Federal Reserve Bulletin, 2001-12

Volume 87 • Number 12 • December 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 757 TREASURY AND FEDERAL RESERVE 1995 (Testimony before the Joint Economic FOREIGN EXCHANGE OPERATIONS Committee of the U.S. Congress, October 17, 2001). During the third quarter of 2001, the dollar depreciated 7.3 percent against the euro and 769 Dolores S. Smith, Director, Division of Con- 4.1 percent against the yen. On a trade-weighted sumer and Community Affairs, discusses the basis, the dollar ended the quarter 2.6 percent Board's responsibilities in administering a numlower. Economic data released even before the ber of consumer protection laws and states that terrorist attacks on September 11 suggested that as part of the bank examination process, the the U.S. economic slowdown would likely be Federal Reserve enforces the federal banking more protracted than previously expected, which laws, including the Truth in Lending rules, generally weighed on the dollar. The attacks with respect to the approximately 980 stateheightened pre-existing concerns about the chartered banks that are members of the Federal weakness of the U.S. economy and lent further Reserve System. She testifies that in the Federal momentum to the general trends that prevailed Reserve's examination of state member banks earlier in the quarter. The U.S. monetary authori- that are involved in credit card lending, it has ties did not intervene in the foreign exchange not found any widespread practices that violate markets during the quarter. applicable laws or regulations; further, violations have been found in only a small number of banks, and even in those cases, the violations 763 INDUSTRIAL PRODUCTION AND CAPACITY have generally been isolated in scope (Testi- UTILIZATION FOR OCTOBER 2001 mony before the Subcommittee on Financial Institutions and Consumer Credit of the House In October, industrial production fell 1.1 percent, Committee on Financial Services, November 1, to 139.3 percent of its 1992 average, and was 2001). 6.3 percent below its level a year ago. The rate of capacity utilization for total industry fell 0.9 percentage point, to 74.8 percent, a level 773 ANNOUNCEMENTS 7.3 percentage points below its 1967-2000 Federal Open Market Committee directive and average. discount rate decrease. Final rule on Regulation K. 767 TESTIMONY OF FEDERAL RESERVE Request for comment on subpart of Regula- OFFICIALS tion K. Alan Greenspan, Chairman, Board of Governors Annual adjustments for reserve requirements of the Federal Reserve System, discusses recent and deposit reporting. developments in the U.S. economy and states that despite the tragic events of September 11, Approval of 2002 fee schedules for Reserve the foundations of our free society remain Bank payment services. sound, and we will recover and prosper as we Designation of agency representatives to Air have in the past. He states further that the level Transportation Stabilization Board. of productivity will presumably undergo a onetime downward adjustment as our economy Board discount rate meeting minutes. responds to higher levels of perceived risk, but Enforcement actions. once the adjustment is completed, productivity growth should resume at rates in excess of those Discontinuation of statistical table in the Fedthat prevailed in the quarter-century preceding eral Reserve Bulletin. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

November 2001 update of the Commercial Bank A64 INDEX TO STATISTICAL TABLES Examination Manual. A66 BOARD OF GOVERNORS AND STAFF ILL LEGAL DEVELOPMENTS A68 FEDERAL OPEN MARKET COMMITTEE AND Various bank holding company, bank service STAFF; ADVISORY COUNCILS corporation, and bank merger orders; and pending cases. A70 FEDERAL RESERVE BOARD PUBLICATIONS A1 FINANCIAL AND BUSINESS STATISTICS A72 ANTICIPATED SCHEDULE OF RELEASE These tables reflect data available as of DATES FOR PERIODIC RELEASES October 29, 2001. A74 MAPS OF THE FEDERAL RESERVE SYSTEM A3 GUIDE TO TABLES A4 Domestic Financial Statistics A76 FEDERAL RESERVE BANKS, BRANCHES, A42 Domestic Nonfinancial Statistics AND OFFICES A50 International Statistics All INDEX TO VOLUME 87 A63 GUIDE TO STATISTICAL RELEASES AND SPECIAL TABLES 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 • Stephen R. Malphrus • J. Virgil Mattingly, Jr. • Vincent R. Reinhart • 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

Treasury and Federal Reserve Foreign Exchange Operations This report, presented by Dino Kos, Executive Vice growth differentials between the United States and President, Federal Reserve Bank of New York, and the euro area prompted investors to expand their long Manager, System Open Market Account, describes euro positions. The euro's initial appreciation cointhe foreign exchange operations of the U.S. Depart- cided with reports of shorter-term investors having ment of the Treasury and the Federal Reserve System established long positions in the euro. According to for the period from July 2001 through September data from the Commodity Futures Trading Commis- 2001. Evangeline Sophia Drossos was primarily sion (CFTC), net noncommercial long euro positions responsible for preparing the report. on the International Money Market futures exchange rose steadily over the quarter and on August 28 During the third quarter, the dollar depreciated reached their highest levels since the inception of the 7.3 percent against the euro and 4.1 percent against euro. However, market participants suggested that the yen. On a trade-weighted basis, the dollar ended these net long euro positions may have limited the the quarter 2.6 percent lower. Shifting expectations euro's gains somewhat later in the quarter, as invesabout the pace of the U.S. economic recovery influ- tors were reluctant to extend positions further. enced changes in the exchange value of the dollar. The dollar also depreciated against the yen, which Economic data released even before the terrorist strengthened against a wide range of currencies. attacks on September 11 suggested that the U.S. eco- Investors bought yen to cover short positions amid nomic slowdown would likely be more protracted expectations that funds from Japanese accounts than previously expected, which generally weighed would be repatriated from overseas investments on the dollar. The attacks heightened pre-existing ahead of the Japanese fiscal-half-year-end. CFTC concerns about the weakness of the U.S. economy data indicated that noncommercial accounts reported and lent further momentum to the general trends that net short yen positions against the dollar through the prevailed earlier in the quarter. The U.S. monetary end of July, but these positions were reversed in authorities did not intervene in the foreign exchange August. In early September, the number of net long markets during this quarter. After the terrorist attacks, yen positions reached its highest level in almost two the Federal Reserve established thirty-day reciprocal years. swap arrangements with the European Central Bank (ECB) and the Bank of England and temporarily augmented its existing swap facility with the Bank of 1. Trade-weighted Group of Three currencies, 2001 :Q3 Canada. The ECB drew on the swap facility on three Index: July 2 = 100 occasions. DOLLAR DEPRECIATES THROUGH EARLY SEPTEMBER AMID INCREASED UNCERTAINTY OVER THE PROSPECTS FOR US. ECONOMIC RECOVERY After reaching new multiyear highs on a tradeweighted basis early in the quarter, the exchange value of the dollar declined amid increased expectations for a more protracted economic slowdown in the United States and a broad retrenchment from risk positions. The euro appreciated against the dollar NOTE. In this chart and those that follow, the data are for business days early in the quarter, rising as high as $0.9182 on except as noted. SOURCES. Board of Governors of the Federal Reserve System, the Federal August 21, as shifting expectations for relative Reserve Bank of New York, and the Bank of England. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

758 Federal Reserve Bulletin • December 2001 2. Dollar-euro swap differentials, 2001 :Q3 3. Group of Three government yield curves, 2001 :Q3 Basis points Ten-year minus two-year Japanese government bond yield Ten-year minus two-year U.S. Treasury yield Ten-year minus two-year German bund yield 9/11 9/17 SOURCE. Bloomberg L.P. SOURCE. Bloomberg L.P. the Reserve Bank of Australia each lowered their U.S. economic data reported early in the quarter policy rates 25 basis points. The Bank of Canada showed weakness in both the nonmanufacturing and lowered its policy rate 50 basis points. Implied yields manufacturing sectors, as well as an increase in on global interest rate futures contracts fell in the rate of unemployment, and suggested that the response to the policy rate cuts by central banks and U.S. economic slowdown could be more prolonged. the heightened expectations of additional easing. Among these data reports were the larger-than- Over this period, interest rate differentials between expected declines in the U.S. nonfarm payroll data for the United States and the euro area narrowed. The June and August. Regional economic surveys, such sharpest declines in U.S.-euro area swap spreads as the Chicago Purchasing Managers Index released occurred in the short end of the curve, with the in July and the Philadelphia Business Outlook Survey two-year U.S. swap rate falling below the two-year released in August, also pointed to ongoing contraceuro-area swap rate for the first time since the inception in manufacturing activity. The August 8 release tion of the euro. of the Federal Reserve's Beige Book was interpreted Increased expectations for slowing global growth by many as suggesting that weakness in the manuprompted investors to pull back from higher-risk facturing sector had spilled over into the broader assets. Global equity indexes and prices on corporate economy. Indications of a nascent stabilization in the debt declined broadly amid increasing pessimism U.S. manufacturing sector, represented by modest about corporate profitability worldwide. These facincreases reported in the National Association of tors, as well as the rate cuts by central banks, contrib- Purchasing Managers surveys for July and August, uted to declines in short-dated sovereign debt yields were overshadowed by ongoing concerns about U.S. and to the steepening of sovereign yield curves as corporate profitability as analysts continued to lower their earnings forecasts. 4. Global benchmark equity indexes, 2001 :Q3 Concerns about the U.S. economic outlook were mirrored in other economies as euro-area and Japanese economic data indicated further deterioration. In the euro-area countries, data showed continued declines in the manufacturing sector, particularly in Germany where factory orders fell sharply in July. Data released in August indicated the slowing pace of economic activity, as second-quarter data for German GDP were flat and showed the lowest year-on-year growth rate since 1998. In Japan, economic growth was negative in the second quarter as consumer spending and business investment remained stagnant. In this environment, many central banks eased monetary policy; from the beginning of the quarter through early September, the Federal Reserve, the ECB, and SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Treasury and Federal Reserve Foreign Exchange Operations 759 5. Volatility implied by one-month currency option prices, 1998-2001 :Q3 Percent 1998 1999 2000 2001 July Aug. Sept. SOURCE. J.P. Morgan Chase & Co. investors shifted from nongovernment, fixed-income the relatively stable behavior of spot currency rates. securities and equities into safer, more liquid assets. At the same time, market participants continued to Developments in Latin America may also have con- protect against the risk of dollar depreciation as onetributed to heightened risk aversion early in the quar- month risk reversals showed a preference for dollar ter as investors expressed ongoing concern about the puts against the euro and the yen. ability of Argentina to meet its debt-servicing obli- Expectations for near-term interest rate cuts gations. The Emerging Markets Bond Index Plus increased after September 11, as market participants (EMBI+) sovereign spread over comparable U.S. anticipated that the short-term economic effect of the Treasury securities, which had already widened con- attacks on the U.S. economy would generate sizable siderably earlier in the year, spiked higher in July. 6. U.S. and euro-area policy rates and implied yields on interest rate futures contracts, 2001 :Q3 RISK AVERSION HEIGHTENS FURTHER AFTER SEPTEMBER 11 TERRORIST ATTACKS Percent The September 11 terrorist attacks heightened con- ECB two-week minimum bid rate cern about the risks to the U.S. economy, prompting further reductions in risk positions. Against this backdrop, foreign exchange trading volumes declined, as investors were reluctant to establish new positions. Nevertheless, trading in the currency markets appeared orderly but subdued, as many New York dealers moved their activities to local contingency sites and overseas offices in the days immediately following the attacks. In addition, implied volatility July Aug. Sept. on Group of Three currency options spiked after the 2001 attacks but within days quickly declined, reflecting SOURCE. Bloomberg L.P. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

760 Federal Reserve Bulletin • December 2001 7. The dollar against the euro and the yen, 2001 :Q3 look. Increased demand among global investors for the relative safety and liquidity of shorter-dated U.S. Yen per dollar Dollars per euro (inverted scale) Treasury securities helped the dollar partially retrace earlier declines. The yen initially continued to appreciate against other major currencies, ahead of the Japanese fiscal-half-year-end, reaching a high of 116.38 yen per dollar on September 20. The exchange rate closed the quarter at 119.56 yen per dollar, however, after intervention activity by the Japanese monetary authorities late in the quarter aimed at weakening the yen. Japanese monetary authorities publicly confirmed sales of yen against dollars on September 17 and additional sales of yen on six subsequent occa- 2001 sions through the end of the quarter. SOURCE. Bloomberg L.P. After the September 11 attack, the shift out of higher-yielding markets into perceived safe-haven assets pressured the Australian and the New Zealand disruptions in business activity and sharp declines dollars, which depreciated broadly, while the Swiss in consumer confidence. In response to the increased franc strengthened against other major currencies. An uncertainty generated by the attacks, many central additional factor that boosted demand for Swiss banks lowered their policy rates. On the morning of francs was position-covering, in anticipation of Swiss September 17, before U.S. equity markets resumed franc appreciation, by investors who had borrowed trading after four days of closure, the Federal Open the currency to fund positions in higher-yielding Market Committee lowered the federal funds target assets. Investors' broad-based reductions in risk posirate 50 basis points. Later that day, the Bank of tions also prompted sharp declines in emerging- Canada, the ECB, and the Swiss National Bank also market and noninvestment-grade corporate debt. The cut rates 50 basis points. The next day, the Bank of EMBI+ sovereign spread over comparable U.S. Trea- Japan lowered its discount rate 15 basis points and sury securities reached its widest level in almost two announced an increase in its target for current account years, and U.S. high-risk corporate yield spreads bank reserves, and the Bank of England lowered its reached their highest levels since 1991. repurchase agreement rate 25 basis points. In contrast to the sharp price action in some other asset markets, the dollar traded within a relatively TEMPORARY SWAP LINES ESTABLISHED WITH narrow range from September 11 to the end of the OTHER CENTRAL BANKS quarter. The dollar was little changed on balance against the euro after the attacks, despite the To facilitate the functioning of financial markets and increased uncertainty about the U.S. economic outprovide liquidity in U.S. dollars, the Federal Reserve 8. U.S. Treasury coupon yields and federal funds target rate, 2001 :Q3 9. Foreign currency per U.S. dollar, 2001 :Q3 Percent Index: July 2 = 100 | ) 9/11 9/17 July Aug. Sept. 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 761 10. Emerging-market and U.S. high-yield spreads over U.S. Treasuries, 2001 :Q3 Discontinuation of "Treasury and Federal Reserve Foreign Exchange Operations" Basis points in the Federal Reserve Bulletin 1,000 The quarterly report "Treasury and Federal Reserve Foreign Exchange Operations," by the Federal Reserve Bank 900 of New York, will not be reprinted in the Federal Reserve Bulletin after the December 2001 issue. Each quarter's 800 report is available soon after the end of the quarter on the web site of the Federal Reserve Bank of New York (www.newyorkfed.org/pihome/news/forex/), which also — 700 Merrill Lynch high-yield spread has the reports back to 1996. The reports for years before | | 9/11 9/17 1996 are available in paper copies from the Public Infor- July Aug. Sept. mation Department, Federal Reserve Bank of New York, 2001 33 Liberty Street, New York, NY 10045 (tel. 212-720- 5424). SOURCES. J.P. Morgan Chase & Co., Merrill Lynch & Co. Other reprints will also be eliminated from the Bulletin approved the establishment of temporary reciprocal after December 2001: the monthly report on industrial swap arrangements with the ECB and the Bank of production and capacity utilization, congressional testi- England on September 12 and September 14 respec- mony, the FOMC minutes, and the Federal Reserve Bank tively. Additionally, on September 13, the Federal of New York's annual "Domestic Open Market Opera- Reserve and the Bank of Canada agreed to a tempo- tions" report (the text portion of "Open Market Operarary augmentation of the swap facility already in tions" will be reprinted in the Board's Annual Report place. Under the terms of these agreements, the ECB, rather than in the Bulletin). The documents are widely distributed when originally published, and several the Bank of England, and the Bank of Canada would sources for historical information are available. be able to draw up to $50 billion, $30 billion, and - $10 billion, respectively, in exchange for local currency. These arrangements allowed the central banks to provide dollar proceeds of the swaps to be tempo- tion Fund. The U.S. monetary authorities invest their rarily lent to local banks to facilitate the settlement foreign currency balances in a variety of instruments of their dollar transactions. The temporary swap that yield market-related rates of return and have a arrangements with the ECB and the Bank of England, high degree of liquidity and credit quality. To the as well as the augmentation with the Bank of Canada, greatest extent possible, these investments are expired after thirty days. split evenly between the Federal Reserve and the The ECB drew on its swap line on September 12, Treasury. 13, and 14. The net amount drawn totaled $5.4 billion A significant portion of the U.S. monetary authorion September 12, $14.1 billion on September 13, and ties' foreign exchange reserves is invested in Euro- $3.9 billion on September 14. As of September 17, pean and Japanese government securities held the net amount outstanding fell to zero, and there was outright or under repurchase agreement. Under eurono further swap activity through the end of the quar- denominated repurchase agreements, the U.S. moneter. The Bank of England and the Bank of Canada did tary authorities accept sovereign debt backed by the not draw on their respective swap lines during the full faith and credit of the following governments: quarter. Germany, Belgium, France, Italy, the Netherlands, and Spain. Foreign currency reserves are also TREASURY AND FEDERAL RESERVE FOREIGN invested in deposits at the Bank for International EXCHANGE RESERVES Settlements and in facilities at other official institutions. As of September 28, direct holdings of foreign The U.S. monetary authorities did not undertake any government securities totaled $13.6 billion, split intervention operations during the quarter. At the end evenly between the Federal Reserve and the Treaof the quarter, the current values of the euro and sury. Foreign government securities held under repuryen reserve holdings totaled $15.4 billion for the chase agreement totaled $2.8 billion at the end of the Federal Reserve's System Open Market Account and quarter and were also split evenly between the two $15.4 billion for the Treasury's Exchange Stabiliza- authorities. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

762 Federal Reserve Bulletin • December 2001 1. Foreign currency holdings of U.S. monetary authorities based on current exchange rates, 2001 :Q3 Millions of dollars Quarterly changes in balances, by source BBaallaannccee,, BBaallaannccee,, IItteemm JJuunnee 2299,, 22000011 Ne a t n d p u s r a c l h e a s s ' es E s ff a e le ct s 2 o f co In ll t e e c r t e e s d t 3 Revaluation 4 I a n c t c e r r u e a s l t SSeepptt.. 2288,, 22000011 and other FEDERAL RESERVE SYSTEM OPEN MARKET ACCOUNT (SOMA) Euro 6,792.0 .0 .0 87.6 501.0 .0 7,380.6 Japanese yen 7,570.2 .0 .0 .6 349.2 .0 7,920.0 Total 14,362.2 .0 .0 88.2 850.2 .0 15,300.6 Interest receivables 67.1 4.9 -6.6 65.4 Total 14,4293 .0 .0 88.2 855.1 -6.6 15,366.0 U.S. TREASURY EXCHANGE STABILIZATION FUND (ESF) Euro 6,787.0 .0 .0 86.3 500.6 7,373.9 Japanese yen 7,570.3 .0 .0 .6 349.2 7,920.1 Total 14,357.3 .0 .0 86.9 849.8 15,294.0 Interest receivables4 66.4 4.9 -5.9 65.4 Total 14,423.7 .0 .0 86.9 854.7 -5.9 15,359.4 NOTE. Balances are now stated at amortized cost. Beginning balances have 3. Current value change in foreign currency from interest collected on been restated to conform with the new presentation. Figures may not sum to matured investments. totals because of rounding. 4. Foreign currency and interest receivables are marked to market daily at 1. Purchases and sales for the purpose of this table include foreign cur- prevailing rates. rency sales and purchases related to official activity, swap drawings and repay- . . . Not applicable. ments, and warehousing. 2. This figure is calculated using marked-to-market exchange rates; it represents the difference between the sale exchange rate and the most recent revaluation exchange rate. 2. Net profits or losses (-) on US. Treasury 3. Reciprocal currency arrangements, September 28, 2001 and Federal Reserve foreign exchange operations, Millions of dollars based on historical cost-of-acquisition exchange rates, 2001 :Q3 Institution Amount of Outstanding, facility Sept. 28, 2001 Millions of dollars Reciprocal currency Federal U.S. Treasury arrangements Reserve Exchange Period and item System Open Stabilization BBaannkk ooff CCaannaaddaa 1100,,00000011 ..00 Market Account Fund BBaannkk ooff MMeexxiiccoo 33,,000000 ..00 EEuurrooppeeaann CCeennttrraall BBaannkk 5500,,00000022 ..00 Valuation profits and losses on BBaannkk ooff EEnnggllaanndd 3300,,00000022 ..00 outstanding assets and liabilities, June 29, 2001 TToottaall 9933,,000000 ..00 Euro -1,665.4 -1,881.8 Japanese yen 508.2 720.4 Federal Reserve and U.S. Treasury Exchange Stabilization Fund Total -1,157.2 -1,161.4 currency arrangements Realized profits and losses BBBaaannnkkk ooofff MMMeeexxxiiicccooo 33,,000000 ..00 from foreign currency sales, June 29, 2001-Sept. 28, 2001 TTToootttaaalll 33,,000000 ..00 Euro Japanese yen 1. Includes temporary augmentation of existing $2 billion swap arrangement. 2. Temporary thirty-day swap arrangement. Total Valuation profits and losses on outstanding assets and liabilities, Sept. 28, 2001 4. Daily European Central Bank swap facility activity, Euro 505.9 Japanese yen 349.2 September 12-15, 2001 Millions of dollars Total 855.1 Amount Date Drawings Repayments outstanding Sept. 12 5.4 .0 5.4 Sept. 13 14.147 .0 19.547 Sept. 14 3.915 14.147 9.315 Sept. 15 .0 9.315 .0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

763 Industrial Production and Capacity Utilization for October 2001 Released for publication November 16 decreased 1.2 percent in October, mining output decreased 1.3 percent, and utilities production rose 0.6 percent. The rate of capacity utilization for total In October, industrial production fell 1.1 percent, to industry fell 0.9 percentage point, to 74.8 percent, 139.3 percent of its 1992 average, and was 6.3 per- a level 7.3 percentage points below its 1967-2000 cent below its level a year ago. Manufacturing output average. Industrial production Ratio scale, 1992 = 100 145 125 105 85 Capacity utilization Percent of capacity 85 80 75 70 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 12-month percent change Percent of capacity 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

764 Federal Reserve Bulletin • December 2001 Industrial production and capacity utilization, October 2001 Industrial production, index, 1992=100 Percent change Category 2001 2001' Oct. 2000 to Julyr Aug/ Sept.r Oct/ July' Aug.r Sept.' Oct.p Oct. 2001 Total 142.7 142.2 140.8 139.3 -.1 -.4 -1.0 -1.1 -6.3 Previous estimate 142.7 141.8 140.3 -.1 -.7 -1.0 Major market groups Products, total2 132.5 131.4 130.0 128.8 .0 -.8 -1.1 -.9 -5.5 Consumer goods 122.1 121.1 120.4 120.0 .4 -.8 -.6 -.4 -2.2 Business equipment 186.5 184.2 179.3 176.2 -.3 -1.2 -2.6 -1.7 -11.9 Construction supplies 139.1 138.3 138.0 135.3 .1 -.5 -.2 -2.0 -4.9 Materials 161.1 161.6 160.3 158.2 -.2 .3 -.8 -1.3 -7.6 Major industry groups Manufacturing 147.7 146.8 145.3 143.6 .2 -.6 -1.1 -1.2 -7.3 Durable 187.5 185.9 182.6 179.2 .3 -.9 -1.8 -1.9 -9.3 Nondurable 111.6 111.2 110.9 110.6 .0 -.3 -.2 -.4 -4.9 Mining 102.4 102.8 102.7 101.3 -.9 .3 -.1 -1.3 1.2 Utilities 117.4 120.3 119.1 119.9 -2.1 2.5 -1.0 .6 -.1 Capacity utilization, percent MEMO Capacity, percent 2000 2001 change, Average, Low, High, Oct. 2000 1967-00 1982 1988-89 to Oct. July' Aug.' Sept.' Oct.P Oct. 2001 Total 82.1 71.1 85.4 82.0 77.0 76.6 75.7 74.8 2.6 Previous estimates .. 77.0 76.4 75.5 Manufacturing 81.1 69.0 85.7 81.2 75.6 75.0 74.1 73.1 2.9 Advanced processing 80.6 71.0 84.2 79.9 76.1 75.4 74.3 73.4 1.9 Primary processing . 82.2 65.7 88.3 84.5 75.8 75.3 74.7 73.6 4.8 Mining 87.4 80.3 88.0 86.3 89.3 89.7 89.7 88.6 -1.4 Utilities 87.6 75.9 92.6 89.5 85.1 86.9 85.7 86.0 4.0 NOTE. Data seasonally adjusted or calculated from seasonally adjusted 2. Contains components in addition to those shown, monthly data. r Revised, 1. Change from preceding month. p Preliminary. MARKET GROUPS other equipment declined more than 1 percent in October. The output of defense and space equipment The output of consumer goods declined 0.4 percent fell 0.5 percent but remained 1.6 percent above its in October. A drop of 2.6 percent in durable con- level a year ago. The output of construction supplies, sumer goods included sizable declines in the output which decreased 2.0 percent, showed significant of automotive products, appliances, furniture and losses in many industries, including lumber and plycarpeting goods, and miscellaneous goods. Despite wood. The production of business supplies slipped decreases in all major categories of non-energy non- 0.3 percent and was 7.7 percent below its level a year durable consumer goods (the largest being a 1.1 per- ago. cent drop in clothing output), a 2.1 percent increase The output of industrial materials declined 1.3 perin consumer energy products pushed the index for cent, its largest drop since June 1998. The output of total consumer nondurables to a 0.2 percent gain for steel and parts for motor vehicles declined substanthe month. tially in October; overall, durable materials produc- The production of business equipment, which fell tion decreased 1.8 percent, to 10 percent below its 1.7 percent in October, was nearly 12 percent lower level a year ago. The output of nondurable materials, than in October 2000. The output of transit equip- which had increased in the third quarter, fell 0.9 perment declined more than 3 percent for a third con- cent in October; most major components posted secutive month and has dropped 13.6 percent over declines. The 0.6 percent decline in the production of the past twelve months. Production indexes for infor- energy materials was mostly attributable to reducmation processing equipment and for industrial and tions in coal and crude oil output. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Industrial Production and Capacity Utilization 765 INDUSTRY GROUPS Discontinuation of "Industrial Production After having fallen 1.1 percent in September, manu- and Capacity Utilization" in the facturing output dropped 1.2 percent in October. The Federal Reserve Bulletin combined two-month decrease was last exceeded in the winter of 1981-82. Reductions were evident in "Industrial Production and Capacity Utilization" will not nearly all major industries. The production of durable be reprinted in the Federal Reserve Bulletin after the December 2001 issue. The Federal Reserve's monthly goods fell 1.9 percent in October and has declined G.17 statistical release, "Industrial Production and more than 9 percent over the past twelve months. The Capacity Utilization," which this section of the Bulletin October decline was marked by noticeable cutbacks summarizes each month, is available on the Board's web in the output of primary metals, motor vehicles and site (www.federalreserve.gov/releases/gl7/); historical parts, lumber and products, and furniture and fixdata back to 1919 are also available on the web site. The tures. The production of nondurables fell 0.4 perdata are also available in paper copies and on diskettes cent; decreases in apparel products, textile mill prod- from Publications Services, Mail Stop 127, Board of ucts, and paper and products more than offset a Governors of the Federal Reserve System, Washing- 2.9 percent increase in petroleum products. The over- ton, DC 20551 (tel. 202-452-3244). all factory operating rate declined about 1 percentage point, to 73.1 percent, and decreases appeared both in advanced-processing and primary-processing Other reprints will also be eliminated from the Bulletin industries. after December 2001: congressional testimony, the FOMC minutes, the quarterly report "Treasury and Fed- At mines, production fell 1.3 percent; the utilieral Reserve Foreign Exchange Operations," and the zation rate decreased to 88.6 percent but remained annual report "Domestic Open Market Operations," both above its long-run average. The output of utilities by the Federal Reserve Bank of New York (the text porincreased 0.6 percent; the operating rate rose 0.3 per- tion of "Open Market Operations" will be reprinted in centage point, to 86 percent, 1.6 percentage points the Board's Annual Report rather than in the Bulletin). below its long-term average. The documents are widely distributed when originally published, and several sources for historical information are available. REVISION OF INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION On November 27 at 11 a.m. eastern time, the Federal Reserve Board will publish revisions to the index of The updating of source data for IP in the 2001 industrial production (IP), to the related measures annual revision will include annual data from the of capacity and capacity utilization, and to the index 1999 Bureau of the Census Annual Survey of Manuof industrial use of electric power. The updated mea- factures and from selected editions of its 1999 and sures will reflect the incorporation of newly avail- 2000 Current Industrial Reports. Annual data from able, more comprehensive source data typical of the U.S. Geological Survey regarding metallic and annual revisions. The new source data are for recent nonmetallic minerals (except fuels) for 1999 and years, primarily 1999 and 2000, although data from 2000 will also be introduced. The updating will 1992 onward will be subject to revision. include revisions to the monthly indicator for each Industrial production and capacity utilization will industry (either physical product data, productioncontinue to be based on the 1987 Standard Industrial worker hours, or electric power usage) and to sea- Classification (SIC) until the 2002 annual revision, sonal factors. after which they will be constructed from the North Capacity and capacity utilization will be revised to American Industrial Classification System (NAICS). incorporate preliminary data from the 2000 Survey of The new NAICS-related production indexes will be Plant Capacity of the Bureau of the Census, which based on annual output measures that are constructed covers manufacturing, along with other new data on by reclassifying the establishments in historical Cen- capacity from the U.S. Geological Survey, the Departsuses of Manufactures and Mineral Industries under ment of Energy, and other organizations. The statis- NAICS; annual output indexes constructed this way tics on the industrial use of electric power will incorwill maximize the reliability and historical consis- porate additional information received from utilities tency of the IP industry detail. for the past few years and will include some data Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

766 Federal Reserve Bulletin • December 2001 from the 1997 Census of Manufactures and the 1998 data will also be available through the web site of the and 1999 Annual Survey of Manufactures. Department of Commerce. Further information on Once the revision is published, it will be these revisions is available from the Board's Indusmade available on the Board's web site trial Output Section (telephone 202-452-3197). • (www.federalreserve.gov/releases/gl7). The revised Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

767 Testimony of Federal Reserve Officials Testimony of Alan Greenspan, Chairman, Board of undiminished into the first half of October. However, Governors of the Federal Reserve System, before many retailers of other consumer goods report that the Joint Economic Committee, U.S. Congress, Octo- sales have only partially retraced the steep drops that ber 17, 2001 occurred in mid-September. Fortunately, air freight is largely back to normal. Overall airline passenger I appreciate this opportunity to appear before the traffic, while above its mid-September lows, was still Committee to discuss recent developments in the U.S. off considerably in early October from pre-attack economy. Despite the tragic events of September 11, levels. Similarly, the hospitality and entertainment the foundations of our free society remain sound, and industries have overcome some of their earlier diffi- I am confident that we will recover and prosper as we culties but continue to struggle. have in the past. The effect on financial markets of the devastating But before the recovery process gets under way, attack on the World Trade Center was pronounced, stability will need to be restored to the American as telecommunications and trading capacities were economy and to others around the world. Arguably, severely impaired. But the markets are mostly functhat stability was only barely becoming evident in the tioning normally now, and as in the past, the infra- United States in the period immediately preceding structure will be rapidly restored. the act of terrorism. For a brief time, the terrorist attacks markedly Aggregate measures of production, employment, disrupted payment transfers, leaving those counting and business spending continued to be weak in on receiving payments caught short. Those needs August. Consumer spending, however, moved higher ultimately were met by the Federal Reserve, both that month and appeared to be reasonably well through record lending at the discount window and maintained in the first part of September. Industry through an extraordinary infusion of funds through analysts suggest that motor vehicle sales were run- open market operations. To facilitate the channeling ning close to August levels, and chain store sales of dollar liquidity to foreign financial institutions were only modestly lower. New orders for nonde- operating in the United States, thirty-day currency fense capital goods stabilized in August. Moreover, swap lines were arranged with major central banks, the dramatic rate of decline in profits was slowing. To again in record volumes. It was essential in such an be sure, these signs were tentative but, on the whole, environment to meet all appropriate demands for encouraging. dollar liquidity. As repair of the financial markets and In the days following the attack, the level of activ- payment infrastructure proceeded apace, loans were ity declined significantly. The shock was most evi- repaid, open market operations could be scaled back, dent in consumer markets, as many potential purchas- the unusual swap lines were allowed to expire, and ers stayed riveted to their televisions and away from the temporarily bloated balance sheet of the Federal shopping malls. Both motor vehicle sales and sales at Reserve largely returned to normal. major chain stores fell off noticeably. The airline and But even as market functioning and liquidity flows travel industries also suffered severe cutbacks. were restored, the potential for heightened uncer- The unprecedented shutdown of American air tainty to damp household and business spending for travel and tightened border restrictions induced dra- a time persisted. To cushion these effects, we have matic curtailments of production at some establish- eased the stance of monetary policy appreciably since ments with tight just-in-time supply chain practices, September 11. most notably in the motor vehicle industry. We in the United States have assumed ourselves to As the initial shock began to wear off, economic be fairly well-insulated from terrorism or, at most, activity recovered somewhat from the depressed lev- subject to limited and sporadic episodes similar to els that immediately followed the attacks, though the those previously observed on a number of occasions recovery has been uneven. Markedly increased incen- in Europe. tives induced a sharp rebound in motor vehicle sales We have been aware of the possibility for losses on by the end of the month that has carried apparently a much greater scale. But I suspect that those possi- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

768 Federal Reserve Bulletin • December 2001 bilities were deemed so remote that they were never to predict in circumstances such as those we have seriously incorporated into most conventional assess- experienced in the past five weeks. But judging from ments of economic risk. history, human beings have demonstrated a remark- The shock of the tragedies at the World Trade able capacity to adapt to extraordinarily adverse cir- Center and the Pentagon has reshaped those assess- cumstances. And I expect the same adaptability to ments of risk and required an abrupt realignment of become evident in the present situation. prices in many markets to reflect the expected costs Although it is difficult to determine with any preciof operating in what we now recognize as a more sion, it seems quite likely that a significant repricing hostile world. These circumstances pose a difficult of risk has already found its way into our markets, as challenge for business decisionmaking, not so much many economic decisions are responding to shifting because the costs are inordinately large, but because market signals. But these adjustments in prices and the events, which have potentially substantial conse- in the associated allocation of resources, when comquences, are so uncertain. Insurance deals with this plete, represent one-time level adjustments, without problem by spreading the risk and converting poten- necessary implications for our longer-term growth tial large unknown costs into a steady stream of prospects. known insurance premiums that facilitates the for- Indeed, the exploitation of available networking ward planning so essential to an effective business and other information technologies was only partially operation. completed when the cyclical retrenchment of the past Obviously, sharp increases in insurance premiums year began. High-tech equipment investment at elefor all forms of businesses are to be expected. Some vated rates of return will, most likely, resume once higher insurance costs, in effect, will be borne implic- very high uncertainty premiums recede to more noritly rather than explicitly, as firms choose to self- mal levels. insure, at least in part, rather than lay off all of this The level of productivity will presumably undergo risk in the marketplace. a one-time downward adjustment as our economy These higher insurance costs, both explicit and responds to higher levels of perceived risk. But once implicit, endeavor to anticipate future losses. But in the adjustment is completed, productivity growth addition, they cover the physical capital and labor should resume at rates in excess of those that preresources that businesses will be required to devote vailed in the quarter-century preceding 1995. to enhanced security and to increased redundancies It is worth noting that increased production to as protection against interruption of supplies or pro- enhance security will be counted in measured output duction. For example, the degree of comfort busi- without contributing to our standards of living, as nesses have in allowing inventories to shrink to mini- was the case during our military buildup of the Cold mal levels in a just-in-time supply chain is lessened. War. Our productivity measures have always endeav- In this regard, increased security threats, not pooled ored to capture increased productive efficiency, not through insurance, have exactly the opposite effect increased well-being. We are, in effect, currently on productivity than that which is gained by an using part of our increase in efficiency to supply improvement in information technology. In addition increased security. Of course, given the heightened to the loss of human life and capital assets, these are risks we face, these investments in security are, important collateral costs associated with the new doubtless, quite sound. In any event, such costs are threats that we now face. likely to fall short of the costs we incurred for secu- The pronounced rise in uncertainty also has rity during the height of the Cold War. damped consumer spending and capital investment; Nobody has the capacity to fathom fully how the households and businesses, confronted with height- effects of the tragedy of September 11 will play out ened uncertainty, have pulled back from the market- in our economy. But in the weeks ahead, as the initial place, though that withdrawal has been partial and shock continues to wear off, we should be able to presumably temporary. The very great economic better gauge how the ongoing dynamics of these uncertainties that have arisen in the current environ- events are shaping the immediate economic outlook. ment have also, at least temporarily, resulted in a For the longer term, prospects for ongoing rapid widening of bond spreads on high-yield instruments. technological advance and associated faster produc- Markets across our economy will adjust to the tivity growth are scarcely diminished. Those prosaltered perceptions of risk that we now confront. pects, born of the ingenuity of our people and the Critical to that adjustment process is the behavior of strength of our system, fortify a promising future for consumers and business people. Behavior is difficult our free nation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 769 Testimony of Dolores S. Smith, Director, Division of source of credit. Recent estimates suggest that in Consumer and Community Affairs, Board of Gover- 2000, consumers used about 1.4 billion credit cards nors of the Federal Reserve System, before the Sub- (or roughly nine cards per holder) to purchase nearly committee on Financial Institutions and Consumer $1.5 trillion in goods and services in more than Credit of the Committee on Financial Services, U.S. 20 billion individual transactions. It is estimated that House of Representatives, November 1, 2001 at year-end 2000, consumers in the United States owed nearly $675 billion on general-purpose credit Thank you for inviting me to appear before this cards. subcommittee. I am the director of the Federal In the Fair Credit and Charge Card Disclosure Act Reserve Board's Division of Consumer and Commu- of 1988, the Congress directed the Federal Reserve nity Affairs, which carries out the Board's responsi- Board to transmit annually to the Congress a report bilities for administering a number of the consumer about the profitability of credit card operations of protection laws that make up the Consumer Credit depository institutions, a copy of which is attached Protection Act, including the Truth in Lending Act. to my testimony.1 In 2000, credit card banks—those As the subcommittee focuses on how the credit card banks established primarily to issue and service industry is treating its customers, I would like first to credit card accounts—reported net earnings before provide some background information that might be taxes of about 3.14 percent of outstanding balances useful to the subcommittee. adjusted for credit-card-backed securitization. This The Truth in Lending Act (TILA) is the primary was slightly lower than in 1999. Recent earnings on federal law that governs credit cards. It requires that credit card operations compare favorably with returns consumers be provided with disclosures about the during the mid-1990s, but they remain below their costs and terms of a credit card on or with a solicita- high point attained in 1993. tion or application, at account opening before the first The Federal Reserve has for many years sponsored transaction, and with each periodic billing statement. surveys of consumers to gather information on their TILA also requires creditors to credit accounts on the financial circumstances, including their use of differdate the consumer's payment is received; it limits ent forms of credit. The most recent Survey of consumers' liability for unauthorized use of a credit Consumer Finances shows that in 1998 almost card; and it provides procedures for resolving billing three-fourths of American families had one or more disputes. In addition to TILA, credit cards are also general-purpose or retail store credit cards. Generalsubject to various state laws that may regulate the purpose cards that have a revolving feature, often terms of the accounts. referred to as "bank-type" cards, show the most As part of the bank examination process, the notable increase, rising from 16 percent of families in Federal Reserve enforces the federal banking laws, 1970 to 68 percent in 1998. Moreover, the survey including the Truth in Lending rules, with respect to shows that the holding of bank-type credit cards has the approximately 980 state-chartered banks that are become more widespread across all income groups members of the Federal Reserve System. Other regu- over this period. For example, among families in the lators enforce these rules with respect to other insti- lower-income quintiles, holdings of bank credit cards tutions. The Board also investigates consumer com- increased from 2 percent in 1970 to 28 percent in plaints against state member banks and forwards 1998. complaints involving other creditors to the appropri- Over the past several years, competition has led to ate enforcement agencies. In addition, the Federal substantial shifts in market shares among the indus- Reserve's Division of Research and Statistics moni- try's largest issuers of credit cards. Most of the larger tors certain trends in the credit card industry. I will issuers have grown by acquisition of credit card share some observations with the subcommittee portfolios or by mergers. But several of the more based on the information that we have gathered in rapidly growing firms have recently attracted market carrying out these functions. share by offering comparatively low-rate cards and attractive balance transfer programs. Others have gained market share through co-branding and offer- GROWTH IN THE CREDIT CARD INDUSTRY 1. "The Profitability of Credit Card Operations of Deposi- Among the notable changes in consumer financial tory Institutions," June 2001. www.federalreserve.gov/boarddocs/ services over the past few decades has been the RptCongress/. Paper copies of both attachments to this testimony are available by mail from Publications Services, Mail Stop 127, Board of growth in the use of credit cards. Credit cards are Governors of the Federal Reserve System, Washington, DC 20551 used both as a means of payment and as a ready (tel. 202-452-3244). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

770 Federal Reserve Bulletin • December 2001 ing rebates or annual fee waivers. The large number suggests that consumers who currently have negative of direct mail solicitations of credit cards, some views may have developed these in part based on 3.5 billion in 2000, attests to the continuing desire of their perceptions of other consumers' difficulties, card issuers to expand and retain their cardholder rather than from the individual's own experiences. base. The response rate on credit card solicitations in Ninety-one percent of the surveyed consumers with 2000 was estimated at 0.6 percent bank-type cards agreed that they were generally satisfied in their dealings with their own credit card companies. Ninety percent agreed that their credit RECENT TRENDS IN CREDIT CARD PRICING card company treated them fairly, and 86 percent agreed that they could easily get a card from another Over the past several years, pricing practices in the company if they were not treated well. And yet, about credit card market have changed significantly. Prior 40 percent of those surveyed said that credit card use to the early 1990s, card issuers competed primarily is "bad" and that consumers would be better off if by waiving annual fees and providing credit card there were no credit cards. program enhancements. Since then, however, interest Consumers' views about their personal experirate competition has played a much more prominent ences with credit cards and their relations with their role. Many card issuers now offer a broad range of current card issuers are more favorable than their plans with differing rates, depending on credit risk opinions of the relations of consumers in general. For and consumer usage patterns. Risk-based pricing example, 88 percent of surveyed consumers agreed makes credit cards available to consumers with less- with the statement that "credit card companies make than-perfect credit histories but also makes the credit too much credit available to most people." In conmore expensive for some consumers. Many issuers trast, about 90 percent of the holders of bank-type have also moved to variable-rate pricing, with rates credit cards said that credit cards provide a useful that automatically adjust with changes in the market. service to consumers, and about 70 percent said that A general decline in credit card interest rates from most people are satisfied in their dealings with card mid-1991 is the result of many factors, including a companies. About 60 percent disagreed with the sharp drop in card issuers' cost of funds and greater statement that consumers would be better off without competition on this aspect of credit card pricing. cards. Today, credit card interest rates average about 14.6 percent. Apart from the information we have about interest rates, we have little systematic informa- CONSUMER COMPLAINTS tion about other aspects of credit card pricing. As I noted earlier, the Board investigates consumer complaints against state member banks and forwards CONSUMERS' ATTITUDES TOWARD CREDIT complaints received about other creditors to the CARDS appropriate enforcement agency. The annual volume of complaints received by the Board has been increas- The Federal Reserve has sponsored or participated ing since 1997. Complaints about credit cards have in surveys of consumers' attitudes toward, and their similarly increased, rising by 58 percent over the understanding of, credit cards. The results of some of same period. these surveys were published in an article in the In the year 2000, the Board received approxi- Federal Reserve Bulletin for September 2000, a copy mately 2,400 complaints about state member banks; of which is attached.2 a like number of complaints about other institutions Overall, consumers' opinions about the use of were referred to other enforcement agencies. About credit cards are somewhat more negative in 2000 1,000 of the 2,400 complaints processed by the than they were a generation ago, but those who Board, or about 40 percent, were complaints about actually hold bank-type cards are more favorable in credit cards. These complaints are divided into a their views than the general population. A survey in number of categories, but our review of the com- January 2000 reveals a divergence of views and plaint data shows that about 60 percent of the credit card complaints fall into three categories: disputes about billing errors; concerns about penalty charges 2. Thomas A. Durkin, "Credit Cards: Use and Consumer Atti- and other fees (such as late fees, over-the-limit fees, tudes, 1970-2000," Federal Reserve Bulletin, vol. 86 (Septemand annual fees); and disputes involving alleged ber 2000), pp. 623-34. www.federalreserve.gov/pubs/bulletin/2000/ 00index.htm errors in reporting consumers' payment history and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Testimony of Federal Reserve Officials 111 the denial of requests for credit cards due to erroneous credit reports. Discontinuation of "Testimony of Federal Reserve Officials" in the Federal Reserve Bulletin INFORMATION ABOUT CREDIT TERMS "Testimony of Federal Reserve Officials" will not be reprinted in the Federal Reserve Bulletin after the The Board has also participated in surveys that December 2001 issue. When testimony is released to looked at consumers' knowledge of credit terms and the public, it is simultaneously placed on the Board's their views concerning the availability of information web site (www.federalreserve.gov/boarddocs/testimony/), about account terms. It appears that consumer awarewhich also has testimony back to 1996. Paper copies of ness of annual percentage rates (APRs) on bank-type testimony are also available by mail from Publications credit cards has continued to rise and was measured Services, Mail Stop 127, Board of Governors of the by the survey at 85 percent of bank-type card holders. Federal Reserve System, Washington, DC 20551 (tel. The survey also gathered information on consum- 202-452-3244). ers' perception about the ease of obtaining information about credit terms. About two-thirds of consumers in the 2000 survey who had bank-type credit Other reprints will also be eliminated from the Bulletin after December 2001: the monthly report on industrial cards said that obtaining information on credit terms production and capacity utilization, the FOMC minutes, is easy; only 7 percent of holders of bank-type cards the quarterly report "Treasury and Federal Reserve believed that obtaining information on credit terms Foreign Exchange Operations" and the annual report is "very difficult." The percentages of consumers "Open Market Operations," both by the Federal Reserve holding these views about credit cards are similar to Bank of New York (the text portion of "Open Market earlier surveys about credit generally. However, about Operations" will be reprinted in the Board's Annual 60 percent of the respondents did state that they Report rather than in the Bulletin). The documents are found solicitations offering a low introductory rate to widely distributed when originally published, and several be confusing. sources for historical information are available. DISCLOSURES FOR CREDIT CARD a separate rate for cash advances, and one or more SOLICITATIONS AND APPLICATIONS "penalty rates" that apply if the consumer makes late payments. The Fair Credit and Charge Card Disclosure Act of As interest rates and other account features became 1988 amended the Truth in Lending Act to require more complex and the cost disclosures became that the APR for credit card purchases and certain longer, some card issuers chose to use reduced type other costs be disclosed in direct mail and other sizes instead of allocating additional space for the solicitations and applications to open credit and disclosures. In some cases it became difficult for charge card accounts. Prior to that, consumers gener- consumers to use the disclosure table to readily idenally were not required to be provided with cost infor- tify key costs and terms for comparison shopping. In mation until account opening. The purpose of the contrast, the promotional materials that accompany a 1988 Act was to ensure that consumers receive key credit card application or solicitation may highlight a cost information about credit and charge cards early low introductory APR in a large, easy to read type enough to have the opportunity to comparison shop. size. The rate that will apply after the introductory The act requires that the disclosures be given in the period may appear much less prominently in the form of a table, with headings. The table is required promotional material, or it may appear only in the to be in a prominent location on or with the solicita- disclosure table. The disclosure table itself may be tion or application. in a location that is less likely to capture the con- Over the years, as the pricing of credit card pro- sumer's attention—for example, on the reverse side grams has become more complex, the cost disclo- of an application or on the last page of a multi-page sures accompanying credit card solicitations have solicitation. also become more complex. Multiple APRs may Last year, the Board made changes in the regulaapply to a single program. For example, there may be tory scheme to help ensure that consumers receive a temporary introductory rate that applies to pur- meaningful disclosures on a more consistent basis. chases and balance transfers, a fixed or variable rate The Board revised its rules for credit card solicitathat applies after the temporary introductory period, tions and applications to make the required disclosure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

772 Federal Reserve Bulletin • December 2001 table more noticeable, simpler, and easier to use. table as a separate insert. We note that the bankruptcy These changes became effective on a mandatory basis reform legislation currently pending in the Congress on October 1, 2001, and consumers should now be contains a provision to address this concern and seeing improved disclosures with the credit card would require card issuers to list the permanent rate offers they receive. more prominently in promotional materials. One of the key changes requires card issuers to disclose the regular APR for purchases in at least 18-point type, under a separate heading in the disclo- ENFORCEMENT sure table, so that it is more prominent than any temporary introductory rate. The requirement that As I mentioned earlier, the Federal Reserve conducts the disclosures be "clear and conspicuous" was also compliance examinations of about 980 state member strengthened, to clarify that they must be readily banks. In terms of size, 72 percent of the banks noticeable. Disclosures automatically meet this stan- examined have total assets of $250 million or less. dard if they are in at least 12-point type. Cash For the vast majority, credit card lending is not a advance and balance transfer APRs must also be significant activity. In fact, of the banks supervised included in the table under the revised rules. by the Federal Reserve, only three banks are identi- Although the Truth in Lending rules require that a fied as having substantial credit card portfolios reprecost disclosure table be included with credit card senting 50 percent or more of the banks' total loans. solicitations, the rules generally do not regulate the In our examination of state member banks that are manner in which the account terms and features are involved in credit card lending, we have not found presented in a card issuer's promotional materials. any widespread practices that violate applicable laws Often the promotional materials highlight a low intro- or regulations. Violations have been found in only a ductory rate, while the higher rate that will apply small number of banks, and even in those cases, the when the introductory rate expires is more difficult to violations generally have been isolated in scope. • locate. Sometimes it appears only on the disclosure Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

773 Announcements FEDERAL OPEN MARKET COMMITTEE FINAL RULE ON REGULATION K REGARDING DIRECTIVE AND DISCOUNT RATE DECREASE INTERNATIONAL BANKING The Federal Open Market Committee decided on The Federal Reserve Board approved on October 17, November 6, 2001, to lower its target for the federal 2001, comprehensive revisions to Regulation K funds rate by 50 basis points to 2 percent. In a related (International Banking Operations) expanding peraction, the Board of Governors approved a 50 basis missible activities abroad for U.S. banking organizapoint reduction in the discount rate to 1 Vi percent. tions and reducing associated regulatory burdens. Heightened uncertainty and concerns about a dete- The final rule also reduces regulatory burden on rioration in business conditions both here and abroad foreign banks operating in the United States by are damping economic activity. For the foreseeable streamlining the application and notice processes. future, then, the Committee continues to believe that, The final rule reflects public comments received, against the background of its long-run goals of enactment of the Gramm-Leach-Bliley Act, and price stability and sustainable economic growth and changes to the bank regulatory environment since the of the information currently available, the risks are Board issued proposed revisions to Regulation K in weighted mainly toward conditions that may generate December 1997. economic weakness. The final rule does the following: Although the necessary reallocation of resources to enhance security may restrain advances in productiv- • Streamlines foreign branching procedures for ity for a time, the long-term prospects for produc- U.S. banking organizations tivity growth and the economy remain favorable • Authorizes expanded activities in foreign and should become evident once the unusual forces branches of U.S. banks restraining demand abate. • Implements recent statutory changes authorizing In taking the discount rate action, the Federal a bank to invest up to 20 percent of capital and Reserve Board approved the discount rate request surplus in Edge corporations submitted by the board of directors of the Federal • Expands permissible foreign activities of U.S. Reserve Bank of Richmond. banking organizations, including securities activities, The Federal Reserve Board also approved actions and investments by U.S. banking organizations under by the boards of directors of the Federal Reserve the general consent procedures Banks of New York and San Francisco, decreasing • Streamlines the application procedures applicathe discount rate at the banks from 2 percent to ble to foreign banks seeking to expand operations in 1 '/2 percent, effective immediately. In addition, the the United States Board approved action by the board of directors of • Liberalizes provisions regarding the qualification the Federal Reserve Bank of St. Louis, decreasing the of foreign banking organizations for exemptions from discount rate at that bank from 2 percent to 1V2 perthe nonbanking prohibitions of section 4 of the Bank cent, effective Wednesday, November 7, 2001. Holding Company Act The Federal Reserve Board approved on Novem- • Implements provisions of the Riegle-Neal Interber 7, 2001, actions by the boards of directors of the state Banking and Branching Efficiency Act of 1994 Federal Reserve Banks of Philadelphia, Chicago, and that affect foreign banks Minneapolis, decreasing the discount rate at the banks • Includes other changes to eliminate unnecessary from 2 percent to 1 V2 percent, effective immediately. regulatory burden and to streamline and modernize On November 8, 2001, the Federal Reserve Board Regulation K. approved actions by the boards of directors of the Federal Reserve Banks of Boston, Cleveland, Atlanta, Kansas City, and Dallas, decreasing the discount The final rule will become effective on or about rate at the banks from 2 percent to IV2 percent, November 20, 2001, within thirty days of publication effective immediately. in the Federal Register. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

774 Federal Reserve Bulletin • December 2001 REQUEST FOR COMMENT ON SUBPART D OF tions. Those nonexempt institutions with total depos- REGULATION K REGARDING INTERNATIONAL its greater than or equal to $106.9 million, up from BANKING the $101.0 million cutoff that became effective September 2001, must report their deposit levels weekly. The Federal Reserve Board requested on October 17, Those with total deposits less than $106.9 million 2001, comment on proposed revisions to Subpart D must report their deposit levels quarterly. of Regulation K governing international banking Depository institutions with total reservable liabilioperations. ties equal to or less than the exemption level of The proposal is intended to reduce the regulatory $5.7 million are not subject to detailed deposit reportburden on banking institutions engaged in interna- ing and are called exempt depository institutions. tional lending by making the requirements concern- Exempt depository institutions with total deposits of ing accounting for fees on international loans consis- $5.7 million or more file a less-detailed deposit report tent with generally accepted accounting principles. once each year. Exempt depository institutions with Comment is requested by December 1, 2001. total deposits less than $5.7 million are not required to file deposit reports. U.S. branches and agencies of foreign banks and ANNUAL ADJUSTMENTS FOR RESERVE Edge and agreement corporations must file deposit REQUIREMENTS AND DEPOSIT REPORTING reports weekly, regardless of size. For depository institutions that report weekly, the The Federal Reserve Board announced on Octo- low reserve tranche adjustment and the reservable ber 18, 2001, the annual adjustments in the amount liabilities exemption adjustment will apply to the of net transaction accounts used in the calculation reserve computation period that begins November 27, of reserve requirements and the cutoff level used 2001, and the corresponding reserve maintenance to determine the detail and frequency of deposit period that begins December 27, 2001. reporting. For institutions that report quarterly, the low All depository institutions must retain a percentage reserve tranche adjustment and the reservable liabiliof certain types of deposits in the form of vault ties exemption adjustment will apply to the reserve cash, or as a deposit in a Federal Reserve Bank, or as computation period that begins December 18, 2001, a pass-through account at a correspondent institution. and the corresponding reserve maintenance period Reserve requirements currently are assessed on the that begins January 17, 2002. depository institution's net transaction accounts (mostly checking accounts). APPROVAL OF 2002 FEE SCHEDULES FOR For net transaction accounts in 2002, the first RESERVE BANK PAYMENT SERVICES $5.7 million, up from $5.5 million in 2001, will be exempt from reserve requirements. A 3 percent The Federal Reserve Board approved on October 31, reserve ratio will be assessed on net transaction 2001, fee schedules for Federal Reserve Bank payaccounts over $5.7 million to and including ment services, effective January 2, 2002. $41.3 million, down from $42.8 million in 2001. Overall, the price level for Federal Reserve priced A 10 percent reserve ratio will be applied above services in 2002 is projected to increase 2.1 percent $41.3 million. from the 2001 level. Because of fee reductions in These annual adjustments—known as the low recent years, the overall price level has risen only reserve tranche adjustment and the reservable liabili- 3.5 percent since 1996. ties exemption adjustment—are based on growth Prices across all electronic payment services will in net transaction accounts and total reservable lia- decline 5.0 percent in 2002, a reflection of lower bilities, respectively, at all depository institutions prices for Fedwire funds and book-entry securities between June 30, 2000, and June 30, 2001. transactions. Automated clearinghouse prices, which Additionally, the Board increased the deposit were lowered in October 2001, will remain at their cutoff level that is used with the exemption level current levels. The price reductions reflect continued to determine the frequency and detail of deposit efficiencies gained from consolidating the Federal reporting. Reserve's electronic payment operations. Since 1996, Effective September 2002, depository institutions prices for all electronic payment services have with total reservable liabilities greater than the declined more than 53 percent. exemption level ($5.7 million) are subject to detailed Check service fees will increase, on average, deposit reporting and are called nonexempt institu- approximately 4 percent compared with current fees, Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 775 a reflection in part of investments in check automa- Undersecretary for Domestic Finance Peter Fisher to tion and electronic check technologies. serve in his place as a board member, and Depart- These investments should lead to greater operating ment of Transportation (DOT) Secretary Norman efficiencies at the Reserve Banks and result in long- Mineta designated DOT General Counsel Kirk run cost savings. Van Tine to serve in his place as a board member. The 2002 priced services fee schedules are avail- Chairman Greenspan, Secretary O'Neill, and able at the Federal Reserve's financial services web Secretary Mineta will continue to be available for site: www.frbservices.org. consultation. The Board also approved the 2002 private-sector The Air Transportation Stabilization Board was adjustment factor (PSAF) for Reserve Bank priced authorized by the Air Transportation Safety and Sysservices of $150.1 million and the 2002 net income tem Stabilization Act. The act, which was signed into on clearing balances (NICB) of negative $18.1 mil- law on September 22, 2001, establishes a federal loan lion, which reflect the PSAF method changes recently guarantee program to assist air carriers that suffered approved by the Board. These changes reduce the losses because of the attacks of September 11, 2001. PSAF and NICB by $56.8 million and $58.8 million, respectively, from their 2001 levels. MINUTES OF BOARD DISCOUNT RATE The PSAF is an allowance for taxes and other MEETINGS imputed expenses that would have to be paid and return on capital that would have to be earned if the The Federal Reserve Board released on October 26, Federal Reserve's priced services were provided by 2001, the minutes of its discount rate meetings from a private business. The NICB is the imputed invest- May 21, 2001, to September 17, 2001. ment income from the balances held by depository institutions to settle priced service transactions, less the related cost of earnings credits granted to the ENFORCEMENT ACTIONS institutions. The Monetary Control Act of 1980 requires the Federal Reserve to recover the costs of The Federal Reserve Board announced on Octoproviding priced payment services, including the ber 25, 2001, the issuance of a consent order of PSAF, over the long run, to promote competition assessment of a civil money penalty against the between the Reserve Banks and private-sector ser- Mcllroy Bank and Trust, Fayetteville, Arkansas, a vice providers. state member bank. The Reserve Banks project that they will recover The Mcllroy Bank and Trust, without admitting to 96.2 percent of their priced services costs, including any allegations, consented to the issuance of the operating costs and the imputed costs and target order in connection with its alleged violations of the return on equity (ROE), in 2002. Board's regulations implementing the National Flood The Reserve Banks expect to earn $955.9 million Insurance Act. The Mcllroy Bank and Trust is paying in revenue while incurring operating and imputed a civil money penalty of $10,500. costs of $900.9 million, for a net income of $55.1 million compared to a target ROE of $92.5 mil- The Federal Reserve Board announced on Novemlion. The Reserve Banks estimate that they will ber 9, 2001, the execution of a written agreement by recover 94.0 percent of their costs in 2001. During and between the Bank of Ephraim, Ephraim, Utah, the 1991-2000 period, the Reserve Banks recovered and the Federal Reserve Bank of San Francisco. 100.8 percent of the costs of priced services, including targeted ROE. DISCONTINUATION OF STATISTICAL TABLE IN THE FEDERAL RESERVE BULLETIN AGENCY DESIGNATIONS OF REPRESENTATIVES TO AIR TRANSPORTATION STABILIZATION Publication of table 1.32B, "Bankers Dollars Accep- BOARD tances," in the Financial and Business Statistics section of the Federal Reserve Bulletin will be discontin- Federal Reserve Board Chairman Alan Greenspan ued as of the December 2001 issue. The table is being designated on November 9, 2001, Governor discontinued because the data are no longer being Edward M. Gramlich to serve in his place as the collected. The data are not available elsewhere. Data chairman of the Air Transportation Stabilization through September 2000 appear in this table on Board. Treasury Secretary Paul O'Neill designated page A22 of this issue. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

776 Federal Reserve Bulletin • December 2001 PUBLICATION OF THE NOVEMBER 2001 UPDATE indirect subsidiaries. State member banks may continue to establish operations subsidiaries as previously permitted, TO THE COMMERCIAL BANK EXAMINATION without complying with the requirements of the rule for MANUAL financial subsidiaries. 5. Final Rules, Exemptions, and Interpretations Involv- The November 2001 update to the Commercial Bank ing Sections 23A and 23B of the Federal Reserve Act. Examination Manual, Supplement No. 15, has been Several new interim and final rules, exemptions, and interpublished and is now available. The Manual com- pretations are discussed that pertain to the limitations of sections 23A and 23B of the Federal Reserve Act. Certain prises the Federal Reserve System's state member limited transactions with affiliates are discussed, such as bank supervisory and examination guidance. The new transactions involving derivatives, intraday extensions of supplement includes the following subjects: credit, and transactions involving depository institution loans of which the proceeds are used to purchase securities or assets through or from depository institution affiliates. 1. Gramm-Leach-Bliley Act (GLB Act) Investment 6. Standards for Safeguarding Customer Information. Authorizations for Municipal Revenue Bonds. Effective The federal banking agencies jointly issued guidelines March 13, 2000, well-capitalized state member banks were establishing standards for safeguarding customer informaauthorized by the GLB Act to deal in, underwrite, pur- tion, which became effective July 1, 2001. The guidelines chase, and sell municipal revenue bonds without any limi- implemented sections 501 and 505 of the GLB Act. The tations relative to the bank's capital. Municipal revenue standards pertain to administrative, technical, and physical bonds are therefore treated as the equivalent of type I safeguards for customer records and information. Institusecurities for well-capitalized member banks. (See Super- tions are required to establish a written information secuvision and Regulation Letter [SR Letter] 01-13.) rity program to assess and control the risks to customer 2. FFIEC Interagency Policy Statement on the Allow- information that is appropriate for the institution's size, ance for Loan and Lease Losses Methodologies and Docu- complexity, nature, and the scope of its operations. (See mentation for Banks and Savings Institutions. The policy SR Letter 01-15.) statement, issued on July 2, 2001, is briefly summarized. It 7. Electronic Banking Examination Guidance. New clarifies the agencies' expectations for the documentation examination guidance has been developed to aid in the that supports the allowance for loan and lease losses supervisory review of electronic banking activities. For (ALLL) methodology. The statement supplements existing each safety-and-soundness examination, examiners should guidance and emphasizes the need for appropriate ALLL determine the extent to which an on-site review of elecpolicies and procedures, including an effective loan-review tronic banking activities is necessary based on the scope system. The statement provides examples of appropriate and significance of the activities relative to the size of and supporting documentation as well as illustrations on how sophistication of the institution. In general, examiners to implement the guidance. (See SR Letter 01-17.) should review electronic banking activities when these 3. Interagency Guidance on Leveraged Financing. This services are newly implemented or when an institution federal bank supervisory guidance was issued on April 9, is conducting novel activities that may pose a heightened 2001, emphasizing the sound risk management of risk. leveraged-financing practices by depository institutions. It focuses on risk rating of leveraged-finance loans and how A more detailed summary of changes is included the imputed value of a business (enterprise value) should be evaluated in the risk-rating process. Sound valuation with the update package. The Manual and updates, methodologies must be used in addition to ongoing stress including pricing information, are available from testing and monitoring of those values. (See SR Letter Publications Services, Mail Stop 127, Board of Gov- 01-9.) ernors of the Federal Reserve System, Washington, 4. Final Rule for Financial Subsidiaries. The Board DC 20551 (or charge by facsimile: 202-728-5886). approved the final rule for financial subsidiaries of state member banks on August 13, 2001. The final rule clarifies The Manual is also available on the Board's web site: that a financial subsidiary includes any of its direct or www.federalreserve.gov/boarddocs/supmanual/. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

777 Legal Developments FINAL RULE-AMENDMENT TO REGULATION A International Bancshares Corporation ("IBC"), a bank holding company within the meaning of the Bank Holding The Board of Governors is amending 12 C.F.R. Part 201, Company Act ("BHC Act"), has requested the Board's its Regulation A (Extensions of Credit by Federal Reserve approval under section 3(a)(3) of the BHC Act Banks; Change in Discount Rate), to reflect its approval of (12 U.S.C. § 1842(a)(3)) to acquire all the voting shares of a decrease in the basic discount rate at each Federal Re- National Bancshares Corporation of Texas, San Antonio serve Bank. The Board acted on requests submitted by the ("NBC"), a bank holding company, and thereby acquire Boards of Directors of the twelve Federal Reserve Banks. NBC's subsidiary bank, NBC Bank, N.A., Eagle Pass, both Effective October 2, 2001, 12 C.F.R. Part 201 is amended in Texas ("Bank").1 as follows: Notice of the proposal, affording interested persons an opportunity to submit comments, has been published Part 201—Extensions of Credit by Federal Reserve (66 Federal Register 44,637 (2001)). The time for filing Banks (Regulation A) comments has expired, and the Board has considered the proposal and all comments received in light of the factors 1. The authority citation for 12 C.F.R. part 201 continues set forth in section 3 of the BHC Act. to read as follows: IBC, with total consolidated assets of $5.8 billion, is the seventh largest commercial banking organization in Texas, Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, controlling four subsidiary banks with total deposits of 348 et seq., 357, 374, 374a and 461. $3.6 billion, representing 2 percent of total deposits of insured depository institutions in the state ("state depos- 2. Section 201.51 is revised to read as follows: its").2 NBC, with total consolidated assets of $595 million, is the 38th largest commercial banking organization in Section 201.51—Adjustment credit for depository Texas, controlling one subsidiary bank with total deposits institutions. of $510 million, representing less than 1 percent of state The rates for adjustment credit provided to depository deposits. On consummation of the proposal, IBC would institutions under section 201.3(a) are: remain the seventh largest banking organization in Texas, controlling deposits of $4.1 billion, representing 2.3 percent of total state deposits. Federal Reserve Bank Rate Effective Competitive Considerations Boston 2.0 October 2, 2001 New York 2.0 October 2, 2001 Section 3 of the BHC Act prohibits the Board from approv- Philadelphia 2.0 October 4, 2001 Cleveland 2.0 October 2, 2001 ing a proposal that would result in a monopoly or would be Richmond 2.0 October 2, 2001 in furtherance of any attempt to monopolize the business of Atlanta 2.0 October 2, 2001 Chicago 2.0 October 2, 2001 St. Louis 2.0 October 3, 2001 Minneapolis 2.0 October 3, 2001 Kansas City 2.0 October 2, 2001 1. IBC's subsidiary, NBT Acquisition Corp. ("NBTAC"), has initi- Dallas 2.0 October 2, 2001 San Francisco 2.0 October 2, 2001 ated a cash tender offer for all the issued and outstanding shares of NBC at $24.75 per share. On consummation of the proposal, NBTAC would merge with and into NBC, with NBC as the surviving entity. ORDERS ISSUED UNDER BANK HOLDING COMPANY All the nontendering shareholders would be cashed out at the same amount as offered in the tender offer and, subsequently, NBC would ACT merge with and into IBC. NBC's second-tier bank holding company, NBT of Delaware, either would be merged with IBC or dissolved, and Orders Issued Under Section 3 of the Bank Holding Bank would be merged into IBC's lead bank, International Bank of Company Act Commerce, Laredo, Texas ("IBOC-Laredo"). Some of Bank's assets and liabilities would be transferred to another IBC subsidiary bank, Commerce Bank, also in Laredo. The merger of Bank and IBOC- International Bancshares Corporation Laredo is subject to approval by the Federal Deposit Insurance Corpo- Laredo, Texas ration ("FDIC") under the Bank Merger Act, and IBC has applied to the FDIC for this approval. 2. In this context, depository institutions include commercial banks, Order Approving the Acquisition of a Bank Holding savings banks, and savings associations. Asset data are as of June 30, Company 2001, and deposit data are as of June 30, 2000. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

778 Federal Reserve Bulletin • December 2001 banking in any relevant banking market. Section 3 also largest competitor, Del Rio National Bancshares, which prohibits the Board from approving a proposed bank acqui- controls $15.5 million in deposits, representing 4.4 percent sition that would substantially lessen competition in any of market deposits. On consummation of the proposal, IBC relevant banking market, unless the Board finds that the would become the largest banking organization in the anticompetitive effects of the proposal are clearly out- Maverick County banking market, controlling $210 milweighed in the public interest by the probable effect of the lion in deposits, representing 59.4 percent of market deposproposal in meeting the convenience and needs of the its. The HHI would increase 23 points to 4352. community to be served.3 In the Laredo banking market, consummation of the IBC and NBC have depository institutions that compete proposal would increase the level of market concentration, directly in three Texas banking markets, the San Antonio as measured by the HHI, to levels that exceed the DOJ banking market, the Maverick County banking market, and Guidelines. IBC is the second largest of five banking the Laredo banking market.4 Consummation of the pro- organizations in the Laredo banking market and controls posal would be consistent with the Department of Justice deposits of approximately $1.4 billion, representing Merger Guidelines ("DOJ Guidelines")5 and Board prece- 38.8 percent of market deposits. NBC is the fifth largest dent in the San Antonio banking market. IBC would re- banking organization in the market and controls deposits of main the eighth largest banking organization on consum- $99.2 million, representing approximately 2.8 percent of mation of the proposal, and would control $475 million in market deposits. On consummation of the proposal IBC deposits, representing approximately 3.4 percent of total would remain the second largest banking organization and deposits in depository institutions in the market ("market control deposits of $1.5 billion, representing 41.6 percent deposits"). The HHI would increase 1 point to 1357.6 of market deposits. The HHI would increase 218 points In the Maverick County banking market, consummation to 4003. of the proposal also would be consistent with the DOJ As the Board has indicated in previous cases, in a market Guidelines and Board precedent, and result in little reduc- in which the measures of the competitive effects of a tion in competition in Maverick County. NBC is the largest proposal exceed the DOJ Guidelines, it will consider of five banking organizations in the Maverick County whether other factors tend to mitigate the competitive banking market, controlling 59.2 percent of market depos- effects of the proposal. The number and strength of factors its. Deposit data provided by IBC as of July 31, 2001, necessary to mitigate the competitive effects of a proposal indicate that IBC ranks fifth of five organizations in the depend on the level of market concentration and size of the banking market, controlling $714,000 in deposits, repre- increase in market concentration. senting less than 1 percent of market deposits.7 IBC has In this case, several factors appear to mitigate the potenoperated its office in this market for only four months, and tial for anticompetitive effects from the proposal in the its market share is substantially smaller than the next Laredo banking market. As compared with Texas and other MSAs in the state, the Laredo banking market is attractive for new entry based on its size, population growth rate, deposits per banking office, and deposit growth rate. The 3. 12 U.S.C. § 1842(c)(1). Laredo MSA is the ninth fastest growing MSA in the 4. The San Antonio banking market is defined as the San Antonio Metropolitan Statistical Area ("MSA") and Kendall County. The United States, having experienced a growth rate of 45 Maverick County banking market is defined as Maverick County. The percent since 1990, as compared with 23 percent for Texas Laredo banking market is defined as Webb County, which is also and 25 percent for all Texas MSAs. It has the highest ratio designated as the Laredo MSA. of deposits per banking office of any MSA market in 5. Under the revised Department of Justice Merger Guidelines, 49 Federal Register 26,823 (June 29, 1984), a market in which the Texas,8 and its rate of deposit growth since 1995 has post-merger Herfindahl-Hirschman Index ("HHI") is above 1800 exceeded substantially the average deposit growth rate for points is considered to be highly concentrated. The Department of all Texas MSAs.9 Justice has informed the Board that a bank merger or acquisition The competitive effect of the proposal on the Laredo generally will not be challenged (in the absence of other factors banking market also is mitigated by the banking market's indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. proximity to Nuevo Laredo, Mexico, which is directly The Department of Justice has stated that the higher than normal HHI across the Rio Grande, where numerous Mexican banking thresholds for screening bank mergers for anticompetitive effects firms have offices.10 Because 90 percent of Laredo's popuimplicitly recognize the competitive effects of limited-purpose lenders and other nondepository financial institutions. 6. Market share data are as of June 30, 2000, and are based on calculations in which the deposits of thrift institutions are included at 8. Deposits per banking office in Laredo, as of June 2000, totaled 50 percent. The Board previously has indicated that thrift institutions $197 million, as compared with $49 million in Texas and an average have become, or have the potential to become, significant competitors of $55 million for all Texas MSAs. of commercial banks. See BB&T Corporation, 87 Federal Reserve 9. Since 1995, the deposit growth rate in the Laredo banking market Bulletin 545 (2001); WM Bancorp, 76 Federal Reserve Bulletin 788 has increased 50 percent, as compared with 25 percent for Texas and (1990); National City Corporation, 70 Federal Reserve Bulletin 743 27 percent for other Texas MSAs. (1984). Thus, the Board has regularly included thrift deposits in the 10. In analyzing a proposal, the Board may consider the unique calculation of market share on a 50-percent weighted basis. See, e.g., characteristics of banking markets. CNB Bancshares, 80 Federal First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). Reserve Bulletin 538 (1994); Banco Popular de Puerto Rico, 79 7. IBC's only office in Maverick County opened in June 2001 and, Federal Reserve Bulletin 979 (1993); Hartford National Corporation, therefore, is not reflected in the June 30, 2000, market share data. 73 Federal Reserve Bulletin 720 (1987). In Laredo National Banc- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 779 lation is of Mexican or other Hispanic origin, and many sources and the future prospects of IBC, Bank, and IBC's residents of Laredo commute daily to Nuevo Laredo to subsidiary banks are consistent with approval, as are the work in "maquiladora"11 plants, the presence of additional other supervisory factors the Board must consider under banking alternatives in Nuevo Laredo indicates that the the BHC Act. In addition, considerations related to the competitive effects of the proposal on the Laredo banking convenience and needs of the communities to be served, market are not as significant as suggested by the market's including the records of performance under the Commu- HHI.12 nity Reinvestment Act (12 U.S.C. § 2901 et seq.) of the The Department of Justice has advised the Board that institutions involved, are consistent with approval of the consummation of the proposal would not likely have a proposal. significant adverse competitive effect in any relevant banking market. The Texas Department of Banking and the Conclusion Office of the Comptroller of the Currency were provided the opportunity to comment and did not object to consum- Based on the foregoing, and in light of all the facts of mation of the proposal. record, the Board has determined that the application After carefully reviewing all the facts of record, and for should be, and hereby is, approved. The Board's approval the reasons discussed in the order, the Board concludes that is specifically conditioned on compliance by IBC with all consummation of the proposal is not likely to result in any the commitments made in connection with the proposal. significantly adverse effects on competition or on the con- For the purpose of this action, the commitments and condicentration of banking resources in the Laredo, Maverick tions relied on by the Board in reaching its decision are County, or San Antonio banking markets. On this basis, the deemed to be conditions imposed in writing by the Board Board has determined that the competitive factors are in connection with its findings and decision and, as such, consistent with approval of the proposal. may be enforced in proceedings under applicable law. The acquisition of Bank shall not be consummated be- Other Considerations fore the fifteenth calendar day after the effective date of this order, or later than three months after the effective date The BHC Act requires the Board, in acting on an applica- of this order, unless such period is extended for good cause tion, to consider the financial and managerial resources and by the Federal Reserve Bank of Dallas, acting pursuant to future prospects of the companies and banks involved, the delegated authority. convenience and needs of the communities to be served, By order of the Board of Governors, effective Octoand certain supervisory factors.13 The Board has reviewed ber 26, 2001. these factors in light of the record, including supervisory reports of examination assessing the financial and manage- Voting for this action: Chairman Greenspan, Vice Chairman Fergurial resources of the organizations, and financial informa- son, and Governors Kelley, Meyer, and Gramlich. tion provided by IBC. Based on all the facts of record, the Board concludes that the financial and managerial re- ROBERT DEV. FRIERSON Deputy Secretary of the Board shares, Inc., 78 Federal Reserve Bulletin 139 (1992), the Board North Fork Bancorporation, Inc. considered various factors that make the Laredo banking market Melville, New York unique. 11. "Maquiladoras" are assembly plants in Mexico. Parts or raw Order Approving the Acquisition of a Bank materials are shipped from the United States duty-free to these plants, which complete the production process. Finished products are then shipped back to the United States and are charged a reduced duty. North Fork Bancorporation, Inc. ("North Fork"), a bank 12. The six largest Mexican banking institutions maintain numerous holding company within the meaning of the Bank Holding branches in Nuevo Laredo, providing competition for Laredo financial Company Act ("BHC Act"), has requested the Board's institutions that is not accounted for in the standard HHI analysis. As a approval under section 3 of the BHC Act, result of its recent acquisition of Grupo Financiero Banamex Accival, S.A. de C.V., Mexico City, Mexico, Citigroup Inc., New York, New 12 U.S.C. § 1842, to acquire all the voting shares of Com- York, has the most branches in Nuevo Laredo with a total of mercial Bank of New York, New York, New York ("Com- 11 branches. Citigroup Inc., 87 Federal Reserve Bulletin 613 (2001). mercial Bank").1 13. The Board received one comment on the application, which concerned the valuation of NBC and alleged that the stock solicitation materials distributed to NBC's shareholders were deficient. The Board has no authority to regulate the offering price for bank stock acquired under the BHC Act. Western Bancshares, Inc. v. Board of Governors 1. Immediately after North Fork's acquisition of Commercial Bank, of the Federal Reserve System, 480 F.2d 749 (10th Cir. 1973). Because North Fork's lead subsidiary bank, North Fork Bank, Melville, New the comment raised an issue about compliance with the securities York, a state-chartered nonmember bank, would acquire substantially laws, however, it was forwarded to the appropriate regulatory agency, all Commercial Bank's assets and assume substantially all Commerthe Securities and Exchange Commission. The commenter also al- cial Bank's liabilities. Thereafter, Commercial Bank would be a leged that a group of persons might have acquired control of NBC in wholly owned subsidiary of North Fork, would not engage in the violation of the BHC Act or the Change in Bank Control Act business of banking or in any other business, and would engage only (12 U.S.C. § 1817(j)), but the commenter provided no evidence to in concluding up its business. On October 11, 2001, the Federal support the allegation, and it was not supported by the facts of record. Deposit Insurance Corporation ("FDIC") and the New York State Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

780 Federal Reserve Bulletin • December 2001 Notice of the proposal, affording interested persons an Hirschman Index ("HHI") would increase by 1 point to opportunity to submit comments, has been published 7151, the market would remain unconcentrated, and nu- (66 Federal Register 35,639, and 38,279 (2001)). The time merous competitors would remain in the market.6 Based on for filing comments has expired, and the Board has consid- these and all other facts of record, the Board concludes that ered the proposal and all comments received in light of the consummation of the proposal would not result in any factors set forth in section 3 of the BHC Act. significantly adverse effects on competition or on the con- North Fork, with total consolidated assets of approxi- centration of banking resources in the New York banking mately $15 billion, operates subsidiary banks in New York market or any other relevant banking market. and Connecticut. North Fork is the 13th largest depository organization in New York, controlling deposits of approxi- Convenience and Needs Considerations mately $8.8 billion, representing 2 percent of total deposits in depository institutions in the state ("state deposits").2 In acting on proposals under section 3 of the BHC Act, the North Fork also is the 45th largest depository organization Board is required to consider the elfects of the proposal on in Connecticut, controlling deposits of approximately the convenience and needs of the communities to be served $147 million, representing less than 1 percent of state and take into account the records of the relevant depository deposits. Commercial Bank, with total assets of approxi- institutions under the Community Reinvestment Act mately $1.46 billion, is the 44th largest depository organi- ("CRA").7 The CRA requires the federal financial supervization in New York, controlling total deposits of $975 mil- sory agencies to encourage financial institutions to help lion, representing less than 1 percent of state deposits. On meet the credit needs of local communities in which they consummation of the proposal, North Fork would remain operate, consistent with safe and sound operation, and the 13th largest depository organization in New York, requires the appropriate federal supervisory agency to take controlling deposits of approximately $9.8 billion, repre- into account an institution's record of meeting the credit senting 2.2 percent of state deposits. needs of its entire community, including low- and moderate-income ("LMI") neighborhoods, in evaluating Competitive Considerations bank expansion proposals. The Board has carefully considered the convenience and needs factor and the CRA perfor- Section 3 of the BHC Act prohibits the Board from approv- mance records of North Fork's subsidiary depository instiing a proposal that would result in a monopoly or would be tutions and of Commercial Bank in light of all the facts of in furtherance of any attempt to monopolize the business of record, including a public comment received on the effect banking in any relevant banking market. The BHC Act also the proposal would have on the communities to be served prohibits the Board from approving a proposed bank acqui- by the combined organization. sition that would substantially lessen competition in any relevant banking market, unless the Board finds that the A. CRA Performance Examinations anticompetitive effects of the proposal clearly are outweighed in the public interest by the probable effect of the As provided in the CRA, the Board evaluates an instituproposal in meeting the convenience and needs of the tion's record of performance under the CRA in light of community to be served.3 examinations conducted by the appropriate federal supervi- North Fork and Commercial Bank compete directly in sory agency. An institution's most recent CRA perforthe Metropolitan New York/New Jersey banking market mance evaluation is a particularly important consideration ("New York banking market").4 On consummation of the in the application process, because it represents a detailed proposal, North Fork would become the eighth largest on-site evaluation of the institution's overall record of depository organization in the New York banking market, controlling deposits of $9.8 billion, representing approximately 5.4 percent of market deposits.5 The Herfindahlthe deposits of thrift institutions are included at 50 percent. The Board Banking Department ("NYSBD") approved applications by North previously has indicated that thrift institutions have become, or have Fork Bank in connection with this transaction. the potential to become, significant competitors of commercial banks. 2. Asset data are as of March 31, 2001, and state deposit and See WM Bancorp, 76 Federal Reserve Bulletin 788 (1990); National ranking data are as of June 30, 2000. In this context, depository City Corporation, 70 Federal Reserve Bulletin 743 (1984). institutions include commercial banks, savings banks, and savings 6. Under the revised Department of Justice Merger Guidelines, 49 associations. Federal Register 26,823 (June 29, 1984), a market in which the 3. 12 U.S.C. § 1842(c)(1). post-merger HHI is less than 1000 points is considered to be uncon- 4. The New York banking market is defined as Bronx, Dutchess, centrated. The Department of Justice has informed the Board that a Kings, Nassau, New York, Orange, Putnam, Queens, Richmond, bank merger or acquisition generally will not be challenged (in the Rockland, Suffolk, Sullivan, Ulster, and Westchester Counties in New absence of other factors indicating anticompetitive effects) unless the York; Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, post-merger HHI is at least 1800 and the merger increases the HHI by Morris, Ocean, Passaic, Somerset, Sussex, Union, Warren, and a more than 200 points. The DOJ has stated that the higher than normal portion of Mercer Counties in New Jersey; Pike County in Pennsylva- HHI thresholds for screening bank mergers for anticompetitive effects nia; and portions of Fairfield and Litchfield Counties in Connecticut. implicitly recognize the competitive effects of limited-purpose lenders 5. Market share data are as of June 30, 2000, updated for transac- and other nondepository financial institutions. tions through October 5, 2001, and are based on calculations in which 7. 12 U.S.C. § 2901 et seq. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 781 performance under the CRA by its appropriate federal family loans the bank originated in its assessment area supervisor.8 during the evaluation period were in LMI census tracts.12 North Fork's lead subsidiary bank, North Fork Bank, Data show a substantial increase over the past two years received an overall rating of "outstanding" at its most in the number and total dollar amount of the bank's small recent CRA performance evaluation by the FDIC, as of business loans (loans in amount of $1 million or less) in the September 1999 ("1999 Evaluation").9 Commercial Bank Bronx.13 In 1999, the bank made 42 such loans, totaling received an overall rating of "satisfactory" at its most more than $6.3 million, and in 2000, the bank made recent CRA performance evaluation by the FDIC, as of 125 such loans, totaling more than $12.3 million. North April 2000 ("2000 Evaluation"). Fork Bank has represented that in the first six months of 2001, it made 160 such loans, totaling $9.1 million. The B. North Fork Bank's CRA Performance Record Board also has considered that North Fork Bank provides significant multifamily housing credit and other types of Lending. As part of the 1999 Evaluation, examiners rated credit throughout its assessment area. the lending activities of North Fork Bank "outstanding." Examiners stated that North Fork Bank had developed Examiners described North Fork Bank's record of lending credit products and practices to meet community credit in its assessment area as very strong, noting that 85 percent needs and had focused its efforts on increasing homeownerof the HMDA-related loans the bank originated during the ship opportunities for LMI individuals. Examiners reported evaluation period were in the bank's assessment area.10 that the bank's Affordable Housing Program II was limited Examiners characterized North Fork Bank's record of to applicants with incomes of 80 percent or less of the area lending in LMI census tracts in its assessment area as median family income and featured down payments as low excellent, and described the bank's record of lending to as 3 percent, below-market interest rates, and no points, borrowers of different income levels as satisfactory. During application or underwriting fees, or private mortgage insurthe evaluation period, 29.8 percent of North Fork Bank's ance reserves.14 The bank also offered affordable mortgage 1-^4 family HMDA-related loans were made in LMI census products to LMI borrowers through programs of the Fedtracts. By comparison, lenders in the aggregate made eral National Mortgage Association ("Fannie Mae") and 13.5 percent of their HMDA-related loans in LMI census the State of New York Mortgage Association. tracts in 1997 and 12.5 percent in 1998.11 Approximately The 1999 Evaluation found that North Fork Bank's 22.6 percent of North Fork Bank's 1-4 family HMDA- community development lending during the evaluation perelated loans during the evaluation period were made to riod totaled approximately $400 million, which constituted LMI borrowers, compared with 12.4 percent for lenders in 7 percent of the bank's outstanding loans. This lending the aggregate in 1997 and 12.7 percent in 1998. included renewal of a $1.8 million line of credit to rehabil- Examiners reported that North Fork Bank's level of itate more than 70 housing units in an LMI section of multifamily lending activity steadily increased during the evaluation period, and totaled more than $759 million. 12. The commenter asserted that North Fork Bank failed to origi- More than 97 percent of the 616 multifamily loans the nate adequate numbers of 1-4 family mortgage loans in LMI areas of bank originated during the evaluation period were in the Brooklyn, the Bronx, and Manhattan. Although the Board has recogbank's assessment area. Although 40.1 percent of all multi- nized that banks help serve the banking needs of communities by family housing properties in North Fork Bank's assessment making a variety of products and services available, the CRA does not require an institution to participate in any specific loan programs or area were in LMI census tracts, 52.8 percent of the multiprovide any specific types of products and services in its assessment area. Data from the 2000 Census show that 72.9 percent of all occupied housing units in Brooklyn are renter-occupied, as are 8. Interagency Questions and Answers Regarding Community Rein- 80.4 percent of such housing units in the Bronx, and 79.9 percent of vestment, 66 Federal Register 36,620 and 36,640 (2001). such housing units in Manhattan. In 2000, North Fork Bank made 9. North Fork also owns Superior Savings of New England National 23 HMDA-reportable multifamily loans in Brooklyn, totaling Association, Branford, Connecticut ("Superior"). As of March 31, $15.1 million, and 19 MECA loans, totaling $21 million. The bank 2001, Superior reported assets of $280 million, accounting for approx- made 7 HMDA-reportable multifamily loans in the Bronx in 2000, imately 1.9 percent of North Fork's total assets. Superior received a totaling $8.2 million, and 16 MECA loans, totaling $44.9 million. In "satisfactory" CRA performance rating from the FDIC, as of May Manhattan in 2000, North Fork Bank made 26 HMDA-reportable 1996, when Superior was doing business as Branford Savings Bank multifamily loans, totaling $33.5 million, and 26 MECA loans, total- ("1996 Evaluation"). North Fork acquired Superior in December ing $42.9 million. In this context, a MECA loan is a Modification, 1997, and Superior converted to a national charter, as of July 2000. Extension, and Consolidation Agreement, under which a lender and a The Office of the Comptroller of the Currency designated Superior as borrower agree to modify the terms of an existing loan by, for a wholesale bank in June 2000. Superior has not been examined for example, extending the final repayment date. A MECA loan does not CRA performance since the 1996 Evaluation. involve lending additional money and is not reported under HMDA, 10. The 1999 Examination covered the evaluation period of June 1, but achieves the same results as a loan purchase or loan refinancing 1997 to June 30, 1999. In this context, "HMDA-related loans" refers and may be considered in evaluating an institution's CRA perforto loans reportable under the Home Mortgage Disclosure Act, mance. See Interagency Questions and Answers Regarding Commu- 12 U.S.C. § 2801 et seq., and includes home purchase mortgage loans, nity Reinvestment, 66 Federal Register at 36,632 (2001). home improvement loans, and refinancings of such loans. 13. The commenter asserted that North Fork Bank's level of small 11. In this context, loans made by lenders in the aggregate refers to business lending in the Bronx is inadequate and should correspond all HMDA-related loans, except multifamily loans, made in North more closely to the bank's level of deposits in that area. Fork Bank's assessment area by all lenders required to report under 14. The Affordable Housing Program II is restricted to properties in HMDA. New York City and Rockland and Westchester Counties. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

782 Federal Reserve Bulletin • December 2001 Harlem, origination of an $800,000 mortgage to develop Investment. Examiners rated Commercial Bank "high 12 housing units in an LMI area in Brooklyn, and a number satisfactory" under the investment test. The bank's qualiof other projects in Brooklyn and the Bronx. fied community development investments during the eval- Investment. Examiners rated North Fork Bank "high uation period totaled more than $3.5 million, which insatisfactory" under the investment test. Examiners re- cluded an investment of more than $3 million in mortgageported that the bank's community development invest- backed securities collateralized by mortgages to LMI ments in its assessment area totaled more than $31 million borrowers. Commercial Bank also made $56,250 in grants from March 1997 through September 1999. The bank's during the evaluation period to community development community development activities included investments of organizations in its assessment area. more than $17 million in two Fannie Mae mortgage- Service. Examiners rated Commercial Bank "low satisbacked securities collateralized by a multifamily property factory" under the service test. As of the date of the in Manhattan where more than 90 percent of the tenants examination, 28.6 percent of the bank's branches were in receive section 8 housing assistance.15 The bank also in- LMI census tracts, a distribution examiners characterized vested more than $12 million in a trust backed by pool of as reasonable. Examiners stated that Commercial Bank's second mortgages to low-income borrowers throughout products and services were reasonably available to all New York City. The bank provided more than $280,000 in segments of the bank's assessment area, including LMI grants to community development organizations during the areas. Examiners characterized the bank's level of commuevaluation period. nity development services as relatively low, considering Service. Examiners rated North Fork Bank "high satis- Commercial Bank's size and resources. factory" under the service test. Examiners characterized the bank's branch distribution among LMI census tracts D. Conclusion on Convenience and Needs as reasonable, reporting that 20 percent of the bank's Considerations 110 branches were in LMI areas. During the evaluation period, the bank opened three branches, including one in a The Board has carefully considered all the facts of record, low-income census tract, and closed nine branches, includ- including reports of examination of CRA performance of ing two in moderate-income tracts. Examiners stated that the institutions involved, other information provided by the bank actively provided financial literacy programs to North Fork and Commercial Bank, and all comments reschool children, senior citizens, and LMI adults. The bank ceived and responses to the comments. As part of the also developed and implemented a program to provide proposal, North Fork Bank would acquire substantially all financial literacy and job training to students at Bushwick the assets of Commercial Bank, and North Fork Bank High School in Brooklyn and sponsored more than would apply its CRA program to the operations it would 35 homebuying fairs during the evaluation period. acquire from Commercial Bank. North Fork also has represented that North Fork Bank offers a broader array of C. Commercial Bank's CRA Performance Record products and services than Commercial Bank does, and that the transaction would enable North Fork Bank to offer Lending. As part of the 2000 Evaluation, examiners rated these products and services to Commercial Bank's domes- Commercial Bank's lending activities "low satisfactory". tic customers. Based on a review of the entire record, and Examiners reported that 99 percent by number and dollar for the reasons discussed above, the Board concludes that amount of the bank's small business loans were made to the CRA performance records of the institutions involved entities in the bank's assessment area.16 During the evalua- are consistent with approval of the proposal. tion period, Commercial Bank originated 45.9 percent of its small business loans to firms in LMI census tracts, Financial, Managerial, and Other Supervisory Factors compared with 14.7 percent for lenders in the aggregate in both 1997 and 1998.17 However, the bank made Section 3 of the BHC Act requires the Board to consider 11.6 percent of its small business loans in its assessment the financial and managerial resources and future prospects area to businesses with gross annual revenues of $1 million of the companies and banks involved in the proposal and or less, which examiners characterized as less than satisfac- certain other supervisory factors. The Board has considtory. ered these factors carefully in light of all the facts of record, including reports of examination and other confidential supervisory information assessing the financial and 15. The section 8 program provides rent subsidies directly to managerial resources of the organizations and other inforlandlords on behalf of very low-income families, the elderly, and the mation provided by North Fork and Commercial Bank. disabled. The program is administered by local public housing agen- In evaluating financial factors in expansion proposals by cies using funds from the United States Department of Housing and Urban Development. banking organizations, the Board consistently has consid- 16. The 2000 Examination covered the evaluation period of June 10, ered capital adequacy to be especially important.18 The 1998, through April 10, 2000, but considered Commercial Bank's record of small business lending in 1997, 1998, and 1999. 17. In this context, loans made by lenders in the aggregate refers to all small business loans made in Commercial Bank's assessment area 18. See, e.g., Chemical Banking Corporation, 82 Federal Reserve by lenders required to report small business loan data under the CRA. Bulletin 239 (1996). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 783 Board notes that North Fork, its subsidiary depository has considered all the facts of record in light of the factors institutions, and Commercial Bank are, and on consumma- that it is required to consider under the BHC Act and other tion of the proposal would remain, well capitalized under applicable statutes. the relevant regulations of the banking agencies. North The Board's approval is specifically conditioned on com- Fork would not incur any debt as a result of the transaction. pliance by North Fork with all the commitments made in The Board also has considered the managerial resources connection with the application. These commitments and of North Fork and Commercial Bank and the examination conditions are deemed to be conditions imposed in writing reports of the federal banking agencies that supervise these by the Board in connection with its findings and decision organizations, including their subsidiary depository institu- and, as such, may be enforced in proceedings under applitions. The Board notes that Commercial Bank recently cable law. entered into cease and desist orders with the NYSBD and This transaction shall not be consummated before the the FDIC and agreed to pay the NYSBD a penalty of fifteenth calendar day after the effective date of this order, $4.25 million because of the bank's failure to maintain or later than three months after the effective date of this processes and procedures to ensure detection and reporting order, unless such period is extended for good cause by the of suspicious activities. Commercial Bank also entered into Board or by the Federal Reserve Bank of New York, acting a similar agreement with the Attorney General of the State pursuant to delegated authority. of New York and agreed to pay the Attorney General By order of the Board of Governors, effective Octo- $750,000 to cover costs of the investigation. ber 24, 2001. North Fork has represented that substantially all Commercial Bank's business attributable to the bank's Interna- Voting for this action: Chairman Greenspan, Vice Chairman Fergutional Private Banking Group would be discontinued be- son, and Governors Kelley, Meyer, and Gramlich. fore consummation of the proposal. North Fork has stated that any of Commercial Bank's international deposit ac- ROBERT DEV. FRIERSON Deputy Secretary of the Board counts that are not closed before consummation would be terminated at consummation or shortly thereafter. The Board also has reviewed North Fork's policies and procedures for compliance with the requirements of the Bank Secrecy Act ("BSA")19 and has received extensive ORDERS ISSUED UNDER BANK MERGER ACT information from North Fork about its plans for ensuring its future compliance with BSA requirements with respect Mcllroy Bank & Trust to deposit accounts and other business acquired from Com- Fayetteville, Arkansas mercial Bank. North Fork has indicated that it will imple- Order Approving the Merger of Banks ment its BSA compliance policies and procedures at Commercial Bank's offices. The Board notes that the FDIC and Mcllroy Bank & Trust ("Mcllroy"), a state member bank, the NYBSD have evaluated North Fork Bank's policies has requested the Board's approval under section 18(c) of and procedures, and the Board has consulted with the the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) FDIC and the NYSBD about the adequacy of these policies (the "Bank Merger Act") to merge with Central Bank and and procedures. Trust, Little Rock ("Central"); The Farmers & Merchant Based on the foregoing and all the facts of record, Bank, Prairie Grove ("F&M"); and Springdale Bank & including confidential reports of examination and other Trust, Springdale ("Springdale"), all in Arkansas.1 Mcllsupervisory information, the Board has concluded that roy also has sought approval under section 9 of the Federal considerations relating to the financial and managerial re- Reserve Act (12 U.S.C. § 321) to establish branches at the sources of North Fork and Commercial Bank are consistent locations of the main offices and branches of Central, with approval, as are the other supervisory factors the F&M, and Springdale.2 Board must consider under section 3 of the BHC Act. Notice of the applications, affording interested persons an opportunity to submit comments, has been given in Conclusion accordance with the Bank Merger Act and the Board's Based on the foregoing and all the facts of record, the Board has determined that the proposal should be, and hereby is, approved.20 In reaching its conclusion, the Board extensive written comments that the Board has considered carefully in acting on the proposal. Based on a review of all the facts of record, the Board has concluded that the record in this case is sufficient to warrant action at this time, and that an extension of the comment period is not 19. 31 U.S.C. §5311 etseq. warranted. 20. The commenter requested that the Board extend the comment period on the proposal. The Board has accumulated a significant 1. Mcllroy, Central, Springdale, and F&M are wholly owned subsidrecord in this case, including reports of examination, supervisory iaries of Arvest Bank Group, Inc., Bentonville, Arkansas. On compleinformation, public reports and information, and public comment. In tion of the mergers, Mcllroy would change its name to Arvest Bank. the Board's view, the public has had ample opportunity to submit 2. The branches to be acquired by Mcllroy are listed in the Appencomments on the proposal and, in fact, the commenter has submitted dix. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

784 Federal Reserve Bulletin • December 2001 Rules of Procedure (12 C.F.R. 262.3(b)). As required by sory reports and reports of examination assessing the manthe Bank Merger Act, reports on the competitive effects of agerial resources and financial condition of the banks inthe acquisitions were requested from the United States volved in the transaction. The Board notes that Mcllroy, Attorney General and the other federal banking agencies. without admitting to any of the allegations against it, The time for filing comments has expired, and the Board consented to a civil money penalty of $10,500 in connechas considered the applications and all facts of record in tion with alleged violations of the National Flood Insurlight of the factors set forth in the Bank Merger Act. ance Act of 1968, 42 U.S.C. §§ 4001-4129 ("1968 Act"). In reviewing the applications, the Board has considered Competitive Considerations the steps that Mcllroy has taken to address the matters giving rise to the alleged violations and to monitor compli- The Bank Merger Act prohibits the Board from approving ance with the 1968 Act. On the basis of all the facts of an application if the proposal would result in a monopoly record, including the foregoing, the Board concludes that or would be in furtherance of an attempt to monopolize the considerations relating to the financial and managerial rebusiness of banking.3 The Bank Merger Act also prohibits sources and future prospects of the institutions involved the Board from approving a proposal that would substan- are consistent with approval. tially lessen competition or tend to create a monopoly in any relevant market, unless the Board finds that the anticompetitive effects of the proposed transaction are clearly Conclusion outweighed in the public interest by the probable effects of the transaction in meeting the convenience and needs of Mcllroy has also applied under section 9 of the Federal the community to be served.4 Mcllroy's proposal involves Reserve Act to establish branches at the current main consolidation of four banks that are affiliates in the same offices and branches of Central, F&M, and Springdale. The banking organization and, therefore, would not lessen com- Board has considered the factors it is required to consider, petition in any relevant market. The Board has received no and for the reasons discussed in this order, finds those objections to the proposal from the Department of Justice factors to be consistent with approval. or from the other federal banking agencies. Based on the Based on the foregoing and all the facts of record, the record, the Board concludes that consummation of the Board has determined that these applications should be, proposed transaction would not be likely to result in a and hereby are, approved. The Board's approval is specifisignificantly adverse effect on competition or on the concally conditioned on compliance by Mcllroy with all the centration of banking resources in any banking market, and commitments made in connection with these applications. that competitive factors are consistent with approval. For purposes of this action, the commitments and conditions relied on in reaching this decision are conditions Convenience and Needs Considerations imposed in writing by the Board and, as such, may be enforced in proceedings under applicable law. The Bank Merger Act requires the Board to consider the The transactions may not be consummated before the convenience and needs of the communities to be served. fifteenth calendar day after the effective date of this order, The Board has long held that consideration of the conve- or later than three months after the effective date of this nience and needs factor includes a review of the records of order, unless such period is extended by the Board or by performance of the relevant depository institutions under the Federal Reserve Bank of St. Louis, acting pursuant to the Community Reinvestment Act of 1977 (the "CRA").5 delegated authority. The Board notes that Central, F&M, Mcllroy, and Spring- By order of the Board of Governors, effective Octodale received "satisfactory" ratings at their most recent ber 31, 2001. examinations for CRA performance. Based on all the facts of record, the Board concludes that the convenience and Voting for this action: Chairman Greenspan, Vice Chairman Ferguneeds considerations are consistent with approval of the son, and Governors Kelley and Meyer. Absent and not voting: Goverproposal. nor Gramlich. Financial, Managerial, and Other Supervisory ROBERT DEV. FRIERSON Considerations Deputy Secretary of the Board The Board also has considered the financial and managerial resources and future prospects of the institutions in- Appendix volved in this proposal. The Board has reviewed these factors in light of all the facts of record, including supervi- Branches to Be Acquired by Mcllroy Bank & Trust in Arkansas 3. 12 U.S.C. § 1828(c)(5)(A). 4. 12 U.S.C. § 1828(c)(5)(B). 5. 12 U.S.C. §§2901-2908. 1. Branches to Be Acquired from Central Bank & Trust Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 785 3217 North Reynolds Road, Bryant1 Bank, with consolidated assets of approximately $56 bil- 10221 North Rodney Parham, Little Rock lion,1 is the second largest savings bank2 and parent of the 1320 Rebsamen Park Road, Little Rock fourth largest banking group in Spain. Bank is a not-for- 1501 South Main, Little Rock profit organization, offering retail and commercial banking 1123 South University, Suite 100, Little Rock services throughout Spain.3 The control commission is 801 Technology Drive, Little Rock composed of 13 members elected by the general assembly. 3711 McCain Boulevard, North Little Rock Bank also engages in securities, insurance, asset management, real estate development, information management, 2. Branches to Be Acquired from The Farmers & mining, and health care activities through a number of Merchant Bank domestic subsidiaries. Outside Spain, Bank operates branches in Portugal and Ireland. It also has a representa- 110 East Main, Farmington tive office and an interest in a finance company in Cuba. 317 East Pridemore Drive, Lincoln2 Bank currently does not have any operations in the United 102 East Buchanan, Prairie Grove States. 164 North Centennial, West Fork The proposed agency would offer deposits, loans, guarantees, personal banking, and investment management ser- 3. Branches to Be Acquired from Springdale Bank & vices to existing and potential customers, including Span- Trust ish and multinational corporations, financial institutions, and governments. It also would seek to develop business in Highway 412 West, Hindsville Latin America. 104 South Hughes, Huntsville In order to approve an application by a foreign bank to 1301 East Robinson, Springdale establish an agency in the United States, the IBA and 2004 South Pleasant Street, Springdale Regulation K require the Board to determine that the 2012 South Pleasant Street, Springdale foreign bank applicant engages directly in the business of 415 West Emma Avenue, Springdale banking outside of the United States, and has furnished to 3950 West Sunset Avenue, Springdale the Board the information it needs to assess the application adequately. The Board also shall take into account whether the foreign bank and any foreign bank parent is subject to ORDERS ISSUED UNDER INTERNATIONAL BANKING comprehensive supervision or regulation on a consolidated ACT basis by its home country supervisor (12 U.S.C. § 3105(d)(2); 12 C.F.R. 211.24).4 Caja de Ahorros y Monte de Piedad de Madrid Madrid, Spain 1. Asset data are as of June 30, 2001. Order Approving Establishment of an Agency 2. As a savings bank, Bank is required to channel part of its annual profits to social and cultural projects in the communities in which it Caja de Ahorros y Monte de Piedad de Madrid ("Bank"), operates. There is no minimum legal requirement for such contribu- Madrid, Spain, a foreign bank within the meaning of the tions. International Banking Act ("IBA"), has applied under sec- 3. Bank does not have shareholders. Its operations are controlled and governed by three bodies: a general assembly, a board of direction 7(d) of the IBA (12 U.S.C. § 3105(d)) to establish an tors, and a control commission. The 320-member general assembly agency in Miami, Florida. The Foreign Bank Supervision includes representatives of the municipalities in which Bank operates Enhancement Act of 1991, which amended the IBA, pro- (40 percent), Bank's depositors (35 percent), the parliament of the vides that a foreign bank must obtain the approval of the Community of Madrid (15 percent), and Bank's employees (10 per- Board to establish an agency in the United States. cent). Bank's board of directors is composed of 22 members, proportionally representing the groups comprising the general assembly. Notice of the application, affording interested persons an 4. In assessing this standard, the Board considers, among other opportunity to comment, has been published in a newspa- factors, the extent to which the home country supervisors: per of general circulation in Miami, Florida (Miami Her- (i) Ensure that the bank has adequate procedures for monitoring and ald, June 18, 2001). The time for filing comments has controlling its activities worldwide; (ii) Obtain information on the condition of the bank and its subsidiarexpired, and all comments have been considered. ies and offices through regular examination reports, audit reports, or otherwise; (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; (iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis; 1. This branch is operating from a temporary facility at 3018 (v) Evaluate prudential standards, such as capital adequacy and risk Horizon Drive, also in Bryant. It will be relocated after construction asset exposure, on a worldwide basis. on the North Reynolds Road branch is completed. These are indicia of comprehensive, consolidated supervision. No 2. This branch has received regulatory approval, but has not com- single factor is essential, and other elements may inform the Board's menced operations. determination. The Board may also take into account additional stan- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

786 Federal Reserve Bulletin • December 2001 As noted above, Bank engages directly in the business of cated with regarding access to information. Bank has combanking outside the United States. Bank also has provided mitted to make available to the Board such information on the Board with information necessary to assess the applica- the operations of Bank and any of its affiliates that the tion through submissions that address the relevant issues. Board deems necessary to determine and enforce compli- With respect to supervision by home country authorities, ance with the IBA, the Bank Holding Company Act, and the Board previously has determined, in connection with other applicable federal law. To the extent that the proviapplications involving other banks in Spain, that those sion of such information to the Board may be prohibited by banks were subject to home country supervision on a law or otherwise, Bank has committed to cooperate with consolidated basis.5 Bank is supervised by the Bank of the Board to obtain any necessary consents or waivers that Spain on substantially the same terms and conditions as might be required from third parties for disclosure of such those other banks. information. In addition, subject to certain conditions, the Spain has enacted laws, and the Bank of Spain has Bank of Spain may share information on Bank's operations promulgated implementing regulations, aimed at prevent- with other supervisors, including the Board. In light of ing money laundering. The laws and regulations require these commitments and other facts of record, and subject to financial institutions, including savings banks, to establish the condition described below, it has been determined that and implement policies, procedures, and controls for the Bank has provided adequate assurances of access to any purpose of preventing and detecting money laundering, necessary information that the Board may request. and to report certain cash transactions, as well as suspi- On the basis of all the facts of record, and subject to the cious transactions, to appropriate authorities. An institu- commitments made by Bank, as well as the terms and tion's compliance with applicable laws and regulations is conditions set forth in this order, Bank's application to monitored by the Bank of Spain and the institution's exter- establish an agency is hereby approved.6 Should any renal auditors. Bank has policies and procedures to comply strictions on access to information on the operations or with these laws and regulations. activities of Bank and its affiliates subsequently interfere Based on all the facts of record, including the above with the Board's ability to obtain information to determine information, it has been determined that Bank is subject to and enforce compliance by Bank or its affiliates with comprehensive supervision on a consolidated basis by its applicable federal statutes, the Board may require or rechome country supervisor. ommend termination of any of Bank's direct or indirect The additional standards set forth in section 7 of the IBA activities in the United States. Approval of this application and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); also is specifically conditioned on compliance by Bank 12 C.F.R. 211.24(c)(2)-(3)) have also been taken into ac- with the commitments made in connection with this applicount. The Bank of Spain has no objection to the establish- cation and with the conditions in this order.7 The commitment of the proposed agency. ments and conditions referred to above are conditions Spain's risk-based capital standards conform to the Euro- imposed in writing by the Board in connection with this pean Union capital standards, which are consistent with decision and may be enforced in proceedings under those established by the Basel Capital Accord. Bank's 12 U.S.C. § 1818 against Bank and its affiliates. capital is in excess of the minimum levels that would be By order, approved pursuant to authority delegated by required by the Basel Capital Accord and is considered the Board, effective October 31, 2001. equivalent to capital that would be required of a U.S. banking organization. Managerial and other financial re- ROBERT DEV. FRIERSON sources of Bank also are considered consistent with ap- Associate Secretary of the Board proval, and Bank appears to have the experience and capacity to support the proposed agency. In addition, Bank Kookmin Bank has established controls and procedures for the proposed Seoul, Korea agency to ensure compliance with U.S. law, as well as controls and procedures for its worldwide operations gener- Order Approving Establishment of Branches ally. With respect to access to information about Bank's Kookmin Bank ("New Bank"), a de novo Korean bank to operations, the restrictions on disclosure in relevant juris- be established by Kookmin Bank ("Kookmin") and Housdictions in which Bank operates have been reviewed and ing & Commercial Bank ("H&CB"), both of Seoul, Kothe relevant government authorities have been communi- 6. Approved by the Director of the Division of Banking Supervision dards as set forth in the IBA and Regulation K (12 U.S.C. § 3105(d)(3)- and Regulation, with the concurrence of the General Counsel, pursu- (4); 12 C.F.R. 211.24(c)(2)-(3)). ant to authority delegated by the Board. 5. See Banco Pastor, S.A., 87 Federal Reserve Bulletin 555 (2001); 7. The authority to approve the establishment of the proposed Caja de Ahorros de Valencia, Castellon y Alicante, 84 Federal Re- agency parallels the continuing authority of the State of Florida to serve Bulletin 231 (1998); Banco Exterior de Espana S.A., 81 Federal license offices of a foreign bank. The approval of this application does Reserve Bulletin 616 (1995); Corporacion Bancaria de Espana, 81 not supplant the authority of the State of Florida, or its agent, the Federal Reserve Bulletin 598 (1995); Banco Santander S.A., 79 Fed- Florida Department of Banking and Finance ("Department"), to lieral Reserve Bulletin 622 (1993); Banco de Sabadell S.A., 79 Federal cense the proposed office of Bank in accordance with any terms or Reserve Bulletin 366 (1993). conditions that the Department may impose. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 787 rea, and both foreign banks within the meaning of the account additional standards as set forth in the IBA and International Banking Act ("IBA"), has applied under sec- Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. tion 7(d) of the IBA (12 U.S.C. § 3105(d)) to establish 211.24(c)(2)-(3)). branches in New York, New York. The Foreign Bank The IBA includes a limited exception to the general Supervision Enhancement Act of 1991, which amended the requirement relating to comprehensive, consolidated super- IBA, provides that a foreign bank must obtain the approval vision (12 U.S.C. § 3105(d)(6)). This exception provides of the Board to establish branches in the United States. that, if the Board is unable to find that a foreign bank Notice of the application, affording interested persons an seeking to establish a branch, agency, or commercial lendopportunity to comment, has been published in a newspa- ing company is subject to comprehensive supervision or per of general circulation in New York, New York (The regulation on a consolidated basis by the appropriate au- New York Times, August 31, 2001). The time for filing thorities in its home country, an application by such foreign comments has expired, and all comments have been con- bank may nevertheless be approved if: sidered. (i) The appropriate authorities in the home country of Kookmin, with total consolidated assets of approxi- the foreign bank are actively working to establish mately $76 billion, is the largest commercial bank in arrangements for the consolidated supervision of Korea.1 Kookmin is primarily engaged in providing bank- such bank; and ing services to retail customers and small and medium- (ii) All other factors are consistent with approval sized enterprises. Kookmin operates an extensive network (12 U.S.C. § 3105(d)(6)(A)). In deciding whether to of branches and subsidiaries in Korea, as well as branches approve an application under authority of this exin Argentina, Japan, New Zealand, and New York. Kook- ception, the Board shall also consider whether min is a qualifying foreign banking organization within the the foreign bank has adopted and implements procemeaning of Regulation K (12 C.F.R. 211.23(b)). dures to combat money laundering (12 U.S.C. H&CB, with consolidated assets of $53 billion, is the § 3105(d)(6)(B)). The Board also may take into acthird largest bank in Korea. H&CB is principally engaged count whether the home country of the foreign bank in mortgage lending and retail banking services. H&CB is developing a legal regime to address money operates an extensive domestic branch network in Korea as laundering or is participating in multilateral efforts well as branches in Japan and New York. H&CB is a to combat money laundering (12 U.S.C. qualifying foreign banking organization within the mean- § 3105(d)(6)(B)). ing of Regulation K (12 C.F.R. 211.23(b)). As noted above, New Bank will engage directly in the Kookmin and H&CB intend to merge into New Bank in business of banking outside the United States. Kookmin November 2001. On completion of the merger, it is ex- and H&CB, on behalf of New Bank, have provided the pected that New Bank would be the largest bank in Korea. Board with information necessary to assess the application New Bank would continue to conduct retail banking busi- through submissions that address the relevant issues. ness in Korea as well as focus on selected areas, such as With respect to supervision by New Bank's home councorporate banking, international finance, and capital mar- try authorities, the Board previously has determined, in kets activities. Kookmin and H&CB, on behalf of New connection with applications involving Kookmin and Bank, have requested authority for New Bank to retain and H&CB, that the banks' home country authorities were operate the Kookmin and H&CB branches in New York actively working to establish arrangements for the consolithrough this application. dated supervision of those banks.3 New Bank will be In acting on an application by a foreign bank to establish supervised by the Financial Supervisory Service (the branches in the United States, the IBA and Regulation K "FSS") on substantially the same terms and conditions as require the Board to determine that the foreign bank appli- its predecessor banks. Based on all the facts of record, it cant engages directly in the business of banking outside of has been determined that New Bank's home country authe United States, and has furnished to the Board the thorities are actively working to establish arrangements for information it needs to assess the application adequately. the consolidated supervision of New Bank, and that consid- The Board also shall take into account whether the foreign bank and any foreign bank parent is subject to comprehensive supervision or regulation on a consolidated basis by its (iii) Obtain information on the dealings with and relationship behome country supervisor (12 U.S.C. § 3105(d)(2); tween the bank and its affiliates, both foreign and domestic; 12 C.F.R. 211.24).2 In addition, the Board may take into (iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis; 1. All data are as of June 30, 2001. (v) Evaluate prudential standards, such as capital adequacy and risk 2. In assessing this standard, the Board considers, among other asset exposure, on a worldwide basis. factors, the extent to which the home country supervisors: These are indicia of comprehensive, consolidated supervision. No (i) Ensure that the bank has adequate procedures for monitoring single factor is essential, and other elements may inform the Board's and controlling its activities worldwide; determination. (ii) Obtain information on the condition of the bank and its subsid- 3. See Kookmin Bank, 86 Federal Reserve Bulletin 291 (2000); iaries and offices through regular examination reports, audit Housing & Commercial Bank, 83 Federal Reserve Bulletin 935 reports, or otherwise; (1997). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

788 Federal Reserve Bulletin • December 2001 erations relating to the steps taken by its home country, and supervisors, including the Board. In light of these committhe steps Kookmin and H&CB have taken, and New Bank ments and other facts of record, and subject to the condiwill take, to combat money laundering are consistent with tion described below, it has been determined that New approval under this standard. Bank has provided adequate assurances of access to any The additional standards set forth in the IBA and Regula- necessary information that the Board may request. tion K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. 211.24(c)(2)) On the basis of all the facts of record, and subject to the have also been taken into account. The FSS has no objec- commitments made by Kookmin and H&CB on behalf of tion to the establishment of the proposed branches. New Bank, as well as the terms and conditions set forth in Bank must comply with the minimum capital standards this order, New Bank's application to establish branches is of the Basel Capital Accord ("Accord"), as implemented approved.4 Should any restrictions on access to informaby Korea. New Bank's capital will be in excess of the tion on the operations or activities of New Bank and its minimum levels that would be required by the Accord and affiliates subsequently interfere with the Board's ability to is considered equivalent to the capital that would be re- obtain information to determine and enforce compliance by quired of a U.S. banking organization. Managerial and New Bank or its affiliates with applicable federal statutes, other financial resources of New Bank are also considered the Board may require termination of any of New Bank's consistent with approval, and New Bank appears to have direct or indirect activities in the United States. Approval the experience and capacity to support the proposed of this application also is specifically conditioned on combranches. New Bank has established controls and proce- pliance by New Bank with the commitments made in dures for the proposed branches to ensure compliance with connection with this application and with the conditions in U.S. law, as well as controls and procedures for its world- this order.5 The commitments and conditions referred to wide operations generally. above are conditions imposed in writing by the Board in With respect to access to information about New Bank's connection with its decision and may be enforced in prooperations, the restrictions on disclosure in relevant juris- ceedings under 12 U.S.C. § 1818 against New Bank and dictions in which New Bank will operate have been re- its affiliates. viewed and relevant government authorities have been By order, approved pursuant to authority delegated by communicated with regarding access to information. Kook- the Board, effective October 31, 2001. min and H&CB, on behalf of New Bank, have committed to make available to the Board such information on the ROBERT DEV. FRIERSON operations of New Bank and any of its affiliates that the Deputy Secretary of the Board Board deems necessary to determine and enforce compliance with the IBA, the Bank Holding Company Act of 1956, as amended, and other applicable federal law. To the 4. Approved by the Director of the Division of Banking Supervision and Regulation, with the concurrence of the General Counsel, pursuextent that the provision of such information to the Board ant to authority delegated by the Board. may be prohibited by law, Kookmin and H&CB, on behalf 5. The Board's authority to approve the establishment of the proof New Bank, have committed to cooperate with the Board posed branches parallels the continuing authority of the State of to obtain any necessary consents or waivers that might be New York to license offices of a foreign bank. The Board's approval required from third parties for disclosure of such informa- of this application does not supplant the authority of the State of New York and the New York State Banking Department ("Department") to tion. In addition, subject to certain conditions, the FSS may license the proposed offices of Bank in accordance with any terms or share information on New Bank's operations with other conditions that the Department may impose. 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 Alamerica BancCorp, Inc., Alamerica Bank, Atlanta October 4, 2001 Birmingham, Alabama Birmingham, Alabama BB&T Corporation, Community First Banking Company, Richmond October 11, 2001 Winston-Salem, North Carolina Carrollton, Georgia Catawba Valley Bancshares, Inc., First Gaston Bank of North Carolina, Richmond October 24, 2001 Hickory, North Carolina Gastonia, North Carolina Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 789 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date The Colonial BancGroup, Inc., Manufacturers Bank of Florida, Atlanta October 5, 2001 Montgomery, Alabama Tampa, Florida Manufacturers Bancshares, Inc. Tampa, Florida DNB Bancshares, Inc., Dallas National Bank, Dallas October 18, 2001 Dallas, Texas Dallas, Texas DNB Delaware Financial Corporation, Dover, Delaware Eagle Bancshares, Inc., Cashton Bancshares, Chicago September 28, 2001 Cashton, Wisconsin Cashton, Wisconsin Bank of Cashton, Cashton, Wisconsin First Banks, Inc., BYL Bancorp, St. Louis October 1, 2001 St. Louis, Missouri Orange, California First Banks America, Inc., BYL Bank Group, St. Louis, Missouri Orange, California FPB Bancorp, Inc., First Peoples Bank, Atlanta October 10, 2001 Port St. Lucie, Florida Port St. Lucie, Florida Greater Bay Bancorp, SJNB Financial Corp., San Francisco October 3, 2001 Palo Alto, California San Jose, California San Jose National Bank, San Jose, California Kensington Bankshares, Inc., First Kensington Bank, Atlanta October 19, 2001 Spring Hill, Florida Spring Hill, Florida New Peoples Bankshares, Inc., New Peoples Bank, Richmond October 10, 2001 Honaker, Virginia Honaker, Virginia Northstar Financial Group, Inc., Seaway Community Bank, Chicago October 19, 2001 Bad Axe, Michigan St. Clair, Michigan Overton Financial Corporation, Longview Financial Corporation, Dallas October 11, 2001 Overton, Texas Longview, Texas Overton Delaware Corporation, Dover, Delaware Piedmont BankCorp, Piedmont Bank, Richmond October 11, 2001 Statesville, North Carolina Statesville, North Carolina Prairieland Employee Stock Prairieland Bancorp, Inc., Chicago October 15, 2001 Ownership Plan, Bushnell, Illinois Bushnell, Illinois River Valley Bancorp, Inc., State Bank of Latham, Chicago October 5, 2001 Eldridge, Iowa Latham, Illinois Valley State Bank, Eldridge, Iowa Second Bancorp, Inc., Commerce Exchange Corporation, Cleveland October 4, 2001 Warren, Ohio Beachwood, Ohio South Plains Financial, Inc., City Bank New Mexico, Dallas October 24, 2001 Lubbock, Texas Ruidoso, New Mexico South Plains Delaware Financial Corporation, Dover, Delaware Zia Financial Corporation, Ruidoso, New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

790 Federal Reserve Bulletin • December 2001 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date Spector Holdings Management, Citizens State Bank, Dallas October 3, 2001 LLC, Luling, Texas San Antonio, Texas Spector Holdings Limited Partnership, San Antonio, Texas Luling Bancshares, Inc., Luling, Texas Luling Delaware Financial Corporation, Dover, Delaware Texas Heritage Bancshares, Inc. Hondo National Bank, Dallas October 7, 2001 Hondo, Texas Hondo, Texas Texas Heritage Bancshares of Delaware, Inc., Wilmington, Delaware United Community Banks, Inc., Peoples Bancorp, Inc., Atlanta September 21, 2001 Blairsville, Georgia Carrollton, Georgia Peoples Bank of West Georgia, Carrollton, Georgia Venture Bancshares, Inc., Venture Bank, Minneapolis October 22, 2001 Bloomington, Minnesota Bloomington, Minnesota West 12 Bancorporation, Inc., State Bank of Danvers, Minneapolis September 28, 2001 Danvers, Minnesota Danvers, Minnesota Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Camden National Corporation, Trust Company of Maine, Inc., Boston October 17, 2001 Camden, Maine Bangor, Maine Camden National Investment Services, Inc., Camden, Maine Sections 3 and 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Georgia Banking Company, Inc. Georgia Banking Company, Atlanta October 15, 2001 Atlanta, Georgia Atlanta, Georgia GBC Funding, Inc., Atlanta, Georgia Virginia Financial Corporation, Virginia Commonweath Financial Richmond October 18, 2001 Staunton, Virginia Corporation, Culpeper, Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 791 APPLICATIONS APPROVED UNDER BANK MERGER 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. Applicant(s) Bank(s) Effective Date HSBC Bank USA, CIBC National Bank, October 31, 2001 Buffalo, New York Maitland, Florida 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 1st Source Bank, Standard Federal Bank, Chicago September 27, 2001 South Bend, Indiana Troy, Michigan Colonial Bank, Manufacturers Bank of Florida, Atlanta October 5, 2001 Montgomery, Alabama Tampa, Florida First Interstate Bank, First Interstate Bank, Minneapolis October 2, 2001 Billings, Montana Sheridan, Wyoming First Virginia Bank-Hampton Roads, James River Bank, Richmond October 9, 2001 Norfolk, Virginia Waverly, Virginia James River Bank/Colonial, Suffolk, Virginia Northern Neck State Bank, Citizens and Farmers Bank, Richmond October 18, 2001 Warsaw, Virginia West Point, Virginia Regions Bank, Jefferson Heritage Bank, Atlanta October 3, 2001 Birmingham, Alabama Denton, Texas PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Radfar v. United States, No. 1:01CV1292 (PLF) (D.D.C., Federal Reserve Banks in which the Board of Governors is not complaint filed June 11, 2001). Action under the Federal named a party. Tort Claims Act for injury on Board premises. Artis v. Greenspan, No. 01-CV-0400(ESG) (D.D.C., complaint Emran v. Greenspan, No. 1:01CV1992 (PLF) (D.D.C., filed filed February 22, 2001. Employment discrimination action. September 20, 2001). Employment discrimination claim. On August 15, 2001, the district court consolidated the Bettersworth v. Board of Governors, No. 01-444 (United action with Artis v. Greenspan, No. 99-CV-2073 (EGS) States Supreme Court, docketed September 14, 2001). Peti- (D.D.C., filed August 3, 1999), also an employment distion for certiorari seeking review of denial of petitioner's crimination action. Privacy Act claims. Howe v. Bank for International Settlements, No. 00CV12485 Laredo National Bancshares, Inc. v. Whalen v. Board of Gov- RCL (D. Mass., filed December 7, 2000). Action seeking ernors, No. 01-CV-134 (S.D. Tex., removed on Septem- damages in connection with gold market activities and the ber 5, 2001, from No. 99CVQ00940-D3 (District Court, repurchase of privately-owned shares of the Bank for Inter- 341st Judicial District, Webb County, Texas, originally filed national Settlements. July 26, 2001). Third-party petition seeking indemnification or contribution from the Board in connection with a claim Trans Union LLC v. Federal Trade Commission, et al., asserted against defendant Whalen alleging tortious interfer- No. 01-5202 (D.C. Cir., filed June 4, 2001). Appeal of ence with a contract. district court order entered April 30, 2001, upholding an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

792 Federal Reserve Bulletin • December 2001 interagency rule regarding Privacy of Consumer Finance Guerrero v. United States, No. CV-F-99-6771(OWW) (E.D. Information. Cal., filed November 29, 1999). Prisoner suit. Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Fraternal Order of Police v. Board of Governors, No. (D.D.C., filed February 18, 2000). Action challenging the 1:98CV03116 (WBB)(D.D.C., filed December 22, 1998). method of funding of the retirement plan for certain Board Declaratory judgment action challenging Board labor pracemployees. On March 30, 2001, the district court granted in tices. On February 26, 1999, the Board filed a motion to part and denied in part the Board's motion to dismiss. dismiss the action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A1 Financial and Business Statistics A3 GUIDE TO TABLES 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

A2 Federal Reserve Bulletin • December 2001 INTERNATIONAL STATISTICS Reported by Nonbanking Business Enterprises in the United States Summary Statistics A58 Liabilities to unaffiliated foreigners A50 U.S. international transactions A59 Claims on unaffiliated foreigners A51 U.S. foreign trade A51 U.S. reserve assets Securities Holdings and Transactions A51 Foreign official assets held at Federal Reserve A60 Foreign transactions in securities Banks A61 Marketable U.S. Treasury bonds and A52 Selected U.S. liabilities to foreign official notes—Foreign transactions institutions Interest and Exchange Rates Reported by Banks in the United States A62 Foreign exchange rates A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A55 Banks' own claims on foreigners A63 GUIDE TO STATISTICAL RELEASES AND A56 Banks' own and domestic customers' claims on SPECIAL TABLES foreigners A56 Banks' own claims on unaffiliated foreigners A64 INDEX TO STATISTICAL TABLES A57 Claims on foreign countries—Combined domestic offices and foreign branches Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A3 Guide to Tables SYMBOLS AND ABBREVIATIONS c Corrected G-10 Group of Ten e Estimated GDP Gross domestic product n.a. Not available GNMA Government National Mortgage Association n.e.c. Not elsewhere classified GSE Government-sponsored enterprise P Preliminary HUD Department of Housing and Urban r Revised (Notation appears in column heading Development when about half the figures in the column have IMF International Monetary Fund been revised from the most recently published IOs Interest only, stripped, mortgage-backed securities table.) IPCs Individuals, partnerships, and corporations * Amount insignificant in terms of the last decimal IRA Individual retirement account place shown in the table (for example, less than MMDA Money market deposit account 500,000 when the smallest unit given is in millions) MSA Metropolitan statistical area 0 Calculated to be zero NAICS North American Industry Classification System 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-backed 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 TIIS Treasury inflation-indexed securities FSLIC Federal Savings and Loan Insurance Corporation VA Department of Veterans Affairs G-7 Group of Seven 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 U.S. Treasury. Minus signs are used to indicate (1) a decrease, (2) a negative "State and local government" also includes municipalities, figure, or (3) an outflow. special districts, and other political subdivisions. "U.S. government securities" may include guaranteed issues of U.S. government agencies (the flow of funds figures also Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A4 Domestic Financial Statistics • December 2001 1.10 RESERVES, MONEY STOCK, AND DEBT MEASURES Percent annual rate of change, seasonally adjusted1 2000 2001 2001 MMoonneettaarryy oorr ccrreeddiitt aaggggrreeggaattee Q4 Qi Q2 Q3 May June July' Aug.' Sept. Reserves of depository institutions1 1 Total -8.7 -2.1 1.7 71.7 3.1 -3.5 25.6 8.9 539.7 2 Required -10.4 -3.5 3.3 10.1 11.5 -14.4 25.0 14.6 4.3 3 Nonborrowed -6.4 .5 .6 60.4 -1.9 ^t.O 24.0 12.0 445.5 4 Monetary base3 2.8 6.4 5.4 14.7 6.4 5.6 11.6 15.4 47.3 Concepts of money and debt* 5 Ml -3.3 5.0 5.4 13.8 -.8 6.2' 13.6 8.2 54.0 6 M2 6.3 10.7 10.4 10.5 5.7 10.1 9.0 7.7 25.2 7 M3 7.4r 13.6 15.0 9.1 14.0r 13.0 6.6 -.3 22.6 8 Debt 4.5 4.7' 5.9r n.a. 6.7r 6.1' 3.3 5.5 n.a. Nontransaction components 9 In M25 9.1 12.3 11.9r 9.6 7.5' 11.2 7.8 7.5 17.3 10 In M3 only6 9.9 20.2 25.3 6.1 32.4' 19.1' 1.3 -17.7 16.8 Time and savings deposits Commercial banks 11 Savings, including MMDAs 12.0 17.4 20.4 19.7 18.2 19.0 12.5 24.6 31.5 12 Small time7 5.6 2.5 -7.7 -11.3 -7.6 -10.5 -15.0 -9.1 -10.4 13 Large time8-9 4.0 -1.3 -1.1 -6.0 14.1' 9.5 -11.3 -24.7 -4.0 Thrift institutions 14 Savings, including MMDAs .4 6.5 22.2 26.1 32.6 25.3' 23.8 25.7 24.3 15 Small time7 9.5 6.2 3.0 -6.1 11.6' -2.7' -9.9 -12.3 -6.6 16 Large time8 14.0 12.3 12.1 14.9 21.0 -8.7 19.7 29.0 12.6 Money market mutual funds 17 Retail 11.6 16.9 11.2 5.6 -11.8 12.1 14.1 -10.5 17.3 18 Institution-only 18.8 50.0 54.9 21.0 67.4 44.2 8.1 -20.9 52.9 Repurchase agreements and eurodollars 19 Repurchase agreements'" 2.1 -7.1 21.0 -9.6 10.6 1.6 -12.1 -11.9 20 Eurodollars10 10.3 38.6 7.7' 1.8 -12.5' -16.5' 25.1 -14.8 17.7 Debt components4 21 Federal -8.0 -5.2 -6.4 n.a. -15.5 2.8 5.1 7.6 n.a. 22 Nonfederal 7.5 7.1 8.6r n.a. 11.6' 6.8' 2.9 5.1 n.a. t. 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 regula- and Canada. Excludes amounts held by depository institutions, the U.S. government, money tory 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, and adjusted, break-adjusted total reserves (line 1), plus (2) the seasonally adjusted currency eurodollars, each seasonally adjusted separately, and adding this result to seasonally adjusted component of the money stock, plus (3) (for all quarterly reporters on the "Report of 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 nonfinanvault cash exceeds their required reserves) the seasonally adjusted, break-adjusted difference cial sectors—the federal sector (U.S. government, not including government-sponsored between current vault cash and the amount applied to satisfy current reserve requirements. enterprises 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 July Aug. Sept. Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 593,722 599,962 628,193 598,602 601,169 600,575 608,925 621,696 671,614 611,158 U.S. government securities2 2 Bought outright—System account3 534,518 539,769 533,581 539,546 540,821 541,874 542,052 540,478 523,359 530,998 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 10 10 10 10 10 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreeements—triparty4 21,095 22,971 44,704 20,669 24,553 22,505 29,885 28,863 75,296 39,333 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 113 23 3,344 7 10 37 21 11,742 1,502 1,065 9 Seasonal credit 177 165 89 185 164 139 114 95 95 67 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 521 35 7,551 3 -70 -99 532 3,194 27,252 1,906 13 Other Federal Reserve assets 37,287 36,989 38,914 38,183 35,680 36,110 36,311 37,315 44,101 37,778 14 Gold stock 11,044 11,044 11,044 11,044 11,044 11,044 11,044 11,044 11,043 11,043 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 32,700 32,846r 32,984 32,819' 32,865' 32,911' 32,957 32,971 32,985 32,999 ABSORBING RESERVE FUNDS 17 Currency in circulation 601,087 607,335r 613,474 606,769' 607,329' 608,577' 613,357 612,650 615,347 612,964 18 Reverse repurchase agreements—triparty4 . .. 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 421 413 424 416 412 410 416 422 426 429 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,127 5,040 6,644 5,073 5,313 5,001 5,252 5,350 6,291 8,462 21 Foreign 92 89 292 78 72 106 77 79 157 605 22 Service-related balances and adjustments . . 7,338 7,558 7,796 7,453 7,485' 7,718' 7,569 7,578 7,708 8,140 23 Other 302 303 342 311 305 291 287 467 382 298 24 Other Federal Reserve liabilities and capital . . 17,889 18,220 19,081 18,377 18,463 18,117 18,084 19,224 20,660 18,787 25 Reserve balances with Federal Reserve Banks5 7,408 7,092 26,367 6,187 7,898' 6,5101 10,084 22,140 66,872 7,716 End-of-month figures Wednesday figures July Aug. Sept. Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 600,662 608,399 619,548 602,848 611,079 603,499 612,030 700,942 607,777 614,659 U.S. government securities2 2 Bought outright—System account3 535,578 541,807 534,136 539,746 540,778 542,873 542,333 530,385 526,624 526,817 3 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 Federal agency obligations 4 Bought outright 10 10 10 10 10 10 10 10 10 10 5 Held under repurchase agreements 0 0 0 0 0 0 0 0 0 0 6 Repurchase agreeements—triparty4 26,350 29,755 47,880 27,345 34,265 24,755 31,215 61,005 39,600 51,290 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 3 6 7 1 23 138 99 45,528 2,587 20 9 Seasonal credit 197 117 81 191 147 136 96 94 87 75 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 917 463 -549 152 -99 -293 2,010 21,842 1,258 -1,560 13 Other Federal Reserve assets 37,606 36,241 37,983 35,403 35,957 35,881 36,267 42,079 37,613 38,007 14 Gold stock 11,044 11,044 11,045 11,044 11,044 11,044 11,044 11,043 11,043 11,043 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 32,726 32,957' 33,013 32,819' 32,865' 32,911' 32,957 32,971 32,985 32,999 ABSORBING RESERVE FUNDS 17 Currency in circulation 604,179 613,266' 612,069 608,022' 609,063' 611,239' 614,523 615,843 615,464 613,590 18 Reverse repurchase agreements—triparty4 .. . 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 418 416 422 412 409 416 421 426 430 422 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 5,592 5,533 9,796 4,069 5,115 4,675 4,358 5,993 5,413 9,668 21 Foreign 84 80 609 71 75 151 73 69 258 635 22 Service-related balances and adjustments .. 7,362 7,569' 8,016 7,453 7,485' 7,718' 7,569 7,578 7,708 8,140 23 Other 330 276 191 322 285 282 308 1,150 288 237 24 Other Federal Reserve liabilities and capital . . 18,219 18,139 17,875 18,240 17,924 17,848 17,672 22,122 20,071 17,760 25 Reserve balances with Federal Reserve Banks5 10,448 9,321' 16,829 10,323 16,833' 7,324' 13,307 93,977 4,373 10,449 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float, under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Financial Statistics • December 2001 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RRReeessseeerrrvvveee ccclllaaassssssiiifffiiicccaaatttiiiooonnn 1998 1999 2000 2001 Dec. Dec. Dec. Mar. Apr. May June July Aug.' Sept. 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 9,026 5,262 7,159 6,737 6,863 7,610 7,058 7,674 7,564 25,578 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 44,294 60,619 45,228 44.105 43,657 43,263 43,133 43,909' 44,010 43,464 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 36,183 36,392 31,381 30,978 31.728 31,772 31,175 31,622 32,056 31,938 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 8,111 24,227 13,847 13,128 11,929 11,491 11,958 12,287' 11,953 11,526 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 45,209 41,654 38,540 37,715 38,591 39,382 38,233 39,296 39,621 57,516 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 43,695 40,357 37,216 36,329 37,314 38,363 36,873 37,889 38,386 38,478 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,514 1,297 1,325 1,385 1,277 1,019 1,360 1,407 1,234 19,038 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 117 320 210 58 51 213 229 283 183 3,385 99999 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 101 179 99 38 15 134 110 109 19 3,292 1111100000 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 15 67 111 20 35 79 120 174 164 93 1111111111 SSSSSpppppeeeeeccccciiiiiaaaaalllll LLLLLiiiiiqqqqquuuuuiiiiidddddiiiiitttttyyyyy FFFFFaaaaaccccciiiiillllliiiiitttttyyyyy88888 0 74 0 1111122222 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt''''' 0 0 0 0 0 0 ' ' 0 0 ' ' 0 0 Biweekly averages of daily figures for two-week periods ending on dates indicated 2001 May 30 June 13 June 27 July 11 July 25 Aug. 8 Aug. 22 Sept. 5' Sept. 19 Oct. 3 11111 RRRRReeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss wwwwwiiiiittttthhhhh RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss22222 8,159 6,756 7,275 7,357 7,935 7,648 7,051' 8,288 44,481 9,378 22222 TTTTToooootttttaaaaalllll vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh33333 43,900 42,155 43,811 44,209 43.327r 44,719' 44,328' 42,885 43,032 44,277 33333 AAAAAppppppppppllllliiiiieeeeeddddd vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh44444 32,530 30,268 31,963 31,432 31.480 32,300 32,119' 31,744 30,974 33,255 44444 SSSSSuuuuurrrrrpppppllllluuuuusssss vvvvvaaaaauuuuulllllttttt cccccaaaaassssshhhhh55555 11,370 11,888 11,848 12,777 1 l,847r 12,419' 12,210' 11,141 12,059 11,022 55555 TTTTToooootttttaaaaalllll rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss66666 40,689 37,024 39,238 38,789 39,415 39,948 39,170 40,032 75,455 42,633 66666 RRRRReeeeeqqqqquuuuuiiiiirrrrreeeeeddddd rrrrreeeeessssseeeeerrrrrvvvvveeeeesssss 39,582 35,775 37,818 37,227 38,027 38,781 38,084' 38,507 37,280 39,991 77777 EEEEExxxxxccccceeeeessssssssss rrrrreeeeessssseeeeerrrrrvvvvveeeee bbbbbaaaaalllllaaaaannnnnccccceeeeesssss aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss77777 1,107 1,248 1,420 1,562 1,387 1,167 1.086 1,524 38,174 2,643 88888 TTTTToooootttttaaaaalllll bbbbbooooorrrrrrrrrrooooowwwwwiiiiinnnnnggggg aaaaattttt RRRRReeeeessssseeeeerrrrrvvvvveeeee BBBBBaaaaannnnnkkkkksssss 97 295 166 244 344 214 184 156 6,717 613 99999 AAAAAdddddjjjjjuuuuussssstttttmmmmmeeeeennnnnttttt 13 195 36 89 159 27 9 29 6,622 538 1111100000 SSSSSeeeeeaaaaasssssooooonnnnnaaaaalllll 85 101 130 155 185 188 175 127 95 75 1111111111 SSSSSpppppeeeeeccccciiiiiaaaaalllll LLLLLiiiiiqqqqquuuuuiiiiidddddiiiiitttttyyyyy FFFFFaaaaaccccciiiiillllliiiiitttttyyyyy88888 1111122222 EEEEExxxxxttttteeeeennnnndddddeeeeeddddd cccccrrrrreeeeedddddiiiiittttt 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 (line 3). 2. Excludes required clearing balances and adjustments to compensate for float and 7. Total reserves (line 5) less required reserves (line 6). includes other off-balance-sheet "as-of" adjustments. 8. Borrowing at the discount window under the terms and conditions established for the 3. Vault cash eligible to satisfy reserve requirements. It includes only vault cash held by Century Date Change Special Liquidity Facility in effect from October 1, 1999, through those banks and thrift institutions that are not exempt from reserve requirements. Dates refer April 7, 2000. to the maintenance periods in which the vault cash can be used to satisfy reserve require- 9. Consists of borrowing at the discount window under the terms and conditions estabments. lished for the extended credit program to help depository institutions deal with sustained 4. All vault cash held during the lagged computation period by "bound" institutions (that liquidity pressures. Because there is not the same need to repay such borrowing promptly as is, those whose required reserves exceed their vault cash) plus the amount of vault cash with traditional short-term adjustment credit, the money market effect of extended credit is applied during the maintenance period by "nonbound" institutions (that is, those whose vault similar to that of nonborrowed reserves. cash exceeds their required reserves) to satisfy current reserve requirements. 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 credit3 FFeeddeerraall RReesseerrvvee BBaannkk 11/ O 09 n / 01 Effective date Previous rate 11/ O 09 n / 01 Effective date Previous rate 11/ O 09 n / 01 Effective date Previous rate Boston 1.50 11/8/01 2.00 2.35 11/01/01 2.40 2.85 11/01/01 2.90 New York 11/6/01 Philadelphia 11/7/01 Cleveland 11/8/01 Richmond 11/6/01 Atlanta 11/8/01 Chicago 11/7/01 St. Louis 11/7/01 Minneapolis 11/7/01 Kansas City 11/8/01 Dallas 11/8/01 San Francisco 1.50 11/6/01 2.00 2.35 11/01/01 2.40 2.85 11/01/01 2.90 Range of rates for adjustment credit in recent years4 Range (or F.R. oBfa nk Range (or F.R. Bank Range (or F.R. Bank level)—All level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1981 12 12 -Sept. 13 5-5.5 5 2001—May 15 3.50-4.00 3.50 1/ 5 5 17 3.50 3.50 1982—July 20 11.5-12 11.5 Nov. 6 4.5-5 4.5 June 27 3.25-3.50 3.25 23 11.5 11.5 7 4.5 4.5 29 3.25 3.25 Aug. 2 11-11.5 11 Dec. 20 3.5-4.5 3.5 Aug. 21 3.00-3.25 3.00 3 11 11 24 3.5 3.5 23 3.00 3.00 16 10.5 10.5 SSeepptt.. 1177 2.50-3.00 2.50 27 10-10.5 10 1992--Julv 2 3-3.5 3 1188 2.50 2.50 30 10 10 / 3 3 Oct. 2 2.00-2.50 2.00 Oct. 12 9.5-10 9.5 4 2.00 2.00 13 9.5 9.5 1994--May 17 3-3.5 3.5 Nov. 6 1.50-2.00 1.50 Nov. 22 9-9.5 9 3.5 3.5 8 1.50 1.50 26 9 9 Aug. 16 3.5-4 4 Dec. 14 8.5-9 9 18 4 4 In effect Nov. 9, 2001 1.50 1.50 15 8.5-9 8.5 Nov. 15 4-4.75 4.75 17 8.5 8.5 17 4.75 4.75 1984—Apr. 9 8.5-9 9 1995--Feb. 1 4.75-5.25 5.25 13 9 9 9 5.25 5.25 Nov. 21 8.5-9 8.5 26 8.5 8.5 1996--Jan. 31 5.00-5.25 5.00 Dec. 24 8 8 Feb. 3 5.00 5.00 1985—May 20 7.5-8 7.5 1998--Oct. 15 4.75-5.00 4.75 24 7.5 7.5 16 4.75 4.75 Nov. 17 4.50-4.75 4.50 1986—Mar. 7 7-7.5 7 19 4.50 4.50 10 7 7 Apr. 21 6.5-7 6.5 -Aug. 24 4.50-4.75 4.75 23 6.5 6.5 26 4.75 4.75 July 11 6 6 Nov. 16 4.75-5.00 4.75 Aug. 21 5.5-6 5.5 18 5.00 5.00 22 5.5 5.5 -Feb. 2 5.00-5.25 5.25 1987—Sept. 4 5.5-6 6 4 5.25 5.25 11 6 6 Mar. 21 5.25-5.50 5.50 23 5.50 5.50 1988—Aug. 9 6-6.5 6.5 May 16 5.50-6.00 5.50 11 6.5 6.5 19 6.00 6.00 1989—Feb. 24 6.5-7 7 -Jan. 3 5.75-6.00 5.75 7 7 4 5.50-5.75 5.50 27 5 5.50 5.50 6.5 6.5 31 5.00-5.50 5.00 1990—Dec. 19 Feb. 1 5.00 5.00 6-6.5 6 Mar. 20 4.50-5.00 4.50 1991—Feb. 1 6 6 21 4.50 4.50 4 5.5-6 5.5 Apr. 18 4.00^1.50 4.00 Apr. 30 5.5 5.5 20 4.00 4.00 May 2 1. Available on a short-term basis to help depository institutions meet temporary needs for practices involve only a particular institution, or to meet the needs of institutions experiencing funds that cannot be met through reasonable alternative sources. The highest rate established difficulties adjusting to changing market conditions over a longer period (particularly at times for loans to depository institutions may be charged on adjustment credit loans of unusual size of deposit disintermediation). The discount rate applicable to adjustment credit ordinarily is that result from a major operating problem at the borrower's facility. charged on extended-credit loans outstanding less than thirty days; however, at the discretion 2. Available to help relatively small depository institutions meet regular seasonal needs for of the Federal Reserve Bank, this time period may be shortened. Beyond this initial period, a funds that arise from a clear pattern of intrayearly movements in their deposits and loans and flexible rate somewhat above rates charged on market sources of funds is charged. The rate that cannot be met through special industry lenders. The discount rate on seasonal credit takes ordinarily is reestablished on the first business day of each two-week reserve maintenance into account rates charged by market sources of funds and ordinarily is reestablished on the period, but it is never less than the discount rate applicable to adjustment credit plus 50 basis first business day of each two-week reserve maintenance period; however, it is never less than points. the discount rate applicable to adjustment credit. 4. For earlier data, see the following publications of the Board of Governors: Banking and 3. May be made available to depository institutions when similar assistance is not Monetary: Statistics, 1914-1941, and 1941-1970; and the Annual Statistical Digest, 1970reasonably available from other sources, including special industry lenders. Such credit may 1979, and 1980-1989. See also the Board's Statistics: Releases and Historical Data web be provided when exceptional circumstances (including sustained deposit drains, impaired pages (http://www.federalreserve.gov/releases/H15/data.htm). access to money market funds, or sudden deterioration in loan repayment performance) or Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A8 Domestic Financial Statistics • December 2001 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement Type of deposit Net transaction accounts2 1 $0 million-$42.8 million3 12/30/99 2 More than $42.8 million4 . 12/30/99 3 Nonpersonal time deposits1 12/27/90 4 Eurocurrency liabilities6 . 12/27/90 1. Required reserves must be held in the form of deposits with Federal Reserve Banks or succeeding calendar year by 80 percent of the percentage increase in the total reservable vault cash. Nonmember institutions may maintain reserve balances with a Federal Reserve liabilities of all depository institutions, measured on an annual basis as of June 30. No Bank indirectly, on a pass-through basis, with certain approved institutions. For previous corresponding adjustment is made in the event of a decrease. The exemption applies only to reserve requirements, see earlier editions of the Annual Report or the Federal Reserve accounts that would be subject to a 3 percent reserve requirement. Effecitve with the reserve Bulletin. Under the Monetary Control Act of 1980, depository institutions include commercial maintenance period beginning December 28, 2000, for depository institutions that report banks, savings banks, savings and loan associations, credit unions, agencies and branches of weekly, and with the period beginning January 18, 2001, for institutions that report quarterly, 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 requriement was reduced from 12 percent to 10 percent on Apr. 2, 1992, for to make withdrawals by negotiable or transferable instruments, payment orders of with- institutions that report weekly, and on Apr. 16, 1992, for institutions that report quarterly. drawal, or telephone or preauthorized transfers for the purpose of making payments to third 5. For insitutions that report weekly, the reserve requirement on nonpersonal time deposits persons or others. However, accounts subject to the rules that permit no more than six with an original maturity of less than 1.5 years was reduced fom 3 percent to 1.5 percent for preauthorized, automatic, or other transfers per month (of which no more than three may be the maintenance period that began Dec. 13, 1990, and to zero for the maintenance period that by check, draft, debit card, or similar order payable directly to third parties) are savings began Dec. 27, 1990. For institutions that report quarterly, the reserve requirement on deposits, not transaction accounts. nonpersonal time deposits with an original maturity of less than 1.5 years was reduced from 3 3. The Monetary Control Act of 1980 requires that the amount of transaction accounts percent to zero on Jan. 17, 1991. against which the 3 percent reserve requirement applies be modified annually by 80 percent of The reserve requirement on nonpersonal time deposits with an original maturity of 1.5 the percentage change in transaction accounts held by all depository institutions, determiend years or more has been zero since Oct. 6, 1983. as of June 30 of each year. Effective with the reserve maintenance period beginning 6. The reserve requirement on eurocurrency liabilities was reduced from 3 percent to zero December 28, 2000, for depository institutions that report weekly, and with the period in the same manner and on the same dates as the reserve requirement on nonpersonal time beginning January 18, 2001, for institutions that report quarterly, the amount was decreased deposits with an original maturity of less than 1.5 years (see note 5). from $44.3 million to $42.8 million. Under the Garn-St. Germain Depository Institutions Act of 1982, the Board adjusts the amount of reservable liabilities subject to a zero percent reserve requirement each year for the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Policy Instruments A9 1.17 FEDERAL RESERVE OPEN MARKET TRANSACTIONS1 Millions of dollars 2001 TTyyppee ooff ttrraannssaaccttiioonn 11999988 11999999 22000000 aanndd mmaattuurriittyy Feb. Mar. Apr. May June July Aug. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 3,550 0 8,676 2,683 579 308 624 2,165 718 2,899 7 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 450,835 464,218 477,904 42,767 46,712 38,317 47,112 40,363 42,001 55,231 4 For new bills 450,835 464,218 477,904 42,767 46,712 38,317 47,112 40,363 42,001 55,231 5 Redemptions 2,000 0 24,522 638 211 3,537 3,939 0 0 0 Others within one year 6 Gross purchases 6,297 11,895 8,809 1,605 67 3,027 2,174 1,410 235 1,385 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 46,062 50,590 62,025 5,609 0 12,204 8,117 0 7,088 9,379 9 Exchanges -49,434 -53,315 -54,656 -6,799 0 -7,000 -8,965 0 -7,667 -6,873 10 Redemptions 2,676 1,429 3,779 1,529 0 4,368 2,287 0 4,668 1,055 One to five years 11 Gross purchases 12,901 19,731 14,482 2,983 1,883 4,480 2,685 1,428 4,193 810 1? Gross sales 0 0 0 0 0 0 0 0 0 0 N Maturity shifts -37,777 -44,032 -52,068 -2,784 0 -12,204 -1,913 0 1,838 -9,379 14 Exchanges 37,154 42,604 46,177 4,945 0 7,000 6,508 0 7,667 5,290 Five to ten years 15 Gross purchases 2,294 4,303 5,871 0 0 1,390 657 0 756 935 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,908 -5,841 -6,801 -1,855 0 0 -5,130 0 -8,926 1,043 18 Exchanges 7,439 7,583 6,585 971 0 0 2,457 0 0 1,043 More than ten years 19 Gross purchases 4,884 9,428 5.833 495 1,000 913 1,241 1,419 815 720 ?o Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -2,377 -717 -3,155 -971 0 0 -1,074 0 0 -1,043 22 Exchanges 4,842 3,139 1,894 883 0 0 0 0 0 540 All maturities 71 Gross purchases 29,926 45,357 43,670 7,766 3,529 10,118 7,380 6,422 6,716 6,749 74 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 4,676 1,429 28,301 2,166 211 7,905 6,226 0 4,668 1,055 Matched transactions ?6 Gross purchases 4,430,457 4,413,430 4,399,257 320,060 396,029 381,667 398,039 367,462 392,721 406,143 27 Gross sales 4,434,358 4,431,685 4,381,188 322,056 395,151 381,895 397,600 366,411 394,381 405,627 Repurchase agreements 28 Gross purchases 512,671 281,599 0 0 0 0 0 0 0 00 29 Gross sales 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 3,604 4,196 1,984 1,592 7,472 388 6,211 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 00 3? Gross sales 25 0 0 0 0 0 0 0 0 0 33 Redemptions 322 157 51 120 0 0 0 0 0 0 Repurchase agreements 34 Gross purchases 284,316 360,069 0 0 0 0 0 0 0 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 -120 0 0 0 0 0 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 00 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 304,989 890,236 67,655 86,472 85,166 120,135 65,005 106,355 103,255 40 Gross sales 0 164,349 987,501 62,910 88,142 82,154 114,832 72,065 103,255 99,850 41 Net change in triparty obligations 0 140,640 -97,265 4,745 -1,670 3,012 5,303 -7,060 3,100 3,405 42 Total net change in System Open Market Account .. 27,538 135,780 -63,877 8,229 2,526 4,996 6,895 412 3,488 9,616 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 Account; all other figures increase such holdings. principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A10 Domestic Financial Statistics • December 2001 1.18 FEDERAL RESERVE BANKS Condition and Federal Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2001 2001 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 July Aug. Sept. Consolidated condition statement ASSETS 1 Gold certificate account 11,044 11,044 11,043 11,043 11,043 11,044 11,044 11,045 2 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 3 Coin 1,106 1,079 1,081 1,102 1,116 1,109 1,096 1,141 Loans 4 To depository institutions 274 195 45,622 2,673 95 201 123 88 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Triparty obligations 7 Repurchase agreements—triparty2 24,755 31,215 61,005 39,600 51,290 26,350 29,755 47,880 Federal agency obligations5 8 Bought outright 10 10 10 10 10 10 10 10 9 Held under repurchase agreements 0 0 0 0 0 0 0 0 10 Total U.S. Treasury securities3 542,873 542,333 530,385 526,624 526,817 535,578 541,807 534,136 11 Bought outright4 542,873 542,333 530,385 526,624 526,817 535,578 541,807 534,136 12 Bills 184,710 184,129 171,336 167,582 167,782 180,184 183,600 175,104 13 Notes 257,099 256,194 257,040 257,036 257,032 254,627 256,196 257,030 14 Bonds 101,064 102,010 102,008 102,005 102,003 100,767 102,012 102,002 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 567,911 573,753 637,022 568,907 578,212 562,139 571,694 582,114 17 Items in process of collection 6,619 13,213 30,928 12,433 7,893 10,421 5,821 5,089 18 Bank premises 1,512 1,510 1,510 1,510 1,510 1,505 1,510 1.508 Other assets 19 Denominated in foreign currencies5 15,300 15,079 20,539 15,660 15,561 14,665 15,365 15,366 20 Another6 19,469 19,508 25,689 20,335 20,784 21,251 19,203 20,947 21 Total assets 625,160 637,387 730,013 633,190 638,318 624,333 627,932 639,410 LIABILITIES 22 Federal Reserve notes 579,849 583,065 584,378 584,010 582,129 572,980 581,820 580,619 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 20,634 25,676 115,894 21,101 31,067 23,733 22,808 35,532 25 Depository institutions 15,526 20,937 108,682 15,141 20,527 17,727 16,918 24,937 26 U.S. Treasury—General account 4,675 4,358 5,993 5,413 9,668 5,592 5,533 9,796 27 Foreign—Official accounts 151 73 69 258 635 84 80 609 28 Other 282 308 1,150 288 237 330 276 191 29 Deforced credit items 6,829 10,974 7,619 8,008 7,363 9,401 5,166 5,384 30 Other liabilities and accrued dividends7 3,055 3,049 7,189 4,575 2,944 3,076 3,137 2,971 31 Total liabilities 610,367 622,764 715,080 617,694 623,502 609,191 612,931 624,506 CAPITAL ACCOUNTS 32 Capital paid in 7,190 7,192 7,197 7,202 7,208 7,164 7,191 7,266 33 Surplus 6,747 6,735 6,743 6,764 6,760 6,723 6,747 6,741 34 Other capital accounts 855 696 992 1,530 848 1,256 1,063 896 35 Total liabilities and capital accounts 625,160 637,387 730,013 633,190 638,318 624,333 627,932 639,410 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) 739,484 739,818 740,653 740,984 741,775 738,388 739,560 742,539 38 LESS: Held by Federal Reserve Banks 159,635 156,753 156,275 156,974 159,646 165,409 157,740 161,920 39 Federal Reserve notes, net 579,849 583,065 584,378 584,010 582,129 572,980 581,820 580,619 Collateral held against notes, net 40 Gold certificate account 11,044 11,044 11,043 11,043 11,043 11,044 11,044 11,045 41 Special drawing rights certificate account 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 42 Other eligible assets 0 0 0 4,533 0 0 0 0 43 U.S. Treasury and agency securities 566,605 569,822 571,135 566,234 568,885 559,736 568,576 567,374 44 Total collateral 579,849 583,065 584,378 584,010 582,129 572,980 581,820 580,619 1. Some of the data in this table also appear in the Board's H.4.1 (503) weekly statistical 5. Valued monthly at market exchange rates. release. For ordering address, see inside front cover. 6. Includes special investment account at the Federal Reserve Bank of Chicago in Treasury 2. Cash value of agreements arranged through third-party custodial banks. bills maturing within ninety days. 3. Face value of the securities. 7. Includes exchange-translation account reflecting the monthly revaluation at market 4. Includes securities loaned—fully guaranteed by U.S. Treasury securities pledged with exchange rates of foreign exchange commitments. Federal Reserve Banks—and includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Excludes securities sold and scheduled to be bought back under matched sale-purchase transactions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Federal Reserve Banks All 1.19 FEDERAL RESERVE BANKS Maturity Distribution of Loan and Security Holding Millions of dollars Wednesday End of month TTTyyypppeee ooofff hhhooollldddiiinnnggg aaannnddd mmmaaatttuuurrriiitttyyy 2001 2001 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 July Aug. Sept. 1 Total loans 274 195 45,622 2,673 95 201 123 88 2 Within fifteen days1 266 117 45,545 2,662 92 160 106 69 3 Sixteen days to ninety days 8 78 77 12 3 41 17 19 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 542,873 542,333 530,385 526,624 526,817 535,578 541,807 534,137 6 Within fifteen days1 23,583 16,679 1,562 20,683 21,870 13,674 3,906 10,737 7 Sixteen days to ninety days 111,288 118,504 120,849 98,641 98,372 111,161 125,620 117,454 8 Ninety-one days to one year 132,942 131,525 131,504 130,836 130,118 135,091 136,653 129,491 9 One year to five years 141,985 141,453 142,304 142,304 142,304 144,732 141,453 142,304 10 Five years to ten years 55,433 55,583 55,579 55,576 55,572 53,824 55,584 55,571 11 More than ten years 77,642 78,589 78,586 78,584 78,581 77,095 78,590 78,581 12 Total federal agency obligations 10 10 10 10 10 10 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 10 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 Financial Statistics • December 2001 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2001 IItteemm D 19 e 9 c 7 . D 19 e 9 c 8 . D 19 e 9 c 9 . 2 D 0 e 0 c 0 . Feb. Mar. Apr. May June July Aug. Sept. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 46.85 45.18 41.78 38.51 38.87 38.26 38.79 38.89 38.77 39.60 39.89' 57.84 2 Nonborrowed reserves4 46.52 45.07 41.46 38.30 38.82 38.20 38.74 38.68 38.55 39.32 39.71 54.45 3 Nonborrowed reserves plus extended credit5 46.52 45.07 41.46 38.30 38.82 38.20 38.74 38.68 38.55 39.32 39.71 54.45 4 Required reserves 45.16 43.67 40.48 37.18 37.43 36.87 37.51 37.87 37.41 38.19 38.66 38.80 5 Monetary base6 479.47 513.49 593.09 583.96 591.12 592.42 595.93 599.09 601.88 607.69r 615.48' 639.73 Not seasonally adjusted 6 Total reserves7 48.01 45.31 41.89 38.60 39.38 37.76 38.66 39.46 38.33 39.41 39.75 57.67 7 Nonborrowed reserves 47.69 45.19 41.57 38.39 39.33 37.71 38.61 39.25 38.10 39.13 39.57 54.29 8 Nonborrowed reserves plus extended credit5 47.69 45.19 41.57 38.39 39.33 37.71 38.61 39.25 38.10 39.13 39.57 54.29 9 Required reserves8 46.33 43.80 40.59 37.27 37.95 36.38 37.38 38.44 36.97 38.01 38.52 38.64 10 Monetary base9 484.98 518.27 600.72 590.20 589.04 591.36 594.92 598.57 601.69 608.23' 614.51' 637.97 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 47.92 45.21 41.65 38.54 39.35 37.72 38.59 39.38 38.23 39.30 39.62 57.52 12 Nonborrowed reserves 47.60 45.09 41.33 38.33 39.30 37.66 38.54 39.17 38.00 39.01 39.44 54.13 13 Nonborrowed reserves plus extended credit5 47.60 45.09 41.33 38.33 39.30 37.66 38.54 39.17 38.00 39.01 39.44 54.13 14 Required reserves 46.24 43.70 40.36 37.22 37.92 36.33 37.31 38.36 36.87 37.89 38.39 38.48 15 Monetary base'2 491.79 525.06 608.02 597.12 595.59 598.20 601.84 605.48 608.83 615.56 622.00' 645.71 16 Excess reserves'3 1.69 1.51 1.30 1.33 1.43 1.39 1.28 1.02 1.36 1.41 1.23' 19.04 17 Borrowings from the Federal Reserve .32 .12 .32 .21 .05 .06 .05 .21 .23 .28 .18 3.39 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 adjusted required reserves include required reserves against transactions deposits and nonper- Reserve 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 2001 IItteemm D 19 e 9 c 7 . D 19 e 9 c 8 . D 19 e 9 c 9 . 2 D 0 e 0 c 0 . June' July' Aug.' Sept. Seasonally adjusted Measures2 1 Ml 1,073.4 1,097.0 1,124.8 1,088.2 1,122.7 1,135.4 1,143.2 1,194.6 2 M2 4,031.9 4,385.9 4,653.3 4,945.1 5,214.3 5,253.5 5,287.1 5,398.1 3 M3 5,430.8 6,027.8 6,527.9 7,108.5' 7,637.6 7,679.4 7,677.2 7,821.6 4 Debt 15,226.1 16,261.3 17,335.2 18,249.8' 18,751.7 18,803.2 18,889.7 n.a. Ml components 5 Currency3 424.3 459.2 516.7 529.9 548.1 553.7 562.4 556677..88 6 Travelers checks4 8.1 8.2 8.2 8.0 8.2 8.6 8.8 8.4 7 Demand deposits5 395.4 379.4 356.1 311.3 310.0 312.8 314.4 360.9 8 Other checkable deposits6 245.7 250.1 243.7 239.0 256.4 260.3 257.5 257.5 Nontransaction components 9 In M27 2,958.5 3,288.9 3,528.5 3,856.9 4,091.6 4,118.1 4,143.9 4,203.5 10 In M3 only8 1,399.0 1,641.9 1,874.6 2,163.4' 2,423.3 2,425.9 2,390.1 2,423.6 Commercial banks 11 Savings deposits, including MMDAs 1,021.1 1,185.8 1,287.0 1,421.7 1,564.6 1,580.9 1,613.3 1,655.6 12 Small time deposits® 625.5 626.4 635.2 699.5 680.6 672.1 667.0 661.2 13 Large time deposits10 " 517.4 575.2 648.3 726.5 712.1 705.4 690.9 688.6 Thrift institutions 14 Savings deposits, including MMDAs 376.8 414.1 449.3 451.9 498.6 508.5 519.4 529.9 15 Small time deposits9 342.9 325.8 320.9 346.6 353.1 350.2 346.6 344.7 16 Large time deposits10 85.5 88.7 91.3 103.2 109.9 111.7 114.4 115.6 Money market mutual funds 17 Retail 592.1 736.8 836.2 937.2 994.7 1,006.4 997.6 1,012.0 18 Institution-only 391.8 531.8 623.5 769.3 1,008.5 1,015.3 997.6 1,041.6 Repurchase agreements and eurodollars 19 Repurchase agreements12 254.3 294.5 338.2 367.3' 378.1 374.3 370.6 358.0 20 Eurodollars12 150.0 151.8 173.3 197.1 214.8 219.3 216.6 219.8 Debt components 21 Federal debt 3,800.4 3,751.1 3,660.1 3,400.4 3,313.7 3,327.9 3,349.0 n.a. 22 Nonfederal debt 11,425.6 12,510.2 13,675.1 14,849.4' 15,438.0 15,475.3 15,540.7 n.a. Not seasonally adjusted Measures2 23 Ml 1,096.9 1,120.4 1,148.3 1,112.4 1,122.1 1,135.3 1,140.4 1,189.4 24 M2 4,053.2 4,408.2 4,677.3 4,973.7 5,197.0 5,227.1 5,266.5 5,382.5 25 M3 5,456.2 6,059.9 6,565.4 7,153.5' 7,607.6 7,621.0 7,635.2 7,774.0 26 Debt 15,220.5 16,254.7r 17,328.0 18,239.3' 18,667.1 18,714.9 18.805.8 n.a. Ml components 27 Currency3 428.1 463.3 521.5 535.2 548.8 554.4 561.7 566.0 28 Travelers checks4 8.3 8.4 8.4 8.1 8.0 8.2 8.4 8.3 29 Demand deposits5 412.4 395.9 371.7 326.6 308.8 314.0 314.7 359.9 30 Other checkable deposits6 248.2 252.8 246.6 242.5 256.5 258.7 255.6 255.3 Nontransaction components 31 In M27 2,956.3 3,287.8 3,529.1 3,861.3 4,074.9 4,091.8 4,126.1 4,193.1 32 In M3 only8 1,403.0 1,651.8 1,888.1 2,179.8' 2,410.6 2,393.9 2,368.7 2,391.5 Commercial banks 33 Savings deposits, including MMDAs 1,020.4 1,186.0 1,288.5 1,426.4 1,567.2 1,579.4 1,607.2 1,653.5 34 Small time deposits9 625.3 626.5 635.4 699.8 677.0 670.4 666.2 661.5 35 Large time deposits10 " 516.8 574.5 647.7 725.8 715.2 703.6 686.8 683.9 Thrift institutions 36 Savings deposits, including MMDAs 376.5 414.2 449.8 453.4 499.4 508.1 517.5 529.3 37 Small time deposits9 342.8 325.8 321.0 346.8 351.2 349.2 346.2 344.8 38 Large time deposits10 85.4 88.6 91.2 103.1 110.4 111.4 113.7 114.8 Money market mutual funds 39 Retail 591.3 735.2 834.3 935.0 980.2 984.7 989.0 1,004.0 40 Institution-only 398.9 543.7 638.4 787.2 986.9 988.0 983.7 1,020.1 Repurchase agreements and eurodollars 41 Repurchase agreements12 249.5 290.4 334.7 364.2' 382.9 374.2 370.2 355.3 42 Eurodollars12 152.3 154.5 176.0 199.5 215.3 216.7 214.3 217.3 Debt components 43 Federal debt 3,805.8 3,754.9 3,663.2 3,403.5 3,260.4 3,257.7 3,291.0 n.a. 44 Nonfederal debt 11,414.8 12,499.7 13,664.9 14,835.8' 15,406.8 15,457.2 15,514.8 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Financial Statistics • December 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 noncorporate businesses, and farms). Nonfederal debt consists of mortgages, tax-exempt and Reserve System, Washington, DC 20551. corporate bonds, consumer credit, bank loans, commercial paper, and other loans. The data, 2. Composition of the money stock measures and debt is as follows: which are derived from the Federal Reserve Board's flow of funds accounts, are break- Ml: (1) currency outside the U.S. Treasury, Federal Reserve Banks, and the vaults of adjusted (that is, discontinuities in the data have been smoothed into the series) and depository institutions, (2) travelers checks of nonbank issuers, (3) demand deposits at all month-averaged (that is, the data have been derived by averaging adjacent month-end levels). commercial banks other than those owed to depository institutions, the U.S. government, and 3. Currency outside the U.S. Treasury, Federal Reserve Banks, and vaults of depository foreign banks and official institutions, less cash items in the process of collection and Federal institutions. Reserve float, and (4) other checkable deposits (OCDs), consisting of negotiable order of 4. Outstanding amount of U.S. dollar-denominated travelers checks of nonbank issuers. withdrawal (NOW) and automatic transfer service (ATS) accounts at depository institutions, Travelers checks issued by depository institutions are included in demand deposits. credit union share draft accounts, and demand deposits at thrift institutions. Seasonally 5. Demand deposits at commercial banks and foreign-related institutions other than those adjusted Ml is computed by summing currency, travelers checks, demand deposits, and owed to depository institutions, the U.S. government, and foreign banks and official institu- OCDs, each seasonally adjusted separately. tions, less cash items in the process of collection and Federal Reserve float. M2: Ml plus (1) savings deposits (including MMDAs), (2) small-denomination time 6. Consists of NOW and ATS account balances at all depository institutions, credit union deposits (time deposits—including retail RPs—in amounts of less than $100,000), and (3) share draft account balances, and demand deposits at thrift institutions. balances in retail money market mutual funds. Excludes individual retirement accounts 7. Sum of (1) savings deposits (including MMDAs), (2) small time deposits, and (3) retail (IRAs) and Keogh balances at depository institutions and money market funds. Seasonally money fund balances. adjusted M2 is calculated by summing savings deposits, small-denomination time deposits, 8. Sum of (1) large time deposits, (2) institutional money fund balances, (3) RP liabilities and retail money fund balances, each seasonally adjusted separately, and adding this result to (overnight and term) issued by depository institutions, and (4) eurodollars (overnight and seasonally adjusted Ml. term) of U.S. addressees. M3: M2 plus (1) large-denomination time deposits (in amounts of $100,000 or more) 9. Small time deposits—including retail RPs—are those issued in amounts of less than issued by all depository institutions, (2) balances in institutional money funds, (3) RP $100,000. All IRAs and Keogh accounts at commercial banks and thrift institutions are liabilities (overnight and term) issued by all depository institutions, and (4) eurodollars subtracted from small time deposits. (overnight and term) held by U.S. residents at foreign branches of U.S. banks wolrdwide 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 2001 2001 Sept.' Mar.r Apr/ May1" June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Seasonally adjusted Assets 1 Bank credit 5,161.7 5,293.9 5,317.7 5,326.8 5,323.3 5,320.9 5,335.7 5,412.8 5,347.2 5,501.2 5,427.7 5,381.8 2 Securities in bank credit 1,333.1 1,346.2 1,363.9 1,371.5 1,381.3 1,386.4 1,420.3 1,446.6 1,422.5 1,427.9 1,451.2 1,460.8 3 U.S. government securities 804.3 755.3 763.3 767.2 766.5 773.5 786.6 798.6 792.2 795.8 795.7 797.3 4 Other securities 528.8 590.9 600.7 604.3 614.8 612.9 633.7 648.0 630.4 632.1 655.5 663.4 5 Loans and leases in bank credit2 .... 3,828.6 3,947.7 3,953.7 3,955.3 3,942.0 3,934.5 3,915.4 3,966.2 3,924.7 4,073.3 3,976.5 3,921.1 Commercial and industrial 1,079.6 1,103.5 1,099.3 1,096.3 1,079.4 1,068.4 1,061.5 1,064.2 1,059.5 1,072.9 1,065.3 1,063.9 1 Real estate 1,639.1 1,683.9 1,690.7 1,701.8 1,705.1 1,713.5 1,708.6 1,714.4 1,714.0 1,714.2 1,721.4 1,709.9 8 Revolving home equity 123.3 137.1 138.4 139.7 140.9 142.5 143.9 146.3 145.1 145.5 147.0 146.7 9 Other 1,515.8 1,546.8 1,552.4 1,562.1 1,564.3 1,570.9 1,564.7 1,568.1 1,568.8 1,568.7 1,574.4 1,563.2 10 Consumer 530.3 544.6 548.4 552.6 551.1 548.9 547.3 547.5 548.6 546.3 549.1 546.1 11 Security3 168.5 178.1 179.6 168.1 172.0 169.9 170.2 182.1 177.4 218.9 183.5 164.6 17 Other loans and leases 411.1 437.5 435.8 436.4 434.4 433.8 427.8 458.0 425.2 520.9 457.1 436.6 n Interbank loans 238.9 273.6 290.0 283.4 268.1 272.8 288.1 356.1 299.9 441.1 357.4 335.7 14 Cash assets4 286.1 286.1 288.3 282.0 275.2 288.1 282.4 326.3 304.4 387.0 327.2 294.4 15 Other assets5 379.0 416.8 418.2 411.3 403.7 412.6 422.1 456.2 425.3 461.5 441.6 471.2 16 Total assets6 6,003.4 6,205.2 6,248.5 6,237.7 6,204.5 6,228.1 6,261.6 6,484.5 6,310.4 6,724.1 6,487.2 6,416.4 Liabilities 17 Deposits 3,773.3 3,929.2 3,992.6 4,007.3 4,041.3 4,065.2 4,073.3 4,201.4 4,129.0 4,353.0 4,182.5 4,145.8 18 Transaction 607.6 605.7 609.0 612.7 600.7 605.7 610.6 687.9 611.3 790.6 697.7 668.8 19 Nontransaction 3,165.7 3,323.6 3,383.7 3,394.6 3,440.6 3,459.5 3,462.8 3,513.4 3,517.7 3,562.4 3,484.8 3,477.0 20 Large time 917.5 937.9 951.3 966.1 979.1 972.8 960.0 957.4 961.0 971.2 940.9 951.9 21 Other 2,248.1 2,385.6 2,432.3 2,428.5 2,461.5 2,486.7 2,502.7 2,556.1 2,556.8 2,591.2 2,543.9 2,525.1 22 Borrowings 1,212.1 1,244.7 1,280.6 1,248.7 1,214.8 1,225.3 1,233.6 1,284.3 1,229.7 1,374.8 1,283.3 1,250.7 23 From banks in the U.S 379.6 395.2 404.8 383.7 381.5 389.3 396.9 439.9 415.6 504.5 426.2 419.2 24 From others 832.5 849.5 875.8 865.0 833.2 836.0 836.7 844.4 814.1 870.3 857.1 831.4 25 Net due to related foreign offices 262.9 233.5 190.0 207.4 184.5 190.9 194.0 169.8 173.8 164.2 182.2 168.2 26 Other liabilities 337.4 353.9 349.9 339.9 351.3 330.5 340.2 389.5 345.6 392.3 399.0 405.4 27 Total liabilities 5,585.6 5,761.4 5,813.2 5,803.4 5,791.8 5,811.8 5,841.0 6,045.1 5,878.1 6,284.3 6,046.9 5,970.1 28 Residual (assets less liabilities)7 417.7 443.9 435.4 434.3 412.6 416.3 420.6 439.5 432.2 439.8 440.3 446.4 Not seasonally adjusted Assets 29 Bank credit 5,156.6 5,280.9 5,310.0 5,316.0 5,316.1 5,300.3 5,318.4 5,407.0 5,336.4 5,489.0 5,428.2 5,374.5 30 Securities in bank credit 1,328.9 1,350.3 1,365.5 1,370.8 1,380.6 1,377.3 1,413.4 1,442.8 1,422.2 1,425.2 1,446.4 1,454.1 31 U.S. government securities 800.8 761.2 768.1 768.1 766.8 769.4 782.0 795.5 791.7 794.0 792.1 792.6 32 Other securities 528.1 589.1 597.4 602.7 613.8 607.9 631.5 647.2 630.4 631.1 654.3 661.5 33 Loans and leases in bank credit2 .... 3,827.6 3,930.6 3,944.5 3,945.3 3,935.5 3,923.0 3,904.9 3,964.2 3,914.2 4,063.8 3,981.8 3,920.4 34 Commercial and industrial 1,076.3 1,105.1 1,103.9 1,098.6 1,081.6 1,067.6 1,055.3 1,060.9 1,053.0 1,066.0 1,064.2 1,061.7 35 Real estate 1,642.0 1,676.5 1,686.4 1,702.2 1,704.5 1,712.5 1,711.8 1.718.1 1,716.5 1,719.0 1,725.1 1,713.4 36 Revolving home equity 124.5 135.5 137.4 139.7 141.1 143.0 144.7 147.7 146.2 146.9 148.5 148.3 37 Other 1,517.5 1,541.0 1,549.0 1,562.5 1,563.5 1,569.6 1,567.0 1,570.4 1,570.3 1,572.1 1,576.6 1,565.1 38 Consumer 532.8 540.8 545.3 550.4 548.4 546.4 548.3 549.7 550.6 548.6 552.7 548.6 39 Credit cards and related plans . . 207.8 208.6 213.9 218.8 216.9 216.3 217.0 215.7 217.0 214.8 218.6 214.2 40 Other 325.1 332.2 331.4 331.7 331.5 330.0 331.4 334.0 333.7 333.8 334.1 334.5 41 Security3 163.6 173.9 175.2 162.1 167.4 162.2 161.8 175.7 164.6 207.3 182.2 160.6 42 Other loans and leases 412.9 434.3 433.7 432.0 433.5 434.2 427.7 459.7 429.5 522.9 457.6 436.1 43 Interbank loans 231.4 280.9 296.1 276.8 266.0 265.1 276.7 344.2 301.3 428.8 343.0 312.7 44 Cash assets4 282.2 275.4 283.5 279.8 271.3 279.0 270.7 321.6 319.3 384.2 314.8 283.0 45 Other assets5 378.9 416.1 418.0 411.6 404.5 411.1 419.3 456.2 427.2 462.4 440.0 468.2 46 Total assets6 5,986.6 6,188.1 6,242.2 6,218.3 6,191.9 6,189.4 6,218.2 6,461.9 6,317.4 6,697.3 6,458.9 6,371.7 Liabilities 47 Deposits 3,751.1 3,939.6 4,011.9 3,995.3 4,022.3 4,033.6 4,032.8 4,175.9 4,133.9 4,339.9 4,141.4 4,091.0 48 Transaction 602.7 599.7 615.2 603.0 600.3 599.4 596.7 681.8 627.2 790.9 680.9 646.7 49 Nontransaction 3,148.4 3,339.9 3,396.7 3,392.3 3,422.0 3,434.2 3,436.1 3,494.1 3,506.7 3,549.0 3,460.6 3,444.3 50 Large time 907.0 941.1 952.6 964.8 969.5 959.0 946.6 946.1 948.1 958.8 929.4 941.9 51 Other 2,241.4 2,398.8 2,444.1 2,427.5 2,452.5 2,475.2 2,489.5 2,548.0 2,558.6 2,590.2 2,531.2 2,502.4 52 Borrowings 1,209.0 1,243.1 1,281.3 1,253.8 1,215.6 1,215.9 1,211.7 1,279.1 1,218.0 1,355.2 1,289.0 1,252.1 53 From banks in the U.S 372.5 398.9 408.0 386.8 382.3 386.0 388.6 430.1 407.1 489.6 419.5 409.7 54 From others 836.4 844.2 873.3 867.0 833.3 829.9 823.1 849.0 810.9 865.6 869.5 842.4 55 Net due to related foreign offices 264.1 232.4 183.0 206.6 180.7 184.6 193.2 171.7 177.3 166.1 182.7 171.8 56 Other liabilities 337.6 352.7 345.0 340.6 349.2 326.1 340.0 390.0 347.1 392.6 398.1 408.4 57 Total liabilities 5,561.7 5,767.9 5,821.2 5,796.3 5,767.8 5,760.1 5,777.6 6,016.6 5,876.3 6,253.8 6,011.3 5,923.3 58 Residual (assets less liabilities)7 424.8 420.2 421.0 422.0 424.1 429.3 440.6 445.3 441.0 443.5 447.7 448.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • December 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued B. Domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Sept.r Mar.r Apr.r May' June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Seasonally adjusted Assets 1 Bank credit 4,564.5 4,665.8 4,691.0 4,715.3 4,720.4 4,728.4 4,743.5 4,826.5 4,755.3 4,918.8 4,836.6 4,794.8 2 Securities in bank credit 1,120.9 1,136.7 1,143.0 1,157.0 1,165.3 1,169.9 1,200.8 1,226.7 1,202.1 1,211.2 1,231.7 1,238.8 3 U.S. government securities 728.9 688.1 688.9 697.5 698.4 706.4 719.8 729.0 723.5 727.9 726.8 726.2 4 Other securities 392.0 448.6 454.1 459.4 466.9 463.5 481.0 497.7 478.5 483.3 504.9 512.7 5 Loans and leases in bank credit2 .... 3,443.6 3,529.1 3,548.0 3,558.3 3,555.1 3,558.6 3,542.7 3,599.8 3,553.2 3,707.6 3,604.9 3,555.9 6 Commercial and industrial 874.6 884.3 879.9 877.9 868.1 862.2 856.5 859.6 856.3 869.4 857.9 858.5 7 Real estate 1,620.8 1,665.9 1,673.3 1,684.1 1,687.5 1,695.6 1,690.4 1,695.7 1,695.2 1,695.9 1,702.6 1,691.0 8 Revolving home equity 123.3 137.1 138.4 139.7 140.9 142.5 143.9 146.3 145.1 145.5 147.0 146.7 9 Other 1,497.5 1,528.7 1,534.9 1,544.4 1,546.7 1,553.1 1,546.5 1,549.4 1,550.1 1,550.4 1,555.6 1,544.3 10 Consumer 530.3 544.6 548.4 552.6 551.1 548.9 547.3 547.5 548.6 546.3 549.1 546.1 11 Security3 73.9 66.9 78.8 75.2 80.8 83.5 86.4 104.0 91.7 141.1 104.6 87.9 12 Other loans and leases 344.0 367.4 367.6 368.4 367.6 368.4 362.1 393.1 361.4 454.8 390.7 372.5 13 Interbank loans 215.1 244.0 262.3 253.8 246.2 251.6 267.7 330.3 274.5 419.6 326.8 307.8 14 Cash assets4 241.6 246.0 249.6 244.7 238.9 251.3 245.2 281.6 265.6 334.8 278.1 255.0 15 Other assets5 339.6 379.6 378.5 374.0 366.5 380.9 393.0 424.7 399.1 431.5 408.4 437.0 16 Total assets6 5,298.7 5,470.7 5,516.0 5,522.4 5,506.6 5,546.2 5,583.0 5,796.7 5,628.5 6,038.3 5,783.5 5,728.2 Liabilities 17 Deposits 3,387.5 3,549.0 3,598.3 3,598.8 3,622.6 3,652.7 3,670.1 3,797.3 3,726.4 3,945.0 3,784.5 3,740.8 18 Transaction 597.5 596.0 598.2 602.2 591.2 596.4 600.7 675.0 599.1 775.8 685.1 655.8 19 Nontransaction 2,790.0 2,952.9 3,000.1 2,996.7 3,031.4 3,056.3 3,069.4 3,122.2 3,127.3 3,169.2 3,099.4 3,085.0 20 Large time 544.1 569.6 570.0 570.4 572.2 572.0 569.0 568.5 572.9 580.3 557.9 562.2 21 Other 2,245.9 2,383.4 2,430.0 2,426.2 2,459.2 2,484.3 2,500.4 2,553.7 2,554.4 2,588.9 2,541.6 2,522.8 22 Borrowings 994.3 1,008.7 1,040.4 1,029.7 999.0 1,014.6 1,023.3 1,065.7 1,022.4 1,146.8 1,055.3 1,037.9 23 From banks in the U.S 359.6 369.5 379.5 363.4 359.1 366.9 376.0 410.7 397.2 459.5 398.9 396.4 24 From others 634.6 639.3 660.9 666.3 640.0 647.6 647.3 655.0 625.2 687.3 656.4 641.5 25 Net due to related foreign offices 241.4 211.5 185.5 211.8 204.1 207.1 205.7 188.1 184.6 197.8 189.9 181.8 26 Other liabilities 261.0 271.3 261.1 253.8 266.7 250.9 261.5 309.0 270.7 313.7 313.9 323.2 27 Total liabilities 4,884.1 5,040.5 5,085.3 5,094.1 5,092.4 5,125.3 5,160.5 5,360.1 5,204.2 5,603.2 5,343.5 5,283.7 28 Residual (assets less liabilities)7 414.6 430.2 430.8 428.3 414.1 420.9 422.4 436.6 424.3 435.1 440.0 444.5 Not seasonally adjusted Assets 29 Bank credit 4,561.1 4,657.9 4,686.2 4,709.2 4,716.9 4,712.3 4,732.5 4,822.4 4,753.5 4,910.1 4,836.8 4,785.9 30 Securities in bank credit 1,116.7 1,140.8 1,144.6 1,156.2 1,164.6 1,160.8 1,193.9 1,222.8 1,201.7 1,208.5 1,226.9 1,232.2 31 U.S. government securities 725.4 693.9 693.7 698.4 698.7 702.3 715.2 726.0 723.1 726.2 723.3 721.4 32 Other securities 391.3 446.8 450.9 457.8 465.9 458.5 478.8 496.9 478.6 482.3 503.6 510.7 33 Loans and leases in bank credit2 .... 3,444.5 3,517.1 3,541.7 3,553.0 3,552.3 3,551.5 3,538.6 3,599.6 3,551.8 3,701.6 3,610.0 3,553.8 34 Commercial and industrial 871.7 884.7 886.3 883.3 871.5 862.1 851.7 856.7 851.6 863.8 856.9 855.7 35 Real estate 1,623.7 1,658.4 1,668.9 1,684.5 1,686.9 1,694.7 1,693.6 1,699.4 1,697.7 1,700.8 1,706.3 1,694.5 36 Revolving home equity 124.5 135.5 137.4 139.7 141.1 143.0 144.7 147.7 146.2 146.9 148.5 148.3 37 Other 1,499.2 1,522.9 1,531.5 1,544.8 1,545.9 1,551.7 1,548.8 1,551.6 1,551.5 1,553.8 1,557.8 1,546.2 38 Consumer 532.8 540.8 545.3 550.4 548.4 546.4 548.3 549.7 550.6 548.6 552.7 548.6 39 Credit cards and related plans . . 207.8 208.6 213.9 218.8 216.9 216.3 217.0 215.7 217.0 214.8 218.6 214.2 40 Other 325.1 332.2 331.4 331.7 331.5 330.0 331.4 334.0 333.7 333.8 334.1 334.5 41 Security3 70.2 68.9 75.8 70.0 78.2 78.6 81.8 98.8 85.9 131.3 102.4 82.9 42 Other loans and leases 345.9 364.2 365.3 364.8 367.3 369.8 363.2 395.0 366.0 457.1 391.7 372.0 43 Interbank loans 207.6 251.3 268.3 247.3 244.1 243.8 256.3 318.4 275.9 407.2 312.4 284.8 44 Cash assets4 238.6 236.8 246.3 243.3 236.2 243.5 234.6 277.9 281.9 334.1 267.3 243.1 45 Other assets5 339.8 378.3 379.2 374.8 368.7 380.2 390.4 424.9 400.8 432.4 407.3 434.5 46 Total assets6 5,284.9 5,459.4 5,515.1 5,509.1 5,500.2 5,514.1 5,547.4 5,777.0 5,645.7 6,017.0 5,757.2 5,682.1 Liabilities 47 Deposits 3,372.8 3,554.8 3,614.7 3,585.6 3,610.8 3,631.3 3,641.3 3,779.7 3,743.0 3,942.2 3,752.0 3,689.3 48 Transaction 592.3 590.3 605.0 592.8 590.9 590.0 586.8 668.6 614.9 776.0 668.1 632.9 49 Nontransaction 2,780.5 2,964.5 3,009.7 2,992.8 3,019.8 3,041.2 3,054.5 3,111.1 3,128.1 3,166.2 3,083.9 3,056.4 50 Large time 541.2 568.0 567.9 567.6 569.6 568.3 567.3 565.4 571.8 578.3 555.0 556.4 51 Other 2,239.2 2,396.5 2,441.8 2,425.2 2,450.2 2,472.9 2,487.2 2,545.7 2,556.3 2,587.9 2,528.9 2,500.1 52 Borrowings 991.2 1,007.1 1,041.1 1.034.7 999.9 1,005.2 1,001.4 1,060.5 1,010.7 1,127.2 1,061.0 1,039.4 53 From banks in the U.S 352.6 373.1 382.7 366.5 359.9 363.7 367.7 400.9 388.7 444.5 392.2 387.0 54 From others 638.6 634.0 658.4 668.2 640.0 641.5 633.7 659.5 622.1 682.7 668.8 652.4 55 Net due to related foreign offices 240.6 210.3 183.1 214.1 203.4 204.0 206.1 187.5 184.3 196.6 188.5 183.7 56 Other liabilities 260.2 270.0 258.3 256.0 266.2 248.0 261.9 308.3 270.5 312.4 312.1 325.3 57 Total liabilities 4,864.7 5,042.3 5,097.2 5,090.5 5,080.2 5,088.4 5,110.7 5,336.0 5,208.5 5,578.4 5,313.6 5,237.7 58 Residual (assets less liabilities)7 420.2 417.1 417.9 418.6 420.0 425.6 436.7 441.0 437.2 438.6 443.6 444.4 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities 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 2001 2001 Sept.' Mar.' Apr.' May' June' July1 Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Seasonally adjusted Assets 1 Bank credit 2,570.5 2,600.1 2,620.3 2,631.6 2,629.3 2,622.5 2,622.8 2,686.0 2,622.5 2,788.0 2,694.9 2,652.1 ? Securities in bank credit 589.4 592.0 598.6 608.7 612.4 609.7 630.9 641.9 623.7 634.1 645.0 653.3 U.S. government securities 364.5 343.2 346.3 354.4 352.6 353.3 361.0 364.2 357.9 362.6 366.2 365.2 4 Trading account 22.8 35.4 33.7 35.3 35.1 38.3 36.3 37.9 35.8 41.4 42.1 34.0 Investment account 341.8 307.7 312.6 319.2 317.5 315.0 324.8 326.3 322.1 321.3 324.1 331.2 6 Other securities 224.8 248.8 252.3 254.2 259.7 256.4 269.9 277.7 265.7 271.5 278.7 288.1 7 Trading account 114.8 132.5 135.9 137.0 143.5 140.8 153.1 160.9 149.2 154.8 161.7 171.1 8 Investment account 110.0 116.3 116.3 117.2 116.3 115.6 116.8 116.8 116.5 116.7 117.0 117.0 9 State and local government . . 25.7 28.1 28.4 28.1 27.9 27.8 27.6 27.5 27.5 27.7 27.5 27.5 in Other 84.2 88.2 88.0 89.1 88.4 87.8 89.2 89.3 89.0 89.0 89.5 89.5 11 Loans and leases in bank credit2 .... 1,981.1 2,008.1 2,021.7 2,022.9 2,016.9 2,012.8 1,991.8 2,044.1 1,998.8 2,153.9 2,049.9 1,998.7 17. Commercial and industrial 594.1 589.4 585.2 582.8 570.8 561.7 556.6 560.7 556.3 571.7 559.1 559.3 n Bankers acceptances .9 .8 .8 .8 .7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Other 593.2 588.6 584.4 582.0 570.1 561.7 556.6 560.7 556.3 571.7 559.1 559.3 15 Real estate 831.2 841.5 848.3 854.1 852.9 853.9 844.5 844.4 845.2 852.3 850.7 835.1 16 Revolving home equity 79.2 85.2 86.2 86.7 86.9 86.8 87.3 88.9 88.1 88.7 89.3 8888..88 17 Other 752.0 756.3 762.1 767.4 766.0 767.1 757.2 755.6 757.1 763.6 761.4 774466..33 18 Consumer 235.6 248.8 249.8 252.3 254.2 253.8 250.9 252.3 252.2 253.3 252.9 251.9 19 Security3 67.1 59.0 70.4 66.8 72.5 75.1 78.0 93.6 83.3 124.3 96.1 79.2 20 Federal funds sold to and repurchase agreements with broker-dealers 46.8 43.7 53.9 49.4 54.7 59.6 63.5 66.3 68.7 7733..11 69.1 6600..33 ?1 Other 20.3 15.3 16.5 17.4 17.8 15.5 14.5 27.3 14.6 51.2 27.0 18.9 77 State and local government 12.8 13.0 13.0 13.0 13.3 14.2 14.1 14.3 14.1 14.2 14.2 14.4 23 Agricultural 9.5 10.4 10.4 10.6 10.3 10.0 9.4 9.2 9.2 9.2 9.2 9.1 24 Federal funds sold to and repurchase agreements with others 16.4 26.2 23.0 23.6 25.5 30.8 31.8 32.5 30.9 3366..77 3366..11 2299..00 75 All other loans 86.3 86.8 87.7 85.5 84.7 81.5 75.5 105.6 76.4 160.7 99.9 89.0 76 Lease-financing receivables 128.2 133.0 133.8 134.4 132.6 131.7 131.0 131.5 131.2 131.5 131.8 131.6 77 Interbank loans 134.3 139.3 147.9 134.3 131.0 135.8 150.1 207.9 159.4 280.7 206.7 186.4 28 Federal funds sold to and repurchase agreements with commercial banks 59.2 72.2 84.0 72.9 72.3 70.9 79.6 132.1 88.5 119999..55 112266..11 111133..99 79 Other 75.1 67.1 63.9 61.4 58.7 64.9 70.4 75.8 70.8 81.1 80.6 72.5 30 Cash assets4 143.6 142.8 145.6 139.9 135.7 146.2 140.1 173.7 158.1 226.6 171.9 146.6 31 Other assets5 256.0 282.0 276.9 274.0 261.8 267.8 277.1 302.6 277.9 310.9 280.1 321.9 32 Total assets6 3,068.5 3,126.4 3,152.7 3,142.2 3,120.0 3,134.3 3,151.9 3,332.3 3,180.3 3,568.2 3,315.8 3,269.0 Liabilities 33 Deposits 1,666.4 1,716.2 1,741.2 1,732.1 1,736.7 1,748.8 1,751.2 1,855.9 1,789.7 2,008.2 1,837.9 1,800.0 34 Transaction 305.2 303.4 303.2 304.1 299.7 306.0 303.6 374.7 309.2 482.2 381.8 342.1 35 Nontransaction 1,361.2 1,412.9 1,438.0 1,428.0 1,437.0 1,442.8 1,447.5 1,481.2 1,480.5 1,526.0 1,456.1 1,458.0 36 Large time 261.1 268.5 268.4 270.7 274.1 271.1 264.4 264.3 266.6 275.0 253.9 261.3 37 Other 1,100.1 1,144.4 1,169.6 1,157.3 1,162.9 1,171.7 1,183.1 1,216.9 1,213.9 1,250.9 1,202.2 1,196.6 38 Borrowings 650.0 668.5 696.5 682.4 654.5 667.7 673.3 704.6 668.4 775.1 696.3 678.3 39 From banks in the U.S 196.5 220.4 230.7 213.4 211.0 218.8 226.4 257.2 245.4 302.4 247.3 242.7 40 From others 453.6 448.0 465.8 469.0 443.5 449.0 446.9 447.4 423.0 472.8 449.0 435.5 41 Net due to related foreign offices 220.9 196.1 172.7 195.2 190.9 192.4 190.2 177.6 171.8 188.7 179.1 171.4 42 Other liabilities 228.3 232.6 221.1 211.5 223.7 205.4 215.7 263.8 225.5 266.0 273.0 281.7 43 Total liabilities 2,765.6 2,813.4 2,831.5 2,821.2 2,805.9 2,814.4 2,830.4 3,001.9 2,855.5 3,237.9 2,986.3 2,931.5 44 Residual (assets less liabilities)7 302.9 313.0 321.3 321.0 314.1 319.9 321.5 330.4 324.8 330.3 329.5 337.6 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 Domestic Financial Statistics • December 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued C. Large domestically chartered commercial banks—Continued Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2000 2001 2001 Sept.' Mar.' Apr.' May' June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Not seasonally adjusted Assets 45 Bank credit 2,562.0 2,596.6 2,615.9 2,625.1 2,623.9 2,606.3 2,608.6 2,676.5 2,616.7 2,774.0 2,687.7 2,636.3 46 Securities in bank credit 585.5 593.8 597.6 606.4 610.0 600.8 624.8 638.3 624.2 631.4 639.9 645.9 4'/ U.S. government securities 361.4 346.8 348.5 353.8 351.3 349.4 357.1 361.3 358.4 360.8 362.3 359.7 48 Trading account 22.6 35.8 34.0 35.2 35.0 37.9 35.9 37.6 35.9 41.2 41.7 33.5 49 Investment account 338.9 311.0 314.5 318.6 316.3 311.5 321.2 323.7 322.5 319.7 320.7 326.1 50 Mortgage-backed securities . 213.5 219.7 227.2 233.9 230.3 230.7 243.7 249.2 247.2 245.3 244.3 253.1 51 Other 125.4 91.3 87.3 84.6 86.1 80.9 77.5 74.4 75.3 74.3 76.4 73.1 52 One year or less 33.5 31.6 30.0 26.9 25.4 21.0 20.0 20.0 22.4 20.2 21.6 17.9 53 One to five years 54.1 34.3 31.4 31.1 34.2 34.2 33.7 34.4 32.1 33.8 34.2 36.2 54 More than five years .... 37.7 25.4 25.9 26.6 26.5 25.8 23.9 20.0 20.8 20.3 20.7 18.9 55 Other securities 224.1 247.0 249.0 252.6 258.7 251.4 267.7 277.0 265.8 270.5 277.5 286.3 56 Trading account 114.5 131.5 134.2 136.1 142.9 138.1 151.9 160.5 149.3 154.3 161.1 170.0 57 Investment account 109.6 115.5 114.9 116.5 115.8 113.4 115.8 116.5 116.5 116.3 116.5 116.3 58 State and local government . 25.7 27.9 28.0 28.0 27.8 27.3 27.3 27.4 27.5 27.6 27.4 27.3 59 Other 84.0 87.6 86.8 88.5 88.1 86.1 88.5 89.1 89.0 88.7 89.1 88.9 60 Loans and leases in bank credit2 . . . 1,976.5 2,002.8 2,018.3 2,018.7 2,013.8 2,005.4 1,983.8 2,038.2 1,992.5 2,142.6 2,047.8 1,990.3 61 Commercial and industrial 592.6 590.2 589.5 585.5 572.4 561.7 553.4 559.3 553.6 568.4 559.2 557.5 62 Bankers acceptances .9 .8 .8 .8 .7 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 63 Other 591.8 589.4 588.7 584.7 571.6 561.7 553.4 559.3 553.6 568.4 559.2 557.5 64 Real estate 832.6 835.7 844.3 853.7 851.5 852.4 845.9 846.3 847.1 855.3 852.4 835.8 65 Revolving home equity 80.2 83.8 85.3 86.7 87.1 87.4 88.4 90.0 89.4 89.9 90.4 89.9 66 Other 461.7 455.3 462.1 468.6 465.0 465.5 458.5 457.6 459.5 466.1 462.6 447.2 67 Commercial 290.6 296.6 297.0 298.4 299.4 299.5 299.0 298.7 298.2 299.3 299.3 298.7 68 Consumer 234.7 248.5 250.4 252.7 253.6 252.1 249.7 251.1 251.3 252.0 251.8 250.6 69 Credit cards and related plans . 75.5 82.7 84.7 87.0 88.0 87.3 85.1 84.6 85.3 85.0 85.4 84.0 70 Other 159.2 165.8 165.8 165.8 165.7 164.8 164.6 166.5 166.0 167.1 166.5 166.6 71 Security3 63.6 60.7 67.4 61.9 70.1 70.4 73.5 88.6 77.2 114.9 94.1 74.8 72 Federal funds sold to and repurchase agreements with broker-dealers 44.3 45.0 51.5 45.8 52.9 55.9 59.8 62.8 63.7 67.6 67.7 56.9 73 Other 19.2 15.7 15.8 16.1 17.2 14.5 13.7 25.8 13.5 47.3 26.4 17.9 74 State and local government 12.8 13.0 13.0 13.0 13.3 14.2 14.1 14.3 14.1 14.2 14.2 14.4 75 Agricultural 9.6 10.2 10.2 10.5 10.4 10.1 9.6 9.3 9.3 9.3 9.3 9.3 76 Federal funds sold to and repurchase agreements with others 16.4 26.2 23.0 23.6 25.5 30.8 31.8 32.5 30.9 36.7 36.1 29.0 77 All other loans 87.3 84.8 86.6 84.0 84.8 82.4 75.6 106.8 79.0 161.9 100.7 88.9 78 Lease-financing receivables 126.9 133.5 133.9 133.7 132.2 131.2 130.2 130.1 130.0 130.0 130.0 130.1 79 Interbank loans 129.8 140.4 150.0 136.7 135.4 135.6 144.5 200.1 155.9 267.1 200.5 177.8 80 Federal funds sold to and repurchase agreements with commercial banks 57.3 72.8 85.1 74.1 74.7 70.8 76.7 127.1 86.6 189.9 122.3 108.6 81 Other 72.5 67.6 64.9 62.5 60.7 64.8 67.8 73.0 69.3 77.2 78.2 69.2 82 Cash assets4 140.2 137.9 145.9 140.1 134.1 139.8 132.3 169.4 165.0 223.5 163.7 137.8 83 Other assets5 256.2 280.7 277.6 274.9 264.0 267.1 274.4 302.9 279.7 311.8 279.0 319.4 84 Total assets6 3,052.1 3,117.7 3,151.7 3,138.9 3,119.5 3,110.9 3,121.6 3,310.5 3,179.2 3,538.1 3,292.7 3,233.4 Liabilities 85 Deposits 1,657.1 1,714.7 1,750.3 1,725.3 1,736.2 1,740.6 1,735.2 1,844.7 1,799.2 2,005.4 1,818.0 1,768.2 86 Transaction 300.1 299.7 310.5 299.9 299.8 301.1 292.5 368.3 314.7 478.4 369.3 327.4 87 Nontransaction 1,357.1 1,415.0 1,439.8 1,425.4 1,436.5 1,439.5 1,442.7 1,476.4 1,484.5 1,527.0 1,448.7 1,440.8 88 Large time 258.3 266.9 266.3 267.8 271.5 267.5 262.7 261.3 265.4 273.0 251.1 255.5 89 Other 1,098.8 1,148.1 1,173.5 1,157.6 1,165.0 1,172.0 1,180.0 1,215.1 1,219.1 1,254.0 1,197.6 1,185.3 90 Borrowings 646.8 667.0 697.3 687.4 655.3 658.5 651.7 699.2 656.7 755.8 701.8 679.5 91 From banks in the U.S 189.4 224.1 233.9 216.5 211.8 215.5 218.1 247.4 236.9 287.4 240.7 233.3 92 From nonbanks in the U.S 457.4 442.9 463.3 470.9 443.6 443.0 433.6 451.8 419.9 468.4 461.1 446.2 93 Net due to related foreign offices 220.0 194.9 170.3 197.5 190.3 189.2 190.6 177.0 171.5 187.5 177.7 173.3 94 Other liabilities 227.5 231.3 218.1 213.8 223.1 202.3 216.1 263.1 225.3 264.6 271.0 284.0 95 Total liabilities 2,751.5 2,807.8 2,836.0 2,824.1 2,805.0 2,790.7 2,793.7 2,984.0 2,852.8 3,213.3 2,968.5 2,904.9 96 Residual (assets less liabilities)7 300.6 310.0 315.7 314.8 314.6 320.2 327.9 326.5 326.4 324.8 324.2 328.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Sept.r Mar.' Apr.' May' June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Seasonally adjusted Assets 1 Bank credit 1,990.6 2,062.6 2,067.6 2,080.6 2,088.0 2,102.8 2,116.6 2,126.5 2,128.4 2,116.4 2,127.1 22,,112288..00 2 Securities in bank credit 528.1 541.2 540.9 544.7 549.4 556.6 566.3 573.2 574.8 570.6 573.0 571.8 3 U.S. government securities 364.3 344.9 342.5 343.1 345.8 353.1 358.8 363.0 365.6 362.4 360.6 360.9 4 Other securities 163.8 196.3 198.3 201.6 203.6 203.6 207.5 210.3 209.2 208.2 212.5 210.9 5 Loans and leases in bank credit2 .... 1,462.5 1,521.5 1,526.8 1,535.8 1,538.6 1,546.2 1,550.3 1,553.2 1,553.6 1,545.8 1,554.1 1,556.2 6 Commercial and industrial 280.6 294.9 294.7 295.2 297.3 300.5 299.9 298.9 300.1 297.7 298.8 299.2 7 Real estate 789.7 824.9 825.4 830.5 835.0 842.1 846.2 851.5 850.3 843.9 852.1 856.0 8 Revolving home equity 44.1 47.6 47.8 48.5 49.4 50.8 52.0 53.0 52.6 52.3 53.2 53.4 9 Other 745.6 777.3 777.7 782.0 785.6 791.3 794.2 798.6 797.8 791.6 799.0 802.7 10 Consumer 294.7 295.8 298.6 300.4 296.9 295.0 295.5 294.0 295.3 292.0 295.1 293.0 11 Security3 6.8 7.9 8.4 8.5 8.3 8.4 8.5 8.8 8.4 9.8 8.6 8.7 12 Other loans and leases 90.8 98.0 99.7 101.4 101.1 100.1 100.2 100.0 99.6 102.5 99.5 99.4 13 Interbank loans 80.8 104.7 114.4 119.5 115.3 115.8 117.6 122.4 115.1 138.9 120.1 121.4 14 Cash assets4 98.0 103.2 103.9 104.7 103.2 105.1 105.0 107.7 107.5 108.2 106.0 108.1 15 Other assets5 88.6 103.1 107.1 105.3 109.9 118.3 121.4 129.9 126.7 136.5 132.8 120.6 16 Total assets6 2,231.9 2,346.7 2,365.6 2,382.4 2,388.6 2,414.1 2,432.4 2,458.1 2,449.3 2,471.5 2,457.6 2,449.8 Liabilities 17 Deposits 1,721.2 1,832.7 1,857.1 1,866.8 1,885.9 1,903.9 1,918.9 1,936.1 1,936.7 1,948.4 1,931.0 1,928.1 18 Transaction 292.4 292.6 295.0 298.1 291.5 290.4 297.0 301.0 289.9 304.3 298.9 312.4 19 Nontransaction 1,428.8 1,540.1 1,562.1 1,568.7 1,594.4 1,613.5 1,621.9 1,635.1 1,646.8 1,644.1 1,632.1 1,615.7 20 Large time 282.9 301.1 301.6 299.8 298.1 300.8 304.6 304.2 306.4 305.3 304.0 300.9 21 Other 1,145.8 1,239.0 1,260.5 1,268.9 1,296.3 1,312.6 1,317.3 1,330.9 1,340.5 1,338.8 1,328.1 1,314.8 22 Borrowings 333.5 329.4 332.3 335.6 333.4 335.6 338.9 347.9 343.7 350.7 347.8 348.8 23 From banks in the U.S 163.2 149.0 148.8 150.0 148.1 148.2 149.6 153.5 151.8 157.1 151.6 153.7 24 From others 170.3 180.3 183.5 185.6 185.3 187.5 189.4 194.4 191.9 193.7 196.2 195.1 25 Net due to related foreign offices 20.6 15.4 12.8 16.6 13.1 14.7 15.5 10.5 12.8 9.1 10.7 10.4 26 Other liabilities 47.0 52.9 53.6 55.2 56.3 58.1 58.9 60.4 59.7 61.1 61.5 59.4 27 Total liabilities 2,122.1 2,230.4 2,255.8 2,274.1 2,288.8 2,312.4 2,332.2 2,354.8 2,352.8 2,369.3 2,350.9 2,346.6 28 Residual (assets less liabilities)7 109.7 116.3 109.8 108.3 99.8 101.7 100.2 103.2 96.5 102.3 106.6 103.2 Not seasonally adjusted Assets 29 Bank credit 1,995.7 2,058.3 2,067.3 2,081.1 2,089.9 2,102.9 2,119.8 2,132.1 2,132.3 2,122.2 2,134.6 2,135.0 30 Securities in bank credit 527.8 543.4 543.5 546.3 551.0 556.5 565.6 573.1 573.9 570.7 573.4 572.6 31 U.S. government securities 364.0 347.1 345.2 344.7 347.4 352.9 358.1 362.8 364.7 362.5 360.9 361.8 32 Other securities 163.8 196.3 198.3 201.6 203.6 203.6 207.5 210.3 209.2 208.2 212.5 210.9 33 Loans and leases in bank credit2 .... 1,468.0 1,514.9 1,523.8 1,534.8 1,538.9 1,546.4 1,554.2 1,559.0 1,558.4 1,551.6 1,561.2 1,562.4 34 Commercial and industrial 279.1 294.6 296.8 297.8 299.1 300.4 298.2 297.4 297.9 295.4 297.8 298.2 35 Real estate 791.1 823.2 825.1 831.2 835.8 842.6 848.0 853.3 850.8 845.7 854.1 858.8 36 Revolving home equity 44.3 47.4 47.7 48.6 49.4 50.5 51.7 53.2 52.3 52.4 53.5 53.8 37 Other 746.9 775.8 777.3 782.6 786.4 792.1 796.2 800.1 798.5 793.3 800.6 805.0 38 Consumer 298.1 292.3 294.8 297.7 294.7 294.3 297.8 297.5 298.2 295.5 299.7 296.9 39 Credit cards and related plans . . 132.3 126.0 129.2 131.8 129.0 129.0 131.9 131.1 131.7 129.8 133.2 130.2 40 Other 165.8 166.4 165.6 165.9 165.8 165.2 165.9 166.4 166.5 165.7 166.5 166.7 41 Security3 6.6 8.2 8.5 8.1 8.1 8.1 8.3 8.6 8.7 9.9 8.3 8.1 42 Other loans and leases 93.0 96.5 98.6 100.0 101.2 101.0 101.9 102.1 102.7 105.1 101.4 100.4 43 Interbank loans 77.8 110.9 118.3 110.6 108.6 108.2 111.8 118.3 120.0 140.1 111.9 107.0 44 Cash assets4 98.5 98.9 100.4 103.2 102.0 103.8 102.2 108.4 116.9 110.6 103.5 105.0 45 Other assets5 88.6 103.1 107.1 105.3 109.9 118.3 121.4 129.9 126.7 136.5 132.8 120.6 46 Total assets6 2,234.5 2,344.1 2,365.8 2,372.5 2,382.7 2,405.4 2,427.0 2,460.3 2,467.5 2,481.0 2,454.3 2,439.3 Liabilities 47 Deposits 1,715.7 1,840.2 1,864.4 1,860.3 1,874.5 1,890.7 1,906.1 1,929.8 1,943.8 1,948.2 1,918.5 1,908.7 48 Transaction 292.3 290.6 294.5 292.9 291.2 288.9 294.3 300.9 300.2 308.2 294.4 304.2 49 Nontransaction 1,423.4 1,549.6 1,569.9 1,567.4 1,583.4 1,601.8 1,611.8 1,628.9 1,643.6 1,640.1 1,624.0 1,604.4 50 Large time 282.9 301.1 301.6 299.8 298.1 300.8 304.6 304.2 306.4 305.3 304.0 300.9 51 Other 1,140.5 1,248.5 1,268.3 1,267.6 1,285.3 1,301.0 1,307.2 1,324.7 1,337.2 1,334.8 1,320.1 1,303.6 52 Borrowings 333.5 329.4 332.3 335.6 333.4 335.6 338.9 347.9 343.7 350.7 347.8 348.8 53 From banks in the U.S 163.2 149.0 148.8 150.0 148.1 148.2 149.6 153.5 151.8 157.1 151.6 153.7 54 From others 170.3 180.3 183.5 185.6 185.3 187.5 189.4 194.4 191.9 193.7 196.2 195.1 55 Net due to related foreign offices 20.6 15.4 12.8 16.6 13.1 14.7 15.5 10.5 12.8 9.1 10.7 10.4 56 Other liabilities 47.0 52.9 53.6 55.2 56.3 58.1 58.9 60.4 59.7 61.1 61.5 59.4 57 Total liabilities 2,116.7 2,237.9 2,263.1 2,267.7 2,277.4 2,299.2 2,319.4 2,348.6 2,359.9 2,369.1 2,338.4 2,327.3 58 Residual (assets less liabilities)7 117.8 106.2 102.7 104.8 105.3 106.2 107.6 111.7 107.6 111.8 115.8 112.1 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic Financial Statistics • December 2001 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Sept.' Mar.' Apr.' May' June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Seasonally adjusted Assets 1 Bank credit 597.3 628.1 626.7 611.5 602.9 592.5 592.2 586.3 591.9 582.4 591.1 587.0 2 Securities in bank credit 212.3 209.5 221.0 214.6 216.0 216.5 219.5 219.9 220.5 216.7 219.5 221.9 3 U.S. government securities 75.4 67.2 74.4 69.7 68.1 67.1 66.8 69.6 68.7 67.9 68.9 71.2 4 Other securities 136.9 142.3 146.5 144.9 148.0 149.4 152.7 150.4 151.8 148.8 150.6 150.8 5 Loans and leases in bank credit2 .... 385.0 418.6 405.7 397.0 386.9 376.0 372.7 366.4 371.4 365.7 371.6 365.1 6 Commercial and industrial 204.9 219.2 219.3 218.4 211.2 206.3 205.0 204.6 203.2 203.5 207.5 205.5 7 Real estate 18.3 18.0 17.5 17.7 17.6 17.9 18.2 18.7 18.7 18.3 18.8 18.9 8 Security3 94.6 111.2 100.8 92.9 91.2 86.5 83.8 78.1 85.7 77.8 78.9 76.7 9 Other loans and leases 67.2 70.1 68.2 67.9 66.8 65.4 65.7 65.0 63.8 66.1 66.4 64.1 10 Interbank loans 23.8 29.6 27.7 29.5 21.9 21.3 20.4 25.8 25.4 21.6 30.6 27.9 11 Cash assets4 44.5 40.0 38.7 37.3 36.3 36.8 37.3 44.7 38.7 52.2 49.1 39.5 12 Other assets5 39.4 37.2 39.7 37.3 37.1 31.7 29.2 31.4 26.1 29.9 33.2 34.2 13 Total assets6 704.6 734.6 732.5 715.3 697.9 681.9 678.7 687.8 681.8 685.8 703.6 688.2 Liabilities 14 Deposits 385.8 380.3 394.3 408.5 418.7 412.5 403.3 404.1 402.6 408.0 398.0 405.1 15 Transaction 10.1 9.7 10.7 10.6 9.5 9.3 9.9 12.9 12.2 14.8 12.6 13.0 16 Nontransaction 375.7 370.6 383.6 397.9 409.2 403.2 393.4 391.2 390.4 393.2 385.4 392.1 17 Borrowings 217.8 236.0 240.2 219.1 215.8 210.7 210.3 218.7 207.3 228.0 228.0 212.7 18 From banks in the U.S 20.0 25.8 25.3 20.3 22.5 22.3 20.9 29.2 18.4 45.1 27.3 22.8 19 From others 197.8 210.2 214.9 198.7 193.3 188.4 189.4 189.5 188.9 182.9 200.7 190.0 20 Net due to related foreign offices 21.5 22.0 4.6 ^1.3 -19.6 -16.2 -11.7 -18.3 -10.8 -33.5 -7.7 -13.7 21 Other liabilities 76.5 82.6 88.8 86.1 84.6 79.5 78.6 80.5 74.9 78.6 85.1 82.2 22 Total liabilities 701.5 720.9 727.9 709.3 699.4 686.5 680.5 685.0 673.9 681.1 703.4 686.3 23 Residual (assets less liabilities)7 3.1 13.7 4.6 6.0 -1.5 -4.6 -1.8 2.9 7.9 4.7 .3 1.9 Not seasonally adjusted Assets 24 Bank credit 595.5 623.0 623.8 606.8 599.2 588.0 585.8 584.5 582.9 578.9 591.4 588.6 25 Securities in bank credit 212.3 209.5 221.0 214.6 216.0 216.5 219.5 219.9 220.5 216.7 219.5 221.9 26 U.S. government securities 75.4 67.2 74.4 69.7 68.1 67.1 66.8 69.6 68.7 67.9 68.9 71.2 27 Trading account 14.1 9.8 14.8 13.8 13.7 13.0 12.3 13.6 12.5 12.0 13.6 15.7 28 Investment account 61.3 57.4 59.6 55.9 54.4 54.1 54.5 55.9 56.2 55.8 55.2 55.5 29 Other securities 136.9 142.3 146.5 144.9 148.0 149.4 152.7 150.4 151.8 148.8 150.6 150.8 30 Trading account 92.5 95.4 99.6 99.4 105.7 108.0 110.9 109.4 110.8 107.4 109.8 110.4 31 Investment account 44.4 46.9 47.0 45.6 42.2 41.4 41.8 41.0 41.1 41.4 40.8 40.4 32 Loans and leases in bank credit2 .... 383.2 413.5 402.8 392.2 383.1 371.5 366.3 364.6 362.4 362.2 371.9 366.6 33 Commercial and industrial 204.6 220.3 217.6 215.3 210.1 205.5 203.7 204.2 201.4 202.2 207.3 206.0 34 Real estate 18.3 18.0 17.5 17.7 17.6 17.9 18.2 18.7 18.7 18.3 18.8 18.9 35 Security3 93.4 105.0 99.4 92.1 89.2 83.6 80.0 76.9 78.7 76.0 79.9 77.7 36 Other loans and leases 66.9 70.1 68.4 67.1 66.2 64.4 64.5 64.7 63.5 65.8 65.9 64.0 37 Interbank loans 23.8 29.6 27.7 29.5 21.9 21.3 20.4 25.8 25.4 21.6 30.6 27.9 38 Cash assets4 43.6 38.7 37.2 36.4 35.2 35.5 36.1 43.7 37.4 50.1 47.4 39.9 39 Other assets5 39.2 37.8 38.8 36.7 35.8 30.9 28.9 31.2 26.4 30.0 32.7 33.7 40 Total assets6 701.7 728.7 727.2 709.2 691.7 675.3 670.9 684.9 671.7 680.2 701.8 689.7 Liabilities 41 Deposits 378.3 384.8 397.2 409.7 411.6 402.3 391.6 396.2 390.9 397.7 389.5 401.7 42 Transaction 10.3 9.4 10.2 10.2 9.3 9.4 9.9 13.2 12.3 14.9 12.8 13.9 43 Nontransaction 368.0 375.4 387.0 399.5 402.2 392.9 381.6 383.0 378.6 382.8 376.7 387.9 44 Borrowings 217.8 236.0 240.2 219.1 215.8 210.7 210.3 218.7 207.3 228.0 228.0 212.7 45 From banks in the U.S 20.0 25.8 25.3 20.3 22.5 22.3 20.9 29.2 18.4 45.1 27.3 22.8 46 From others 197.8 210.2 214.9 198.7 193.3 188.4 189.4 189.5 188.9 182.9 200.7 190.0 47 Net due to related foreign offices 23.5 22.2 -.1 -7.5 -22.7 -19.4 -12.9 -15.9 -7.0 -30.5 -5.8 -11.9 48 Other liabilities 77.4 82.7 86.7 84.6 83.1 78.1 78.1 81.7 76.6 80.2 86.0 83.1 49 Total liabilities 697.0 725.6 724.0 705.8 687.6 671.7 667.0 680.7 667.8 675.3 697.7 685.7 50 Residual (assets less liabilities)7 4.6 3.1 3.2 3.4 4.1 3.6 3.9 4.2 3.9 4.9 4.1 4.0 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A21 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued F. Memo items Billions of dollars Monthly averages Wednesday figures AAAccccccooouuunnnttt 2000 2001 2001 Sept.' Mar.' Apr.' May' June' July' Aug.' Sept. Sept. 5 Sept. 12 Sept. 19 Sept. 26 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 74.5 80.8 79.9 82.0 87.3 77.6 87.7 102.6 84.9 95.3 104.9 113.8 2 Revaluation losses on off-balancesheet items8 73.9 79.8 74.9 74.7 81.6 71.7 78.4 91.5 74.1 85.2 93.6 100.5 3 Mortgage-backed securities' 243.6 251.5 259.1 266.0 262.2 261.8 273.9 280.8 277.3 275.9 275.4 283.7 4 Pass-through 174.3 186.2 195.3 200.8 200.8 200.1 212.2 218.1 215.5 214.2 213.9 223.0 5 CMO, REMIC, and other 69.3 65.3 63.8 65.2 61.4 61.7 61.7 62.8 61.8 61.8 61.5 60.7 6 Net unrealized gains (losses) on available-for-sale securities10 -5.0 6.3 6.0 4.8 3.6 3.1 5.3 6.8 6.2 6.0 7.1 7.7 7 Off-shore credit to U.S. residents'1 .... 22.1 22.6 21.7 21.0 20.6 20.2 19.6 20.1 19.4 20.6 20.5 20.0 8 Securitized consumer loans12 81.6 78.8 81.3 79.6 81.1 95.5 95.4 96.2 96.4 96.3 96.2 95.7 9 Credit cards and related plans 71.8 69.1 71.8 70.4 72.2 86.1 85.6 86.6 86.7 86.7 86.6 86.2 10 Other 9.8 9.8 9.5 9.2 8.9 9.4 9.8 9.6 9.6 9.6 9.5 9.5 11 Securitized business loans12 7.5 9.4 9.3 9.2 10.8 19.9 20.1 20.1 20.1 20.0 20.1 20.4 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities' 206.4 225.2 233.4 238.3 242.0 248.7 253.2 258.3 259.2 259.8 256.5 256.8 13 Securitized consumer loans12 222.3 236.4 234.7 234.5 237.7 226.2 229.0 232.5 231.6 232.0 229.3 232.8 14 Credit cards and related plans 214.0 227.8 226.1 226.1 229.1 217.9 220.7 224.2 223.3 223.7 221.1 224.7 15 Other 8.3 8.7 8.6 8.4 8.5 8.3 8.3 8.3 8.3 8.2 8.2 8.1 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 49.4 52.8 56.5 56.4 57.3 54.9 57.3 56.3 56.7 54.7 57.4 56.6 17 Revaluation losses on off-balancesheet items8 46.8 49.9 52.2 51.9 52.1 49.8 52.1 51.4 51.5 49.9 52.5 51.9 18 Securitized business loans12 34.6 33.0 31.3 29.5 28.3 27.1 26.6 26.6 26.4 26.6 26.6 26.6 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks," are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of Columbia: 7. This balancing item is not intended as a measure of equity capital for use in capital domestically chartered commercial banks that submit a weekly report of condition (large adequacy analysis. On a seasonally adjusted basis, this item reflects any differences in the domestic); other domestically chartered commercial banks (small domestic); branches and seasonal patterns estimated for total assets and total liabilities. agencies of foreign banks, and Edge Act and agreement corporations (foreign-related institu- 8. Fair value of derivative contracts (interest rate, foreign exchange rate, other commodity tions). Excludes International Banking Facilities. Data are Wednesday values or pro rata and equity contracts) in a gain/loss position, as determined under FASB Interpretation No. 39. averages of Wednesday values. Large domestic banks constitute a universe; data for small 9. Includes mortgage-backed securities issued by U.S. government agencies, U.S. domestic banks and foreign-related institutions are estimates based on weekly samples and on government-sponsored enterprises, and private entities. quarter-end condition reports. Data are adjusted for breaks caused by reclassifications of 10. Difference between fair value and historical cost for securities classified as availableassets 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 Financial Statistics • December 2001 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING A. Commercial Paper Millions of dollars, seasonally adjusted, end of period Year ending December 2001 IItteemm 1996 1997 1998 1999 2000 Mar. Apr. May June July Aug. 1 All issuers 775,371 966,699 1,163,303 1,403,023 1,615,341 1,511,354 1,519,528 1,501,113 1,468,919 1,453,770 1,434,238 Financial companies' 2 Dealer-placed paper, total2 361,147 513,307 614,142 786,643 973,060 978,225 995,072 986,369 982,216 958,911 957,792 3 Directly placed paper, total3 229,662 252,536 322,030 337,240 298,848 249,420 247,333 245,768 244,520 265,824 248,974 4 Nonfinancial companies4 184,563 200,857 227,132 279,140 343,433 283,711 277,123 268,976 242,183 229,035 227,473 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 eligble for discount by Federal Reserve Banks; includes U.S. chartered commercial banks (domestic and foreign offices), U.S. branches and that is, those acceptances that meet the criteria of Paragraph 7 of Section 13 of the Federal agencies of foreign banks, and Edge and agreement corporations. The reporting group is Reserve Act (12 U.S.C. §372). revised every year. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change rate rate rate 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 Oct. 8.25 Oct. 9.50 Mar. 22 9.00 July 8.50 Nov. 8.37 Nov. 9.50 May 17 9.50 Aug. 8.50 Dec. 8.50 Dec. 9.50 Sept. 8.49 2001—Jan. 4 9.00 Oct. 8.12 2001—Jan. 9.05 Feb. 1 8.50 Nov. 7.89 Feb. 8.50 Mar. 21 8.00 Dec. 7.75 Mar. 8.32 Apr. 19 7.50 Apr. 7.80 May 16 7.00 May 7.24 June 28 6.75 June 6.98 Aug. 22 6.50 July 6.75 Sept. 18 6.00 Aug. 6.67 Oct. 3 5.50 Sept. 6.28 Oct. 5.53 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 2001 2001, week ending IItteemm 11999988 11999999 22000000 June July Aug. Sept. Aug. 31 Sept. 7 Sept. 14 Sept. 21 Sept. 28 MONEY MARKET INSTRUMENTS 1 Federal funds'-2-3 5.35 4.97 6.24 3.97 3.77 3.65 3.07 3.52 3.63 3.49 2.47 2.99 2 Discount window borrowing2,4 4.92 4.62 5.73 3.47 3.25 3.16 2.77 3.00 3.00 3.00 2.79 2.50 Commercial paper3-5-6 Nonfinancial 3 1-month 5.40 5.09 6.27 3.82 3.71 3.54 2.96 3.48 3.48 3.43 2.68 2.62 4 2-month 5.38 5.14 6.29 3.73 3.63 3.47 2.87 3.41 3.40 3.25 2.67 2.49 5 3-month 5.34 5.18 6.31 3.67 3.59 3.42 2.81 3.35 3.35 3.17 2.62 2.42 Financial 6 1 -month 5.42 5.11 6.28 3.84 3.73 3.57 2.97 3.50 3.51 3.45 2.68 2.62 7 2-month 5.40 5.16 6.30 3.75 3.66 3.48 2.87 3.44 3.41 3.23 2.63 2.52 8 3 month 5.37 5.22 6.33 3.69 3.62 3.44 2.84 3.38 3.36 3.17 2.65 2.47 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* 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 market310 17 1-month 5.49 5.19 6.35 3.86 3.76 3.59 2.99 3.54 3.54 3.46 22..7755 22..6611 18 3-month 5.47 5.33 6.46 3.74 3.66 3.48 2.87 3.43 3.40 3.18 2.67 2.52 19 6 month 5.44 5.46 6.59 3.74 3.70 3.49 2.84 3.42 3.41 3.13 2.65 2.48 20 Eurodollar deposits, 3-month311 5.45 5.31 6.45 3.73 3.66 3.47 2.85 3.43 3.40 3.26 2.68 2.50 U.S. Treasury bills Secondary market3-5 ?\ 3-month 4.78 4.64 5.82 3.49 3.51 3.36 2.64 3.33 3.29 2.82 2.30 2.34 6-month 4.83 4.75 5.90 3.45 3.45 3.29 2.63 3.23 3.24 2.80 2.38 2.29 23 1-year 4.80 4.81 5.78 3.37 3.39 3.26 n.a. n.a. n.a. n.a. n.a. n.a. Auction high3-5 '2 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 71 1-year 5.05 5.08 6.11 3.58 3.62 3.47 2.82 3.44 3.43 2.95 2.60 2.49 28 2-year 5.13 5.43 6.26 4.08 4.04 3.76 3.12 3.68 3.70 3.13 2.91 2.86 29 3-year 5.14 5.49 6.22 4.35 4.31 4.04 3.45 3.94 3.98 3.44 3.27 3.22 30 5-year 5.15 5.55 6.16 4.81 4.76 4.57 4.12 4.47 4.53 4.12 3.96 3.94 31 7-year 5.28 5.79 6.20 5.14 5.06 4.84 4.51 4.73 4.79 4.47 4.43 4.40 3?, 10-year 5.26 5.65 6.03 5.28 5.24 4.97 4.73 4.84 4.91 4.68 4.7 0 4.66 33 20-year 5.72 6.20 6.23 5.82 5.75 5.58 5.53 5.48 5.53 5.43 5.58 5.53 34 30-year 5.58 5.87 5.94 5.67 5.61 5.48 5.48 5.40 5.45 5.39 5.55 5.51 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 series'4 36 4.93 5.28 5.58 5.03 4.79 4.89 4.93 4.82 4.87 n.a. n.a. 4.99 37 Baa 5.14 5.70 6.19 5.82 5.81 5.55 5.62 5.44 5.49 n.a. n.a. 5.75 38 Bond Buver series15 5.09 5.43 5.71 5.20 5.20 5.03 n.a. 4.96 5.02 n.a. 5.12 5.14 CORPORATE BONDS 39 Seasoned issues, all industries16 6.87 7.45 7.98 7.56 7.51 7.37 7.54 7.29 7.34 7.35 7.70 7.64 Rating group 40 Aaa 6.53 7.05 7.62 7.18 7.13 7.02 7.17 6.95 6.99 7.00 7.34 7.27 41 Aa 6.80 7.36 7.83 7.34 7.27 7.11 7.28 7.05 7.10 7.08 7.43 7.38 47 A 6.93 7.53 8.11 7.73 7.65 7.48 7.67 7.40 7.46 7.48 7.84 7.79 43 Baa 7.22 7.88 8.36 7.97 7.97 7.85 8.03 7.78 7.83 7.85 8.20 8.12 MEMO Dividend-price ratio17 44 Common stocks 1.49 1.25 1.15 1.27 1.30 1.34 1.48 1.37 1.39 n.a. n.a. n.a. 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 • December 2001 1.36 STOCK MARKET Selected Statistics 2001 IInnddiiccaattoorr 11999988 11999999 22000000 Jan. Feb. Mar. Apr. May June July Aug. Sept. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 ======= 55555550000000))))))) 550.65 619.52 643.71 650.55 648.05 603.44 607.06 644.44 630.86 613.36 604.52 544.39 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 684.35 775.29 809.40 796.74 799.38 744.21 747.48 798.94 782.73 756.04 748.65 672.89 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 468.61 491.62 414.73 471.21 482.26 452.36 455.22 477.21 458.60 469.80 458.35 382.68 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 190.52 284.82 478.99 440.36 424.53 395.34 400.49 414.69 382.98 374.11 357.76 339.72 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 516.65 530.97 552.48 634.17 626.41 583.38 587.88 618.74 622.17 614.54 605.59 538.01 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111^^^^^^^3333333 ======= 11111110000000)))))))''''''' 1,085.50 1,327.33 1,427.22 1,335.63 1,305.75 1,185.85 1,189.84 1,270.37 1,238.71 1,204.45 1,178.51 1,044.64 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,,1111111999999977777773333333 ======= 55555550000000)))))))2222222 682.69 770.90 922.22 898.18 923.99 891.22 891.18 940.73 923.06 892.74 883.01 823.78 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 666,534 799,554 1,026,867 1,299,986 1,117,977 1,251,569 1,247,382 1,091,366 1,152,193 1,120,074 1,012,907 1,666,980 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 28,870 32,629 51,437 72,312 70,648 81,666 77,612 66,103 62,395 56,735 48,304 72,319 Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss3333333 140,980 228,530 198,790 197,110 186,810 165,350 166,940 174,180 170,000 165,250 161,130 144,670 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 40,250 55,130 100,680 90,380 99,390 106,300 97,470 91,990 98,430 97,950 103,990 115,450 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 62,450 79,070 84,400 81,380 78,660 77,520 77,460 76,260 75,270 73,490 73,710 74,220 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 11111113333333 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn ssssssstttttttoooooooccccccckkkkkkksssssss 70 80 65 55 65 50 11111114444444 CCCCCCCooooooonnnnnnnvvvvvvveeeeeeerrrrrrrtttttttiiiiiiibbbbbbbllllllleeeeeee bbbbbbbooooooonnnnnnndddddddsssssss 50 60 50 50 50 50 11111115555555 SSSSSSShhhhhhhooooooorrrrrrrttttttt sssssssaaaaaaallllllleeeeeeesssssss 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 2001 11999999 22000000 22000011 Apr. May June July Aug. Sept. U.S. budget1 1 Receipts, total 1,827,302 2,025,218 1,990,203 331,796 125,590 202,887 127,842 122,559 115588,,449955 2 On-budget 1,382,986 1,544,634 1,482,684 278,611 84,759 151,482 89,473 84,011 116,597 3 Off-budget 444,468 480,584 507,519 53,185 40,831 51,405 38,369 38,548 41,898 4 Outlays, total 1,702,875 1,788,826 1,863,039 141,999 153,508 171,025 125,022 202,549 123,105 5 On-budget 1,382,097 1,458,061 1,516,201 109,938 118,517 167,796 92,145 138,167 111,109 6 Off-budget 320,778 330,765 346,838 32,062 34,992 3,229 32,877 64,382 11,996 7 Surplus or deficit (-), total 124,579 236,392 127,165 189,796 -27,919 31,862 2,820 -79,990 35,390 8 On-budget 889 86,573 -33,517 168,673 -33,758 -16,314 -2,672 -54,156 5,488 9 Off-budget 123,690 149,819 160,682 21,123 5,839 48,176 5,492 -25,834 29,902 Source of financing (total) 10 Borrowing from the public -88,674 -222,807' -90,118 -135,572 -20,608 -1,212 -7,460 74,101 11,,999966 11 Operating cash (decrease, or increase [-]) -17,580 3,799 8,440 -36,846 58,856 -37,413 20,589 16,769 -37,890 12 Other2 -18,325 -17,384' —45,487 -17,378 -10,329 6,763 -15,949 -10,880 504 MEMO 13 Treasury operating balance (level, end of period) 56,458 52,659 44,219 65,130 6,274 43,687 23,098 6,329 44,219 14 Federal Reserve Banks 6,641 8,459 9,796 7,894 4,396 7,188 5,592 5,533 9,796 15 Tax and loan accounts 49,817 44,199 34,423 57,236 1,878 36,498 17,506 795 34,423 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; and fiscal year totals: U.S. Office of Manageaccrued interest payable to the public; allocations of SDRs; deposit funds; miscellaneous ment 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 • December 2001 1.39 U.S. BUDGET RECEIPTS AND OUTLAYS1 Millions of dollars Fiscal year Calendar year SSSooouuurrrccceee ooorrr tttyyypppeee 1999 2000 2001 2001 22000000 22000011 H2 HI H2 HI July Aug. Sept. RECEIPTS 1 All sources 2,025,218 1,990,203 892,266 1,089,763 952,942 1,120,040 127,842 122,559 158,495 2 Individual income taxes, net 1,004,462 994,339 425,451 550,208 458,679 580,632 60,466 52,020 81,277 3 Withheld 780,397 793,386 372,012 388,526 395,572 402,417 65,601 66,415 49,679 4 Nonwithheld 358,049 383,146 68,302 281,103 77,732 308,418 5,029 6,435 45,676 5 Refunds 134,046 182,251 14,841 119,477 14,628 130,256 10,165 20,831 1144,,007788 Corporation income taxes 6 Gross receipts 235,655 186,732 110,111 119,166 123,962 102,947 5,036 4,618 9,533 7 Refunds 28,367 35,657 13,996 13,781 15,776 20,262 2,328 1,475 2,057 8 Social insurance taxes and contributions, net .... 652,852 693,967 292,551 353,514 310,122 379,878 52,154 53,692 56,147 9 Employment taxes and contributions2 620,451 661,442 280,059 333,584 297,665 359,648 49,672 49,974 55,433 10 Unemployment insurance 27,640 27,812 10,173 17,562 10,097 17,842 2,128 3,294 349 11 Other net receipts3 4,761 4,712 2,319 2,368 2,360 2,387 355 424 365 12 Excise taxes 68,865 66,232 34,262 33,532 35,501 32,490 5,733 5,438 6,443 13 Customs deposits 19,914 19,616 10,287 9,218 10,676 9,370 1,755 1,926 1,563 14 Estate and gift taxes 29,010 28,400 14,001 15,073 13,216 15,471 2,099 2,196 1,761 15 Miscellaneous receipts4 42,826 36,576 19,569 22,831 16,556 19,517 2,926 4,142 3,828 OUTLAYS 16 All types 1,788,826 1,863,039 882,465 892,947 894,905 948,750 125,022 202,549 123,105 17 National defense 294,494 304,486 149,573 143,476 147,651 153,154 22,153 30,393 23,987 18 International affairs 17,216 16,522 8,530 7,250 11,902 6,522 413 260 1,350 19 General science, space, and technology 18,637 20,715 10,089 9,601 10,389 10,073 1,642 2,014 1,668 20 Energy -1,060 -677 -90 -893 -595 -244 -117 -68 697 21 Natural resources and environment 25,031 23,738 12,100 10,814 12,907 11,059 1,757 2,087 2,521 22 Agriculture 36,641 28,339 20,887 11,164 20,977 10,832 240 6,226 -1,149 23 Commerce and housing credit 3,211 5,801 7,353 -2,497 4,408 -1,539 -13,479 4,287 15,844 24 Transportation 46,854 53,882 23,199 21,054 25,841 23,810 4,327 5,433 7,358 25 Community and regional development 10,629 12,827 6,806 5,050 5,962 5,265 1,598 1,450 1,347 26 Education, training, employment, and social services 59,201 62,869 27,532 31,234 29,263 35,698 4,291 1,751 4,927 27 Health 154,534 171,912 74,490 75,871 81,413 87,427 14,094 15,419 14,088 28 Social security and Medicare 606,549 650,407 295,030 306,966 307,473 328,072 52,621 86,197 26,044 29 Income security 247,895 263,274 113,504 133,915 113,212 146,913 17,282 24,025 15,738 30 Veterans benefits and services 47,083 45,029 23,412 23,174 22,615 23,171 2,150 6,199 2,123 31 Administration of justice 27,820 29,754 13,459 13,981 14,635 14,694 2,202 2,647 2,428 32 General government 13,454 15,084 7,010 6,198 6,461 8,887 625 261 1,733 33 Net interest5 223,218 206,088 112,420 115,545 104,685 107,824 17,287 17,426 9,113 34 Undistributed offsetting receipts6 -42,581 -47,011 -22,850 -19,346 -24,070 -22,865 -3,765 -3,459 -6,711 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 disability Government, Fiscal year 2002; monthly and half-year totals: U.S. Department of the Treafund. 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 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 Dec. 31 Mar. 31 June 30 Sept. 30 1 Federal debt outstanding 5,685.2 5,805.0 5,801.5 5,714.2 5,701.9 5,689.6 5,800.6 5,753.9 5,834.5 2 Public debt securities 5,656.3 5,776.1 5,773.4 5,685.9 5,674.2 5,662.2 5,773.7 5,726.8 5,807.5 3 Held by public 3,667.2 3,715.5 3,688.0 3,495.7 3,438.5 3,413.5 3,434.4 3,274.2 3,338.7 4 Held by agencies 1,989.1 2,060.6 2,085.4 2,190.2 2,235.7 2,248.7 2,339.4 2,452.6 2,468.8 5 Agency securities 28.9 28.9 28.1 28.3 27.7 27.4 26.8 27.1 27.0 6 Held by public 28.3 28.3 27.8 28.2 27.6 27.3 26.8 27.1 27.0 7 Held by agencies .6 .6 .4 .1 .1 .1 .1 .0 .0 8 Debt subject to statutory limit 5,567.7 5,686.9 5,686.5 5,600.6 5,591.6 5,580.5 5,692.5 5,645.0 5,732.6 9 Public debt securities 5,567.6 5,686.7 5,686.3 5,600.5 5,591.4 5,580.2 5,692.3 5,644.8 5,807.5 10 Other debt1 .1 .1 .2 .2 .2 .2 .2 .2 .2 MEMO 11 Statutory debt limit 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0 5,950.0r 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 Q4 Qi Q2 Q3 1 Total gross public debt 5,502.4 5,614.2 5,776.1 5,662.2 5,662.2 5,773.7 5,726.8 5,807.5 By type 2 Interest-bearing 5,494.9 5,605.4 5,766.1 5,618.1 5,618.1 5,752.0 5,682.8 5,763.6 3 Marketable 3,456.8 3,355.5 3,281.0 2,966.9 2,966.9 2,981.9 2,822.3 2,897.3 4 Bills 715.4 691.0 737.1 646.9 646.9 712.0 620.1 734.9 5 Notes 2,106.1 1,960.7 1,784.5 1,557.3 1,557.3 1,499.0 1,441.0 1,399.6 6 Bonds 587.3 621.2 643.7 626.5 626.5 627.9 616.9 612.9 7 Inflation-indexed notes and bonds1 33.0 67.6 100.7 121.2 121.2 128.0 129.3 134.9 8 Nonmarketable2 2,038.1 2,249.9 2,485.1 2,651.2 2,651.2 2,770.0 2,860.5 2,866.4 9 State and local government series 124.1 165.3 165.7 151.0 151.0 152.9 153.3 146.4 10 Foreign issues3 36.2 34.3 31.3 27.2 27.2 24.7 24.0 18.3 11 Government 36.2 34.3 31.3 27.2 27.2 24.7 24.0 18.3 12 Public .0 .0 .0 .0 .0 .0 .0 .0 13 Savings bonds and notes 181.2 180.3 179.4 176.9 176.9 177.4 178.4 179.6 14 Government account series4 1,666.7 1,840.0 2,078.7 2,266.1 2,266.1 2,360.3 2,474,7 2,492.1 15 Non-interest-bearing 7.5 8.8 10.0 44.2 44.2 46.5 44.0 43.8 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 2,270.2 2,357.0 2,469.1 n.a. 17 Federal Reserve Banks6 430.7 452.1 478.0 511.7 511.7 523.9 535.1 534.1 18 Private investors 3,414.6 3,334.0 3,233.9 2,880.4 2,880.4 2,892.9 2,722.6 n.a. 19 Depository institutions 300.3 237.3 246.5 197.8 197.8 187.3 192.1 n.a. 20 Mutual funds 321.5 343.2 348.6 339.0 339.0 348.8 352.3 n.a. 21 Insurance companies 176.6 144.5 125.3 116.6 116.6 101.9 92.9 n.a. 22 State and local treasuries' 239.3 269.3 266.8 246.2 246.2 224.0 216.5 n.a. Individuals 23 Savings bonds 186.5 186.6 186.4 184.8 184.8 184.8 186.0 n.a. 24 Pension funds 360.5 375.3 378.9 387.7 387.7 326.5 320.2 n.a. 25 Private 143.5 157.6 167.7 181.6 181.6 131.2 129.2 n.a. 26 State and Local 216.9 217.7 211.2 206.1 206.1 195.3 191.0 n.a. 27 Foreign and international8 1,241.6 1,278.7 1,268.7 1,201.4 1,201.4 1,196.1 1,167.1 n.a. 28 Other miscellaneous investors7-9 589.5 499.0 410.8 218.3 218.3 250.9 n.a. n.a. 1. The U.S. Treasury first issued inflation-indexed securities during the first quarter of 8. Includes nonmarketable foreign series Treasury securities and Treasury deposit funds. 1997. Excludes Treasury securities held under repurchase agreements in custody accounts at the 2. Includes (not shown separately) securities issued to the Rural Electrification Administra- Federal Reserve Bank of New York. tion, depository bonds, retirement plan bonds, and individual retirement bonds. 9. Includes individuals, government-sponsored enterprises, brokers and dealers, bank 3. Nonmarketable series denominated in dollars, and series denominated in foreign cur- personal trusts and estates, corporate and noncorporate businesses, and other investors. rency held by foreigners. SOURCES. Data by type of security, U.S. Treasury Department, Monthly Statement of the 4. Held almost entirely by U.S. Treasury and other federal agencies and trust funds. Public Debt of the United States; data by holder, Federal Reserve Board of Governors, Flow 5. Data for Federal Reserve Banks and U.S. government agencies and trust funds are actual of Funds Accounts of the United States and U.S. Treasury Department, Treasury Bulletin, holdings; data for other groups are Treasury estimates. unless otherwise noted. 6. U.S. Treasury securities bought outright by Federal Reserve Banks, see Bulletin 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 • December 2001 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2001 2001, week ending June July Aug. Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 Sept. 26 By type of security 1 U.S. Treasury bills 26,141 27,315 35,361 26,988 30.840 35,563 35,368 37,919 43,936 26,364 25,630 32,052 Treasury coupon securities by maturity 2 Three years or less 118,453 92,942 90,953 83,376 77,381 94,245 87,669 98,442 109,931 86,245 68,074 112211,,990011 3 More than three but less than or equal to six years 83,923 65,463 69,717 68,448 63,452 77,693 71,434 58,773 89,143 72,391 59,108 89,673 4 More than six but less than or equal to eleven years 58,180 53,709 65,251 62,093 61,834 73,293 68,205 55,096 73,266 60,446 49,789 65,146 5 More than eleven 17,804 16,682 16,847 19,726 14,668 18,649 16,301 16,474 18,649 1144,,556600 14,955 23,304 6 Inflation-indexed2 1,384 2,433 1,491 1,966 1,286 1,532 1,511 1,335 2,004 888822 1,690 2,305 Federal agency and governmentsponsored enterprises 7 Discount notes 53,216 55,388 57,141 53,819 53,032 58,298 58,171 56,277 65,764 61,515 91,437 63,187 Coupon securities by maturity 8 Three years or less 12,880 11,194 11,514 10,196 9,568 12,738 11,509 12,685 11,068 10,034 10,471 14,126 9 More than three years but less than or equal to six years 8,360 7,594 8,769 6.889 6,685 10,188 8,329 9,356 11,004 6,850 6,256 12,010 10 More than six years but less than or equal to eleven years .... 7,640 6,802 6,502 7,078 5,398 6,980 8,110 4,893 7,784 10,802 5,618 16,876 11 More than eleven years 736 966 1,332 976 920 1,726 1,798 1,038 1,120 851 511 1,486 12 Mortgage-backed 96,113 95,997 106,708 73,406 137,390 144,267 72,122 84,064 95,827 127,544 146,954 127,386 Corporate securities 13 One year or less 85,207 75,223 79,388 69,835 72,625 75,453 84,613 82,019 91,264 103,540 100,158 89,783 14 More than one year 17,686 16,050 17,259 21,063 18,062 21,347 17,662 13,607 11,256 17,494 6,834 20,774 By type of counterparty With interdealer broker 15 U.S. Treasury 130,715 120,946 133,598 118,222 123,378 145,693 133,240 126,293 155,757 126,807 86,088 146,105 16 Federal agency and governmentsponsored enterprises 14,142 10,018 11,532 9,918 10,250 11,988 13,356 10,031 13,601 11,812 7,763 14,836 17 Mortgage-backed 30,517 28,194 32,160 22,692 39,533 41,535 24,581 25,495 30,632 38,252 22.682 39,335 18 Corporate 2,036 1,012 813 1,168 891 1,119 747 524 568 792 369 11,,339999 With other 19 U.S. Treasury 129,696 137,597 146,023 144,374 126,083 155,282 147,248 141,747 181,172 134,081 133,157 118888,,227755 20 Federal agency and governmentsponsored enterprises 70,510 71,926 73,725 69,041 65,352 77,942 74,562 74,217 83,140 78,239 106,530 92,850 21 Mortgage-backed 65,596 67,804 74,548 50,714 97,858 102,732 47,541 58,569 65,195 89,292 124,272 88,051 22 Corporate 100,856 90,261 95,833 89,731 89,796 95,681 101,527 95,102 101,952 120,242 106,623 109,158 1. The figures represent purchases and sales in the market by the primary U.S. government 2. Outright Treasury inflation-indexed securities (TIIS) transactions are reported at princisecurities dealers reporting to the Federal Reserve Bank of New York. Outright transactions pal value, excluding accrued interest, where principal value reflects the original issuance par include all U.S. government, federal agency, government-sponsored enterprise, mortgage- amount (unadjusted for inflation) times the price times the index ratio. backed, and corporate securities scheduled for immediate and forward delivery, as well as all NOTE. Major changes in the report form filed by primary dealers induced a break in the U.S. government securities traded on a when-issued basis between the announcement and dealer data series as of the week ending July 4, 2001. Current weekly data may be found at the issue date. Data do not include transactions under repurchase and reverse repurchase (resale) Federal Reserve Bank of New York web site (http:www.newyorkfed.org/pihome/statistics) agreements. Averages are based on the number of trading days in the week. under the Primary Dealer heading. 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 2001 2001. week ending IItteemm June July Aug. Aug. 1 Aug. 8 Aug. 15 Aug. 22 Aug. 29 Sept. 5 Sept. 12 Sept. 19 NET OUTRIGHT POSITIONS- Bx type of security 1 U.S. Treasury bills 3,445 7,014 22,281 12.864 22,024 24,180 18.543 22.157 34,763 33.144 32,117 Treasury coupon securities bv maturity 2 Three years or less -16,969 -16,714 -17,171 -17.577 -20.199 -15.892 -15,962 -16,808 -16.343 -16.699 -11,810 3 More than three years but less than or equal to six years -15,221 -15,174 -11,233 -12,125 -10,486 -11,933 -11,105 -10.926 -12.472 -10,728 -8.352 4 More than six but less than or equal to eleven years -16,118 -18,610 -14,383 -20,184 —17,077 -16.033 -13.623 -10.350 -13,047 -16,749 -12,237 More than eleven 10,239 10,090 8,486 8.984 8.063 7,845 9.466 8,444 8,674 7,952 11.599 6 Inflation-indexed 3.491 2,311 3,202 2,750 2,806 3,298 3,412 3.339 3,270 3.821 3,719 Federal agency and governmentsponsored enterprises 7 Discount notes 55,075 56,172 56.726 60,799 56,493 58,231 53,986 56.724 59,834 62.102 5577,,990044 Coupon securities, by maturity X Three years or less 23,625 23,494 18,353 20,347 18,422 19,154 17,160 19,174 15,617 14,377 12,274 9 More than three years but less than or equal to six years -3,096 -1,445 -1,895 -1,648 -3,007 -1,822 -2,845 -196 -1,009 -2,803 -1.383 10 More than six but less than or equal to eleven years 2,472 3,962 3,486 4,791 4,984 4,204 2,320 2,213 3,613 2,608 1,509 11 More than eleven 4,190 3,910 3,686 3,860 3,871 4,003 3,309 3.618 3,406 2.749 3,072 12 Mortgage-backed 17,928 12,840 12,198 15,239 9,521 15,715 11,180 12,504 10,235 6,258 9.386 Corporate securities 13 One year or less 16,541 15,038 15.756 15.621 14,440 15,675 15,685 16.516 18.295 24.806 13.109 14 More than one year 23,106 25.410 29,747 25,753 29,678 30.291 26,939 33,490 26,807 30.036 30,707 FINANCING1 Securities in U.S. Treasury 15 Overnight and continuing 510.993 532.092 555,619 550,444 529,020 565,181 576,481 553,987 550,527 462,217 562,569 16 Term 711,949 751.848 688.830 783,387 813,503 617,222 646,639 673,914 655,695 681,161 658,858 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 110,263 113,178 116,534 121.687 113,903 119,237 120.188 112.134 116.321 94,158 117.976 18 Term 159,641 163,334 177,889 165,677 176,572 175.140 180.507 181.091 177.852 175,643 166,442 Mortgage-backed securities 19 Overnight and continuing 20.813 23,186 24,844 24,706 22,829 20,670 26,448 29,473 24,755 17,632 22.523 20 Term 197,977 199,969 220,176 205,577 219,673 224,292 225,582 215,891 210,910 208,702 208^175 Corporate securities 21 Overnight and continuing 34,229 34,288 33,956 33,968 33,269 33.602 33.655 34,284 37,503 31.939 34,091 22 Term 14,179 13,672 13,216 13.935 13,880 12,921 13,149 12,720 13,534 12,320 12.086 MEMO: Reverse repurchase agreements 23 Overnight and continuing 365,246 347,687 366,386 369.543 338,425 370.479 385.361 371,606 363.656 255,462 352,771 2244 Term 1,031,773 11,,000044..441188 997766,,445544 11,,003322..994488 11,,009944..221199 990066,,117755 994488,,993322 996600,,550088 993344,,115500 995511,,668866 993300,,559955 Securities out U.S. Treasury 25 Overnight and continuing 482,344 521,688 565,431 539.549 532,719 574.611 584,733 573.355 565.442 497,109 558,008 26 Term 665,178 688,710 620,092 719.926 744.378 543,388 584,863 603,689 584,351 628.116 583,539 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 192,185 215,274 213,057 224,325 207,367 219,508 206,544 214,198 223,566 146.391 217.450 28 Term 137,932 123,248 144,850 125,972 142,663 145,730 150,516 146.309 133,931 146.525 118.311 Mortgage-backed securities 29 Overnight and continuing 222,096 254,481 277,441 262,710 265,913 282,028 299,660 272,283 249,380 216,023 281.213 30 Term 117,555 101,794 110.410 100,950 107,508 107,100 116,106 112,729 108,835 116.875 102.984 Corporate securities 31 Overnight and continuing 77,335 81,804 82,922 81,415 78,459 85.228 82,574 84,601 86,574 63,717 81.965 32 Term 15,523 11,043 11,698 11,586 11,990 11,978 11,913 11,465 9,817 10.255 6.470 MEMO: Repurchase agreements 33 Overnight and continuing 890,043 940,177 1,006,856 971,493 955,579 1,024.332 1,036,472 1,018.865 997,155 812,032 1.008,659 34 Term 934,264 890,275 865,731 937,019 985,221 786,273 841,701 852,527 820,287 884.532 796,376 1. Data for positions and financing are obtained from reports submitted to the Federal 3. Figures cover financing U.S. government, federal agency, government-sponsored enter- Reserve Bank of New York by the U.S. government securities dealers on its published list of prise. mortgage-backed, and corporate securities. Financing transactions for Treasury primary dealers. Weekly figures are close-of-business Wednesday data. Positions for calendar inflation-indexed securities (TIIS) are reported in actual funds paid or received, except for days of the report week are assumed to be constant. Monthly averages are based on the pledged securities. TIIS that are issued as pledged securities are reported at par value, which number of calendar days in the month. is the value of the security at original issuance (unadjusted for inflation). 2. Net outright positions include all U.S. government, federal agency, government- NOTE. Major changes in the report form filed by primary dealers included a break in many sponsored enterprise, mortgage-backed, and corporate securities scheduled for immediate and series as of the week ending July 4, 2001. Current weekly data may be found at the Federal forward delivery, as well as U.S. government securities traded on a when-issued basis Reserve Bank of New York web site (http://www.newyorkfed.org/pihome/statistics) under the between the announcement and issue date. Primary Dealer heading. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A30 Domestic Nonfinancial Statistics • December 2001 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2001 AAggeennccyy 11999977 11999988 11999999 22000000 Mar. Apr. May June July 1 Federal and federally sponsored agencies 1,022,609 1,296,477 1,616,492 1,851,632 1,919,761 l,946,961r l,967,515r 1,986,146 2,009,746 2 Federal agencies 27,792 26,502 26,376 25,666 25,063 25,024 25,070 25,495 25,325 3 Defense Department1 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 102 205 126 255 307 315 201 204 210 6 Government National Mortgage Association certificates of participation5 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 7 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 8 Tennessee Valley Authority 27,786 26,496 26,370 25,660 25,057 25,018 25,064 25,489 25,319 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 1,894,698 1,921,937 1.942,445 1,960,651 1,984,421 11 Federal Home Loan Banks 313,919 382,131 529,005 594,404 602,824 595,562 592,406 595,148 601,490 12 Federal Home Loan Mortgage Corporation 169,200 287,396 360,711 426,899 461,338 478,447 490,442 496,711 508,944 1.3 Federal National Mortgage Association 369,774 460,291 547,619 642,700 666,600 682,500 693,600 702,300 706,800 14 Farm Credit Banks8 63,517 63,488 68,883 74,181 74,174 74,456 75,363 76,330 76,307 15 Student Loan Marketing Association9 37,717 35,399 41,988 45,375 47,322 48,468 48,255 47,687 48,427 16 Financing Corporation™ 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 Corporation'2 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt'3 49,090 44,129 42,152 40,575 39,341 39,065 42,837 38,235 37,510 Lending to federal and federally sponsored agencies 20 Export-Import Bank3 552 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Postal Service6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 22 Student Loan Marketing Association n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 23 Tennessee Valley Authority n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 United States Railway Association6 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Other lending14 25 Farmers Home Administration 13,530 9,500 6,665 5,275 5,155 5,155 5,540 5,155 5,155 26 Rural Electrification Administration 14,898 14,091 14,085 13,126 13,371 13,371 12,989 13,381 13,483 27 Other 20,110 20,538 21,402 22,174 20,815 20,539 24,308 19,699 18,872 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 claims. Once issued, these securities may be sold privately on the securities market. Reform, Recovery, and Enforcement Act of 1989, undertook its first borrowing in October 5. Certificates of participation issued before fiscal year 1969 by the Government National 1989. Mortgage Association acting as trustee for the Farmers Home Administration; the Department 13. The FFB, which began operations in 1974, is authorized to purchase or sell obligations of Health, Education, and Welfare; the Department of Housing and Urban Development; the issued, sold, or guaranteed by other federal agencies. Because FFB incurs debt solely for the Small Business Administration; and the Veterans Administration. purpose of lending to other agencies, its debt is not included in the main portion of the table to 6. Off-budget. avoid double counting. 7. Includes outstanding noncontingent liabilities: notes, bonds, and debentures. Includes 14. Includes FFB purchases of agency assets and guaranteed loans; the latter are loans Federal Agriculture Mortgage Corporation; therefore, details do not sum to total. Some data guaranteed by numerous agencies, with the amounts guaranteed by any one agency generally are estimated. being small. The Farmers Home Administration entry consists exclusively of agency assets, 8. Excludes borrowing by the Farm Credit Financial Assistance Corporation, which is whereas the Rural Electrification Administration entry consists of both agency assets and shown on line 17. guaranteed loans. 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 2001 TTyyppee ooff iissssuuee oorr iissssuueerr,, 11999988 11999999 22000000 oorr uussee Feb. Mar. Apr. May June July Aug. Sept. 1 All issues, new and refunding1 262,342 215,427 180,403 19,829 24,495 16,985 26,248 29,298 19,232 21,152 13,159 By type of issue 2 General obligation 87,015 73,308 64,475 9,389 7,668 6,890 8,385 9,691 5,836 8,796 3,926 3 Revenue 175,327 142,120 115,928 10,441 16,827 10,094 17,863 19,606 13,396 12,356 9,233 By type of issuer 4 State 23,506 16,376 19,944 3,268 1,893 1,900 3,123 2,905 2,029 2,713 1,504 5 Special district or statutory authority2 178,421 152,418 111,695 11,011 17,280 113,344 17,281 20,672 11,784 12,351 9,137 6 Municipality, county, or township 60,173 46,634 39,273 5,550 5,323 3,740 5,845 5,721 5,419 6,088 2,518 7 Issues for new capital 160,568 161,065 154,257 13,384 15,387 12,264 20,002 20,044 15,015 13,550 10,110 By use of proceeds 8 Education 36,904 36,563 38,665 3,102 5,343 3,731 5,714 6,460 3,379 2,950 3,017 9 Transportation 19,926 17,394 19,730 2,411 1,219 1,381 2,522 1,258 3,160 1,669 1,195 10 Utilities and conservation 21,037 15,098 11,917 1,335 1,677 1,447 2,969 3,191 1,055 1,228 1,025 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 7,122 281 396 436 422 443 508 708 663 13 Other purposes 42,450 47,896 47,309 4,742 4,368 3,010 4,736 5,047 3,803 4,524 1,732 1. Par amounts of long-term issues based on date of sale. SOURCE. Securities Data Company beginning January 1990; Investment Dealer's Digest 2. Includes school districts. before then. 1.46 NEW SECURITY ISSUES U.S. Corporations Millions of dollars 2001 TTyyppee ooff oo ii rr ss ss ii uu ssss ee uu ,, ee oo rr ff ffeerriinngg,, 11999988 11999999 22000000 Jan. Feb. Mar. Apr. May June July Aug. 1 All issues' 1,128,491 1,072,866 942,198 125,894 96,206 139,267 92,778 164,563 122,773 93,451 97,881 2 Bonds2 1,001,736 941,298 807,281 118,372 88,806 127,956 86,274 154,623 102,476 84,872 89,946 By type of offering 3 Sold in the United States 923,771 818,683 684,484 115,583 86,146 118,779 81,156 146,164 96,382 79,508 86,715 4 Sold abroad 77,965 122,615 122,798 2,789 2,660 9,177 5,117 8,459 6,094 5,364 3,231 MEMO 5 Private placements, domestic n.a. n.a. n.a. 26 1,897 652 0 2,563 3,146 12 48 By industry group 6 Nonfinancial 307,711 293,963 242,452 44,443 34,604 44,385 33,549 67,142 34,996 18,904 28,546 7 Financial 694,025 647,335 564,829 73,928 54,201 83,571 52,725 87,481 67,480 65,968 61,400 8 Stocks3 182,055 223,968 283,717 7,522 7,400 11,311 6,504 9,940 20,297 8,579 7,935 By type of offering 9 Public 126,755 131,568 134,917 7,522 7,400 11,311 6,504 9,940 20,297 8,579 7,935 10 Private placement4 55,300 92,400 148,800 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. By industry group 11 Nonfinancial 74,113 110,284 118,369 4,356 4,463 7,718 4,822 6,809 16,630 4,237 5,468 12 Financial 52,642 21,284 16,548 3,166 2,937 3,593 1,682 3,131 3,667 4,342 2,467 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data are not available. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic NonfinancialS tatistics • December 2001 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2001 IItteemm 11999999 22000000 Feb. Mar. Apr. May June July Aug.' Sept. 1 Sales of own shares2 1,791,894 2,279,315 148,362 162,548 152,327 158,361 139,270 138,428 142,577 105,275 2 Redemptions of own shares 1,621,987 2,057,277 141,663 175,633 130,454 132,574 125,097 129,021 131,408 128,409 3 Net sales3 169,906 222,038 6,699 -13,085 21,873 25,787 14,173 9,407 11,169 -23,134 4 Assets4 5,233,191 5,123,747 4,879,229 4,594,182 4,910,568 4,956,982 4,888,874 4,825,144 4,635,477 4,253,877 5 Cash5 219,189 277,386 274,077 241,518 247,169 237,487 240,199 240.392 240,329 222,826 6 Other 5,014,002 4,846,361 4,605,152 4,352,664 4,663,399 4,719,495 4,648,675 4,584,752 4,395,148 4,031,051 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 2001 AAccccoouunntt 11999988 11999999 22000000 Q3 Q4 Q1 Q2 Q3 Q4 Qi Q2 1 Profits with inventory valuation and capital consumption adjustment 777.4 825.2 876.4 800.2 857.6 870.3 892.8 895.0 847.6 789.8 759.8 2 Profits before taxes 721.1 776.3 845.4 765.8 825.0 844.9 862.0 858.3 816.5 755.7 738.3 3 Profits-tax liability 238.8 253.0 271.5 250.7 267.3 277.0 280.4 274.9 253.5 236.8 228.0 4 Profits after tax 482.3 523.3 573.9 515.1 557.7 567.8 581.6 583.4 563.0 518.9 510.3 5 Dividends 348.7 343.5 379.6 342.2 349.6 361.5 373.7 386.2 397.0 405.2 412.3 6 Undistributed profits 133.6 179.8 194.3 172.9 208.1 206.3 207.9 197.2 165.9 113.7 98.0 7 Inventory valuation 18.3 -2.9 -12.4 -17.7 -21.0 -23.8 -14.8 -3.6 -7.3 -1.9 -8.8 8 Capital consumption adjustment 38.0 51.7 43.4 52.1 53.6 49.2 45.5 40.4 38.4 36.0 30.3 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 2000 2001 AAccccoouunntt 11999988 11999999 22000000 QI Q2 Q3 Q4 QI Q2 Q3 ASSETS 1 Accounts receivable, gross2 711.7 811.5 915.6 848.7 884.4 900.1 915.6 910.7 929.9 n.a. 2 Consumer 261.8 279.8 296.1 285.4 294.1 301.9 296.1 287.2 290.7 n.a. 3 Business 347.5 405.2 471.1 434.6 454.1 455.7 471.1 471.7 481.8 n.a. 4 Real estate 102.3 126.5 148.3 128.8 136.2 142.4 148.3 151.8 157.4 n.a. 5 LESS: Reserves for unearned income 56.3 53.5 60.0 54.0 57.0 58.8 60.0 60.2 61.9 n.a. 6 Reserves for losses 13.8 13.5 15.1 14.0 14.4 14.2 15.1 15.6 16.0 n.a. 7 Accounts receivable, net 641.6 744.6 840.5 780.7 813.1 827.1 840.5 834.9 852.0 n.a. 8 All other 337.9 406.3 461.8 412.7 419.4 441.4 461.8 475.5 486.2 n.a. 9 Total assets 979.5 1,150.9 1,302.4 1,193.4 1,232.4 1,268.4 1,302.4 1,310.4 1,338.2 n.a. LIABILITIES AND CAPITAL 10 Bank loans 26.3 35.1 35.6 28.5 33.3 35.4 35.6 41.4 45.2 n.a. 11 Commercial paper 231.5 227.9 235.2 230.2 234.2 215.6 235.2 178.2 177.3 n.a. Debt 12 Owed to parent 61.8 123.8 146.5 145.1 136.8 144.3 146.5 138.4 145.9 n.a. 13 Not elsewhere classified 339.7 397.0 463.8 412.0 445.1 465.5 463.8 501.8 504.6 n.a. 14 All other liabilities 203.2 222.7 279.7 247.6 249.6 269.2 279.7 299.7 309.8 n.a. 15 Capital, surplus, and undivided profits 117.0 144.5 141.6 130.1 135.3 138.3 141.6 150.8 155.5 n.a. 16 Total liabilities and capital 979.5 1,150.9 1,302.4 1,193.4 1,234.4 1,268.4 1,302.4 1,310.4 1,338.2 n.a. 1. Includes finance company subsidiaries of bank holding companies but not of 2. Before deduction for unearned income and losses. Excludes pools of securitized retailers and banks. Data are amounts carried on the balance sheets of finance compa- assets, nies; 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 Markets and Corporate Finance A33 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables1 Billions of dollars, amounts outstanding 2001 TTyyppee ooff ccrreeddiitt Mar. Apr. May June July Aug. Seasonally adjusted 1 Total 875.8 993.9 1,145.2 1,159.8 1,172.7 1,173.7 1,180.2 l,186.6r 1,189.7 2 Consumer 352.8 385.3 439.3 450.9 455.9 453.4 452.3 453.3 455.2 3 Real estate 131.4 154.7 174.9 177.7 182.5 184.4 183.6 187.1 189.6 4 Business 391.6 453.9 531.0 531.1 534.2 535.9 544.2 546.2r 544.9 Not seasonally adjusted 5 Total 884.0 1,003.2 1,156.0 1,164.2 1,175.0 1,176.9 1,186.2 i,i8i.r 1,183.6 6 Consumer 356.1 388.8 443.4 446.9 450.6 450.9 453.1 455.1 456.6 7 Motor vehicle loans 103.1 114.7 122.5 118.9 126.9 127.6 127.5 128.8' 133.0 S Motor vehicle leases 93.3 98.3 102.9 101.3 101.4 100.6 99.7 99.5 99.0 9 Revolving2 32.3 33.8 38.3 35.6 36.0 37.5 37.4 37.5 37.6 10 Other3 33.1 33.1 32.4 31.3 28.1 26.4 26.1 26.4 26.7 Securitized assets4 11 Motor vehicle loans 54.8 71.1 97.1 108.0 106.1 107.7 110.2 111.4' 108.9 12 Motor vehicle leases 12.7 9.7 6.6 6.6 7.0 6.9 7.6 7.4 7.2 13 Revolving 8.7 10.5 27.5 28.8 29.1 28.4 29.1 29.1 28.9 14 Other 18.1 17.7 16.0 16.2 16.0 15.7 15.5 15.2 15.2 15 Real estate 131.4 154.7 174.9 177.7 182.5 184.4 183.6 187.1 189.6 16 One- to four-family 75.7 88.3 105.4 108.1 112.3 114.4 113.3 117.1 118.9 17 Other 26.6 38.3 42.9 43.8 43.8 43.9 44.2 44.0 44.8 Securitized real estate assets4 IS One- to four-family 29.0 28.0 24.7 23.9 23.8 23.6 23.4 23.2 23.0 19 Other .1 .2 1.9 1.9 2.6 2.6 2.8 2.8 2.8 20 Business 396.5 459.6 537.7 539.7 541.9 541.6 549.5 539.0' 537.4 21 Motor vehicles 79.6 87.8 95.2 91.9 91.0 90.8 91.9 87.6 85.9 22 Retail loans 28.1 33.2 31.0 30.5 29.9 29.8 29.4 29.5 29.5 23 Wholesale loans5 32.8 34.7 39.6 35.8 35.3 35.2 36.6 32.4 30.7 24 Leases 18.7 19.9 24.6 25.6 25.8 25.8 25.8 25.7 25.7 25 Equipment 198.0 221.9 267.3 264.6 269.2 271.4 276.0 272.3' 273.8 26 Loans 50.4 52.2 56.2 57.1 57.7 58.4 60.7 59.0 59.9 27 Leases 147.6 169.7 211.1 207.5 211.5 213.0 215.3 213.3' 213.9 28 Other business receivables6 69.9 95.5 108.6 115.2 113.5 112.1 113.9 112.0 110.7 Securitized assets4 29 Motor vehicles 29.2 31.5 37.8 40.0 40.3 40.0 39.0 38.2 38.1 30 Retail loans 2.6 2.9 3.2 2.8 3.1 3.0 3.1 2.9 2.8 31 Wholesale loans 24.7 26.4 32.5 34.5 34.6 34.3 33.4 32.7 32.7 32 Leases 1.9 2.1 2.2 2.6 2.6 2.7 2.6 2.6 2.6 33 Equipment 13.0 14.6 23.1 22.5 22.2 21.6 22.6 23.0 22.7 34 Loans 6.6 7.9 15.5 14.6 14.4 13.9 15.2 15.2 14.8 35 Leases 6.4 6.7 7.6 7.9 7.8 7.7 7.5 7.8 7.9 36 Other business receivables6 6.8 8.4 5.6 5.6 5.7 5.7 6.0 6.0 6.2 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 subsidibreakdowns have been obtained for some components. In addition, previously unavailable aries 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 reclassificaton 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 • December 2001 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2001 Mar. Apr. May June July Aug. Sept. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 195.2 210.7 234.5 244.5 240.8 241.4 250.6 242.9 241.5 246.6 2 Amount of loan (thousands of dollars) 151.1 161.7 177.0 182.9 181.5 181.4 188.7 182.7 181.3 184.3 3 Loan-to-price ratio (percent) 80.0 78.7 77.4 77.2 77.6 77.6 77.3 77.3 76.6 77.1 4 Maturity (years) 28.4 28.8 29.2 28.8 28.5 28.6 28.7 28.8 28.7 29.0 3 Fees and charges (percent of loan amount)2 .89 .77 .70 .66 .71 .69 .66 .66 .61 .61 Yield (percent per year) 6 Contract rate1 6.95 6.94 7.41 6.94 6.96 7.02 7.02 7.01 7.06 6.80 7 Effective rate1,3 7.08 7.06 7.52 7.04 7.07 7.12 7.12 7.11 7.15 6.89 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 6.41 6.53 6.61 6.55 6.49 6.29 6.03 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 11 Total 414,515 523,941 610,122 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 FHA/VA insured 33,770 55,318 61,539 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Conventional 380,745 468,623 548,583 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 14 Mortgage transactions purchased (during period) 188,448 195,210 154,231 20,899 24,015 16,825 24,430 26,082 22,111 16,016 Mortgage commitments (during period) 13 Issued7 193,795 187,948 163,689 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 To sell8 1,880 5,900 11,786 n.a. n.a. n.a. n.a. n.a. n.a. n.a. FEDERAL HOME LOAN MORTGAGE CORPORATION Mortgage holdings (end of periodf 17 Total 255,010 324,443 385,693 421,655 430,960 437,582 443,810 454,485 465,553 470,850 18 FHA/VA insured 785 1,836 3,332 3,329 2,878 2,785 2,738 2,689 2,643 2,597 19 Conventional 254,225 322,607 382,361 418,326 428,082 434,797 441,072 451,796 462,910 468,253 Mortgage transactions (during period) 20 Purchases 267,402 239,793 174,043 24,648 n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 250,565 233,031 166,901 23,367 31,219 33,670 38,133 44,574 33,933 32,666 22 Mortgage commitments contracted (during period)9 281,899 228,432 169,231 26,682 32,758 39,897 37,312 43,788 34,087 31,140 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 by National Mortgage Association exclude swap activity. the Federal Housing Administration (FHA) for immediate delivery in the private secondary market. Based on transactions on first day of subsequent month. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Real Estate A3 5 1.54 MORTGAGE DEBT OUTSTANDING1 Millions of dollars, end of period 2000 2001 TTyyppee ooff hhoollddeerr aanndd pprrooppeerrttyy 11999977 11999988 11999999 Q2 Q3 Q4 Ql Q2 1 All holders 5,195,235r 5,707,172r 6,343,995' 6,615,662' 6,767,922r 6,914,156r 7,036,854r 7,253,938 By type of property 7 One- to four-family residences 3,966,639r 4,351,496' 4,780,203' 4,970,215' 5,095,720' 5,201,362' 55,,229933,,773344'' 55,,445522,,222244 3 Multifamily residences 301,817r 333,873' 378,811' 398,667' 407,112' 417,555' 426,993' 442,399 4 Nonfarm, nonresidential 836,479r 925,297' 1,082,019' 1,140,329' 1,157,134' 1,186,403' 1,206,253' 1,246,425 5 90,300 96,506 102,962 106,451' 107,957 108,836 109.873' 112,889 By type of holder 6 Major financial institutions 2,084,000 2,195,869 2,396,265 2,550,401' 2,606,592 2,620,886' 2,664,837' 2,714,965 7 Commercial banks2 1,245,334 1,338,273 1,496,844 1,615,794 1,650,294 1,661,411' 1,688,673' 1,727,255 8 One- to four-family 745,777 798,009 880,208 949,223 968,831 966,502' 978,144' 999,307 9 Multifamily 50,705 54,174 67,666 75,795 77,031 77,821 79,890 80,542 10 Nonfarm, nonresidential 421.865 457,054 517,130 557,059 570,513 583,071' 596,405' 612,247 11 Farm 26,987 29,035 31,839 33,717 33,919 34,016 34,234 35,159 12 Savings institutions3 631,826 643,957 668,634 701,992 721,563 723,534 741,114 751,660 13 One- to four-family 520,782 533,895 549,046 578,612 595,518 595,053 608,289 616,506 14 Multifamily 59,540 56,847 59,168 59,174 60,077 61,094 62,666 63,193 15 Nonfarm, nonresidential 51,150 52,798 59,945 63,688 65,437 66,852 69,589 71,378 16 Farm 354 417 475 518 531 535 569 583 17 Life insurance companies 206,840 213,640 230,787 232,615' 234,735 235,941' 235,050' 236,050 18 One- to four-family 7,187 6,590 5,934 5,242' 4,907 4,903' 4,877' 4,876 19 Multifamily 30,402 31,522 32,818 33,150' 33,478 33,681 33,557' 33,553 20 Nonfarm, nonresidential 158,779 164,004 179,048 180,856' 182,646 183,757 183,078' 184,084 21 Farm 10,472 11,524 12,987 13,367' 13,704 13.600 13,538' 13,537 22 Federal and related agencies 286,194 293,602 322.132 332,568' 336,575' 343,962 346,276 355,218 23 Government National Mortgage Association 8 7 7 7 6 6 6 6 24 One- to four-family 8 7 7 7 6 6 6 6 25 Multifamily 0 0 0 0 0 0 0 0 76 Farmers Home Administration4 41,195 40,851 73,871 72,896 73,009 73,323 73,361 73,206 7.7 One- to four-family 17,253 16,895 16,506 16,435 16,444 16,372 16,297 16,153 78 Multifamily 11,720 11,739 11,741 11,729 11.734 11,733 11,725 11,720 79 Nonfarm, nonresidential 7,370 7,705 41,355 40,554 40,665 41,070 41,247 41,262 30 Farm 4,852 4,513 4,268 4,179 4,167 4,148 4,093 4,072 31 Federal Housing and Veterans' Administrations 3,811 3,674 3,712 3,845 3,395 3,507 2,873 2,918 32 One- to four-family 1,767 1,849 1,851 1,832 1,327 1,308 1,276 1,267 33 Multifamily 2,044 1,825 1,861 2,013 2,068 2,199 1,597 1,651 34 Resolution Trust Corporation -278 24 -10 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 724 361 152 72 82 45 50 24 40 One- to four-family 117 58 25 12 13 7 8 4 41 Multifamily 140 70 29 14 16 9 10 5 42 Nonfarm, nonresidential 467 233 98 46 53 29 32 15 43 Farm 0 0 0 0 0 0 0 0 44 Federal National Mortgage Association 161,308 157,675 151,500 153,507 152,815 155,363 156,294 159,221 45 One- to four-family 149,831 147,594 141,195 142,478 141,786 144,150 145,014 147,730 46 Multifamily 11,477 10,081 10,305 11,029 11,029 11,213 11,280 11,491 47 Federal Land Banks 30,657 32,983 34,187 34,830 35,549 36,326 37,072 38,686 48 One- to four-family 1,804 1,941 2,012 2,049 2,092 2,137 2,181 2,276 49 Farm 0 0 0 0 0 0 0 0 50 Federal Home Loan Mortgage Corporation 48,454 57,085 56,676 56,972 57,046 59,240 60,110 61,542 51 One- to four-family 42,629 49,106 44,321 42,892 42,138 42,871 42,771 42,537 52 Multifamily 5,825 7,979 12,355 14,080 14,908 16,369 17,339 19,005 53 Mortgage pools or trusts5 2,232,848 2,581,969 2,947,760 3,035,546' 3,116,180' 3,232,338' 3.303,742' 3,450.274 54 Government National Mortgage Association 536,879 537,446 582,263 590,708 602,628 611,553' 601,534' 598,106 55 One- to four-family 523,225 522,498 565,189 572,661 584,152 592,624' 581,754' 577,315 56 Multifamily 13,654 14,948 17,074 18,047 18,476 18,929 19,780 20,792 57 Federal Home Loan Mortgage Corporation 579,385 646,459 749,081 768,641 790,891 822,310 833,616 873,750 58 One- to four-family 576,846 643,465 744,619 763,890 786,007 816,602 827,769 867,924 59 Multifamily 2,539 2,994 4,462 4,751 4,884 5,708 5,847 5,826 60 Federal National Mortgage Association 709,582 834,517 960,883 995,815 1,020,828 1,057,750 1,099,049 1,163,978 61 One- to four-family 687,981 804,204 924,941 957,584 981,206 1,016,398 1,055,412 1.116,534 62 Multifamily 21,601 30,313 35.942 38,231 39,622 41,352 43,637 47,444 63 Farmers Home Administration4 2 1 0 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 2 1 0 0 0 0 0 0 68 Private mortgage conduits 407,000 563,546 655,533 680,382' 701,833' 740,725' 769,543' 814,440 69 One- to four-family6 310,659 405,153 455,021 464,593 477,899 499,834 523,300 539,200 70 Multifamily 20,907 33,754 42,226 44,413' 46,142' 49,513' 50,749' 56,974 71 Nonfarm, nonresidential 75,434 124,639 158,287 171,376' 177,792' 191,378' 195,494' 218,266 72 Farm 0 0 0 0 0 0 0 0 73 Individuals and others7 592,193r 635,732' 677,838' 697,147' 708,575' 716,971' 721,999' 733,482 74 One- to four-family 380,736r 419,278' 447,532' 462,493' 478,944' 486,664' 490,345' 501,192 75 Multifamily 71,263' 77,617' 82,932r 86,015' 87,423' 87,714' 88,699' 89,989 76 Nonfarm, nonresidential 121,415' 118,863' 126,156' 126,750' 120,028' 120,245' 120,408' 119,172 77 18,779 19,974 21,217 21,889' 22,179 22,348 22,547' 23,129 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • December 2001 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2001 11999988 11999999 22000000 Mar. Apr. May June July' Aug. Seasonally adjusted 1 Total 1,301,023 1,393,657 1,531,469 1,570,990 1,584,421 1,590,958 l,589,191r 1,588,615 1,590,909 2 Revolving 560,504 595,610 663,830 689,727 696,417 699,036 700,270r 701,359 702,595 3 Nonrevolving3 740,519 798,047 867,639 881,264 888,004 891,923 888,921r 887,256 888,314 Not seasonally adjusted 4 Total 1,331,742 1,426,151 1,566,457 1,558,582 1,570,273 1,576,257 1,581,064' 1,580,952 1,592,971 By major holder Commercial banks 508,932 499,758 541,470 533.680 540,740 543,048 540,211 537,678 541,900 6 Finance companies 168,491 181,573 193,189 185,862 191,028 191,539 190,969 192,597 197,398 / Credit unions 155,406 167,921 184,434 182.918 184,280 185,971 187,000 185,512 187,138 8 Savings institutions 51,611 61,527 64,557 65,509 65,453 65,396 65.340 65,999 66,658 9 Nonfinancial business 74.877 80,311 82,662 71,403 71,490 69,963 68,016r 65,360 63,550 IU Pools of securitized assets3 372.425 435,061 500,145 519,210 517,283 520,340 529,528 533,806 536,326 Bv major rxpe of credit4 1 1 Revolving 586,528 623,245 693,645 682,684 689,214 691,635 694,276r 693,943 698,936 12 Commercial banks 210,346 189,352 218,063 209,461 214,683 216,268 213,080 212.162 212,291 13 Finance companies 32,309 33,814 38,251 35.626 36,044 37,509 37,373 37.485 37,623 14 Credit unions 19,930 20,641 22,226 20,902 21,068 21,226 21,290 21,822 22.124 15 Savings institutions 12,450 15,838 16.560 16,987 16,788 16,589 16,391 16.714 17,036 lb Nonfinancial business 39,166 42,783 42,430 33,871 33,815 32,690 31,366' 29,314 27,603 W Pools of securitized assets3 272,327 320,817 356,114 365,837 366,815 367,354 374,776 376,447 382.259 18 Nonrevolving 745,214 802,906 872,812 875,898 881,060 884,622 886,788' 887,009 894,036 19 Commercial banks 298.586 310,406 323,407 324,219 326,057 326,780 327,131 325,516 329,610 20 Finance companies 136,182 147,759 154.938 150.236 154,985 154,030 153,597 155,112 159,775 21 Credit unions 135,476 147,280 162,208 162,016 163,212 164,745 165,710 163,690 165,014 22 Savings institutions 39.161 45,689 47,997 48,523 48,665 48,807 48,949 49,286 49,622 23 Nonfinancial business 35.711 37,528 40,232 37,532 37,674 37,274 36,650' 36,046 35,948 24 Pools of securitized assets3 100,098 114,244 144,031 153,372 150,468 152,986 154,752 157,360 154,068 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 2001 IItteemm 11999988 11999999 22000000 Feb. Mar. Apr. May June July Aug. INTEREST RATES Commercial hanks2 1 48-month new car 8.72 8.44 9.34 9.17 n.a. n.a. 8.67 n.a. n.a. 8.31 2 24-month personal 13.74 13.39 13.90 13.71 n.a. n.a. 13.28 n.a. n.a. 13.25 Credit card plan 3 All accounts 15.71 15.21 15.71 15.66 n.a. n.a. 15.07 n.a. n.a. 14.60 4 Accounts assessed interest 15.59 14.81 14.91 14.61 n.a. n.a. 14.63 n.a. n.a. 14.64 Auto finance companies 5 New car 6.30 6.66 6.61 7.19 6.80 6.80 6.56 6.15 6.20 6.41 6 Used car 12.64 12.60 13.55 13.34 13.19 12.82 12.57 12.05 11.79 12.06 OTHER TERMS3 Maturity (months) 7 New car 52.1 52.7 54.9 55.5 55.6 56.3 57.0 57.2 57.3 57.7 8 Used car 53.5 55.9 57.0 58.0 58.0 57.9 57.8 57.6 57.6 57.6 Loan-to-value ratio 9 New car 92 92 92 91 91 91 92 91 91 91 10 Used car 99 99 99 99 100 100 100 100 100 100 Amount financed (dollars) 11 New car 19,083 19,880 20,923 21.993 22,131 21,914 21,871 22,124 22,687 22,591 12 Used car 12,691 13,642 14.058 14,095 14,214 14,347 14,350 14,586 14,571 14,321 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 1999 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999999 Q4 Ql Q2 Q3 Q4 Ql Q2 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . 705.9 733.1 804.4 1,023.5 1,097.8 999.7 949.6 967.5 801.3 758.0 1,001.1 1,034.9 By sector and instrument 7 Federal government 144.4 145.0 23.1 -52.6 -71.2 -30.0 -217.2 -408.7 -226.2 -331.3 -4.3 -216.0 Treasury securities 142.9 146.6 23.2 -54.6 -71.0 -30.1 -215.2 -410.5 -223.8 -330.2 -2.1 -217.1 4 Budget agency securities and mortgages 1.5 -1.6 -.1 2.0 -.2 .0 -2.1 1.8 -2.4 -1.2 -2.2 1.1 5 Nonfederal 561.5 588.1 781.3 1,076.2 1,169.1 1,029.7 1,166.8 1,376.2 1,027.6 1,089.4 1,005.4 1,251.0 By instrument Commercial paper 18.1 -.9 13.7 24.4 37.4 44.0 29.8 110.4 56.1 -4.0 -207.2 --114411..55 7 Municipal securities and loans -48.2 2.6 71.4 96.8 68.2 44.8 20.0 30.1 31.0 60.1 106.9 113.9 8 Corporate bonds 91.1 116.3 150.5 218.7 229.9 155.2 186.2 153.8 184.4 175.6 403.7 423.7 9 Bank loans n.e.c 103.7 70.5 106.5 108.2 82.7 84.8 139.5 163.3 50.2 59.4 -6.7 -144.1 10 Other loans and advances 67.2 33.5 69.1 74.3 60.6 23.7 147.1 126.0 18.4 125.2 -12.5 102.8 11 Mortgages 190.6 277.5 317.6 486.1 595.9 567.7 498.8 654.6 565.0 549.5 563.1 823.3 1? Home 179.1 242.9 252.6 384.2 429.5 377.2 356.2 484.6 435.9 392.3 431.5 613.9 n Multifamily residential 4.5 9.5 7.6 23.8 42.7 53.9 30.9 49.0 29.5 41.7 40.4 56.2 14 Commercial 5.7 22.5 54.3 71.5 117.9 133.9 104.3 110.9 93.1 111.8 86.7 144.2 15 Farm 1.4 2.7 3.1 6.5 5.8 2.7 7.4 10.1 6.5 3.8 4.5 9.1 16 Consumer credit 138.9 88.8 52.5 67.6 94.4 109.5 145.3 137.9 122.5 123.7 158.1 72.8 By borrowing sector 17 Household 339.3 338.5 322.1 454.2 506.3 437.8 516.6 612.7 544.4 498.4 554499..55 666600..99 18 Nonfinancial business 273.7 256.4 403.2 541.7 610.4 564.7 637.2 745.2 459.4 537.2 355.8 480.0 19 Corporate 224.9 183.7 301.3 394.8 449.2 389.5 487.7 550.8 322.9 388.5 228.2 348.1 70 Nonfarm noncorporate 46.1 67.8 95.7 138.9 155.7 169.4 135.7 184.7 129.3 134.2 121.3 125.4 ?1 Farm 2.7 4.9 6.2 8.0 5.5 5.9 13.8 9.7 7.2 14.5 6.3 6.5 22 State and local government -51.5 -6.8 56.1 80.3 52.3 27.2 12.9 18.2 23.8 53.7 100.1 110.1 23 Foreign net borrowing in United States 78.5 88.4 71.8 43.4 27.9 22.8 117.4 50.6 108.7 107.4 9.3 4.2 74 Commercial paper 13.5 11.3 3.7 7.8 16.3 33.6 57.8 12.0 7.0 50.1 -25.4 -5.6 75 Bonds 57.1 67.0 61.4 34.9 16.8 2.3 44.7 31.2 91.5 49.6 33.3 36.0 76 Bank loans n.e.c 8.5 9.1 8.5 6.7 .5 2.3 15.4 5.7 11.9 12.2 13.0 -26.9 27 Other loans and advances -.5 1.0 -1.8 -6.0 -5.7 -15.4 -.5 1.7 -1.7 -4.6 -11.6 .7 28 Total domestic plus foreign 784.5 821.5 876.2 1,066.9 1,125.8 1,022.5 1,067.0 1,018.1 910.0 865.4 1,010.4 1,039.1 Financial sectors 29 Total net borrowing by financial sectors 454.0 545.7 653.8 1,073.8 1,077.3 961.4 601.2 884.8 777.9 976.7 882.9 763.1 By instrument 30 Federal government-related 204.2 231.4 212.9 470.9 592.0 552.4 224.4 381.1 514.8 613.6 432.6 671.2 31 Government-sponsored enterprise securities 105.9 90.4 98.4 278.3 318.2 367.9 104.9 248.9 278.1 304.5 262.3 264.7 32 Mortgage pool securities 98.3 141.0 114.6 192.6 273.8 184.5 119.5 132.2 236.7 309.1 170.3 406.5 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 249.8 314.4 440.9 602.9 485.3 409.0 376.7 503.7 263.1 363.1 450.3 91.8 35 Open market paper 42.7 92.2 166.7 161.0 176.2 404.4 114.6 136.7 106.5 153.2 -134.6 -85.4 36 Corporate bonds 195.9 173.8 210.5 296.9 211.2 -30.1 165.0 227.7 192.1 217.4 456.7 157.7 37 Bank loans n.e.c 2.5 12.6 13.2 30.1 -14.3 -54.4 3.1 10.2 -9.9 -4.4 27.8 14.5 38 Other loans and advances 3.4 27.9 35.6 90.2 107.1 85.9 87.0 119.2 -31.6 -4.8 107.8 -11.0 39 Mortgages 5.3 7.9 14.9 24.8 5.1 3.2 7.0 10.0 6.0 1.8 -7.5 16.0 By borrowing sector 40 Commercial banking 22.5 13.0 46.1 72.9 67.2 44.8 78.3 99.3 43.4 18.8 114488..33 --1155..66 41 Savings institutions 2.6 25.5 19.7 52.2 48.0 -6.8 57.5 69.0 -37.9 20.4 62.5 16.2 42 Credit unions -.1 .1 .1 .6 2.2 3.3 -2.9 .9 1.1 1.0 -.6 .8 43 Life insurance companies -.1 1.1 .2 .7 .7 -4.4 -.7 -1.1 -.3 -.7 -2.4 .1 44 Government-sponsored enterprises 105.9 90.4 98.4 278.3 318.2 367.9 104.9 248.9 278.1 304.5 262.3 264.7 45 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 184.5 119.5 132.2 236.7 309.1 170.3 406.5 46 Issuers of asset-backed securities (ABSs) 142.4 150.8 202.2 321.4 223.4 105.9 175.0 146.0 156.2 307.9 289.8 171.8 47 Finance companies 50.2 45.9 48.7 43.0 62.4 92.1 53.5 177.7 29.6 37.8 -42.8 35.7 48 Mortgage companies -2.2 4.1 -4.6 1.6 .2 6.2 -3.0 2.7 -.3 1.0 .7 .6 49 Real estate investment trusts (REITs) 4.5 11.9 39.6 62.7 6.3 11.3 11.5 9.8 -2.4 -8.1 -6.1 2.2 50 Brokers and dealers -5.0 -2.0 8.1 7.2 -17.2 -37.3 44.4 -.7 25.4 -6.6 -23.7 35.6 51 Funding corporations 34.9 64.1 80.7 40.7 92.2 193.8 -36.8 -.1 48.2 -8.5 24.6 -155.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Domestic NonfinancialS tatistics • December 2001 1.57 FUNDS RAISED IN US. CREDIT MARKETSContinued Billions of dollars; quarterly data at seasonally adjusted annual rates 1999 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 11999999 Q4 Ql Q2 Q3 Q4 Q1 Q2 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 1,238.5 1,367.2 1,530.0 2,140.7 2,203.1 1,983.8 1,668.1 1,902.9 1,687.9 1,842.1 1,893.2 1,802.2 5533 OOppeenn mmaarrkkeett ppaappeerr 74.3 102.6 184.1 193.1 229.9 482.0 202.1 259.1 169.7 199.3 -367.2 -232.5 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 348.6 376.4 236.0 418.3 520.7 522.4 7.2 -27.6 288.6 282.2 428.3 455.2 5555 MMuunniicciippaall sseeccuurriittiieess —48.2 2.6 71.4 96.8 68.2 44.8 20.0 30.1 31.0 60.1 106.9 113.9 5566 CCoorrppoorraattee aanndd ffoorreeiiggnn bboonnddss 344.1 357.0 422.4 550.4 457.9 127.4 396.0 412.7 468.0 442.6 893.7 617.4 5577 BBaannkk llooaannss nn..ee..cc 114.7 92.1 128.2 145.0 68.9 32.7 158.0 179.2 52.2 67.1 34.1 -156.5 5588 OOtthheerr llooaannss aanndd aaddvvaanncceess 70.1 62.5 102.8 158.5 162.0 94.2 233.6 246.9 -15.0 115.8 83.7 92.5 5599 MMoorrttggaaggeess 196.0 285.3 332.5 510.9 601.0 570.9 505.9 664.6 571.0 551.3 555.6 839.4 6600 CCoonnssuummeerr ccrreeddiitt 138.9 88.8 52.5 67.6 94.4 109.5 145.3 137.9 122.5 123.7 158.1 72.8 Funds raised through mutual funds and corporate equities 61 Total net issues 146.8 231.8 181.8 102.8 146.3 168.2 387.7 163.4 211.3 -166.0 170.0 427.6 62 Corporate equities -.6 -5.8 -83.3 -171.8 -42.1 8.0 80.4 -68.7 -68.1 -322.7 73.6 143.8 63 Nonfinancial corporations -58.3 -69.5 -114.4 -267.0 -143.5 -55.0 61.2 -245.2 -87.7 -394.8 -33.9 -35.2 64 Foreign shares purchased by U.S. residents 65.4 82.8 57.6 101.3 114.4 71.3 62.6 185.9 61.1 89.4 109.2 208.8 65 Financial corporations -7.7 -19.2 -26.5 -6.1 -13.0 -8.3 -43.4 -9.3 -41.5 -17.4 -1.8 -29.9 66 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 160.2 307.3 232.0 279.4 156.7 96.4 283.8 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables F.2 through F4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 1999 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 11999999 Q4 QI Q2 Q3 Q4 Ql Q2 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,238.5 1,367.2 1,530.0 2,140.7 2,203.1 1,983.8 1,668.1 1,902.9 1,687.9 1,842.1 1,893.2 1,802.2 7 Domestic nonfederal nonfinancial sectors -79.3 69.7 -29.7 86.3 189.2 -32.2 -227.3 133.4 -231.3 -155.8 -222.5 -63.2 Household 16.5 109.4 -20.2 -50.4 141.5 -.2 -283.0 31.2 -160.1 -136.4 -259.9 13.3 4 Nonfinancial corporate business -8.8 -10.2 -12.7 -16.0 -2.8 -41.1 56.5 61.9 -50.8 -28.7 40.6 -46.5 5 Nonfarm noncorporate business 4.4 4.2 3.0 18.1 7.1 6.9 -2.1 .4 -4.0 -2.7 -5.2 6 State and local governments -91.4 -33.7 .1 134.5 43.4 2.3 1.2 39.9 -16.4 12.1 1.5 -24.8 7 Federal government -.5 -7.2 5.1 13.5 5.8 -11.8 6.5 7.7 4.5 10.6 4.6 9.4 8 Rest of the world 273.9 414.4 311.3 254.2 208.8 136.0 315.2 197.9 216.2 387.8 410.8 344.0 9 Financial sectors 1,044.4 890.3 1,243.3 1,786.7 1,799.2 1,891.8 1,573.7 1,563.8 1,698.6 1,599.5 1,700.3 1,511.9 10 Monetary authority 12.7 12.3 38.3 21.1 25.7 -49.1 102.0 -5.4 39.1 -.9 53.7 26.4 11 Commercial banking 265.9 187.5 324.3 305.2 308.2 500.4 415.8 497.4 363.2 157.0 152.8 158.4 17 U.S.-chartered banks 186.5 119.6 274.9 312.0 317.6 417.4 448.2 510.9 324.8 75.3 107.9 179.7 13 Foreign banking offices in United States 75.4 63.3 40.2 -11.9 -20.1 34.1 4.5 -22.3 32.8 81.1 41.3 -22.7 14 Bank holding companies -.3 3.9 5.4 -.9 6.2 42.6 -42.2 3.5 -6.7 -3.2 7.3 -2.8 15 Banks in U.S.-affiliated areas 4.2 .7 3.7 6.0 4.4 6.3 5.4 5.4 12.3 3.8 -3.6 4.2 16 Savings institutions -7.6 19.9 -4.7 36.1 68.6 23.1 55.6 65.0 62.7 42.5 52.5 56.2 17 Credit unions 16.2 25.5 16.8 19.0 27.5 21.1 35.7 31.6 21.2 33.6 3.9 24.6 18 Bank personal trusts and estates -8.3 -7.7 -25.0 -12.8 27.8 27.8 18.9 13.8 17.6 18.1 10.7 13.4 19 Life insurance companies 100.0 69.6 104.8 76.9 53.5 27.4 65.0 52.9 74.8 38.8 95.3 101.2 20 Other insurance companies 21.5 22.5 25.2 5.8 -3.0 -8.2 -11.2 -18.1 6.2 -11.7 2.1 2.8 21 Private pension funds 19.9 -4.1 47.6 56.4 45.0 49.8 46.8 24.7 64.9 28.7 26.1 20.2 22 State and local government retirement funds 38.3 35.8 67.1 72.1 46.9 46.2 63.3 31.5 37.6 66.1 13.3 17.7 23 Money market mutual funds 86.5 88.8 87.5 244.0 182.0 355.1 161.5 -118.2 256.1 296.0 303.4 166.2 74 Mutual funds 52.5 48.9 80.9 124.8 47.2 -23.2 -66.9 63.1 50.1 60.8 69.4 130.9 75 Closed-end funds 10.2 4.6 -2.6 5.5 7.4 7.4 -8.4 -8.4 -8.4 -8.4 -8.4 -8.4 26 Government-sponsored enterprises 95.4 97.4 106.6 314.6 291.7 253.7 205.4 250.9 188.6 318.8 347.8 302.4 27 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 184.5 119.5 132.2 236.7 309.1 170.3 406.5 28 Asset-backed securities issuers (ABSs) 120.6 120.5 163.8 281.7 205.2 76.1 154.2 111.4 120.9 278.9 269.8 159.4 29 Finance companies 49.9 18.4 21.9 51.9 94.9 96.3 144.0 138.9 91.6 23.1 -3.9 85.5 30 Mortgage companies -3.4 8.2 -9.1 3.2 .3 12.3 -6.0 5.5 -.5 2.0 1.4 1.1 31 Real estate investment trusts (REITs) 1.4 4.4 20.2 -5.1 -2.6 -7.0 -16.3 -2.5 -3.6 -2.8 4.0 1.1 37 Brokers and dealers 90.1 -15.7 14.9 6.8 -34.7 -42.2 101.9 90.0 152.7 -69.0 311.4 13.8 33 Funding corporations -15.7 12.6 50.4 -12.9 133.8 340.1 -7.2 207.7 -72.9 19.0 -175.3 -167.5 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,238.5 1,367.2 1,530.0 2,140.7 2,203.1 1,983.8 1,668.1 1,902.9 1,687.9 1,842.1 1,893.2 1,802.2 Other financial sources 35 Official foreign exchange 8.8 -6.3 .7 6.6 -8.7 -7.0 1.5 -8.8 .7 4.9 --11..55 44..77 36 Special drawing rights certificates 2.2 -.5 -.5 .0 -3.0 -4.0 .0 -8.0 -4.0 -4.0 .0 .0 37 Treasury currency .7 .5 .5 .6 1.0 .0 2.2 3.2 4.2 .0 -1.1 1.1 38 Foreign deposits 35.3 85.9 107.7 6.5 61.0 -35.4 313.3 3.4 -40.8 207.4 235.5 -146.5 39 Net interbank transactions 10.0 -51.6 -19.7 -32.3 17.6 -17.2 -72.9 151.9 -170.6 10.6 -202.4 177.0 40 Checkable deposits and currency -12.8 15.7 41.2 47.4 151.4 368.9 -206.8 -33.8 5.0 -50.2 90.3 101.0 41 Small time and savings deposits 96.6 97.2 97.1 152.4 44.7 44.5 104.6 123.0 224.5 310.8 288.3 193.1 42 Large time deposits 65.6 114.0 122.5 92.1 130.6 348.3 154.1 101.2 152.9 65.2 130.6 65.9 43 Money market fund shares 141.2 145.4 155.9 287.2 249.1 455.8 239.7 71.5 250.9 371.1 621.4 322.5 44 Security repurchase agreements 110.5 41.4 120.9 91.3 169.7 260.8 275.0 155.2 278.0 -264.6 11.2 155.2 45 Corporate equities -.6 -5.8 -83.3 -171.8 -42.1 8.0 80.4 -68.7 -68.1 -322.7 73.6 143.8 46 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 160.2 307.3 232.0 279.4 156.7 96.4 283.8 47 Trade payables 133.7 123.3 139.7 109.2 222.3 255.4 193.5 193.9 132.8 105.4 -21.8 -10.1 48 Security credit 26.7 52.4 111.0 103.3 104.3 337.0 485.0 -91.4 94.7 75.6 -64.6 -82.9 49 Life insurance reserves 45.8 44.5 59.3 48.0 50.8 57.6 54.9 45.6 53.0 47.3 52.7 59.7 50 Pension fund reserves 158.8 148.3 201.4 202.1 184.5 166.2 210.8 260.8 227.1 169.0 255.6 196.7 51 Taxes payable 7.8 19.5 22.3 21.3 22.3 31.2 30.9 31.8 -1.6 25.9 .6 2.0 52 Investment in bank personal trusts 6.4 -5.3 -49.9 -41.8 -6.5 -7.6 -28.4 -33.1 -29.2 -28.0 -26.1 -22.7 53 Noncorporate proprietors' equity -.2 -31.6 -71.8 -74.0 -49.1 -48.2 -48.6 -28.8 -10.7 -34.9 -29.3 -13.0 54 Miscellaneous 496.9 525.0 490.6 1,002.5 738.1 677.5 999.5 1,089.7 1,283.9 595.9 570.9 932.1 55 Total financial sources 2,719.2 2,917.0 3,240.6 4,265.8 4,429.2 5,035.7 4,764.2 4,093.4 4350.2 3,283.4 3,973.5 4,165.8 Liabilities not identified as assets (—) 56 Treasury currency -.3 -.4 -.2 -.1 -.7 -2.2 -1.8 -.7 .9 -3.3 -3.6 -.3 57 Foreign deposits 25.1 59.6 106.2 -8.5 45.8 26.2 262.7 -81.9 -99.2 193.3 178.2 -108.3 58 Net interbank liabilities -3.1 -3.3 -19.9 3.4 3.5 -37.7 25.3 5.4 -12.1 51.1 16.7 12.9 59 Security repurchase agreements 25.7 2.4 63.2 60.6 30.0 -250.9 566.4 52.0 127.4 -302.3 -141.4 121.2 60 Taxes payable 21.1 23.1 28.0 19.7 6.5 3.6 9.4 10.0 -7.5 44.5 1.7 -26.9 61 Miscellaneous -197.1 -124.5 -126.4 -137.7 -373.6 -200.1 -417.8 -352.7 -275.6 -403.7 -7.4 -291.1 Floats not included in assets (—) 62 Federal government checkable deposits -6.0 .5 -2.7 2.6 -7.4 -20.0 18.7 16.3 3.0 -2.1 -29.8 13.8 63 Other checkable deposits -3.8 ^t.O -3.9 -3.1 -.8 -.2 1.0 1.4 1.9 2.4 3.8 3.9 64 Trade credit 17.4 -25.4 -29.2 -51.3 42.9 185.3 -72.1 -50.0 -49.4 24.1 26.7 -5.0 65 Total identified to sectors as assets 2,840.3 2,989.2 3,225.4 4,380.3 4,683.0 5,331.7 4372.4 4,493.7 4,660.7 3,679.4 3,928.6 4,445.6 1. Data in this table also appear in the Board's Z.l (780) quarterly statistical release, tables 2. Excludes corporate equities and mutual fund shares. F. 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 • December 2001 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 1999 2000 2001 Q4 QL Q2 Q3 Q4 QL Q2 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 14,440.6 15,243.5 16,267.0 17,399.6 17,399.6 17,629.0 17,807.7 18,008.0 18,287.7 18,529.3 18,716.5 By sector and instrument 2 Federal government 3,781.8 3,804.9 3,752.2 3,681.0 3,681.0 3,653.5 3,464.0 3,410.2 3,385.2 3,408.8 3,261.4 3 Treasury securities 3,755.1 3,778.3 3,723.7 3,652.8 3,652.8 3,625.8 3,435.7 3,382.6 3,357.8 3,382.1 3,234.4 4 Budget agency securities and mortgages 26.6 26.5 28.5 28.3 28.3 27.8 28.2 27.6 27.3 26.8 27.0 5 Nonfederal 10,658.8 11,438.6 12,514.8 13,718.5 13,718.5 13,975.5 14,343.8 14,597.8 14,902.6 15,120.5 15,455.1 By instrument 6 Commercial paper 156.4 168.6 193.0 230.3 230.3 260.8 296.8 307.0 278.4 253.2 223.3 7 Municipal securities and loans 1,296.0 1,367.5 1,464.3 1,532.5 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 1,596.6 1,629.3 8 Corporate bonds 1,460.4 1,610.9 1,829.6 2,059.5 2,059.5 2,106.0 2,144.5 2,190.6 2,234.5 2,335.4 2,441.3 9 Bank loans n.e.c 934.1 1,040.5 1,148.8 1,231.5 1,231.5 1,259.1 1,306.4 1,311.6 1,334.6 1,324.0 1,295.3 10 Other loans and advances 770.4 839.5 913.8 974.6 974.6 1,020.1 1,049.5 1,052.2 1,089.9 1,096.0 1,119.5 11 Mortgages 4,830.0 5,147.6 5,633.7 6,264.0 6,264.0 6,374.3 6,541.0 6,690.9 6,831.0 6,956.7 7,165.3 12 Home 3,717.1 3,969.7 4,353.9 4,783.5 4,783.5 4,858.0 4,982.3 5,100.0 5,200.7 5,293.5 5,449.7 13 Multifamily residential 278.2 285.8 309.7 352.6 352.6 360.3 372.6 379.9 390.3 400.4 414.5 14 Commercial 747.8 802.0 873.5 1,025.6 1,025.6 1,051.7 1,079.4 1,102.7 1,130.6 1,152.3 1,188.3 15 Farm 86.9 90.0 96.6 102.3 102.3 104.2 106.8 108.3 109.3 110.4 112.7 16 Consumer credit 1,211.6 1,264.1 1,331.7 1,426.2 1,426.2 1,416.0 1,454.0 1,495.3 1,566.5 1,558.6 1,581.1 By borrowing sector 17 Households 5,218.6 5,540.9 5,995.1 6,501.7 6,501.7 6,566.0 6,727.4 6,890.5 7,063.8 7,133.7 7,307.6 18 Nonfinancial business 4,376.8 4,778.2 5,319.9 5,964.7 5,964.7 6,152.2 6,350.7 6,444.3 6,559.4 6,680.2 6,810.2 19 Corporate 3,097.3 3,396.9 3,791.6 4,275.2 4,275.2 4,427.2 4,574.2 4,634.8 4,712.7 4,803.3 4,897.5 20 Nonfarm noncorporate 1,129.8 1,225.5 1,364.4 1,520.1 1,520.1 1,554.3 1,600.3 1,631.5 1,666.1 1,696.7 1,727.9 21 Farm 149.7 155.9 163.9 169.4 169.4 170.7 176.2 177.9 180.7 180.2 184.8 22 State and local government 1,063.4 1,119.5 1,199.8 1,252.1 1,252.1 1,257.3 1,265.7 1,263.1 1,279.3 1,306.5 1,337.3 23 Foreign credit market debt held in United States 542.2 608.0 651.5 679.6 679.6 707.1 716.4 749.9 775.8 776.5 776.3 24 Commercial paper 67.5 65.1 72.9 89.2 89.2 101.6 101.2 109.8 120.9 112.8 110.1 25 Bonds 366.3 427.7 462.6 479.4 479.4 490.6 498.4 521.3 533.7 542.0 551.0 26 Bank loans n.e.c 43.7 52.1 58.9 59.4 59.4 63.3 64.7 67.7 70.7 73.9 67.2 27 Other loans and advances 64.7 63.0 57.2 51.7 51.7 51.7 52.1 51.2 50.5 47.7 47.9 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,982.7 15,851.5 16,918.5 18,079.2 18,079.2 18,336.1 18,524.2 18,757.9 19,063.5 19,305.8 19,492.8 Financial sectors 29 Total credit market debt owed by financial sectors 4,824.5 5,445.2 6,519.1 7,596.3 7,596.3 7,734.2 7,955.4 8,148.7 8,418.4 8,626.0 8,816.7 By instrument 30 Federal government-related 2,608.2 2,821.1 3,292.0 3,884.0 3,884.0 3,940.1 4,035.3 4,164.0 4,317.4 4,425.6 4,593.4 31 Government-sponsored enterprise securities . . . 896.9 995.3 1,273.6 1,591.7 1,591.7 1,618.0 1,680.2 1,749.7 1,825.8 1,891.4 1,957.6 32 Mortgage pool securities 1,711.3 1,825.8 2,018.4 2,292.2 2,292.2 2,322.1 2,355.2 2,414.3 2,491.6 2,534.2 2,635.8 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 3,227.0 3,712.4 3,712.4 3,794.2 3,920.1 3,984.6 4,101.0 4,200.4 4,223.3 35 Open market paper 579.1 745.7 906.7 1,082.9 1,082.9 1,115.7 1,135.2 1,151.6 1,210.7 1,180.8 1,144.5 36 Corporate bonds 1,378.4 1,555.9 1,852.8 2,064.0 2,064.0 2,104.2 2,173.5 2,228.0 2,276.5 2,390.5 2,442.7 37 Bank loans n.e.c 64.0 77.2 107.2 92.9 92.9 91.4 93.6 92.5 92.6 97.1 100.3 38 Other loans and advances 162.9 198.5 288.7 395.8 395.8 404.4 436.9 430.2 438.3 450.9 450.7 39 Mortgages 31.9 46.8 71.6 76.7 76.7 78.5 81.0 82.5 82.9 81.1 85.1 By borrowing sector 40 Commercial banks 113.6 140.6 188.6 230.0 230.0 242.2 265.4 265.2 266.7 273.8 274.7 41 Bank holding companies 150.0 168.6 193.5 219.3 219.3 221.4 229.3 236.9 242.5 266.5 269.1 42 Savings institutions 140.5 160.3 212.4 260.4 260.4 266.9 280.7 276.0 287.7 295.1 294.5 43 Credit unions .4 .6 1.1 3.4 3.4 2.6 2.9 3.1 3.4 3.2 3.5 44 Life insurance companies 1.6 1.8 2.5 3.2 3.2 3.0 2.7 2.7 2.5 1.9 1.9 45 Government-sponsored enterprises 896.9 995.3 1,273.6 1,591.7 1,591.7 1,618.0 1.680.2 1,749.7 1,825.8 1,891.4 1,957.6 46 Federally related mortgage pools 1,711.3 1,825.8 2,018.4 2,292.2 2,292.2 2,322.1 2,355.2 2,414.3 2,491.6 2,534.2 2,635.8 47 Issuers of asset-backed securities (ABSs) 863.3 1,076.6 1,398.0 1,621.4 1,621.4 1,655.8 1,697.0 1,742.3 1,829.6 1,892.2 1,940.8 48 Brokers and dealers 27.3 35.3 42.5 25.3 25.3 36.4 36.2 42.6 40.9 35.0 43.9 49 Finance companies 529.8 554.5 597.5 659.9 659.9 670.7 712.7 716.5 734.6 721.4 727.1 50 Mortgage companies 20.6 16.0 17.7 17.8 17.8 17.1 17.8 17.7 17.9 18.1 18.2 51 Real estate investment trusts (REITs) 56.5 96.1 158.8 165.1 165.1 167.9 170.4 169.8 167.8 166.2 166.8 52 Funding corporations 312.7 373.7 414.4 506.6 506.6 510.1 505.1 511.9 507.3 526.9 482.9 All sectors 53 Total credit market debt, domestic and foreign . 19,807.2 21,296.7 23,437.6 25,675.5 25,675.5 26,070.3 26,479.6 26,906.6 27,481.9 27,931.7 28,309.5 54 Open market paper 803.0 979.4 1,172.6 1,402.4 1,402.4 1,478.1 1,533.3 1,568.3 1,610.0 1,546.8 1,477.9 55 U.S. government securities 6,389.9 6,626.0 7,044.3 7,565.0 7,565.0 7,593.6 7,499.3 7,574.2 7,702.6 7,834.4 7,854.8 56 Municipal securities 1,296.0 1,367.5 1,464.3 1,532.5 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 1,596.6 1,629.3 57 Corporate and foreign bonds 3,205.1 3,594.5 4,144.9 4,602.8 4,602.8 4,700.8 4,816.3 4,939.8 5,044.6 5,267.9 5,435.1 58 Bank loans n.e.c 1,041.7 1,169.8 1,314.9 1,383.8 1,383.8 1,413.7 1,464.6 1,471.7 1,497.9 1,495.1 1,462.9 59 Other loans and advances 998.0 1,101.0 1,259.6 1,422.1 1,422.1 1,476.2 1,538.5 1,533.6 1,578.6 1,594.6 1,618.1 60 Mortgages 4,861.9 5,194.4 5,705.3 6,340.7 6,340.7 6,452.7 6,622.0 6,773.4 6.913.9 7,037.8 7,250.4 61 Consumer credit 1,211.6 1,264.1 1,331.7 1,426.2 1,426.2 1,416.0 1,454.0 1,495.3 1.566.5 1,558.6 1,581.1 1. Data in this table appear in the Board's Z.l (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A3 9 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 1999 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999966 11999977 11999988 11999999 Q4 Ql Q2 Q3 Q4 Ql Q2 Credit Market Debt Outstanding2 1 Total credit market assets 19,807.2 21,296.7 23,437.6 25,675.5 25,675.5 26,070.3 26,479.6 26,906.6 27,481.9 27,931.7 28,309.5 7 Domestic nonfederal nonfinancial sectors 3,007.3 2,933.8 2,991.8 3,251.2 3,251.2 3,170.5 3,184.6 3,125.5 3,093.8 3,009.6 2,975.0 Household 2,082.5 2,018.6 1,941.8 2,151.6 2,151.6 2,079.2 2,065.0 2,021.3 1,977.3 1,907.4 1,887.4 4 Nonfinancial corporate business 270.2 257.5 241.5 238.7 238.7 230.8 246.2 238.9 248.5 235.1 225.1 5 Nonfarm noncorporate business 49.7 52.7 69.1 78.0 78.0 77.5 77.6 76.6 75.9 74.7 73.4 6 State and local governments 604.8 605.0 739.4 782.8 782.8 782.9 795.8 788.7 792.0 792.4 789.1 7 Federal government 200.2 205.4 219.1 258.0 258.0 259.6 261.6 262.7 265.4 266.6 268.9 8 Rest of the world 1,926.6 2,257.3 2,539.8 2,676.2 2,676.2 2,760.7 2,809.9 2,861.7 3,004.6 3,112.9 3,198.9 9 Financial sectors 14,673.2 15,900.1 17,686.8 19,490.2 19,490.2 19,879.5 20,223.5 20,656.7 21,118.1 21,542.6 21,866.6 10 Monetary authority 393.1 431.4 452.5 478.1 478.1 501.9 505.1 511.5 511.8 523.9 535.1 11 Commercial banking 3,707.7 4,031.9 4,335.7 4,643.9 4,643.9 4,725.0 4,847.4 4,931.0 5,002.3 5,015.7 5,050.6 12 U.S.-chartered banks 3,175.8 3,450.7 3,761.2 4,078.9 4,078.9 4,171.3 4,295.4 4,368.2 4,418.7 4,424.4 4,463.2 H Foreign banking offices in United States 475.8 516.1 504.2 484.1 484.1 482.0 478.1 487.5 508.1 515.0 510.7 14 Bank holding companies 22.0 27.4 26.5 32.7 32.7 22.1 23.0 21.3 20.5 22.3 21.6 15 Banks in U.S.-affiliated areas 34.1 37.8 43.8 48.3 48.3 49.6 51.0 54.0 55.0 54.1 55.1 16 Savings institutions 933.2 928.5 964.6 1,033.2 1,033.2 1,045.8 1,062.5 1,082.2 1,089.7 1,101.6 1,116.1 17 Credit unions 288.5 305.3 324.2 351.7 351.7 359.0 370.1 376.0 382.2 381.7 391.2 18 Bank personal trusts and estates 232.0 207.0 194.1 222.0 222.0 226.7 230.2 234.6 239.1 241.8 245.1 19 Life insurance companies 1,657.0 1,751.1 1,828.0 1,886.0 1,886.0 1,902.2 1,914.1 1,935.1 1,943.9 1,967.2 1,991.0 20 Other insurance companies 491.2 515.3 521.1 518.2 518.2 515.4 510.8 512.4 509.4 510.0 510.7 21 Private pension funds 627.0 674.6 731.0 775.9 775.9 787.6 793.8 810.0 817.2 823.7 828.8 77 State and local government retirement funds 565.4 632.5 704.6 751.4 751.4 767.2 775.1 784.5 801.0 804.3 808.8 7.3 Money market mutual funds 634.3 721.9 965.9 1,147.8 1,147.8 1,217.1 1,159.4 1,212.5 1,296.7 1,403.8 1,414.6 74 Mutual funds 820.2 901.1 1,025.9 1,073.1 1,073.1 1,053.7 1,073.9 1,088.5 1,099.9 1,113.8 1,151.5 75 Closed-end funds 100.8 98.3 103.7 111.1 111.1 109.0 106.9 104.8 102.7 100.6 98.5 26 Government-sponsored enterprises 832.8 939.4 1,253.9 1,545.6 1,545.6 1,584.0 1,649.2 1,704.3 1,793.7 1,866.5 1,944.5 27 Federally related mortgage pools 1,711.3 1,825.8 2,018.4 2,292.2 2,292.2 2,322.1 2,355.2 2,414.3 2,491.6 2,534.2 2,635.8 78 Asset-backed securities (ABSs) issuers 773.9 937.7 1,219.4 1,424.6 1,424.6 1,453.8 1,486.3 1,522.9 1,602.9 1,660.5 1,706.0 79 Finance companies 544.5 566.4 618.4 713.3 713.3 747.0 780.6 795.5 812.6 809.4 829.6 30 Mortgage companies 41.2 32.1 35.3 35.6 35.6 34.1 35.5 35.4 35.9 36.2 36.5 31 Real estate investment trusts (REITs) 30.4 50.6 45.5 42.9 42.9 38.8 38.2 37.3 36.6 37.6 37.9 37 Brokers and dealers 167.7 182.6 189.4 154.7 154.7 194.6 187.9 243.3 223.6 317.7 288.4 33 Funding corporations 121.0 166.7 155.3 288.8 288.8 294.5 341.3 320.7 325.4 292.3 246.0 Relation of Liabilities to Financial Assets 34 Total credit market debt 19,807.2 21,296.7 23,437.6 25,675.5 25,675.5 26,070.3 26,479.6 26,906.6 27,481.9 27,931.7 28,309.5 Other liabi/ities 35 Official foreign exchange 53.7 48.9 60.1 50.1 50.1 49.4 46.5 44.9 46.0 43.3 41.7 36 Special drawing rights certificates 9.7 9.2 9.2 6.2 6.2 6.2 4.2 3.2 2.2 2.2 2.2 37 Treasury currency 18.9 19.3 19.9 20.9 20.9 21.4 22.1 23.2 23.2 22.9 23.2 38 Foreign deposits 521.7 618.5 642.3 703.6 703.6 781.9 782.8 772.6 824.5 883.4 846.8 39 Net interbank liabilities 240.8 219.4 189.0 204.5 204.5 169.7 210.6 173.2 188.0 116.0 163.4 40 Checkable deposits and currency 1,244.8 1,286.1 1,333.4 1,484.8 1,484.8 1,392.9 1,409.7 1,385.7 1,413.3 1,385.2 1,416.8 41 Small time and savings deposits 2,377.0 2,474.1 2,626.5 2,671.2 2,671.2 2,728.0 2,738.8 2,790.9 2,861.9 2,965.3 2,992.0 47. Large time deposits 590.9 713.4 805.5 936.1 936.1 966.5 987.4 1,025.9 1,054.5 1,078.0 1,090.6 43 Money market fund shares 886.7 1,042.5 1,329.7 1,578.8 1,578.8 1,666.0 1,627.1 1,697.8 1,812.1 1,994.7 2,014.8 44 Security repurchase agreements 701.5 822.4 913.7 1,083.4 1,083.4 1,149.2 1,185.0 1,238.7 1,194.3 1,206.0 1,241.1 45 Mutual fund shares 2,342.4 2,989.4 3,610.5 4,553.4 4,553.4 4,863.3 4,759.6 4,814.4 4,457.2 3,999.8 4,269.9 46 Security credit 358.1 469.1 572.3 676.6 676.6 795.4 775.5 800.4 817.6 799.4 781.8 47 Life insurance reserves 610.6 665.0 718.3 783.9 783.9 801.0 806.5 818.7 819.1 823.0 844.6 48 Pension fund reserves 6,325.1 7,323.4 8,193.7 9,041.7 9,041.7 9,237.9 9,166.7 9,307.9 9,054.8 8,603.5 8,885.5 49 Trade payables 1,827.6 1,967.3 2,076.5 2,298.8 2,298.8 2,321.7 2,366.9 2,412.0 2,455.2 2,425.2 2,418.3 50 Taxes payable 128.8 151.1 172.4 194.7 194.7 210.1 212.7 214.8 216.4 224.2 219.8 51 Investment in bank personal trusts 871.3 942.5 1,001.0 1,130.4 1,130.4 1,158.0 1,114.4 1,106.7 1,019.4 929.1 964.4 52 Miscellaneous 6,386.0 6,727.4 7,475.3 8,040.5 8,040.5 8,258.1 8,539.8 8,998.1 8,845.1 9,253.4 9,506.9 5533 Total liabilities 4455,,330022..77 4499,,778855..55 5555,,118866..99 6611,,113355..11 6611,,113355..11 6622,,664466..99 63,236.0 6644,,553355..77 6644,,558866..88 6644,,668866..33 6666,,003333..33 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.4 21.1 21.6 21.4 21.4 21.4 21.5 21.4 21.5 21.5 21.6 55 Corporate equities 10,255.8 13,202.0 15,492.5 19,494.5 19,494.5 20,147.0 19,180.8 18,991.5 17,068.8 14,920.9 15,863.6 56 Household equity in noncorporate business 3,787.8 4,053.2 4,398.7 4,649.9 4,649.9 4,675.4 4,772.2 4,815.5 4,884.7 4,929.1 4,941.8 Liabilities not identified as assets (-) 57 Treasury currency -6.1 -6.3 -6.4 -7.1 -7.1 -7.6 -7.9 -7.6 -8.5 -9.4 -9.4 58 Foreign deposits 437.0 537.1 544.9 591.1 591.1 656.7 636.3 611.5 659.9 704.4 677.4 59 Net interbank transactions -10.6 -32.2 -27.0 -25.5 -25.5 -13.9 -11.6 -17.6 -4.3 1.7 5.3 60 Security repurchase agreements 109.8 172.9 233.5 263.6 263.6 410.3 422.8 446.0 374.4 357.6 387.5 61 Taxes payable 81.9 104.2 122.9 122.7 122.7 118.6 135.8 124.4 128.5 112.7 129.0 62 Miscellaneous -1,241.1 -1,562.1 -2,307.3 -2,792.5 -2,792.5 -2,948.5 -3,009.7 -2,818.5 -3,371.8 -3,314.7 -3,222.6 Floats not included in assets (-) 63 Federal government checkable deposits -1.6 -8.1 -3.9 -9.9 -9.9 -6.5 -5.2 -7.8 -2.6 -21.9 -40.6 64 Other checkable deposits 30.1 26.2 23.1 22.3 22.3 18.7 22.5 15.5 24.0 21.1 25.5 65 Trade credit 165.7 126.8 76.6 120.9 120.9 50.1 12.8 2.5 88.7 42.1 16.0 66 Totals identified to sectors as assets 59,802.7 67,703.2 76,443.0 87,015.2 87,015.2 89,212.6 89,014.9 90,015.7 88,673.3 86,664.0 88,892.3 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 • December 2001 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2001 MMeeaassuurree 11999988 11999999 22000000 Jan. Feb. Mar. Apr. May June July Aug. Sept.P 1 Industrial production1 134.0 139.6 147.5 146.0 145.4 145.0 144.6 144.2 142.8r 142.7r 141.8 140.3 Market groups 2 Products, total 127.2 131.2 136.2 135.0 134.6 134.5 133.8 133.7 132.4' 132.5 131.3 129.9 i Final, total 129.3 133.3 138.8 137.8 137.7 137.9 137.2 136.9 135.4' 135.6' 134.3 132.8 4 Consumer goods 118.4 120.8 123.0 121.8 122.3 122.4 122.1 122.2 121.6 121.9' 120.9 120.1 5 Equipment 147.1 153.8 166.1 168.0 166.2 166.8 165.3 164.1 160.6' 160.4' 158.6 155.5 6 Intermediate 121.0 125.1 128.7 126.7 125.5 124.4 123.7 124.0 123.4' 123.1' 122.4 121.0 7 Materials 145.7 154.5 167.8 165.9 165.0 163.9 164.1 163.3 161.4' 161.1' 160.5 159.2 Industry groups 8 Manufacturing 138.2 144.8 153.6 151.3 150.7 150.0 149.6 149.2 147.5' 147.6' 146.3 144.7 9 Capacity utilization, manufacturing (percent)2 . . 81.3 80.5 81.3 78.4 77.9 77.3 76.9 76.6 75.6 75.5 74.8 73.8 10 Construction contracts3 104.4r 114.9r 129.5r 139 .a 143.0r 139.0r 131.0' Bexy 133.0' 136.0' 132.0 142.0 1112 N onagricultural employment, total4 115.9 118.6 121.0 122.0 122.1 122.2 122.0 122.0 122.0 122.0 121.9 121.7 Goods-producing, total 109.4 109.7 110.5 110.3 110.3 110.2 109.4 109.0 108.4 108.1 107.5 107.1 13 Manufacturing, total 103.9 102.4 101.8 100.8 100.5 100.1 99.5 98.7 98.1 97.7 96.9 96.4 14 Manufacturing, production workers 105.4 103.7 102.9 100.9 100.3 99.7 99.0 98.2 97.3 96.8 95.9 95.2 15 Service-producing 117.7 121.0 123.9 125.1 125.3 125.4 125.4 125.6 125.6 125.7 125.8 125.7 16 Personal income, total 137.8 144.3 154.3 159.6 160.3 161.0 161.3 161.6 162.1 162.9 162.9 n.a. 17 Wages and salary disbursements 140.6 149.9 162.2 168.4 169.4 170.1 170.8 170.7 171.5 172.1 171.9 n.a. 18 Manufacturing 129.7 134.0 142.3 146.1 146.3 146.3 146.8 145.4 144.9 145.4 144,7 n.a. 19 Disposable personal income5 133.7 139.2 147.9 152.8 153.4 154.1 154.5 154.8 155.2 158.0 160.9 n.a. 20 Retail sales5 142.8 155.1 167.0 170.1 170.4 169.6 172.2 172.4 172.3 172.6' 173.2 169.6 Prices6 21 Consumer (1982-84=100) 163.0 166.6 172.2 175.1 175.8 176.2 176.9 177.7 178.0 177.5 177.5 178.3 22 Producer finished goods (1982-100) 130.7 133.0 138.0 141.2 141.4 140.9 141.8 142.7' 142.1 140.7 141.1 141.7 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," Fedaral 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 2. Ratio of index of production to index of capacity. Based on data from the Federal series 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 2001 CCaatteeggoorryy 11999988 11999999 22000000 Feb. Mar. Apr. May June July' Aug. Sept.P HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 137,673 139,368 140,863 141,751 141,868 141,757 141,272 141,354 141,774 141,350 142,190 Employment 2 Nonagricultural industries3 128,085 130,207 131,903 132,680 132,618 132,162 131,910 131,937 132,334 131,276 131,961 3 Agriculture 3,378 3,281 3,305 3,135 3,161 3,192 3,193 2,995 3,045 3,117 3,220 Unemployment 4 Number 6,210 5,880 5,655 5,936 6,088 6,402 6,169 6,422 6,395 6,957 7,009 5 Rate (percent of civilian labor force) 4.5 4.2 4.0 4.2 4.3 4.5 4.4 4.5 4.5 4.9 4.9 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 125,865 128,786 131,417 132,595 132,654 132,489 132,530 132,431 132,449 132,365 132,166 7 Manufacturing 18,805 18,543 18,437 18,192 18,116 18,009 17,879 17,757 17,688 17,542 17,449 8 Mining 590 535 538 555 557 560 564 565 567 569 569 9 Contract construction 6,020 6,404 6,687 6,880 6,929 6,852 6,881 6,864 6,867 6,863 6,859 10 Transportation and public utilities 6,611 6,826 6,993 7,123 7,127 7,119 7,130 7,118 7,108 7,076 7,069 11 Trade 29,095 29,712 30,191 30,536 30,523 30,583 30,584 30,583 30,623 30,585 30,520 12 Finance 7,389 7,569 7,618 7,609 7,618 7,626 7,644 7,631 7,618 7,621 7,635 13 Service 37,533 39,027 40,384 41,020 41,073 40,993 41,078 41,085 41,046 41,117 41,076 14 Government 19,823 20,170 20,570 20,680 20,711 20,747 20,770 20,828 20,932 20,992 20,989 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 Q4 Qi Q2' Q3 Q4 Ql Q2 Q3 Q4 Ql Q2' Q3 Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 148.1 145.5 143.9 141.6 182.1 183.7 184.9 185.7 81.3 79.2 77.8 76.3 2 Manufacturing 153.8 150.7 148.7 146.2 191.5 193.5 194.8 195.7 80.3 77.9 76.4 74.7 3 Primary processing3 178.7 172.6 170.3 167.5 216.0 220.0 222.4 223.8 82.7 78.4 76.6 74.8 4 Advanced processing4 140.2 138.5 136.8 134.4 176.2 177.2 178.0 178.7 79.5 78.2 76.9 75.2 Durable goods 196.5 191.6 189.1 185.3 243.6 248.1 251.2 253.4 80.7 77.2 75.3 73.1 6 Lumber and products 113.2 109.6 112.9 115.1 148.4 148.7 149.0 149.1 76.3 73.7 75.8 77.2 7 Primary metals 127.5 121.1 122.2 120.1 153.5 153.5 153.5 153.3 83.1 78.8 79.6 78.3 8 Iron and steel 121.5 114.9 120.9 119.8 153.6 153.6 153.2 152.6 79.1 74.8 78.9 78.5 9 Nonferrous 134.7 128.3 124.0 120.7 153.4 153.5 153.8 154.2 87.8 83.6 80.7 78.3 10 Industrial machinery and equipment 261.9 256.3 245.7 235.6 317.3 322.5 326.5 330.0 82.5 79.5 75.3 71.4 11 Electrical machinery 604.0 593.0 562.6 535.8 694.1 741.7 773.0 793.0 87.1 80.0 72.8 67.6 12 Motor vehicles and parts 159.7 147.5 159.7 163.0 210.1 210.9 211.7 212.4 76.0 69.9 75.4 76.8 13 Aerospace and miscellaneous transportation equipment . . 94.8 94.1 93.2 91.6 130.2 130.0 130.1 130.3 72.8 72.3 71.7 70.3 14 Nondurable goods 115.3 113.6 112.2 110.6 144.6 144.7 144.6 144.6 79.7 78.5 77.6 76.5 15 Textile mill products 94.7 92.7 88.6 85.3 122.8 122.0 120.9 119.7 77.1 76.0 73.3 71.3 16 Paper and products 114.9 110.8 111.1 109.0 137.9 138.3 138.6 138.9 83.3 80.1 80.2 78.5 17 Chemicals and products 124.5 121.9 119.9 119.2 164.8 165.0 165.0 164.9 75.5 73.8 72.7 72.3 18 Plastics materials 131.0 130.9 132.4 139.9 152.3 152.7 153.2 153.7 86.0 85.7 86.5 91.0 19 Petroleum products 116.0 115.5 116.5 114.0 123.1 123.1 123.3 123.5 94.3 93.8 94.5 92.3 20 Mining 100.3 101.7 103.6 102.2 115.8 115.3 114.9 114.6 86.6 88.2 90.1 89.2 21 Utilities 123.7 122.6 120.1 119.8 134.5 135.7 137.0 138.5 92.0 90.4 87.7 86.5 22 Electric 127.5 125.4 125.5 124.2 133.8 135.3 136.8 138.3 95.3 92.7 91.8 89.8 1973 1975 Previous cycle5 Latest cycle6 2000 2001 High Low High Low High Low Sept. Apr. May June' July' Aug.' Sept.P Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 82.4 78.4 78.0 77.1 77.0 76.4 75.5 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 81.7 76.9 76.6 75.6 75.5 74.8 73.8 3 Primary processing3 91.2 68.2 88.1 66.2 88.9 77.7 85.2 77.2 76.7 75.8 75.6 74.8 74.0 4 Advanced processing4 87.2 71.8 86.7 70.4 84.2 76.1 80.2 77.4 77.2 76.1 76.0 75.3 74.3 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 82.7 76.0 75.7 74.2 74.2 73.3 71.8 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 78.9 74.5 76.5 76.4 76.9 77.0 77.6 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 87.3 79.7 79.8 79.4 79.8 78.7 76.5 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 86.0 77.2 79.6 79.9 80.5 78.9 76.1 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 89.0 82.8 80.3 78.9 79.1 78.6 77.1 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 83.1 77.2 75.4 73.2 72.5 72.0 69.7 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 90.2 74.5 73.1 70.7 68.6 67.9 66.2 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 83.8 73.5 77.0 75.8 79.4 76.9 74.0 13 Aerospace and miscellaneous transportation equipment .. . 78.4 67.6 81.9 66.6 87.3 79.2 70.7 72.3 71.7 71.0 71.0 70.2 69.7 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.3 78.0 77.6 77.1 77.0 76.4 76.2 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 79.9 74.8 72.3 72.8 70.2 72.0 71.6 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 82.6 82.1 80.0 78.4 79.1 78.1 78.3 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 76.3 72.8 72.8 72.4 72.5 72.2 72.2 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 89.8 82.7 84.2 92.5 93.5 89.4 90.2 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 95.4 94.7 94.3 94.6 93.7 92.0 91.2 20 Mining 94.3 88.2 96.0 80.3 88.0 87.0 86.4 90.0 90.3 90.0 89.2 89.0 89.3 21 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 91.0 88.5 87.2 87.2 86.3 87.6 85.7 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 93.9 93.4 91.4 90.6 89.4 91.4 88.6 1. Data in this table also appear in the Board's G.17 (419) monthly statistical release. The 3. Primary processing includes textiles; lumber; paper; industrial chemicals; synthetic data are also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. materials; fertilizer materials; petroleum products; rubber and plastics; stone, clay, and glass; The latest historical revision of the industrial production index and the capacity utilization primary metals; and fabricated metals. rates was released in December 2000. The recent annual revision is described in an article in 4. Advanced processing includes foods, tobacco, apparel, furniture and fixtures, printing the 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 turing. 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 • December 2001 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2000 2001 „ oup pro- 2000 por- avg. tion Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Juner July' Aug.' Sept." Index(1992= 100) MAJOR MARKETS 1 Total index 100.0 147.5 149.0 148.7 148.2 147.3 146.0 145.4 145.0 144.6 144.2 142.8 142.7 141.8 140.3 2 Products 60.5 136.2 136.7 136.3 136.3 136.0 135.0 134.6 134.5 133.8 133.7 132.4 132.5 131.3 129.9 3 Final products 46.3 138.8 139.3 138.8 138.8 139.0 137.8 137.7 137.9 137.2 136.9 135.4 135.6 134.3 132.8 4 Consumer goods, total 29.1 123.0 123.8 122.7 122.4 123.1 121.8 122.3 122.4 122.1 122.2 121.6 121.9 120.9 120.1 S Durable consumer goods 6.1 160.8 162.8 157.3 154.3 153.4 148.9 150.8 153.6 152.9 155.6 154.1 157.5 154.3 151.2 6 Automotive products 2.6 153.2 156.7 148.0 143.6 140.7 133.8 138.2 145.4 145.1 148.7 148.0 156.9 151.7 147.5 7 Autos and trucks 1.7 166.9 172.7 159.1 153.0 144.1 136.2 143.5 154.9 154.9 162.2 158.9 175.1 165.6 159.2 8 Autos, consumer .9 114.0 120.5 107.8 103.0 94.3 99.4 100.3 104.0 102.7 105.2 104.0 102.6 94.4 96.6 9 Trucks, consumer .7 221.6 227.1 212.0 204.3 194.7 175.5 188.6 207.1 208.2 219.9 214.6 246.0 234.8 221.1 10 Auto parts and allied goods .9 131.7 132.1 130.2 128.2 133.8 128.4 128.7 130.1 129.2 127.7 130.7 129.3 130.1 128.9 11 Other 3.5 167.1 167.7 165.4 163.7 164.7 162.7 162.2 160.5 159.5 161.3 159.0 156.8 155.7 153.7 12 Appliances, televisions, and air conditioners 1.0 332.6 340.5 332.5 332.7 341.7 332.0 322.5 317.1 316.0 328.0 314.5 301.8 316.9 315.7 13 Carpeting and furniture .8 129.7 131.9 129.8 125.4 127.4 123.9 128.2 127.1 124.0 123.7 124.6 122.3 120.3 118.6 14 Miscellaneous home goods 1.6 120.4 118.1 117.5 117.1 115.5 116.5 115.4 114.7 115.0 115.3 114.1 115.0 110.9 108.7 15 Nondurable consumer goods 23.0 114.2 114.7 114.5 114.6 115.7 114.9 115.3 114.8 114.6 114.2 113.8 113.5 112.9 112.5 16 Foods and tobacco 10.3 110.7 110.5 110.4 110.7 110.1 110.3 110.7 110.1 110.2 109.7 109.8 109.4 108.4 108.2 17 Clothing 2.4 85.0 83.1 82.7 83.2 82.4 82.6 82.8 82.2 81.2 79.8 76.9 77.1 74.9 73.5 18 Chemical products 4.5 137.0 138.4 139.0 138.5 139.0 139.1 141.5 141.5 140.9 143.0 141.4 141.3 141.4 140.8 19 Paper products 2.9 111.1 112.4 113.8 112.5 112.2 113.7 111.1 110.9 111.5 110.7 110.5 110.4 109.6 110.1 20 Energy 2.9 116.3 118.4 115.5 117.3 126.1 119.0 119.2 118.6 117.5 115.2 115.8 115.1 116.1 115.3 21 Fuels .8 113.0 115.8 113.0 115.5 112.3 112.0 114.7 113.7 114.7 115.6 115.2 114.7 111.9 111.6 22 Residential utilities 2.1 117.9 119.1 116.2 117.6 134.5 122.8 121.3 121.0 118.5 113.9 115.3 114.5 118.0 116.9 23 Equipment 17.2 166.1 168.3 169.1 169.9 168.9 168.0 166.2 166.8 165.3 164.1 160.6 160.4 158.6 155.5 24 Business equipment 13.2 194.2 199.5 200.0 200.6 199.2 197.4 195.3 195.6 193.3 191.9 187.1 186.7 184.8 180.5 25 Information processing 5.4 312.2 327.2 332.3 336.7 335.9 337.4 330.6 327.7 326.7 324.3 315.8 310.9 310.8 306.3 26 Computer and office equipment 1.1 1,157.6 1,264.1 1,286.4 1,305.0 1,318.3 1,310.6 1,307.0 1,304.4 1,295.9 1,269.7 1,248.6 1,238.4 1,232.5 1,201.7 27 Industrial 4.0 144.6 146.5 146.9 147.4 145.8 145.7 141.4 142.3 139.7 138.0 132.7 131.9 130.5 127.8 28 Transit 2.5 127.7 127.7 121.6 121.8 117.4 111.7 114.4 117.8 116.3 117.5 116.4 118.8 115.5 112.6 29 Autos and trucks 1.2 145.6 144.2 131.4 130.4 122.0 115.6 120.9 129.0 126.6 131.7 129.9 135.5 128.3 123.2 30 Other 1.3 145.7 149.3 154.2 148.6 153.5 149.3 153.9 151.2 147.6 144.6 143.3 146.5 144.1 135.8 31 Defense and space equipment 3.3 76.2 73.7 75.3 77.0 77.5 78.5 76.7 77.7 78.0 76.8 76.4 77.4 76.2 76.3 32 Oil and gas well drilling .6 131.8 132.8 136.5 138.9 139.1 146.7 147.9 150.7 151.2 152.2 150.4 147.7 143.0 139.3 33 Manufactured homes .2 116.2 109.3 98.8 90.9 83.5 73.5 81.9 83.2 85.2 89.3 94.1 92.6 93.3 95.0 34 Intermediate products, total 14.2 128.7 128.6 128.7 128.5 126.8 126.7 125.5 124.4 123.7 124.0 123.4 123.1 122.4 121.0 35 Construction supplies 5.3 143.2 143.1 142.3 141.6 140.6 140.7 139.9 140.5 139.6 139.3 139.0 139.0 138.5 137.6 36 Business supplies 8.9 120.1 120.0 120.7 120.7 118.5 118.4 117.0 114.9 114.3 114.9 114.3 113.7 113.0 111.3 37 Materials 39.5 167.8 171.3 171.1 169.9 167.8 165.9 165.0 163.9 164.1 163.3 161.4 161.1 160.5 159.2 38 Durable goods materials 20.8 227.6 235.7 235.0 232.9 230.3 226.6 225.2 223.6 223.0 223.6 220.3 220.2 218.7 215.3 39 Durable consumer parts 4.0 165.3 169.0 168.5 161.8 157.6 146.1 149.9 153.1 153.6 158.2 155.9 158.0 157.3 152.4 40 Equipment parts 7.6 478.3 512.1 515.9 521.4 522.3 517.5 514.9 508.2 498.3 493.7 483.1 479.4 475.1 468.6 41 Other 9.2 134.6 135.5 133.7 131.8 129.6 130.1 127.2 125.5 126.9 127.0 126.0 125.8 125.1 123.9 42 Basic metal materials 3.1 128.7 129.2 125.9 124.4 123.6 121.2 118.3 114.5 118.2 117.9 117.7 118.0 116.4 113.6 43 Nondurable goods materials 8.9 113.8 112.7 113.4 110.7 108.6 107.5 107.2 104.6 105.2 103.1 102.5 102.5 102.2 102.1 44 Textile materials 1.1 97.9 95.9 94.0 89.5 90.3 91.0 87.7 87.4 86.3 83.7 83.4 79.7 82.5 81.9 45 Paper materials 1.8 115.8 113.8 117.2 113.4 109.4 110.3 112.4 105.9 111.3 108.5 104.8 107.2 108.4 108.5 46 Chemical materials 3.9 117.0 116.3 115.9 113.7 109.8 108.5 108.2 105.9 104.1 102.2 103.0 102.2 101.1 101.2 47 Other 2.1 113.0 112.0 114.0 111.9 113.9 111.0 110.2 109.1 112.2 110.2 108.8 110.2 109.4 109.0 48 Energy materials 9.7 103.4 104.3 103.9 105.4 104.5 104.4 103.9 104.9 105.8 104.8 103.8 103.2 103.5 103.6 49 Primary energy 6.3 98.1 98.5 97.8 99.3 98.6 100.3 99.3 100.4 101.2 100.5 100.8 100.0 100.3 100.6 50 Converted fuel materials 3.3 114.3 116.6 117.2 118.7 117.3 111.8 113.1 113.7 114.7 112.6 108.1 107.6 108.0 107.9 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 147.2 148.7 148.8 148.4 147.8 146.6 145.9 145.1 144.7 144.2 142.7 142.3 141.6 140.3 52 Total excluding motor vehicles and parts 95.1 146.3 147.7 147.8 147.7 147.2 146.5 145.4 144.5 144.1 143.4 141.9 141.4 140.7 139.5 53 Total excluding computer and office equipment 98.2 140.4 141.6 141.2 140.8 139.9 138.6 138.1 137.7 137.3 137.0 135.7 135.6 134.7 133.4 54 Consumer goods excluding autos and trucks . . 27.4 120.6 121.2 120.7 120.6 121.9 120.8 121.1 120.6 120.3 120.0 119.5 119.1 118.5 117.9 55 Consumer goods excluding energy 26.2 123.9 124.4 123.6 122.9 122.5 122.0 122.6 122.8 122.6 123.0 122.2 122.7 121.4 120.6 56 Business equipment excluding autos and trucks 12.0 200.1 206.3 208.5 209.4 208.9 207.7 204.6 203.8 201.6 199.3 194.1 192.9 191.8 187.6 57 Business equipment excluding computer and office equipment 12.1 158.4 161.2 161.2 161.5 159.9 158.4 156.5 156.8 154.9 154.1 150.0 149.8 148.2 144.8 58 Materials excluding energy 29.8 188.5 193.0 192.8 190.4 187.8 185.1 184.1 182.0 181.9 181.3 179.1 179.0 178.0 175.9 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Monthly data seasonally adjusted 1992 2000 2001 GGrroouupp c S o I d C e2 p po ro r- - 2 aa 0 vv 0 gg 0 .. tion Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June1 July' Aug.' Sept.? Index (1992= 100) MAJOR INDUSTRIES 59 Total index 100.0 147.5 149.0 148.7 148.2 147.3 146.0 145.4 145.0 144.6 144.2 142.8 142.7 141.8 140.3 60 Manufacturing 85.4 153.6 155.1 154.9 154.1 152.6 151.3 150.7 150.0 149.6 149.2 147.5 147.6 146.3 144.7 61 Primary processing 26.5 178.0 181.2 181.1 178.8 176.1 173.5 173.1 171.1 171.3 170.6 169.0 169.0 167.5 165.9 62 Advanced processing 58.9 139.3 140.8 140.5 140.5 139.6 139.0 138.4 138.3 137.5 137.3 135.6 135.7 134.6 133.0 63 Durable goods 45.0 193.4 198.4 197.6 196.7 195.1 192.3 191.1 191.3 190.1 190.1 186.9 187.6 185.7 182.5 64 Lumber and products ' 24 2.0 118.3 116.8 114.8 113.2 111.5 108.3 109.1 111.4 110.9 114.0 113.8 114.6 114.9 115.8 65 Furniture and fixtures 25 1.4 142.9 146.6 147.2 145.0 145.3 144.1 143.8 143.2 142.5 143.5 140.0 140.1 138.1 135.6 66 Stone, clay, and glass products 32 2.1 134.7 136.5 137.3 134.6 132.4 135.2 134.3 134.3 133.3 134.3 132.0 132.1 131.5 131.7 67 Primary metals 33 3.1 133.7 133.9 129.0 127.3 126.3 124.0 121.3 117.8 122.4 122.5 121.8 122.3 120.6 117.3 68 Iron and steel 331,2 1.7 131.1 131.9 123.7 122.0 118.7 116.0 115.5 113.3 118.4 121.9 122.3 123.0 120.4 116.0 69 Raw steel 331PT .1 120.9 117.7 115.6 106.3 104.6 108.3 109.1 109.2 101.3 109.0 111.8 112.8 111.1 106.3 70 Nonferrous 333-6,9 1.4 136.8 136.5 135.3 133.6 135.2 133.4 128.2 123.3 127.2 123.4 121.5 121.8 121.2 119.0 71 Fabricated metal products .. 34 5.0 135.6 136.0 136.0 134.7 132.9 133.5 130.3 129.8 129.3 128.8 127.1 128.0 127.1 124.8 72 Industrial machinery and equipment 35 8.0 252.8 260.0 261.5 261.9 262.3 258.4 255.0 255.7 251.0 246.1 240.0 238.6 237.5 230.8 73 Computer and office equipment 357 1.8 1,343.6 1,464.2 1,487.4 1,502.8 1,508.3 1,497.4 1,484.2 1,477.5 1,464.4 1,434.6 1,410.1 1,398.3 1,391.5 1,356.7 74 Electrical machinery 36 7.3 549.7 592.2 597.4 604.4 610.2 604.3 593.7 581.0 569.9 565.8 552.3 540.1 538.5 528.8 75 Transportation equipment . . 37 9.5 131.0 132.4 129.2 126.8 122.8 116.0 119.8 124.5 123.9 127.0 125.5 129.2 126.3 123.2 76 Motor vehicles and parts . 371 4.9 170.5 175.5 167.2 160.1 151.8 138.6 147.4 156.5 155.4 162.9 160.7 168.4 163.3 157.4 77 Autos and light trucks . 371PT 2.6 153.0 158.8 145.8 140.1 131.5 125.9 131.9 141.8 141.6 147.9 145.0 157.9 149.0 144.2 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 93.8 92.1 93.6 95.4 95.3 94.3 93.5 94.3 94.1 93.2 92.4 92.4 91.5 90.9 79 Instruments 38 5.4 122.2 123.7 123.5 124.6 123.1 125.0 123.3 122.6 123.1 122.4 120.0 121.1 120.7 120.8 80 Miscellaneous 39 1.3 130.8 130.9 131.1 130.2 129.4 130.4 127.6 127.6 128.4 126.6 127.9 128.8 124.2 123.6 81 Nondurable goods 40.4 116.9 116.0 116.3 115.5 114.1 114.0 114.0 112.7 112.8 112.2 111.5 111.3 110.5 110.1 82 Foods 20 9.4 114.7 114.6 114.8 115.0 114.2 114.1 115.0 114.6 114.2 114.1 113.9 113.2 112.8 112.9 83 Tobacco products 21 1.6 95.3 94.5 93.7 93.1 94.2 95.2 93.7 92.2 93.8 92.1 93.1 94.2 91.7 90.0 84 Textile mill products 22 1.8 100.1 98.4 96.7 92.8 94.5 93.0 92.7 92.4 90.7 87.4 87.7 84.3 86.2 85.4 85 Apparel products 23 2.2 91.7 89.5 89.2 89.2 88.2 88.9 88.7 88.4 88.2 87.9 85.2 85.9 82.7 81.1 86 Paper and products 26 3.6 116.1 113.7 117.1 114.7 112.7 111.8 112.8 107.7 113.7 110.9 108.8 109.8 108.5 108.8 87 Printing and publishing .... 27 6.7 109.9 110.9 111.6 111.2 109.2 109.6 107.7 106.2 105.6 105.3 104.0 103.4 102.9 102.2 88 Chemicals and products .... 28 9.9 128.3 125.4 125.8 124.8 122.9 121.8 122.6 121.2 120.1 120.2 119.5 119.6 119.0 119.0 89 Petroleum products 29 1.4 117.1 117.4 116.5 116.9 114.7 115.1 116.5 115.0 116.7 116.2 116.7 115.6 113.6 112.7 90 Rubber and plastics 30 3.5 142.3 141.9 141.3 139.1 137.3 138.5 137.3 136.5 136.0 135.0 135.5 135.4 134.9 134.7 91 Leather and products 31 .3 69.8 69.8 68.6 68.9 66.9 67.1 69.3 67.7 65.7 64.0 62.4 62.2 61.8 60.1 92 Mining 6.9 100.0 100.4 100.1 101.1 99.6 101.0 101.4 102.7 103.5 103.8 103.4 102.3 102.0 102.3 93 Metal 10 .5 97.4 99.3 96.3 93.7 99.5 94.6 91.7 85.4 90.4 91.2 92.9 90.7 89.4 89.4 94 Coal 12 1.0 108.9 107.0 110.2 108.6 106.1 115.2 110.7 116.6 116.8 116.5 115.2 111.5 111.3 110.2 95 Oil and gas extraction 13 4.8 95.0 95.7 95.1 96.6 95.2 96.1 96.7 97.7 98.5 98.9 98.5 97.9 97.4 97.8 96 Stone and earth minerals 14 .6 126.4 123.7 124.6 123.2 119.3 121.7 126.4 129.6 129.1 128.2 126.5 123.6 125.2 125.9 97 Utilities 7.7 120.4 121.7 120.0 121.9 129.1 124.0 121.8 122.0 120.9 119.5 119.9 119.0 121.3 119.1 98 Electric 491.3PT 6.2 123.9 124.7 124.2 127.3 131.2 126.7 123.9 125.5 127.2 125.0 124.4 123.2 126.4 123.0 99 Gas 491.2PT 1.6 109.3 110.5 105.8 104.5 120.2 113.7 112.9 109.7 101.2 102.1 105.1 104.9 104.8 105.7 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 152.6 153.9 154.3 153.8 152.7 152.2 151.1 149.8 149.3 148.5 146.8 146.4 145.4 144.1 101 Manufacturing excluding computers and office equipment 83.6 145.4 146.5 146.2 145.4 143.9 142.7 142.2 141.5 141.1 140.8 139.2 139.4 138.2 136.7 102 Computers, communications equipment, and semiconductors 5.9 1,195.2 1,310.3 1,334.8 1,358.1 1,368.9 1,351.7 1,334.1 1,312.2 1,283.1 1,260.2 1,228.4 1,202.8 1,190.9 1,162.5 103 Manufacturing excluding computers and semiconductors 81.1 128.3 128.4 128.0 127.1 125.6 124.7 124.3 123.8 123.7 123.5 122.3 122.5 121.4 120.2 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 125.1 125.0 124.6 123.6 122.1 121.1 120.8 120.4 120.3 120.2 119.0 119.3 118.3 117.1 Gross value (billions of 1992 dollars, annual rates) MAJOR MARKETS 105 Products, total 2,001.9 2,860.5 2,889.1 2,867.4 2,863.2 2,850.2 2,818.1 2,819.8 2,826.9 2,812.9 2,818.9 2,796.5 2,804.9 2,776.4 2,742.6 106 Final 1,552.1 2,203.4 2,228.1 2,205.4 2,203.7 2,198.2 2,167.1 2,174.5 2,186.0 2,174.7 2,178.7 2,157.1 2,167.3 2,142.4 2,116.2 107 Consumer goods 1.049.6 1,340.0 1,353.7 1,334.7 1,331.2 1,332.8 1,312.2 1,322.8 1,328.2 1,325.5 1,331.9 1,325.7 1,333.5 1,320.3 1,310.5 108 Equipment 502.5 865.7 883.3 880.9 883.3 874.9 864.8 859.8 866.4 856.5 852.8 835.1 837.1 824.6 806.1 109 Intermediate 449.9 656.7 660.2 661.0 658.6 651.2 649.9 644.5 640.4 637.7 639.6 638.6 637.0 633.2 625.7 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 200I 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 • December 2001 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 2000 2001 IItteemm 11999988 11999999 22000000 Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,612 1,664 1,592 1,614 1,553 1,724 1,663 1,627 1,587 1,621 1,587 1,571 1,571 2 One-family 1,188 1,247 1,198 1,203 1,187 1,283 1,228 1,209 1,218 1,205 1,225 1,211 1,210 3 Two-family or more 425 417 394 411 366 441 435 418 369 416 362 360 361 4 Started 1,617 1,641 1,569 1,559 1,532 1,666 1,623 1,592 1,626 1,610 1,634 1,66c 1,548 5 One-family 1,271 1,302 1,231 1,209 1,236 1,336 1,288 1,208 1,295 1,285 1,292 l,290r 11,,226600 6 Two-family or more 346 339 338 350 296 330 335 384 331 325 342 370' 228888 7 Under construction at end of period1 .... 971 953 934 969 965 985 989 1,002 1,006 1,016 11,,001122 1,019' 1,004 8 One-family 659 648 623 655 652 669 675 676 682 688 668888 693' 687 9 Two-family or more 312 305 310 314 313 316 314 326 324 328 324 326' 317 10 Completed 1,474 1,605 1,574 1,548 1,527 1,424 1,531 1,478 1,569 1,499 1,643 1,583' 1,609 11 One-family 1,160 1,270 1,242 1,236 1,228 1,090 1,201 1,207 1,232 1,225 1,275 1,269' 1,265 12 Two-family or more 315 335 332 312 299 334 330 271 337 274 368 314' 344 13 Mobile homes shipped 374 348 250 196 176 171 180 179 184 186 198 193 199 Merchant builder activity in one-family units 14 Number sold 886 880 877 882 1,001 938 959 953 899 882 886 893 898 15 Number for sale at end of period1 300 315 301 304 297 295 295 289 293 296 301 305 307 Price of units sold (thousands of dollars)1 16 Median 152.5 161.0 169.0 174.7 162.0 171.3 169.1 166.3 175.2 175.3 174.3 172.3 167.6 17 Average 181.9 195.6 207.0 210.7 208.1 209.0 211.0 210.2 205.5 211.4 209.0 207.9 201.5 EXISTING UNITS (one-family) 18 Number sold 4,970 5,205 5,113 5,300 4,940 5,200 5,190 5,430 5,220 5,360 5,330 5,200 5,540 Price of units sold (thousands of dollars)2 19 Median 128.4 133.3 139.0 139.5 139.7 137.1 138.6 143.4 143.1 145.0 152.2 151.7 153.7 20 Average 159.1 168.3 176.2 176.5 178.5 175.8 174.6 179.5 179.9 183.6 191.1 190.6 193.5 Value of new construction (millions of dollars)3 CONSTRUCTION 21 Total put in place 703,533 763,914 817,130 826,746 838,731 859,815 869,334 869,140 870,826 869,574 861,571 854,640 845,521 22 Private 550,754 595,667 641,269 651,066 660,849 673,715 681,826 681,176 677,429 670,838 665,322 653,315 644,300 23 Residential 314,514 349,560 375,268 374,281 379,593 386,088 398,863 395,080 392,160 394,330 391,508 388,874 387,327 24 Nonresidential -314,383' -349,427' -375,130' 276,785 281,256 287,627 282,963 286,096 285,269 276,508 273,814 264,441 256,973 25 Industrial buildings 40,547 32,794 31,984 33,265 31,398 35,878 33,386 34,823 34,662 31,943 32,966 33,269 30,842 26 Commercial buildings 95,760 104,531 116,988 120,587 125,234 125,402 124,568 128,792 124,935 118,601 116,842 111,388 107,116 27 Other buildings 39,609 40,906 44,505 45,628 45,707 46,567 46,264 47,117 46,080 46,643 46,020 44,765 44,556 28 Public utilities and other 60,324 67,876 72,523 77,305 78,917 79,780 78,745 75,364 79,592 79,321 77,986 75,019 74,459 29 Public 152,779 168,247 175,861 175,680 177,883 186,100 187,508 187,964 193,397 198,736 196,249 201,326 201,221 30 Military 2,539 2,142 2,334 2,629 2,107 2,270 2,342 2,131 2,530 2,274 2,477 2,371 2,550 31 Highway 45,251 52,024 52,851 48,858 50,189 55,368 56,204 57,443 57,717 60,437 61,534 61,758 55,791 32 Conservation and development 5,415 5,995 6,043 5,789 6,339 7,381 7,838 7,573 6,332 7,216 6,592 5,955 6,908 33 Other 99,575 108,086 114,634 118,404 119,248 121,081 121,124 120,817 126,818 128,809 125,646 131,242 135,972 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 2001 SSSeeepppttt... 22000000 22000011 222000000111''' SSeepptt.. SSeepptt.. Dec. Mar. June Sept. May June July Aug. Sept. CONSUMER PRICES2 (1982-84=100) 1 All items 3.5 2.6 2.3 4.0 3.7 .7 .4 .2 -.3 .1 .4 178.3 7 Food 2.6 3.1 2.1 4.1 3.3 2.8 .3 .4 .3 .2 .2 174.1 3 Energy items 15.4 1.5 3.8 6.0 16.8 -18.2 3.1 -.9 -5.6 -1.9 2.6 132.5 4 All items less food and energy 2.6 2.6 2.0 3.5 2.6 2.4 .1 .3 .2 .2 .2 187.1 Commodities .3 .1 .0 1.4 -1.6 .3 -.4 .0 .1 -.4 .3 145.2 6 Services 3.5 3.8 3.2 4.2 4.5 3.1 .3 .5 .2 .5 .1 211.2 PRODUCER PRICES (1982=100) 7 Finished goods 3.5 1.6 2.9 4.7 .3 -.8 ,lr -,5r -.9 .4 .4 141.7 8 Consumer foods .5 4.0 2.7 10.5 .9 2.0 -2r -.2' -.6 .9 .2 142.9 9 Consumer energy 17.2 -.5 12.0 9.5 -6.1 -14.6 A' -3.0' -5.8 1.1 .9 100.1 10 Other consumer goods 1.5 1.8 1.0 2.3 2.3 1.8 .4' -,lr .1 -.1 .4 156.8 11 Capital equipment 1.4 .6 .3 .0 1.2 1.1 -.2' .3' .2 -.1 .1 139.4 Intermediate materials 12 Excluding foods and feeds 4.9 -1.1 1.2 1.5 -1.2 -5.6 .1 -.2 -1.1 -.5 .1 130.7 13 Excluding energy 2.3 -.9 -.3 1,5 -.9 -3.7 ,0r -.4 -.4 -.1 135.8 Crude materials 14 Foods -2.5 11.2 36.5 15,6 -7.1 4.5 -1.3 -.1 .6 -.6 1.1 108.5 15 Energy 43.3 -31.9 102.6 -42.4 -A3.1 -67.3 -3.2r -12.4r -11.5 -4.4 -10.7 93.1 16 Other 2.7 -10.1 -9.2 -10.8 -13.7 -6.0 -.6' -.T -.9 -.8 .2 128.5 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 • December 2001 2.16 GROSS DOMESTIC PRODUCT AND INCOME Billions of current dollars except as noted; quarterly data at seasonally adjusted annual rates 2000 2001 AAccccoouunntt 11999988 11999999 22000000 Q2 Q3 Q4 Ql Q2 GROSS DOMESTIC PRODUCT 1 Total 8,781.5 9,268.6 9,872.9 9,857.6 9,937.5 10,027.9 10,141.7 10,202.6 By source 2 Personal consumption expenditures 5,856.0 6,250.2 6,728.4 6,674.9 6,785.5 6,871.4 6,977.6 7,044.6 3 Durable goods 693.2 760.9 819.6 813.8 825.4 818.7 838.1 844.7 4 Nondurable goods 1,708.5 1,831.3 1,989.6 1,978.3 2,012.4 2,025.1 2,047.1 2,062.3 Services 3,454.3 3,658.0 3,919.2 3,882.8 3,947.7 4,027.5 4,092.4 4,137.6 6 Gross private domestic investment 1,538.7 1,636.7 1,767.5 1,792.4 1,788.4 1,780.3 1,722.8 1,669.9 / Fixed investment 1,465.6 1,578.2 1,718.1 1,717.0 1,735.9 1,741.6 1,748.3 1,706.5 8 Nonresidential 1,101.2 1,174.6 1,293.1 1,288.3 1,314.9 1,318.2 1,311.2 1,260.2 9 Structures 282.4 283.5 313.6 306.4 321.1 330.9 345.8 338.6 10 Producers' durable equipment 818.9 891.1 979.5 981.8 993.8 987.3 965.4 921.7 11 Residential structures 364.4 403.5 425.1 428.7 421.0 423.4 437.0 446.2 12 Change in business inventories 73.1 58.6 49.4 75.4 52.5 38.7 -25.5 -36.6 13 Nonfarm 72.3 60.1 51.1 74.0 55.3 37.8 -26.2 -35.3 14 Net exports of goods and services -151.7 -250.9 -364.0 -350.8 -380.6 -390.6 -363.8 -347.4 15 Exports 964.9 989.8 1,102.9 1,099.7 1,131.1 1,121.0 1,117.4 1,079.6 16 Imports 1,116.7 1,240.6 1,466.9 1,450.4 1,511.8 1,511.6 1,481.2 1,427.0 17 Government consumption expenditures and gross investment 1,538.5 1,632.5 1,741.0 1,741.1 1,744.2 1,766.8 1,805.2 1,835.4 18 Federal 539.2 564.0 590.2 601.0 587.0 594.2 605.3 609.9 19 State and local 999.3 1,068.5 1,150.8 1,140.1 1,157.2 1,172.6 1,199.8 1,225.5 By major type of product 20 Final sales, total 8,708.4 9,210.0 9,823.6 9,782.2 9,884.9 9,989.2 10,167.2 10,239.1 21 Goods 3,232.3 3,418.6 3,644.8 3,636.0 3,677.2 3,670.6 3,718.8 3,715.0 22 Durable 1,524.4 1.618.8 1,735.2 1,735.2 1,753.8 1,740.7 1,755.8 1,737.2 23 Nondurable 1,707.9 1,799.8 1,909.7 1,900.8 1,923.5 1,929.9 1,963.1 1,977.8 24 Services 4,678.6 4,939.1 5,268.5 5,243.1 5,296.1 5,393.0 5,482.8 5,545.7 25 Structures 797.5 852.4 910.3 903.1 911.6 925.6 965.6 978.4 26 Change in business inventories 73.1 58.6 49.4 75.4 52.5 38.7 -25.5 -36.6 27 Durable goods 44.7 35.3 34.7 51.0 33.0 31.5 -31.0 -42.3 28 Nondurable goods 28.5 23.3 14.7 24.4 19.5 7.2 5.5 5.8 MEMO 29 Total GDP in chained 1996 dollars 8,508.9 8,856.5 9,224.0 9,229.4 9,260.1 9,303.9 9,334.5 9,341.7 NATIONAL INCOME 30 Total 7,041.4 7,462.1 7,980.9 7,956.1 8,047.2 8,124.0 8,169.7 8,207.9 31 Compensation of employees 4,989.6 5,310.7 5,715.2 5,669.9 5,759.3 5,868.9 5,955.7 6,010.8 32 Wages and salaries 4,192.1 4,477.4 4,837.2 4,798.0 4,875.8 4,973.2 5,049.4 5,099.8 33 Government and government enterprises 692.7 724.3 768.4 768.3 772.6 776.6 788.8 799.6 34 Other 3,499.4 3,753.1 4,068.8 4,029.7 4,103.2 4,196.6 4,260.6 4.300.2 35 Supplement to wages and salaries 797.5 833.4 878.0 872.0 883.5 895.7 906.3 911.0 36 Employer contributions for social insurance 306.9 323.6 343.8 341.8 345.6 350.8 357.1 358.8 37 Other labor income 490.6 509.7 534.2 530.1 537.9 544.9 549.3 552.2 38 Proprietors' income1 623.8 672.0 715.0 717.9 719.3 725.2 735.2 745.3 39 Business and professional1 598.2 645.4 684.4 685.4 687.6 693.5 705.4 716.6 40 Farm' 25.6 26.6 30.6 32.5 31.6 31.7 29.8 28.7 41 Rental income of persons2 138.6 147.7 141.6 141.4 138.3 141.7 139.6 139.0 42 Corporate profits1 777.4 825.2 876.4 892.8 895.0 847.6 789.8 759.8 43 Profits before tax3 721.1 776.3 845.4 862.0 858.3 816.5 755.7 738.3 44 Inventory valuation adjustment 18.3 -2.9 -12.4 -14.8 -3.6 -7.3 -1.9 -8.8 45 Capital consumption adjustment 38.0 51.7 43.4 45.5 40.4 38.4 36.0 30.3 46 Net interest 511.9 506.5 532.7 534.1 535.3 540.6 549.4 553.0 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 2000 2001 AAccccoouunntt 11999988 11999999 22000000 Q2 Q3 Q4 Ql Q2 PERSONAL INCOME AND SAVING 1 Total personal income 7,426.0 7,777.3 8,319.2 8,271.0 8,381.5 8,519.6 8,640.2 8,714.6 7 Wage and salary disbursements 4,192.8 4,472.2 4,837.2 4,798.0 4,875.8 4,973.2 5,049.4 5,099.8 3 Commodity-producing industries 1,038.5 1,088.7 1,163.7 1,151.8 1,173.2 1,195.5 1,206.3 1,204.4 4 Manufacturing 756.6 782.0 830.1 822.0 838.0 852.2 853.3 850.2 Distributive industries 948.9 1,021.0 1,095.6 1,086.1 1,102.4 1,125.9 1,140.3 1,148.2 6 Service industries 1,512.7 1,638.2 1,809.5 1,791.7 1,827.6 1,875.2 1,914.0 1,947.6 7 Government and government enterprises 692.7 724.3 768.4 768.3 772.6 776.6 788.8 799.6 8 Other labor income 490.6 509.7 534.2 530.1 537.9 544.9 549.3 552.2 9 Proprietors' income1 623.8 672.0 715.0 717.9 719.3 725.2 735.2 745.3 10 Business and professional1 598.2 645.4 684.4 685.4 687.6 693.5 705.4 716.6 11 25.6 26.6 30.6 32.5 31.6 31.7 29.8 28.7 1? Rental income of persons2 138.6 147.7 141.6 141.4 138.3 141.7 139.6 139.0 n Dividends 348.3 343.1 379.2 373.3 385.8 396.6 404.8 411.9 14 Personal interest income 964.4 950.0 1,000.6 999.9 1,009.2 1,013.1 1,010.9 1,001.0 15 Transfer payments 983.7 1,019.6 1,069.1 1,066.3 1,074.6 1,089.0 1,123.1 1,139.4 16 Old-age survivors, disability, and health insurance benefits 578.1 588.0 617.3 618.6 620.9 626.5 651.4 660.1 17 LESS: Personal contributions for social insurance 316.3 337.1 357.7 355.8 359.4 364.1 372.1 374.0 18 EQUALS: Personal income 7,426.0 7,777.3 8,319.2 8,271.0 8,381.5 8,519.6 8,640.2 8,714.6 19 LESS: Personal tax and nontax payments 1,070.4 1,159.2 1,288.2 1,277.3 1,300.2 1,329.8 1,345.2 1,351.4 20 EQUALS: Disposable personal income 6,355.6 6,618.0 7,031.0 6,993.7 7,081.3 7,189.8 7,295.0 7,363.2 21 LESS: Personal outlays 6,054.1 6,457.2 6,963.3 6,905.6 7,026.9 7,115.1 7,216.2 7,281.7 22 EQUALS: Personal saving 301.5 160.9 67.7 88.1 54.5 74.7 78.8 81.5 MEMO Per capita (chained 1996 dollars) ?3 Gross domestic product 31,449.2 32,441.9 33,490.3 33,549.2 33,587.6 33,661.1 3333,,669988..55 3333,,663399..77 24 Personal consumption expenditures 21,007.2 21,862.6 22,720.7 22,632.8 22,822.4 22,941.7 23,063.1 23,148.7 25 Disposable personal income 22,800.0 23,150.0 23,742.0 23,717.0 23,814.0 24,006.0 24,111.0 24,200.0 26 Saving rate (percent) 4.7 2.4 1.0 1.3 .8 1.0 1.1 I.I GROSS SAVING 27 Gross saving 1,647.2 1,707.4 1,785.7 1,799.4 1,807.4 1,799.7 1,754.0 1,750.5 28 Gross private saving 1,375.0 1,348.0 1,323.0 1,345.8 1,329.6 1,332.7 1,307.9 1,321.2 ?9 Personal saving 301.5 160.9 67.7 88.1 54.5 74.7 78.8 81.5 30 Undistributed corporate profits' 189.9 228.7 225.3 238.6 233.9 197.0 147.8 119.5 31 Corporate inventory valuation adjustment 18.3 -2.9 -12.4 -14.8 -3.6 -7.3 -1.9 -8.8 Capital consumption allowances 3? Corporate 620.2 669.2 727.1 719.1 736.0 749.7 776633..88 778855..66 33 Noncorporate 264.2 284.1 302.8 299.9 305.2 311.3 317.5 334.6 34 Gross government saving 272.2 359.4 462.8 453.7 477.8 467.1 446.1 429.3 35 132.0 210.9 315.0 305.0 326.9 320.5 303.7 286.2 36 Consumption of fixed capital 88.2 91.7 96.4 95.9 97.0 97.9 98.4 99.4 37 Current surplus or deficit (-), national accounts 43.8 119.2 218.6 209.1 229.9 222.5 205.3 186.7 38 State and local 140.2 148.5 147.8 148.7 150.9 146.6 142.5 143.2 39 Consumption of fixed capital 99.5 106.4 114.9 114.0 116.1 118.0 120.2 121.9 40 Current surplus or deficit (-), national accounts 40.7 42.1 32.8 34.7 34.8 28.6 22.3 21.3 41 Gross investment 1,616.2 1,634.7 1,655.3 1,690.0 1,651.1 1,649.7 1,633.5 1,607.3 4? Gross private domestic investment 1,538.7 1,636.7 1,767.5 1,792.4 1,788.4 1,780.3 1,722.8 1,669.9 43 Gross government investment 277.1 304.6 318.3 315.0 314.0 322.8 330.9 344.0 44 Net foreign investment -199.7 -306.6 ^30.5 -417.4 -451.3 -453.4 -420.2 ^106.6 45 Statistical discrepancy -31.0 -72.7 -130.4 -109.5 -156.3 -150.0 -120.5 -143.2 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • December 2001 3.10 U.S. INTERNATIONAL TRANSACTIONS Summary Millions of dollars; quarterly data seasonally adjusted except as noted1 2000 2001 IItteemm ccrreeddiittss oorr ddeebbiittss 11999988 11999999 22000000 Q2 Q3 Q4 QL Q2 1 Balance on current account -217,457 -324,364 -444,667 -108,134 -115,305 -116.324 -111,778 -106,498 2 Balance on goods and services -166,828 -261,838 -375,739 -90,784 -97,340 -100,293 -95,023 -88,938 3 Exports 932,694 957,353 1,065,702 265,822 272,497 270,131 269,092 260,507 4 Imports -1,099,522 -1,219,191 -1,441,441 -356,606 -369,837 -370,424 -364,115 -349,445 5 Income, net -6,202 -13,613 -14,792 -4,889 -4,885 642 -5,021 -5,493 6 Investment, net -1,211 -8,511 -9,621 -3,589 -3,620 1,971 -3,661 -4,156 7 Direct 66,253 67,044 81,231 18,117 21,049 25,703 22,673 23,086 8 Portfolio -67,464 -75,555 -90,852 -21,706 -24,669 -23,732 -26,334 -27,242 9 Compensation of employees -4,991 -5,102 -5,171 -1,300 -1,265 -1,329 -1,360 -1,337 10 Unilateral current transfers, net -44,427 -48,913 -54,136 -12,461 -13,080 -16,673 -11,734 -12,067 11 Change in U.S. government assets other than official reserve assets, net (increase, -) -422 2,751 -944 -572 114 -359 21 -761 12 Change in U.S. official reserve assets (increase, -) -6,783 8,747 -290 2,020 -346 -1,410 190 -1,343 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -147 10 -722 -180 -182 -180 -189 -156 15 Reserve position in International Monetary Fund -5,119 5,484 2.308 2,328 1,300 -1,083 574 -1,015 16 Foreign currencies -1,517 3,253 -1.876 -128 -1,464 -147 -195 -172 17 Change in U.S. private assets abroad (increase, -) -352,427 —448,565 -579.718 -95,021 -107,495 -179,779 -243,331 -61,218 18 Bank-reported claims2 -35,572 -76,263 -138,500 7,455 -18,147 -71,574 -109,789 9,191 19 Nonbank-reported claims -38,204 -85,700 -163.846 -29,491 -14,585 -44,514 -61,011 13,433 20 U.S. purchase of foreign securities, net -136,135 -131,217 -124,935 -39,639 -33,129 -24,621 -31,591 ^18,240 21 U.S. direct investments abroad, net -142.516 -155,385 -152,437 -33,346 ^41,634 -39,070 -40,940 -35,602 22 Change in foreign official assets in United States (increase, +) -19,948 43,551 37,619 6,447 12,247 -3,573 4,898 -22,430 73 U.S. Treasury securities -9,921 12,177 -10,233 -4,000 -9,001 -13,436 -1,027 -20,781 24 Other U.S. government obligations 6,332 20,350 40,909 10,334 14,272 8,196 3,574 9,932 25 Other U.S. government liabilities2 -3,371 -2,855 -1,987 -1,000 -220 -293 -1,246 -1,138 26 Other U.S. liabilities reported by U.S. banks2 -9,501 12,964 5,803 209 6,884 980 2,594 -11,471 27 Other foreign official assets3 -3,487 915 3,127 904 312 980 1,003 1,028 28 Change in foreign private assets in United States (increase, +) 524,412 770,193 986,599 243,560 209,861 298,894 341,762 210,432 79 U.S. bank-reported liabilities4 39,769 54,232 87,953 53,923 -1,910 43,365 6.890 50,123 30 U.S. nonbank-reported liabilities 23,140 69,075 177,010 24,400 19,078 48,344 130,624 -34,022 31 Foreign private purchases of U.S. Treasury securities, net 48,581 -20,490 -52,792 -20,546 -12,503 -10,395 656 -8,275 32 U.S. currency flows 16,622 22,407 1,129 989 757 6,230 2,311 2,772 33 Foreign purchases of other U.S. securities, net 218,091 343,963 485,644 94,400 128,393 126,643 148,809 132,671 34 Foreign direct investments in United States, net 178,209 301,006 287,655 90,394 76,046 84,707 52,472 67,163 35 Capital account transactions, net5 678 -3,491 705 173 175 184 173 177 36 Discrepancy 71,947 -48,822 696 -48,473 749 2,367 8,065 -18,359 37 Due to seasonal adjustment -2,380 -9,977 3,856 8,821 -1,868 38 Before seasonal adjustment 71,947 ^48,822 696 -46,093 10,726 -1,489 -756 -16,491 MEMO Changes in official assets 39 U.S. official reserve assets (increase, -) -6,783 8,747 -290 2,020 -346 -1,410 190 -1,343 40 Foreign official assets in United States, excluding line 25 (increase, +) -16,577 46,406 39,606 7,447 12,467 -3,280 6,144 -21,292 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -11,531 1,621 11,582 1,639 3,636 164 589 -1,878 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38—41. 5. Consists of capital transfers (such as those of accompanying migrants entering or 2. Associated primarily with military sales contracts and other transactions arranged with leaving the country and debt forgiveness) and the acquisition and disposal of nonproduced or through foreign official agencies. nonfinancial assets. 3. Consists of investments in U.S. corporate stocks and in debt securities of private SOURCE. U.S. Department of Commerce, Bureau of Economic Analysis, Survey of Current corporations and state and local governments. Business. 4. Reporting banks included all types of depository institutions as well as some brokers and dealers. 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 2001 IItteemm 11999988 11999999 22000000 Feb. Mar. Apr. May June July' Aug.? 1 Goods and services, balance -166,686 -261,838 -375,739 -28,675 -32,957 -31,518 -28,210 -29,068 -29,168 -27,106 2 Merchandise -246,855 -345,434 -452,207 -34,614 -38,781 -37,656 -34,449 -35,553 -35,838 -34,073 3 Services 79,868 83,596 76,468 5,939 5,824 6,138 6,239 6,485 6,670 6,967 4 Goods and services, exports 933,053 957,353 1,065,702 90,395 88,636 87,064 87,571 85,898 83,595 84,513 5 Merchandise 670,324 684,553 772,210 65,748 63,884 62,170 62,846 60,848 58,688 59,533 6 Services 262,729 272,800 293,492 24,647 24,752 24,894 24,725 25,050 24,907 24,980 7 Goods and services, imports -1,099,739 -1,219,191 -1,441,441 -119,070 -121,593 -118,582 -115,781 -114,966 -112,763 -111,619 8 Merchandise -917,179 -1,029,987 -1,224,417 -100,362 -102,665 -99,826 -97,295 -96,401 -94,526 -93,606 9 Services -182,560 -189,204 -217,024 -18,708 -18,928 -18,756 -18,486 -18,565 -18,237 -18,013 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 2001 AAsssseett 11999988 11999999 22000000 Mar. Apr. May June July Aug. Sept. Oct.P 1 Total 81,761 71,516 67,647 64,222 64,731 65,254 64,847 65,736 67,852 70,963r 69,707 2 Gold stock1 11,046 11,048 11,046 11,046 11,046 11,044 11,044 11,044 11,044 11,045' 11,045 3 Special drawing rights2-3 10,603 10,336 10,539 10,379 10,420 10,481 10,409 10,518 10,913 10,919 10,827 4 Reserve position in International Monetary Fund2 24,111 17,950 14,824 13,777 13,816 14,283 14,619 14,965 15,297 18,404 17,787 5 Foreign currencies4 36,001 32,182 31,238 29,020 29,449 29,446 28,775 29,209 30,598 30,595 30,048 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 2001 AAsssseett 11999988 11999999 22000000 Mar. Apr. May June July Aug. Sept. Oct.p 1 Deposits 167 71 215 70 101 86 102 84 80 608 75 Held in custody 2 U.S. Treasury securities2 607,574 632,482 594,094 609,440 585,710 583,655 586,607 578,573 590,820 587,566 599,043 3 Earmarked gold3 10,343 9,933 9,451 9,289 9,215 9,154 9,100 9,100 9,100 9,100 9,099 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 • December 2001 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2001 IItteemm 11999999 22000000 Feb. Mar. Apr. May June July Aug.? 1 Total1 806,318 845,869r 864,528r 865,426r 855,098r 837,267r 835,474r 845,155r 837,390 By type 2 Liabilities reported by banks in the United States2 138.847 144,593r 155,098r 154,60 lr 158,387r 143,92Ir 144,471r 151,858' 135,554 3 U.S. Treasury bills and certificates3 156,177 153,010 155,667 155,204 144,158 137,933 139,195 143,288 151,850 U.S. Treasury bonds and notes 4 Marketable 422,266 415,964 418,857 419,106 410,066 410,979 407,736 406,995 407,338 5 Nonmarketable4 6,111 5,348 4,953 4,984 5,017 5,049 5,081 4,846 4,805 6 U.S. securities other than U.S. Treasury securities5 82,917 126,954 129,953 131,531 137,470 139,385 138,991 138,168 137,843 By area 7 Europe1 244,805 253,592 256,180 250,420 247,128 251,505 252.39 I'- 262,830 260,288 8 Canada 12,503 12,394 10,794 10,396 10,474 10,967 ll,573 11,727 11,933 9 Latin America and Caribbean 73,518 76,753r 80,324r 79,143r 79,410r 76,135r 79,094r 79,359' 74,580 10 Asia 463,703 488,170 501,486 51 l,025r 501,085r 482,990' 478,284r 475,475' 474.659 11 Africa 7,523 9,165 9,586 9,102 9,341 9,272 9,054 10,574 9,864 12 Other countries 4,266 5,795 6,158 5,340 7,660 6,398 5.078 5,190 6,066 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 corportions 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 2001 IItteemm 11999977 11999988 11999999 Sept. Dec. Mar. June 1 Banks' liabilities 117,524 101,125 88,537 78,852 76,345 89,394 107,593 2 Banks' claims 83,038 78,162 67,365 60,355 56,647 73,179 77.423 3 Deposits 28,661 45,985 34,426 26,306 23,292 29,902 32,765 4 Other claims 54,377 32,177 32,939 34,049 33,355 43,277 44,658 5 Claims of banks' domestic customers2 8,191 20,718 20,826 19,123 24,411 21,105 21,144 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 2001 IItteemm 11999988 11999999 22000000 Feb.' Mar.' Apr. May June July Aug.f BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,347,837 1,408,740 1,511,379' 1,531,555 1,505,606 l,529,883r l,532,548r l,518,912r l,517,750r 1,502,121 7 Banks' own liabilities 884,939 971,536 l,077,605r 1,084,602 1,076,302 1,093,322' 1,115,113' 1,096,181' 1,098,240' 1,072,098 3 Demand deposits 29,558 42,884 33,365 35,777 33,918 30,2 lC 29,123' 32,887' 29,950' 33,673 4 Time deposits2 151,761 163,620 187,883r 189,859 182,257 189,539' 181,613' 180,645' 175,964' 173,263 Other3 140,752 155,853 171,400' 198,604 200,280 202,213' 207,146 212,874 225,276' 205,345 6 Own foreign offices4 562,868 609,179 684,957' 660,362 659,847 671,360' 697,231' 669,775' 667,050' 659,817 7 Banks' custodial liabilities5 462,898 437,204 433,774' 446,953 429,304 436,561' 417,435 422,731 419,510 430,023 8 U.S. Treasury bills and certificates6 183,494 185,676 177,846 179,277 171,823 160,628 155,924 156,440 160,822 170,580 9 Short-term agency securities7 n.a. n.a. n.a. 74,281 71,454 69,543 62,425 60,081 61,471 62,801 10 Other negotiable and readily transferable instruments8 141,699 132,617 145,840 73,847 65,154 77,595 80,260 78,052 75,726 75,946 11 Other 137,705 118,911 110,088' 119,548 120,873 128,795' 118,826 128,158 121,491 120,696 12 Nonmonetary international and regional organizations® 11,883 15,276 12,542 11,578 12,290 12,833 14,668 13,818 11,255 13,214 13 Banks' own liabilities 10,850 14,357 12,140 11,202 11,746 12,344 14,342 13,479 11,020 12,983 14 Demand deposits 172 98 41 19 23 14 15 28 50 21 15 Time deposits2 5,793 10,349 6,246 4,966 5,302 5,301 3,532 4,228 2,896 2,738 16 Other3 4,885 3,910 5,853 6,217 6,421 7,029 10,795 9,223 8,074 10,224 17 Banks' custodial liabilities5 1,033 919 402 376 544 489 326 339 235 231 18 U.S. Treasury bills and certificates6 636 680 252 248 229 170 105 68 78 92 19 Short-term agency securities7 n.a. n.a. n.a. 108 137 144 132 134 132 117 20 Other negotiable and readily transferable instruments8 397 233 149 15 177 175 87 137 25 2211 21 Other 0 6 1 5 1 0 2 0 0 1 7? Official institutions10 260,060 295,024 297,603' 310,765 309,805 302,545' 281,854' 283,666' 295,146' 287,404 73 Banks' own liabilities 80,256 97,615 96,989' 99,537 97,028 103,454' 96,696' 100,053' 108,991' 92,083 74 Demand deposits 3,003 3,341 3,952 4,444 3,511 2,552 2,522 2,465 2,169 2,934 75 Time deposits2 29,506 28,942 35,573' 29,892 27,959 31,985' 26,625' 32,752' 28,121' 25,379 26 Other3 47,747 65,332 57,464 65,201 65,558 68,917' 67,549 64,836' 78,701 63,770 77 Banks' custodial liabilities5 179,804 197,409 200,614 211,228 212,777 199,091 185,158 183,613 186,155 195,321 78 U.S. Treasury bills and certificates6 134,177 156,177 153,010 155,667 155,204 144,158 137,933 139,195 143,288 151,850 29 Short-term agency securities7 n.a. n.a. n.a. 49,594 53,295 51,107 43,193 40,301 39,971 40,727 30 Other negotiable and readily transferable instruments8 44,953 41,182 47,366 5,325 4,064 3,325 3,509 3,647 2,686 2,558 31 Other 674 50 238 642 214 501 523 470 210 186 3? Banks" 885,336 900,379 972,902' 974,166 959,982 965,770' 989,736' 969,297' 956,314' 950,836 33 Banks' own liabilities 676,057 728,492 821,276' 814,628 812,712 816,632' 845,646' 816,676' 810,342' 805,638 34 Unaffiliated foreign banks 113,189 119,313 136,319' 154,266 152,865 145,272' 148,415' 146,901' 143,292' 145,821 35 Demand deposits 14,071 17,583 15,522 12,601 16,433 13,030' 12,143 15,211 12,548 14,588 36 Time deposits2 45,904 48,140 66,904' 77,396 72,926 72,535' 70,700' 64,249' 64,094' 64,421 37 Other3 53,214 53,590 53,893' 64,269 63,506 59,707' 65,572 67,441' 66,650 66,812 38 Own foreign offices4 562,868 609,179 684,957' 660,362 659,847 671,360' 697,231' 669,775' 667,050' 659,817 39 Banks' custodial liabilities5 209,279 171,887 151,626' 159,538 147,270 149,138' 144,090 152,621 145,972 145,198 40 U.S. Treasury bills and certificates6 35,359 16,796 16,023 13,909 7,922 7,233 8,535 8,455 9,093 9,582 41 Short-term agency securities7 n.a. n.a. n.a. 8,007 2,324 2,824 3,772 3,169 2,535 2,421 42 Other negotiable and readily transferable instruments8 45,332 45,695 36,036 30,260 27,817 25,271 27,856 27,314 26,546 26,525 43 Other 128,588 109,396 99,567' 107,362 109,207 113,810' 103,927 113,683 107,798 106,670 44 Other foreigners 190,558 198,061 228,332' 235,046 223,529 248,735' 246,290' 252,131' 255,035' 250,667 45 Banks' own liabilities 117,776 131,072 147,200' 159,235 154,816 160,892' 158,429' 165,973' 167,887' 161,394 46 Demand deposits 12,312 21,862 13,850 18,713 13,951 14,614' 14,443' 15,183' 15,183' 16,130 47 Time deposits2 70,558 76,189 79,160' 77,605 76,070 79,718' 80,756' 79,416' 80,853' 80,725 48 Other3 34,906 33,021 54,190' 62,917 64,795 66,560' 63,230 71,374 71,851' 64,539 49 Banks' custodial liabilities5 72,782 66,989 81,132 75,811 68,713 87,843 87,861 86,158 87,148 89,273 50 U.S. Treasury bills and certificates6 13,322 12,023 8,561 9,453 8,468 9,067 9,351 8,722 8,363 9,056 51 Short-term agency securities7 n.a. n.a. n.a. 16,572 15,698 15,468 15,328 16,477 18,833 19,536 52 Other negotiable and readily transferable instruments8 51,017 45,507 62,289 38,247 33,096 48,824 48,808 46,954 46,469 46,842 53 Other 8,443 9,459 10,282 11,539 11,451 14,484 14,374 14,005 13,483 13,839 MEMO 54 Negotiable time certificates of deposits in custody for foreigners 27,026 30,345 34,217 30,277 24,518 26,238 25,912 24,884 22,640 24,442 55 Repurchase agreements7 n.a. n.a. n.a. 120,500 129,671 119,577 119,901 126,508 138,328' 133,335 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 deposit, which are included in "Other negotiable 7. Data available beginning January 2001. 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 subsidi- 9. Principally the International Bank for Reconstruction and Development, the Interaries 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 fore foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • December 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 2001 IItteemm 11999988 11999999 22000000 Feb.' Mar.' Apr.' May' June July Aug.p Area 56 Total, all foreigners 1,347,837 1,408,740 1,511,379'' 1,531,555 1,505,606 1,529,883 1,532,548 l,518,912r l,517,750r 1,502,121 57 Foreign countries 1,335,954 1393,464 l,498,836r 1,519,976 1,493,315 1,517,049 1,517,879 l,505,093r 1,506,494r 1,488,907 58 Europe 427,375 441,810 446,788' 447,296 429,577 431,269 464,636 458,130' 449,610' 431,292 59 Austria 3,178 2,789 2,692 2,094 2,178 2,771 2,593 2,026 2,040 2,370 60 Belgium12 42,818 44,692 33,399 5,709 5,432 5,309 5,895 6,270 7,058 6,779 61 Denmark 1,437 2,196 3,000 4,182 2,919 3,412 2,910 3,063 2,596 3,294 62 Finland 1,862 1,658 1,411 1,667 1,286 1,769 1,144 2,395 1,574 1,011 63 France 44,616 49,790 37,833 45,435 42,758 39,125 40,209 40,077 42,710 40,268 64 Germany 21,357 24,753 35,519 30,382 30,863 29,589 30,338 32,355' 32,333 27,540 65 Greece 2,066 3,748 2,011 1,965 1,496 1,336 1,525 1,653 2,288 2,607 66 My 7,103 6,775 5,072 5,073 5,853 5,270 5,531 6,767' 5,877' 4,761 67 Luxembourg 2 n.a. n.a. n.a. 24,234 12,585 14,505 15,046 14,961 14,568 14,341 68 Netherlands 10,793 8,143 7,047' 8,143 7,079 10,140 10,772 9,621 11,372' 11,595 69 Norway 710 1,327 2,305 6,332 8,362 4,806 2,572 4,583 3,539 3,993 70 Portugal 3,236 2,228 2,403 2,625 1,731 1,949 2,041 2,287 2,662 2,490 71 Russia 2,439 5,475 19,018 19,029 18,625 19,917 21,357 22,839 23,966 22,692 72 Spain 15,781 10,426 7,787 8,244 9,503 7,750 7,886 7,413' 6,974' 7,286 73 Sweden 3,027 4,652 6,497 5,959 6,738 6,025 5,284 5,507 4,111 3,233 74 Switzerland 50,654 63,485 74,635 64,447 54,038 65,998 93,198 73,106 65,929 52,889 75 Turkey 4,286 7,842 7,548 5,394 5,646 4,549 7,169 5,485 6,192 7,033 76 United Kingdom 181,554 172,687 167,757' 134,267 147,123 137,957 139,507 146,208' 137,206' 138,086 77 Channel Islands & Isle of Man13 n.a. n.a. n.a. 43,087 36,040 36,013 34,742 34,994 35,018 35,748 78 Yugoslavia14 233 286 276 292 292 303 301 297 395 297 79 Other Europe and other former U.S.S.R.15 30,225 28,858 30,578 28,736 29,030 32,776 34,616 36,223 41,202 42,979 80 Canada 30,212 34,214 30,982' 23,940 24,273 27,962 25,983 25,975' 26,377' 27,146 81 Latin America 121,327 117,495 120,040' 121,144 114,697 117,498 113,460 117,508' 118,604' 118,574 82 Argentina 19,014 18,633 19,451' 18,070 12,932 14,599 12,573 16,413' 13,294' 11,150 83 Brazil 15,815 12,865 10,852 11,414 10,576 10,853 11,258 12,585' 14,367' 16,033 84 Chile 5,015 7,008 5,892 5,926 5,176 5,449 5,701 5,491' 5,440 5,263 85 Colombia 4,624 5,669 4,542 4,463 4,362 4,619 4,745 4,634' 4,396' 4,582 86 Ecuador 1,572 1,956 2,111 2,280 2,202 2,185 2,137 1,979' 2,142' 2,167 87 Guatemala 1,336 1,626 1,601' 1,541 1,515 1,562 1,592 1,514' 1,527' 1,463 88 Mexico 37,157 30,717 32,166' 34,971 34,105 34,272 33,178 33,338' 34,687' 37,443 89 Panama 3,864 4,415 4,240' 3,883 4,034 3,475 3,638 3,510 3,684' 3,638 90 Peru 840 1,142 1,427 1,469 1,792 1,770 1,535 1,616' 1,599' 1,525 91 Uruguay 2,486 2,386 3,003 2,846 3,366 3,410 3,332 3,026 2,980 2,993 92 Venezuela 19,894 20,192 24,730' 27,177 27,462 27,891 26,920 26,968' 27,602' 25,647 93 Other Latin America16 9,710 10,886 10,025' 7,104 7,175 7,413 6,851 6,434' 6,886' 6,670 94 Caribbean 433,539 461,200 573,337' 588,612 582,825 605,855 600,378 598,231' 607,618' 612,601 95 Bahamas 118,085 135,811 189,298' 185,354 174,156 177,506 190,142 187,472' 183,003' 184,585 96 Bermuda 6,846 7,874 9,636' 8,070 8,402 8,316 7,019 7,815 8,229 7,985 97 British West Indies17 302,486 312,278 367,197' 0 n.a. n.a. n.a. n.a. n.a. n.a. 98 Cayman Islands17 n.a. n.a. n.a. 375,454 381,129 401,809 385,784 384,436' 400,624' 404,164 99 Cuba 62 75 90 84 85 83 84 85 88 45 100 Jamaica 577 520 794' 916 1,207 867 1,101 963' 975' 967 101 Netherlands Antilles 5,010 4,047 5,428 5,489 4,510 4,523 3,402 3,892' 3,207' 3,793 102 Trinidad and Tobago 473 595 894' 875 1,038 1,114 1,237 1,272 1,253 1,428 103 Other Caribbean16 n.a. n.a. n.a. 12,370 12,298 11,637 11,609 12,296' 10,239' 9,634 104 Asia 307,960 319,489 305,524' 317,002 320,705 311,175 229911,,330088 283,537' 283,100' 227766,,990022 China 105 Mainland 13,441 12,325 16,531' 31,171 39,924 34,689 23,156 15,390' 15,586' 15,980 106 Taiwan 12,708 13,603 17,352 18,192 17,891 19,963 18,119 19,862 23,081 22,857 107 Hong Kong 20,900 27,701 26,462 27,677 29,103 26,581 27,348 29,180 26,843 23,496 108 India 5,250 7,367 4,530 4,060 4,547 4,113 4,281 4,043 4,413 4,078 109 Indonesia 8,282 6,567 8,514 9,027 8,605 10,728 10,600 10,566' 11,630' 11,986 110 Israel 7,749 7,488 8,053 7,263 8,803 7,095 8,282 8,696 8,710 7,717 111 Japan 168,563 159,075 150,415 150,805 146,446 144,859 141,247 137,069' 134,246 130,981 112 Korea (South) 12,524 12,988 7,955' 6,673 6,541 5,370 5,380 6,239 6,829 6,549 113 Philippines 3,324 3,268 2,316 1,430 1,461 1,643 1,658 1,449' 1,624' 1,781 114 Thailand 7,359 6,050 3,117 3,456 3,253 2,935 3,295 3,310 3,375 3,771 115 Middle Eastern oil-exporting countries18 15,609 21,314 23,733 21,615 21,651 20,518 19,644 20,521 19,190 20,666 116 Other 32,251 41,743 36,546' 35,633 32,480 32,681 28,298 27,212' 27,573' 27,040 117 Africa 8,905 9,468 10,824 10,983 10,566 10,659 10,601 10,508' 12,101 12,116 118 Egypt 1,339 2,022 2,621 2,336 2,282 2,213 2,200 2,227 3,486 3,607 119 Morocco 97 179 139 139 133 139 116 102 118 165 120 South Africa 1,522 1,495 1,010 915 652 791 706 657 802 1,286 121 Congo (formerly Zaire) 5 14 4 10 8 5 2 14 5 5 122 Oil-exporting countries19 3,088 2,914 4,052 4,750 4,593 4,752 4,740 4,645' 4,349' 3,839 123 Other 2,854 2,844 2,998 2,833 2,898 2,759 2,837 2,863 3,341' 3,214 124 Other countries 6,636 9,788 11,341' 10,999 10,672 12,631 11,513 11,204' 9,084' 10,276 125 Australia 5,495 8,377 10,070 9,528 9,472 11,382 10,406 9,839 8,041 9,280 126 New Zealand20 n.a. n.a. n.a. 328 427 503 437 862 501 517 127 All other 1,141 1,411 1,271' 1,143 773 746 670 503' 542' 479 128 Nonmonetary international and regional organizations 11,883 15,276 12,543 11,579 12,291 12,834 14,669 13,819 11,256 13,214 129 International21 10,221 12,876 11,270 10,793 11,379 11,335 12,965 12,836 10,241 12,090 130 Latin American regional22 594 1,150 740 223 272 327 886 418 441 509 131 Other regional23 1,068 1,250 533 534 640 620 518 523 502 558 12. Before January 2001, data for Belgium-Luxembourg were combined. 18. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 13. Before January 2001, these data were included in data reported for the United Emirates (Trucial States). Kingdom. 19. Comprises Algeria, Gabon, Libya, and Nigeria. 14. Since December 1992, has excluded Bosnia, Croatia, and Slovenia. 20. Before January 2001, these data were included in "All other." 15. Includes the Bank for International Settlements and the European Central Bank. Since 21. Principally the International Bank for Reconstruction and Development. Excludes December 1992, has included all parts of the former U.S.S.R. (except Russia), and Bosnia, "holdings of dollars" of the International Monetary Fund. Croatia, and Slovenia. 22. Principally the Inter-American Development Bank. 16. Before January 2001, data for "Other Latin America" and "Other Caribbean" were 23. Asian, African, Middle Eastern, and European regional organizations, except the Bank combined in "Other Latin America and Caribbean." for International Settlements, which is included in "Other Europe." 17. Beginning January 2001, data for the Cayman Islands replaced data for the British West Indies. 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 2001 AArreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Feb. Mar.' Apr.' May' June' July' Aug.P 1 Total, all foreigners 734,995 793,139 904,777r 912,737r 980,742 990,151 996,701 990,583 975,323 945,302 2 Foreign countries 731,378 788,576 900,091r 909,420' 977,966 987,396 992,791 985,885 970,469 940,751 3 Europe 233,321 311,686 378,116' 404,494' 439,499 443,051 461,025 452,017 441,780 414,382 4 Austria 1,043 2,643 2,926 2,927 3,101 3,728 3,364 2,870 2,714 3,130 Belgium2 7,187 10,193 5,399 5,300 4,852 4,375 5,627 4,254 9,184 4,451 6 Denmark 2,383 1,669 3,272 3,499 3,242 2,954 2,505 2,268 1,345 1,570 7 Finland 1,070 2,020 7,382 7,102 7,185 8,901 8,800 8,460 8,666 8,350 8 France 15,251 29,142 40,035 44,038 45,555 46,378 42,189 48,835 56,997 56,325 9 Germany 15,923 29,205 36,834 39,234' 45,729 49,062 55,063 51,242 47,378 47,994 10 Greece 575 806 646 454 278 265 285 313 369 278 11 Italy 7,284 8,496 7,629 6,314' 6,975 7,274 6,867 8,111 5,466 6,227 1? Luxembourg2 n.a. n.a. n.a. 2,659 2,549 2,012 1,876 1,285 914 1,005 13 Netherlands 5,697 11,810 17,043' 21,515' 22,623 22,692 16,488 16,993 16,875 16,297 14 Norway 827 1,000 5,012 5,339 8,228 5,296 2,915 6,502 4,379 3,823 15 Portugal 669 1,571 1,382 1,312 1,426 1,535 1,173 1,304 1,050 1,232 16 Russia 789 713 517 561 1,008 813 715 911 589 878 17 Spain 5,735 3,796 2,604 3,959 4,722 3,445 4,275 3,594 3,955 3,431 18 Sweden 4,223 3,264 9,226 10,131 10,286 11,934 10,986 11,049 11,507 11,651 19 Switzerland 46,874 79,158 82,085 97,003 96,489 104,816 137,273 111,492 96,036 79,942 70 Turkey 1,982 2,617 3,059 2,989 2,697 2,770 2,596 2,530 2,499 2,408 71 United Kingdom 106,349 115,971 144,938' 139,706' 162,563 156,161 149,064 161,720 161,232 157,915 ?? Channel Islands and Isle of Man3 n.a. n.a. n.a. 3,069 3,250 3,151 3,838 3,275 3,417 3,162 23 Yugoslavia4 53 50 50 49 49 49 59 49 4 4 24 Other Europe and other former U.S.S.R.5 9,407 7,562 8,077 7,334' 6,692 5,440 5,067 4,960 7,204 4,309 25 Canada 47,037 37,206 39,858' 42,378' 43,838 45,094 44,583 50,153 43,308 42.239 76 Latin America 79,976 74,040 76,588' 74,184' 73,717 73,829 73,823 73,733 73,401 76,358 77 Argentina 9,552 10,894 11,546 11,613' 11,242 11,541 11,731 11,913 12,334 13,108 78 Brazil 16,184 16,987 20,567 20,009' 20,232 20,287 20,719 21,532 20,935 22,153 79 Chile 8,250 6,607 5,815' 5,960' 5,822 5,628 5,443 5,449 5,215 5,377 30 Colombia 6,507 4,524 4,370 3,941 4,022 3,720 3,740 3,641 3,625 3,719 31 Ecuador 1,400 760 635 584 534 526 482 523 515 505 37 Guatemala 1,127 1,135 1,244' 1,174' 1,175 1,171 1,226 1,192 1,140 1,266 33 Mexico 21,212 17,899 17,415' 17,904' 17,747 18,013 17,960 17,384 17,475 17,578 34 Panama 3,584 3,387 2,933' 2,906' 3,006 3,158 2,872 3,086 3,190 3,196 35 Peru 3,275 2,529 2,807' 2,672' 2,809 2,771 2,534 2,565 2,515 2,421 36 Uruguay 1,126 801 673' 453' 364 367 366 398 410 453 37 Venezuela 3,089 3,494 3,518' 3,262' 3,237 3,154 3,109 2,982 2,913 3,417 38 Other Latin America6 4,670 5,023 5,065' 3,706' 3,527 3,493 3,641 3,068 3,134 3,165 39 Caribbean 262,678 281,128 319,431' 299,096' 325,060 333,130 324,710 322,474 317,626 323,163 40 Bahamas 96,455 99,066 114,090 101,284 105,064 112,424 112,802 105,772 100,133 99,223 41 Bermuda 5,011 8,007 9,281' 7,050' 8,122 6,781 5,507 5,802 7,236 6,163 47 British West Indies7 153,749 167,189 189,296' n.a. n.a. n.a. n.a. n.a. n.a. n.a. 43 Cayman Islands7 n.a. n.a. n.a. 177,319' 199,351 200,022 195,790 200,073 198,918 202,297 44 Cuba 0 0 0 0 n.a. 1 n.a. n.a. n.a. n.a. 45 Jamaica 239 295 355 331 348 336 396 301 326 367 46 Netherlands Antilles 6,779 5,982 5,801 7,155' 6,921 9,384 5,738 5,749 5,617 9,655 47 Trinidad and Tobago 445 589 608 663 710 783 804 946 989 1,086 48 Other Caribbean6 n.a. n.a. n.a. 5,294' 4,544 3,399 3,673 3,831 4,407 4,372 49 98,607 75,143 77,887 81,478' 87,673 83,546 81,217 80,927 86,714 77,387 China 50 Mainland 1,261 2,110 1,606 1,530 1,357 3,171 2,252 4,387 3,785 2,191 51 Taiwan 1,041 1,390 2,247 1,371' 1,851 2,258 1,985 2,524 2,906 2,782 57 Hong Kong 9,080 5,903 6,669 8,507' 11,069 10,462 9,127 9,249 7,488 5,743 53 India 1,440 1,738 2,178 1,700 1,827 1,675 1,648 1,634 1,576 1,621 54 Indonesia 1,942 1,776 1,914 1,987 2,001 2,033 2,015 1,932 2,011 1,979 55 Israel 1,166 1,875 2,729 3,249 2,339 2,526 2,715 2,417 4,483 3,621 56 Japan 46,713 28,641 35,032 34,724' 39,250 32,908 34,442 32,338 36,953 34,857 57 Korea (South) 8,289 9,426 7,776 14,180' 12,264 13,971 11,673 11,258 12,803 10,703 58 Philippines 1,465 1,410 1,784 1,172 1,195 1,835 1,788 1,831 2,333 1,740 59 Thailand 1,807 1,515 1,381 1,244 1,258 1,062 1,380 1,541 1,119 1,433 60 Middle Eastern oil-exporting countries8 16,130 14,267 9,346 8,341 9,120 7,936 9,926 8,621 8,531 8,269 61 Other 8,273 5,092 5,225 3,473' 4,142 3,709 2,266 3,195 2,726 2,448 67 3,122 2,268 2,094 1,899 2,111 2,035 1,904 2,132 2,038 2,042 63 Egypt 257 258 201 271 343 308 466 530 391 379 64 Morocco 372 352 204 185 189 185 185 175 173 151 65 South Africa 643 622 309 544 586 444 289 528 608 661 66 Congo (formerly Zaire) 0 24 0 0 n.a. n.a. n.a. n.a. n.a. 2 67 Oil-exporting countries9 936 276 471 153 217 267 197 142 130 128 68 Other 914 736 909 746 776 831 767 757 736 721 69 Other countries 6,637 7,105 6,117' 5,891' 6,068 6,711 5,529 4,449 5,602 5,180 70 Australia 6,173 6,824 5,868' 5,592' 5,773 6,261 5,215 4,121 5,143 4,812 71 New Zealand10 n.a. n.a. n.a. 165 166 269 136 279 360 264 72 All other 464 281 249 134' 129 181 178 49 99 104 73 Nonmonetary international and regional organizations" . . 3,617 4,563 4,686 3,317 2,776 2,755 4,535 4,848 4,854 4,551 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 • December 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 2001 Feb. Mar.' Apr.' May' June' July1" Aug.P 1 Total 875,891 944,937 l,095,979r 1,202,490 1,185,643 2 Banks' claims 734,995 793,139 904,777r 912,737r 980,742 990,151 996,701 990,583 975,323 945,302 3 Foreign public borrowers 23,542 35,090 37,907 54,220 49,123 52,357 49,533 52,193 55,762 47,156 4 Own foreign offices2 484,535 529,682 630,137 610,299r 670,952 683,098 709,119 685,986 660,534 649,338 5 Unaffiliated foreign banks 106,206 97,186 95,277r 95,593' 101,718 95,262 79,947 91,384 94,603 84,993 6 Deposits 27,230 34,538 23,886 22,848 19,948 21,533 19,717 22,106 24,399 15,812 7 Other 78,976 62,648 71,391r 72,745r 81,770 73,729 60,230 69,278 70,204 69,181 8 All other foreigners 120,712 131,181 14 l,456r 152,625r 158,949 159,434 158,102 161,020 164,424 163,815 9 Claims of banks' domestic customers3 140,896 151,798 191,202 221,748 195,060 10 Deposits 79,363 88,006 100,327 116,370 9977,,777788 11 Negotiable and readily transferable instruments4 47,914 51,161 78,147 92,013 8811,,003344 12 Outstanding collections and other claims 13,619 12,631 12,728 13,365 16,248 MEMO 13 Customer liability on acceptances 4,520 4,553 4,258 2,993 3,054 14 Banks' loans under resale agreements5 n.a. n.a. n.a. 118,705 134,083 126,871 116,938 129,693 131,731 116,607 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 39,978 31,125 53,153 70,964 67,204 60,796 58,137 66,155 60,152 60,299 1. For banks' claims, data are monthly; for claims of banks' domestic customers, data are principally of amounts due from the head office or parent foreign bank, and from foreign for quarter ending with month indicated. branches, agencies, or wholly owned subsidiaries of the head office or parent foreign bank. Reporting banks include all types of depository institution as well as some brokers and 3. Assets held by reporting banks in the accounts of their domestic customers. dealers. 4. Principally negotiable time certificates of deposit and bankers acceptances, and commer- 2. For U.S. banks, includes amounts due from own foreign branches and foreign subsidi- cial paper. aries consolidated in quarterly Consolidated Reports of Condition filed with bank regulatory 5. Data available beginning January 2001. agencies. For agencies, branches, and majority-owned subsidiaries of foreign banks, consists 6. Includes demand and time deposits and negotiable and nonnegotiable certificates of deposit denominated in U.S. dollars issued by banks abroad. 3.20 BANKS' OWN CLAIMS ON UNAFFILIATED FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2000 2001 MMaattuurriittyy,, bbyy bboorrrroowweerr aanndd aarreeaa22 11999977 11999988 11999999 Sept. Dec. Mar. June 1 Total 276,550 250,418 267,082 262,590 274,089 307,616 301,972 By borrower 2 Maturity of one year or less 205,781 186,526 187,894 174,083 186,183 195,051 191,706 3 Foreign public borrowers 12,081 13,671 22,811 23,646 21,399 23,741 26,656 4 All other foreigners 193,700 172,855 165,083 150,437 164,784 171,310 165,050 5 Maturity of more than one year 70,769 63,892 79,188 88,507 87,906 112,565 110,266 6 Foreign public borrowers 8,499 9,839 12,013 15,818 15,838 24,951 24,978 7 All other foreigners 62,270 54,053 67,175 72,689 72,068 87,614 85,288 By area Maturity of one year or less 8 Europe 58,294 68,679 80,842 69,291 142,465 89,553 80,608 9 Canada 9,917 10,968 7,859 8,219 8,323 7,065 8,639 10 Latin America and Caribbean 97,207 81,766 69,498 65,824 151,861 12,212' 72,880 11 Asia 33,964 18,007 21,802 23,448 43,429 20,797 24,124 12 Africa 2,211 1,835 1,122 1,594 2,263 970 971 13 All other3 4,188 5,271 6,771 5,707 11,717 4,394 4,484 Maturity of more than one year 14 Europe 13,240 14,923 22,951 27,432 57,770 38,257 39,942 15 Canada 2,525 3,140 3,192 3,094 3,174 3,249 3,992 16 Latin America and Caribbean 42,049 33,442 39,051 41,158 82,684 50,110 47,027 17 Asia 10,235 10,018 11,257 13,228 19,536 17,180 15,232 18 Africa 1,236 1,232 1,065 902 1,567 763 774 19 All other3 1,484 1,137 1,672 2,693 5,954 3,006 3,299 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Nonbank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1999 2000 2001 Area or country 11999977 11999988 June Sept. Dec. Mar. June Sept. Dec. Mar. June 1 Total 721.8 1051.6 941.2 941.6 945.5 955.2r 991.lr 954.4r 1027,3r 1140.9r 1136.1 2 G-10 countries and Switzerland 242.8 217.7 234.7 219.4 243.4 272.6' 313.6' 280.3' 300.7' 333.0' 335.0 3 Belgium and Luxembourg 11.0 10.7 16.2 15.7 14.3 14.2 13.9 13.0 14.2 15.3 13.0 4 France 15.4 18.4 20.7 20.0 29.0 27.3 32.6 29.0' 29.6 30.0 35.9 5 Germany 28.6 30.9 32.1 37.4 38.7 37.3 31.5 37.6' 45.1 45.2 51.6 6 Italy 15.5 11.5 16.4 15.0 18.1 19.9' 20.5 18.6 21.3 20.4 23.7 7 Netherlands 6.2 7.8 13.3 11.7 12.3 17.0' 16.0' 17.5' 18.4 18.8 15.3 8 Sweden 3.3 2.3 2.6 3.6 3.0 3.9 3.5 4.3 3.6 4.7 4.7 9 Switzerland 7.2 8.5 8.3 8.8 10.3 10.1 13.8 10.9 13.2 13.9 13.5 10 United Kingdom 113.4 85.4 85.5 63.5 79.3 101.9 138.2 112.8' 115.6' 141.3' 127.5 11 Canada 13.7 16.8 17.1 17.9 16.3 17.3' 18.2' 18.5' 16.7 15.4 21.4 12 Japan 28.6 25.4 22.6 25.7 22.1 23.5 25.4 18.1 23.0 28.0 28.3 13 Other industrialized countries 65.5 69.0 79.7 71.7 68.4 62.8 75.3' 73.7' 74.5 75.7 70.1 14 Austria 1.5 1.4 2.8 3.0 3.5 2.6 2.8 3.5 4.1 3.8 3.6 15 Denmark 2.4 2.2 2.9 2.1 2.6 1.5 1.2 1.8 1.9 3.1 2.7 16 Finland 1.3 1.4 .9 .9 .9 .8 1.2 2.8 1.5 1.4 1.2 17 Greece 5.1 5.9 5.9 6.6 6.0 5.7 6.7' 6.4 8.3 4.1 3.6 18 Norway 3.6 3.2 3.0 3.8 3.3 3.0 4.6 8.5 8.3 10.2 7.9 19 Portugal .9 1.4 1.2 1.2 1.0 1.0 2.0 1.5 2.0 1.9 1.4 20 Spain 12.6 13.7 16.6 15.1 12.1 11.3 12.2 10.5 10.3 12.6 12.4 21 Turkey 4.5 4.8 4.9 4.7 4.8 5.1 5.6 5.6 5.9 5.1' 4.5 22 Other Western Europe 8.3 10.4 10.3 9.2 6.8 8.4 7.9' 8.3' 6.5 7.3 6.9 23 South Africa 2.2 4.4 4.7 4.0 3.8 4.9 4.6 4.2 3.6 4.1 3.8 24 Australia 23.1 20.3 26.6 21.1 23.5 18.6 26.3 20.5 22.1 21.9 22.1 25 OPEC2 26.0 27.1 26.2 30.1 31.4 28.9 32.1' 31.4' 28.9 28.2 27.0 26 Ecuador 1.3 1.3 1.1 .9 .8 .7 .7 .6 .6 .6 .6 27 Venezuela 2.5 3.2 3.2 3.0 2.8 3.0 2.9 2.9 2.5 2.7 2.6 28 Indonesia 6.7 4.7 5.0 4.4 4.2 3.9 4.1 4.4 4.6 4.4 4.1 29 Middle East countries 14.4 17.0 16.5 21.4 23.1 21.1 23.8' 22.4' 20.3 20.1 19.3 30 African countries 1.2 1.0 .5 .5 .5 .2 .7 1.2 .8 .5 .4 31 Non-OPEC developing countries 139.2 143.4 148.6 144.6 149.4 154.6' 158.1' 149.5' 145.5' 144.4' 152.5 Latin America 32 Argentina 18.4 23.1 22.8 22.8 23.2 22.4 21.6 21.4 21.4 20.8 19.7 33 Brazil 28.6 24.7 25.2 23.5 27.7 28.1 28.3 28.5' 28.8 29.3' 30.8 34 Chile 8.7 8.3 8.2 7.7 7.4 8.2 8.1 7.3 7.6 7.3 7.0 35 Colombia 3.4 3.2 3.1 2.7 2.5 2.5 2.4 2.4 2.4 2.4 2.4 36 Mexico 17.4 18.9 18.5 19.4 18.7 18.3 20.4 17.5 15.7 16.7 16.3 37 Peru 2.0 2.2 2.1 1.8 1.7 1.9 2.1 2.1 2.0 2.0 2.0 38 Other 4.1 5.4 5.5 5.5 5.9 6.5' 6.7' 6.2' 6.3' 8.5' 8.2 Asia China 39 Mainland 3.2 3.0 5.3 3.3 3.6 4.6 3.8 3.4 2.9 3.4 6.8 40 Taiwan 9.5 13.3 12.6 12.3 12.0 12.6 12.6 12.8 10.8 11.1 10.7 41 India 4.9 5.5 6.7 7.0 7.7 7.9 8.2 5.8 9.1 6.5 11.8 42 Israel .7 1.1 2.0 1.0 1.8 3.3 1.5 1.1 2.7 2.2 2.0 43 Korea (South) 15.6 13.7 15.3 16.0 15.2 17.2' 21.1 20.8 15.0 19.3 18.8 44 Malaysia 5.1 5.6 6.0 6.1 6.1 6.5 6.8 6.9 7.1 6.5 6.7 45 Philippines 5.7 5.1 5.7 5.8 6.2 5.3 5.3 4.7 5.1 5.2 5.4 46 Thailand 5.4 4.7 4.2 4.0 4.1 4.3 4.0 3.9 4.0 4.2 4.2 47 Other Asia 4.3 2.9 2.8 2.9 2.9 2.6 2.5 2.3 2.4 2.2 2.2 Africa 48 Egypt .9 1.3 1.4 1.3 1.4 1.4 1.3 1.1 1.1 1.2 1.2 49 Morocco .6 .5 .5 .5 .4 .3 .3 .4 .3 .3 .3 50 Zaire .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 51 Other Africa3 .8 1.0 1.0 1.0 1.0 .9 .9 .8 .7 .7 .7 52 Eastern Europe 9.1 5.5 5.7 5.4 5.2 6.3 9.4 9.0 10.1 9.5 9.5 53 Russia4 5.1 2.2 2.1 2.0 1.6 1.7 1.5 1.4 1.0 1.5 1.5 54 Other 4.0 3.3 3.7 3.4 3.6 4.7 7.9 7.6 9.1 8.0 8.0 55 Offshore banking centers 155.1 134.4 107.5 122.5 114.5 53.9 55.5 53.5' 61.7' 57.9 46.2 56 Bahamas 24.2 35.4 10.4 18.2 13.7 14.4 8.8 9.3 13.5 7.0 .0 57 Bermuda 9.8 4.6 5.7 8.2 8.0 7.3 6.3 6.3 9.0 7.9 5.7 58 Cayman Islands and other British West Indies 43.4 12.8 7.2 6.3 1.3 .0 5.1 5.9 14.6 14.3 12.6 59 Netherlands Antilles 14.6 2.6 1.3 9.1 1.7 2.5 2.6 1.9 1.9 2.9 1.7 60 Panama5 3.1 3.9 3.9 3.9 3.9 3.4 3.3 2.5 3.2 3.8 3.4 61 Lebanon 62 Hong Kong, China 32.2 23.3 22^0 22.4 21.0 22^2 20'7 20.6 18.7 21.7 22.4 63 Singapore 12.7 11.1 15.2 10.6 10.1 4.1 13.7' 12.6 15.2 14.5 12.9 64 Other .1 .2 .1 .2 .1 .1 .1 .1 .2 .1 .1 65 Miscellaneous and unallocated7 99.1 495.1 380.2 391.2 387.9 376.1 342.1 351.1 391.2 472.4' 478.4 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 • December 2001 3.22 LIABILITIES TO UNAFFILIATED FOREIGNERS Reported by Nonbanking Business Enterprises in the United States Millions of dollars, end of period 2000 2001 TTyyppee ooff lliiaabbiilliittyy,, aanndd aarreeaa oorr ccoouunnttrryy 11999977 11999988 11999999 Mar. June Sept. Dec. Mar. Junep 1 Total 57,382 46,570 53,044 53,489 70,534 76,644 73,904 74,484 68,519 2 Payable in dollars 41,543 36,668 37,605 35,614 47,864 51,451 48,931 46,870 42,225 3 Payable in foreign currencies 15,839 9,902 15,415 17,875 22,670 25,193 24,973 27,614 26,294 By type 4 Financial liabilities 26,877 19,255 27,980 29,180 44,068 49,895 47,419 48,461 42,314 5 Payable in dollars 12,630 10,371 13,883 12,858 22,803 26,159 25,246 23,369 18,061 6 Payable in foreign currencies 14,247 8,884 14,097 16,322 21,265 23,736 22,173 25,092 24,253 7 Commercial liabilities 30,505 27,315 25,064 24,309 26,466 26,749 26,485 26,023 26,205 8 Trade payables 10,904 10,978 12,857 12,401 13,764 13,918 14,293 12,657 13,213 y Advance receipts and other liabilities 19,601 16,337 12,207 11,908 12,702 12,831 12,192 13,366 12,992 10 Payable in dollars 28,913 26,297 23,722 22,756 25,061 25,292 23,685 23,501 24,164 n Payable in foreign currencies 1,592 1,018 1,318 1,553 1,405 1,457 2,800 2,522 2,041 By area or country Financial liabilities 12 Europe 18,027 12,589 23,241 24,050 30,332 36,175 34,172 37,990 33,173 13 Belgium and Luxembourg 186 79 31 4 163 169 147 112 98 14 France 1,425 1,097 1,659 1,849 1,702 1.299 1,480 1,557 1,222 15 Germany 1,958 2,063 1,974 1,880 1,671 2,132 2,168 2,745 2,463 lb Netherlands 494 1,406 1,996 1,970 2,035 2,040 2,016 2,169 1,763 17 Switzerland 561 155 147 97 137 178 104 116 93 18 United Kingdom 11,667 5,980 16,521 16,579 21,463 28,601 26,362 29,241 25,751 19 Canada 2,374 693 284 313 714 249 411 719 628 20 Latin America and Caribbean 1,386 1,495 892 846 2,874 3,447 4,125 3,651 2,118 21 Bahamas 141 7 1 1 78 105 6 18 40 22 Bermuda 229 101 5 1 1,016 1,182 1,739 1,837 461 23 Brazil 143 152 126 128 146 132 148 26 21 24 British West Indies 604 957 492 489 463 501 406 410 408 25 Mexico 26 59 25 22 26 35 26 32 20 26 Venezuela 1 2 0 0 0 0 2 1 1 27 Asia 4,387 3,785 3,437 3,275 9,453 9,320 7,965 5,389 5,639 28 Japan 4,102 3,612 3,142 2,985 6,024 4,782 6,216 4,779 3,297 29 Middle Eastern oil-exporting countries1 27 0 4 4 5 7 11 15 8 30 Africa 60 28 28 28 33 48 52 38 61 31 Oil-exporting countries2 0 0 0 0 0 0 0 0 0 32 All other3 643 665 98 668 662 656 694 674 695 Commercial liabilities 33 Europe 10,228 10,030 9,262 8,646 9,293 9,411 9,629 8,950 8,723 34 Belgium and Luxembourg 666 278 140 78 178 201 293 251 297 35 France 764 920 672 539 711 716 979 689 665 36 Germany 1,274 1,392 1,131 914 948 1,023 1,047 982 1,017 37 Netherlands 439 429 507 648 562 424 300 373 343 38 Switzerland 375 499 626 536 565 647 502 656 697 39 United Kingdom 4,086 3,697 3,071 2,661 2,982 2,951 2,847 2,619 2,706 40 Canada 1,175 1,390 1,775 2,024 2,053 1,889 1,933 1,627 2,043 41 Latin America and Caribbean 2,176 1,618 2,310 2,286 2,607 2,443 2.381 2.166 2,292 42 Bahamas 16 14 22 9 10 15 31 5 31 43 Bermuda 203 198 152 287 300 377 281 280 367 44 Brazil 220 152 145 115 119 167 114 239 279 45 British West Indies 12 10 48 23 22 19 76 64 21 46 Mexico 565 347 887 805 1.073 1,079 841 792 762 47 Venezuela 261 202 305 193 239 124 284 243 218 48 Asia 14,966 12,342 9,886 9,681 10,965 11,133 10,983 11,558 11,384 49 Japan 4,500 3,827 2,609 2,274 2,200 1.998 2,757 2,432 2,377 50 Middle Eastern oil-exporting countries' 3,111 2,852 2,551 2,308 3,489 3,706 2,832 3,359 3,087 51 Africa 874 794 950 943 950 1,220 948 1,072 1,115 52 Oil-exporting countries2 408 393 499 536 575 663 483 566 539 53 Other3 1,086 1,141 881 729 598 653 614 650 648 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 2000 2001 Type of claim, and area or country 11999977 11999988 11999999 Mar. June Sept. Dec. Mar. Junep 1 Total 68,128 77,462 76,669 84,266 80,731 94,803 90,157 109,443 98,038 2 Payable in dollars 62,173 72,171 69,170 74,331 72,300 82,872 79,558 96,230 88,258 3 Payable in foreign currencies 5,955 5,291 7,472 9,935 8,431 11,931 10,599 13,213 9,780 By type 4 Financial claims 36,959 46,260 40,231 47,798 44,303 58,303 53,031 74,458 61,921 5 Deposits 22,909 30,199 18,566 23,316 17,462 30,928 23,374 29,119 29,587 6 Payable in dollars 21,060 28,549 16,373 21,442 15,361 27,974 21,015 26,944 27,380 7 Payable in foreign currencies 1,849 1,650 2,193 1,874 2,101 2,954 2,359 2,175 2,207 8 Other financial claims 14,050 16,061 21,665 24,482 26,841 27,375 29,657 45,339 32,334 9 Payable in dollars 11,806 14,049 18,593 19,659 22,384 20,541 25,142 37,480 27,862 10 Payable in foreign currencies 2,244 2,012 3,072 4,823 4,457 6,834 4,515 7,859 4,472 11 Commercial claims 31,169 31,202 36,438 36,468 36,428 36,500 37,126 34,985 36,117 12 Trade receivables 27,536 27,202 32,629 31,443 31,283 31,530 33,104 30,493 31,169 13 Advance payments and other claims .... 3,633 4,000 3,809 5,025 5,145 4,970 4,022 4,492 4,948 14 Payable in dollars 29,307 29,573 34,204 33,230 34,555 34,357 33,401 31,806 33,016 15 Payable in foreign currencies 1,862 1,629 2,207 3,238 1,873 2,143 3,725 3,179 3,101 By area or country Financial claims 16 Europe 14,999 12,294 13,023 16,789 18,254 23,706 23,136 31,946 23,975 17 Belgium and Luxembourg 406 661 529 540 317 304 296 430 262 18 France 1,015 864 967 1,835 1,292 1,477 1,206 3,149 1,376 19 Germany 427 304 504 669 576 696 848 1,405 1,163 20 Netherlands 677 875 1,229 1,981 1,984 2,486 1,396 2,313 1,072 21 Switzerland 434 414 643 612 624 626 699 605 653 22 United Kingdom 10,337 7,766 7,561 9,044 11,668 16,191 15,900 21,070 15,913 23 Canada 3,313 2,503 2,553 3,175 5,799 7,517 4,576 4,854 4,787 24 Latin America and Caribbean 15,543 27,714 18,206 21,945 14,874 21,691 19,317 28,674 24,433 25 Bahamas 2,308 403 1,593 1,299 655 1,358 1,353 561 818 26 Bermuda 108 39 11 11 34 22 19 1,729 426 27 Brazil 1,313 835 1,476 1,646 1,666 1,568 1,827 1,564 1,877 28 British West Indies 10,462 24,388 12,099 15,814 7,751 15,722 12,596 16,366 12,539 29 Mexico 537 1,245 1,798 1,979 2,048 2,280 2,448 2,459 2,633 30 Venezuela 36 55 48 65 78 101 87 31 66 31 Asia 2,133 3,027 5,457 4,430 3,923 4,002 4,697 7,444 6,829 32 Japan 823 1,194 3,262 2,021 1,410 1,726 1,631 4,065 1,698 33 Middle Eastern oil-exporting countries1 11 9 23 29 42 85 80 70 76 34 Africa 319 159 286 232 320 284 411 423 476 35 Oil-exporting countries2 15 16 15 15 39 3 57 42 35 36 Allother3 652 563 706 1,227 1,133 1,103 894 1,117 1,421 Commercial claims 12,120 13,246 16,389 16,118 15,935 16,486 15,938 14,534 14,586 37 Europe 328 238 316 271 425 393 452 395 417 38 Belgium and Luxembourg 1,796 2,171 2,236 2,520 2,693 2.921 3,095 3,480 3,173 39 France 1,614 1,822 1,960 2,034 1,905 2,159 1,982 1,763 2,002 40 Germany 597 467 1,429 1,337 1,242 1,310 1,729 757 854 41 Netherlands 554 483 610 611 562 684 763 666 472 42 Switzerland 3,660 4,769 5,827 5,354 4,937 5,193 4,502 4,031 3,840 43 United Kingdom 44 Canada 2,660 2,617 2,757 3,088 3,250 2,953 3,502 3,393 3,500 45 Latin America and Caribbean 5,750 6,296 5,959 5,899 5,792 5,788 5,851 5,306 6,119 46 Bahamas 27 24 20 15 48 75 37 20 39 47 Bermuda 244 536 390 404 381 387 376 418 650 48 Brazil 1,162 1,024 905 849 894 981 957 1,057 1,376 49 British West Indies 109 104 181 95 51 55 137 131 135 50 Mexico 1,392 1,545 1,678 1,529 1,565 1,612 1,507 1,418 1,420 51 Venezuela 576 401 439 435 466 379 328 292 321 52 Asia 8,713 7,192 9,165 9,101 9,172 8,986 9,630 9,544 9,727 53 Japan 1,976 1,681 2,074 2,082 1,881 2,074 2,796 2,575 3,152 54 Middle Eastern oil-exporting countries1 1,107 1,135 1,625 1,533 1,241 1,199 1,024 966 1,054 55 Africa 680 711 631 716 766 895 672 773 674 56 Oil-exporting countries2 119 165 171 82 160 392 180 165 154 57 Other3 1,246 1,140 1,537 1,546 1,513 1,392 1,572 1,435 1,511 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 • December 2001 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2001 2001 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 J A a u n g - . Feb. Mar.r Apr/ Mayr Juner Julyr Aug/ U.S. corporate securities Stocks 1 Foreign purchases 2,340,659 3,605,196 2,108,071 258,233r 284,292 249,747 276,934 259,635 244,897 233,704 2 Foreign sales 2,233,137 3,430,306 2,012,760 248,789r 276,864 243,122 259,604 249,196 233,422 224,912 3 Net purchases, or sales (-) 107,522 174,890 95,311 9,444r 7,428 6,625 17,330 10,439 11,475 8,792 4 Foreign countries 107,578 174,903 95,148 9,473' 7,302 6,647 17,315 10,418 11,460 8,793 5 Europe 98,060 164,656 72,574 13,713 7,983 3,694 9,805 9.307 6,704 9,039 6 France 3,813 5,727 7,101 1,869 1,041 105 338 3,044 35 426 / Germany 13,410 31,752 6,628 1,217 174 199 1,025 133 1,048 452 8 Netherlands 8,083 4,915 7,642 1,379 790 1,112 573 334 654 594 9 Switzerland 5,650 11,960 2,637 775 1,237 139 448 298 -228 -102 10 United Kingdom 42,902 58,736 30,683 5,120 3,280 598 4,501 4,006 3,750 6,364 11 Channel Islands and Isle of Man1 n.a. n.a. -419 -32 -110 -144 59 -168 -42 31 12 Canada -335 5,956 8,618 468 2,464 1,567 628 130 948 923 13 Latin America and Caribbean 5,187 -17,812 -4,740 -4,927 -3,516 -1,168 3,436 -1,038 65 -3,037 14 Middle East2 -1,066 9,189 1,495 262r 442 -56 -173 234 513 827 is Other Asia 4,445 12,494 17,860 123r 57 2,966 3,532 1,724 3,220 839 lb Japan 5,723 2,070 6,123 -904r -115 2,048 1,088 1,000 1,956 214 1/ Africa 372 415 -290 52 93 -44 9 -82 -20 64 18 Other countries 915 5 -369 -218 -221 -312 78 143 30 138 19 Nonmonetary international and regional organizations -56 -11 163 -29 126 -22 15 21 15 -1 Bonds3 20 Foreign purchases 854,692 1,208.386 1,229,175 147,629' 169,850 148,930 169,528 158,157 138,841 157,998 21 Foreign sales 602,100 871,416 954,314 108,601' 123,603 111,505 129,146 125,693 111,998 132,509 22 Net purchases, or sales (-) 252,592 336,970 274,861 39,028r 46,247 37,425 40,382 32,464 26,843 25,489 23 Foreign countries 252,994 337,074 274,553 38,987' 46,029 37,399 40,370 32,445 26,951 25,291 24 Europe 140,674 180,917 147,214 22,064 26,457 18,169 26,116 14,740 11,904 10,315 25 France 1,870 2,216 4,400 660 1,262 519 817 618 1,154 -1,035 26 Germany 7,723 4,067 8,253 1,352 911 1,639 1,500 114 -185 472 2/ Netherlands 2,446 1,130 1,790 496 92 -41 509 576 -210 -296 28 Switzerland 4,553 3,973 4,989 782 1,564 709 399 294 291 629 29 United Kingdom 106,344 141,223 115,063 17,893 20,347 12,477 21,489 12,575 9,507 9,524 30 Channel Islands and Isle of Man1 n.a. n.a. 1,079 118 115 318 -218 330 203 106 31 Canada 6,043 13,287 2.987 1,031 309 1,158 240 822 485 -1,434 32 Latin America and Caribbean 58,783 59,444 58,787 8,009 6,564 7.546 9,167 7,387 6,222 8,923 33 Middle East1 1,979 2,076 1,136 443 624 129 -395 -24 -345 -22 34 Other Asia 42,817 78,794 64,313 7,130' 11,795 10,329 5,412 9,646 8,815 7,708 33 Japan 17,541 39,356 17.640 882' 5,596 344 -480 5,187 3,452 1,785 36 Africa 1,411 938 465 46 38 -33 14 160 79 132 37 Other countries 1,287 1,618 -349 264 242 101 -184 -286 -209 -331 38 Nonmonetary international and regional organizations -402 -70 309 41 218 26 12 19 -108 198 Foreign securities 39 Stocks, net purchases, or sales (-) 15,640 -13,088 -48,055 -3,155' -15,264 -4,675 -8,098 -5,292 -5,031 -2,402 40 Foreign purchases 1,177,303 1,802,185 1,002.102 130,124' 133,205 121,345 136,046 122,243 115,956 95,872 41 Foreign sales 1,161,663 1,815,273 1,050,157 133,279' 148,469 126,020 144,144 127,535 120,987 98,274 42 Bonds, net purchases, or sales (-) -5,676 -4,054 21,854 1,235' -1,290 5,487 2,267 1,048 5,629 9,400 43 Foreign purchases 798,267 958,932 811,181 102,395' 115,676 93,828 101,383 101,950 91,585 87,581 44 Foreign sales 803,943 962,986 789,327 101,160' 116,966 88,341 99,116 100,902 85,956 78,181 45 Net purchases, or sales (-), of stocks and bonds 9,964 -17,142 -26,201 -1,920' -16,554 812 -5,831 -4,244 598 6,998 46 Foreign countries 9,679 -17,278 -25,883 -1,959' -16,249 824 -5,976 -4,241 630 6,858 47 Europe 59,247 -25,386 -11,629 -1,737 -13,687 3,616 ^1,803 3,392 1,026 6,037 48 Canada -999 -3,888 1,333 1,588 844 -1,535 931 405 299 -1,965 49 Latin America and Caribbean -4,726 -15.688 -378 808 17 1,295 3,047 -6,662 ^144 786 50 Asia -42,961 24,488 -12,907 -2,223' -3,511 -1,928 -4,379 -485 69 1,630 51 Japan —43,637 20,970 -14,390 -2,990' -4,067 -3,494 -3,670 -44 118 596 52 Africa 710 943 -282 -15 24 93 -132 -41 -111 -24 53 Other countries -1,592 2,253 -2,020 -380 64 -717 -640 -844 -209 394 54 Nonmonetary international and regional organizations 285 150 -317 39 -305 -12 145 -3 -32 140 1. Before January 2001, data 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 Transactions' Millions of dollars; net purchases, or sales (-) during period 2001 2001 Area or country 1999 2000 JJaann..-- Feb. Mar. Apr. May June July Aug.P AAuugg.. 1 Total estimated -9,953 -54,032 -17,713 7,214r 4,897' -13,711 3,076 -3,445 -11,494 4,408 2 Foreign countries -10,518 -53,571 -17,054 7,175' 4,899' -13,517 2,831 -3,237 -11,668 4,588 3 Europe -38,228 -50,704 -16,516 -337 5,363 -5,599 -498 -2,522 -8,223 300 4 Belgium2 -81 73 -819 -529' -152 240 -216 -25 -343 42 5 Germany 2,285 -7,304 -2,292 -3,180 1,236 1,769 1,176 -1,517 -970 67 6 Luxembourg2 n.a. n.a. 564 9 ^401 204 92 145 168 -64 7 Netherlands 2,122 2,140 -1,090 2,808 -3,704 -2,488 -1,730 1,117 1,263 2,437 8 Sweden 1,699 1,082 -2,189 -1,039 -993 195 -386 -663 -114 593 9 Switzerland -1,761 -10,326 223 161 -120 116 -912 -3 270 -44 10 United Kingdom -20,232 -33,669 -11,164 937 9,838 ^1,736 1,120 -3,180 -7,844 -4,604 11 Channel Islands & Isle of Man3 n.a. n.a. -15 -68 222 -31 -9 22 -64 11 12 Other Europe and former U.S.S.R -22,260 -2,700 266 564 -563 -868 367 1,582 -589 1,862 13 Canada 7,348 -550 -2,645 -554 -169 1,248 745 161 -1,653 -356 14 Latin America and Caribbean -7,523 1,709 3,620 827 -7,095 140 -3,812 1,893 3,729 15 Venezuela 362 1,288 274 292 -142 -148 51 -126 248 -128 16 Other Latin America and Caribbean 1,661 -11,581 7,568 4,279 3,009 -3,228 1,587 -545 -880 85 17 Netherlands Antilles -9,546 5,379 -6,133 -951 -2,040 -3,719 -1,498 -3,141 2,525 3,772 18 Asia 29,359 1,639 111 4,590' -119' -2,928 2,704 3,464 -3,940 575 19 Japan 20,102 10.580 -1,653 1,671' -1,504' 3,099 4,658 -3,920 -2,126 324 20 Africa -3,021 -414 -289 36 -60 27 -6 -12 -65 -118 21 Other 1,547 1,372 576 -180 -943 830 -254 -516 320 458 22 Nonmonetary international and regional organizations 565 -461 -659 39 -2 -194 245 -208 174 -180 23 International 190 -483 -339 -194 -11 -213 393 -52 -90 103 24 Latin American Caribbean regional 666 76 22 -4 10 25 -A -2 -1 -3 MEMO 25 Foreign countries -10,518 -53,571 -17,054 7,175' 4,899' -13,517 2,831 -3,237 -11,668 4,588 26 Official institutions -9,861 -6,302 -8,626 667 249 -9,040 913 -3,243 -741 343 27 Other foreign -657 -47,269 -8,428 6,508' 4,650' -AMI 1,918 6 -10,927 4,245 Oil-exporting countries 28 Middle East 2,207 3,483 -3,220 -719 -1,240 -383 -120 316 -590 -308 29 Africa5 0 0 0 0 2 0 1 3 2 -2 1. Official and private transactions in marketable U.S. Treasury securities having an 3. Before January 2001, these data were included in the data reported for the United original maturity of more than one year. Data are based on monthly transactions reports. Kingdom. Excludes nonmarketable U.S. Treasury bonds and notes held by official institutions of foreign 4. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab countries. Emirates (Trucial States). 2. Before January 2001, combined data reported for Belgium and Luxembourg. 5. Comprises Algeria, Gabon, Libya, and Nigeria. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A62 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 2001 IItteemm May June July Aug. Sept. Oct. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 62.91 64.54 58.15 51.99 51.80 50.89 52.46 50.36 50.42 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 2.2926 2.3788 2.4731 2.5122 2.6767 2.7408 5 Canada/dollar 1.4836 1.4858 1.4855 1.5411 1.5245 1.5308 1.5399 1.5679 1.5717 6 China, P.R./yuan 8.3008 8.2783 8.2784 8.2770 8.2770 8.2769 8.2770 8.2768 8.2768 7 Denmark/krone 6.7030 6.9900 8.0953 8.5256 8.7397 8.6442 8.2632 8.1654 8.2186 8 European Monetary Union/euro3 n.a. 1.0653 0.9232 0.8753 0.8530 0.8615 0.9014 0.9114 0.9050 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 n.a. n.a. n.a. n.a. n.a. n.a. 13 Hong Kong/dollar 7.7467 7.7594 7.7924 7.7999 7.7997 7.7999 7.7997 7.7997 7.7999 14 India/rupee 41.36 43.13 45.00 46.95 47.04 47.18 47.17 47.75 48.05 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 130.99 113.73 107.80 121.77 122.35 124.50 121.37 118.61 121.45 18 Malaysia/ringgit 3.9254 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8001 19 Mexico/peso 9.152 9.553 9.459 9.148 9.088 9.168 9.133 9.425 9.339 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 42.18 41.41 40.81 43.14 41.73 41.39 22 Norway/krone 7.5521 7.8071 8.8131 9.1380 9.3014 9.2566 8.9427 8.7691 8.8329 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 1.8141 1.8170 1.8233 1.7613 1.7494 1.8113 25 South Africa/rand 5.5417 6.1191 6.9468 7.9789 8.0595 8.2094 8.3115 8.6756 9.2804 26 South Korea/won 1,400.40 1,189.84 1,130.90 1,298.90 1,295.05 1,305.24 1,285.65 1,293.83 1,302.36 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 90.848 90.371 90.314 89.994 90.157 90.954 29 Sweden/krona 7.9522 8.2740 9.1735 10.3513 10.7930 10.7603 10.3329 10.6353 10.5661 30 Switzerland/franc 1.4506 1.5045 1.6904 1.7528 1.7856 1.7570 1.6808 1.6338 1.6357 31 Taiwan/dollar 33.547 32.322 31.260 33.203 34.328 34.821 34.639 34.575 34.583 32 Thailand/baht 41.262 37.887 40.210 45.525 45.263 45.641 44.907 44.331 44.750 33 United Kingdom/pound2 165.73 161.72 151.56 142.65 140.20 141.48 143.72 146.38 145.01 34 Venezuela/bolivar 548.39 606.82 680.52 714.86 717.27 722.72 731.97 743.46 743.22 Indexes4 NOMINAL 35 Broad (January 1997=100)5 116.48 116.87 119.93 126.77 127.58 128.07 125.97 126.28 127.20 36 Major currencies (March 1973=100)6 95.79 94.07 98.34 105.03 105.91 106.07 103.77 103.32 104.27 37 Other important trading partners (January 1997=100)' 126.03 129.94 130.26 135.92 136.43 137.37 136.03 137.53 138.21 REAL 38 Broad (March 1973=100)5 99.23r 98.55r 102.21r 108.76r 109.64' 109.87' 108.33' 109.28 39 Major currencies (March 1973=1 OO)6 97.21' 96.64r 102.83r 110.90r 112.03' 112.17' 109.61' 109.46' 110.96 40 Other important trading partners (March 1973-100)7 108.21r 107.33r 107.79' 112.74r 113.35r 113.71' 112.38' 113.60' 113.88 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 Baord'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 the foreign exchange value of the dollar, see Federal Reserve Bulletin, vol. 2. U.S. cents per currency unit. 84 (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. Euro equals 6. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 13.7603 Austrian schillings 1936.27 Italian lire broad index currencies that circulate widely outside the country of issue. The weight for each 40.3399 Belgian francs 40.3399 Luxembourg francs currency is its broad index weight scaled so that the weights of the subset of currencies in the 5.94573 Finnish markkas 2.20371 Netherlands guilders index sum to one. 6.55957 French francs 200.482 Portuguese escudos 7. Weighted average of the foreign exchange value of the U.S. dollar against a subset of 1.95583 German marks 166.386 Spanish pesetas broad index currencies that do not circulate widely outside the country of issue. The weight .787564 Irish pounds 340.750 Greek drachmas for each currency is its broad index weight scaled so that the weights of the subset of currencies in the index sum to one. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A63 Guide to Statistical Releases and Special Tables STATISTICAL RELEASES—List Published Semiannually, with Latest Bulletin Reference Issue Page Anticipated schedule of release dates for periodic releases December 2001 A72 SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks September 30, 2000 February 2001 A64 December 31, 2000 May 2001 A64 March 31,2001 August 2001 A64 June 30, 2001 November 2001 A64 Terms of lending at commercial banks November 2000 February 2001 A66 February 2001 May 2001 A66 May 2001 August 2001 A66 August 2001 November 2001 A66 Assets and liabilities of U.S. branches and agencies of foreign banks June 30, 2000 November 2000 A72 September 30, 2000 February 2001 A72 December 31, 2000 May 2001 A72 March 31,2001 August 2001 A72 Pro forma balance sheet and income statements for priced service operations September 30, 2000 February 2001 A76 March 31,2001 August 2001 A76 June 30,2001 October 2001 A64 Residential lending reported under the Home Mortgage Disclosure Act 1999 September 2000 A64 2000 September 2001 A64 Disposition of applications for private mortgage insurance 1999 September 2000 A73 2000 September 2001 A73 Small loans to businesses and farms 1999 September 2000 A76 2000 September 2001 A76 Community development lending reported under the Community Reinvestment Act 1999 September 2000 A79 2000 September 2001 A79 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Federal Reserve Bulletin • December 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 held, 5, 10, 11, 27 Business loans (See Commercial and industrial loans) Federal Reserve credit, 5, 6, 10, 12 Federal Reserve notes, 10 CAPACITY utilization, 43 Federally sponsored credit agencies, 30 Capital accounts Finance companies Commercial banks, 15-21 Assets and liabilities, 32 Federal Reserve Banks, 10 Business credit, 33 Certificates of deposit, 23 Loans, 36 Commercial and industrial loans Paper, 22, 23 Commercial banks, 15-21 Float, 5 Weekly reporting banks, 17, 18 Flow of funds, 37-41 Commercial banks Foreign currency operations, 10 Assets and liabilities, 15-21 Foreign deposits in U.S. banks, 5 Commercial and industrial loans, 15-21 Foreign exchange rates, 62 Consumer loans held, by type and terms, 36 Foreign-related institutions, 20 Real estate mortgages held, by holder and property, 35 Foreign trade, 51 Time and savings deposits, 4 Foreigners Commercial paper, 22, 23, 32 Claims on, 52, 55-7, 59 Condition statements (See Assets and liabilities) Liabilities to, 51-4, 58, 60, 61 Construction, 42, 46 Consumer credit, 36 Consumer prices, 42 GOLD Consumption expenditures, 48, 49 Certificate account, 10 Corporations Stock, 5, 51 Government National Mortgage Association, 30, 34, 35 Profits and their distribution, 32 Gross domestic product, 48, 49 Security issues, 31, 61 Cost of living (See Consumer prices) Credit unions, 36 HOUSING, new and existing units, 46 Currency in circulation, 5, 13 Customer credit, stock market, 24 INCOME, personal and national, 42, 48, 49 Industrial production, 42, 44 DEBT (See specific types of debt or securities) Insurance companies, 27, 35 Demand deposits, 15—21 Interest rates Depository institutions Bonds, 23 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4-6, 12 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22 Discount rates at Reserve Banks and at foreign central banks and International capital transactions of United States, 50-61 foreign countries (See Interest rates) International organizations, 52, 53, 55, 58, 59 Discounts and advances by Reserve Banks (See Loans) Inventories, 48 Dividends, corporate, 32 Investment companies, issues and assets, 32 Investments (See also specific types) EMPLOYMENT, 42 Commercial banks, 4, 15-21 Euro, 62 Federal Reserve Banks, 10, 11 Financial institutions, 35 FARM mortgage loans, 35 Federal agency obligations, 5, 9-11, 28, 29 LABOR force, 42 Federal credit agencies, 30 Life insurance companies (See Insurance companies) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 15-21 Savings institutions, 35, 36, 37-41 Federal Reserve Banks, 5-7, 10, 11 Securities (See also specific types) Financial institutions, 35 Federal and federally sponsored credit agencies, 30 Insured or guaranteed by United States, 34, 35 Foreign transactions, 60 New issues, 31 MANUFACTURING Prices, 24 Capacity utilization, 43 Special drawing rights, 5, 10, 50, 51 Production, 43, 45 State and local governments Margin requirements, 24 Holdings of U.S. government securities, 27 Member banks, reserve requirements, 8 New security issues, 31 Mining production, 45 Rates on securities, 23 Mobile homes shipped, 46 Stock market, selected statistics, 24 Monetary and credit aggregates, 4, 12 Stocks (See also Securities) Money and capital market rates, 23 New issues, 31 Money stock measures and components, 4, 13 Prices, 24 Mortgages (See Real estate loans) Mutual funds, 13, 32 Student Loan Marketing Association, 30 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 NATIONAL defense outlays, 26 National income, 48 Thrift institutions, 4 (See also Credit unions and Savings institutions) OPEN market transactions, 9 Time and savings deposits, 4, 13, 15-21 Trade, foreign, 51 PERSONAL income, 49 Treasury cash, Treasury currency, 5 Prices Treasury deposits, 5, 10, 25 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 Affairs, Department of, 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, 37^1 National income accounts, 48 YIELDS {See Interest rates) Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Federal Reserve Bulletin • December 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 BANKING SUPERVISION AND REGULATION—Continued LYNN S. FOX, Assistant to the Board MICHELLE A. SMITH, Assistant to the Board DAVID M. WRIGHT, Assistant Director DONALD J. WINN, Assistant to the Board SIDNEY M. SUSSAN, Adviser DONALD L. KOHN, Adviser to the Board WILLIAM C. SCHNEIDER, JR., Project Director, WINTHROP P. HAMBLEY, Deputy Congressional Liaison National Information Center NORMAND R.V. BERNARD, Special Assistant to the Board JOHN LOPEZ, Special Assistant to the Board DIVISION OF INTERNATIONAL FINANCE BOB STAHLY MOORE, Special Assistant to the Board KAREN H. JOHNSON, Director ROSANNA PIANALTO-CAMERON, Special Assistant to the I DAVID H. HOWARD, Deputy Director DAVID W. SKIDMORE, Special Assistant to the Board THOMAS A. CONNORS, Associate Director DALE W. HENDERSON, Associate Director LEGAL DIVISION RICHARD T. FREEMAN, Deputy Associate Director J. VIRGIL MATTINGLY, JR., General Counsel WILLIAM L. HELKIE, Deputy Associate Director SCOTT G. ALVAREZ, Associate General Counsel STEVEN B. KAMIN, Deputy Associate Director RICHARD M. ASHTON, Associate General Counsel JON W. FAUST, Assistant Director KATHLEEN M. O'DAY, Associate General Counsel JOSEPH E. GAGNON, Assistant Director STEPHANIE MARTIN, Assistant General Counsel MICHAEL P. LEAHY, Assistant Director ANN E. MISBACK, Assistant General Counsel NATHAN D. SHEETS, Assistant Director STEPHEN L. SICILIANO, Assistant General Counsel RALPH W. TRYON, Assistant Director KATHERINE H. WHEATLEY, Assistant General Counsel CARY K. WILLIAMS, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS OFFICE OF THE SECRETARY DAVID J. STOCKTON, Director EDWARD C. ETTIN, Deputy Director JENNIFER J. JOHNSON, Secretary DAVID W. WILCOX, Deputy Director ROBERT DEV. FRIERSON, Deputy Secretary WILLIAM R. JONES, Associate Director MARGARET M. SHANKS, Assistant Secretary MYRON L. KWAST, Associate Director STEPHEN D. OLINER, Associate Director DIVISION OF BANKING SUPERVISION PATRICK M. PARKINSON, Associate Director AND REGULATION LAWRENCE SLIFMAN, Associate Director RICHARD SPILLENKOTHEN, Director CHARLES S. STRUCKMEYER, Associate Director STEPHEN C. SCHEMERING, Deputy Director MARTHA S. SCANLON, Deputy Associate Director HERBERT A. BIERN, Senior Associate Director JOYCE K. ZICKLER, Deputy Associate Director ROGER T. COLE, Senior Associate Director J. NELLIE LIANG, Assistant Director WILLIAM A. RYBACK, Senior Associate Director S. WAYNE PASSMORE, Assistant Director GERALD A. EDWARDS, JR., Associate Director DAVID L. REIFSCHNEIDER, Assistant Director STEPHEN M. HOFFMAN, JR., Associate Director JANICE SHACK-MARQUEZ, Assistant Director JAMES V. HOUPT, Associate Director WILLIAM L. WASCHER, Assistant Director JACK P. JENNINGS, Associate Director ALICE PATRICIA WHITE, Assistant Director MICHAEL G. MARTINSON, Associate Director GLENN B. CANNER, Senior Adviser MOLLY S. WASSOM, Associate Director DAVID S. JONES, Senior Adviser HOWARD A. AMER, Deputy Associate Director THOMAS D. SIMPSON, Senior Adviser NORAH M. BARGER, Deputy Associate Director BETSY CROSS, Deputy Associate Director DIVISION OF MONETARY AFFAIRS DEBORAH P. BAILEY, Assistant Director BARBARA J. BOUCHARD, Assistant Director VINCENT R. REINHART, Director ANGELA DESMOND, Assistant Director DAVID E. LINDSEY, Deputy Director JAMES A. EMBERSIT, Assistant Director BRIAN F. MADIGAN, Deputy Director CHARLES H. HOLM, Assistant Director RICHARD D. PORTER, Deputy Associate Director HEIDI WILLMANN RICHARDS, Assistant Director WILLIAM C. WHITESELL, Assistant Director WILLIAM G. SPANIEL, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A67 EDWARD M. GRAMLICH DIVISION OF CONSUMER DIVISION OF RESERVE BANK OPERATIONS AND COMMUNITY AFFAIRS AND PAYMENT SYSTEMS DOLORES S. SMITH, Director LOUISE L. ROSEMAN, Director GLENN E. LONEY, Deputy Director PAUL W. BETTGE, Associate Director SANDRA F. BRAUNSTEIN, Assistant Director JEFFREY C. MARQUARDT, Associate Director MAUREEN P. ENGLISH, Assistant Director KENNETH D. BUCKLEY, Assistant Director ADRIENNE D. HURT, Assistant Director TILLENA G. CLARK, Assistant Director IRENE SHAWN MCNULTY, Assistant Director JOSEPH H. HAYES, JR., Assistant Director EDGAR A. MARTINDALE III, Assistant Director OFFICE OF MARSHA W. REIDHILL, Assistant Director STAFF DIRECTOR FOR MANAGEMENT JEFF J. STEHM, Assistant Director STEPHEN R. MALPHRUS, Staff Director OFFICE OF THE INSPECTOR GENERAL MANAGEMENT DIVISION BARRY R. SNYDER, Inspector General DONALD L. ROBINSON, Deputy Inspector General STEPHEN J. CLARK, Associate Director, Finance Function DARRELL R. PAULEY, Associate Director, Human Resources Function CHRISTINE M. FIELDS, Assistant Director, Human Resources Function SHEILA CLARK, EEO Programs Director DIVISION OF SUPPORT SERVICES ROBERT E. FRAZIER, Director DAVID L. WILLIAMS, Associate 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

A68 Federal Reserve Bulletin • December 2001 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman ROGER W. FERGUSON, JR. EDWARD W. KELLEY, JR. MICHAEL H. MOSKOW EDWARD M. GRAMLICH LAURENCE H. MEYER WILLIAM POOLE THOMAS M. HOENIG CATHY E. MINEHAN ALTERNATE MEMBERS JERRY L. JORDAN ANTHONY M. SANTOMERO JAMIE B. STEWART, JR. ROBERT D. MCTEER, JR. GARY H. STERN STAFF DONALD L. KOHN, Secretary and Economist CHRISTINE M. CUMMING, Associate Economist NORMAND R.V. BERNARD, Deputy Secretary JEFFREY C. FUHRER, Associate Economist GARY P. GILLUM, Assistant Secretary CRAIG S. HAKKIO, Associate Economist MICHELLE A. SMITH, Assistant Secretary DAVID H. HOWARD, Associate Economist J. VIRGIL MATTINGLY, JR., General Counsel WILLIAM C. HUNTER, Associate Economist THOMAS C. BAXTER, JR., Deputy General Counsel DAVID E. LINDSEY, Associate Economist KAREN H. JOHNSON, Economist ROBERT H. RASCHE, Associate Economist VINCENT R. REINHART, Economist LAWRENCE SLIFMAN, Associate Economist DAVID J. STOCKTON, 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 STEVEN L. SCHEID, Twelfth District JAMES ANNABLE, Co-Secretary WILLIAM J. KORSVIK, Co-Secretary Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A69 CONSUMER ADVISORY COUNCIL LAUREN ANDERSON, New Orleans, Louisiana, Chairman DOROTHY BROADMAN, San Francisco, California, Vice Chairman ANTHONY S. ABBATE, Saddlebrook, New Jersey J. PATRICK LIDDY, Cincinnati, Ohio TERESA A. BRYCE, St. Louis, Missouri OSCAR MARQUIS, Park Ridge, Illinois MALCOLM BUSH, Chicago, Illinois JEREMY NOWAK, Philadelphia, Pennsylvania MANUEL CASANOVA, JR., Brownsville, Texas NANCY PIERCE, Kansas City, Missouri CONSTANCE K. CHAMBERLIN, Richmond, Virginia MARTA RAMOS, San Juan, Puerto Rico ROBERT M. CHEADLE, Oklahoma City, Oklahoma RONALD A. REITER, San Francisco, California MARY ELLEN DOMEIER, New Ulm, Minnesota ELIZABETH RENUART, Boston, Massachusetts LESTER W. FIRSTENBERGER, Hopkinton, Massachusetts RUSSELL W. SCHRADER, San Francisco, California JOHN C. GAMBOA, San Francisco, California FRANK TORRES, JR., Washington, District of Columbia EARL JAROLIMEK, Fargo, North Dakota GARY S. WASHINGTON, Chicago, Illinois WILLIE M. JONES, Boston, Massachusetts ROBERT L. WYNN II, Madison, Wisconsin ANNE S. LI, Washington, District of Columbia 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, Westlield, 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

A70 Federal Reserve Bulletin • December 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, 2000. 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 (also available GUIDE TO THE FLOW OF FUNDS ACCOUNTS. January 2000. in Spanish) 1,186 pp. $20.00 each. Making Sense of Savings FEDERAL RESERVE REGULATORY SERVICE. Loose-leaf; updated Welcome to the Federal Reserve monthly. (Requests must be prepaid.) When Your Home is on the Line: What You Should Know Consumer and Community Affairs Handbook. $75.00 per year. About Home Equity Lines of Credit Monetary Policy and Reserve Requirements Handbook. $75.00 Keys to Vehicle Leasing (also available in Spanish) per year. Looking for the Best Mortgage (also available in Spanish) 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 PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, Studies and papers on economic and financial subjects that are of 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/staff studies. 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

A72 Federal Reserve Bulletin • December 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 Friday Week ended Applications and Reports previous Received Saturday H.3. Aggregate Reserves of $20.00 Thursday Week ended 1.20 Depository Institutions and previous the Monetary Base3 Wednesday H.4.1. Factors Affecting Reserve Balances $20.00 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 Thursday Week ended 1.21 Measures3 Monday of previous week H.8. Assets and Liabilities of $30.00 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 Rates4 $ 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 Fifth working day Second month 1.55, 1.56 G.19. Consumer Credit3 $ 5.00 of month previous End of month Second month 1.51, 1.52 G.20. Finance Companies $ 5.00 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. 11. 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. 1. 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 vari- issuance dated January 8, 2002 (continuing data for December 2001). ability in the release date because of reporting or processing procedures. The data reported on the G.13 are available elsewhere: (1) in a weekly Moreover, for all series unusual circumstances may, from time to time, release, the H.15, which is available in print and on the Board's web site result in a release date being later than anticipated. (www.federalreserve.gov/releases/H15); on the web only, in a daily 2. The data in some releases are also reported in the Bulletin statistical update of the H.15 (www.federalreserve.gov/releases/H15/update); and in appendix. the historical H.15 data (www.federalreserve.gov/releases/H15/data.htm). 3. These releases are also available on the Board's web site, n.a. Not available. www.federalreserve.gov/releases. 4. The Federal Reserve will cease publication of the monthly G.13 statistical release, "Selected Interest Rates," effective with the Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Federal Reserve Bulletin • December 2001 Maps of the Federal Reserve System ^z Bos• I ON • NEW YORK ADEI.IMIIA 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 Pittsburgh Baltimore MD PA ( / VT K-WV NH cinnati Bullaln Bji MA ® F NY sc CT ^ R1 BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 6-F 7-G 8-H •Nashvi lie n — KY Birmingham. Detroit • " ^ Louisville MO A - TN AR Jacksonv llle > M • Memphis New Orleans loci MS Miami ATLANTA CHICAGO ST. LOUIS )-I MINNEAPOLIS 10-J 12-L MO 11-K Az DALLAS SAN FRANCISCO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A76 Federal Reserve Bulletin • December 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 Gerald M. Levin 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. McKee1 Birmingham 35283 Catherine Sloss Crenshaw Andre T. Anderson Jacksonville 32231 Julie K. Hilton Robert J. Slack1 Miami 33152 Mark T. Sodders James T. Curry III Nashville 37203 Whitney Johns Martin Melvyn K. Purcell1 New Orleans 70161 Ben Tom Roberts Robert J. Musso1 CHICAGO* 60690 Arthur C. Martinez Michael H. Moskow Robert J. Darnall 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 Maryann Hunter1 Oklahoma City 73125 Patricia B. Fennell Dwayne E. Boggs 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

A77 Index to Volume 87 GUIDE TO PAGE REFERENCES IN MONTHLY ISSUES Issue Text "A" Pages Issue Text 'A" pages Index to Index to tables tables January 1- 46 1-78 64 July 431-500 1-78 64 February 47-102 1-92 78 August 501-566 1-90 78 March 103-182 1-76 64 September 567-632 1-90 80 April 183-282 1-80 64 October 633-718 1-78 66 May 283-366 1-88 76 November 719-756 1-86 72 June 367-430 1-76 64 December 757-792 1-88 64 The "A" pages consist of statistical tables and reference information. Statistical tables are indexed separately (see p. A64 of this issue). Pages Pages AIR TRANSPORTATION STABILIZATION BOARD, Bank Holding Company Act of 1956—Continued designations 775 Applications approved under—Continued Amer, Howard A., promoted to Deputy Associate Director, ABN AMRO Holding N.V., Amsterdam, Division of Banking Supervision and Regulation 67 The Netherlands 180 Annual Report, 87th, 2000 536 ABN AMRO North America Holding Company 180 Annual Report: Budget Review, 2001 536 ABN AMRO North America, Inc 180 Anti-money-laundering programs, guidance 164 ACME Holding Company, Inc 560 Articles Admiral Family Banks, Inc 356 Economic performance of small banks, 1985-2000 719-28 Advantage Bancorp 560 Financial services used by small businesses: Alabama National BanCorporation 38 Evidence from the 1998 Survey of Small Alamerica BanCorp, Inc 788 Business Finances 183-205 Allegiant Bancorp, Inc 713 Industrial production and capacity utilization: Alliance Bancorp 751 2000 annual revision 132-48 Alliance Bank Shares Corporation 426 Monetary policy reports to the Congress 103-31, 501-27 Alpha Financial Group, Inc. Employee Stock Opportunities and challenges of the U.S. dollar Ownership Plan 280 as an increasingly global currency: Amana Bancshares, Inc 93 A Federal Reserve perspective 567-75 Ambanc Holding Company, Inc 478 Profits and balance sheet developments at U.S. Ameriana Bancorp 478 commercial banks in 2000 367-93 AmeriBank Holding Company 751 Retail fees of depository institutions, 1994-99 1-11 American Bancorporation 278 Supervision of large complex banking organizations 47-57 American Bancorporation of Minnesota, Inc 751 Treasury and Federal Reserve foreign exchange American Community Financial, Inc 713 operations 149-53, 394-99, 576-81, 757-62 American National Bank of Beaver Dam Employee US. flow of funds accounts and their uses 431-41 Stock Ownership Trust 478 U.S. international transactions in 2000 283-94 American National Corporation 278 U.S. system for measuring cross-border investment American State Bancshares, Inc 356 in securities: A primer with a discussion AmericaUnited Bancorp, Inc 357, 478 of recent developments 633-50 Ames National Corporation 428 ATM annual service fees 6, 217 Anchor BanCorp Wisconsin Inc 752 AnchorBank 752 BAILEY, Deborah P., appointed to Assistant Director, Arison Holdings (1998) Ltd., Tel Aviv, Israel 96 Division of Banking Supervision and Regulation 67 Arkansas State Bancshares, Inc 178 Bank affiliates, final rule 412 Astra Financial Corporation 356 Bank holding companies (See also Financial holding Banco Bradesco S.A., Osasco, Brazil 561 companies) Banco Espirito Santo, S.A., Lisbon, Portugal 562 Bank Holding Companies and Change in Bank Control BancStar, Inc 714 (Reg. Y) 64, 75, 169-77, 417-19 Bank Hapoalim B.M., Tel Aviv, Israel 96 Bank Holding Company Act of 1956 Bank of America Corporation 93 Applications approved under Bank of De Soto, N.A., Employee Stock 02-e Limited, Melbourne, Australia 279 Ownership Trust 560 1st Choice Bancorp of Delaware, Inc 355 Bank of Montreal, Toronto, Ontario, Canada 96, 629 1st Choice Bancorp, Inc 355 Bank of Mulberry Employee Stock Ownership Trust 560 1st Financial Bancshares, Inc 93 Bank of Tokyo-Mitsubishi, Ltd., Tokyo, Japan 357 2000 Williams Investment Company, LLC 714 Bank One Corporation 357 ABC Bancorp 355, 629 Bankmont Financial Corp 629 ABN AMRO Bank N.V., Amsterdam, The Netherlands ... 180 Banknorth Group, Inc 754 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A78 Federal Reserve Bulletin • December 2001 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Applications approved under—Continued Applications approved under—Continued Bayerische Hypo-und Vereinsbank AG, Community Bancshares Company 38 Munich, Germany 96 Community Bank Holdings of Texas, Inc 426 BB&T Corporation 39, 40, 426, 428, 788 Community Financial Services, Inc 480 Bedwell Investments, Inc 178 Community First Bancshares, Inc 179 Bespar Sociedade Gestora de Participacoes Sociais, S.A., Compass Bancshares, Inc 92 Lisbon, Portugal 562 Cooper Lake Financial Corporation 93 BNCCorp, Inc 478 Cornerstone Financial Services Group, Inc 179 Boiling Springs Bancorp 426 Corsicana Holdings, Inc 426 Boiling Springs, MHC 426 County Bancshares, Inc 752 Border Capital Group of Delaware, Inc 426 Covenant Bancgroup, Inc 96 Border Capital Group, Inc 426 Cowboy State Bancorp, Inc 426 Boston Private Financial Holdings, Inc 279, 752 CreditAmerica Holding Company 278 BOTH of Delaware, Inc 752 Crescent Financial Corporation 560 BOTH, Inc 752 CyberBills, Inc 630 Bryan Family Management Trust 178 Dacotah Banks, Inc 752 Bryan-Heritage Limited Partnership 178 Dai-Ichi Kangyo Bank, Limited, Tokyo, Japan 97 BSB Community Bancorporation, Inc 356 Danvers Bancorp, Inc 715 BW Holdings, Inc 752 Delaware Financial, Inc 357 C.C. Bancorp, Inc 479 Dexia S.A., Brussels, Belgium 630 Caisse National de Credit Agricole, Paris, France 562 Dickinson Holdings, Inc 178 Camden National Corporation 630, 790 Dickinson Holdings of Delaware 178 Camden National Investment Services, Inc 790 Discount Bancorp, Inc 630 Capital Bancorp, Ltd 93 DNB Bancshares, Inc 789 Capital Bancorp, Inc 479 DNB Delaware Financial Corporation 789 Capital Bank Corporation 357 Douglas County Bancshares, Inc 714 Capital City Bank Group, Inc 93 Dresdner Bank Aktiengesellschaft, Frankfurt, Germany ... 96 Carlson Bancshares, Inc 178 E.S. Control Holding, S.A., Luxembourg 562 Carolina Bank Holdings, Inc 38 E.S. International Holding, S.A., Luxembourg 562 Carolina Financial Corporation 560 Eagle Bancshares, Inc 789 Cascade Financial Corporation 629 East Side Bancorporation 427 Castle Creek Capital Partners Fund I, LP 94 East Texas Financial Corporation 427 Castle Creek Capital Partners Fund Ha 94 Eggemeyer Advisory Corp 94 Castle Creek Capital Partners Fund lib 94 ENB Bankshares, Inc 38 Castle Creek Capital, LLC 94 ENB Delaware Bankshares, Inc 38 Catawba Valley Bancshares, Inc 788 Equity One, Inc 754 CCB Corporation 356 Espirito Financial (Portugal) Sociedade Gestora de Centennial Bank Holdings, Inc 479 Participacoes Sociais, S.A., Lisbon, Portugal 562 Centennial First Financial Services 714 Espirito Santo Financial Group, S.A., Luxembourg 562 Centra Financial Holdings, Inc 356 Eureka Springs Bancshares, Inc 38 Central Alabama Bancshares, Inc 713 Evergreen Bancorp 426 Central Financial Corporation 93 eZ Bancorp, Inc 426 Central National Bank 714 F&M National Corporation 94, 180 Central Ohio Bancorp 479 F.N.B. Corporation 94, 358, 753 Century Bancshares, Inc 278 Farmers Financial Corporation 479 Charter Bancshares, Inc 178 Farmers State Corporation 629 Charter Financial Corporation 38 FBOP Corporation 427 Charter IBHC, Inc 178 Fifth Third Bancorp 39, 97, 178 Charter One Financial, Inc 427 Financial Investors of the South, Inc 629 Chase Manhattan Corporation 92 First Ainsworth Company 357 Chemical Financial Corporation 93 First Bancorp 278 Chesapeake Financial Shares, Inc 96 First Bancorp of Taylorville, Inc 94 Chester Valley Bancorp, Inc 713 First BanCorp, San Juan, Puerto Rico 560 Chinatrust Commercial Bank Ltd., Taipei, Taiwan, First BancTrust Corporation 278 Republic of China 426 First Banks America, Inc 94, 714, 789 Chittenden Corporation 356 First Banks, Inc 94, 714, 752, 789 CIB Marine Bancshares, Inc 560 First Capital Bankshares, Inc 278 Cisco Bancshares of Nevada, Inc 752 First Commerce Corporation 426 Cisco Bancshares, Inc 752 First Community Bancorp 94 Citco Community Bancshares, Inc 39 First Community Capital Corporation 38 Citigroup, Inc 96 First Community Capital Corporation of Delaware, Inc. ... 38 Citizens Bancorp of Oviedo 93 First Deposit Bancshares, Inc 178 Citizens State Bancorporation 714 First Financial Bankshares, Inc 478 City National Corporation 92 First Independent Capital of Nevada 752 Clark County Bancorporation 629 First Indiana Corporation 629 CNB Financial Corporation 754 First Lakewood, Inc 428 CNB Holdings, Inc 93 First Liberty Capital Corporation Employee Coast Bancorp 426 Stock Ownership Plan 560 Colonial BancGroup, Inc 789 First Merchants Corporation 560 Colorado Business Bancshares, Inc 277 First Muskogee Financial Corporation 479 Colorado Business Bankshares, Inc 278 First National Bancshares of Huntsville, Inc 629 Columbia Trust Bancorp 714 First National Bank Group, Inc 560 Comanche National Corporation 278 First National Bank Holding Company 479 Comanche National Corporation of Delaware 278 First National Bank of Moose Lake Profit Sharing Comerica, Incorporated 178 and ESOP 358 Commerce Financial Corporation, ESOP 560 First National Bankers Bankshares, Inc 94 Commercial Bancgroup, Inc 754 First National Johnson Bancshares, Inc 39, 94 Commonwealth Bancshares, Inc 357 First Okmulgee Corporation 426 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 87 A79 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Applications approved under—Continued Applications approved under—Continued First Olathe Bancshares, Inc 38, 356 Lakeland Bancorp, Inc 178 First Pulaski National Corporation 752 Lenawee Bancorp, Inc 95 First Virginia Banks, Inc 560 Litchfield Mutual Holding Company 95 First Western Bank Shares, Inc 752 Live Oak Delaware Financial Corp 714 Firstrust Corporation 278 Live Oak Financial Corp 714 FNB Bancorp 753 Lone Tree Service Company 427 FNB Corporation 38, 40, 753 LSB Corporation 479 Foresight Financial Group, Inc 479 Luling Bancshares, Inc 790 Foster Bankshares, Inc 356 Luling Delaware Financial Corporation 790 FPB Bancorp, Inc 789 Madison Bancshares, Inc 714 Frandsen Financial Corporation 278 Mahaska Investment Company, ESOP 479 Franklin Financial Services Corporation 629 Manning Financial Services, Inc 97 Frontier Financial Corporation 178 Manufacturers Bancshares, Inc 789 Fulton Financial Corporation 478 Manufacturers National Corporation 428 Gateway Bancoip 180 Marathon Financial Corporation 39 Gateway Financial Corporation 280 Marquette Bancshares, Inc 95 GB&T Bancshares, Inc 563 Marshall & Ilsley Corporation 40, 428, 479, 562, 630-31 Geneva State Company 629 Maryland Bancshares, Inc 714 Georgia Bancshares, Inc 479 Mason National Bancshares of Nevada, Inc 95 Georgia Banking Company, Inc 790 Mason National Bancshares, Inc 95 Giant Holdings, Inc 426 Mason National Bank Employee Stock Ownership Plan ... 629 Gideon Bancshares Company 715 Mauch Chunk Trust Financial Corporation 753 Gideon Management, L.L.C 479 MB Financial, Inc 428 Glacier Bancorp, Inc 179, 279 MB-MidCity, Inc 715 GNB Bancshares, Inc 561 Mcintosh County Bank Holding Company, Inc 428 Goering Financial Holding Company Partnership, L.P. .... 94 Meader Insurance Agency, Inc 95 Goering Management Company, LLC 94 Medley Group, Inc 753 Grant County State Bancshares, Inc., Employee Merchants and Manufacturers Bancorporation, Inc 95 Stock Ownership Plan 356, 753 Merchants Merger Corp 95 Greater Bay Bancorp 427, 789 Metro North Bancshares, Inc 561 Greer Bancshares, Incorporated 561 Michigan National Corporation 179 Guaranty Corporation 40 Mid-Iowa Bancshares Co 95 Guaranty National Bancshares, Inc 561 Midwest Community Bancshares, Inc 278 Gulfstream Bancshares, Inc 426 Millennium Bancorp, Inc 714 Hampton Roads Bankshares, Inc 426 Milstar Financial, Inc 479 Hancock Holding Company 563 Mississippi Valley Bancshares, Inc 95 Hapoalim U.S.A. Holding Company, Inc 96 Missouri Bancorp, Inc 427 Harleysville National Corporation 754 Mitsubishi Tokyo Financial Group, Inc., Tokyo, Japan .... 357 Harris Joliet Bankcorp, Inc 629 Mizuho Holdings, Inc., Tokyo, Japan 97 Harvard Bancorp, Inc 629 Mountain West Financial Corporation 95, 177 Hasten Bancshares 715 MountainBank Financial Corporation 278 Hawarden Banshares, Inc 357 MSB Bankshares, Inc 178 Heartland Bancorp, Inc 356, 479 NB Holdings Corporation 93 Henderson Citizens Bancshares, Inc 479 Nara Bancorp, Inc 95 Henderson Citizens Delaware Bancshares, Inc 479 National Australia Bank Limited, Henry State Bancorp, Inc 629 Melbourne, Australia 97, 279 Heritage Bancshares, Inc 38 National Bancshares, Inc 480 Heritage Group, Inc 94 National Penn Bancshares, Inc 39 High Street Corporation 753 NBOG Bancorporation, Inc 714 Highlands Bankshares, Inc 279 NBT Bancorp, Inc 714 Holland Bancorp, Inc 178 Nebraska Bankshares, Inc 178 HomeSide Lending, Inc 97 New Peoples Bankshares, Inc 789 Howard County Land & Cattle Company 753 Newnan Coweta Bancshares, Inc 714 Humboldt Bancorp 280 North Cascades Bancshares, Inc 480 Huntsville Delaware Holdings, Inc 629 North Texas Bancshares of Delaware, Inc 95 Hutisford Community Bancorp, Inc 561 North Texas Bancshares, Inc 95 IBFC Nevada Corporation 427 Northern Trust Corporation 279, 478, 560 Ida Grove Bancshares, Inc 427 Northfield Bancorp, Inc. (Stock Holding Company) 39 Independent Bankers Financial Corporation 427 Northfield MHC (Mutual Holding Co.) 39 Indiana United Bancorp 178 Northrim BanCorp, Inc 561 Industry Bancshares, Inc 479 Northstar Financial Group, Inc 178, 789 Industry Holdings, Inc 479 Northview Financial Corporation 562 Innes Street Financial Corporation 94 Northwest Mutual Holding Company 95 Innovative Bancorp 356 Northwest Suburban Bancorp, Inc 95, 279 Inter-Mountain Bancorp, Inc 38 Norway Bancorp, Inc 630 Irwin Financial Corporation 97 Norway Bancorp, MHC 630 Israel Discount Bank Limited, Tel Aviv, Israel 630 Old Florida Bankshares, Inc 561 Israel Salt Industries, Ltd., Atlit, Israel 96 Olney Bancshares of Texas, Inc 753 J.P. Morgan Chase & Co 714 One American Corporation 427 JBS, Inc 479 OSB Delaware Financial Services, Inc 95 JDOB, Inc 38 OSB Financial Services, Inc 95 Jones Bancorp, Inc 715 Oswego Bancshares, Inc 753 Katy Bancshares, Inc 356 Oswego Community Bank Employee Stock Kensington Bankshares, Inc 789 Ownership Plan 753 Kerndt Bank Services, Inc 753 Ottawa Bancshares, Inc 561 Lake Bank Shares, Inc. Employee Stock Ownership Overton Delaware Corporation 789 Plan 94 Overton Financial Corporation 789 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A80 Federal Reserve Bulletin • December 2001 Pages Pages Bank Holding Company Act of 1956—Continued Bank Holding Company Act of 1956—Continued Applications approved under—Continued Applications approved under—Continued PAB Bankshares, Inc 95 Sun Community Bancorp, Limited 93 Pacifica Bancorp, Inc 95 Sunrise Capital Corporation 93 Palm Beach National Holding Company 278 Sweetwater Financial Group, Inc 714 Paragon Commercial Corporation 561 Synovus Financial Corp 753 Peoples Home Holding, Inc 714 Team Financial Employees Stock Ownership Plan 753 Peotone Bancorp, Inc 427 Team Financial, Inc 753 Persons Banking Company 480 Texas Community Bancshares, Inc 428 Peterstown Bancorp, Inc 39 Texas Financial Bancorporation, Inc 357 Piedmont BankCorp 789 Texas Heritage Bancshares of Delaware, Inc 790 Pine Island Bancshares, Inc 428 Texas Heritage Bancshares, Inc 790 Piper Holdings, Inc 753 TFC Holding Company 480 Plymouth Financial Corporation 356 Thumb National Bank & Trust Company Employee PNC Financial Services Group, Inc 39 Stock Ownership Plan and Trust 279 Popular International Bank, Inc., San Juan, Puerto Rico ... 754 Timberland Bancshares, Inc 630 Popular North America, Inc 754 Trafalgar Holdings, LLC 715 Popular, Inc., San Juan, Puerto Rico 754 TransCommunity Bankshares, Incorporated 715 Porter Bancorp, Inc 630 TRB Bancorp, Inc 630 Prairieland Employee Stock Ownership Plan 789 Triple J Financial, Inc 179 Promistar Financial Corporation 561 Trust B Created Under Item V of the Last Will and PSB Bancorp, Inc 179, 279, 630 Testament of John Rufus Williams 715 Puget Sound Financial Services, Inc 561 Trustmark Corporation 355 Quad City Holdings, Inc 714 TTAC Corp 96 Quinlan Bancshares, Inc 480 Union Planters Corporation 179 Raton Capital Corporation 630 Union Planters Holding Corporation 179 RBT Holdings, Inc 561 United Bancorp, Inc 357 Red Level Financial Corporation 39 United Community Banks, Inc 790 Regents Bancshares, Inc 714 United Financial Holdings, Inc 357 Regional Bankshares, Inc 39 United Nebraska Financial Company 179 Regions Financial Corporation 279, 753 United Security Bancshares 480 Remada Financial Holdings, Inc 178 Urban Financial Group, Inc 279 Republic Bancorp, Inc., Owosso, Michigan 562 Valley Bancorp 427 Republic Bancorp, Inc., Louisville, Kentucky 278 Venture Bancshares, Inc 790 Republic Bancshares of Texas, Inc 561 Viking Corporation 279 River Valley Bancorp, Inc 789 Virginia Capital Bancshares, Inc 179 Rivoli Bancorp, Inc 753 Virginia Financial Corporation 790 RNB Corporation 715 Waccamaw Bankshares, Inc 428 Rockhold Bancorp 480 Wachovia Corporation 179 Routt County Bancorporation, Inc 39 Washington First Financial Group, Inc 561 Royal Bank of Canada, Toronto, Ontario, Canada 40 Waukomis Bancshares, Inc 279 Savings Bancorp, Inc 279 Wausa Banshares, Inc 40 Seacoast Financial Services Corporation 95 WB Bancshares, Inc 753 Second Bancorp, Inc 789 WB&T Bankshares, Inc 357 Security Bancshares, Inc 279 Wells Fargo & Company 92 Shamrock Bancshares Employee Stock Ownership Plan ... 427 Wells Fargo Financial Services, Inc 92 Shelby Bancshares, Inc 356 Wells Fargo Financial, Inc 92 Shelby Savings of Nevada, Inc 356 Wesbanco, Inc 355, 425 Shore Bancshares, Inc 39 West 12 Bancorporation, Inc 790 Sierra Bancorp 279 West End Financial Corp 715 Somerset Hills Bancorp 39 Westdeutsche Landesbank Gironzentrale, Sooner Southwest Bankshares, Inc 96 Duesseldorf, Germany 97, 279 South Plains Delaware Financial Corporation 789 Western Bancorporation, Inc 754 South Plains Financial, Inc 789 Wewahitchka State Bank Employee Stock Southern Community Bancorp, Inc 96, 357, 427 Ownership Plan 561 Southern Connecticut Bancorp, Inc 753 WFC, Inc 630 Southern Development Bancorporation, Inc 559 Whitney Holding Corporation 40, 96, 754 Southwest Bancorporation of Texas, Inc 96 Wilber Company 39, 97 Southwest Holding Delaware, Inc 96 WJR Corp 94 SouthwestUSA Corporation 427 Woodford Bancshares, Inc 179 Spector Holdings, Limited Partnership 790 Yankee Ridge, Inc 96 Spector Holdings Management, LLC 790 YNB Financial Services Corp 715 Spectrum Bancorporation, Inc 96 Zia Financial Corporation 789 Speer Bancshares, Inc 714 Zions Bancorporation 38 SSB Management, L.L.C 97 Zohar Hashemesh Le'Hashkaot, Ltd., Tel Aviv, Israel 96 State Bank of Slater Employee Stock Ownership Plan .... 630 Zumbrota Agency, Inc 428 State Bank-Winfield Employee Stock and Ownership Orders issued under Plan & Trust 754 Amicus Holdings, Inc 678-81 State National Bancshares, Inc 179 Amplicon, Inc 421-23 Sterling Bancorporation, Inc 357, 561 Arison Holdings (1998), Ltd., Tel Aviv, Israel 327-30 Sterling Bancshares, Inc 357, 561 Bank Hapoalim, B.M., Tel Aviv, Israel 327-30 Stichting Administratiekantoor ABN AMRO Holding, BB&T Corporation 545-51 Amsterdam, The Netherlands 180 Canadian Imperial Bank of Commerce, Toronto, Stichting Prioriteit ABN AMRO Holding, Amsterdam, Canada 678-81 The Netherlands 180 CB&T Bancshares, Inc 465 Stockman Financial Corporation 39 Charles Schwab Corporation 233-36 Sturm Financial Group, Inc 40, 97 Chase Manhattan Corporation 76-90 Summit Bank Corporation 279 CIBC Delaware Holdings, Inc 678-81 Sun Bancshares, Inc 39 CIBC World Markets, Inc., Toronto, Canada 678-81 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 87 A81 Pages Pages Bank Holding Company Act of 1956—Continued Bank Merger Act—Continued Orders issued under—Continued Applications approved under—Continued Citicorp 600-24 Fifth Third Bank, Indiana 41 Citigroup Holdings Company 600-24 Fifth Third Bank, Western, Ohio 41 Citigroup, Inc 600-24 First Farmers Bank and Trust Company 755 Citizens Union Bancorp of Shelbyville, Inc 262-63 First Interstate Bank 791 Countrywide Credit Industries, Inc 419-21 First Penn Bank 631 Countrywide Financial Holding Company, Inc 419-21 First Security Bank of Missoula 631 Effinity Financial Corporation 419-21 First Virginia Bank 716 FBR Bancorp, Inc 346-49 First Virginia Bank-Colonial 755 Fifth Third Bancorp 330-43 First Virginia Bank-Hampton Roads 791 First Union Corporation 683-708 Friendship Community Bank 98 First Western Bancorp, Inc 681-83 Glacier Bank 631 Firstar Corporation 236-52 Glacier Bank of Whitefish 631 FleetBoston Financial Corporation 252-62 Gold Bank 563 Franklin Resources, Inc 343-46 Greenwood Bank & Trust 41 Friedman, Billings, Ramsey Group, Inc 346-49 Harris Trust Bank of Arizona 98 Great Southern Bancorp, Inc 266-68 Horizon Bank 632 Hapoalim U.S.A. Holding Company, Inc 327-30 HSBC Bank USA 791 Harrodsburg First Financial Bancorp, Inc 624-26 Iron and Glass Bank 358 International Bancshares Corporation 777-79 M&I Marshall & Ilsley Bank 41, 180-81, 358, Israel Salt Industries Ltd., Atlit, Israel 327-30 480, 563, 755 J.P. Morgan & Co., Incorporated 76-90 North Valley Bank 480 Juniper Financial Corporation 466-67 Northern Neck State Bank 791 Lea M. McMullan Trust 262-63 Peoples Bank and Trust Company 755 MetLife Inc 268-70 Pioneer Bank 480 Mitsubishi Tokyo Financial Group, Inc., Placer Sierra Bank 358 Tokyo, Japan 349-53 PNB Financial Bank 98 Money Management Associates (LP), Inc 346-49 Pointe Bank 358 Money Management Associates, Inc 346-49 Promistar Bank 563 Money Management Associates, L.P. 346-49 Provident Bank 41 Native American Bancorporation Co 747-50 Regions Bank 791 North Fork Bancorporation, Inc 779-83 Rockingham Heritage Bank 41 Prosperity Bancshares, Inc 264-66 Rolling Hills Bank & Trust 428 Queens County Bancorp, Inc 30-36 Security State Bank 280 Rock Merger Subsidiary, Inc 467-71 Royal Bank of Canada, Montreal, Canada 467-71 Security State Bank of Edgeley 480 U.S. Bancorp 236-52 Sky Bank-Mid Am Region 755 U.S. Trust Corporation 233-36 SouthTrust Bank 41, 181, 280, 632 UFJ Holdings, Inc. (In Formation), Osaka, Japan 270-74 State Savings Bank of Manistique 755 Wachovia Corporation 683-708 Sylvan State Bank 98, 359 Zohar Hashemesh Le'Hashkaot, Ltd., Titonka Savings Bank 632 Tel Aviv, Israel 327-30 Valley Bank of Helena 480 Bank Holding Company Act, financial activities 62, 163 Valley Independent Bank 480 Bank Holding Company Supervision Manual 65, 455 WesbancoBank, Inc 358 Bank Merger Act Western Security Bank 755 Applications approved under Zions Bancorporation 755 1st Financial Bank 716 Orders issued under 1st Source Bank 480, 716, 791 Allfirst Bank 275-76 Adams Bank & Trust 98 Central State Bank 551-52 Bank Independent 631 Chase Manhattan Bank 626-28 Bank of Blue Valley 631 Mcllroy Bank & Trust 783-85 Bank of Chelsea 41 Old Kent Bank 471-77 Bank of Colorado 98 Old Kent Bank, National Association 471-77 Bank of Louisville 631 Bank of Canada, swap facility augmentation 662 Bank of Pontiac 98 Bank of England, swap arrangement 662 Bank of Tazewell County 98 Bank securities, testimony 654-60 Bank of Washtenaw 98 Bankers dollar acceptances table, discontinuance Big Sky Western Bank 631 in Federal Reserve Bulletin 775 Capital City Bank 98 Banking organizations Centennial Bank of the West 98 Broker and dealer exemptions 535 Central Savings Bank 563 Loan-to-deposit ratios 535 Central Trust and Savings Bank 631 Reform, recommendations 594 Central Virginia Bank 563 Supervision of, article 47-57 Centura Bank 631 Banking, on-line, regulation 454 Chase Manhattan Bank 97 Banks, small, economic performance, article 719-28 Chemical Bank and Trust Company 41 Barger, Norah M., promoted to Deputy Associate Citizens First State Bank of Walnut 480 Director, Division of Banking Supervision Colonial Bank 41, 755, 791 and Regulation 67 Commercial Bank 755 Basel Committee on Banking Supervision 167 Commercial Bank - California 631 Bassett, William F„ article 367-93, 719-28 Commercial Trust & Savings Bank 632 Compass Bank 97 Biern, Herbert A., promoted to Senior Associate Dacotah Bank 358 Director, Division of Banking Supervision English State Bank 631 and Regulation 67 F&M Bank-Maryland, Inc 98 Bitler, Marianne P., article 183-205 Falcon International Bank 631 Board of Governors (See also Federal Reserve System) Farmers & Merchants Bank 41 Bank Supervision and Regulation Division, restructure 67 Farmers Bank of Mt. Pulaski 428 Building purchase 663 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A82 Federal Reserve Bulletin • December 2001 Pages Pages Board of Governors—Continued Commercial banks Consumer Advisory Council Balance sheet developments 369-82 Meetings 306, 453, 736 Capital 374 New members 162, 453 Deposits 374 Economic projections 106 Developments 367-93 Index of orders and actions taken 37, 277, 423-25, 712 Income and expenses, tables 383-93 Interest income and expense 376 Information Technology Division, restructure 219 International operations 382 Members Liabilities 374 Ferguson, Vice Chairman Roger W., oath of office 598 Loans 370-74 Kelley, Governor Edward W. Jr., intended resignation 452 Noninterest income and expense 378 Membership list, 1913-2001 565 Profitability 375 Staff changes Securities holdings 374 Amer, Howard A 67 Community Reinvestment Act (CRA) 62, 307, 598 Bailey, Deborah P. 67 Como puede un consumidor presentar una queja acerca Barger, Norah M 67 de un banco, brochure 598 Biern, Herbert A 67 Consumer Advisory Council Bouchard, Barbara J 67 Meetings 306, 453, 736 Clark, Tillena G 219 New members 162, 453 Cole, Roger T. 67 Consumer protections for depository institution sales Desmond, Angela 67 of insurance, amendment to 27-30, 309 Edmondson, Wayne A 219 Consumer regulations, web site 17 Edwards, Gerald A 67 Consumer Rental Purchase Agreement Act, H.R. 1701, Embersit, James A 67 testimony 586-88 Frierson, Robert deVere 536 Consumers Hoffman, Stephen M 67 Disclosures to 102, 308 Holm, Charles H 67 Protection rules, effective date extended 309 Houpt, James V. 67 Regulations for, web site 17 Jacowski, Mary Cross 67 Resources, in Spanish 217, 598 Jennings, Jack P. 67 Spending 505 Kohn, Donald 536 Corporate finances 438 Lopez, John 219 Corrado, Carol, article 132-48 Madigan, Brian 536 Counterfeiting activity 571, 573 Martinson, Michael G 67 Credit card industry, testimony 769-72 Marycz, Susan F. 219 Credit to small businesses 188, 190-94, 197-99, 448-51 Massey, Raymond H 219 Cross-border investment in securities, article 633-50 Reinhart, Vincent 536 Currency, U.S 486, 567-75 Richards, Heidi W. 67 Customer information security 166, 412 Ryback, William A 67 DEBT 125, 166, 522 Shanks, Margaret McCloskey 536 DeFerrari, Lisa M., article 47-57 Small, Richard A 67 Deposit account fees 2, 6 Smith, Michelle A 219 Deposit insurance 593 Spaniel, William G 67 Depository institutions 1-11, 63, 194 Sussan, Sidney M 67 Deposits, brokered and rate-sensitive, risks 413 Wassom, Molly S 67 Derivatives transactions 414 Wright, David M 67 Desmond, Angela, appointed Assistant Director, Division of Swap arrangements 662 Banking Supervision and Regulation 67 Terrorist attacks, statements 661, 662 Directives, Federal Open Market Committee 15, 61, 713 Bouchard, Barbara J., promoted to Deputy Associate Director, Disclosure, market risk, guidance 307 Division of Banking Supervision and Regulation 67 Disclosures, electronic delivery 102, 308, 598 Brady, Thomas F., article 719-28 Discount rate, meeting minutes 775 Broker and dealer exemptions, banking organizations 535 Discount rate, reductions 161, 306, 412, 452, 661, 733, 735 Business loans 370 Dollar, U.S., as global currency, article 567-75 Business sector, economic developments 110-13 Domestic open market operations during 2000 482-99 Businesses, small Domestic policy directives, FOMC 15, 482, 535, 544, Characteristics 185, 202-05 661, 670, 713, 744 Computer use 187 Drossos, Sophia, article 757-62 Credit availability 448-51 Financial services, use of, article 183-205 ECONOMIC DEVELOPMENTS, by sector Business 110-13, 508-12 CAPACITY UTILIZATION 140 Financial markets 104-06, 120-25, 519-22 Capital accounts, U.S 293 Foreign 115-17, 514 Capital adequacy framework, proposal to amend 167 Government 113-15, 512-14 Capital flows, U.S 293 Household 107-10, 505-08 Capital, commercial banks 374 Labor markets 117-19,515-18 Central Bank Research conference 306 Prices 117-19, 518 Century Date Change Special Liquidity Facility 483 Economic performance of small banks, 1985-2000, Chairmen and deputy chairmen, 2002, article 719-28 Federal Reserve Banks 735 Economy, U.S. Checkers Bank, The 17 Performance Checking account fees 3 Foreign transactions 284 Checking and savings accounts, use of by small businesses .... 188 Monetary policy reports 103-31, 209-13, 213-16, 501-27 Clark, Tillena G., assigned Assistant Director, Division Projections 106, 503, 541 of Reserve Bank Operations and Payment Systems 219 Testimony 767 Cole, Roger T., promoted to Senior Associate Director, Edmondson, Wayne A., appointed Assistant Director, Division of Banking Supervision and Regulation 67 Division of Information Technology 219 Commercial and industrial loans 379 Edwards, Gerald A., promoted to Associate Director, Commercial Bank Examination Manual 18, 455, 776 Division of Banking Supervision and Regulation 67 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 87 A83 Pages Pages Electronic Fund Transfers (Reg. E) 217, 231-33, 306, 323-27 Financial subsidiaries, criteria needed to control 165 Embersit, James A., appointed Assistant Director, Finder role, permissible activities for financial holding Division of Banking Supervision and Regulation 67 companies 62 Emerging-market economies 129-31 Fisher, Peter R., Executive Vice President, Federal Enforcement actions (See Litigation, Final enforcement Reserve Bank of New York, articles 149-53, 482-99 orders issued by Board of Governors) Flow of funds accounts, U.S., article 431-41 Equity prices 123, 521 Foreign currency operations, FOMC authorization 314 Euro 575 Foreign exchange operations European Central Bank, swap arrangement 662 Articles 149-53, 394-99, 576-81, 757-62 Export prices 287 Articles, discontinuance in Federal Reserve Bulletin 580 Extensions of Credit by Federal Reserve Foreign official institution 641 Banks (Reg. A) 169, 231, 417, 465, 747, 777 Foreign sector, economic developments 115-17, 284, 524-27 Foreign transactions in 2000, article 283-94 FAULKNER, Ryan, article 149-53 Frierson, Robert deVere, promoted to Deputy Secretary Feasibility and Desirability of Mandatory of the Board, Office of the Secretary 536 Subordinated Debt, report 166 Federal budget and fiscal policy, testimonies 157-60, 298-301 GAGNON, Joseph E„ article 283-94 Federal funds rate 306, 412, 452, 482, 494, Gonzalez, Henry B., Former Chairman, U.S. Banking 535, 661, 735, 773 Committee, statement 15 Federal Open Market Committee Goods and services, trade developments 287-90 Disclosure of procedures, modifications 217 Government sector, economic developments 113-15 Discount rate, reduction 161, 306, 412, 452, Gramlich, Edward M., designated as chairman, Air 535, 661, 735, 773 Transportation Stabilization Board 775 Domestic open market operations, authorization 313, 497 Gramm-Leach-Bliley (GLB) Act 406, 655, 737 Domestic policy directives 15, 482, 535, 544, Greenspan, Chairman Alan 661, 670, 713, 744 Statements Foreign currency directives 316 Arthur Levitt resignation 61 Foreign currency operations, authorization 314, 316 Ferguson, Vice Chairman Roger W., Jr., renomination — 217 Meetings Henry B. Gonzalez 15 Discontinuance of minutes in Kelley, Governor Edward W., Jr., resignation 452 Federal Reserve Bulletin 671, 745 Paul, O'Neill, Secretary of the Treasury, nomination 61 Minutes Testimony Oct. 3, 2000 20-25 Economy, U.S 767 Federal budget and fiscal policy 157-60, 298-391 Nov. 15, 2000 68-73 International trade and world economy 403-05 Dec. 19, 2000 224-30 Monetary policy 209-12, 213-16, 588-97 January 30-31, 2001 311-22 Technological change and financial services 215 Mar. 20, 2001 458-64 Terrorist attacks, effect on economy 733 May 15, 2001 538-44 U.S. banking system 532-34 June 26-27, 2001 665-71 Griever, William L., article 633-50 Aug. 21, 2001 739-45 Schedule, 2002 536 H.R. 1701, Consumer Rental Purchase Agreement Telephone conferences 229, 463, 745 Act, testimony 586-88 Notation vote, Vincent R. Reinhart election 671 Hannan, Timothy H., article 1-11 Reciprocal currency arrangements 744 Hilton, Spence, article 482-99 Federal Reserve Act 412, 414 Hoffman, Stephen M., promoted to Associate Director, Federal Reserve Banks Division of Banking Supervision and Regulation 67 Chairmen and deputy chairmen, 2002 735 Holm, Charles H., appointed Assistant Director, Fee schedules 15 Division of Banking Supervision and Regulation 67 Operating income 164 Home equity lines of credit 309, 373 Federal Reserve System Home Mortgage Disclosure Act (Reg. C) 17, 63, 75 Balances 484 Houpt, James V., promoted to Associate Director, Fees for Federal Reserve services to depository Division of Banking Supervision and Regulation 67 institutions, priced services 15, 64, 736, 774 Household assets, debt, and loans 372, 381, 436, 507 Member banks, requirements for controlling subsidiaries — 165 Household sector, economic developments 107-10 Fees of depository institutions 1-11 Housing investment 506 Fees, ATM, disclosure requirements 217 Humphrey-Hawkins Report {See Monetary Policy Ferguson, Vice Chairman Roger W., Jr. Reports to the Congress) Credit to small businesses, testimony 448-51 Nomination, testimony 531 IDENTITY THEFT, protection 412, 454 Oath of office 598 Identity Theft: Protect Yourself, video 454 Renomination statement 217 Import prices 289 Financial activities permissible under Bank Holding Income and expenses, commercial banks 376, 383-93 Company Act 62, 163 Income, Federal Reserve Banks 164 Financial flows, U.S 116, 514 Financial holding companies Industrial economies 128 Finder role activities 62 Industrial production and capacity utilization Merchant banking activities 164, 405-11 Article 132-48 Procedures and permissible activities 63, 163 Discontinuance in Federal Reserve Bulletin .. 584, 653, 731, 765 Real estate services 65 Index weights 137 Financial information, public disclosure 166 Releases 12-14, 58-60, 154-56, Financial institutions 206-08, 295-97, 400-02, 442-44, Anti-money-laundering programs, guidance 164 528-30, 582-85, 651-53, 729-32, 763-66 Subprime lending programs, guidance 165 Revision 133 Financial management services, small business use 189 Tables 141-48 Financial markets, economic developments 104-06, 120-25, Information, protection of consumer 166 502, 504—26, 519-22 Insurance products, consumer protection rules 27-30, 309 Financial services used by small businesses: Evidence Interest income and expenses, commercial banks 376, 378 from the 1998 Survey of Small Business Finances, Interest on demand deposits and balances at Federal article 183-205 Reserve Banks, testimony 301-05 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A84 Federal Reserve Bulletin • December 2001 Pages Pages Interest rates Litigation—Continued Commercial banks, tables 384-93 Final enforcement decisions and orders—Continued Financial markets 121, 519-21 Golden, Sammie R 19, 42 International Banking Act of 1978 Guaranty Bank 19 Orders issued under Guaranty Financial Corporation 19 Abbey National Treasury Service pic, Hill, Kaye G 66, 99 London, England 750-51 Incus Co., Ltd 457 Banco de Bogota, S.A., Santafe de Bogota, D.E., Kann de Gouverneur, Nelly 536 Colombia 552-54 Kingdon, Bruce Jeffrey 66, 101 Banco de Credfto del Peru, Lima, Peru 708-10 Maryland Permanent Capital Corporation 168 Banco Pastor S.A., A Coruna, Spain 555 Mcllroy Bank and Trust 775 Bank Austria Aktiengesellschaft, Vienna, Austria 556-58 New Century Bank 168, 738 Caja de Ahorros y Monte de Piedad de Madrid, Operation Casablanca 65 Madrid, Spain 785 People's Bancshares, Inc 66 DePfa Bank AG, Wiesbaden, Germany 710-12 Peterson, George J 42 Euroclear Bank, Brussels, Belgium 90 Plante, Harvey 536 Kookmin Bank, Seoul, Korea 786-88 Rhon, Carlos Hank 457 RHEINHYP Rheinische Hypothekenbank AG, Scott, Edward D 309 Frankfurt am Main, Germany 558 U.S. Trust Corporation 536 Societe Generale, Paris, France 353-55 Union Planters National Bank 42 International Banking Operations (Reg. K) 773 United Central Bank 19, 42 International USABancShares.com, Inc 310 Developments, monetary policy 127-31, 524-27 Valley Independent Bank 168 Operations, commercial banks 382 Index of orders and actions taken 37, 277, 712 Trade and world economy, testimony 403-05 Pending cases involving the Board of Governors, Transactions, article 283-94 lists of 42, 98, 181, 280, Investment income 290-92 359, 429, 481, 564, Investments 632, 716, 755, 791 Equity, in nonfinancial companies 167 Termination of enforcement actions issued by Board of Fixed and inventory 508, 509 Governors Securities across borders, article 633-50 Asahi Bank, Ltd 44 Written agreements approved by Federal Reserve Banks JACOWSKI, Mary Cross, promoted to Deputy Associate CSB Bancorp, Inc 45 Director, Division of Banking Supervision Guaranty Financial Corporation 45 and Regulation 67 People's Bancshares, Inc 101 Jennings, Jack P., promoted to Associate Director, USABancShares.com, Inc 365 Division of Banking Supervision and Regulation 67 Loan-to-deposit ratios, banking organizations, report 535 Joint Central Bank Research Conference on Risk Loans Measurement 306 Accounting and reporting guidance 308 Business 370 KELLEY, Governor Edward W., Jr., intended resignation 452 Commercial and industrial 379 Kohn, Donald, appointed Adviser to the Board, Home equity 373 Office of Board Members 536 Household 372 Kos, Dino, Executive Vice President, Federal Reserve Performance, commercial banks 379 Bank of New York, articles 394-99, 576-81, 757-62 Syndicated 736 Lopez, John, appointed Special Assistant to the Board, LABOR MARKETS, economic developments 117-19, 515-18 Office of Board Members 219 Lambert, Michael J., article 567-75 LAN equipment 138 MADIGAN, Brian, appointed Deputy Director, LCBO Program 47-57 Division of Monetary Affairs 536 Lee, Gary A., article 633-50 Martinson, Michael G., promoted to Associate Director, Leveraged financing, risks 413 Division of Banking Supervision and Regulation 67 Levitt, Arthur, Securities and Exchange Commission, Marycz, Susan F., appointed Assistant Director, Division of resignation 61 Information Technology 219 Liabilities, commercial banks 374 Massey, Raymond H., promoted to Associate Director, Litigation Division of Information Technology 219 Final enforcement decisions and orders issued by Board of Member banks 165, 663 Governors Membership list, Board of Governors AmericasBANK Corp 738 1913-2001 565 Asahi Bank, Ltd 19 Membership of State Banking Institutions in the Banca Serfin, S.A., Lomas de Sante Fe, Mexico 66 Federal Reserve System (Reg. H) 169-70, 414, 673-678 Banco Internacional, S.A., Mexico City, Mexico 66 Merchant banking activities 164, 405-11 Banco Nacional de Mexico, Mexico City, Mexico 66 Meyer, Governor Laurence H., testimonies Banco Santander, Madrid, Spain 66 Bank securities 654-60 Bancomer, S.A., Mexico City, Mexico 66, 101 Interest on demand deposits and balances at Bank of Ephraim 775 Federal Reserve Banks 301-05 Bank of Greenville 168 Merchant banking activities 405-11 Bank of Rogers 536 Real estate brokerage and management 445-48 Bankers Trust Company 359-65 Monetary aggregates 126, 523 Barnett Bank, N.A 99-100 Monetary policy reports to the Congress 103-31, 209-12, Benton, Oren L 309 213-16, 501-27, 588-97 Caisse Nationale de Credit Agricole, Paris, France .... 19, 101 Money stock data, revision 219-23 Commercial and Savings Bank of Millersburg 19 Credit Agricole Indosuez, New York, New York 19 Mortgage loans, diclosure requirement 6 Credit Agricole Indosuez, Paris, France 19 NOW account fees 4 CSB Bancorp, Inc 19 First Community Bank 309 O'NEILL, Paul, Secretary of the Treasury, nomination 61 Fonkenell, Guillaume Henri Andre 310, 359-65 Oil imports 290 Goglia, Kenneth 599 Oil prices in 2000 285 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Index to Volume 87 A85 Pages Pages On-line banking, regulation 454 Spaniel, William G., appointed Assistant Director, Open market operations 482-99, 522, 533 Division of Banking Supervision and Regulation 67 Opportunities and challenges of the U.S. dollar as an Spanish-language consumer resources 217, 598 increasingly global currency: A Federal Reserve Stanton, Kristin D., article 567-75 perspective, article 567-75 State and local government spending 513 State member banks, financial subsidiaries rule 663 PALMER, David E„ article 47-57 Statements to the Congress (See Testimony of Federal Payments system risk policy 453, 736 Reserve officials) Personal information, access to 419 Stop-payment order fees 6 Priced services for depository institutions, Subordinated debt, report 166 proposed calculation 64, 736, 775 Subprime lending programs, guidance 165 Prices, economic developments 117-19, 518 Supervision, large banking organizations 47-57 Privacy Act 419 Survey of Consumer Finances 453 Privacy, consumer information 166, 308, 737 Survey of Small Business Finances 448-51 Profitability, commercial banks 375 Sussan, Sidney M., promoted to Adviser, Division of Public disclosure guidance 307 Banking Supervision and Regulation 67 Publications Swap arrangements 662, 760 Annual Report, 2000 536 Syndicated loans 736 Annual Report: Budget Review, 2001 536 Bank Holding Company Supervision Manual 65, 455 TEPLIN, Albert M., article 431-41 Commercial Bank Examination Manual 18, 455, 776 Terrorist attacks, effect on economy 661, 733, 745 When Your Home is on the Line: What You Should Know Testimony of Federal Reserve officials about Home Equity Lines of Credit, brochure 309 Bank securities (Governor Meyer) 654-60 Consumer Rental Purchase Agreement Act, H.R. 1701 REAL ESTATE (Dolores S. Smith, Director, Division of Brokerage and management, testimony 445-48 Consumer and Community Affairs) 586-88, 646-8 Financial holding companies, services 65 Credit card industry (Dolores S. Smith, Director, Loans 372, 380 Division of Consumer and Community Affairs) 769-72 Reciprocal currency arrangements, Federal Open Credit to small businesses (Vice Chairman Ferguson) .... 448-51 Market Committee 744 Discontinuance in Federal Reserve Bulletin 597, 660 Regulations, Board of Governors (See also Rules) Economy, U.S. (Chairman Greenspan) 767 A, Extensions of Credit by Federal Reserve Banks 169, 231, Federal budget and fiscal policy 417, 465, 747, 111 (Chairman Greenspan) 157-60, 298-301 C, Home Mortgage Disclosure 17, 63, 75 Ferguson, Vice Chairman Roger W., nomination E, Electronic Fund Transfers 217, 231-33, 276, (Vice Chairman Ferguson) 531 306, 323-27 Financial holding companies and merchant banking H, Membership of State Banking Institutions (Governor Meyer) 405-11 in the Federal Reserve System 169-70, 414, 673-78 Interest on demand deposits and balances at Federal K, International Banking Operations 773 Reserve Banks (Governor Meyer) 301-05 W, Federal Reserve Act, Sections 23A and 23B 414 International trade and world economy Y, Bank Holding Companies and Change (Chairman Greenspan) 403-05 in Bank Control 64, 75, 170-77, 417-19 Monetary policy (Chairman Greenspan) 209-12, 213-16, Z, Truth in Lending 16, 63 588-97 Reinhart, Vincent R. Real estate brokerage and management Appointed Director, Division of Monetary Affairs 536 (Governor Meyer) 445-48 Election vote to Federal Open Market Committee 671 Terrorist attacks, effect on economy Reserves, required 16, 494, 774 (Chairman Greenspan) 733 Residency, concept regarding investment 641 U.S. banking system (Chairman Greenspan) 532-34 Residential mortgage originations, correction, table 4.411 663 Thrift Institutions Advisory Council 61 Richards, Heidi W., appointed Assistant Director, Trade deficit, U.S 287-90, 514 Division of Banking Supervision and Regulation 67 Trade, goods and services 115, 287-90 Risk measurement, conference 306 Treasury and Federal Reserve foreign exchange operations Robb, Alicia M„ article 183-205 Articles 149-53, 394-99, 576-81, 757-62 Rules, final Discontinuation in Federal Reserve Bulletin 580, 761 Bank Holding Companies and Change in Bank Control Truth in Lending (Reg. Z) 16, 63 (Reg. Y), amendment to 170-77 Consumer protections for depository U.S. BANKING system, testimony 532-34 institution sales of insurance 27-30 U.S. flow of funds accounts and their uses, article 431-41 Privacy Act 419 U.S. system for measuring cross-border investment Ryback, William A., promoted to Senior Associate Director, in securities: A primer with a discussion of recent Division of Banking Supervision and Regulation 67 developments, article 633-50 Unilateral transfers 293 SAVINGS account fees 5 Schwarz, Krista, articles 394-99, 576-81 VIDEO Securities Identity Theft: Protect Yourself 454 Bank holdings 374 Bank, interim rules 654-60 WARNOCK, Francis E., article 633-50 Investment accounts 374 Wassom, Molly S., promoted to Associate Director, Investment, cross-border 633-50 Division of Banking Supervision and Regulation 67 Shanks, Margaret McCloskey, appointed Assistant Web sites Secretary of the Board, Office of the Secretary 536 Consumer regulations 17 Small banks, economic performance, article 719-28 Students, educators, and general public 738 Small businesses (See Businesses, small) When Your Home is on The Line: What You Should Small, Richard A., promoted to Deputy Associate Director, Know about Home Equity Lines of Credit, brochure 309 Division of Banking Supervision and Regulation 67 Wolken, John D., article 183-205 Smith, Dolores, Director, Division of Consumer and Wright, David M., appointed Assistant Director, Community Affairs, testimony 769-72 Division of Banking Supervision and Regulation 67 Smith, Michelle A., appointed Assistant to the Board, Office of Board Members 219 ZAKRAJSEK, Egon, article 367-93 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A86 Federal Reserve Bulletin • December 2001 Publications of Interest FEDERAL RESERVE REGULATORY SERVICE To promote public understanding of its regulatory func- The Payment System Handbook deals with expedited tions, the Board publishes the Federal Reserve Regu- funds availability, check collection, wire transfers, and latory Service, a four-volume loose-leaf service con- risk-reduction policy. It includes Regulations CC, J, and taining all Board regulations as well as related statutes, EE, related statutes and commentaries, and policy interpretations, policy statements, rulings, and staff statements on risk reduction in the payment system. opinions. For those with a more specialized interest in For domestic subscribers, the annual rate is $200 for the Board's regulations, parts of this service are pub- the Federal Reserve Regulatory Service and $75 for lished separately as handbooks pertaining to monetary each handbook. For subscribers outside the United policy, securities credit, consumer affairs, and the pay- States, the price including additional air mail costs is ment system. $250 for the service and $90 for each handbook. These publications are designed to help those who The Federal Reserve Regulatory Service is also availmust frequently refer to the Board's regulatory materi- able on CD-ROM for use on personal computers. For a als. They are updated monthly, and each contains cita- standalone PC, the annual subscription fee is $300. For tion indexes and a subject index. network subscriptions, the annual fee is $300 for 1 con- The Monetary Policy and Reserve Requirements current user, $750 for a maximum of 10 concurrent Handbook contains Regulations A, D, and Q, plus users, $2,000 for a maximum of 50 concurrent users, related materials. and $3,000 for a maximum of 100 concurrent users. The Securities Credit Transactions Handbook con- Subscribers outside the United States should add $50 tains Regulations T, U, and X, dealing with exten- to cover additional airmail costs. For further informasions of credit for the purchase of securities, together tion, call (202) 452-3244. with related statutes, Board interpretations, rulings, All subscription requests must be accompanied by a and staff opinions. Also included is the Board's list of check or money order payable to the Board of Goverforeign margin stocks. nors of the Federal Reserve System. Orders should be The Consumer and Community Affairs Handbook addressed to Publications Services, mail stop 127, Board contains Regulations B, C, E, G, M, P, Z, AA, BB, and of Governors of the Federal Reserve System, Washing- DD, and associated materials. ton, DC 20551. GUIDE TO THE FLOW OF FUNDS ACCOUNTS A new edition of Guide to the Flow of Funds Accounts and describes how the series is derived from source is now available from the Board of Governors. The new data. The Guide also explains the relationship between edition incorporates changes to the accounts since the the flow of funds accounts and the national income and initial edition was published in 1993. Like the earlier product accounts and discusses the analytical uses of publication, it explains the principles underlying the flow of funds data. The publication can be purchased, flow of funds accounts and describes how the accounts for $20.00, from Publications Services, Mail Stop 127, are constructed. It lists each flow series in the Board's Board of Governors of the Federal Reserve System, flow of funds publication, "Flow of Funds Accounts of Washington, DC 20551. the United States" (the Z.l quarterly statistical release), Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A87 Federal Reserve Statistical Releases Available on the Commerce Department's Economic Bulletin Board The Board of Governors of the Federal Reserve Sys- For further information regarding a subscription to tem makes some of its statistical releases available to the economic bulletin board, please call (202) 482the public through the U.S. Department of Com- 1986. The releases transmitted to the economic bullemerce's economic bulletin board. Computer access tin board, on a regular basis, are the following: to the releases can be obtained by subscription. Reference Number Statistical release Frequency of release H.3 Aggregate Reserves Weekly/Thursday H.4.1 Factors Affecting Reserve Balances Weekly/Thursday H.6 Money Stock Weekly/Thursday H.8 Assets and Liabilities of Insured Domestically Chartered Weekly/Monday and Foreign Related Banking Institutions H.10 Foreign Exchange Rates Weekly/Monday H.15 Selected Interest Rates Weekly/Monday G.5 Foreign Exchange Rates Monthly/end of month G.17 Industrial Production and Capacity Utilization Monthly/midmonth G.19 Consumer Installment Credit Monthly/fifth business day Z.l Flow of Funds Quarterly Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis