46 From others 157.5 197.4 202.1 204.4 217.2 216.5 214.8 209.5 209.5 206.9 206.9 213.0 47 Net due to related foreign offices .... 21.2 23.5 16.7 7.6 2.9 6.8 8.0 21.9 25.4 23.7 34.2 14.5 48 Other liabilities 73.1 79.5 79.8 75.6 74.4 78.9 78.8 82.9 80.3 83.1 84.4 82.0 49 Total liabilities 655.7 694.6 6903 686.0 705.6 723.1 7113 7203 713.9 7183 724.8 723.9 50 Residual (assets less liabilities)7 3.4 10.5 11.4 11.8 11.8 11.1 10.1 3.7 3.8 3.8 3.3 3.7 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 F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2000 2000r 2001 2001 Mar. Sept. Oct. Nov. Dec. Jan.r Feb.r Mar. Mar. 7 Mar. 14 Mar. 21 Mar. 28 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 65.7 74.4 70.9 68.0 77.8 79.5 77.6 80.6 76.6 77.3 82.2 83.5 2 Revaluation losses on off-balancesheet items8 64.0 73.9 72.8 72.6 83.1 82.5 81.0 79.8 76.4 76.6 80.8 81.9 3 Mortgage-backed securities9 254.7r 239.0 240.5 240.6 242.6 248.0 244.5 244.8 239.8 242.4 249.3 246.9 4 Pass-through 177.3r 170.9 173.9 174.3 177.5 182.8 179.5 181.5 175.3 178.0 185.5 185.2 5 CMO, REMIC, and other 77.4r 68.0 66.6 66.4 65.0 65.2 65.0 63.3 64.5 64.4 63.8 61.8 6 Net unrealized gains (losses) on available-for-sale securities10 .... -9.6 -6.9 -4.2 -1.2 1.4 -2.5 -.6 -.3 -.2 -.6 -.2 -.2 7 Off-shore credit to U.S. residents". . . . 24.1 22.1 22.3 23.1 23.4 23.0 22.7 22.6 22.5 22.3 23.2 22.7 8 Securitized consumer loans'2 n.a. 85.9 80.8 80.5 82.2 82.4 80.8 80.2 80.6 80.0 80.4 80.3 9 Credit cards and related plans n.a. 71.8 67.2 67.3 68.6 68.5 67.3 67.3 67.5 67.0 67.5 67.5 10 Other n.a. 14.1 13.6 13.2 13.6 13.9 13.4 12.9 13.1 13.0 12.9 12.8 11 Securitized business loans'2 n.a. 15.3 15.2 17.8 18.6 18.4 18.6 18.7 18.7 18.6 18.6 18.8 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 203.8r 210.8 211.6 213.0 214.5 218.0 222.3 228.9 226.5 227.5 228.1 230.9 13 Securitized consumer loans12 n.a. 222.3 224.5 225.6 231.1 231.4 235.6 238.5 238.6 238.1 237.7 238.8 14 Credit cards and related plans n.a 214.0 215.2 216.1 221.9 222.4 226.8 229.9 230.0 229.5 229.2 230.3 15 Other n.a 8.3 9.3 9.5 9.1 9.0 8.8 8.5 8.6 8.6 8.6 8.5 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 42.0 48.4 47.3 44.6 45.5 50.8 49.6 52.4 50.5 52.2 54.1 52.0 17 Revaluation losses on off-balancesheet items8 40.5 45.1 44.7 40.8 41.3 46.9 47.4 49.9 48.6 50.0 51.2 49.0 18 Securitized business loans'2 n.a. 23.1 23.0 22.8 23.1 23.2 22.4 21.5 22.3 21.5 21.4 21.3 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 made to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of 7. This balancing item is not intended as a measure of equity capital for use in capital Columbia: domestically chartered commercial banks that submit a weekly report of condition adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the (large domestic); other domestically chartered commercial banks (small domestic); branches seasonal patterns estimated for total assets and total liabilities. and agencies of foreign banks, and Edge Act and agreement corporations (foreign-related 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity and institutions). Excludes International Banking Facilities. Data are Wednesday values or pro equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. rata averages of Wednesday values. Large domestic banks constitute a universe; data for 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. small domestic banks and foreign-related institutions are estimates based on weekly samples government-sponsored enterprises, and private entities. and on quarter-end condition reports. Data are adjusted for breaks caused by reclassifications 10. Difference between fair value and historical cost for securities classified as 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 Nonfinancial Statistics • June 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 2001 IItteemm 1996 1997 1998 1999 2000 Sept. Oct. Nov. Dec. Jan. Feb. 1 All issuers 775,371 966,699 1,163,303 1,403,023 1,615,341 1,557,700 1,587,591 1,624,421 1,615,341 1,566,104 1,544,572 Financial companies' 2 Dealer-placed paper, total2 361,147 513,307 614,142 786,643 973,060 899,853 912,739 960,701 973,060 976,735 977,791 3 Directly placed paper, total3 229,662 252,536 322,030 337,240 298,848 315,039 328,049 312,438 298,848 270,922 263,554 4 Nonfinancial companies4 184,563 200,857 227,132 279,140 343,433 342,809 346,803 351,282 343,433 318,447 303,227 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 Rate Period Av r e a r t a e ge Period Av r e a r te a ge Period Av r e a r te a ge 1998—Jan. 1 8.50 1998 8.35 1999—Jan 7.75 2000—Jan 8.50 Sept. 30 8.25 1999 8.00 Feb 7.75 Feb 8.73 Oct. 16 8.00 2000 9.23 Mar. 7.75 Mar. 8.83 Nov. 18 7.75 Apr 7.75 Apr 9.00 1998—Jan 8.50 May 7.75 May 9.24 1999—July 1 8.00 Feb 8.50 June 7.75 June 9.50 Aug. 25 8.25 Mar. 8.50 July 8.00 July 9.50 Nov. 17 8.50 Apr. 8.50 Aug 8.06 Aug 9.50 May 8.50 Sept 8.25 Sept 9.50 2000—Feb. 3 8.75 June 8.50 Ocl 8.25 Oct 9.50 Mar. 22 9.00 July 8.50 Nov 8.37 Nov 9.50 MMaayy 1177 9.50 Aug 8.50 Dec 8.50 Dec 9.50 Sept 8.49 2001—Jan. 4 9.00 Ocl 8.12 2001—Jan 9.05 Feb. 1 8.50 Nov. 7.89 Feb 8.50 Mar. 21 8.00 Dec 77..7755 Mar. 8.32 Apr. 19 7.50 Apr. 7.80 May 16 7.00 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 2001 2001, week ending IItteemm 11999988 11999999 22000000 Dec. Jan. Feb. Mar. Mar. 2 Mar. 9 Mar. 16 Mar. 23 Mar. 30 MONEY MARKET INSTRUMENTS 1 Federal funds1,2,3 5.35 4.97 6.24 6.40 5.98 5.49 5.31 5.50 5.49 5.46 5.33 5.00 2 Discount window borrowing2,4 4.92 4.62 5.73 6.00 5.52 5.00 4.81 5.00 5.00 5.00 4.86 4.50 Commercial paper',5,b Nonfinancial 3 1-month 5.40 5.09 6.27 6.51 5.74 5.39 5.02 5.20 5.15 5.03 4.88 4.94 4 2-month 5.38 5.14 6.29 6.42 5.59 5.25 4.87 5.05 5.01 4.91 4.74 4.77 5 3-month 5.34 5.18 6.31 6.34 5.49 5.14 4.78 4.94 4.91 4.82 4.67 4.69 Financial 6 1-month 5.42 5.11 6.28 6.52 5.75 5.41 5.06 5.22 5.20 5.04 4.91 4.99 / 2-month 5.40 5.16 6.30 6.42 5.62 5.29 4.93 5.06 5.04 4.95 4.82 4.86 8 3-month 5.37 5.22 6.33 6.33 5.51 5.19 4.81 4.99 4.95 4.84 4.70 4.70 Commercial paper (historical)3,5,7 9 1-month n.a. 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 n.a. 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Finance paper, directly placed (historical)3,5,8 12 1-month n.a. 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 n.a. 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 n.a. 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 5.39 5.24 6.23 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 6-month 5.30 5.30 6.37 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Certificates of deposit, secondary market*'10 17 1-month 5.49 5.19 6.35 6.62 5.83 5.47 5.09 5.25 5.23 5.06 4.98 5.03 18 3-month 5.47 5.33 6.46 6.45 5.62 5.26 4.89 5.04 5.02 4.92 4.78 4.80 19 6-month 5.44 5.46 6.59 6.30 5.45 5.12 4.74 4.89 4.89 4.78 4.61 4.63 20 Eurodollar deposits, 3-month3,11 5.45 5.31 6.45 6.43 5.62 5.26 4.89 5.03 5.01 4.91 4.77 4.80 U.S. Treasury bills Secondary market3,5 21 3-month 4.78 4.64 5.82 5.77 5.15 4.88 4.42 4.72 4.62 4.47 4.27 4.22 22 6-month 4.83 4.75 5.90 5.68 4.95 4.71 4.28 4.51 4.48 4.33 4.17 4.04 23 1-year 4.80 4.81 5.78 5.33 4.63 4.51 4.11 4.28 4.27 4.12 3.99 4.01 Auction high3,5,12 24 3-month 4.81 4.66 5.66 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 25 6-month 4.85 4.76 5.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 1-year 4.85 4.78 5.85 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. U.S. TREASURY NOTES AND BONDS Constant maturities13 27 1-year 5.05 5.08 6.11 5.60 4.81 4.68 4.30 4.47 4.47 4.31 4.17 4.19 28 2-year 5.13 5.43 6.26 5.35 4.76 4.66 4.34 4.44 4.46 4.34 4.24 4.29 29 3-year 5.14 5.49 6.22 5.26 4.77 4.71 4.43 4.51 4.53 4.43 4.32 4.41 30 5-year 5.15 5.55 6.16 5.17 4.86 4.89 4.64 4.74 4.75 4.64 4.51 4.65 31 7-year 5.28 5.79 6.20 5.28 5.13 5.10 4.88 4.96 4.96 4.88 4.77 4.90 32 10-year 5.26 5.65 6.03 5.24 5.16 5.10 4.89 4.95 4.95 4.86 4.78 4.95 33 20-year 5.72 6.20 6.23 5.64 5.65 5.62 5.49 5.53 5.52 5.45 5.42 5.59 34 30-year 5.58 5.87 5.94 5.49 5.54 5.45 5.34 5.36 5.34 5.30 5.28 5.44 Composite 35 More than 10 years (long-term) 5.69 6.14 6.41 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 seriesiA 36 Aaa 4.93 5.28 5.58 5.11 4.99 5.09 5.00 5.04 5.03 5.00 4.92 4.99 3/ Baa 5.14 5.70 6.19 5.85 5.76 5.86 5.80 5.84 5.81 5.78 5.74 5.85 38 Bond Buyer series15 5.09 5.43 5.71 5.22 5.10 5.18 5.13 5.18 5.16 5.11 5.07 5.14 CORPORATE BONDS 39 Seasoned issues, all industries16 6.87 7.45 7.98 7.65 7.55 7.50 7.41 7.44 7.42 7.38 7.36 7.50 Rating group 40 Aaa 6.53 7.05 7.62 7.21 7.15 7.10 6.98 6.99 6.98 6.95 6.93 7.06 41 Aa 6.80 7.36 7.83 7.48 7.38 7.32 7.22 7.26 7.24 7.18 7.15 7.29 42 A 6.93 7.53 8.11 7.88 7.75 7.69 7.61 7.68 7.65 7.57 7.54 7.67 43 Baa 7.22 7.88 8.36 8.02 7.93 7.87 7.84 7.83 7.79 7.81 7.83 7.97 MEMO Dividend-price ratio17 44 Common stocks 1.49 1.25 1.15 1.19 1.16 1.22 1.33 1.26 1.24 1.34 1.39 1.35 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 the Board's Commercial Paper web in compiling this index. The twenty-bond index has a rating roughly equivalent to Moodys' pages (http://www.federalreserve.gov/releases/cp) for more information. A1 rating. Based on Thursday figures. 7. An average of offering rates on commercial paper for firms whose bond rating is AA or 16. Daily figures from Moody's Investors Service. Based on yields to maturity on selected the equivalent. Series ended August 29, 1997. long-term bonds. 8. An average of offering rates on paper directly placed by finance companies. Series 17. Standard & Poor's corporate series. Common stock ratio is based on the 500 stocks in ended August 29, 1997. the price index. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A24 Domestic NonfinancialS tatistics • June 2001 1.36 STOCK MARKET Selected Statistics 2000 2001 IInnddiiccaattoorr 11999988 11999999 22000000 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Prices and trading volume (averages of daily figures) Common stock prices (indexes) 1 New York Stock Exchange (Dec. 31, 1965 = 50) 550.65 619.52 643.71 653.27 666.14 667.05 646.53 646.64 645.44 650.55 648.05 603.44 2 Industrial 684.35 775.29 809.40 825.28 837.23 829.99 797.00 800.88 792.66 796.74 799.38 744.21 3 Transportation 468.61 491.62 414.73 410.67 419.84 404.23 403.20 434.92 457.53 471.21 482.26 452.36 4 Utility 190.52 284.82 478.99 484.19 459.91 463.76 469.16 455.66 444.16 440.36 424.53 395.34 5 Finance 516.65 530.97 552.48 556.32 597.17 616.89 587.76 600.45 621.62 634.17 626.41 583.38 6 Standard & Poor's Corporation (1941-43 = 10)' 1,085.50 1,327.33 1,427.22 1,473.00 1,485.46 1,468.06 1,390.14 1,375.04 1,330.93 1,335.63 1,305.75 1,185.85 7 American Stock Exchange (Aug. 31, 1973 = 50)2 682.69 770.90 922.22 930.66 920.54 952.74 913.64 892.60 870.16 898.18 923.99 891.22 Volume of trading (thousands of shares) 8 New York Stock Exchange 666,534 799,554 1,026,867 941.694 875,087 1,026,597 1,167,025 1,015,606 1,183,149 1,299,986 1,117,977 1,251,569 9 American Stock Exchange 28,870 32,629 51,437 36,486 35,695 47,047 57,915 58,541 73,759 72,312 70,648 81,666 Customer financing (millions of dollars, end-of-period balances) 10 Margin credit at broker-dealers3 140,980 228,530 198,790 244,970 247,560 250,780 233,380r 219,110 198,790 197,110 186,810r 165,350 Free credit balances at brokers4 11 Margin accounts5 40,250 55,130 100,680 71,730 68,020 70,960r 82,990r 96,730 100,680 90,380 99,390r 106,300 12 Cash accounts 62,450 79,070 84,400 74,970 72,640 74,766 73,410r 74,050 84,400 81,380r 78,660r 77,520 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 2001 11999988 11999999 22000000 Oct. Nov. Dec. Ian. Feb. Mar. U.S. budget1 1 Receipts, total 1,721,798 1,827,302 2,025,218 135,111 125,666 200,489 219,215 110,481 130,074 2 On-budget 1,305,999 1,382,986 1,544,634 101,121 89,216 161,737 171,001 70,555 84,123 3 Off-budget 415,799 444,468 480,584 33,990 36,450 38,752 48,214 39,926 45,951 4 Outlays, total 1,652,619 1,702,875 1,788,826 146,431 149,356 167,823 142,836 158,649 180,736 5 On-budget 1,336,015 1,382,097 1,458,061 115,840 116,737 132,747 144,448 123,573 145,185 6 Off-budget 316,604 320,778 330,765 30,592 32,619 35,075 -1,613 35,076 35,550 7 Surplus or deficit (—), total 69,179 124,579 236,392 -11,321 -23,690 32,666 76,379 -48,168 -50,662 8 On-budget -30,016 889 86,573 -14,719 -27,521 28,990 26,553 -53,018 -61,062 9 Off-budget 99,195 123,690 149,819 3,398 3,831 3,677 49,827 4,850 10,401 Source of financing (total) 10 Borrowing from the public -51,211 -88,674 -222,672 -29,666 41,325 -36,689 -23,990 15,100 32,557 11 Operating cash (decrease, or increase [—]) 4,743 -17,580 3,799 42,653 -1,431 -9,632 -45,761 45,717 -7,171 12 Other 2 -22,711 -18,325 -17,519 -1,666 -16,204 13,655 -6,628 -12,649 25,276 MEMO 13 Treasury operating balance (level, end of period) 38,878 56,458 52,659 10,006 11,437 21.069 66,830 21,113 28,284 14 Federal Reserve Banks 4,952 6,641 8,459 5,360 4,382 5,149 5,256 4,956 5,657 15 Tax and loan accounts 33,926 49,817 44,199 4,646 7,055 15,920 61,574 16,158 22,627 1. Since 1990, off-budget items have been the social security trust funds (Federal Old-Age, net gain or loss for U.S. currency valuation adjustment; net gain or loss for IMF loan- Survivors, and Disability Insurance) and the U.S. Postal Service. valuation adjustment; and profit on sale of gold. 2. Includes special drawing rights (SDRs); reserve position on the U.S. quota in the SOURCE. Monthly totals: U.S. Department of the Treasury, Monthly Treasury Statement of International Monetary Fund (IMF); loans to the IMF; other cash and monetary assets; Receipts and Outlays of the U.S. Government; fiscal year totals: U.S. Office of Management accrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous and Budget, Budget of the U.S. Government when available. liability (including checks outstanding) and asset accounts; seigniorage; increment on gold; Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A26 Domestic Nonfinancial Statistics • June 2001 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1999 2000 2001 11999999 22000000 HI H2 HI H2 Jan. Feb. Mar. RECEIPTS 1 All sources 1,827,302 2,025,218 966,045 892,266 1,089,763 952,942 219,215 110,481 130,071 2 Individual income taxes, net 879,480 1,004,462 481,907 425,451 550,208 458,679 135,702 48,030 33,591 3 Withheld 693,940 780,397 351,068 372,012 388,526 395,572 84,319 70,179 67,068 4 Nonwithheld 308,185 358,049 240,278 68,302 281,103 77,732 52,713 3,454 7,662 5 Refunds 122,706 134,046 109,467 14,841 119,477 14,628 1,330 25,610 41,153 Corporation income taxes 6 Gross receipts 216,324 235,655 106,861 110,111 119,166 123,962 7,778 3,474 26,986 7 Refunds 31,645 28,367 17,092 13,996 13,781 15,776 2,066 4,973 4,849 8 Social insurance taxes and contributions, net .. . 611,833 652,852 324,831 292,551 353,514 310,122 64,214 53,473 60,135 9 Employment taxes and contributions2 580,880 620,451 306,235 280,059 333,584 297,665 62,259 50,868 59,499 10 Unemployment insurance 26,480 27,640 16,378 10,173 17,562 10,097 1,596 2,147 209 11 Other net receipts3 4,473 4,761 2,216 2,319 2,368 2,360 359 457 427 12 Excise taxes 70,414 68,865 31,015 34,262 33,532 35,501 5,307 4,074 7,064 13 Customs deposits 18,336 19,914 8,440 10,287 ' 9,218 10,676 1,694 1,474 1,653 14 Estate and gift taxes 27,782 29,010 14,915 14,001 15,073 13,216 2,403 1,879 2,215 15 Miscellaneous receipts4 34,929 42,826 15,140 19,569 22,831 16,556 4,183 3,050 3,276 OUTLAYS 16 A11 types l,702,875r 1,788,826 817,227 882,465 892,947 894,905 142,836 158,649 180,733 17 National defense 274,873 294,494 134,414 149,573 143,476 147,651 21,792 22,555 31,144 18 International affairs 15,243 17,216 6,879 8,530 7,250 11,902 1,289 1,153 1,980 19 General science, space, and technology 18,125 18,637 9,319 10,089 9,601 10,389 1,383 1,619 1,811 20 Energy 912 -1,060 797 -90 -893 -595 -378 -174 187 21 Natural resources and environment 23,970 25,031 10,351 12,100 10,814 12,907 1,708 1,737 1,822 22 Agriculture 23,011 36,641 9,803 20,887 11,164 20,977 3,870 2,003 2,083 23 Commerce and housing credit 2,649 3,211 -1,629 7,353 -2,497 4,408 -943 -487 1,025 24 Transportation 42,531 46,854 17,082 23,199 21,054 25,841 3,323 3,502 3,899 25 Community and regional development 11,870 10,629 5,368 6,806 5,050 5,962 722 939 616 26 Education, training, employment, and social services 56,402 59,201 29,003 27,532 31,234 29,263 5,660 5,957 6,874 27 Health 141,079 154,534 69,320 74,490 75,871 81,413 14,087 13,011 14,763 28 Social security and Medicare 580,488 606,549 261,146 295,030 306,966 307,473 50,633 52,154 57,468 29 Income security 237,707 247,895 126,552 113,504 133,915 113,212 18,473 33,203 31,652 30 Veterans benefits and services 43,212 47,083 20,105 23,412 23,174 22,615 2,101 4,089 6,333 31 Administration of justice 25,924 27,820 13,149 13,459 13,981 14,635 2,602 2,201 2,559 32 General government 15,771 13,454 6,641 7,010 6,198 6,461 707 2,400 1,100 33 Net interest5 229,735 223,218 116,655 112,420 115,545 104,685 19,575 17,590 18,568 34 Undistributed offsetting receipts6 -40,445 -42,581 -17,724 -22,850 -19,346 -24,070 -3,767 -4,802 -3,150 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 2002\ monthly and half-year totals: U.S. Department of the Treadisability fund. sury, Monthly Treasury Statement of Receipts and Outlays of the U.S. Government. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.40 FEDERAL DEBT SUBJECT TO STATUTORY LIMITATION Billions of dollars, end of month 1999 2000 2001 IItteemm Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 1 Federal debt outstanding 5,681 5,668 5,685 5,805 5,802 5,714 5,702 5,690 5,801 2 Public debt securities 5,652 5,639 5,656 5,776 5,773 5,686 5,674 5,662 5,774 3 Held by public 3,795 3,685 3,667 3,716 3,688 3,496 3,439 3,414 3,434 4 Held by agencies 1,857 1.954 1,989 2,061 2,085 2,190 2,236 2,249 2,339 5 Agency securities 29 29 29 29 28 28 28 27 27 6 Held by public 28 28 28 28 28 28 28 27 27 7 Held by agencies 1 1 1 1 0 0 0 0 0 8 Debt subject to statutory limit 5,566 5,552 5,568 5,687 5,687 5,601 5,592 5,581 5,693 9 Public debt securities 5,566 5,552 5,568 5,687 5,686 5,601 5,591 5,580 5,692 10 Other debt1 0 0 0 0 0 0 0 0r 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 Monthly Treasury Statement. bia stadium bonds. 1.41 GROSS PUBLIC DEBT OF U.S. TREASURY Types and Ownership Billions of dollars, end of period 2000 2001 TTyyppee aanndd hhoollddeerr 11999977 11999988 11999999 22000000 Q2 Q3 Q4 Ql 1 Total gross public debt 5,502.4 5,614.2 5,776.1 5,662.2 5,685.9 5,674.2 5,662.2 5,773.7 By type 2 Interest-bearing 5,494.9 5,605.4 5,766.1 5,618.1 5,675.9 5,622.1 5,618.1 5,752.0 3 Marketable 3,456.8 3,355.5 3,281.0 2,966.9 3,070.7 2,992.8 2,966.9 2,981.9 4 Bills 715.4 691.0 737.1 646.9 629.9 616.2 646.9 712.0 5 Notes 2,106.1 1,960.7 1,784.5 1,557.3 1,679.1 1,611.3 1,557.3 1,499.0 6 Bonds 587.3 621.2 643.7 626.5 637.7 635.3 626.5 627.9 7 Inflation-indexed notes and bonds' 33.0 67.6 100.7 121.2 109.0 115.0 121.2 128.0 8 Nonmarketable2 2,038.1 2,249.9 2,485.1 2,651.2 2,605.2 2,629.3 2,651.2 2,770.0 9 State and local government series 124.1 165.3 165.7 151.0 160.4 153.3 151.0 152.9 10 Foreign issues3 36.2 34.3 31.3 27.2 27.7 25.4 27.2 24.7 11 Government 36.2 34.3 31.3 27.2 27.7 25.4 27.2 24.7 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 181.2 180.3 179.4 176.9 177.7 177.7 176.9 177.4 14 Government account series4 1,666.7 1,840.0 2,078.7 2,266.1 2,209.4 2,242.9 2,266.1 2,360.3 15 Non-interest-bearing 7.5 8.8 10.0 44.2 10.1 52.1 44.2 46.5 By holder5 16 U.S. Treasury and other federal agencies and trust funds 1,657.1 1,828.1 2,064.2 2,270.2 2,193.6 2,226.5 2,270.2 n a. 17 Federal Reserve Banks6 430.7 452.1 478.0 511.7 504.9 511.4 511.7 523.9 18 Private investors 3,414.6 3,334.0 3,233.9 2,880.4 2,987.4 2,936.2 2,880.4 - 19 Depository institutions 300.3 237.3 266.1 197.9 219.4 218.3 197.9 20 Mutual funds 321.5 343.2 348.6 336.4 322.4 323.7 336.4 21 Insurance companies 176.6 144.5 125.3 119.5 121.3 120.6 119.5 n.a. 22 State and local treasuries7 239.3 269.3 266.8 246.2 256.4 224466..99 224466..22 Individuals 23 Savings bonds 186.5 186.6 186.4 184.8 184.6 184.3 184.8 24 Pension funds 360.5 375.3 380.9 375.8 384.1 379.1 375.8 25 Private 143.5 157.6 167.7 181.3 173.6 179.2 181.3 26 State and Local 216.9 217.7 213.2 194.5 210.5 199.9 194.5 27 Foreign and international8 1,241.6 1,278.7 1,268.8 1,220.8 l,248.8r 1,225.2 1,220.8 28 Other miscellaneous investors7,9 589.5 498.8 407.1 n.a. 246.7 224.4 n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 1997. 8. 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- 9. 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. SOURCES. Data by type of security, U.S. Treasury Department, 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, Federal Reserve Board of Governors, Flow holdings; data for other groups are Treasury estimates. of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin unless otherwise noted. table 1.18. 7. 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 • June 2001 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions1 Millions of dollars, daily averages 2000 2001 2001, week ending IItteemm Dec. Jan. Feb. Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 Mar. 28 OUTRIGHT TRANSACTIONS2 By type of security 1 U.S. Treasury bills 33,972 30,524 30,944 28,501 26,276 23,666 23,684 48,699 33,360 27,243 27,234 38,628 Coupon securities, by maturity 2 Five years or less 142,810 184,852 177,060 169,233 169,260 164,570 162,784 208,772 163,034 159,702 173,046 182,171 3 More than five years 80,454 92,425 97,212 97,040 106,574 97,364 73,762 106,457 92,109 88,147 84,009 85,031 4 Inflation-indexed 1,441 2,801 1,673 1,411 1,670 950 1,910 2,209 1,267 1,716 1,881 1,349 Federal agency 5 Discount notes 54,545 62,160 66,280 67,509 66,661 62,908 64,851 70,415 62,925 62,472 63,276 63,071 Coupon securities, by maturity 6 One year or less 1,821 1,451 1,405 1,324 1,823 1,118 1,742 1,005 675 1,356 748 1,228 7 More than one year, but less than or equal to five years 10,987 15,202 19,340 13,901 14,215 16,041 13,458 32,471 17,155 16,709 16,135 17,606 8 More than five years 12,455 12,984 9,935 12,505 11,961 9,160 7,461 10,665 10,762 19,876 11,826 15,514 9 Mortgage-backed 77,576 100,680 108,394 60,919 128,664 140,877 80,090 78,285 124,025 110,680 111,387 84,348 By type of counterparty With interdealer broker 10 U.S. Treasury 117,395 145,363 142,567 137,738 143,319 136,292 120,840 165,470 128,123 126,213 132,779 130,887 11 Federal agency 11,965 13,683 12,617 12,066 12,146 11,317 10,849 15,803 11,965 14,719 14,785 13,079 12 Mortgage-backed 26,775 31,191 32,659 21,504 41,121 38,985 20,191 27,846 35,155 35,768 38,320 29,291 With other 13 U.S. Treasury 141,282 165,238 164,323 158,446 160,461 150,258 141,300 200,667 161,647 150,595 153,391 176,292 14 Federal agency 67,843 78,114 84,344 83,173 82,514 77,910 76,663 98,753 79,553 85.694 77,200 84,340 15 Mortgage-backed 50,801 69,489 75,735 39,415 87,543 101,892 59,899 50,439 88,870 74,911 73,067 55,057 FUTURES TRANSACTIONS3 By type of deliverable security 16 U.S. Treasury bills n.a. n.a. 0 n.a. 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 17 Five years or less 3,629 3,821 4,230 3,666 3,221 3,734 3,685 6,171 5,550 3,385 4,812 3,373 18 More than five years 14,020 15,474 17,291 14,893 14,148 16,827 15,705 22,167 16,672 18,107 18,218 15,196 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 n.a. n.a. n.a. 23 More than five years 325 63 66 58 17 n.a. 36 139 55 n.a. n.a. n.a. 24 Mortgage-backed 0 0 0 0 0 0 0 0 0 0 0 0 OPTIONS TRANSACTIONS4 By type of underlying security 25 U.S. Treasury bills 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 2266 Five years or less 1,380 1,116 971 902 826 1,172 1,188 743 1,173 1,067 1,010 1,191 27 More than five years 4,111 4,423 4,166 3,590 4,190 4,683 3,975 3,778 4,406 5,113 2,901 4,083 28 Inflation-indexed 0 0 0 0 0 0 0 0 0 0 0 0 Federal agency 29 Discount notes 0 0 0 0 0 0 0 0 0 0 0 0 Coupon securities, by maturity 30 One year or less 0 0 0 0 0 0 0 0 0 0 0 0 31 More than one year, but less than or equal to five years 0 20 29 0 0 0 0 0 0 0 0 0 32 More than five years 14 105 119 197 0 93 101 278 27 269 92 168 33 Mortgage-backed 1,228 1,269 1,444 1,029 2,048 1,445 1,113 1,104 2,564 1,543 2,160 1,608 1. Transactions are market purchases and sales of securities as reported to the Federal Forward transactions are agreements made in the over-the-counter market that specify Reserve Bank of New York by the U.S. government securities dealers on its published list of delayed delivery. Forward contracts for U.S. Treasury securities and federal agency debt primary dealers. Monthly averages are based on the number of trading days in the month. securities are included when the time to delivery is more than five business days. Forward Transactions are assumed to be evenly distributed among the trading days of the report week. contracts for mortgage-backed agency securities are included when the time to delivery is Immediate, forward, and futures transactions are reported at principal value, which does not more than thirty business days. include accrued interest; options transactions are reported at the face value of the underlying 3. Futures transactions are standardized agreements arranged on an exchange. All futures securities. transactions are included regardless of time to delivery. Dealers report cumulative transactions for each week ending Wednesday. 4. Options transactions are purchases or sales of put and call options, whether arranged on 2. Outright transactions include immediate and forward transactions. Immediate delivery an organized exchange or in the over-the-counter market, and include options on futures refers to purchases or sales of securities (other than mortgage-backed federal agency securi- contracts on U.S. Treasury and federal agency securities. ties) for which delivery is scheduled in five business days or less and "when-issued" NOTE, "n.a." indicates that data are not published because of insufficient activity. securities that settle on the issue date of offering. Transactions for immediate delivery of mortgagebacked agency securities include purchases and sales for which delivery is scheduled in thirty business days or less. Stripped securities are reported at market value by maturity of coupon or corpus. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Finance A25 1.43 U.S. GOVERNMENT SECURITIES DEALERS Positions and Financing1 Millions of dollars 2000 2001 2001, week ending IItteemm Dec. Jan. Feb. Jan. 31 Feb. 7 Feb. 14 Feb. 21 Feb. 28 Mar. 7 Mar. 14 Mar. 21 NET OUTRIGHT POSITIONS3 By type of security 1 U.S. Treasury bills 15,431 10,534 9,779 9,774 8,105 1,309 1,840 27,862 15,125 13,380 12,098 Coupon securities, by maturity 2 Five years or less -18,515 -12,508 -17,917 -12,628 -15,217 -15,619 -19,210 -21,623 -16,189 -14,725 -13,003 3 More than five years -13,463 -10,547 -3,985 -10,721 -6,115 -2,686 -3,145 -3,992 -5,695 -6,897 -5,836 4 Inflation-indexed 1,713 3,571 3,907 3,395 2,963 3,590 4,506 4,568 4,186 4,171 3,663 Federal agency 5 Discount notes 31,108 30,005 32,994 25,360 31,734 36,194 32,880 31,168 34,956 40,015 33,643 Coupon securities, by maturity 6 One year or less 16,590 17,285 18,229 18,509 19,374 17,588 17,919 18,036 17,018 15,975 15,852 7 More than one year, but less than or equal to five years 7,293 6,450 6,215 5,678 6,930 6,419 5,088 6,424 6,268 6,633 5,420 8 More than five years 5,104 6,360 5,480 4,747 5,215 6,120 5,169 5,416 6,501 7,333 9,997 9 Mortgage-backed 14,596 15,656 10,110 13,385 11,541 10,241 10,827 7,830 10,254 9,305 6,710 NET FUTURES POSITIONS4 By type of deliverable security 10 U.S.'Treasury bills ' 0 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Coupon securities, by maturity 11 Five years or less -252 1,131 2,344 3,215 3,632 1,938 2,855 950 -1,764 -2,153 -1,904 12 More than five years -3,090 -6,366 -11,744 -8,099 -10,962 -14,479 -10,334 -11,200 -10,632 -9,606 -11,711 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 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 0 n.a. 17 More than five years -521 -91 -300 -124 -153 -347 -361 -339 -309 -299 n.a. 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 -684 767 604 -758 649 1,571 305 -109 989 -149 -55 21 More than five years -93 1,054 -815 807 243 -688 -1,604 -1,211 524 1,163 640 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 -528 -529 -578 -464 -489 -740 -734 -348 232 312 489 26 More than five years 533 603 558 868 500 340 313 1,079 1,226 967 587 27 Mortgage-backed 2,031 894 2,002 1,680 2,064 1,258 1,247 3,438 1,276 2,293 3,851 Financing5 Reverse repurchase agreements 28 Overnight and continuing 336,969 348,805 350,827 364,387 327,737 343,786 342,527 389,259 390,153 378,049 385,554 29 Term 821,860 803,216 845,692 838,120 887,333 904,553 791,217 799.665 850,292 902,950 869,504 Securities borrowed 30 Overnight and continuing 263,064 270,561 278,815 262,101 281,075 279,487 285,069 269,630 286,322 275,096 285,120 31 Term 137,491 129,862 120,113 126,371 117,049 121,425 115,014 126,965 121,085 123,020 123,331 Securities received as pledge 32 Overnight and continuing 3,029 3,382 3,002 2,615r 2,807 3,085 2,936 3,180 3,395 4,033 3,245 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 769,228 794,087 803,148 814,061 781,539 808,069 787,131 835,851 835,369 847,662 833,359 35 Term 785,387 764,792 801,371 788,021 833,380 858,292 750,884 762,927 818,097 857,600 840,322 Securities loaned 36 Overnight and continuing 8,587 9,914 9,648 9,743 9,792 9,562 9,527 9,709 9,209 9,249 9,657 37 Term 4,284 4,185 4,194 4,301 4,258 4,246 4,078 n.a. 4,067 n.a. 4,543 Securities pledged 38 Overnight and continuing 56,939 54,311 51,166 49,627 50,507 51,934 52,388 49,833 51,954 49,957 51,553 39 Term 4,207 4,032 5,029 4,159 4,188 5,904 4,422 5,601 5,639 6,000 5,944 Collateralized loans 40 Total 25,778 24,507 21,373 18,479 24,975 20,291 21,331 18,895 21,116 28,881 24,727 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 • June 2001 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2000 2001 AAggeennccyy 11999977 11999988 11999999 22000000 Sept. Oct. Nov. Dec. Jan. 1 Federal and federally sponsored agencies 1,022,609 1,296,477 1,616,492 1,851,632 1,776,334 n.a. 1,833,155 1,851,632 n.a. 2 Federal agencies 27,792 26.502 26,376 25,666 25,993 25,523 25,555 25,666 25,426 3 Defense Department' 6 6 6 6 6 6 6 6 6 4 Export-Import Bank2'3 552 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 5 Federal Housing Administration4 102 205 126 255 227 237 239 255 275 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 27,786 26,496 26,370 25,660 25,987 25,517 25,549 25,660 25,420 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 994,817 1,269,975 1,590,116 1,825,966 1,750,341 1,777,824 1,807,600 1,825,966 n.a. 11 Federal Home Loan Banks 313,919 382,131 529,005 594,404 580,579 576,689 580,957 594,404 604,904 12 Federal Home Loan Mortgage Corporation 169,200 287,396 360,711 426,899 406,936 422,960 429,617 426,899 446,997 13 Federal National Mortgage Association 369,774 460,291 547,619 642,700 607,000 615,463 633,100 642,700 654,200 14 Farm Credit Banks8 63,517 63,488 68,883 74,181 71,055 71,345 71,667 74,181 73,925 15 Student Loan Marketing Association9 37,717 35,399 41,988 45,375 42,423 48,988 50,016 45,375 n.a. 16 Financing Corporation'0 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 8,170 17 Farm Credit Financial Assistance Corporation" 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 1,261 18 Resolution Funding Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 49,090 44,129 42,152 40,575 42,837 41,280 40,170 40,575 39,348 2 2 0 1 L E P e o x n s p t d o a i r l n t g - S I e m t r o v p f i o e c r d e t e 6 B ra a l n k a 3 n d federally sponsored agencies n.a. 5 52 F 1 F 1 F 1 + 1 F 1 1 • 1 F 1 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2 2 3 4 T U e n n it n e e d s s S e t e a t V es a l R le a y i l A w u ay th o A r s it s y o ciation6 n n . . a a . . • I i I T 1 I I 1 1 I i I 1 1 Other lending14 25 Farmers Home Administration 13,530 9,500 6,665 5,275 5,540 5,540 5,320 5,275 5.155 26 Rural Electrification Administration 14,898 14,091 14,085 13,126 12,989 12,891 13,023 13,126 13,197 27 Other 20,110 20,538 21,402 22,174 24,308 22,849 21,827 22,174 20,996 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 2001 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999988 11999999 22000000 oorr uussee Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. 1 AH issues, new and refunding1 262,342 215,427 180,403 15,284 15,598 18,035 18,079 15,348 11,255 19,829 24,495 By type of issue 2 General obligation 87,015 73,308 64,475 5,194 6,888 5,871 5,044 5,060 6,256 9,389 7,668 3 Revenue 175,327 142,120 115,928 10,090 8,710 12,163 13,036 10,288 4,999 10,441 16,827 By type of issuer 4 State 23,506 16,376 19,944 1,011 2,022 3,005 1,942 1,640 1,738 3,268 1,893 5 Special district or statutory authority2 178,421 152,418 111,695 10,728 10,152 11,224 12,311 1,053 7,061 11,011 17,280 6 Municipality, county, or township 60,173 46,634 39,273 3,545 3,424 3,806 3.827 3,165 2,456 5,550 5,323 7 Issues for new capital 160,568 161,065 154,257 12,402 13,968 16,387 14,520 13,286 8,758 13,384 15,387 By use of proceeds 8 Education 36,904 36,563 38,665 3,630 3,210 3,492 3,446 2,919 2,786 3,102 5,343 9 Transportation 19,926 17,394 19,730 1,979 1,574 2,575 2,124 1,381 780 2,411 1,219 10 Utilities and conservation 21,037 15,098 11,917 1,409 1,408 1,272 1,973 1,307 678 1,335 1,677 11 Social welfare n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Industrial aid 8,594 9,099 7,122 281 387 730 500 615 63 281 396 13 Other purposes 42,450 47,896 47,309 3,564 5,243 6,558 3,787 4,264 3,013 4,742 4,368 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 2001 TTyyppee ooff oo rr ii ssss iiss uu ss ee uu ,, ee oo rr ffffeerriinngg,, 11999988 11999999 22000000 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. 1 All issues' 1,128,491 1,072,866 942,198 65,511 82,752 94,492 62,466 95,595 61,378 125,894r 96,236 2 Bonds2 1,001,736 941,298 807,281 57,476 69,875 88,102 53,345 84,094 58,713 118,372 88,806 By type of offering 3 Sold m the United States 923,771 818,683 684,484 40,753 56,133 73,516 47,415 76,383 57,189 115,583 86,146 4 Sold abroad 77,965 122,615 122,798 16,723 13,742 14,586 5,930 7,712 1,525 2,789 2,660 MEMO 5 Private placements, domestic n.a. n.a. n.a. 1,038 241 376 127 5,534 3,709 26 1,897 By industry group 6 Nonfinancial 307,711 293,963 242,452 15,885 17,947 24,483 12,547 25,784 18,219 44,443 34,604 7 Financial 694,025 647,335 564,829 41,592 51,928 63,619 40,799 58,310 40,495 73,928 54,201 8 Stocks3 182,055r 223,968r 283,717r 20,435r 25,277r 18,790r 21,521r 23,901r 15,065r 7,522r 7,400 By type of offering 9 Public 126,755 131,568 134,917 8,035 12,877 6,390 9,121 11,501 2,665 1,522' 7,400 10 Private placement4 55,300r 92,400r 148,800 12,400 12,400 12,400 12,400 12,400 12,400 n.a. n.a. By industry group 11 Nonfinancial 74,113 110,284 118,369 7,773 8,645 6,205 8,278 10,794 2,146 4,356r 4,463 12 Financial 52,642 21,284 16,548 262 4,232 185 843 707 519 3,166r 2,937 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 Nonfinancial Statistics • June 2001 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2000 2001 IItteemm 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb.r Mar. 1 Sales of own shares' 1,791,894 2,279,315 179,890 159,809 169,071 143,412 170,255 206,765 148,362 162,750 2 Redemptions of own shares 1,621.987 2,057,277 159,027 147.644 153,067 138,791 160,918 171,819 141,663 175,773 3 Net sales' 169.906 222,038 20,864 12,166 16,004 4,621 9,337 34,946 6,699 -13,023 4 Assets4 5,233,191 5,123,747 5,745,264 5,550,176 5,442,937 4,993,008 5,123,747 5,280,222 4,879,229 4,600,489 5 Cash5 219.189 277,386 261,967 280,192 302,682 300,133 277,386 280,472 274,077 247,769 6 Other 5,014,002 4,846,361 5,483,298 5,269,984 5,140,255 4,692,875 4,846,361 4,999,750 4,605,152 4,352,720 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 1999 2000 AAccccoouunntt 11999988 11999999 22000000 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 1 Profits with inventory valuation and capital consumption adjustment 815.0 856.0 946.2 852.0 836.8 842.0 893.2 936.3 963.6 970.3 914.7 2 Profits before taxes 758.2 823.0 925.6 797.6 804.5 819.0 870.7 920.7 942.5 945.1 894.1 3 Profits-tax liability 244.6 255.9 284.2 247.8 250.8 254.2 270.8 286.3 292.0 290.6 267.7 4 Profits after taxes 513.6 567.1 641.4 549.9 553.7 564.8 599.9 634.4 650.4 654.4 626.4 5 Dividends 351.5 370.7 397.0 361.1 367.2 373.9 380.6 387.3 393.0 400.1 407.6 6 Undistributed profits 162.1 196.4 244.4 188.7 186.5 190.9 219.3 247.1 257.4 254.4 218.8 7 Inventory valuation 17.0 -9.1 -12.9 11.4 -8.9 -19.7 -19.2 -25.0 -13.6 -4.5 -8.5 8 Capital consumption adjustment 39.9 42.1 33.5 42.9 41.2 42.7 41.6 40.6 34.7 29.7 29.1 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 11999988 11999999 22000000 Q2 Q3 Q4 Ql Q2 Q3 Q4 ASSETS 1 Accounts receivable, gross2 711.7 811.5 915.3 756.5 776.3 811.5 848.7 884.4 900.1 915.3 2 Consumer 261.8 279.8 296.1 269.2 271.0 279.8 285.4 294.1 301.9 296.1 3 Business 347.5 405.2 471.1 373.7 383.0 405.2 434.6 454.1 455.7 471.1 4 Real estate 102.3 126.5 148.1 113.5 122.3 126.5 128.8 136.2 142.4 148.1 5 LESS: Reserves for unearned income 56.3 53.5 59.9 53.4 54.0 53.5 54.0 57.1 58.8 59.9 6 Reserves for losses 13.8 13.5 14.7 13.4 13.6 13.5 14.0 14.4 14.2 14.7 7 Accounts receivable, net 641.6 744.6 840.6 689.7 708.6 744.6 780.7 813.0 827.1 840.6 8 All other 337.9 406.3 463.0 373.2 368.5 406.3 412.7 418.3 441.4 463.0 9 Total assets 979.5 1,150.9 1,303.7 1,062.9 1,077.2 1,150.9 1,193.4 1,231.3 1,268.4 1,303.7 LIABILITIES AND CAPITAL 10 Bank loans 26.3 35.1 35.6 25.1 27.0 35.1 28.5 32.5 35.4 35.6 11 Commercial paper 231.5 227.9 235.2 231.0 205.3 227.9 230.2 221.3 215.6 235.2 Debt 12 Owed to parent 61.8 123.8 145.8 65.4 84.5 123.8 145.1 137.1 144.3 145.8 13 Not elsewhere classified 339.7 397.0 464.1 383.1 396.2 397.0 412.0 445.4 465.5 464.1 14 All other liabilities 203.2 222.7 280.4 226.1 216.0 222.7 247.6 259.3 269.2 280.4 15 Capital, surplus, and undivided profits 117.0 144.5 142.6 132.2 148.2 144.5 130.1 135.6 138.3 142.6 16 Total liabilities and capital 979.5 1,150.9 1,303.6 1,062.9 1,077.2 1,150.9 1,193.4 1,231.3 1,268.4 1,303.6 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 2001 TTyyppee ooff ccrreeddiitt 11999988 11999999 22000000 Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total 875.8 993.9 l,145.2r 1,112.1 1,134.9 1,136.2 l,145.2r l,158.2r 1,163.1 2 Consumer 352.8 385.3 439.3 419.7 437.3 439.8 439.3 445.3 450.2 3 Real estate 131.4 154.7 174.9r 170.9 174.4 176.6 174.9r 177.7r 178.9 4 Business 391.6 453.9 531.0 521.6 523.2 519.7 531.0 535.2r 534.0 Not seasonally adjusted 5 Total 884.0 1,003.2 l,156.0r 1,106.8 1,132.9 1,137.9 l,156.0r l,158.2r 1,163.1 6 Consumer 356.1 388.8 443.4 421.0 437.9 441.4 443.4 445.4 448.1 7 Motor vehicles loans 103.1 114.7 122.5 130.1 131.8 127.8 122.5 117.5 118.5 8 Motor vehicle leases 93.3 98.3 102.9 104.6 104.3 104.0 102.9 103.8 103.4 9 Revolving2 32.3 33.8 38.3 35.4 37.1 38.0 38.3 38.1 38.9 10 Other3 33.1 33.1 32.4 31.7 31.9 32.0 32.4 32.4 32.0 Securitized assets4 11 Motor vehicle loans 54.8 71.1 97.1 78.8 84.3 91.5 97.1 103.9 105.2 12 Motor vehicle leases 12.7 9.7 6.6 7.2 7.0 6.8 6.6 6.3 6.9 13 Revolving 8.7 10.5 27.5 17.2 25.8 25.8 27.5 27.6 27.6 14 Other 18.1 17.7 16.0 16.0 15.7 15.5 16.0 15.8 15.6 15 Real estate 131.4 154.7 174.9r 170.9 174.4 176.6 174.9r 177.7' 178.9 16 One- to four-family 75.7 88.3 105.4r 100.9 104.6 107.0 105.4r 108.2r 109.5 17 Other 26.6 38.3 42.9 41.5 42.1 42.7 42.9 43.2 43.3 Securitized real estate assets4 18 One- to four-family 29.0 28.0 24.7 26.5 25.7 25.0 24.7 24.4 24.2 19 Other .1 .2 1.9 1.9 1.9 1.9 1.9 1.9 1.9 20 Business 396.5 459.6 537.7 514.9 520.6 519.9 537.7 535.lr 536.1 21 Motor vehicles 79.6 87.8 95.2 94.1 95.9 93.3 95.2 93.6 93.6 22 Retail loans 28.1 33.2 31.0 34.8 34.7 32.3 31.0 30.8 30.7 23 Wholesale loans5 32.8 34.7 39.6 35.5 37.5 37.3 39.6 38.2 37.6 24 Leases 18.7 19.9 24.6 23.7 23.7 23.8 24.6 24.6 25.2 25 Equipment 198.0 221.9 267.3 256.7 259.4 259.3 267.3 265.6r 262.6 26 Loans 50.4 52.2 56.2 55.8 56.1 54.7 56.2 56.3 55.6 27 Leases 147.6 169.7 211.1 200.9 203.3 204.6 211.1 209.3r 206.9 28 Other business receivables6 69.9 95.5 108.6 104.9 103.7 103.2 108.6 110.4r 114.9 Securitized assets4 29 Motor vehicles 29.2 31.5 37.8 31.9 34.2 37.0 37.8 37.3 37.2 30 Retail loans 2.6 2.9 3.2 2.4 2.3 3.1 3.2 3.1 2.9 31 Wholesale loans 24.7 26.4 32.5 27.1 29.5 31.5 32.5 32.1 31.7 32 Leases 1.9 2.1 2.2 2.4 2.4 2.4 2.2 2.2 2.6 33 Equipment 13.0 14.6 23.1 21.4 21.7 21.3 23.1 22.5 22.2 34 Loans 6.6 7.9 15.5 15.1 14.9 14.6 15.5 14.7 14.5 35 Leases 6.4 6.7 7.6 6.4 6.7 6.7 7.6 7.8 7.8 36 Other business receivables6 6.8 8.4 5.6 5.8 5.8 5.8 5.6 5.6 5.6 NOTE. This table has been revised to incorporate several changes resulting from the before deductions for unearned income and losses. Components may not sum to totals benchmarking of finance company receivables to the June 1996 Survey of Finance Compa- because of rounding. nies. In that benchmark survey, and in the monthly surveys that have followed, more detailed 2. Excludes revolving credit reported as held by depository institutions that are subsidiarbreakdowns have been obtained for some components. In addition, previously unavailable ies of finance companies. data on securitized real estate loans are now included in this table. The new information has 3. Includes personal cash loans, mobile home loans, and loans to purchase other types of resulted in some reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic Nonfinancial Statistics • June 2001 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2000 2001 IItteemm 11999988 11999999 22000000 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms1 1 Purchase price (thousands of dollars) 195.2 210.7 234.5 241.9 240.2 247.2 250.0 238.7 245.0 244.5 2 Amount of loan (thousands of dollars) 151.1 161.7 177.0 182.5 180.4 184.2 187.3 181.6 185.4 182.9 3 Loan-to-price ratio (percent) 80.0 78.7 77.4 77.1 77.2 76.2 76.5 78.2 77.9 77.2 4 Maturity (years) 28.4 28.8 29.2 29.2 29.2 29.2 29.1 29.4 29.0 28.8 5 Fees and charges (percent of loan amount)' .89 .77 .70 .70 .69 .69 .73 .71 .70 .66 Yield (percent per year) 6 Contract rate1 6.95 6.94 7.41 7.41 7.43 7.36 7.29 7.09 6.99 6.94 7 Effective rate1,3 7.08 7.06 7.52 7.52 7.53 7.47 7.40 7.20 7.10 7.04 8 Contract rate (HUD series)4 7.00 7.45 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. SECONDARY MARKETS Yield (percent per year) 9 FHA mortgages (Section 203)5 7.04 7.74 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 GNMA securities6 6.43 7.03 7.57 7.43 7.30 7.22 6.83 6.57 6.61 6.41 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 414,515 523,941 610,122 574,087 586,756 598,951 610,122 623,950 632,850 n.a. 12 FHA/VA insured 33,770 55,318 61,539 59,961 60,329 60,694 61,539 62,970 63,337 n.a. 13 Conventional 380,745 468,623 548,583 514,126 526,427 538,257 548,583 560,980 569,513 n.a. 14 Mortgage transactions purchased (during period) 188,448 195,210 154,231 11,501 18,444 17,322 17,193 20,598 17,230 20,899 Mortgage commitments (during period) 15 Issued7 193,795 187,948 163,689 16,143 17,435 15,287 20,120 27,325 25,471 n.a. 16 To sell8 1,880 5,900 11,786 693 268 676 1,436 766 835 n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of period)8 17 Total 255,010 324,443 385,693 361,624 365,198 372,819 385,693 391,679 407,086 421,655 18 FHA/VA insured 785 1,836 3,332 3,517 3,530 3,321 3,332 3,307 3,319 3,329 19 Conventional 254,225 322,607 382,361 358,107 361,668 369,498 382,361 388,372 403,767 418,326 Mortgage transactions (during period) 20 Purchases 267,402 239,793 174,043 21,748 16,195 19,402 24,313 15,658 16,536 24,648 21 Sales 250,565 233,031 166,901 21,189 15,614 18,823 22,277 15,364 15,549 23,367 22 Mortgage commitments contracted (during period)' 281,899 228,432 169,231 19,481 17,915 20,012 21,780 18,685 17,664 26,682 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 the Federal 5. Average gross yield on thirty-year, minimum-downpayment first mortgages insured National Mortgage Association 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 Q3 Q4 Ql Q2 Q3 1 All holders 4,868,298 5,204,119 5,737,161 6,236,316 6,385,916 6,481,515 6,651,208 6,803,226 By type of property 2 One- to four-family residences 3,718,683 3,973,692 4,362,699 4,698,263 4,793,966 4,853,759 4,977,879 5,104,650 3 Multifamily residences 288,837 302,291 332,121 360,939 374,596 382,386 392,595 399,882 4 Nonfarm, nonresidential 773,643 837,837 945,836 1,075,719 1,114,392 1,141,622 1,174,687 1,191,463 5 Farm 87,134 90,299 96,506 101,395 102,962 103,748 106,047 107,232 By type of holder 6 Major financial institutions 1,981,886 2,083,981 2,194,813 2,321,356 2,394,923 2,456,786 2,548,570 2,603,713 7 Commercial banks2 1,145,389 1,245,315 1,337,217 1,418,819 1,495,502 1,546,816 1,614,307 1,648,734 8 One- to four-family 677,603 745,510 797,492 827,291 879,552 904,581 948,496 968,069 9 Multifamily 45,451 49,670 54,116 63,964 67,591 72,431 75,713 76,945 10 Nonfarm, nonresidential 397,452 423,148 456,574 496,246 516,520 537,131 556,382 569,801 11 Farm 24,883 26,986 29,035 31,320 31,839 32,673 33,717 33,919 12 Savings institutions3 628,335 631,826 643,957 676,346 668,634 680,745 701,992 721,488 13 One- to four-family 513,712 520,782 533,918 560,622 549,072 560,046 578,641 595,472 14 Multifamily 61,570 59,540 56,821 57,282 59,138 57,759 59,142 60,044 15 Nonfarm, nonresidential 52,723 51,150 52,801 57,983 59,948 62,447 63,691 65,441 16 Farm 331 354 417 459 475 493 518 531 17 Life insurance companies 208,162 206,840 213,640 226,190 230,787 229,225 232,270 233,491 18 One- to four-family 6,977 7,187 6,590 7,432 5,934 5,874 5,949 5,999 19 Multifamily 30,750 30,402 31,522 31,998 32,818 32,602 33,037 33,206 20 Nonfarm, nonresidential 160,315 158,779 164,004 174,571 179,048 177,870 180,243 181,167 21 Farm 10,120 10,472 11,524 12,189 12,987 12,879 13,041 13,119 22 Federal and related agencies 295,192 286,194 293,613 322,572 322,352 323,145 332,868 336,871 23 Government National Mortgage Association 2 8 7 8 7 7 7 6 24 One- to four-family 2 8 7 8 7 7 7 6 25 Multifamily 0 0 0 0 0 0 0 0 26 Farmers Home Administration4 41,596 41,195 40,851 73,705 73,871 72,899 72,896 73,009 27 One- to four-family 17,303 17,253 16,895 16,583 16,506 16,456 16,435 16,444 28 Multifamily 11,685 11,720 11,739 11,745 11,741 11,732 11,729 11,734 29 Nonfarm, nonresidential 6,841 7,370 7,705 41,068 41,355 40,509 40,554 40,665 30 Farm 5,768 4,852 4,513 4,308 4,268 4,202 4,179 4,167 31 Federal Housing and Veterans' Administrations 6,244 3,811 3,674 3,889 3,712 3,794 3,845 3,395 32 One- to four-family 3,524 1,767 1,849 2,013 1,851 1,847 1,832 1,327 33 Multifamily 2,719 2,044 1,825 1,876 1,861 1,947 2,013 2,068 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 2,431 724 361 163 152 98 72 82 40 One- to four-family 365 117 58 26 25 16 12 13 41 Multifamily 413 140 70 31 29 19 14 16 42 Nonfarm, nonresidential 1,653 467 233 105 98 63 46 53 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 168,813 161,308 157,675 153,172 151,500 150,312 153,507 153,114 45 One- to four-family 155,008 149,831 147,594 142,982 141,195 139,986 142,478 141,786 46 Multifamily 13,805 11,477 10,081 10,190 10,305 10,326 11,029 11,328 47 Federal Land Banks 29,602 30,657 32,983 34,217 34,187 34,142 34,830 35,549 48 One- to four-family 1,742 1,804 1,941 2,013 2,012 2,009 2,049 2,092 49 Farm 0 0 0 0 0 0 0 0 50 Federal Home Loan Mortgage Corporation 46,504 48,454 57,085 55,695 56,676 57,009 56,972 57,046 51 One- to four-family 41,758 42,629 49,106 44,010 44,321 43,384 42,892 42,138 52 Multifamily 4,746 5,825 7,979 11,685 12,355 13,625 14,080 14,908 53 Mortgage pools or trusts5 2,040,847 2,239,350 2,589,800 2,891,187 2,954,784 2,982,316 3,034,134 3,112,824 54 Government National Mortgage Association 506,246 536,879 537,446 569,038 582,263 589,192 590,830 602,794 55 One- to four-family 494,064 523,225 522,498 552,670 565,189 571,506 572,783 584,318 56 Multifamily 12,182 13,654 14,948 16,368 17,074 17,686 18,047 18,476 57 Federal Home Loan Mortgage Corporation 554,260 579,385 646,459 738,581 749,081 757,106 768,641 790,891 58 One- to four-family 551,513 576,846 643,465 735,088 744,619 752,607 763,890 786,007 59 Multifamily 2,747 2,539 2,994 3,493 4,462 4,499 4,751 4,884 60 Federal National Mortgage Association 650,779 709,582 834,517 938,484 960,883 975,815 995,815 1,020,828 61 One- to four-family 633,209 687,981 804,204 903,531 924,941 938,898 957,584 981,206 62 Multifamily 17,570 21,601 30,313 34,953 35,942 36,917 38,231 39,622 63 Farmers Home Administration4 3 2 1 0 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 0 0 0 0 0 68 Private mortgage conduits 329,559 413,502 571,378 645,083 662,557 660,203 678,848 698,311 69 One- to four-family6 258,800 316,400 412,700 455,276 462,600 455,623 464,593 477,899 70 Multifamily 16,369 21,591 34,329 40,935 42,628 43,268 44,290 44,513 71 Nonfarm, nonresidential 54,390 75,511 124,348 148,872 157,330 161,312 169,965 175,899 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 550,372 594,594 658,935 701,202 713,857 719,268 735,636 749,818 74 One- to four-family 363,104 382,315 423,416 447,171 454,126 456,285 469,801 487,534 75 Multifamily 68,830 72,088 75,374 76,242 78,420 79,326 80,219 81,808 76 Nonfarm, nonresidential 100,269 121,412 140,171 156,874 160,093 162,289 163,806 158,437 77 Farm 18,169 18,779 19,974 20,915 21,217 21,368 21,811 22,039 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic Nonfinancial Statistics • June 2001 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2000 2001 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999988 11999999 22000000 Sept. Oct. Nov. Dec. Jan. Feb. Seasonally adjusted 1 Total 1,301,023 1,393,657 1,533,800 1,492,934 1,509,568 1,522,000 1,533,800 1,550,000 1,568,600 2 Revolving 560,504 595,610 663,000 649,297 656,666 662,800 663,000 680,900 687,800 3 Nonrevolving2 740,519 798,047 870,800 843,637 852,902 862,200 870,800 882,600 880,800 Not seasonally adjusted 4 Total 1,331,742 1,426,151 1,568,800 1,495,627 1,513,688 1,529,800 1,568,800 1,558,700 1,556300 By major holder 5 Commercial banks 508,932 499,758 543,700 521,767 521,515 527,200 543,700 533,300 530,600 6 Finance companies 168,491 181,573 193,200 197,276 200,815 197,800 193,200 189,600 189,200 7 Credit unions 155,406 167,921 185,300 181,597 183,010 184,200 185,300 184,100 182,500 8 Savings institutions 51,611 61,527 64,000 62,580 62,815 63,100 64,000 64,100 64,100 9 Nonfinancial business 74,877 80,311 82,700 72,091 70,842 73,800 82,700 73,000 71,700 10 Pools of securitized assets3 372,425 435,061 500,000 460,316 474,691 483,800 500,000 514,400 518,300 By major type of credit4 11 Revolving 586,528 623,245 692,800 645,820 654,678 664,300 692,800 681,700 680,800 12 Commercial banks 210,346 189,352 218,100 202,362 201,874 206,100 218,100 205,900 205,500 13 Finance companies 32,309 33,814 38,251 35,405 37,147 37,956 38,251 38,074 38,891 14 Credit unions 19,930 20,641 21,759 20,779 20,804 21,276 21,759 21,313 20,963 15 Savings institutions 12,450 15,838 16,556 16,327 16,403 16,480 16,556 16,775 16,994 16 Nonfinancial business 39,166 42,783 42,430 35,817 34,484 36,430 42,430 38,845 35,290 17 Pools of securitized assets3 272,327 320,817 356,114r 335,126 343,313 345,817 356,114r 355,965 363,466 18 Nonrevolving 745,214 802,906 875,784r 844,772 861,838 870,362 875,784r 879,988 877,010 19 Commercial banks 298,586 310,406 325,648 319,423 321,998 325,284 325,648 329,723 327,331 20 Finance companies 136,182 147,759 154,938 161,871 163,700 159,803 154,938 149,937 150,555 21 Credit unions 135,476 147,280 163,493 160,818 162,359 162,960 163,493 163,461 163,403 22 Savings institutions 39,161 45,689 47,452 46,196 46,615 47,034 47,452 47,255 47,057 23 Nonfinancial business 35,711 37,528 40,22 ir 36,274 36,308 37,347 40,22 r 38,723 37,724 24 Pools of securitized assets3 100,098 114,244 144,032r 125,190 130,858 137,934 144,032r 150,889 150,941 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 2001 IItteemm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb. INTEREST RATES Commercial banks2 1 48-month new car 8.72 8.44 9.34 9.62 n.a. n.a. 9.63 n.a. n.a. 9.17 2 24-month personal 13.74 13.39 13.90 13.85 n.a. n.a. 14.12 n.a. n.a. 13.71 Credit card plan 3 All accounts 15.71 15.21 15.71 15.98 n.a. n.a. 15.99 n.a. n.a. 15.66 4 Accounts assessed interest 15.59 14.81 14.91 15.35 n.a. n.a. 15.23 n.a. n.a. 14.61 Auto finance companies 5 New car 6.30 6.66 6.61 7.46 7.16 4.74 5.41 7.45 7.29 7.28 6 Used car 12.64 12.60 13.55 13.70 13.91 13.87 13.66 13.58 13.11 13.16 OTHER TERMS3 Maturity (months) 7 New car 52.1 52.7 54.9 55.7 55.9 57.6 57.3 55.2 54.3 55.2 8 Used car 53.5 55.9 57.0 57.2 57.0 57.0 56.8 56.6 57.8 57.9 Loan-to-value ratio 9 New car 92 92 92 92 91 93 93 91 90 90 10 Used car 99 99 99 100 100 100 100 100 98 98 Amount financed (dollars) 11 New car 19,083 19,880 20,923 20,664 21,010 22,069 22,443 21,867 21,315 21,173 12 Used car 12,691 13,642 14,058 14,166 13,950 13,978 14,325 14,591 14,155 14,105 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 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . . 711.1 731.3 804.6 1,044.6 1,121.5 939.8 1,178.0 1,089.5 924.0 971.5 779.9 835.7 By sector and instrument 2 Federal government 144.4 145.0 23.1 -52.6 -71.2 -98.5 -68.9 -34.0 -215.5 -414.0 -219.5 -334.5 Treasury securities 142.9 146.6 23.2 -54.6 -71.0 -99.1 -68.9 -34.0 -213.5 -415.8 -217.1 -333.3 4 Budget agency securities and mortgages 1.5 -1.6 -.1 2.0 -.2 .6 .0 .0 -2.1 1.8 -2.4 -1.2 5 Nonfederal 566.7 586.3 781.5 1,097.2 1,192.7 1,038.3 1,247.0 1,123.5 1,139.6 1,385.4 999.4 1,170.2 By instrument 6 Commercial paper 18.1 -.9 13.7 24.4 37.4 -2.6 49.8 44.0 29.8 110.4 56.1 -4.0 7 Municipal securities and loans -48.2 2.6 71.4 96.8 68.2 56.8 71.3 52.5 8.9 34.0 29.8 68.6 8 Corporate bonds 91.1 116.3 150.5 218.7 229.9 287.6 202.8 155.2 186.2 153.8 184.4 175.6 9 Bank loans n.e.c 103.7 70.5 106.5 108.2 82.7 24.0 112.3 108.6 131.9 163.1 31.8 84.2 in Other loans and advances 67.2 33.5 69.1 74.3 71.2 2.3 79.2 55.4 153.3 124.4 -2.5 141.1 u Mortgages 195.8 275.7 317.7 507.2 608.9 608.9 655.4 598.3 484.9 662.6 577.0 570.5 I? Home 181.0 242.1 252.3 386.8 432.0 440.2 479.4 397.1 344.1 489.4 429.6 414.1 n Multifamily residential 6.1 9.0 8.2 20.8 40.2 33.0 41.3 50.9 29.5 44.7 31.3 36.6 14 Commercial 7.1 22.0 54.1 93.4 131.2 126.7 127.6 147.9 104.4 119.7 110.7 116.8 15 Farm 1.6 2.6 3.2 6.2 5.5 9.0 7.0 2.5 6.9 8.9 5.3 3.0 16 Consumer credit 138.9 88.8 52.5 67.6 94.4 61.4 76.2 109.5 144.6 137.2 122.9 134.2 By borrowing sector 17 Household 363.5 357.8 337.1 479.1 538.2 512.9 580.6 498.0 523.0 638.9 555522..22 557766..00 18 Nonfinancial business 254.7 235.3 388.2 537.8 602.1 481.8 613.9 591.9 612.8 725.7 423.5 533.9 19 Corporate 227.5 149.1 266.5 418.1 481.6 372.8 473.8 453.6 481.3 592.4 309.1 404.5 20 Nonfarm noncorporate 24.3 81.4 115.6 112.0 115.3 107.2 131.6 132.7 116.5 125.1 109.3 117.6 71 Farm 2.9 4.8 6.2 7.7 5.2 1.7 8.5 5.6 15.0 8.3 5.1 11.7 22 State and local government -51.5 -6.8 56.1 80.3 52.3 43.6 52.5 33.6 3.8 20.8 23.6 60.3 23 Foreign net borrowing in United States 78.5 88.4 71.8 43.3 25.3 -24.5 77.3 17.6 118.0 -7.6 89.2 47.8 74 Commercial paper 13.5 11.3 3.7 7.8 16.3 -27.5 41.1 33.6 57.8 12.0 7.0 50.1 75 Bonds 57.1 67.0 61.4 34.8 14.2 .2 44.0 -2.7 45.7 -27.4 71.7 -15.3 76 Bank loans n.e.c 8.5 9.1 8.5 6.7 .5 5.6 -6.6 2.3 15.4 5.7 11.9 12.2 27 Other loans and advances -.5 1.0 -1.8 -6.0 -5.7 -2.8 -1.1 -15.5 -.9 2.0 -1.5 .8 28 Total domestic plus foreign 789.6 819.7 876.3 1,087.9 1,146.8 915.3 1,255.4 1,107.1 1,042.0 963.9 869.0 883.5 Financial sectors 29 Total net borrowing by financial sectors 454.0 545.7 653.8 1,073.9 1,087.9 995.3 1,064.2 1,063.2 617.7 817.5 733.2 1,079.0 By instrument 30 Federal government-related 204.2 231.4 212.9 470.9 592.0 576.6 651.6 550.1 248.6 370.9 503.5 607.9 31 Government-sponsored enterprise securities 105.9 90.4 98.4 278.3 318.2 304.7 407.1 367.9 104.9 248.9 278.1 300.5 32 Mortgage pool securities 98.3 141.0 114.6 192.6 273.8 271.9 244.5 182.2 143.7 122.1 225.4 307.4 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 249.8 314.4 440.9 603.0 495.9 418.8 412.6 513.0 369.2 446.6 229.7 471.1 35 Open market paper 42.7 92.2 166.7 161.0 176.2 57.3 89.9 479.0 130.9 77.4 65.2 237.5 36 Corporate bonds 195.9 173.8 210.5 296.9 221.8 254.8 179.5 -21.0 166.5 230.7 195.9 220.9 37 Bank loans n.e.c 2.5 12.6 13.2 30.1 -14.3 11.0 -5.9 -55.6 .3 5.4 -.7 -12.7 38 Other loans and advances 3.4 27.9 35.6 90.2 107.1 107.9 139.8 107.5 64.4 123.1 -36.7 19.1 39 Mortgages 5.3 7.9 14.9 24.8 5.1 -12.3 9.4 3.2 7.0 10.0 6.0 6.4 By borrowing sector 40 Commercial banking 22.5 13.0 46.1 72.9 67.2 61.5 107.0 54.1 72.4 113.2 2233..55 3311..11 41 Savings institutions 2.6 25.5 19.7 52.2 48.0 59.2 51.9 5.8 40.6 59.1 -23.4 32.5 47 Credit unions -.1 .1 .1 .6 2.2 1.4 2.8 3.3 -2.9 .9 1.1 1.0 43 Life insurance companies -.1 1.1 .2 .7 .7 3.0 1.1 -4.4 -.7 -1.1 -.3 -.7 44 Government-sponsored enterprises 105.9 90.4 98.4 278.3 318.2 304.7 407.1 367.9 104.9 248.9 278.1 300.5 45 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 271.9 244.5 182.2 143.7 122.1 225.4 307.4 46 Issuers of asset-backed securities (ABSs) 142.4 150.8 202.2 321.4 234.0 301.5 220.5 124.2 166.0 154.8 155.6 298.8 47 Finance companies 50.2 45.9 48.7 43.0 62.4 90.5 -17.2 99.2 52.3 103.9 96.9 46.8 48 Mortgage companies -2.2 4.1 -4.6 1.6 .2 5.1 -6.1 6.2 -3.0 2.7 -.3 1.0 49 Real estate investment trusts (REITs) 4.5 11.9 39.6 62.7 6.3 -19.7 7.9 11.3 11.5 9.8 -2.4 10.4 50 Brokers and dealers -5.0 -2.0 8.1 7.2 -17.2 -18.3 17.8 -37.3 44.4 -.7 25.4 -6.7 51 Funding corporations 34.9 64.1 80.7 40.7 92.2 -65.3 27.0 250.6 -11.4 4.0 -46.4 56.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • June 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 11999955 11999966 11999977 11999988 11999999 Q2 Q3 Q4 Ql Q2 Q3 Q4 All sectors 52 Total net borrowing, all sectors 1,243.7 1,365.4 1,530.1 2,161.8 2,234.6 1,910.7 2,319.6 2,170.3 1,659.8 1,781.4 1,602.2 1,962.6 53 Open market paper 74.3 102.6 184.1 193.1 229.9 27.2 180.7 556.6 218.4 199.8 128.4 283.6 54 U.S. government securities 348.6 376.4 236.0 418.3 520.7 478.1 582.7 516.1 33.0 -43.0 284.0 273.4 55 Municipal securities -48.2 2.6 71.4 96.8 68.2 56.8 71.3 52.5 8.9 34.0 29.8 68.6 56 Corporate and foreign bonds . . . 344.1 357.0 422.4 550.4 465.9 542.6 426.3 131.5 398.4 357.2 452.0 381.2 57 Bank loans n.e.c 114.7 92.1 128.2 145.0 68.9 40.6 99.8 55.2 147.7 174.2 43.0 83.6 58 Other loans and advances 70.1 62.5 102.8 158.5 172.6 107.5 217.9 147.3 216.9 249.5 -40.7 161.0 59 Mortgages 201.1 283.5 332.6 532.0 614.0 596.6 664.8 601.5 491.9 672.6 583.0 576.9 60 Consumer credit 138.9 88.8 52.5 67.6 94.4 61.4 76.2 109.5 144.6 137.2 122.9 134.2 Funds raised through mutual funds and corporate equities 61 Total net issues 131.5 231.9 181.2 100.0 156.5 173.1 124.5 172.9 410.7 168.9 208.1 -105.7 62 Corporate equities -16.0 -5.7 -83.9 -174.6 -31.8 -39.3 -3.0 .1 104.6 -68.7 -51.7 -282.0 63 Nonfinancial corporations -58.3 -69.5 -114.4 -267.0 -143.5 -338.4 -128.4 -55.0 62.8 -248.8 -75.6 -350.8 64 Foreign shares purchased by U.S. residents 50.4 82.8 57.6 101.2 114.4 284.4 121.7 71.3 63.3 180.1 50.0 71.5 65 Financial corporations -8.1 -19.0 -27.1 -8.9 -2.8 14.7 3.7 -16.2 -21.4 -.1 -26.1 -2.8 66 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 212.4 127.5 172.8 306.1 237.6 259.8 176.3 I. 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 11999955 11999966 11999977 11999988 11999999 Q2 Q3 Q4 QL Q2 Q3 Q4 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,243.7 1,365.4 1,530.1 2,161.8 2,234.6 1,910.7 2,319.6 2,170.3 1,659.8 1,781.4 1,602.2 1,962.6 ? Domestic nonfederal nonfinancial sectors -61.0 79.5 -13.7 132.3 264.5 360.2 234.2 -8.8 -156.0 151.0 -178.1 -212.4 Household 34.5 127.8 1.0 -16.2 200.5 279.4 242.8 9.7 -251.3 84.3 -186.6 -219.4 4 Nonfinancial corporate business -8.8 -10.2 -12.7 14.0 19.1 -1.4 33.0 -22.3 90.4 22.6 3.7 -29.4 5 Nonfarm noncorporate business 4.7 -4.3 -2.1 .1 1.5 1.2 .8 1.4 2.6 2.8 3.8 4.3 6 State and local governments -91.4 -33.7 .1 134.5 43.4 81.0 -42.4 2.4 2.3 41.4 1.0 32.1 7 Federal government -.5 -7.2 5.1 13.5 5.8 6.7 11.2 -11.7 6.5 7.7 4.5 15.0 8 Rest of the world 273.9 414.4 311.3 254.2 210.6 61.6 385.3 138.7 325.9 207.1 195.0 390.9 9 Financial sectors 1,031.2 878.7 1,227.5 1,761.7 1,753.7 1,482.1 1,688.9 2,052.2 1,483.4 1,415.6 1,580.8 1,769.1 10 Monetary authority 12.7 12.3 38.3 21.1 25.7 59.8 20.6 -42.2 103.4 -3.9 27.3 7.9 11 Commercial banking 265.9 187.5 324.3 305.2 308.2 166.6 449.4 548.7 377.1 484.6 369.3 206.1 1? U.S.-chartered banks 186.5 119.6 274.9 312.0 317.6 259.4 421.9 457.7 409.2 505.6 332.8 113.9 13 Foreign banking offices in United States 75.4 63.3 40.2 -11.9 -20.1 -102.5 33.2 42.0 4.8 -29.9 30.9 90.4 14 Bank holding companies -.3 3.9 5.4 -.9 6.2 .4 -12.4 42.6 -42.2 3.5 -6.7 -3.3 15 Banks in U.S.-affiliated areas 4.2 .7 3.7 6.0 4.4 9.2 6.6 6.3 5.4 5.4 12.3 5.1 16 Savings institutions -7.6 19.9 -4.7 36.3 68.7 85.3 58.1 20.2 50.2 73.0 56.5 43.0 17 Credit unions 16.2 25.5 16.8 19.0 27.5 32.7 27.5 18.8 35.6 36.6 28.5 25.4 18 Bank personal trusts and estates -8.3 -7.7 -25.0 -12.8 27.8 27.8 27.8 27.8 18.9 13.8 17.6 18.1 19 Life insurance companies 100.0 69.6 104.8 76.9 53.5 68.2 36.8 30.7 57.2 52.0 85.9 79.7 20 Other insurance companies 21.5 22.5 25.2 20.4 -4.2 26.7 -14.4 -9.4 -14.0 -18.1 6.0 6.3 71 Private pension funds 19.9 -4.1 47.6 56.4 45.0 68.7 5.9 49.8 46.8 24.7 68.9 21.4 77 State and local government retirement funds 33.6 37.3 63.8 71.5 49.9 25.1 40.0 58.2 55.3 20.7 -32.1 8.5 73 Money market mutual funds 86.5 88.8 87.5 244.0 182.0 -67.0 224.8 354.5 208.8 -156.2 244.9 299.4 74 Mutual funds 52.5 48.9 80.9 124.8 47.2 117.2 -13.0 -12.7 -77.8 63.7 46.3 72.2 75 Closed-end funds 10.5 4.7 -2.9 4.5 3.1 3.1 3.1 3.1 3.1 3.1 3.1 3.1 26 Government-sponsored enterprises 86.7 84.2 94.3 261.7 235.5 251.7 275.9 225.3 139.2 222.5 158.9 264.5 27 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 271.9 244.5 182.2 143.7 122.1 225.4 307.4 78 Asset-backed securities issuers (ABSs) 120.6 120.5 163.8 281.7 215.8 284.8 212.0 94.4 145.3 120.3 120.4 269.9 79 Finance companies 49.9 18.4 21.9 51.9 94.9 88.1 91.7 114.4 132.9 138.9 81.4 43.4 30 Mortgage companies -3.4 8.2 -9.1 3.2 .3 10.2 -12.1 12.3 -6.0 5.5 -.5 2.0 31 Real estate investment trusts (REITs) 1.4 4.4 20.2 -5.1 -2.6 -2.2 -2.7 -7.0 -16.3 -2.5 -3.6 -5.4 37 Brokers and dealers 90.1 -15.7 14.9 6.8 -34.7 -135.9 -6.7 -30.5 122.5 38.1 176.8 -52.9 33 Funding corporations -15.7 12.6 50.4 1.6 136.3 99.4 19.7 413.6 -42.6 176.8 -100.2 149.2 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,243.7 1,365.4 1,530.1 2,161.8 2,234.6 1,910.7 2,319.6 2,170.3 1,659.8 1,781.4 1,602.2 1,962.6 Other financial sources 35 Official foreign exchange 8.8 -6.3 .7 6.6 -8.7 -5.4 -8.5 --77..00 11..55 -8.8 .7 88..77 36 Special drawing rights certificates 2.2 -.5 -.5 .0 -3.0 .0 -4.0 -4.0 .0 -8.0 -4.0 -4.0 37 Treasury currency .7 .5 .5 .6 1.0 2.1 2.0 .0 2.2 3.2 4.2 .0 38 Foreign deposits 35.3 85.9 108.9 2.0 86.5 110.1 69.4 52.7 258.5 8.5 -89.2 -80.0 39 Net interbank transactions 10.0 -51.6 -19.7 -32.3 17.6 93.4 -30.8 -40.7 -71.1 177.7 -61.3 -84.6 40 Checkable deposits and currency -12.8 15.7 41.2 47.4 151.4 37.5 139.3 365.2 -219.1 -65.0 49.2 -49.4 41 Small time and savings deposits 96.6 97.2 97.1 152.4 44.7 106.6 119.1 28.0 104.3 130.3 238.5 298.8 47 Large time deposits 65.6 114.0 122.5 92.1 130.6 42.4 102.7 359.4 149.2 108.4 141.5 64.9 43 Money market fund shares 141.2 145.4 155.9 287.2 249.1 115.3 174.3 485.5 241.0 48.2 241.9 402.8 44 Security repurchase agreements 110.5 41.4 120.9 91.3 169.7 -80.7 191.4 310.5 284.1 130.4 238.2 -200.6 45 Corporate equities -16.0 -5.7 -83.9 -174.6 -31.8 -39.3 -3.0 .1 104.6 -68.7 -51.7 -282.0 46 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 212.4 127.5 172.8 306.1 237.6 259.8 176.3 4 4 7 8 T Se ra c d u e ri t p y a y c a re b d le it s 1 2 2 6 7 . . 7 5 1 5 1 2 3 . . 4 5 1 13 1 2 1 . . 1 0 1 2 0 9 3 . . 0 3 1 1 9 0 7 4 . . 3 3 2 1 2 2 4 8 . . 4 2 24 2 3 9 . . 6 7 3 1 2 9 1 9 . . 3 5 2 5 2 2 8 3 . . 2 4 - 1 9 2 9 4 . . 8 8 1 1 0 3 4 2 . . 1 6 10 1 0 4 . . 5 4 49 Life insurance reserves 45.8 44.5 59.3 48.0 50.8 42.1 48.1 57.6 49.8 59.7 51.7 55.6 50 Pension fund reserves 158.7 148.1 201.2 202.5 187.7 199.0 191.6 177.3 217.6 220.4 196.2 129.3 51 Taxes payable 6.2 16.2 15.7 12.0 15.7 47.3 .4 16.8 22.5 31.6 -6.0 19.3 57 Investment in bank personal trusts 6.4 -5.3 -49.9 -42.5 -7.1 -7.1 -7.2 -6.9 -5.9 -10.6 -6.6 -5.5 53 Noncorporate proprietors' equity 34.6 -3.4 -46.0 -41.4 -8.0 23.8 -56.5 10.2 -13.4 -2.4 39.9 -18.2 54 Miscellaneous 505.4 532.1 487.5 841.6 749.1 1,436.1 534.8 584.9 701.5 1,105.4 1,189.7 1,063.7 55 Total financial sources 2,744.3 2,937.2 3,249.7 4,061.4 4,519.7 4,598.8 4,183.4 5,253.8 4,544.7 3,904.2 4,271.5 3,572.7 Liabilities not identified as assets (-) 56 Treasury currency -.3 -.4 -.2 -.1 -.7 .6 .2 -2.2 -1.8 • -.7 ..99 --11..66 57 Foreign deposits 25.1 59.6 107.4 -6.4 66.5 96.8 27.3 92.5 209.4 -65.7 -111.7 -132.1 58 Net interbank liabilities -3.1 -3.3 -19.9 3.4 3.5 -4.8 -7.0 -23.7 24.4 -4.3 -18.3 68.5 59 Security repurchase agreements 25.7 2.4 63.2 61.3 30.1 -.4 133.2 -225.9 561.2 27.6 119.3 -249.6 60 Taxes payable 21.1 23.1 28.0 13.9 3.2 25.0 3.0 -6.4 7.7 7.4 -15.4 -9.9 61 Miscellaneous -166.0 -82.8 -84.7 -56.4 -317.5 -101.4 -489.7 -157.6 -340.6 -267.1 -38.6 21.7 Floats not included in assets (—) 62 Federal government checkable deposits -6.0 .5 -2.7 2.6 -7.4 -27.0 8.6 -9.2 28.7 -2.6 -2.0 13.7 63 Other checkable deposits -3.8 -4.0 -3.9 -3.1 -.8 -.9 -.3 .0 .6 1.5 1.9 2.7 64 Trade credit 14.1 -21.9 -28.5 -40.1 54.0 -64.6 73.1 161.7 -2.9 -38.3 -41.4 32.2 65 Total identified to sectors as assets 2,837.6 2,964.2 3,190.9 4,086.3 4,688.9 4,675.5 4,434.9 5,424.6 4,058.0 4,246.5 4,376.7 3,827.0 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 DomesticN onfinancial Statistics • June 2001 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1999 2000 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999999 Q2 Q3 Q4 Ql Q2 Q3 Q4 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 14,443.7 15,246.8 16,291.4 17,447.5 16,786.7 17,109.0 17,447.5 17,677.2 17,857.4 18,064.0 18,344.3 By sector and instrument 2 Federal government 3,781.8 3,804.9 3,752.2 3,681.0 3,651.7 3,633.4 3,681.0 3,653.5 3,464.0 3,410.2 3,385.2 3 Treasury securities 3,755.1 3,778.3 3,723.7 3,652.8 3,623.4 3,605.1 3,652.8 3,625.8 3,435.7 3,382.6 3,357.8 4 Budget agency securities and mortgages 26.6 26.5 28.5 28.3 28.3 28.3 28.3 27.8 28.2 27.6 27.3 5 Nonfederal 10,662.0 11,441.9 12,539.1 13,766.5 13,135.0 13,475.6 13,766.5 14,023.7 14,393.5 14,653.9 14,959.2 By instrument 6 Commercial paper 156.4 168.6 193.0 230.3 232.4 239.3 230.3 260.8 296.8 307.0 278.4 7 Municipal securities and loans 1,296.0 1,367.5 1,464.3 1,532.5 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 8 Corporate bonds 1,460.4 1,610.9 1,829.6 2,059.5 1,970.0 2,020.7 2,059.5 2,106.0 2,144.5 2,190.6 2,234.5 9 Bank loans n.e.c 934.1 1,040.5 1,148.8 1,231.5 1,178.5 1,202.9 1,231.5 1,259.1 1,307.2 1,311.6 1,334.2 10 Other loans and advances 770.4 839.5 913.8 985.3 956.0 969.8 985.3 1,030.2 1,059.0 1,063.6 1,100.4 11 Mortgages 4,833.1 5,150.8 5,658.0 6,301.3 5,947.8 6,154.2 6,301.3 6,412.4 6,580.4 6,735.2 6,875.0 12 Home 3,719.0 3,971.3 4,358.1 4,790.1 4,563.8 4,693.3 4,790.1 4,865.9 4,990.6 5,108.6 5,209.4 13 Multifamily residential 278.4 286.6 307.4 347.8 324.8 335.1 347.8 355.2 366.4 374.2 383.3 14 Commercial 748.6 802.6 896.0 1,061.4 959.6 1,024.4 1,061.4 1,087.5 1,117.4 1,145.1 1,174.3 15 Farm 87.1 90.3 96.5 102.0 99.6 101.4 102.0 103.7 106.0 107.3 108.0 16 Consumer credit 1,211.6 1,264.1 1,331.7 1,426.2 1,340.4 1,370.1 1,426.2 1,416.0 1,454.0 1,495.6 1,568.8 By borrowing sector 17 Household 5,222.5 5,559.9 6,039.0 6,577.5 6,260.7 6,424.7 6,577.5 6,647.5 6,816.7 6,985.8 7,169.1 18 Nonfinancial business 4,376.1 4,762.5 5,300.3 5,936.8 5,636.0 5,808.5 5,936.8 6,118.9 6,311.0 6,405.0 6,510.8 19 Corporate 3,095.3 3,359.9 3,778.0 4,294.0 4,062.0 4,199.7 4,294.0 4,445.5 4,601.2 4,667.0 4,740.8 20 Nonfarm noncorporate 1,130.9 1,246.5 1,358.4 1,473.8 1,408.0 1,440.2 1,473.8 " 1,503.2 1,534.5 1,561.1 1,590.9 21 Farm 149.9 156.1 163.8 169.0 166.1 168.6 169.0 170.2 175.4 176.9 179.1 22 State and local government 1,063.4 1,119.5 1,199.8 1,252.1 1,238.2 1,242.4 1,252.1 1,257.3 1,265.7 1,263.1 1,279.3 23 Foreign credit market debt held in United States 542.2 608.0 651.4 676.9 652.7 672.9 676.9 704.6 699.3 727.8 738.8 24 Commercial paper 67.5 65.1 72.9 89.2 70.1 81.8 89.2 101.6 101.2 109.8 120.9 25 Bonds 366.3 427.7 462.5 476.7 466.4 477.4 476.7 488.1 481.3 499.2 495.4 26 Bank loans n.e.c 43.7 52.1 58.9 59.4 60.5 58.8 59.4 63.3 64.7 67.7 70.7 27 Other loans and advances 64.7 63.0 57.2 51.7 55.8 55.0 51.7 51.7 52.1 51.2 51.8 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,985.9 15,854.7 16,942.8 18,124.4 17,439.4 17,781.9 18,124.4 18,381.8 18,556.7 18,791.9 19,083.1 Financial sectors 29 Total credit market debt owed by financial sectors 4,824.5 5,445.2 6,519.1 7,607.0 7,073.3 7,346.8 7,607.0 7,744.3 7,964.4 8,160.1 8,430.8 By instrument 30 Federal government-related 2,608.2 2,821.1 3,292.0 3,884.0 3,580.7 3,745.9 3,884.0 3,940.1 4,035.5 4,164.2 4,316.7 31 Government-sponsored enterprise securities 896.9 995.3 1,273.6 1,591.7 1,398.0 1,499.8 1,591.7 1,618.0 1,680.2 1,749.7 1,824.8 32 Mortgage pool securities 1.711.3 1,825.8 2,018.4 2,292.2 2,182.7 2,246.1 2,292.2 2,322.1 2,355.3 2,414.5 2,491.9 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 2,216.3 2,624.1 3,227.1 3,723.0 3,492.6 3,601.0 3,723.0 3,804.2 3,928.9 3,995.9 4,114.1 35 Open market paper 579.1 745.7 906.7 1,082.9 940.9 963.4 1,082.9 1,115.7 1,135.2 1,151.6 1,210.7 36 Corporate bonds 1,378.4 1,555.9 1,852.8 2,074.6 2,042.8 2,091.1 2,074.6 2,114.2 2,183.2 2,239.3 2,290.1 37 Bank loans n.e.c 64.0 77.2 107.2 92.9 106.8 105.2 92.9 91.4 92.7 92.5 91.0 38 Other loans and advances 162.9 198.5 288.7 395.8 328.6 365.4 395.8 404.4 436.9 430.2 438.3 39 Mortgages 31.9 46.8 71.6 76.7 73.6 75.9 76.7 78.5 81.0 82.5 84.1 By borrowing sector 40 Commercial banks 113.6 140.6 188.6 230.0 202.7 224.2 230.0 242.2 265.4 265.2 266.8 41 Bank holding companies 150.0 168.6 193.5 219.3 205.5 211.8 219.3 221.4 229.3 236.9 242.5 42 Savings institutions 140.5 160.3 212.4 260.4 241.6 255.4 260.4 266.9 280.7 276.0 287.7 43 Credit unions .4 .6 1.1 3.4 1.8 2.5 3.4 2.6 2.9 3.1 3.4 44 Life insurance companies 1.6 1.8 2.5 3.2 4.0 4.3 3.2 3.0 2.7 2.7 2.5 45 Government-sponsored enterprises 896.9 995.3 1,273.6 1,591.7 1,398.0 1,499.8 1,591.7 1,618.0 1,680.2 1,749.7 1,824.8 46 Federally related mortgage pools 1,711.3 1,825.8 2,018.4 2,292.2 2,182.7 2,246.1 2,292.2 2,322.1 2,355.3 2,414.5 2,491.9 47 Issuers of asset-backed securities (ABSs) 863.3 1,076.6 1,398.0 1,632.0 1,539.9 1,599.1 1,632.0 1,665.8 1,706.4 1,753.6 1,837.8 48 Brokers and dealers 27.3 35.3 42.5 25.3 30.2 34.6 25.3 36.4 36.2 42.6 40.9 49 Finance companies 529.8 554.5 597.5 659.9 639.2 628.5 659.9 670.7 699.2 716.5 734.8 50 Mortgage companies 20.6 16.0 17.7 17.8 17.8 16.3 17.8 17.1 17.8 17.7 17.9 51 Real estate investment trusts (REITs) 56.5 96.1 158.8 165.1 160.3 162.2 165.1 167.9 170.4 169.8 172.4 52 Funding corporations 312.7 373.7 414.4 506.6 449.7 462.0 506.6 510.1 517.9 511.9 507.4 All sectors 53 Total credit market debt, domestic and foreign ... 19,810.4 21,300.0 23,461.9 25,731.4 24,512.7 25,128.7 25,731.4 26,126.1 26,521.1 26,952.0 27,513.9 54 Open market paper 803.0 979.4 1,172.6 1,402.4 1,243.3 1,284.5 1,402.4 1,478.1 1,533.3 1,568.3 1,610.0 55 U.S. government securities 6,389.9 6,626.0 7,044.3 7,565.0 7,232.4 7,379.2 7,565.0 7,593.6 7,499.4 7,574.4 7,701.8 56 Municipal securities 1,296.0 1,367.5 1,464.3 1,532.5 1,510.0 1,518.6 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 57 Corporate and foreign bonds 3,205.1 3,594.5 4,144.9 4,610.8 4,479.2 4,589.1 4,610.8 4,708.3 4,808.9 4,929.0 5,019.9 58 Bank loans n.e.c 1,041.7 1,169.8 1,314.9 1,383.8 1,345.7 1,366.9 1,383.8 1,413.7 1,464.6 1,471.7 1,495.9 59 Other loans and advances 998.0 1,101.0 1,259.6 1,432.7 1,340.3 1,390.1 1,432.7 1,486.3 1,548.0 1,545.0 1,590.5 60 Mortgages 4,865.1 5,197.7 5,729.6 6,378.0 6,021.4 6,230.1 6,378.0 6,490.8 6,661.3 6,817.7 6,959.1 61 Consumer credit 1,211.6 1,264.1 1,331.7 1,426.2 1,340.4 1.370.1 1,426.2 1,416.0 1,454.0 1,495.6 1,568.8 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES' Billions of dollars except as noted, end of period 1999 2000 Transaction category or sector 1996 1997 1998 11999999 Q2 Q3 Q4 Ql Q2 Q3 Q4 CREDIT MARKET DEBT OUTSTANDING2 1 Total credit market assets 19,810.4 21,300.0 23,461.9 25,731.4 24,512.7 25,128.7 25,731.4 26,126.1 26,521.1 26,952.0 27,513.9 ? Domestic nonfederal nonfinancial sectors 3.032.1 2,974.7 3,078.7 3,413.3 3,233.9 3.291.4 3,413.3 3,343.6 3,355.1 3,317.0 3,326.4 Household 2.119.1 2,076.4 2,031.9 2,302.5 2,133.6 2,191.8 2,302.5 2,233.7 2,224.0 2,182.1 2,171.2 4 Nonfinancial corporate business 270.2 257.5 271.5 290.6 268.5 280.5 290.6 288.9 296.5 301.5 312.4 5 Nonfarm noncorporate business 38.0 35.9 35.9 37.5 36.9 37.1 37.5 38.1 38.8 39.8 40.8 6 State and local governments 604.8 605.0 739.4 782.8 794.8 781.9 782.8 782.9 795.8 793.7 802.0 7 Federal government 200.2 205.4 219.1 258.0 225.0 260.7 258.0 259.6 261.6 262.7 266.4 8 Rest of the world 1,926.6 2,257.3 2,539.8 2,678.0 2,621.3 2.718.1 2,678.0 2,763.6 2,812.8 2,862.0 2,957.7 9 14,651.5 15,862.5 17,624.3 19,382.0 18,432.5 18,858.5 19,382.0 19,759.3 20,091.6 20,510.3 20,963.3 10 Monetary authority 393.1 431.4 452.5 478.1 485.1 489.3 478.1 501.9 505.1 511.5 511.8 11 Commercial banking 3,707.7 4,031.9 4,335.7 4,643.9 4,383.4 4,488.3 4,643.9 4,725.0 4,847.4 4,931.0 5,003.1 12 U.S.-chartered banks 3,175.8 3,450.7 3,761.2 4,078.9 3.847.6 3,944.3 4,078.9 4,171.3 4,295.4 4,368.2 4,419.3 13 Foreign banking offices in United States 475.8 516.1 504.2 484.1 465.7 475.3 484.1 482.0 478.1 487.5 508.1 14 Bank holding companies 22.0 27.4 26.5 32.7 25.1 22.0 32.7 22.1 23.0 21.3 20.5 1*5 Banks in U.S.-affiliated areas 34.1 37.8 43.8 48.3 45.0 46.7 48.3 49.6 51.0 54.0 55.3 16 Savings institutions 933.2 928.5 964.8 1,033.4 1,011.4 1,030.8 1,033.4 1,044.5 1,061.7 1,080.9 1,089.1 17 Credit unions 288.5 305.3 324.2 351.7 341.0 348.5 351.7 359.0 370.8 378.6 383.2 18 Bank personal trusts and estates 232.0 207.0 194.1 222.0 208.0 215.0 222.0 226.7 230.2 234.6 239.1 19 Life insurance companies 1,657.0 1,751.1 1,828.0 1,886.0 1,869.6 1,880.4 1,886.0 1,901.5 1,913.4 1,936.5 1,954.7 20 Other insurance companies 491.2 515.3 535.7 531.6 537.5 533.9 531.6 528.0 523.5 525.0 526.6 21 Private pension funds 627.0 674.6 731.0 775.9 762.0 763.5 775.9 787.6 793.8 811.0 816.4 22 State and local government retirement funds 568.2 632.0 703.6 753.4 728.9 738.9 753.4 767.2 772.4 764.4 766.5 23 Money market mutual funds 634.3 721.9 965.9 1.147.8 1,001.8 1,049.7 1,147.8 1,217.1 1,159.4 1,212.5 1,297.1 24 Mutual funds 820.2 901.1 1,025.9 1,073.1 1,083.7 1,083.0 1,073.1 1,053.7 1,073.9 1,088.1 1,099.2 25 Closed-end funds 101.1 98.3 102.8 105.9 104.3 105.1 105.9 106.7 107.4 108.2 109.0 26 Government-sponsored enterprises 807.9 902.2 1,163.9 1,399.5 1,268.5 1,339.1 1,399.5 1,426.6 1,483.8 1,532.8 1.602.9 27 Federally related mortgage pools 1,711.3 1,825.8 2,018.4 2,292.2 2,182.7 2,246.1 2,292.2 2,322.1 2,355.3 2,414.5 2,491.9 28 Asset backed securities issuers (ABSs) 773.9 937.7 1,219.4 1,435.3 1,352.7 1,409.8 1,435.3 1,463.9 1,495.8 1,534.3 1,611.2 29 Finance companies 544.5 566.4 618.4 713.3 660.9 678.2 713.3 747.0 780.6 795.5 812.4 30 Mortgage companies 41.2 32.1 35.3 35.6 35.6 32.5 35.6 34.1 35.5 35.4 35.9 31 Real estate investment trusts (REITs) 30.4 50.6 45.5 42.9 45.3 44.7 42.9 38.8 38.2 37.3 36.0 32 Brokers and dealers 167.7 182.6 189.4 154.7 158.8 166.8 154.7 201.1 189.3 243.5 225,8 33 Funding corporations 121.0 166.7 169.8 305.8 211.1 214.9 305.8 306.7 354.2 334.6 351.6 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 19,810.4 21,300.0 23,461.9 25,731.4 24,512.7 25,128.7 25,731.4 26,126.1 26,521.1 26,952.0 27,513.9 Other liabilities 35 Official foreign exchange 53.7 48.9 60.1 50.1 50.9 52.1 50.1 49.4 46.5 44.9 46.1 36 Special drawing rights certificates 9.7 9.2 9.2 6.2 8.2 7.2 6.2 6.2 4.2 3.2 2.2 37 Treasury currency 18.9 19.3 19.9 20.9 20.4 20.9 20.9 21.4 22.1 23.2 23.2 38 Foreign deposits 521.7 619.7 639.0 725.8 694.9 712.3 725.8 790.4 792.6 770.3 750.3 39 Net interbank liabilities 240.8 219.4 189.0 204.5 207.1 199.6 204.5 168.1 215.9 200.3 198.5 40 Checkable deposits and currency 1,244.8 1,286.1 1,333.4 1,484.8 1,353.1 1,353.8 1,484.8 1,392.9 1,409.7 1,385.7 1,413.7 41 Small time and savings deposits 2,377.0 2,474.1 2,626.5 2,671.2 2,644.6 2,665.9 2,671.2 2,728.0 2,738.8 2,790.9 2,864.2 42 Large time deposits 590.9 713.4 805.5 936.1 809.0 837.5 936.1 966.5 987.4 1,025.9 1,052.1 43 Money market fund shares 886.7 1,042.5 1,329.7 1.578.8 1,393.5 1,444.9 1,578.8 1,666.0 1,627.1 1,697.8 1,812.3 44 Security repurchase agreements 701.5 822.4 913.7 1,083.4 957.1 999.4 1,083.4 1,155.8 1.185.1 1,238.6 1.196.5 45 Mutual fund shares 2,342.4 2,989.4 3,610.5 4,553.4 4,049.1 3,931.5 4,553.4 4,863.3 4,759.6 4,815.0 4,432.8 46 358.1 469.1 572.3 676.6 586.5 593.1 676.6 803.7 780.5 805.8 812.1 47 Life insurance reserves 610.6 665.0 718.3 783.9 749.8 756.2 783.9 799.9 809.4 822.3 823.5 48 Pension fund reserves 6,582.4 7,725.5 8,760.0 9,747.7 9,294.3 8,959.6 9,747.7 9,952.3 9,869.2 10,021.9 9,847.5 49 Trade payables 1,809.3 1,941.4 1,970.3 2,167.6 2,030.8 2,097.9 2,167.6 2,198.3 2,229.9 2,269.9 2,314.1 50 Taxes payable 123.8 139.5 151.5 167.2 162.4 167.5 167.2 180.5 180.0 184.1 184.1 51 Investment in bank personal trusts 871.3 942.5 1,001.0 1,130.4 1,061.0 1,019.0 1,130.4 1,163.0 1,124.1 1,122.3 1.039.0 52 Miscellaneous 6,349.1 6,670.6 7,237.9 7,787.5 7,431.5 7,448.5 7,787.5 7,915.4 8,164.1 8,609.7 8,777.6 53 Total liabilities 45,502.9 50,097.8 55,409.7 61,507.5 58,017.0 58,395.6 61,507.5 62,947.3 63,467.3 64,783.9 65,103.6 Financial assets not included in liabilities ( + ) 54 Gold and special drawing rights 21.4 21.1 21.6 21.4 20.8 21.3 21.4 21.4 21.5 21.4 21.6 55 Corporate equities 10,255.8 13,201.3 15,427.8 19,576.3 17,060.4 16,214.9 19,576.3 20.232.0 19,258.1 19,066.7 17,168.8 56 Household equity in noncorporate business 3,889.2 4,164.4 4,414.7 4,704.5 4,548.9 4,623.1 4,704.5 4,732.2 4,779.2 4,835.0 4,915.7 Liabilities not identified as assets (-) 57 Treasury currency -6.1 -6.3 --66..44 -7.1 -6.6 -6.6 -7.1 -7.6 -7.9 -7.6 -8.0 58 Foreign deposits 437.0 538.3 548.2 615.0 584.7 591.5 615.0 667.4 650.9 623.0 590.0 59 Net interbank transactions -10.6 -32.2 -27.0 -25.5 -10.6 -13.2 -25.5 -13.9 -11.6 -17.6 -4.1 60 Security repurchase agreements 109.8 172.9 234.3 264.4 291.6 325.0 264.4 411.3 416.5 445.3 379.0 61 Taxes payable 76.9 92.6 102.0 95.3 112.2 96.5 95.3 89.1 103.0 93.7 96.2 62 Miscellaneous -1,517.9 -1,889.8 -2,434.3 -2,884.0 -2,673.2 -2,988.0 -2,884.0 -3,029.7 -3,035.6 -2,805.8 -3,126.0 Floats not included in assets (—) 63 Federal government checkable deposits -1.6 -8.1 -3.9 -9.9 -12.4 -10.2 -9.9 -6.5 -5.2 -7.8 -2.3 64 Other checkable deposits 30.1 26.2 23.1 22.3 22.1 14.5 22.3 18.7 22.5 15.5 24.0 65 Trade credit 171.8 133.5 94.5 145.9 19.2 36.2 145.9 94.7 62.3 51.5 133.3 66 Total identified to sectors as assets 60,380.0 68,457.3 76,743.2 87,593.4 81,320.0 81,209.2 87,593.4 89,709.3 89,331.2 90,316.8 89,127.7 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.l and L.5. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A42 Domestic Nonfinancial Statistics • June 2001 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2000 2001 MMeeaassuurree 11999988 11999999 22000000 July Aug. Sept. Oct. Nov. Dec.' Jan.' Feb. Mar.P 1 Industrial production1 134.0 139.6 147.5 147.6 148.6 149.0 148.7 148,2 147.3 146.4 145.9 146.5 Market groups 2 Products, total 127.2 131.2 136.2 135.8 136.6 136.7 136.3 136.3 136.0 135.5 134.9 135.4 3 Final, total 129.3 133.3 138.8r 138.1 139.2 139.3 138.8 138.8 139.0 138.2 137.7 138.4 4 Consumer goods 118.4 120.8 123.0 122.9 123.8 123.8 122.7 122.4 123.1 122.1 122.0 122.3 5 Equipment 147.1 153.8 166.1 166.3 167.9 168.3 169.1 169.9 168.9 168.6 167.1 168.8 6 Intermediate 121.0 125.1 128.7r 128.7 128.8 128.6 128.7 128.5 126.8 127.3 126.5 126.2 7 Materials 145.7 154.5 167.8r 169.0 170.5 171.3 171.1 169.9 167.8 166.2 165.8 166.5 Industry groups 8 Manufacturing 138.2 144.8 153.6 153.7 154.6 155.1 154.9 154.1 152.6 151.8 151.3 151.8 9 Capacity utilization, manufacturing (percent)". . 81.3 80.5 81.3 81.6 81.7 81.7 81.2 80.5 79.3 78.6 78.2 78.1 10 Construction contracts3 122.4r 134.9' 142.2r 140.0r 138.0 143.0' 150.0' 143.0' 143.0 151.0 147.0 139.0 11 Nonagricultural employment, total4 123.5 126.3 128.9 129.1 129.0 129.2 129.3 129.3 129.4 129.6 129.8 129.7 12 Goods-producing, total 103.0 103.3 104.0 104.4 103.9 103.9 104.0 103.9 103.6 103.9 103.6 103.3 13 Manufacturing, total 99.0 97.6 97.0 97.6 97.0 96.7 96.7 96.6 96.4 95.9 95.4 95.0 14 Manufacturing, production workers 100.0 98.4 97.6 98.4 97.5 97.2 97.1 97.0 96.6 96.1 95.5 94.9 lb Service-producing 130.0 133.7 136.8 137.0 137.0 137.3 137.3 137.4 137.6 137.8 138.1 138.1 16 Personal income, total 186.5 196.6 209.0 209.5 210.1 212.5 212.1 212.5 213.5 214.8 215.8 216.8 17 Wages and salary disbursements 184.6 196.9 210.1 211.0 211.3 212.7 214.0 214.6 215.2 216.8 218.1 219.1 18 Manufacturing 152.3 157.4 164.2 165.8 164.9 165.1 166.6 166.9 165.5 165.8 165.5 165.6 19 Disposable personal income5 182.7 191.9 202.0 202.5 202.9 205.2 204.4 204.6 205.5 206.5 207.5 208.5 20 Retail sales5 178.4 194.7 210.0r 211.1 211.0 212.7 212.5 211.3 211.6 214.4 214.3 213.7 Prices6 21 Consumer (1982-84=100) 163.0 166.6 172.2 172.8 172.8 173.7 174.0 174.1 174.0 175.1 175.8 176.2 22 Producer finished goods (1982= 100) 130.7 133.0 138.0 138.6 138.2 139.4 140.1 140.0' 139.7 141.2 141.5 141.0 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data 3. Index of dollar value of total construction contracts, including residential, nonresidenare also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge latest historical revision of the industrial production index and the capacity utilization rates Division. was released in 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 2001 CCaatteeggoorryy 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan.' Feb.' Mar. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 137,673 139,368 140,863 140,724 140,847 141,000 141,136 141,489 141,955 141,751 141,868 Employment ? Nonagricultural industries3 128,085 130,207 131,903 131,622 131,954 132,223 132,302 132,562 132,819 132,680 132,618 3 Agriculture 3,378 3,281 3,305 3,317 3,356 3,241 3,176 3,274 3,179 3,135 3,161 Unemployment 4 6,210 5,880 5,655 5,785 5,537 5,536 5,658 5,653 5,956 5,936 6,088 5 Rate (percent of civilian labor force) 4.5 4.2 4.0 4.1 3.9 3.9 4.0 4.0 4.2 4.2 4.3 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 125,865 128,786 131,417 131,528 131,723 131,789 131,842 131,878 132,167 132,307 132,221 7 Manufacturing 18,805 18,543 18,437 18,432 18,380 18,378 18,360 18,312 18,220 18,123 18,042 8 Mining 590 535 538 537 539 542 541 540 547 550 552 9 Contract construction 6,020 6,404 6,687 6,675 6,720 6,745 6,734 6,717 6,874 6,881 6,893 10 Transportation and public utilities 6,611 6,826 6,993 6,941 7,037 7,046 7,060 7,086 7,077 7,108 7,113 11 Trade 29,095 29,712 30,191 30,253 30,249 30,280 30,331 30,330 30,346 30,421 30,373 12 Finance 7,389 7,569 7,618 7,608 7,622 7,638 7,647 7,661 7,676 7,689 7,706 13 Service 37,533 39,027 40,384 40,572 40,685 40,696 40,764 40,797 40,917 40,946 40,957 14 Government 19,823 20,170 20,570 20,510 20,491 20,464 20,405 20,435 20,510 20,589 20,585 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 2000 2001 2000 2001 2000 2001 SSeerriieess Q2 Q3 Q4r Ql Q2 Q3 Q4 Ql Q2 Q3 Q4r Ql Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 147.1 148.4 148.1 146.3 178.1 180.1 182.1 183.9 82.6 82.4 81.3 79.5 2 Manufacturing 153.0 154.4 153.8 151.6 186.9 189.2 191.5 193.6 81.9 81.7 80.3 78.3 3 Primary processing3 178.6 180.3 178.7 173.9 206.9 211.2 216.0 220.3 86.4 85.4 82.7 78.9 4 Advanced processing4 139.0 140.3 140.2 139.3 174.1 175.2 176.2 177.2 79.8 80.1 79.5 78.6 5 Durable goods 192.9 196.7 196.5 192.7 233.3 238.3 243.6 248.4 82.7 82.5 80.7 77.6 6 Lumber and products 120.3 117.0 113.2 108.5 147.5 147.9 148.4 148.7 81.6 79.1 76.3 72.9 7 Primary metals 137.0 133.4 127.5 122.9 153.3 153.4 153.5 153.5 89.4 87.0 83.1 80.1 8 Iron and steel 136.1 130.5 121.5 117.2 153.1 153.4 153.6 153.6 88.9 85.1 79.1 76.3 9 Nonferrous 138.2 137.0 134.7 129.7 153.4 153.4 153.4 153.4 90.1 89.3 87.8 84.6 10 Industrial machinery and equipment 249.4 257.3 261.9 258.7 304.5 311.1 317.3 323.4 81.9 82.7 82.5 80.0 11 Electrical machinery 535.1 581.1 604.0 606.8 591.7 639.1 694.1 745.4 90.4 90.9 87.1 81.4 12 Motor vehicles and parts 175.9 170.8 159.7 145.3 208.2 209.2 210.1 211.1 84.5 81.7 76.0 68.8 13 Aerospace and miscellaneous transportation equipment 92.9 93.5 94.8 94.1 130.7 130.4 130.2 130.0 71.1 71.7 72.8 72.4 14 Nondurable goods 116.7 116.2 115.3 114.3 144.1 144.4 144.6 144.7 80.9 80.5 79.7 79.0 15 Textile mill products 103.3 99.8 94.7 92.3 123.9 123.3 122.8 122.2 83.4 80.9 77.1 75.6 16 Paper and products 117.9 114.0 114.9 111.9 137.2 137.5 137.9 138.2 85.9 82.9 83.3 80.9 17 Chemicals and products 125.8 125.4 124.5 123.2 163.0 164.1 164.8 165.4 77.2 76.4 75.5 74.5 18 Plastics materials 140.9 137.6 131.0 125.1 151.6 151.9 152.3 152.7 93.0 90.5 86.0 81.9 19 Petroleum products 118.3 117.3 116.0 115.5 123.2 123.2 123.1 123.1 96.0 95.3 94.3 93.8 70 Mining 100.0 100.6 100.3 101.2 116.5 116.3 115.8 115.4 85.8 86.6 86.6 87.7 71 Utilities 120.7 121.0 123.7 123.1 132.3 133.4 134.5 135.6 91.2 90.7 92.0 90.8 22 Electric 124.3 123.9 127.5 125.4 130.9 132.3 133.8 135.3 94.9 93.7 95.3 92.7 1973 1975 Previous cycle5 Latest cycle6 2000 2001 High Low High Low High Low Mar. Oct. Nov. Dec.r Jan.1 Feb. Mar.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 82.2 82.0 81.4 80.6 79.9 79.3 79.4 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 81.6 81.2 80.5 79.3 78.6 78.2 78.1 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 85.9 84.5 82.8 80.9 79.3 78.8 78.6 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 79.6 79.9 79.7 79.0 78.9 78.4 78.5 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 82.1 81.7 80.8 79.5 78.0 77.2 77.5 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 82.8 77.5 76.3 75.0 72.4 73.4 73.0 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 89.5 84.1 82.9 82.2 80.4 79.9 79.9 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 89.5 80.6 79.4 77.2 75.5 76.2 77.3 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 89.8 88.2 87.1 88.2 86.3 84.4 83.1 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 82.1 83.0 82.5 82.1 80.9 79.9 79.2 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 87.8 88.5 87.1 85.5 83.2 81.0 80.0 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 83.2 79.7 76.2 72.1 65.7 68.0 72.7 13 Aerospace and miscellaneous transportation equipment 78.4 67.6 81.9 66.6 87.3 79.2 71.7 71.9 73.3 73.3 72.4 71.8 72.9 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 81.1 80.4 79.9 78.9 79.2 79.1 78.7 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 84.0 78.6 75.6 77.1 75.5 76.0 75.1 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 86.0 85.0 83.2 81.7 80.7 81.3 80.9 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 77.0 76.4 75.7 74.5 74.6 74.5 74.5 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 92.5 90.5 87.7 79.8 82.5 81.6 81.6 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 96.4 94.6 94.9 93.2 93.3 94.1 94.1 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 86.1 86.3 87.3 86.1 87.1 87.5 88.4 71 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 87.2 89.5 90.7 95.7 92.0 89.8 90.5 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 92.1 93.1 95.1 97.7 94.0 91.6 92.4 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 • June 2001 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2000 2001 22000000 GGrroouupp por- aavvgg.. tion Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.r Jan.r Feb. Mar.P Index (1992= 100) MAJOR MARKETS 1 Total index 100.0 147.5 145.2 146.3 147.2 147.9 147.6 148.6 149.0 148.7 148.2 147.3 146.4 145.9 146.5 2 Products 60.5 136.2 134.4 135.3 135.5 136.0 135.8 136.6 136.7 136.3 136.3 136.0 135.5 134.9 135.4 3 Final products 46.3 138.8 136.0 137.2 137.5 138.3 138.1 139.2 139.3 138.8 138.8 139.0 138.2 137.7 138.4 4 Consumer goods, total 29.1 123.0 122.2 123.2 123.5 124.2 122.9 123.8 123.8 122.7 122.4 123.1 122.1 122.0 122.3 5 Durable consumer goods 6.1 160.8 162.1 164.7 163.8 164.4 158.7 160.0 162.8 157.3 154.3 153.4 149.0 150.7 154.4 6 Automotive products 2.6 153.2 155.3 157.6 157.9 157.8 149.4 153.8 156.7 148.0 143.6 140.7 133.8 137.0 144.8 7 Autos and trucks 1.7 166.9 170.3 173.7 175.7 174.8 160.5 169.8 172.7 159.1 153.0 144.1 136.2 141.2 154.9 8 Autos, consumer .9 114.0 115.1 118.5 119.7 118.1 113.6 120.3 120.5 107.8 103.0 94.3 99.4 98.7 104.3 9 Trucks, consumer .7 221.6 227.3 230.7 233.7 233.2 209.8 221.8 227.1 212.0 204.3 194.7 175.5 185.6 206.9 10 Auto parts and allied goods .... .9 131.7 131.9 132.7 130.6 131.6 131.6 129.1 132.1 130.2 128.2 133.8 128.4 129.0 128.5 11 Other 3.5 167.1 167.7 170.6 168.5 169.8 166.7 165.2 167.7 165.4 163.7 164.7 162.9 163.1 162.7 12 Appliances, televisions, and air conditioners 1.0 332.6 332.3 341.1 334.6 348.2 322.3 325.0 340.5 332.5 332.7 341.7 333.3 331.8 338.0 13 Carpeting and furniture .8 129.7 128.3 131.8 130.8 130.1 131.5 128.6 131.9 129.8 125.4 127.4 123.9 128.1 125.1 14 Miscellaneous home goods 1.6 120.4 122.1 122.7 121.6 120.5 121.3 119.7 118.1 117.5 117.1 115.5 116.5 114.8 114.3 15 Nondurable consumer goods 23.0 114.2 112.9 113.6 114.1 114.8 114.5 115.2 114.7 114.5 114.6 115.7 115.3 114.9 114.5 16 Foods and tobacco 10.3 110.7 110.8 110.9 110.3 110.8 111.0 111.4 110.5 110.4 110.7 110.1 110.4 110.9 110.2 17 Clothing 2.4 85.0 87.2 87.5 86.8 85.1 85.6 84.2 83.1 82.7 83.2 82.4 82.8 80.3 79.7 18 Chemical products 4.5 137.0 134.9 136.5 138.5 139.3 137.4 139.4 138.4 139.0 138.5 139.0 140.1 140.4 141.0 19 Paper products 2.9 111.1 108.3 108.2 109.0 111.6 112.4 112.4 112.4 113.8 112.5 112.2 113.7 111.5 110.2 20 Energy 2.9 116.3 110.7 113.6 116.0 117.0 114.9 117.1 118.4 115.5 117.3 126.1 119.7 118.3 118.9 21 Fuels .8 113.0 114.9 112.1 113.1 113.4 112.6 113.1 115.8 113.0 115.5 112.3 112.0 112.9 112.4 22 Residential utilities 2.1 117.9 107.4 113.8 117.1 118.5 115.6 119.0 119.1 116.2 117.6 134.5 124.0 121.0 122.4 23 Equipment 17.2 166.1 161.3 162.8 163.1 164.3 166.3 167.9 168.3 169.1 169.9 168.9 168.6 167.1 168.8 24 Business equipment 13.2 194.2 188.9 191.1 191.6 192.8 195.0 197.8 199.5 200.0 200.6 199.2 198.2 196.2 197.9 25 Information processing and related 5.4 312.2 293.5 298.8 302.5 307.0 313.9 322.1 327.2 332.3 336.7 335.9 340.4 338.6 340.9 26 Computer and office equipment 1.1 1,157.6 1,044.0 1,062.0 1,087.8 1,130.8 1,182.8 1,229.0 1,264.1 1,286.4 1,305.0 1,318.3 1,333.3 1,343.8 1,354.8 27 Industrial 4.0 144.6 142.2 142.9 143.4 143.8 144.4 147.7 146.5 146.9 147.4 145.8 145.9 141.8 141.1 28 Transit 2.5 127.7 131.5 131.3 129.0 130.1 127.6 126.8 127.7 121.6 121.8 117.4 111.3 109.7 114.6 29 Autos and trucks 1.2 145.6 154.0 156.5 153.9 152.9 141.5 142.8 144.2 131.4 130.4 122.0 115.6 112.7 122.8 30 Other 1.3 145.7 142.9 146.7 145.8 142.8 148.1 144.8 149.3 154.2 148.6 153.5 150.2 154.0 154.3 31 Defense and space equipment 3.3 76.2 76.0 75.5 75.5 76.3 77.9 76.1 73.7 75.3 77.0 77.5 78.5 78.1 79.4 32 Oil and gas well drilling .6 131.8 126.7 126.7 130.3 130.8 136.2 137.1 132.8 136.5 138.9 139.1 146.7 147.9 150.7 33 Manufactured homes .2 116.2 131.7 127.2 122.9 121.9 116.8 115.5 109.3 98.8 90.9 83.5 73.5 74.8 75.0 34 Intermediate products, total 14.2 128.7 129.5 129.3 129.4 129.0 128.7 128.8 128.6 128.7 128.5 126.8 127.3 126.5 126.2 35 Construction supplies 5.3 143.2 144.6 144.4 143.1 143.4 143.8 142.7 143.1 142.3 141.6 140.6 140.3 139.5 139.1 36 Business supplies 8.9 120.1 120.6 120.4 121.3 120.5 119.8 120.6 120.0 120.7 120.7 118.5 119.6 118.7 118.5 37 Materials 39.5 167.8 164.7 166.1 168.4 169.4 169.0 170.5 171.3 171.1 169.9 167.8 166.2 165.8 166.5 38 Durable goods materials 20.8 227.6 220.0 222.7 227.6 230.3 230.5 233.8 235.7 235.0 232.9 230.3 227.0 226.3 227.5 39 Durable consumer parts 4.0 165.3 164.9 162.2 169.9 165.7 158.3 168.3 169.0 168.5 161.8 157.6 146.2 149.3 153.3 40 Equipment parts 7.6 478.3 434.2 451.9 466.8 486.2 499.9 505.7 512.1 515.9 521.4 522.3 520.0 520.2 522.7 41 Other 9.2 134.6 135.9 135.7 135.9 135.9 135.3 134.7 135.5 133.7 131.8 129.6 130.0 127.8 127.3 42 Basic metal materials 3.1 128.7 131.1 131.9 130.8 130.7 128.5 127.5 129.2 125.9 124.4 123.6 120.6 119.0 119.0 43 Nondurable goods materials 8.9 113.8 115.6 115.2 115.7 115.2 113.9 112.8 112.7 113.4 110.7 108.6 108.3 108.1 107.9 44 Textile materials 1.1 97.9 102.2 101.1 100.9 101.7 97.9 99.3 95.9 94.0 89.5 90.3 90.1 87.9 87.4 45 Paper materials 1.8 115.8 118.1 118.7 117.5 118.1 114.9 112.8 113.8 117.2 113.4 109.4 110.0 111.4 110.7 46 Chemical materials 3.9 117.0 118.6 118.1 119.8 118.4 117.0 116.8 116.3 115.9 113.7 109.8 110.5 110.1 110.0 47 Other 2.1 113.0 113.5 112.6 112.4 112.3 113.7 110.2 112.0 114.0 111.9 113.9 110.9 110.7 110.7 48 Energy materials 9.7 103.4 102.5 103.5 103.3 103.1 102.9 104.2 104.3 103.9 105.4 104.5 104.0 104.1 104.9 49 Primary energy 6.3 98.1 97.7 98.8 98.3 98.4 98.7 98.9 98.5 97.8 99.3 98.6 99.9 99.9 100.9 50 Converted fuel materials 3.3 114.3 112.3 113.0 113.7 112.4 110.8 115.1 116.6 117.2 118.7 117.3 111.5 111.6 112.0 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 147.2 144.8 145.7 146.7 147.5 147.5 148.4 148.7 148.8 148.4 147.8 147.1 146.5 146.7 52 Total excluding motor vehicles and parts 95.1 146.3 143.9 144.9 145.8 146.5 146.9 147.4 147.7 147.8 147.7 147.2 146.9 146.1 146.2 53 Total excluding computer and office equipment 98.2 140.4 138.6 139.6 140.4 141.0 140.5 141.4 141.6 141.2 140.8 139.9 139.0 138.4 139.0 54 Consumer goods excluding autos and trucks . 27.4 120.6 119.6 120.5 120.7 121.5 120.9 121.3 121.2 120.7 120.6 121.9 121.2 120.8 120.5 55 Consumer goods excluding energy 26.2 123.9 123.6 124.4 124.4 125.0 123.9 124.5 124.4 123.6 122.9 122.5 122.2 122.3 122.6 56 Business equipment excluding autos and trucks 12.0 200.1 193.1 195.2 196.1 197.6 201.5 204.5 206.3 208.5 209.4 208.9 208.7 206.8 207.3 57 Business equipment excluding computer and office equipment 12.1 158.4 155.7 157.4 157.3 157.6 158.6 160.3 161.2 161.2 161.5 159.9 158.8 156.7 158.1 58 Materials excluding energy 29.8 188.5 184.6 186.0 189.3 190.7 190.3 191.8 193.0 192.8 190.4 187.8 185.7 185.2 185.8 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Monthly data seasonally adjusted 1992 Group S co K d T e p p r o o r - - 2 a 0 v 0 g 0 . tion Apr. May June July Aug. Sept. Oct. Nov. Dec Jan.r Index (1992=100) MAJOR INDUSTRIES 59 Total index 100.0 147.5 145.2 146.3 147.2 147.9 147.6 148.6 149.0 148.7 148.2 147.3 146.4 145.9 146.5 60 Manufacturing 85.4 153.6 151.3 152.2 153.1 153.8 153.7 154.6 155.1 154.9 154.1 152.6 151.8 151.3 151.8 61 Primary processing 26.5 178.0 175.5 177.1 178.7 180.1 179.4 180.3 181.2 181.1 178.8 176.1 173.7 173.7 174.1 62 Advanced processing 58.9 139.3 137.9 138.5 139.1 139.4 139.5 140.5 140.8 140.5 140.5 139.6 139.6 139.0 139.4 63 Durable goods 45.0 193.4 188.9 191.0 193.0 194.6 194.7 196.9 198.4 197.6 196.7 195.1 192.7 191.9 193.6 64 Lumber and products " '24 2.0 118.3 121.9 121.6 120.5 118.7 118.6 115.5 116.8 114.8 113.2 111.5 107.7 109.1 108.6 65 Furniture and fixtures 25 1.4 142.9 139.3 140.7 143.0 141.9 142.6 143.8 146.6 147.2 145.0 145.3 144.9 143.8 143.1 66 Stone, clay, and glass products 32 2.1 134.7 134.4 132.9 134.2 134.6 136.3 136.1 136.5 137.3 134.6 132.4 135.2 133.1 133.2 67 Primary metals 33 3.1 133.7 137.1 137.8 136.7 136.4 133.9 132.4 133.9 129.0 127.3 126.3 123.5 122.7 122.6 68 Iron and steel 331,2 1.7 131.1 136.9 136.8 135.9 135.5 129.9 129.7 131.9 123.7 122.0 118.7 116.0 117.1 118.6 69 Raw steel 331PT .1 120.9 125.8 127.3 127.1 128.2 126.4 123.9 117.7 115.6 106.3 104.6 108.3 109.1 112.5 70 Nonferrous 333-6,9 1.4 136.8 137.6 139.1 137.9 137.6 138.8 135.7 136.5 135.3 133.6 135.2 132.3 129.4 127.5 71 Fabricated metal products . . 34 5.0 135.6 135.6 135.9 136.2 135.7 136.1 136.3 136.0 136.0 134.7 132.9 133.6 130.9 131.0 72 Industrial machinery and equipment 35 8.0 252.8 245.8 247.2 249.9 250.9 253.9 257.9 260.0 261.5 261.9 262.3 260.1 258.4 257.7 73 Computer and office equipment 357 1.8 1,343.6 1,224.7 1,245.1 1,272.3 1,316.2 1,370.4 1,421.6 1,464.2 1,487.4 1,502.8 1,508.3 1,522.7 1,533.8 1,544.5 74 Electrical machinery 36 7.3 549.7 495.2 516.5 533.8 555.0 571.2 580.0 592.2 597.4 604.4 610.2 607.4 604.4 608.6 75 Transportation equipment. . . 37 9.5 131.0 131.9 132.1 133.6 133.5 128.0 132.4 132.4 129.2 126.8 122.8 115.9 117.9 123.4 76 Motor vehicles and parts . 371 4.9 170.5 172.5 174.1 177.6 176.1 163.1 173.9 175.5 167.2 160.1 151.8 138.5 143.6 153.7 77 Autos and light trucks . 371PT 2.6 153.0 156.0 159.2 161.1 160.1 147.8 156.4 158.8 145.8 140.1 131.5 125.9 129.8 141.9 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 93.8 93.7 92.7 92.3 93.6 94.9 93.5 92.1 93.6 95.4 95.3 94.1 93.4 94.7 79 Instruments 38 5.4 122.2 120.2 121.5 121.3 122.2 122.6 123.3 123.7 123.5 124.6 123.1 124.9 123.4 123.7 80 Miscellaneous 39 1.3 130.8 130.6 130.9 130.7 130.5 132.1 130.8 130.9 131.1 130.2 129.4 130.4 128.3 126.9 81 Nondurable goods 40.4 116.9 116.6 116.7 116.7 116.7 116.3 116.3 116.0 116.3 115.5 114.1 114.6 114.4 114.0 82 Foods "20 9.4 114.7 114.9 114.7 114.2 114.9 115.0 115.1 114.6 114.8 115.0 114.2 114.3 115.1 114.8 83 Tobacco products 21 1.6 95.3 94.3 95.6 95.3 93.8 95.8 96.6 94.5 93.7 93.1 94.2 95.2 93.7 91.7 84 Textile mill products 22 1.8 100.1 104.4 104.4 102.6 103.1 101.4 99.4 98.4 96.7 92.8 94.5 92.4 92.9 91.6 85 Apparel products 23 2.2 91.7 94.1 94.6 93.0 91.2 92.0 90.7 89.5 89.2 89.2 88.2 89.1 86.6 86.7 86 Paper and products 26 3.6 116.1 117.8 118.4 116.5 118.8 114.9 113.3 113.7 117.1 114.7 112.7 111.4 112.4 111.9 87 Printing and publishing .... 27 6.7 109.9 109.7 109.1 109.9 109.1 110.0 110.4 110.9 111.6 111.2 109.2 111.1 110.2 109.2 88 Chemicals and products .... 28 9.9 128.3 124.9 125.2 126.3 125.9 124.8 125.9 125.4 125.8 124.8 122.9 123.3 123.1 123.2 89 Petroleum products 29 1.4 117.1 118.9 117.2 118.9 118.8 117.0 117.6 117.4 116.5 116.9 114.7 114.8 115.8 115.9 90 Rubber and plastic products . 30 3.5 142.3 143.0 143.5 142.6 143.5 144.4 142.1 141.9 141.3 139.1 137.3 138.5 137.0 136.4 91 Leather and products 31 .3 69.8 70.6 70.0 70.5 69.3 70.0 68.8 69.8 68.6 68.9 66.9 67.1 65.1 63.7 92 Mining 6.9 100.0 100.4 99.9 99.6 100.4 100.5 101.0 100.4 100.1 101.1 99.6 100.7 101.1 101.9 93 Metal "lO .5 97.4 99.7 98.8 95.7 97.5 92.9 95.8 99.3 96.3 93.7 99.5 93.8 92.7 90.4 94 Coal 12 1.0 108.9 110.1 112.6 112.2 113.6 110.3 109.3 107.0 110.2 108.6 106.1 115.2 110.7 116.6 95 Oil and gas extraction 13 4.8 95.0 94.6 94.0 94.3 94.8 95.7 96.3 95.7 95.1 96.6 95.2 95.7 96.6 97.1 96 Stone and earth minerals 14 .6 126.4 133.4 130.4 123.9 127.7 124.4 125.0 123.7 124.6 123.2 119.3 121.5 120.6 122.6 97 Utilities 7.7 120.4 114.7 118.7 121.6 121.7 119.1 122.1 121.7 120.0 121.9 129.! 124.4 121.8 123.1 98 Electric 491.3PT 6.2 123.9 119.7 122.8 125.2 124.8 121.1 126.1 124.7 124.2 127.3 131.2 126.7 123.9 125.5 99 Gas 492,3PT 1.6 109.3 98.3 104.4 108.7 110.5 111.0 108.4 110.5 105.8 104.5 120.2 115.0 113.1 113.7 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 152.6 150.1 151.0 151.7 152.6 153.2 153.5 153.9 154.3 153.8 152.7 152.8 115522..00 151.8 101 Manufacturing excluding computer and office equipment 83.6 145.4 143.6 144.4 145.2 145.8 145.4 146.2 146.5 146.2 145.4 143.9 143.1 142.7 143.1 102 Computers, communications equipment, and semiconductors 5.9 1,195.2 1,048.5 1,097.8 1,140.2 1,193.1 1,248.0 1,281.6 1,310.3 1,334.8 1,358.1 1,368.9 1,365.0 1,368.0 1,379.7 103 Manufacturing excluding computers and semiconductors 81.1 128.3 127.8 128.0 128.4 128.4 127.7 128.2 128.4 128.0 127.1 125.6 125.0 124.6 124.9 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 125.1 124.9 125.1 125.4 125.3 124.5 124.9 125.0 124.6 123.6 122.1 121.4 121.0 121.3 Gross value (billions of 1992 dollars, annual rates) Major Markets 105 Products, total 2,001.9 2,860.5 2,853.1 2,868.9 2,872.7 2,883.5 2,865.7 2,882.9 2,889.1 2,867.4 2,863.2 2,850.2 2,825.2 2,822.5 2,839.3 106 Final 1,552.1 2,203.4 2,186.3 2,202.8 2,205.6 2,218.6 2,202.8 2,220.5 2,228.1 2,205.4 2,203.7 2,198.2 2,172.8 2,173.4 2,191.4 107 Consumer goods 1,049.6 1,340.0 1,338.5 1,347.2 1,349.8 1,357.8 1,338.7 1,348.7 1,353.7 1,334.7 1,331.2 1,332.8 1,314.9 1,321.6 1,328.7 108 Equipment 502.5 865.7 854.0 862.2 862.2 867.3 872.8 880.8 883.3 880.9 883.3 874.9 867.9 860.0 872.2 109 Intermediate 449.9 656.7 665.6 665.0 666.0 663.9 661.8 661.5 660.2 661.0 658.6 651.2 651.4 648.2 647.2 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 • June 2001 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 2000 2001 item 11999988 11999999 22000000 May June July Aug. Sept. Oct. Nov. Dec. Jan.r Feb. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,612 1,664 1,574 1,511 1,528 1,511 1,486 1,518 1,546 1,598 1,507 1,724 1,675 2 One-family 1,188 1,247 1,184 1,150 1,127 1,117 1,140 1,157 1,191 1,183 1,158 1,287 1,239 3 Two-family or more 425 417 391 361 401 394 346 361 355 415 349 437 436 4 Started 1,617 1,667 1,593 1,591 1,571 1,527 1,519 1,537 1,529 1,564 1,577 1,671 1,634 One-family 1,271 1,335 1,262 1,258 1,227 1,201 1,229 1,226 1,232 1,233 1,298 1,351 1,297 6 Two-family or more 346 332 331 333 344 326 290 311 297 331 279 320 337 7 Under construction at end of period' 971 993 975 1,023 1,024 1,020 1,016 1,009 1,011 1,009 1,005 1,021 1,027 8 One-family 659 679 655 697 696 691 692 689 691 686 683 699 705 9 Two-family or more 312 314 321 326 328 329 324 320 320 323 322 322 322 10 Completed 1,474 1,636 1,608 1,705 1,545 1,531 1,612 1,559 1,546 1,589 1,578 1,460 1,546 11 One-family 1,160 1,307 1,282 1,377 1,222 1,216 1,266 1,215 1,212 1,290 1,265 1,136 1,210 12 Two-family or more 315 329 326 328 323 315 346 344 334 299 313 324 336 13 Mobile homes shipped 374 348 250 265 262 251 249 231 213 196 176 164 177 Merchant builder activity in one-family units 14 Number sold 886 907 903 875 827 914 860 924 940 890 1,007r 968 980 IS Number for sale at end of period1 300 326 312r 308 312 311 313 309 312 316 308r 308 307 Price of units sold (thousands of dollars)2 16 Median 152.5 160.0 169.0 165.0 159.9 168.6 165.0 171.5 176.0 174.0 161. lr 169.8 165.0 17 Average 181.9 195.8 206.4 200.1 197.7 202.4 200.4 208.4 215.0 210.9 208.4r 207.3 210.1 EXISTING UNITS (one-family) 18 Number sold 4,970 5,205 5,113 5,190 5,180 4,820 5,240 5,160 5,070 5,300 4,940 5,200 5,190 Price of units sold (thousands of dollars)2 19 Median 128.4 133.3 139.0 137.6 140.2 143.3 143.2 141.6 138.6 139.5 139.7 137.1 138.6 20 Average 159.1 168.3 176.2 176.0 178.9 177.7 183.0 178.6 176.9 176.5 178.5 175.8 174.6 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 710,104 765,719 809,258 811,816 798,860 793,036 801,748 813,477 803,893 808,948 811,535 835,772 843,063 22 Private 550,983 592,037 624,613 629,820 624,383 619,046 616,918 625,317 618,738 624,580 625,141 643,319 651,575 23 Residential 314,058 348,584 359,315 367,653 363,756 355,196 350,783 351,682 348,076 348,998 350,679 359,890 368,762 24 Nonresidential 236,925 243,454 265,297 262,167 260,627 263,850 266,135 273,635 270,662 275,582 274,462 283,429 282,813 2b Industrial buildings 40,464 35,016 40,406 39,814 39,951 42,081 41,552 40,872 42,811 46,894 40,716 46,549 46,437 26 Commercial buildings 95,753 103,759 114,898 113,381 112,834 112,114 115,279 118,445 117,039 116,224 118,987 122,614 122,454 27 Other buildings 39,607 41,279 45,486 45,540 44,559 45,689 46,779 46,689 46,690 46,060 44,974 47,094 47,154 28 Public utilities and other 61,101 63,400 64,507 63,432 63,283 63,966 62,525 67,629 64,122 66,404 69,785 67,172 66,768 29 Public 159,121 173,682 184,645 181,995 174,477 173,990 184,830 188,160 185,155 184,368 186,393 192,452 191,488 30 Military 2,538 2,122 2,255 2,246 2,157 2,100 2,331 2,418 1,880 2,612 2,097 2,264 2,204 31 Highway 48,339 54,447 52,461 51,966 48,148 49,262 52,694 53,183 47,932 46,825 48,073 50,746 52,120 32 Conservation and development 5,421 6,002 6,026 5,363 5,832 4,875 5,629 6,158 6,989 5,603 6,330 7,385 7,665 33 Other 102,823 111,110 123,904 122,420 118,340 117,753 124,176 126,40) 128,354 129,328 129,893 132,057 129,499 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 2000 2001 2000 2001 MMMaaarrr... 22000000 22000011 222000000111''' MMaarr.. MMaarr.. June Sept. Dec. Mar. Nov. Dec. Jan. Feb. Mar. CONSUMER PRICES2 (1982-84=100) 1 All items 3.8 2.9 2.4 3.3 2.3 4.0 .2 .2 .6 .3 .1 176.2 ?. Food 2.0 3.1 1.9 4.1 2.1 4.1 -.1 .5 .3 .5 .2 171.7 3 Energy items 24.2 6.0 5.6 7.9 3.8 6.0 .2 .3 3.9 -.2 -2.1 129.5 4 All items less food and energy 2.4 2.7 2.2 2.9 2.0 3.5 .3 .1 .3 .3 .2 185.3 5 Commodities 1.0 .6 -.6 1.7 .0 1.4 .2 -.1 .1 .3 -.1 146.2 6 Services 3.1 3.5 3.4 3.2 3.2 4.2 .3 .2 .4 .3 .3 207.7 PRODUCER PRICES (1982=100) 7 Finished goods 4.3 3.1 2.3 2.0 2.9 4.9 .1 ,r 1.1 .1 -.1 141.0 8 Consumer foods 1.0 3.6 3.3 -1.2 2.4 10.6 .2 -.4 .8 .6 1.1 140.9 9 Consumer energy 27.7 9.7 6.5 6.4 13.8 10.8 ,5r 1.2r 3.8 1.4 -2.6 99.7 10 Other consumer goods 1.6 1.6 1.3 2.4 .3 2.9 ,lr -.R .8 -.4 .3 156.1 11 Capital equipment .6 .9 1.5 1.7 .3 .0 .R ,I .3 -.3 .0 139.7 Intermediate materials 12 Excluding foods and feeds 6.3 2.3 3.1 3.1 1.2 1.8 -.2 .2 ..88 -.1 --..22 113311..77 13 Excluding energy 3.2 1.0 2.7 .3 -.6 1.8 -.1 -,lr ..22 .1 .1 137.4 Crude materials 14 Foods 2.6 7.4 -7.3 -8.2 36.0 15.2 1.2' 3.5r 2.2 -1.6 33..00 110088..99 15 Energy 69.4 37.6 163.6 20.0 64.0 -31.0 -2.7r 9.8r 25.0 -23.3 -4.9 141.0 16 Other 16.2 -10.8 -11.9 -8.8 -10.2 -12.4 -2.r .r .5 -2.5 -1.3 134.6 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 • June 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 11999988 11999999 22000000 Q4 Ql Q2 Q3 Q4 GROSS DOMESTIC PRODUCT 1 Total 8,790.2 9,299.2 9,963.1 9,559.7 9,752.7 9,945.7 10,039.4 10,114.4 By source 2 Personal consumption expenditures 5,850.9 6.268.7 6,757.3 6,446.2 6,621.7 6,706.3 6,810.8 6,890.2 3 Durable goods 693.9 761.3 820.3 787.6 826.3 814.3 824.7 815.8 4 Nondurable goods 1,707.6 1,845.5 2,010.0 1,910.2 1,963.9 1,997.6 2,031.5 2,046.9 5 Services 3,449.3 3,661.9 3,927.0 3,748.5 3,831.6 3,894.4 3,954.6 4,027.5 6 Gross private domestic investment 1,549.9 1,650.1 1,832.7 1,723.7 1,755.7 1,852.6 1,869.3 1,853.3 / Fixed investment 1,472.9 1,606.8 1,778.2 1,651.0 1,725.8 1,780.5 1,803.0 1,803.5 8 Nonresidential 1,107.5 1,203.1 1,362.2 1,242.2 1,308.5 1,359.2 1,390.6 1,390.4 y Structures 283.2 285.6 324.2 290.4 308.9 315.1 330.1 342.8 10 Producers' durable equipment 824.3 917.4 1,038.0 951.8 999.6 1,044.1 1,060.5 1,047.6 II Residential structures 365.4 403.8 416.0 408.8 417.3 421.3 412.4 413.1 12 Change in business inventories 77.0 43.3 54.5 72.7 29.9 72.0 66.4 49.8 13 Nonfarm 76.4 43.6 55.8 71.8 32.4 72.2 67.5 51.0 14 Net exports of goods and services -151.5 -254.0 -370.7 -299.1 -335.2 -355.4 -389.5 -402.7 15 Exports 966.0 990.2 1,097.3 1,031.0 1,051.9 1,092.9 1,130.8 1,113.7 16 Imports 1,117.5 1,244.2 1,468.0 1,330.1 1,387.1 1,448.3 1,520.3 1,516.4 17 Government consumption expenditures and gross investment 1,540.9 1.634.4 1,743.7 1,688.8 1,710.4 1,742.2 1,748.8 1,773.6 18 Federal 540.6 568.6 595.2 591.6 580.1 604.5 594.2 602.0 iy State and local 1,000.3 1,065.8 1,148.6 1,097.3 1,130.4 1,137.7 1,154.6 1,171.6 By major type of product 20 Final sales, total 8,713.2 9,255.9 9,908.5 9,486.9 9,722.8 9,873.7 9,973.1 10,064.6 21 3,239.3 3,467.0 3,739.0 3.566.0 3,680.3 3,734.1 3,776.5 3,764.9 22 Durable 1,532.3 1,651.1 1,806.7 1,701.8 1,773.7 1,809.6 1,830.6 1,812.7 23 Nondurable 1,707.1 1,815.8 1,932.3 1,864.1 1,906.6 1,924.5 1,945.9 1,952.2 24 Services 4,673.0 4,934.6 5,254.1 5,050.3 5,135.2 5,231.4 5,281.6 5,368.0 25 Structures 800.9 854.3 915.6 870.7 907.4 908.2 915.0 931.7 26 Change in business inventories 77.0 43.3 54.5 72.7 29.9 72.0 66.4 49.8 27 Durable goods 45.8 27.2 37.2 47.5 20.7 48.3 39.2 40.7 28 Nondurable goods 31.2 16.1 17.3 25.2 9.2 23.7 27.2 9.0 MEMO 29 Total GDP in chained 1996 dollars 8,515.7 8,875.8 9,318.5 9,084.1 9,191.8 9,318.9 9,369.5 933.7 NATIONAL INCOME 30 Total 7,038.1 7,469.7 8,002.0 7,680.7 7,833.5 7,983.2 8,088.5 8,102.8 31 Compensation of employees 4,984.2 5,299.8 5,638.2 5,421.1 5,512.2 5,603.5 5,679.6 5,757.5 32 Wages and salaries 4,192.8 4,475.1 4,769.4 4,583.5 4,660.4 4,740.1 4,804.9 4,872.0 33 Government and government enterprises 692.7 724.4 760.9 734.5 749.9 760.2 765.4 768.2 34 Other 3,500.1 3,750.7 4,008.5 3,849.0 3,910.5 3,980.0 4,039.5 4,103.9 35 Supplement to wages and salaries 791.4 824.6 868.8 837.7 851.8 863.3 874.7 885.5 36 Employer contributions for social insurance 305.9 323.6 344.8 330.3 337.8 342.9 347.1 351.5 37 Other labor income 485.5 501.0 524.0 507.4 514.0 520.5 527.6 534.0 38 Proprietors' income' 620.7 663.5 710.4 689.6 693.9 709.5 724.8 713.2 3Y Business and professional' 595.2 638.2 687.8 657.9 674.8 688.1 693.1 695.2 40 Farm' 25.4 25.3 22.6 31.7 19.1 21.5 31.7 18.0 41 Rental income of persons" 135.4 143.4 140.0 146.2 145.6 140.8 138.1 135.4 42 Corporate profits' 815.0 856.0 946.2 893.2 936.3 963.6 970.3 914.7 43 Profits before tax3 758.2 823.0 925.6 870.7 920.7 942.5 945.) 894.1 44 Inventory valuation adjustment 17.0 -9.1 -12.9 -19.2 -25.0 -13.6 -4.5 -8.5 45 Capital consumption adjustment 39.9 42.1 33.5 41.6 40.6 34.7 29.7 29.1 46 Net interest 482.7 507.1 567.2 530.6 545.4 565.9 575.7 582.0 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 11999988 11999999 22000000 Q4 Ql Q2 Q3 Q4 PERSONAL INCOME AND SAVING 1 Total personal income 7,391.0 7,789.6 8,281.7 7,972.3 8,105.8 8,242.1 8,349.0 8,429.7 7 Wage and salary disbursements 4,190.7 4,470.0 4,769.4 4,578.3 4,660.4 4,740.1 4,804.9 4,872.0 Commodity-producing industries 1,038.6 1,089.2 1,153.2 1,111.2 1,130.9 1,147.1 1,161.4 1,173.3 4 Manufacturing 756.6 782.4 815.9 795.1 802.8 813.1 821.4 826.4 5 Distributive industries 949.1 1,020.3 1,107.3 1,049.4 1,070.9 1,095.7 1,118.1 1,144.4 6 Service industries 1,5)0.3 1,636.0 1,748.0 1,683.2 1,708.6 1,737.2 1,760.1 1,786.2 7 Government and government enterprises 692.7 724.4 760.9 734.5 749.9 760.2 765.4 768.2 8 Other labor income 485.5 501.0 524.0 507.4 514.0 520.5 527.6 534.0 9 Proprietors' income1 620.7 663.5 710.4 689.6 693.9 709.5 724.8 713.2 10 Business and professional1 595.2 638.2 687.8 657.9 674.8 688.1 693.1 695.2 11 Farm1 25.4 25.3 22.6 31.7 19.1 21.5 31.7 18.0 1? Rental income of persons2 135.4 143.4 140.0 146.2 145.6 140.8 138.1 135.4 n Dividends 351.1 370.3 396.6 380.2 386.9 392.6 399.7 407.2 14 Personal interest income 940.8 963.7 1,034.3 989.0 1.011.6 1,031.3 1,042.9 1.051.5 15 Transfer payments 983.0 1,016.2 1,067.8 1,027.4 1,046.9 1.066.1 1,074.2 1,084.0 16 Old-age survivors, disability, and health insurance benefits 578.0 588.0 622.4 592.8 607.9 624.3 627.2 630.4 17 LESS: Personal contributions for social insurance 316.2 338.5 360.7 345.9 353.4 358.8 363.1 367.6 18 EQUALS: Personal income 7,391.0 7,789.6 8,281.7 7,972.3 8,105.8 8,242.1 8,349.0 8,429.7 19 LESS: Personal tax and nontax payments 1,070.9 1,152.0 1,291.9 1,197.3 1,239.3 1,277.2 1,308.1 1,342.7 20 EQUALS: Disposable personal income 6,320.0 6,637.7 6.989.8 6,775.0 6,866.5 6,964.9 7,040.9 7,087.0 21 LESS: Personal outlays 6,054.7 6,490.1 6,998.3 6,674.1 6,855.6 6,944.3 7,054.7 7.138.6 22 EQUALS: Personal saving 265.4 147.6 -8.5 101.0 11.0 20.6 -13.8 -51.6 MEMO Per capita (chained 1996 dollars) 73 Gross domestic product 31,474.2 32,511.9 33,836.1 33,153.5 33,485.6 33,874.7 3333,,998844..33 3333,,998855..99 74 Personal consumption expenditures 20,988.5 21,900.4 22,855.1 22,266.4 22,635.5 22,757.7 22,959.1 23,058.3 25 Disposable personal income 22,672.0 23,191.0 23,640.0 23,404.0 23,472.0 23,639.0 23,732.0 23,718.0 26 Saving rate (percent) 4.2 2.2 -.1 1.5 .2 .3 -.2 -.7 GROSS SAVING 27 Gross saving 1,654.4 1,717.6 1,825.1 1,746.3 1,777.0 1,844.5 1,854.7 1,824.2 28 Gross private saving 1,375.7 1,343.5 1,297.1 1.331.4 1,279.2 1,328.8 1,319.2 1,261.2 79 Personal saving 265.4 147.6 -8.5 101.0 11.0 20.6 -13.8 -51.6 30 Undistributed corporate profits' 218.9 229.4 265.0 241.7 262.7 278.5 279.6 239.4 31 Corporate inventory valuation adjustment 17.0 -9.1 -12.9 -19.2 -25.0 -13.6 -4.5 -8.5 Capital consumption allowances 37 Corporate 624.3 676.9 739.4 694.8 711.5 731.1 775500..00 776655..22 33 Noncorporate 265.1 284.5 301.1 288.7 294.1 298.7 303.3 308.2 34 Gross government saving 278.7 374.1 528.0 414.9 497.7 515.7 535.5 563.0 35 Federal 137.4 217.3 351.6 238.4 333.0 339.9 354.1 379.3 36 Consumption of fixed capital 88.4 92.8 99.8 95.0 97.2 98.9 100.8 102.3 37 Current surplus or deficit (-), national accounts 49.0 124.4 251.8 143.3 235.8 240.9 253.3 277.0 38 State and local 141.3 156.8 176.4 176.6 164.7 175.8 181.4 183.7 39 Consumption of fixed capital 99.5 106.8 116.8 109.9 112.7 115.6 118.2 120.6 40 Current surplus or deficit (-), national accounts 41.7 50.0 59.6 66.6 52.0 60.1 63,2 63.1 41 Gross investment 1,629.6 1,645.6 1,741.3 1,678.5 1,699.3 1,771.9 1,752.8 1,741.3 47 Gross private domestic investment 1,549.9 1,650.1 1,832.7 1,723.7 1.755.7 1,852.6 1,869.3 1,853.3 43 Gross government investment 278.8 308.7 336.6 324.4 334.2 331.9 333.6 346.5 44 Net foreign investment -199.1 -313.2 -427.9 -369.6 -390.7 -412.5 -450.1 -458.5 45 Statistical discrepancy -24.8 -71.9 -83.7 -67.8 -77.7 -72.5 -101.8 -82.9 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Sur\>ey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • June 2001 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 1999 2000 IItteemm ccrreeddiittss oorr ddeebbiittss 11999988 11999999 22000000 Q4 Qi Q2 Q3 Q4 1 Balance on current account -217,138 -331,479 -435,377 -96,223 -101,768 -105,239 -113,110 -115,266 2 Balance on goods and services -166,898 -264,971 -368,480 -76,280 -85,260 -88,745 -95,630 -98,853 3 Exports 932,977 956,242 1,069,531 249,653 255,936 265,925 275,411 272,256 4 Imports -1,099,875 -1,221,213 -1,438,011 -325,933 -341,196 -354,670 -371,041 -371,109 5 Income, net -6,211 -18,483 -13,656 -5,683 -4,421 -4,160 -4,531 -541 6 Investment, net -1,036 -13,102 -8,142 -4,319 -3,050 -2,769 -3,184 864 7 Direct 67,728 62,704 83,776 16,275 17,026 18,973 21,537 26,241 8 Portfolio -68,764 -75,806 -91,918 -20,594 -20,076 -21,742 -24,721 -25,377 9 Compensation of employees -5,175 -5,381 -5,514 -1,364 -1,371 -1,391 -1,347 -1,405 10 Unilateral current transfers, net -44,029 -48,025 -53,241 -14,260 -12,087 -12,334 -12,949 -15,872 11 Change in U.S. government assets other than official reserve assets, net (increase, —) -422 2,751 -715 3,711 -131 -574 114 -124 12 Change in U.S. official reserve assets (increase, —) -6,783 8,747 -290 1,569 -554 2,020 -346 -1,410 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -147 10 -722 -178 -180 -180 -182 -180 15 Reserve position in International Monetary Fund -5,119 5,484 2,308 1,800 -237 2,328 1,300 -1,083 16 Foreign currencies -1,517 3,253 -1,876 -53 -137 -128 -1,464 -147 17 Change in U.S. private assets abroad (increase, -) -328,231 -441,685 -552,344 -120,162 -178,262 -93,859 -93,188 -187,032 18 Bank-reported claims"" -35,572 -69.862 -110,173 -45,304 -55,511 18,320 -5,964 -67,018 19 Nonbank-reported claims -10,612 -92,328 -156,988 -24,428 -52,563 -36,507 -17,807 -50,111 20 U.S. purchases of foreign securities, net -135,995 -128,594 -123,606 -17,150 -27,236 -38,196 -33,242 -24,932 21 U.S. direct investments abroad, net -146,052 -150,901 -161,577 -33,280 -42,952 -37,476 -36,175 -44,971 22 Change in foreign official assets in United States (increase, +) -20,127 42.864 35,909 27,495 22,015 6,346 11,901 -4,353 23 U.S. Treasury securities -9,921 12,177 -11,377 5,122 16,198 -4,000 -9,001 -14,574 24 Other U.S. government obligations 6,332 20,350 40,909 6,730 8,107 10,334 14,272 8,196 25 Other U.S. government liabilities2 -3,550 -3,255 -2,540 89 -644 -781 -620 -495 26 Other U.S. liabilities reported by U.S. banks" -9,501 12,692 5,790 14,427 -2,577 -111 6,938 1,540 27 Other foreign official assets3 -3,487 900 3,127 1,127 931 904 312 980 28 Change in foreign private assets in United States (increase, +) 502,362 710,700 916,521 157,072 214,623 238,906 183,424 279,564 29 U.S. bank-reported liabilities4 39,769 67,403 79,485 19,618 -8,824 46,943 -1,394 42,760 30 U.S. nonbank-reported liabilities -7,001 34,298 105,728 792 58,061 24,038 1,506 22,123 31 Foreign private purchases of U.S. Treasury securities, net 48,581 -20,464 -52,206 -17,191 -9,248 -20,597 -12,513 -9,848 32 U.S. currency flows 16,622 22,407 1,129 12,213 -6,847 989 757 6,230 33 Foreign purchases of other U.S. securities, net 218,075 331,523 465,858 92,250 132,416 87,107 122,387 123,948 34 Foreign direct investments in United States, net 186,316 275,533 316,527 49,390 49,065 100,426 72,681 94,351 35 Capital account transactions, net5 637 -3,500 680 -3,993 166 170 167 177 36 Discrepancy 69,702 11,602 35,616 30,531 43,911 -47,770 11,038 28,444 37 Due to seasonal adjustment 5,738 5,873 -2,361 -9,215 5,710 38 Before seasonal adjustment 69,702 11,602 35,616 24,793 38,038 -45,409 20,253 22,734 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) -6,783 8,747 -290 1,569 -554 2,020 -346 -1,410 40 Foreign official assets in United States, excluding line 25 (increase, +) -16,577 46,119 38,449 27,406 22,659 7,127 12,521 -3,858 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -11,531 1,331 11,989 -1,673 6,109 1,913 3,803 164 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38-^-1. and dealers. 2. Associated primarily with military sales contracts and other transactions arranged with 5. Consists of capital transfers (such as those of accompanying migrants entering or or through foreign official agencies. leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced 3. Consists of investments in U.S. corporate stocks and in debt securities of private nonfinancial assets. corporations and state and local governments. SOURCE. U.S. Department of Commerce. Bureau of Economic Analysis, Survey of Current 4. Reporting banks included all types of depository institutions as well as some brokers 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 2001 IItteemm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan.r Feb.P 1 Goods and services, balance -166,897 -264,971 -368,865 -29,951 -33,546 -33,168 -32,875 -33,199 -33,251 -26,987 2 Merchandise -246,853 -345,559 -449,853 -36,750 -39,395 -39,954 -39,124 -39,569 -39,490 -33,354 3 Services 79,956 80,588 80,988 6,799 5,849 6,786 6,249 6,370 6,239 6,367 4 Goods and services, exports 932,977 956,242 1,068,741 92,883 92,793 91,425 90,825 89,201 89,580 90,458 5 Merchandise 670,324 684,358 772,514 67,952 67,815 66,325 65,850 64,114 64,578 65,243 6 Services 262,653 271,884 296,227 24,931 24,978 25,100 24,975 25,087 25,002 25,215 7 Goods and services, imports -1,099,875 -1,221,213 -1,437,606 -122,834 -126,339 -124,593 -123,700 -122,400 -122,831 -117,445 8 Merchandise -917,178 -1,029,917 -1,222,367 -104.702 -107,210 -106,279 -104,974 -103,683 -104,068 -98,597 9 Services -182,697 -191,296 -215,239 -18,132 -19,129 -18,314 -18,726 -18,717 -18,763 -18,848 1. Data show monthly values consistent with quarterly figures in the U.S. balance of SOURCE. FT900, U.S. Department of Commerce, Bureau of the Census and Bureau of payments accounts. Economic Analysis. 3.12 U.S. RESERVE ASSETS Millions of dollars, end of period 2000 2001 AAsssseett 11999977 11999988 11999999 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.P 1 Total 69,954 81,761 71,516 66,256 65,257 65,523 67,647 67,542 66,486 64,222 64,731 2 Gold stock1 11,047 11,046 11,048 11,046 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 10,316 10,169 10,369 10,539 10,497 10,641 10,379 10,420 4 Reserve position in International Monetary Fund2 18,071 24,111 17,950 13,685 13,528 13,491 14,824 15,079 14,107 13,777 13,816 5 Foreign currencies4 30,809 36,001 32,182 31,209 30,514 30,617 31,238 30,920 30,692 29,020 29,449 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 2001 AAsssseett 11999977 11999988 11999999 Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr.p 1 Deposits 457 167 71 139 115 104 215 199 196 70 101 Held in custody 2 U.S. Treasury securities2 620,885 607,574 632,482 611,641 595,591 591,071 594,094 594,694 603,906 609,440 585,710 3 Earmarked gold3 10,763 10,343 9,933 9,620 9,565 9,505 9,451 9,397 9,343 9,289 9,235 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 • June 2001 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2000 2001 IItteemm 11999988 11999999 Aug. Sept. Oct. Nov. Dec. Jan. Feb.P 1 Total1 759,928 806,318 850,445 849,206 850,116 849,049 845,926 867,344 867,384 By type •> Liabilities reported by banks in the United States2 125,883 138,847 138,259 143,670 146,452 147,631 144,650 155,294 157,492 3 U.S. Treasury bills and certificates3 134,177 156,177 159,781 155,498 155,101 155,061 153,010 158,967 155,667 U.S. Treasury bonds and notes 4 Marketable 432,127 422,266 433,639 427,013 419,863 414,896 415,964 418,190 418,857 5 Nonmarketable4 6,074 6,111 5,213 5,247 5,280 5,313 5,348 5,383 5,415 6 U.S. securities other than U.S. Treasury securities5 61,667 82,917 113,553 117,778 123,420 126,148 126,954 129,510 129,953 By area 7 Europe1 256,026 244,805 256.275 258,138 264,131 262,099 253,592 259,829 257,969 8 Canada 10,552 12,503 12,692 12,821 12,632 11,744 12,394 11,220 10,794 9 Latin America and Caribbean 79,503 73,518 76,983 77,568 77,526 78,742 76,812 80,577 81,207 10 Asia 400,631 463,703 490,110 486,890 481,344 481,094 488,168 499,924 501,670 11 Africa 10,059 7,523 8,707 8,466 8,323 8,012 9,165 8,965 9,586 12 Other countries 3,157 4,266 5,678 5,323 6,160 7,358 5,795 6,829 6,158 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 coiporations and federally sponsored agencies, and 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official U.S. corporate stocks and bonds. institutions of foreign countries. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of department by banks (including Federal Reserve Banks) and securities dealers in the United zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning States, and on the 1994 benchmark survey of foreign portfolio investment in the United March 1988, 20-year maturity issue and beginning March 1990, 30-year maturity issue; States. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States1 Payable in Foreign Currencies Millions of dollars, end of period 2000 IItteemm 11999977 11999988 11999999 Mar. June Sept. Dec. 1 Banks' liabilities 117,524 101,125 88,537 85,649 85,842 78,852 76,120 2 Banks' claims 83,038 78,162 67,365 63,492 67,862 60,355 56,867 3 Deposits 28,661 45,985 34,426 32,967 31,224 25,847 22,907 4 Other claims 54,377 32,177 32,939 30,525 36,638 34,508 33,960 5 Claims of banks' domestic customers2 8,191 20,718 20,826 21,753 18,802 19.123 29,782 1. Data on claims exclude foreign currencies held by U.S. monetary authorities. 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2000 2001 IItteemm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb.? BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,347,837 1,408,740 1,523,669 1,444,533 1,453,643 1,511,173 1,525,179 1,523,669 1,568,401 1,546,874 2 Banks' own liabilities 884,939 971,536 1,049,070 1,013,471 1,027,138 1,074,575 1,073,536 1,049,070 1,085,661 1,063,041 3 Demand deposits 29,558 42,884 33,553 30,101 31,964 29,500 31,701 33,553 31,977 38,105 4 Time deposits2 151,761 163,620 191,791 184,821 184,823 185,454 192,422 191,791 187,385 192,538 Other3 140,752 155,853 173,233 174,021 174,473 194,659 187,066 173,233 202,150 198,232 6 Own foreign offices4 562,868 609,179 650,493 624,528 635,878 664,962 662,347 650,493 664,149 634,166 7 Banks' custodial liabilities5 462,898 437,204 474,599 431,062 426,505 436,598 451,643 474,599 482,740 483,833 8 U.S. Treasury bills and certificates6 183,494 185,676 177,742 180,925 174,604 173,984 173,896 177,742 182,276 179,263 9 Short-term agency securities7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 56,565 61,333 10 Other negotiable and readily transferable instruments8 141,699 132,617 144,858 119.212 120,296 129,753 132,453 144,858 86,733 85,438 11 Other 137,705 118,911 151,999 130,925 131,605 132,861 145,294 151,999 157,166 157,799 12 Nonmonetary international and regional organizations9 . . 11,883 15,276 12,560 14,630 15,658 17,104 17,074 12,560 10,938 11,596 13 Banks' own liabilities 10,850 14,357 12,158 14,377 15,404 16,751 16,676 12,158 10,595 11,220 14 Demand deposits 172 98 41 26 19 48 30 41 327 19 15 Time deposits2 5,793 10,349 6,264 9,062 7,627 5,918 6,542 6,264 5,641 4,984 16 Other3 4,885 3,910 5,853 5,289 7,758 10,785 10,104 5,853 4,627 6,217 17 Banks' custodial liabilities5 1,033 919 402 253 254 353 398 402 343 376 18 U.S. Treasury bills and certificates6 636 680 252 217 223 215 249 252 294 248 19 Short-term agency securities7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 26 108 20 Other negotiable and readily transferable instruments8 397 233 149 26 26 138 147 149 23 15 21 Other 0 6 1 10 5 0 2 1 0 5 77 Official institutions10 260,060 295.024 297,660 298,040 299,168 301,553 302,692 297,660 314,261 313,159 23 Banks' own liabilities 80,256 97,615 97,052 92,255 95,709 102,654 102,110 97,052 103,446 101,732 74 Demand deposits 3,003 3,341 3,950 4,573 5,213 4,361 4,702 3,950 4,014 6,783 75 Time deposits2 29,506 28,942 35,638 32,639 36,699 34,035 35,335 35,638 33,026 30,228 26 Other3 47,747 65,332 57,464 55,043 53,797 64,258 62,073 57,464 66,406 64,721 27 Banks' custodial liabilities5 179,804 197,409 200,608 205,785 203,459 198,899 200,582 200,608 210,815 211,427 28 U.S. Treasury bills and certificates6 134,177 156,177 153,010 159,781 155,498 155,101 155,061 153,010 158,967 155,667 29 Short-term agency securities7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 44,884 49,094 30 Other negotiable and readily transferable instruments8 44,953 41,182 47,360 45,644 47,660 43,753 44,828 47.360 5,837 6,010 31 Other 674 50 238 360 301 45 693 238 1,127 656 37 Banks" 885,336 900,379 981,552 920,591 926,474 963,643 973,539 981.552 1,008,148 986,886 33 Banks' own liabilities 676,057 728,492 789,052 753,503 761,767 797,391 794,924 789,052 809,779 790,203 34 Unaffiliated foreign banks 113,189 119,313 138,559 128,975 125,889 132,429 132,577 138,559 145,630 156,037 35 Demand deposits 14,071 17,583 15,532 11,959 12,918 12,160 12,834 15,532 14,297 12,600 36 Time deposits'* 45,904 48,140 67,498 62,841 59,958 64,301 68,828 67,498 70,896 79,211 37 Other3 53,214 53,590 55,529 54,175 53,013 55,968 50,915 55,529 60,437 64,226 38 Own foreign offices4 562,868 609,179 650,493 624,528 635,878 664,962 662,347 650,493 664,149 634,166 39 Banks' custodial liabilities5 209,279 171,887 192,500 167,088 164,707 166,252 178,615 192,500 198,369 196,683 40 U.S. Treasury bills and certificates6 35,359 16,796 15,919 12,251 10,667 9,972 10,285 15,919 14,484 13,895 41 Short-term agency securities7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7,439 7,783 42 Other negotiable and readily transferable instruments8 45,332 45,695 35,104 33,893 32,679 34,261 34,643 35,104 30,757 29,325 43 Other 128,588 109,396 141,477 120,944 121,361 122,019 133,687 141,477 145,689 145,680 44 Other foreigners 190,558 198,061 231,897 211,272 212,343 228,873 231,874 231,897 235,054 235,233 45 Banks' own liabilities 117,776 131,072 150,808 153,336 154,258 157,779 159,826 150,808 161,841 159,886 46 Demand deposits 12,312 21,862 14,030 13,543 13,814 12,931 14,135 14,030 13,339 18,703 47 Time deposits2 70,558 76,189 82,391 80,279 80,539 81,200 81,717 82,391 77,822 78,115 48 Other1 34,906 33,021 54,387 59,514 59,905 63,648 63,974 54,387 70,680 63,068 49 Banks' custodial liabilities5 72,782 66,989 81,089 57,936 58,085 71,094 72,048 81,089 73,213 75,347 50 U.S. Treasury bills and certificates6 13,322 12,023 8,561 8,676 8,216 8,696 8,301 8,561 8,531 9,453 51 Short-term agency securities7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4,216 4,348 52 Other negotiable and readily transferable instruments8 51,017 45,507 62,245 39,649 39,931 51,601 52,835 62,245 50,116 50,088 53 Other 8,443 9,459 10,283 9,611 9,938 10,797 10,912 10,283 10,350 11,458 MEMO 54 Negotiable time certificates of deposit in custody for foreigners 27,026 30,345 34,088 25,911 25,991 27,164 25,854 34,088 31,389 30,277 55 Repurchase agreements7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 93,821 93,163 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. Data available beginning January 2001. ble and readily transferable instruments." 8. Principally bankers acceptances, commercial paper, and negotiable time certificates of 3. Includes borrowing under repurchase agreements. deposit. 4. For U.S. banks, includes amounts owed to own foreign branches and foreign subsidiar- 9. Principally the International Bank for Reconstruction and Development, the Interies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory American Development Bank, and the Asian Development Bank. Excludes "holdings of agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists dollars" of the International Monetary Fund. principally of amounts owed to the head office or parent foreign bank, and to foreign 10. Foreign central banks, foreign central governments, and the Bank for International branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Settlements. 5. Financial claims on residents of the United States, other than long-term securities, held 11. Excludes central banks, which are included in "Official institutions." by or through reporting banks for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • June 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 2001 IItteemm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb.p AREA 56 Total, all foreigners 1,347,837 1,408,740 1,523,669 1,444,533 1,453,643 1,511,173 1,525,179 1,523,669 1,568,401 1346,874 57 Foreign countries 1,335,954 1,393,464 1,511,108 1,429,903 1,437,985 1,494,069 1,508,105 1,511,108 1,557,462 1,535,277 58 Europe 427,375 441,810 449,152 454,624 463,391 483,826 471,979 449,152 476,418 461,892 59 Austria 3,178 2,789 2,724 2,783 2,541 2,037 2,671 2,724 2,366 2,124 60 Belgium12 42,818 44,692 33,401 31,281 29,828 29,648 32,389 33,401 7,356 5,707 61 Denmark 1,437 2,196 3,001 3,689 3,429 3,001 3,531 3,001 3,391 4,182 62 Finland 1,862 1,658 1,412 1,618 1,512 1,418 1,874 1,412 1,155 1,667 63 France 44,616 49,790 37,840 42,723 39,693 41,736 43,534 37,840 48,385 44,875 64 Germany 21,357 24,753 35,535 25,893 26,212 28,633 27,084 35,535 30,250 30,173 65 Greece 2,066 3,748 2,013 3,455 3,331 3,445 3,344 2,013 1,888 1,963 66 Italy 7,103 6,775 5,079 5,566 5,959 5,594 5,521 5,079 4,997 5,070 67 Luxembourg n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 27,092 24,123 68 Netherlands 10,793 8,143 7,485 13,087 10,311 14,450 13,283 7,485 8,504 8,413 69 Norway 710 1,327 2,305 1,636 3,501 4,102 5,159 2,305 4,762 6,331 70 Portugal 3,236 2,228 2,404 2,144 2,244 2,262 2,379 2,404 2,571 2,625 71 Russia 2,439 5,475 19,020 14,252 15,970 17,260 20,022 19,020 17,233 19,029 72 Spain 15,781 10,426 7,801 8,791 8,421 9,270 6,900 7,801 8,129 8,240 73 Sweden 3,027 4,652 6,498 5,992 6,209 6,247 7,362 6,498 5,648 5,959 74 Switzerland 50,654 63,485 74,732 77,578 88,276 97,151 86,154 74,732 83,096 84,019 75 Turkey 4,286 7,842 7,548 7,999 8,173 8,492 4,525 7,548 7,783 5,391 76 United Kingdom 181,554 172,687 169,484 173,798 175,663 173,254 172,281 169,484 179,363 170,610 77 Channel Islands & Isle of Man13 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 406 498 78 Yugoslavia14 233 286 276 277 275 270 279 276 287 294 79 Other Europe and other former U.S.S.R.15 30,225 28,858 30,594 32,062 31,843 35,556 33,687 30,594 31,756 30,599 80 Canada 30,212 34,214 31,059 33,722 33,869 34,367 31,252 31,059 23,927 22,080 81 Latin America 121,327 117,495 121,719 119,261 120,099 121,417 121,353 121,719 118,930 121,289 82 Argentina 19,014 18,633 19,493 17,552 18,560 18,746 17,886 19,493 18,936 18,417 83 Brazil 15,815 12,865 10,953 12,351 11,537 10,204 11,663 10,953 10,542 11,473 84 Chile 5,015 7,008 5,895 5,296 5,346 5,105 5,327 5,895 5,647 5,955 85 Colombia 4,624 5,669 4,555 4,735 4,658 4,945 4,560 4,555 4,552 4,445 86 Ecuador 1,572 1,956 2,119 2,082 2,074 2,084 2,059 2,119 2,157 2,254 87 Guatemala 1,336 1,626 1,637 1,659 1,671 1,667 1,678 1,637 1,581 1,535 88 Mexico 37,157 30,717 33,157 33,291 33,878 36,054 33,856 33,157 33,723 35,370 89 Panama 3,864 4,415 4,292 3,561 3,661 3,788 3,980 4,292 3,615 3,885 90 Peru 840 1,142 1,435 1,065 1,091 1,153 1,194 1,435 1,355 1,459 91 Uruguay 2,486 2,386 3,006 2,541 2,567 2,512 2,944 3,006 2,798 2,844 92 Venezuela 19,894 20,192 24,779 23,909 23,997 24,288 25,963 24,779 26,996 26,475 93 Other Latin America16 9,710 10,886 10,398 11,219 11,059 10,871 10,243 10,398 7,028 7,177 94 Caribbean 433,539 461,200 580,562 510,847 513,720 533,961 560,281 580,562 601,776 590,720 95 Bahamas 118,085 135,811 189,454 173,061 167,671 178,113 176,823 189,454 186,180 185,562 96 Bermuda 6,846 7,874 9,695 8,157 8,100 8,730 8,404 9,695 9,487 8,278 97 British West Indies'7 302,486 312,278 374,107 321,573 331,097 340,926 368,175 374,107 n.a. n.a. 98 Cay men Islands17 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 384,280 376,040 99 Cuba 62 75 90 92 89 94 88 90 130 84 100 Jamaica 577 520 815 915 830 680 722 815 792 945 101 Netherlands Antilles 5,010 4,047 5,496 6,373 5,159 4,614 5,318 5,496 6,565 55,,553377 102 Trinidad and Tobago 473 595 905 676 774 804 751 905 797 888866 103 Other Caribbean16 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13,545 13.388 104 307,960 319,489 306,412 291,017 286,551 299,164 330011,,559955 330066,,441122 331155,,224455 331177,,331199 China 105 Mainland 13,441 12,325 16,538 11,769 11,830 13,719 15,835 16,538 27,451 31,654 106 Taiwan 12,708 13,603 17,690 14,675 15,140 18,289 17,630 17,690 19,865 18,629 107 Hong Kong 20,900 27,701 26,768 26,749 26,583 25,784 25,924 26,768 27,013 27,674 108 India 5,250 7,367 4,532 5,547 5,838 5,548 5,173 4,532 4,197 4,058 109 Indonesia 8,282 6,567 8,524 7,318 7,310 7,589 8,375 8,524 8,536 9,027 110 Israel 7,749 7,488 8,055 5,951 7,132 6,668 6,538 8,055 7,666 7,262 111 Japan 168,563 159,075 150,434 146,382 142,782 150,196 149,679 150,434 148,810 150,619 112 Korea (South) 12,524 12,988 7,967 8,819 9,043 6,684 6,689 7,967 7,155 6,273 113 Philippines 3,324 3,268 2,430 1,679 1,822 1,676 2,334 2,430 1,769 1,422 114 Thailand 7,359 6,050 3,129 3,504 3,330 3,178 3,477 3,129 3,157 3,405 115 Middle Eastern oil-exporting countries18 15,609 21,314 23,760 21,968 21,851 23,856 23,732 23,760 22,425 21,613 116 Other 32,251 41,743 36,585 36,656 33,890 35,977 36,209 36,585 37,201 35,683 117 8,905 9,468 10,836 9,607 9,821 9,663 9,515 10,836 10,552 10,984 118 Egypt 1,339 2,022 2,622 1,615 1,544 1,546 1,655 2,622 2,552 2,336 119 Morocco 97 179 139 109 112 121 100 139 157 139 120 South Africa 1,522 1,495 1,011 708 842 767 853 1,011 843 914 121 Congo (formerly Zaire) 5 14 4 7 5 4 4 4 10 10 122 Oil-exporting countries19 3,088 2,914 4,052 4,470 4,499 4,405 4,027 4,052 4,317 4,750 123 Other 2,854 2,844 3,008 2,698 2,819 2,820 2,876 3,008 2,673 2,835 124 Other Countries 6,636 9,788 11,368 10,825 10,534 11,671 12,130 11,368 10,614 10,993 125 Australia 5,495 8,377 10,090 9,825 9,507 10,562 10,961 10,090 8,854 9,519 126 New Zealand20 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 1,032 328 127 All other 1,141 1,411 1,278 1,000 1,027 1,109 1,169 1,278 728 1,146 128 Nonmonetary international and regional organizations .. 11,883 15.276 12,561 14,630 15,658 17,104 17,074 12,561 10,939 11,597 129 International21 10,221 12,876 11,288 13,118 14,387 16,133 16,068 11,288 9,024 10,811 130 Latin American regional22 594 1,150 740 1,146 888 582 523 740 1,493 223 131 Other regional23 1,068 1,250 533 366 383 389 483 533 422 534 12. Before January 2001, combined data reported for Belgium-Luxembourg. 18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 13. Before January 2001, data included in United Kingdom. Emirates (Trucial States). 14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 19. Comprises Algeria, Gabon, Libya, and Nigeria. 15. Includes the Bank for International Settlements and European Central Bank. Since 20. Before January 2001, included in "All other." December 1992, has included all parts of the former U.S.S.R. (except Russia) and Bosnia. 21. Principally the International Bank for Reconstruction and Development. Excludes Croatia, and Slovenia. "holdings of dollars" of the International Monetary Fund. 16. Before January 2000, "Other Latin America" and "Other Caribbean" were reported as 22. Principally the Inter-American Development Bank. combined "Other Latin America and Caribbean." 23. Asian, African, Middle Eastern, and European regional organizations, except the Bank 17. Beginning January 2001, Cayman Islands replaced British West Indies in the data for International Settlements, which is included in "Other Europe." series. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2000 2001 AArreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb.p 1 Total, all foreigners 734,995 793,139 911,879 813,193 856,474 879,626 882,419 911,879 962,479r 919,222 2 Foreign countries 731,378 788,576 907,193 809,416 851,609 874,403 878,579 907,193 959,252r 915,905 3 Europe 233,321 311,686 383,876 327,433 359,889 365,709 371,894 383,876 422,183r 407,006 4 Austria 1,043 2,643 2,941 1,956 2,584 2,809 2,681 2,941 3,664 2,927 5 Belgium2 7,187 10,193 5,540 5,843 6,368 6,044 5,060 5,540 4,635 5,321 6 Denmark 2,383 1,669 3,312 3,278 3,403 3,093 3,462 3,312 3,402 3,499 7 Finland 1,070 2,020 7.402 2,701 3,561 4,927 6,517 7,402 6,772 7,122 8 France 15,251 29.142 40.303 23,229 27,062 34,217 34,547 40,303 43,290 44,104 9 Germany 15,923 29,205 36,973 31,804 33,229 33,017 32,160 36,973 39,744r 39,375 10 Greece 575 806 658 557 516 628 876 658 526 466 11 Italy 7,284 8,496 7,629 7,358 6,215 6,482 6,738 7,629 6,310r 6,315 1? Luxembourg n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 2,825r 2,659 13 Netherlands 5,697 11,810 17,294 14,999 15,507 16,165 15,975 17,294 18,864 21,680 14 Norway 827 1,000 5,012 1,448 4,474 4,655 6,159 5,012 2,971 5,339 IS Portugal 669 1,571 1,382 1,273 1,480 1,574 1,249 1,382 1,109 1,312 16 Russia 789 713 517 666 643 647 663 517 518 561 17 Spain 5,735 3,796 2,848 3,566 3,208 3,360 2,593 2,848 3,808r 4,199 18 Sweden 4,223 3.264 9,301 8,761 8,501 8,504 8,815 9,301 10,353 10,131 19 Switzerland 46,874 79,158 82,383 87,172 100,345 103,818 107,986 82,383 102,545 97,186 70 Turkey 1,982 2,617 3,175 2,855 2,821 2,831 3,260 3,175 3,300 3,104 21 United Kingdom 106,349 115,971 148,875 123,360 132,503 122,829 125,223 148,875 156,809r 143,380 22 Channel Islands & Isle of Man3 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 670 832 23 Yugoslavia4 53 50 50 49 49 49 49 50 50 49 24 Other Europe and other former U.S.S.R.5 9,407 7,562 8,281 6,558 7,420 10,060 7,881 8,281 9,966r 7,203 25 Canada 47,037 37,206 40,068 37,934 37,618 38,648 39,291 40,068 41,655r 42,487 76 Latin America 79,976 74,040 76,614 72,499 72,664 73,692 74,399 76,614 74,460r 74,220 27 Argentina 9,552 10,894 11,546 10,597 10,840 11,166 11,468 11,546 11,317 11,612 78 Brazil 16,184 16,987 20,567 18.555 19,038 20,202 19,840 20,567 20,372 20,008 79 Chile 8,250 6,607 5,816 5,985 5,953 5,756 5,772 5,816 6,223 5,961 30 Colombia 6,507 4,524 4.370 3,953 3,851 3,846 3,938 4,370 3.816 3,941 31 Ecuador 1,400 760 635 607 623 639 629 635 563 584 3? Guatemala 1,127 1,135 1.246 1,277 1,226 1,245 1,247 1,246 1,364 1,176 33 Mexico 21,212 17,899 17.430 16,825 16,808 16,723 16,945 17,430 17,598r 17,918 34 Panama 3,584 3,387 2,935 2,882 2,781 2,668 2,839 2,935 2,775r 2,908 3 3 5 6 P U e r r u u g uay 3 1 , , 2 1 7 2 5 6 2,5 8 2 0 9 1 2, 6 8 7 0 5 8 2,41817 1 2,6 7 9 2 7 8 2,6 6 5 6 3 3 2,7 6 1 7 3 7 2, 6 8 7 0 5 8 2,6 64 8 1 9 2, 4 6 5 7 5 3 37 Venezuela 3,089 3,494 3,520 3,410 3,390 3,321 3,451 3,520 3,306r 3,264 38 Other Latin America6 4,670 5,023 5,066 5,144 4,729 4,810 4,880 5,066 3,796r 3,720 39 Caribbean 262,678 281,128 319,512 282,931 290,974 300,805 301,544 319,512 321,115r 299,682 40 Bahamas 96,455 99,066 114,090 95,577 99,278 100,445 96,718 114,090 109,275 101,266 41 Bermuda 5,011 8,007 9,343 4,684 6,265 8,426 8,324 9,343 8,673r 7,138 42 British West Indies7 153,749 167,189 189,315 175,936 178,744 184,812 188,994 189,315 n.a. n.a. 43 Caymen Islands7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 188,377r 177,854 44 Cuba 0 0 0 3 0 0 0 0 117 0 4 4 6 5 N Ja e m th a e ic rl a a nds Antilles 6,7 2 7 39 9 5,9 2 8 9 2 5 5,8 3 0 5 1 5 5, 3 8 0 0 5 4 5, 3 7 3 7 7 0 6,1 3 5 7 8 9 6,5 3 5 5 4 5 5,8 3 0 5 1 5 9 3 ,0 57 1 1' 7,1 3 5 3 6 1 47 Trinidad and Tobago 445 589 608 622 580 585 599 608 658 663 48 Other Caribbean6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4,581r 5,274 49 98,607 75,143 78,762 79,028 81,584 87,682 83,359 78,762 90,332r 81,896 China 50 Mainland 1,261 2,110 1,606 1,601 1,519 1,912 1,644 1,606 1,562' 1,530 51 Taiwan 1,041 1,390 2,247 790 2,475 3,691 2,483 2,247 1,037 1,365 52 Hong Kong 9,080 5,903 6,715 5,403 6,019 6,540 6,454 6,715 7,458' 8,506 53 India 1,440 1,738 2,178 2,038 2,006 1,787 1,736 2,178 1,886' 1,700 54 Indonesia 1,942 1,776 1,914 1,880 1,982 2,009 1,958 1,914 2,075 1,987 55 Israel 1,166 1.875 2,729 2,281 1,116 1,551 1,911 2,729 2,343 3,249 56 Japan 46,713 28,641 35,109 32,499 35,240 35,773 36,467 35,109 38,901 34,780 57 Korea (South) 8,289 9,426 7,784 16,924 14,375 18,589 16,189 7,784 18,736 14,147 58 Philippines 1,465 1,410 1,784 1,483 1,495 1,473 1,758 1,784 1,217 1,172 59 Thailand 1,807 1,515 1,381 1,059 1,071 1,046 1.221 1,381 1,170 1,244 60 Middle Eastern oil-exporting countries8 16,130 14,267 10,091 10,006 9,961 9,867 8,487 10,091 10,549' 8,748 61 Other 8,273 5,092 5,224 3,064 4,325 3,444 3,051 5,224 3,398 3,468 6? 3,122 2,268 2,151 2,215 2,597 2,291 1,977 2,151 2,176 1.899 63 Egypt 257 258 201 186 176 201 184 201 170 271 64 Morocco 372 352 204 247 254 252 235 204 182 185 65 South Africa 643 622 366 358 372 322 341 366 492 544 66 Congo (formerly Zaire) 0 24 0 0 0 0 0 0 19 0 67 Oil-exporting countries9 936 276 471 616 913 656 342 471 582 153 68 Other 914 736 909 808 882 860 875 909 731 746 69 Other countries 6,637 7,105 6,210 7,376 6,283 5,576 6,115 6,210 7,331' 8,715 70 Australia 6,173 6,824 5,961 7,036 6,036 5,238 5,937 5,961 6,906r 8,377 71 New Zealand10 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 283 207 72 All other 464 281 249 340 247 338 178 249 142' 131 73 Nonmonetary international and regional organizations" . . 3,617 4,563 4,686 3,777 4.865 5,223 3,840 4,686 3,363 3,317 1. Reporting banks include all types of depository institutions as well as some brokers and 6. Before January 2001, "Other Latin America" and "Other Caribbean" were reported as dealers. combined "Other Latin America and Caribbean." 2. Before January 2001, combined data reported for Belgium-Luxembourg. 7. Beginning 2001, Cayman Islands replaced British West Indies in the data series. 3. Before January 2001, data included in United Kingdom. 8. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 4. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. Emirates (Trucial States). 5. Includes the Bank for International Settlements and European Central Bank. Since 9. Comprises Algeria, Gabon, Libya, and Nigeria. December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia, 10. Before January 2001, included in "All other." Croatia, and Slovenia. 11. Excludes the Bank for International Settlements, which is included in "Other Europe." Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A56 International Statistics • June 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 2001 TTyyppee ooff ccllaaiimm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Dec. Jan. Feb.p 1 Total 875,891 944,937 1,102,595 1,025,751 1,102,595 2 Banks' claims 734,995 793,139 911,879 813,193 856,474 879,626 882,419 911,879 958,982 916,183 3 Foreign public borrowers 23,542 35,090 38,327 41,459 40,437 49,693 49,373 38.327 52,987 54,215 4 Own foreign offices" 484,535 529,682 630,105 560,852 592,647 603,873 610,839 630,105 645,069 608,311 5 Unaffiliated foreign banks 106,206 97,186 99,622 78,562 87,144 83,035 82,962 99,622 102,166 98,845 6 Deposits 27,230 34,538 23,886 21.822 23,765 23,598 23,756 23,886 23,607 25,940 7 Other 78,976 62,648 75,736 56,740 63,379 59,437 59,206 75,736 78,559 72,905 8 All other foreigners 120,712 131,181 143.825 132,320 136.246 143,025 139,245 143,825 158,760 154,812 9 Claims of banks' domestic customers3 140,896 151,798 190,716 169,277 190,716 10 Deposits 79,363 88,006 99,846 87,108 99,846 11 Negotiable and readily transferable instruments4 47,914 51,161 78,147 70,334 78,147 12 Outstanding collections and other claims 13,619 12,631 12,723 11,835 12.723 MEMO 13 Customer liability on acceptances 4,520 4,553 4,258 4,701 4,258 14 Banks' loans under resale agreements5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 85,307 83,366 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 39,978 31,125 53,153 55,293 57,784 53,848 55,899 53,153 59,893 70,964 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. for quarter ending with month indicated. 3. Assets held by reporting banks in the accounts of their domestic customers. Reporting banks include all types of depository institution as well as some brokers and 4. Principally negotiable time certificates of deposit, bankers acceptances, and commercial dealers. paper. 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidiar- 5. Data available beginning January 2001. ies consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 6. 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. principally of amounts due from the head office or parent foreign bank, and from foreign 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 Maturity, by borrower and area* Sept. 1 Total 276,550 250,418 267,082 256,536 268,904 263,383 By borrower 2 Maturity of one year or less . . . 205,781 186,526 187,894 175,413 181,814 174,650 3 Foreign public borrowers 12,081 13,671 22,811 23,438 24,849 23,646 4 All other foreigners 193.700 172,855 165,083 151,975 156,965 151,004 5 Maturity of more than one year 70,769 63,892 79,188 81,123 87,090 88,733 6 Foreign public borrowers 8,499 9,839 12,013 12,850 15,900 16,238 7 All other foreigners 62,270 54,053 67,175 68,273 71,190 72,495 By area Maturity of one year or less 8 Europe 58,294 68,679 80,842 74,011 71,492 69,447 9 Canada 9,917 10,968 7,859 8,408 7,344 8,225 10 Latin America and Caribbean 97,207 81,766 69,498 62,912 66,096 65,881 11 Asia 33,964 18,007 21,802 23,003 29,091 23,791 12 Africa 2.211 1,835 1,122 957 1,520 1,594 13 All other3 4,188 5,271 6.771 6,122 6,271 5,712 Maturity of more than one year 14 Europe 13,240 14,923 22,951 23,952 25,417 27,589 15 Canada 2,525 3,140 3,192 3,126 3,323 3,261 16 Latin America and Caribbean 42,049 33,442 39,051 39.714 42,291 41,168 17 Asia 10.235 10,018 11,257 11,612 12,550 13,132 18 Africa 1,236 1,232 1,065 965 924 895 19 All other3 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

Nonbank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks' Billions of dollars, end of period 1998 1999 2000 AArreeaa oorr ccoouunnttrryy 11999966 11999977 Dec. Mar. June Sept. Dec. Mar. June Sept. Dec.p 1 Total 645.8 721.8 1051.6 981.9 930.4 930.4 934.5 949.4 989.6 952.9 1034.5 2 G-10 countries and Switzerland 228.3 242.8 217.7 208.9 224.0 208.2 232.3 278.5 320.0 286.9 312.6 3 Belgium and Luxembourg 11.7 11.0 10.7 15.6 16.2 15.7 14.3 14.2 13.8 13.0 14.3 4 France 16.6 15.4 18.4 21.6 20.7 20.0 29.0 27.1 32.6 29.1 29.9 Germany 29.8 28.6 30.9 34.7 32.1 37.4 38.7 37.3 31.5 37.8 45.2 6 Italy 16.0 15.5 11.5 17.8 16.4 15.0 18.1 20.0 20.8 18.8 21.3 7 Netherlands 4.0 6.2 7.8 10.7 13.3 11.7 12.3 17.1 16.1 17.6 18.7 8 Sweden 2.6 3.3 2.3 4.0 2.6 3.6 3.0 3.9 3.5 4.3 3.7 9 Switzerland 5.3 7.2 8.5 7.8 8.3 8.8 10.3 10.1 13.8 10.9 13.5 10 United Kingdom 104.7 113.4 85.4 56.2 74.7 52.3 68.2 107.8 144.3 118.7 125.9 11 Canada 14.0 13.7 16.8 15.9 17.1 17.9 16.3 17.5 18.3 18.7 16.9 12 Japan 23.7 28.6 25.4 24.6 22.6 25.7 22.1 23.5 25.4 18.1 23.1 13 Other industrialized countries 66.1 65.5 69.0 80.1 79.7 71.7 68.4 62.8 75.2 73.8 75.3 14 Austria 1.1 1.5 1.4 2.8 2.8 3.0 3.5 2.6 2.8 3.5 4.1 15 Denmark 1.5 2.4 2.2 3.4 2.9 2.1 2.6 1.5 1.2 1.8 1.9 lfi Finland .8 1.3 1.4 1.5 .9 .9 .9 .8 1.2 2.8 1.5 17 Greece 6.7 5.1 5.9 6.5 5.9 6.6 6.0 5.7 6.8 6.4 8.3 18 Norway 8.0 3.6 3.2 3.1 3.0 3.8 3.3 3.0 4.6 8.5 8.3 19 Portugal .9 .9 1.4 1.4 1.2 1.2 1.0 1.0 2.0 1.5 2.0 20 Spain 13.3 12.6 13.7 15.7 16.6 15.1 12.1 11.3 12.2 10.5 10.6 21 Turkey 2.7 4.5 4.8 5.2 4.9 4.7 4.8 5.1 5.6 5.6 6.0 22 Other Western Europe 4.9 8.3 10.4 10.2 10.3 9.2 6.8 8.3 8.0 8.4 6.7 23 South Africa 2.0 2.2 4.4 4.8 4.7 4.0 3.8 4.8 4.5 4.2 3.7 24 Australia 24.0 23.1 20.3 25.4 26.6 21.1 23.5 18.6 26.3 20.5 22.2 25 OPEC2 19.8 26.0 27.1 26.2 26.2 30.1 31.4 28.9 32.3 31.8 29.6 26 Ecuador 1.1 1.3 1.3 1.2 1.1 .9 .8 .7 .7 .6 .6 27 Venezuela 2.4 2.5 3.2 3.5 3.2 3.0 2.8 3.0 2.9 2.9 2.5 28 Indonesia 5.2 6.7 4.7 4.5 5.0 4.4 4.2 3.9 4.1 4.4 4.6 29 Middle East countries 10.7 14.4 17.0 16.7 16.5 21.4 23.1 21.1 24.0 22.7 21.1 30 African countries .4 1.2 1.0 .4 .5 .5 .5 .2 .7 1.2 .8 31 Non-OPEC developing countries 130.3 139.2 143.4 146.4 148.6 144.6 149.4 154.8 158.3 149.6 145.7 Latin America 3? Argentina 14.3 18.4 23.1 24.4 22.8 22.8 23.2 22.4 21.6 21.4 21.4 33 Brazil 20.7 28.6 24.7 24.2 25.2 23.5 27.7 28.1 28.3 28.5 28.8 34 Chile 7.0 8.7 8.3 8.6 8.2 7.7 7.4 8.2 8.1 7.4 7.6 35 Colombia 4.1 3.4 3.2 3.3 3.1 2.7 2.5 2.5 2.4 2.4 2.4 36 Mexico 16.2 17.4 18.9 19.7 18.5 19.4 18.7 18.3 20.5 17.5 15.7 37 Peru 1.6 2.0 2.2 2.2 2.1 1.8 1.7 1.9 2.1 2.1 2.0 38 Other 3.3 4.1 5.4 5.3 5.5 5.5 5.9 6.5 6.7 6.3 6.5 Asia China 39 Mainland 2.5 3.2 3.0 5.0 5.3 3.3 3.6 4.6 3.8 3.4 2.9 40 Taiwan 10.3 9.5 13.3 11.8 12.6 12.3 12.0 12.6 12.6 12.8 10.8 41 India 4.3 4.9 5.5 5.5 6.7 7.0 7.7 7.9 8.2 5.8 9.1 42 Israel .5 .7 1.1 1.1 2.0 1.0 1.8 3.3 1.5 1.1 2.7 43 Korea (South) 21.5 15.6 13.7 13.7 15.3 16.0 15.2 17.4 21.2 21.0 15.1 44 Malaysia 6.0 5.1 5.6 5.9 6.0 6.1 6.1 6.5 6.8 6.9 7.1 45 Philippines 5.8 5.7 5.1 5.4 5.7 5.8 6.2 5.3 5.3 4.7 5.1 46 Thailand 5.7 5.4 4.7 4.5 4.2 4.0 4.1 4.3 4.0 3.9 4.0 47 Other Asia 4.1 4.3 2.9 3.0 2.8 2.9 2.9 2.6 2.5 2.3 2.4 Africa 48 Egypt .7 .9 1.3 1.4 1.4 1.3 1.4 1.4 1.3 1.1 1.1 49 Morocco .7 .6 .5 .5 .5 .5 .4 .3 .3 .4 .3 50 Zaire .1 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .9 .8 1.0 .9 1.0 1.0 1.0 .9 .9 .8 .7 52 Eastern Europe 6.9 9.1 5.5 6.8 5.7 5.4 5.2 6.3 9.4 9.0 10.1 53 Russia4 3.7 5.1 2.2 2.0 2.1 2.0 1.6 1.7 1.5 1.4 1.0 54 Other 3.2 4.0 3.3 4.8 3.7 3.4 3.6 4.7 7.9 7.6 9.1 55 Offshore banking centers 135.1 140.2 93.9 83.0 66.0 79.1 59.9 42.0 52.4 50.6 69.9 56 Bahamas 20.5 24.2 35.4 22.0 10.4 18.2 13.7 2.4 .5 .6 6.9 57 Bermuda 4.5 9.8 4.6 3.9 5.7 8.2 8.0 7.3 6.3 6.3 9.0 58 Cayman Islands and other British West Indies 37.2 43.4 12.8 13.9 7.2 6.3 1.3 .0 5.1 5.9 14.6 59 Netherlands Antilles 26.1 14.6 2.6 2.7 1.3 9.1 1.7 2.5 2.6 1.9 1.9 60 Panama5 2.0 3.1 3.9 3.9 3.9 3.9 3.9 3.4 3.3 2.5 3.2 61 Lebanon .1 .1 .1 .1 .1 .2 .1 .1 .1 .1 .1 62 Hong Kong, China 27.9 32.2 23.3 22.8 22.0 22.4 21.0 22.2 20.7 20.6 18.8 63 Singapore 16.7 12.7 11.1 13.5 15.2 10.6 10.1 4.1 13.6 12.7 15.2 64 Other6 .1 .1 .2 .2 .1 .2 .1 .1 .1 .1 .2 65 Miscellaneous and unallocated7 59.6 99.1 495.1 430.4 380.2 391.2 387.9 376.1 342.1 351.1 391.2 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 • June 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 11999977 11999988 11999999 Sept. Dec. Mar. June Sept. Dec. 1 Total 57,382 46,570 53,044 52,979 53,044 53,489 70,534 76,644 74,107 2 Payable in dollars 41,543 36,668 37,605 36.296 37,605 35,614 47,864 51,451 49,424 3 Payable in foreign currencies 15,839 9,902 15,415 16,683 15,415 17,875 22,670 25,193 24,683 By type 4 Financial liabilities 26,877 19,255 27,980 27,422 27,980 29,180 44,068 49,895 47,419 5 Payable in dollars 12,630 10,371 13,883 12,231 13,883 12,858 22,803 26,159 25,246 6 Payable in foreign currencies 14,247 8,884 14,097 15,191 14,097 16,322 21,265 23,736 22,173 7 Commercial liabilities 30,505 27,315 25,064 25,557 25,064 24,309 26,466 26,749 26,688 8 Trade payables 10,904 10.978 12,857 12,651 12,857 12,401 13,764 13,918 14,305 9 Advance receipts and other liabilities 19,601 16,337 12,207 12,906 12,207 11,908 12,702 12,831 12,383 10 Payable in dollars 28,913 26,297 23,722 24,065 23,722 22,756 25,061 25,292 24,178 11 Payable in foreign currencies 1,592 1,018 1,318 1,492 1,318 1,553 1,405 1,457 2,510 By area or country Financial liabilities 12 Europe 18,027 12,589 23,241 21,695 23,241 24,050 30,332 36,175 34,172 13 Belgium and Luxembourg 186 79 31 50 31 4 163 169 147 14 France 1,425 1,097 1,659 1,675 1,659 1,849 1,702 1,299 1,480 15 Germany 1,958 2,063 1,974 1,712 1,974 1,880 1,671 2,132 2,168 16 Netherlands 494 1,406 1,996 2,066 1,996 1,970 2,035 2,040 2,016 17 Switzerland 561 155 147 133 147 97 137 178 104 18 United Kingdom 11,667 5,980 16,521 15,096 16,521 16,579 21,463 28,601 26,362 19 Canada 2,374 693 284 344 284 313 714 249 411 20 Latin America and Caribbean 1,386 1,495 892 1,180 892 846 2,874 3,447 4,125 21 Bahamas 141 7 1 1 1 1 78 105 6 22 Bermuda 229 101 5 26 5 1 1,016 1,182 1,739 23 Brazil 143 152 126 122 126 128 146 132 148 24 British West Indies 604 957 492 786 492 489 463 501 406 25 Mexico 26 59 25 28 25 22 26 35 26 26 Venezuela 1 2 0 0 0 0 0 0 2 27 4,387 3,785 3,437 3,622 3,437 3,275 9,453 9,320 7,965 28 Japan 4,102 3,612 3,142 3,384 3,142 2,985 6,024 4,782 6,216 29 Middle Eastern oil-exporting countries1 27 0 4 3 4 4 5 7 11 30 Africa 60 28 28 31 28 28 33 48 52 31 Oil-exporting countries2 0 0 0 0 0 0 0 0 0 32 All other3 643 665 98 550 98 668 662 656 694 Commercial liabilities 33 Europe 10,228 10,030 9,262 9,265 9,262 8,646 9,293 9,411 9,625 34 Belgium and Luxembourg 666 278 140 128 140 78 178 201 293 35 France 764 920 672 620 672 539 711 716 979 36 Germany 1,274 1,392 1,131 1,201 1,131 914 948 1,023 1,046 37 Netherlands 439 429 507 535 507 648 562 424 299 38 Switzerland 375 499 626 593 626 536 565 647 502 39 United Kingdom 4,086 3,697 3,071 3,175 3,071 2,661 2,982 2,951 2,845 40 Canada 1,175 1.390 1,775 1,753 1,775 2,024 2,053 1,889 1,932 41 Latin America and Caribbean 2,176 1,618 2,310 1,957 2,310 2,286 2,607 2,443 2,381 42 Bahamas 16 14 22 24 22 9 10 15 31 43 Bermuda 203 198 152 178 152 287 300 377 281 44 Brazil 220 152 145 120 145 115 119 167 114 45 British West Indies 12 10 48 39 48 23 22 19 76 46 Mexico 565 347 887 704 887 805 1,073 1,079 841 47 Venezuela 261 202 305 182 305 193 239 124 284 48 14,966 12.342 9,886 10,428 9,886 9,681 10,965 11,133 10,974 49 Japan 4,500 3,827 2,609 2,689 2,609 2,274 2,200 1,998 2,752 50 Middle Eastern oil-exporting countries1 3,111 2,852 2,551 2,618 2,551 2,308 3,489 3,706 2,831 51 Africa 874 794 950 959 950 943 950 1,220 940 52 Oil-exporting countries2 408 393 499 584 499 536 575 663 475 53 Other3 1,086 1,141 881 1,195 881 729 598 653 836 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 11999977 11999988 11999999 Sept. Dec. Mar. June Sept. Dec. 1 Total 68,128 77,462 76,669 67,566 76,669 84,266 80,725 94,803 90,951 2 Payable in dollars 62,173 72,171 69,170 60,456 69,170 74,331 72,294 82,872 81,176 3 Payable in foreign currencies 5,955 5,291 7,472 7,110 7,472 9,935 8,431 11,931 9,775 By type 4 Financial claims 36,959 46,260 40,231 33,877 40,231 47,798 44,303 58,303 53,031 5 Deposits 22,909 30,199 18,566 15,192 18,566 23,316 17,462 30,928 23,374 6 Payable in dollars 21,060 28,549 16,373 13,240 16,373 21,442 15,361 27,974 21,015 7 Payable in foreign currencies 1,849 1,650 2,193 1,952 2,193 1,874 2,101 2,954 2,359 8 Other financial claims 14,050 16,061 21,665 18,685 21,665 24,482 26,841 27,375 29,657 9 Payable in dollars 11,806 14,049 18,593 15,718 18,593 19,659 22,384 20,541 25,142 10 Payable in foreign currencies 2,244 2,012 3,072 2,967 3,072 4,823 4,457 6,834 4,515 11 Commercial claims 31,169 31,202 36,438 33,689 36,438 36,468 36,422 36,500 37,920 12 Trade receivables 27,536 27,202 32,629 29,397 32,629 31,443 31,277 31,530 33,458 13 Advance payments and other claims 3,633 4,000 3,809 4,292 3,809 5,025 5,145 4,970 4,462 14 Payable in dollars 29,307 29,573 34,204 31,498 34,204 33,230 34,549 34,357 35,019 15 Payable in foreign currencies 1,862 1,629 2,207 2,191 2,207 3,238 1,873 2,143 2,901 By area or country Financial claims 16 Europe 14,999 12,294 13,023 13,878 13,023 16,789 18,254 23,706 23,136 17 Belgium and Luxembourg 406 661 529 574 529 540 317 304 296 18 France 1,015 864 967 1,212 967 1,835 1,292 1,477 1,206 19 Germany 427 304 504 549 504 669 576 696 848 20 Netherlands 677 875 1,229 1,067 1,229 1,981 1,984 2,486 1,396 21 Switzerland 434 414 643 559 643 612 624 626 699 22 United Kingdom 10,337 7,766 7,561 8,157 7,561 9,044 11,668 16,191 15,900 23 Canada 3,313 2,503 2,553 3,172 2,553 3,175 5,799 7,517 4,576 24 Latin America and Caribbean 15,543 27,714 18,206 12,749 18,206 21,945 14,874 21,691 19,317 25 Bahamas 2,308 403 1,593 755 1,593 1,299 655 1,358 1,353 26 Bermuda 108 39 11 524 11 11 34 22 19 27 Brazil 1,313 835 1,476 1,265 1,476 1,646 1,666 1,568 1,827 28 British West Indies 10,462 24,388 12,099 7,263 12,099 15,814 7,751 15,722 12,596 29 Mexico 537 1,245 1,798 1,791 1,798 1,979 2,048 2,280 2,448 30 Venezuela 36 55 48 47 48 65 78 101 87 31 Asia 2,133 3,027 5,457 3,205 5,457 4,430 3,923 4,002 4,697 32 Japan 823 1,194 3,262 1,250 3,262 2,021 1,410 1,726 1,631 33 Middle Eastern oil-exporting countries' 11 9 23 5 23 29 42 85 80 34 Africa 319 159 286 251 286 232 320 284 411 35 Oil-exporting countries2 15 16 15 12 15 15 39 3 57 36 All other3 652 563 706 622 706 1,227 1,133 1,103 894 Commercial claims 37 Europe 12,120 13,246 16,389 14,367 16,389 16,118 15,928 16,486 15,938 38 Belgium and Luxembourg 328 238 316 289 316 271 425 393 452 39 France 1,796 2,171 2,236 2,375 2,236 2,520 2,692 2,921 3,095 40 Germany 1,614 1,822 1,960 1,944 1,960 2,034 1,906 2,159 1,982 41 Netherlands 597 467 1,429 617 1,429 1,337 1,242 1,310 1,729 42 Switzerland 554 483 610 714 610 611 563 684 763 43 United Kingdom 3,660 4,769 5,827 4,789 5,827 5,354 4,929 5,193 4,502 44 Canada 2,660 2,617 2,757 2,638 2,757 3,088 3,250 2,953 3,505 45 Latin America and Caribbean 5,750 6,296 5,959 5,879 5,959 5,899 5,792 5,788 5,842 46 Bahamas 27 24 20 29 20 15 48 75 37 47 Bermuda 244 536 390 549 390 404 381 387 376 48 Brazil 1,162 1,024 905 763 905 849 894 981 956 49 British West Indies 109 104 181 157 181 95 51 55 137 50 Mexico 1,392 1,545 1,678 1,613 1,678 1,529 1,565 1,612 1,507 51 Venezuela 576 401 439 365 439 435 466 379 326 52 8,713 7,192 9,165 8,579 9,165 9,101 9,173 8,986 9,636 53 Japan 1,976 1,681 2,074 1,823 2,074 2,082 1,882 2,074 2,791 54 Middle Eastern oil-exporting countries1 1,107 1,135 1,625 1,479 1,625 1,533 1,241 1,199 1,024 55 Africa 680 711 631 682 631 716 766 895 671 56 Oil-exporting countries2 119 165 171 221 171 82 160 392 179 57 Other3 1,246 1,140 1,537 1,544 1,537 1,546 1,513 1,392 2,328 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 • June 2001 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2001 2000 2001 Transaction, and area or country 1999 2000 J F a e n b . . - Aug. Sept. Oct. Nov. Dec. Jan. Feb.p U.S. corporate securities STOCKS 1 Foreign purchases 2,340,659 3,605,196 560,751 286,819 297,677 339,995 284,909 286,161 301,650 259,101 2 Foreign sales 2,233,137 3,430,306 527,129 262,546 289,118 323,659 275,855 275,034 277,706 249,423 3 Net purchases, or sales (—) 107,522 174,890 33,622 24,273 8,559 16,336 9,054 11,127 23,944 9,678 4 Foreign countries 107,578 174,903 33,613 24,249 8,603 16,338 9,068 11,145 23,906 9,707 5 Europe 98,060 164,656 26,042 15,678 10,014 14,040 7,485 10,779 12,329 13,713 6 France 3,813 5,727 2,112 575 -565 1,757 408 40 243 1,869 7 Germany 13,410 31,752 3,597 2,670 643 1,383 988 777 2,380 1,217 8 Netherlands 8,083 4,915 3,585 594 792 -135 323 1,691 2,206 1,379 9 Switzerland 5,650 11,960 845 1,114 780 488 -598 -684 70 775 10 United Kingdom 42,902 58,736 8,184 7,098 5,163 6,283 3,210 7,773 3,064 5,120 11 Channel Islands & Isle of Man1 n.a. n.a. -45 n.a. n.a. n.a. n.a. n.a. -13 -32 12 Canada -335 5,956 1,958 1,267 -924 194 1,477 1,468 1,490 468 13 Latin America and Caribbean 5,187 -17,812 518 4,907 -3,406 -4,400 -2,979 -2,759 -5.529 -4,803 14 Middle East2 -1,066 9,189 -290 908 52 754 340 277 -554 264 15 Other Asia 4,445 12,494 5,920 1,789 2,707 5,840 3,310 1,451 5,565 355 16 Japan 5,723 2,070 330 568 2,467 2,640 662 1,615 1,002 -672 17 Africa 372 415 -310 2 —56 -27 80 -45 -362 52 18 Other countries 915 5 -225 -302 216 -63 -645 -26 -7 -218 19 Nonmonetary international and regional organizations -56 -11 9 24 -42 -2 -14 -18 38 -29 BONDS3 20 Foreign purchases 854,692 1,206,662 284,964 107,808 106,384 103,028 114.686 117,904 138,294r 151,231 21 Foreign sales 602,100 871,418 220,119 69,514 76,225 71,686 77,596 90,143 111,327 108,779 22 Net purchases, or sales (-) 252,592 335,244 64,845 38,294 30,159 31,342 37,090 27,761 26,967r 42,452 23 Foreign countries 252,994 335,348 64,902 38,215 30,161 31,356 37,224 27,759 27,065 42,411 24 Europe 140,674 179,706 38,279 21,618 17,058 16,965 16,522 16,560 17,397 25,456 25 France 1,870 2,216 1,065 334 -819 347 272 138 405 660 26 Germany 7,723 4,067 3,802 1,185 44 433 537 -78 2,450 1,352 27 Netherlands 2,446 1,130 1,160 850 -818 848 183 275 664 496 28 Switzerland 4,553 3,833 1,103 757 333 350 483 -89 321 782 29 United Kingdom 106,344 140,152 27,962 15,909 15,950 12,503 12,952 12,825 11,251 21,285 30 Channel Islands & Isle of Man1 n.a. n.a. 225 n.a. n.a. n.a. n.a. n.a. 107 118 31 Canada 6,043 13,287 1,407 1,965 811 897 1,179 414 376 1,031 32 Latin America and Caribbean 58,783 59,443 12,978 3,829 6,338 5,018 6,600 4,126 4,969 9,461 33 Middle East1 1,979 2,076 1,169 54 -702 -54 437 1,077 726 443 34 Other Asia 42,817 78,280 10,676 10,562 6,777 8,215 11,839 5,535 3,514 7,162 35 Japan 17,541 38,842 1,824 5,664 3,573 3,690 7,435 2,932 910 914 36 Africa 1,411 938 75 37 49 58 25 76 29 46 37 Other countries 1,287 1,618 318 150 -170 257 622 -29 54 264 38 Nonmonetary international and regional organizations -402 -70 -56 110 -2 -14 -134 2 -97 41 Foreign securities 39 Stocks, net purchases, or sales (—) 15,640 -9,297 -5,431 672 10,217 3,011 5,563 -3,195 -2,940 -2,494 40 Foreign purchases 1,177,303 1,802,452 279,083 142,850 148,664 152,872 141.600 135,417 148,111 130,932 41 Foreign sales 1,161,663 1,811,749 284,514 142,178 138,447 149,861 136,037 138,612 151,051 133,426 42 Bonds, net purchases, or sales (—) -5,676 -3.878 1,800 -2,812 265 -3,443 8,434 -1,175 -1,360 3,160 43 Foreign purchases 798,267 959,408 225,486 74,803 92,179 98,519 94,938 83,721 120,666 104,820 44 Foreign sales 803,943 963,286 223,686 77,615 91,914 101,962 86,504 84,896 122,026 101,660 45 Net purchases, or sales (—), of stocks and bonds .... 9,964 -13,175 -3,634 -2,140 10,482 -432 13,997 -4,370 -4,300 666 46 Foreign countries 9,679 -13,311 -3,381 -1,986 10,307 -599 13,758 -3,951 -4,011 627 47 Europe 59,247 -23,609 -6,297 -5,786 6,353 -3,879 7,373 -4,452 -4,878 -1,422 48 Canada -999 -3,856 2,355 910 -1,122 1,813 574 -1,357 767 1,588 49 Latin America and Caribbean -4,726 -15,116 3,986 -892 585 1,010 -521 -205 641 3,345 50 -42,961 25,975 -2,153 3,159 3,842 -73 5,742 1,872 -1,005 -1,148 51 Japan -43,637 21.886 -1,799 1,478 2,063 -1,262 2,067 1,824 164 -1,963 52 Africa 710 947 -85 -50 48 14 -28 -4 -70 -15 53 Other countries -1,592 2,348 -39 673 601 516 618 195 312 -351 54 Nonmonetary international and regional organizations 285 150 -250 -154 179 167 239 -419 -289 39 1. Before January 2001, these data were included in United Kingdom. 3. Includes state and local government securities and securities of U.S. government 2. Comprises oil-exporting countries as follows: Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, agencies and corporations. Also includes issues of new debt securities sold abroad by U.S. Saudi Arabia, and United Arab Emirates (Trucial States). corporations organized to finance direct investments abroad. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Securities Holdings and Transactions A61 3.25 MARKETABLE U.S. TREASURY BONDS AND NOTES Foreign Transactions1 Millions of dollars; net purchases, or sales (—) during period 2001 2000 2001 AArreeaa oorr ccoouunnttrryy 11999999 22000000 Jan.— Aug. Sept. Oct. Nov. Dec. Jan. Feb.? Feb. 1 Total estimated -9,953 -53,790 -2,053 -114 -8,516 -3,037 -14,106 -9,789 -9,064 7,011 2 Foreign countries -10,518 -53,329 -1,559 -117 -8,741 -3,222 -13,959 -9,904 -8,531 6,972 3 Europe -38,228 -50,704 -5,337 3,707 -1,284 -3,707 -10,991 -6,850 -5,000 -337 4 Belgium2 -81 73 0 138 -127 320 53 -96 0 0 Germanv 2,285 -7,304 -4,053 -36 -1,738 1,424 -2,185 -1,065 -873 -3,180 6 Luxembourg* n.a. n.a. 420 n.a. n.a. n.a. n.a. n.a. 411 9 7 Netherlands 2,122 2,140 2,015 91 836 183 264 -1,622 -793 2,808 8 Sweden 1,699 1,082 -821 56 214 -118 -104 328 218 -1,039 9 Switzerland -1,761 -10,326 916 -338 -959 -57 -301 64 755 161 10 United Kingdom -20,232 -33,669 -1,758 3.054 -1,865 -3,793 -6,035 -4,199 -2.695 937 11 Channel Islands and Isle of Man3 n.a. n.a. -166 n.a. n.a. n.a. n.a. n.a. -98 -68 12 Other Europe and former U.S.S.R -22,260 -2,700 -1,525 742 2,355 -1,666 -2,683 -260 -2,089r 564 13 Canada 7,348 -308 -2,621 222 1,417 160 -1,173 -1,492 -2,089 564 14 Latin America and Caribbean -7,523 -4,914 -6,027 245 -4,979 3,963 -507 -245 2,407 3,620 15 Venezuela 362 1,288 519 45 314 152 251 300 227 292 16 Other Latin America and Caribbean 1,661 -11,581 7,540 61 -4,936 3,030 -1.262 -1,746 3,261 4,279 17 Netherlands Antilles -9,546 5,379 -2,032 139 -357 781 504 1,201 -1,081 -951 18 Asia 29,359 1,639 -254 -4,918 -3,319 -4,688 -1,289 -458 -4,641 4,387 19 Japan 20,102 10,580 -2,793 367 1,717 1,608 4,445 -3,855 -4,261 1,468 70 Africa -3,021 -414 -55 9 -139 -6 -16 -44 -91 36 21 Other 1,547 1,372 681 618 -437 1,056 17 -815 861 -180 22 Nonmonetary international and regional organizations 565 -461 -494 3 225 185 -147 115 -533 39 73 International 190 -483 -469 15 391 39 -146 24 -275 -194 24 Latin American Caribbean regional 666 76 -3 -10 1 28 -1 6 1 -4 MEMO 25 Foreign countries -10,518 -53,329 -1,559 -117 -8,741 -3,222 -13,959 -9,904 -8,531 6,972 26 Official institutions -9,861 -6,302 2,893 449 -6,626 -7,150 -4,967 1,068 2,226 667 27 Other foreign -657 -47,027 -4,452 -566 -2,115 3,928 -8,992 -10,972 -10,757 6,305 Oil-exporting countries 28 Middle East4 2,207 3,483 -895 217 -1,030 -724 -888 48 -176 -719 29 Africa5 0 0 -6 0 0 0 0 0 -6 0 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in United Kingdom. original maturity of more than one year. Data are based on monthly transactions reports. 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign Emirates (Trucial States). countries. 5. Comprises Algeria, Gabon, Libya, and Nigeria. 2. Before January 2001, combined data reported for Belgium and Luxembourg. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 International Statistics • June 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 2001 11999999 22000000 Nov. Dec. Jan. Feb. Mar. Apr. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 62.91 64.54 58.15 52.18 54.66 55.52 53.38 50.31 50.16 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 1.9483 1.9632 1.9561 2.0060 2.0955 2.1934 5 Canada/dollar 1.4836 1.4858 1.4855 1.5426 1.5219 1.5032 1.5216 1.5587 1.5578 6 China, P.R./yuan 8.3008 8.2783 8.2784 8.2774 8.2771 8.2776 8.2771 8.2775 8.2771 7 Denmark/krone 6.7030 6.9900 8.0953 8.6992 8.3059 7.9629 8.1103 8.2229 8.3657 8 European Monetary Union/euro3 n.a. 1.0653 0.9232 0.8552 0.8983 0.9376 0.9205 0.9083 0.8925 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 295.70 306.30 365.92 397.94 379.58 n.a. n.a. n.a.r n.a. 13 Hong Kong/dollar 7.7467 7.7594 7.7924 7.7991 7.7991 7.7998 7.7999 7.7999 7.7993 14 India/rupee 41.36 43.13 45.00 46.82 46.78 46.61 46.56 46.65 46.79 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 130.99 113.73 107.80 109.01 112.21 116.67 116.23 121.51 123.77 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 9.508 9.467 9.769 9.711 9.599 9.328 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 39.90 42.97 44.42 43.45 41.82 40.69 22 Norway/krone 7.5521 7.8071 8.8131 9.3524 9.0616 8.7817 8.9180 8.9859 9.0920 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 1.7478 1.7361 1.7380 1.7435 1.7732 1.8118 25 South Africa/rand 5.5417 6.1191 6.9468 7.6889 7.6439 7.7786 7.8214 7.8980 8.0783 26 South Korea/won 1,400.40 1,189.84 1,130.90 1,156.54 1,216.94 1,272.63 1,252.85 1,291.41 1,327.76 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 80.381 82.030 85.833 87.136 85.730 88.205 29 Sweden/krona 7.9522 8.2740 9.1735 10.0965 9.6604 9.4910 9.7518 10.0516 10.2035 30 Switzerland/franc 1.4506 1.5045 1.6904 1.7779 1.6855 1.6305 1.6686 1.6908 1.7131 31 Taiwan/dollar 33.547 32.322 31.260 32.433 33.123 32.673 32.330 32.622 32.941 32 Thailand/baht 41.262 37.887 40.210 43.791 43.246 43.149 42.665 43.988 45.494 33 United Kingdom/pound2 165.73 161.72 151.56 142.58 146.29 147.75 145.25 144.45 143.48 34 Venezuela/bolivar 548.39 606.82 680.52 695.77 698.85 700.02 703.36 706.06 710.39 Indexes4 NOMINAL 35 Broad (January 1997=100)' 116.48 116.87 119.93 124.21 123.28 123.14 123.77 125.91 126.97 36 Major currencies (March 1973= 100)6 95.79 94.07 98.34 103.08 101.26 100.24 101.44 103.98 105.09 3/ Other important trading partners (January 1997= 100)7 126.03 129.94 130.26 132.87 133.61 135.01 134.52 135.56 136.30 REAL 38 Broad (March 1973= 100)5 99.20 98.52 102.18 105.74r 104.84r 105.24'" 105.97r 107.82r 108.70 39 Major currencies (March 1973= 100)6 97.23 96.66 102.85 108.13r 106.13r 105.89r 107.29r 109.91r 111.12 40 Other important trading partners (March 1973 = 100)7 108.11 107.24r 107.69r 109.21r 109.67r 110.95r 110.83r 111.80r 112.31 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. Starting with the February 2001 Bulletin, 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 are reported. For more information see inside front cover. on the indexes of foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 84 2. U.S. cents per currency unit. (October 1998), pp. 811-818. 3. The euro is reported in place of the individual euro area currencies. By convention, the 5. Weighted average of the foreign exchange value of the U.S. dollar against the currencies rate is reported in U.S. dollars per euro. The bilateral currency rates can be derived from the of a broad group of U.S, trading partners. The weight for each currency is computed as an euro rate by using the fixed conversion rates (in currencies per euro) as shown below: average of U.S. bilateral import shares from and export shares to the issuing country and of a 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 340.750 Greek drachmas 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 June 2001 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks March 31, 2000 August 2000 A64 June 30, 2000 November 2000 A64 September 30, 2000 February 2001 A64 December 31, 2000 May 2001 A64 Terms of lending at commercial banks May 2000 August 2000 A66 August 2000 November 2000 A66 November 2000 February 2001 A66 February 2001 May 2001 A66 Assets and liabilities of U.S. branches and agencies of foreign banks March 31, 2000 August 2000 A72 June 30, 2000 November 2000 A72 September 30, 2000 February 2001 A72 December 31, 2000 May 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

130 Federal Reserve Bulletin • June 2001 Index to Statistical Tables References are to pages A3-A62, although the prefix "A" is omitted in this index. ACCEPTANCES, bankers (See Bankers acceptances) Federal finance Assets and liabilities (See also Foreigners) Debt subject to statutory limitation, and types and ownership Commercial banks, 15-21 of gross debt, 27 Domestic finance companies, 32, 33 Receipts and outlays, 25, 26 Federal Reserve Banks, 10 Treasury financing of surplus, or deficit, 25 Foreign-related institutions, 20 Treasury operating balance, 25 Automobiles Federal Financing Bank, 30 Consumer credit, 36 Federal funds, 23, 25 Production, 44, 45 Federal Home Loan Banks, 30 Federal Home Loan Mortgage Corporation, 30, 34, 35 Federal Housing Administration, 30, 34, 35 BANKERS acceptances, 5, 10, 22, 23 Federal Land Banks, 35 Bankers balances, 15-21. (See also Foreigners) Federal National Mortgage Association, 30, 34, 35 Bonds (See also U.S. government securities) Federal Reserve Banks New issues, 31 Condition statement, 10 Rates, 23 Discount rates (See Interest rates) Business activity, nonfinancial, 42 U.S. government securities, 5, 10, 11, 27 Business loans (See Commercial and industrial loans) Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 Federally sponsored credit agencies, 30 CAPACITY utilization, 43 Finance companies Capital accounts Assets and liabilities, 32 Commercial banks, 15-21 Business credit, 33 Federal Reserve Banks, 10 Loans, 36 Certificates of deposit, 23 Paper, 22, 23 Commercial and industrial loans Float, 5 Commercial banks, 15-21 Flow of funds, 37-^1 Weekly reporting banks, 17, 18 Foreign currency operations, 10 Commercial banks Foreign deposits in U.S. banks, 5 Assets and liabilities, 15-21 Foreign exchange rates, 62 Commercial and industrial loans, 15-21 Foreign-related institutions, 20 Consumer loans held, by type and terms, 36 Foreign trade, 51 Real estate mortgages held, by holder and property, 35 Foreigners Time and savings deposits, 4 Claims on, 52, 55-7, 59 Commercial paper, 22, 23, 32 Liabilities to, 51-4, 58, 60, 61 Condition statements (See Assets and liabilities) Construction, 42, 46 Consumer credit, 36 GOLD Consumer prices, 42 Certificate account, 10 Consumption expenditures, 48, 49 Stock, 5, 51 Corporations Government National Mortgage Association, 30, 34, 35 Profits and their distribution, 32 Gross domestic product, 48, 49 Security issues, 31, 61 Cost of living (See Consumer prices) Credit unions, 36 HOUSING, new and existing units, 46 Currency in circulation, 5, 13 Customer credit, stock market, 24 INCOME, personal and national, 42, 48, 49 DEBT (See specific types of debt or securities) Industrial production, 42, 44 Demand deposits, 15—21 Insurance companies, 27, 35 Depository institutions Interest rates Reserve requirements, 8 Bonds, 23 Reserves and related items, 4-6, 12 Consumer credit, 36 Deposits (See also specific types) Federal Reserve Banks, 7 Commercial banks, 4, 15-21 Money and capital markets, 23 Federal Reserve Banks, 5, 10 Mortgages, 34 Discount rates at Reserve Banks and at foreign central banks and Prime rate, 22 foreign countries (See Interest rates) International capital transactions of United States, 50-61 Discounts and advances by Reserve Banks (See Loans) International organizations, 52, 53, 55, 58, 59 Dividends, corporate, 32 Inventories, 48 Investment companies, issues and assets, 32 Investments (See also specific types) EMPLOYMENT, 42 Commercial banks, 4, 15-21 Euro, 62 Federal Reserve Banks, 10, 11 Financial institutions, 35 FARM mortgage loans, 35 Federal agency obligations, 5, 9-11, 28, 29 LABOR force, 42 Federal credit agencies, 30 Life insurance companies (See Insurance companies) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 15-21 Savings institutions, 35, 36, 37^-1 Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Insured or guaranteed by United States, 34, 35 Foreign transactions, 60 New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Special drawing rights, 5, 10, 50, 51 Production, 43, 45 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 27 Member banks, reserve requirements, 8 New security issues, 31 Mining production, 45 Rates on securities, 23 Mobile homes shipped, 46 Stock market, selected statistics, 24 Monetary and credit aggregates, 4, 12 Stocks (See also Securities) Money and capital market rates, 23 New issues, 31 Money stock measures and components, 4, 13 Prices, 24 Mortgages (See Real estate loans) Mutual funds, 13, 32 Student Loan Marketing Association, 30 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 NATIONAL defense outlays, 26 Thrift institutions, 4. (See also Credit unions and Savings National income, 48 institutions) Time and savings deposits, 4, 13, 15-21 OPEN market transactions, 9 Trade, foreign, 51 Treasury cash, Treasury currency, 5 PERSONAL income, 49 Treasury deposits, 5, 10, 25 Prices Treasury operating balance, 25 Consumer and producer, 42, 47 Stock market, 24 UNEMPLOYMENT, 42 Prime rate, 22 U.S. government balances Producer prices, 42, 47 Commercial bank holdings, 15-21 Production, 42, 44 Treasury deposits at Reserve Banks, 5, 10, 25 Profits, corporate, 32 U.S. government securities Bank holdings, 15-21, 27 REAL estate loans Dealer transactions, positions, and financing, 29 Banks, 15-21, 35 Federal Reserve Bank holdings, 5, 10, 11, 27 Terms, yields, and activity, 34 Foreign and international holdings and transactions, 10, 27, 61 Type and holder and property mortgaged, 35 Open market transactions, 9 Reserve requirements, 8 Outstanding, by type and holder, 27, 28 Reserves Rates, 23 Commercial banks, 15-21 U.S. international transactions, 50-62 Depository institutions, 4-6, 12 Utilities, production, 45 Federal Reserve Banks, 10 U.S. reserve assets, 51 VETERANS Administration, 34, 35 Residential mortgage loans, 34, 35 Retail credit and retail sales, 36, 42 WEEKLY reporting banks, 17, 18 Wholesale (producer) prices, 42, 47 SAVING Flow of funds, 37^41 National income accounts, 48 YIELDS (See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • June 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 MICHELLE A. SMITH, Assistant to the Board DAVID H. HOWARD, Deputy Director DONALD J. WINN, Assistant to the Board VINCENT R. REINHART, Deputy Director WINTHROP P. HAMBLEY, Deputy Congressional Liaison THOMAS A. CONNORS, Associate Director JOHN LOPEZ, Special Assistant to the Board DALE W. HENDERSON, Associate Director BOB STAHLY MOORE, Special Assistant to the Board RICHARD T. FREEMAN, Assistant Director ROSANNA PIANALTO-CAMERON, Special Assistant to the Board WILLIAM L. HELKIE, Assistant Director DAVID W. SKIDMORE, Special Assistant to the Board STEVEN B. KAMIN, Assistant Director DIANE E. WERNEKE, Special Assistant to the Board RALPH W. TRYON, Assistant Director LEGAL DIVISION DIVISION OF RESEARCH AND STATISTICS J. VIRGIL MATTINGLY, JR., General Counsel DAVID J. STOCKTON, Director SCOTT G. ALVAREZ, Associate General Counsel EDWARD C. ETTIN, Deputy Director RICHARD M. ASHTON, Associate General Counsel DAVID WILCOX, Deputy Director KATHLEEN M. O'DAY, Associate General Counsel WILLIAM R. JONES, Associate Director STEPHANIE MARTIN, Assistant General Counsel MYRON L. KWAST, Associate Director ANN E. MISBACK, Assistant General Counsel STEPHEN D. OLINER, Associate Director SANDRA L. RICHARDSON, Assistant General Counsel PATRICK M. PARKINSON, Associate Director STEPHEN L. SICILIANO, Assistant General Counsel LAWRENCE SLIFMAN, Associate Director KATHERINE H. WHEATLEY, Assistant General Counsel CHARLES S. STRUCKMEYER, Associate Director CARY K. WILLIAMS, Assistant General Counsel MARTHA S. SCANLON, Deputy Associate Director JOYCE K. ZICKLER, Deputy Associate Director OFFICE OF THE SECRETARY WAYNE S. PASSMORE, Assistant Director JENNIFER J. JOHNSON, Secretary DAVID L. REIFSCHNEIDER, Assistant Director ROBERT DEV. FRIERSON, Associate Secretary JANICE SHACK-MARQUEZ, Assistant Director BARBARA R. LOWREY, Associate Secretary and Ombudsman ALICE PATRICIA WHITE, Assistant Director GLENN B. CANNER, Senior Adviser DIVISION OF BANKING DAVID S. JONES, Senior Adviser SUPERVISION AND REGULATION THOMAS D. SIMPSON, Senior Adviser RICHARD SPILLENKOTHEN, Director STEPHEN C. SCHEMERING, Deputy Director DIVISION OF MONETARY AFFAIRS HERBERT A. BIERN, Senior Associate Director DONALD L. KOHN, Director ROGER T. COLE, Senior Associate Director DAVID E. LINDSEY, Deputy Director WILLIAM A. RYBACK, Senior Associate Director BRIAN F. MADIGAN, Associate Director GERALD A. EDWARDS, JR., Associate Director RICHARD D. PORTER, Deputy Associate Director STEPHEN M. HOFFMAN, JR., Associate Director WILLIAM C. WHITESELL, Assistant Director JAMES V. HOUPT, Associate Director NORMAND R.V. BERNARD, Special Assistant to the Board JACK P. JENNINGS, Associate Director MICHAEL G. MARTINSON, Associate Director DIVISION OF CONSUMER MOLLY S. WASSOM, Associate Director AND COMMUNITY AFFAIRS HOWARD A. AMER, Deputy Associate Director NORAH M. BARGER, Deputy Associate Director DOLORES S. SMITH, Director BETSY CROSS, Deputy Associate Director GLENN E. LONEY, Deputy Director RICHARD A. SMALL, Deputy Associate Director SANDRA F. BRAUNSTEIN, Assistant Director DEBORAH P. BAILEY, Assistant Director MAUREEN P. ENGLISH, Assistant Director BARBARA J. BOUCHARD, Assistant Director ADRIENNE D. HURT, Assistant Director ANGELA DESMOND, Assistant Director IRENE SHAWN MCNULTY, Assistant Director JAMES A. EMBERSIT, Assistant Director CHARLES H. HOLM, Assistant Director HEIDI WILLMANN RICHARDS, Assistant Director WILLIAM G. SPANIEL, Assistant Director DAVID M. WRIGHT, Assistant Director SIDNEY M. SUSSAN, Adviser Digitized for FRWAILSLEIARM C. SCHNEIDER, JR., Project Director, http://fraser.stlouNisafteiodn.aol rgI/n formation Center Federal Reserve Bank of St. Louis

A67 EDWARD M. GRAMLICH OFFICE OF DIVISION OF RESERVE BANK OPERATIONS STAFF DIRECTOR FOR MANAGEMENT AND PAYMENT SYSTEMS STEPHEN R. MALPHRUS, Staff Director LOUISE L. ROSEMAN, Director PAUL W. BETTGE, Associate Director MANAGEMENT DIVISION KENNETH D. BUCKLEY, Assistant Director TILLENA G. CLARK, 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 W. REIDHILL, Assistant Director Function JEFF J. STEHM, Assistant Director SHEILA CLARK, EEO Programs Director DIVISION OF SUPPORT SERVICES OFFICE OF THE INSPECTOR GENERAL BARRY R. SNYDER, Inspector General ROBERT E. FRAZIER, Director GEORGE M. LOPEZ, Assistant Director DONALD L. ROBINSON, Deputy Inspector General DAVID L. WILLIAMS, Assistant Director DIVISION OF INFORMATION TECHNOLOGY RICHARD C. STEVENS, Director MARIANNE M. EMERSON, Deputy Director MAUREEN T. HANNAN, Associate Director RAYMOND H. MASSEY, Associate Director GEARY L. CUNNINGHAM, Assistant Director WAYNE A. EDMONDSON, Assistant Director Po KYUNG KIM, Assistant Director SUSAN F. MARYCZ, 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

134 Federal Reserve Bulletin • June 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 JEFFREY C. FUHRER, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary CRAIG S. HAKKIO, Associate Economist LYNN S. FOX, Assistant Secretary DAVID H. HOWARD, Associate Economist GARY P. GILLUM, Assistant Secretary WILLIAM C. HUNTER, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel DAVID E. LINDSEY, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel ROBERT H. RASCHE, Associate Economist KAREN H. JOHNSON, Economist VINCENT R. REINHART, Associate Economist DAVID J. STOCKTON, Economist LAWRENCE SLIFMAN, Associate Economist CHRISTINE M. CUMMING, Associate Economist DAVID WILCOX, Associate Economist DINO KOS, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DOUGLAS A. WARNER, III, President LAWRENCE K. FISH, Vice President 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

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 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, Oklahoma City, 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, Tucson, Arizona 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

136 Federal Reserve Bulletin • June 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, 2001. 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. Welcome to the Federal Reserve FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated When Your Home is on the Line: What You Should Know monthly. (Requests must be prepaid.) About Home Equity Lines of Credit Consumer and Community Affairs Handbook. $75.00 per year. Keys to Vehicle Leasing (also available in Spanish) Monetary Policy and Reserve Requirements Handbook. $75.00 Looking for the Best Mortgage (also available in Spanish) per year. Securities Credit Transactions Handbook. $75.00 per year. The Payment System Handbook. $75.00 per year. Federal Reserve Regulatory Service. Four vols. (Contains all four Handbooks plus substantial additional material.) $200.00 per year. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A71 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- BULLETIN ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- 169 are out of print, but photocopies of them are available. Staff LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH Studies 165-174 are available on line at www.federalreserve.gov/ IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. pubs/staffstudies. Requests to obtain single copies of any paper or Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- Publications Services. DENCE, by Gregory Elliehausen. April 1998. 35 pp. 172. USING SUBORDINATED DEBT AS AN INSTRUMENT OF MAR- 159. NEW DATA ON THE PERFORMANCE OF NONBANK SUBSIDI- KET DISCIPLINE, by Study Group on Subordinated Notes ARIES OF BANK HOLDING COMPANIES, by Nellie Liang and and Debentures, Federal Reserve System. December 1999. Donald Savage. February 1990. 12 pp. 69 pp. 160. BANKING MARKETS AND THE USE OF FINANCIAL SER- 173. IMPROVING PUBLIC DISCLOSURE IN BANKING, by Study VICES BY SMALL AND MEDIUM-SIZED BUSINESSES, by Group on Disclosure, Federal Reserve System. March 2000. Gregory E. Elliehausen and John D. Wolken. September 35 pp. 1990. 35 pp. 174. BANK MERGERS AND BANKING STRUCTURE IN THE UNITED 162. EVIDENCE ON THE SIZE OF BANKING MARKETS FROM MORT- STATES, 1980-98, by Stephen Rhoades. August 2000. 33 pp. GAGE LOAN RATES IN TWENTY CITIES, by Stephen A. Rhoades. February 1992. 11 pp. 164. THE 1989-92 CREDIT CRUNCH FOR REAL ESTATE, by James T. Fergus and John L. Goodman, Jr. July 1993. 20 pp. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Federal Reserve Bulletin • June 2001 ANTICIPATED SCHEDULE OF RELEASE DATES FOR PERIODIC RELEASES OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM (PAYMENT MUST ACCOMPANY REQUESTS) Annual Annual Approximate Corresponding Period or date to Release number and title mail fax release Bulletin which data refer rate rate days1 table numbers2 Weekly Releases H.2. Actions of the Board: $55.00 n.a. Friday Week ended Applications and Reports previous Received Saturday H.3. Aggregate Reserves of $20.00 n.a. Thursday Week ended 1.20 Depository Institutions and previous the Monetary Base3 Wednesday H.4.1. Factors Affecting Reserve Balances $20.00 n.a. Thursday Week ended 1.11, 1.18 of Depository Institutions and previous Condition Statement of Wednesday Federal Reserve Banks3 H.6. Money Stock and Debt $35.00 n.a. Thursday Week ended 1.21 Measures3 Monday of previous week H.8. Assets and Liabilities of $30.00 n.a. Friday Week ended 1.26A-F Commercial Banks in the previous United States3 Wednesday H.10. Foreign Exchange Rates3 $20.00 $20.00 Monday Week ended 3.28 previous Friday H.15. Selected Interest Rates3 $20.00 $20.00 Monday Week ended 1.35 previous Friday Monthly Releases G.5. Foreign Exchange Rates3 $ 5.00 $ 5.00 First of month Previous month 3.28 G. 13. Selected Interest Rates $ 5.00 $ 5.00 First Tuesday of Previous month 1.35 month G.17. Industrial Production and $15.00 Midmonth Previous month 2.12, 2.13 Capacity Utilization3 $ 5.00 $ 5.00 Fifth working day Second month 1.55, 1.56 G.19. Consumer Credit3 of month previous $ 5.00 End of month Second month 1.51, 1.52 G.20. Finance Companies previous Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 Annual Annual Approximate Corresponding Period or date to Release number and title mail fax release Bulletin which data refer rate rate days1 table numbers2 Quarterly Releases E.2. Survey of Terms of Business Lending $ 5.00 n.a. Midmonth of February, May, 4.23 March, June, August, and September, and November December E.7. List of Foreign Margin Stocks No charge n.a. March and March and September September E.ll. Geographical Distribution of $ 5.00 n.a. 15th of March, Previous quarter Assets and Liabilities of June, Major Foreign Branches of September, and U.S. Banks December E.15. Agricultural Finance Databook $ 5.00 n.a. End of March, January, April, June, July, and September, and October December E.16. Country Exposure Lending $ 5.00 n.a. January, April, Previous quarter Survey July, and October Z.l. Flow of Funds Accounts $25.00 n.a. Second week of Previous quarter 1.57, 1.58, of the United States: March, June, 1.59, 1.60 Flows and Outstandings3 September, and December 1. Please note that for some releases there is normally a certain variability in the release date because of reporting or processing procedures. Moreover, for all series unusual circumstances may, from time to time, result in a release date being later than anticipated. 2. The data in some releases are also reported in the Bulletin statistical appendix. 3. These releases are also available on the Board's web site, www.federalreserve.gov/releases. n.a. Not available. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

A75 1-A 2-B 3-C 4-D 5-E MR Pittsburgh Baltimore MD # IX CT VT / [LV-wv m cinnati ^Bullalo vSHpicir MA " 1 £ NT NY BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H TN—»- •Nashville AL • Birmingham. sville ~ JUeksomille New Orleans > Mi^ini ATLANTA CHICAGO ST. LOUIS 9-1 i MINNEAPOLIS 10-J 12-L KANSAS CITY • M M MM 11-K SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

142 Federal Reserve Bulletin • June 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. Purcell' New Orleans 70161 Ben Tom Roberts Robert J. Musso1 CHICAGO* 60690 Arthur C. Martinez Michael H. Moskow Robert J. Darnall Gordon R. G. Werkema 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 Beauregard Brite White Sammie C. Clay Houston 77252 Edward O. Gaylord Robert Smith III1 San Antonio 78295 Patty P. Mueller James L. Stull1 SAN FRANCISCO 94120 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 David K.Webb1 * 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