Federal Reserve Bulletin, 2002-02

Volume 88 • Number 2 • February 2002 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

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

Table of Contents 67 THE EVOLUTION OF THE FEDERAL Appointments of new members and the chair and RESERVE'S INTRADAY CREDIT POLICIES vice chair of the Consumer Advisory Council. One of the Federal Reserve's roles is to provide Increase in the asset-size exemption threshold payment services to depository institutions and to under Regulation C. the U.S. Treasury. Many of the nation's transfers Preliminary figures on income of the Federal of funds—whether they are large-dollar payments Reserve Banks. for financial market transactions or small-value business and consumer payments—settle through Adoption of final interagency rules concerning depository institutions' accounts held at the Fed- the regulatory capital treatment of nonfinancial eral Reserve for reserve-maintenance purposes equity investments. and transaction processing. If a depository insti- Minutes of Board discount rate meetings. tution has insufficient balances during the day to cover its debits, it will run a negative balance Enforcement actions. or "daylight overdraft" in its Federal Reserve account until sufficient funds are received later in 91 LEGAL DEVELOPMENTS the day. Because depository institutions generally Various bank holding company, bank service hold a relatively small amount of funds overnight corporation, and bank merger orders; and pendin their Federal Reserve accounts in relation to ing cases. the trillions of dollars of payments processed by the Federal Reserve each day, the Federal Reserve 138 MEMBERSHIP OF THE BOARD OF extends intraday credit to ensure the smooth func- GOVERNORS OF THE FEDERAL RESERVE tioning of the U.S. payment system. SYSTEM, 1913-2002 To reduce the risks that depository institutions List of appointive and ex officio members. present to the Federal Reserve through their use of daylight credit and to address the risks that A1 FINANCIAL AND BUSINESS STATISTICS payment systems, in general, present to the bank- These tables reflect data available as of ing system and other sectors of the economy, the December 27, 2001. Federal Reserve Board in 1985 developed a payments system risk (PSR) policy. One of the pri- A3 GUIDE TO TABLES mary goals of the PSR policy is to control deposi- A4 Domestic Financial Statistics tory institutions' use of Federal Reserve intraday A42 Domestic Nonfinancial Statistics credit, and as the policy has evolved, the Board A50 International Statistics has adopted specific methods for controlling daylight overdrafts. The history of the Board's PSR A63 GUIDE TO SPECIAL TABLES AND policy, trends in daylight overdraft and payment STATISTICAL RELEASES activity, and a possible future policy direction are discussed in this article. A76 INDEX TO STATISTICAL TABLES A78 BOARD OF GOVERNORS AND STAFF 85 ANNOUNCEMENTS A80 FEDERAL OPEN MARKET COMMITTEE AND Swearing-in ceremony for Governors Bies and STAFF; ADVISORY COUNCILS Olson. A82 FEDERAL RESERVE BOARD PUBLICATIONS Resignation of Governor Laurence H. Meyer. A84 MAPS OF THE FEDERAL RESERVE SYSTEM Appointments of new members and the president and vice president of the Thrift Institutions Advi- A86 FEDERAL RESERVE BANKS, BRANCHES, sory Council. AND OFFICES Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies Stacy Panigay Coleman, of the Board's Division of daylight credit and to address the risks that payment Reserve Bank Operations and Payment Systems, pre- systems, in general, present to the banking system pared this article. and other sectors of the economy, the Federal Reserve Board in 1985 developed a payments system risk One of the Federal Reserve's roles is to provide (PSR) policy. One of the primary goals of the PSR payment services to depository institutions and to policy is to control depository institutions' use of the U.S. Treasury. Many of the nation's transfers of Federal Reserve intraday credit, and as the PSR polfunds—whether they are large-dollar payments for icy has evolved, the Board has adopted specific methfinancial market transactions or smaller-value busi- ods for controlling daylight overdrafts. ness and consumer payments—settle through deposi- One of the first methods for controlling daylight tory institutions' accounts held at the Federal Reserve overdrafts was setting a maximum for the daylight for reserve-maintenance purposes and transaction overdraft position (net debit cap) that a depository processing. institution could incur in its Federal Reserve account. In settling these payments, the Federal Reserve However, despite the introduction in 1985 of net Banks post debits and credits to depository institu- debit caps, the amount of daylight credit the Federal tions' Federal Reserve accounts throughout the busi- Reserve was extending to depository institutions conness day. If a depository institution has insufficient tinued to grow. balances during the day to cover its debits, the insti- From 1986 to 1993, the value of daylight overtution will run a negative balance or "daylight over- drafts grew at an average annual rate of about 13 perdraft" in its Federal Reserve account until sufficient cent. In fact, beginning in 1989, daylight overdrafts funds are received later in the day. Depository institu- increased dramatically despite a reduction in net tions often incur daylight overdrafts in their Federal debit caps the year before. Consequently, the Board Reserve accounts because of the mismatch in timing decided to create an economic incentive for deposibetween the settlement of payments owed and the tory institutions to reduce their reliance on Federal settlement of payments due. Because depository insti- Reserve daylight credit by charging them a fee for its tutions generally hold a relatively small amount of use. funds overnight in their Federal Reserve accounts in In 1994, shortly after the Federal Reserve began relation to the trillions of dollars of payments pro- charging daylight overdraft fees, peak daylight overcessed by the Federal Reserve each day, the Federal drafts fell almost 40 percent, from approximately Reserve extends intraday credit to ensure the smooth $125 billion to less than $80 billion. The fee was functioning of the U.S. payment system. initially set at an annual rate of 24 basis points in Each depository institution is expected to end 1994, with planned increases in 1995 and 1996.1 In each business day with a zero or positive balance in 1995, however, the Board decided to raise the rate its Federal Reserve account. Otherwise, the Federal charged on daylight overdrafts to 36 basis points Reserve could incur significant losses if institutions instead of the 48 basis points that had been planned failed with large overdrafts in their accounts. In addi- and to defer additional rate increases because daytion, the significant payment activity that occurs light overdrafts had fallen substantially. The Board on private large-dollar payment systems gives rise stated that it would evaluate additional rate increases to credit, liquidity, operational, and legal risks; these based on experience at the new fee level. risks must be managed by the system. Settlement As part of its obligation to further evaluate fee failures on such private large-dollar systems that lack increases and in recognition that significant changes certain risk controls could create serious disruptions had occurred in the banking, payments, and reguin the financial markets. latory environment since 1995, the Board decided to To reduce the risks that depository institutions present to the Federal Reserve through their use of 1. 57 Fed. Reg. 47084 (October 14, 1992). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

68 Federal Reserve Bulletin • February 2002 conduct a broad review of its daylight credit policies systemic risk in the financial markets.3 If an institubeginning in early 2000. The review included an tion participating on a private large-dollar payments analysis of trends in payment activity and proposals network were unable or unwilling to settle its net for changes in the Board's PSR policy. The history of debit position, the institution's creditors on that netthe Board's PSR policy, trends in daylight overdraft work might face lower credit positions than expected and payment activity, and a possible future policy and then be unable to settle their commitments in direction are discussed in this article. that network or other networks. Serious repercussions could spread to other participants in the network, to other depository institutions, and to the nonfinancial HISTORY OF THE BOARD'S economy generally. INTRADAY CREDIT POLICIES During the initial studies of payment system risk, Federal Reserve staff members and others noted that Initial Studies of Payment System Risk settlement failures in CHIPS could result in systemic risk because, by the early 1980s, CHIPS had not fully In the late 1970s, the Federal Reserve began to assess implemented certain risk controls to help guarantee the risks associated with daylight credit extensions settlement.4 In addition, CHIPS participants extended in large-dollar payment systems, including Fedwire. very large amounts of intraday credit to each other During the 1980s, Federal Reserve staff and private- and often permitted customers in a net credit position sector groups issued several reports identifying the to use their expected funds before settlement. Under causes, amounts, and risks of daylight overdrafts, as these circumstances, the default of a large CHIPS well as options for controlling them. According to participant could have caused the unwinding of that one of the reports, aggregate daily daylight overdrafts day's net settlement, potentially leaving other particiin depository institutions' Federal Reserve accounts pants with very large, sudden shortfalls in funding averaged approximately $30 billion, and the majority late in the day. The Federal Reserve was concerned of these overdrafts were attributable to fewer than that the failure of a participant on a private largetwenty institutions.2 In addition, institutions incurring dollar system could affect the liquidity and sollarge overdrafts on Fedwire frequently had large vency of multiple banks and lead to instability in the credit exposures on the Clearing House Interbank banking system and possibly the economy in general. Payments System (CHIPS), a private, large-dollar In February 1984, the Board issued a report highpayment system operated by the New York Clear- lighting a number of conditions that supported the ing House. (For a brief description of Fedwire need for payment system risk controls.5 The condiand CHIPS, see the box "Large-Value Payment tions included the potential costs to the private and Systems.") public sector from the failure of a depository institu- These early studies of payment system risk tion in an overdraft position, the lack of existing acknowledged that the risk of large losses resulting private-sector incentives to reduce credit exposures, from an unexpected bank failure was small but noted and the potential moral hazard arising from a deposithat such a failure had the potential for a significant tory institution's expectation that the Federal Reserve negative effect on financial markets and the payments would intervene to prevent settlement failures. mechanism. Thus, even a low probability of an extremely costly failure suggested the need for prudent policies to address payment system risk. Con- 3. Fedwire funds transfers are final and irrevocable when a Federal sequently, the Federal Reserve began to develop its Reserve Bank credits the receiving institution's account or sends the PSR policies to address both systemic risk and the receiving institution an advice of payment, whichever occurs first (12 C.F.R. 210, Appendix A to Subpart B). Federal Reserve Banks' credit risk. 4. Association of Reserve City Bankers, Report on the Payments Although federal regulations guarantee the final- System (Washington, D.C.: ARCB, April 1982) and Risks in the ity of payments over Fedwire, thus eliminating Electronic Payments Systems (Washington, D.C.: ARCB, October 1983); Board of Governors of the Federal Reserve System, Reducing settlement-failure risk for such payments, settlement Risk on Large-Dollar Transfer Systems (Washington, D.C.: Board of failures on private large-dollar systems that lack both Governors, April 1985); Task Force on Controlling Payments System immediate finality and strong risk controls could Risk (Report to the Payments System Policy Committee of the Federal Reserve System), Controlling Risks in the Payments System (Washingcreate serious disruptions and could even lead to ton, D.C.: Board of Governors, August 1988). 5. See Risks on Large-Dollar Transfer Systems. In 1984, the Board also issued the Policy Statement on Use of the Federal Reserve's Wire 2. See Board of Governors of the Federal Reserve System, Risks on Transfer Network, which explained that institutions should not use Large-Dollar Transfer Systems (Washington, D.C.: Board of Gover- Fedwire to avoid risk-reduction measures on private-sector systems nors, February 1984). (49 Fed. Reg. 13194 [April 3, 1984]). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 69 Large-Value Payment Systems Fedwire Funds Transfer System CHIPS The Fedwire funds transfer system is a real-time gross set- The Clearing House Interbank Payments System is a banktlement system. Transactions are continuously settled on owned payment system operated by the New York Clearing an individual, order-by-order basis without netting. When a House that has existed for more than thirty years to clear depository institution initiates a Fedwire funds transfer, it and settle business-to-business transactions. Since CHIPS irrevocably authorizes the Federal Reserve to debit its Fed- was launched in 1970, it has undergone several modificaeral Reserve account for the amount of the transfer. The tions to reduce the risks it presented to the payment system. Federal Reserve then credits the account of the receiving For example, in 1981, CHIPS moved from next-day to depository institution. This immediate finality of payment is same-day settlement. In 1984, CHIPS added rules on bilatthe major distinguishing characteristic of the Fedwire funds eral limits, and two years later, CHIPS imposed sender net transfer service. debit caps, thereby limiting the risk that a single participant could present to the system. In 1990, settlement-day finality was guaranteed in case of an insolvency of the system's Fedwire Book-Entry Securities System largest debtor through the imposition of a loss-sharing formula and collateral requirements. Most recently, on Janu- The Fedwire book-entry securities system is a real-time, ary 22, 2001, the Clearing House Interbank Payments Comdelivery-versus-payment (DVP), gross settlement system pany L.L.C. converted CHIPS from an end-of-day, multithat allows for the immediate, simultaneous transfer of lateral net settlement system to one that provides final government securities against payment. A DVP system settlement for all payment orders as they are released. ensures that the final transfer of one asset occurs if and only Payment instructions submitted to the queue that remain if the final transfer of another asset (or other assets) occurs. unsettled at the end of the day, known as the residual, are The Fedwire securities system consists of a safekeeping tallied on a multilateral net basis.1 function and a transfer and settlement function. The safekeeping function involves the electronic storage of securi- 1. Payments Risk Committee (Intraday Liquidity Management Task ties records in custody accounts; the transfer and settlement Force), "Intraday Liquidity Management in the Evolving Payment System: function involves the electronic transfer of securities A Study of the Impact of the Euro, CLS Bank, and CHIPS Finality" (New York, N.Y.: PRC, April 2000); available on line at http://www.ny.frb.org/prc/ between parties, either free of payment or against payment. intraday.htm. 1985 Policy Statement assessment and require a modification to its cap class if the institution's level of daylight overdrafts and In May 1985 the Board issued the Policy Statement credit exposures constituted an unsafe or unsound Regarding Risks on Large-Dollar Wire Transfer Sys- banking practice. tems, which incorporated the findings of the earlier Along with each cap class, the Board implemented reports.6 The policy statement introduced four cate- two cap multiples: one for the maximum allowable gories of cross-system sender limits, or net debit overdraft or exposure on any day (single-day cap) caps, on daylight overdrafts and credit exposures and one for the maximum allowable average of the over all large-dollar networks, including Fedwire and peak daily overdrafts or exposures in a two-week CHIPS. A depository institution could choose one period (two-week average cap) (table 1). An instituof the four cross-system net debit cap categories tion's cap category, the associated cap multiple, and or classes by evaluating its creditworthiness, credit its reported capital determined, and continue to deterpolicies, and operational controls and procedures, an evaluation referred to as a self-assessment. If the depository institution believed that its policies, 1. Multiples for net debit caps, 1985 controls, and procedures were strong, it could adopt Single-day Two-week average a "high" cap class; weaknesses required the adop- CCaapp ccllaassss cap multiple1 cap multiple2 tion of a lower cap class. Although the choice of a High 3.0 2.0 net debit cap class was voluntary, an institution's Above average 2.5 1.5 bank examiners could review the institution's self- Average 1.5 1.0 0 0 NOTE. Net debit cap = cap multiple x capital measure (see text note 7). 1. Maximum allowable overdraft on any day. 2. Maximum allowable average of the peak daily overdrafts in a two-week 6. 50 Fed. Reg. 21120 (May 22, 1985). reserve-maintenance period. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

70 Federal Reserve Bulletin • February 2002 mine, the size of the net debit cap. An institution's Policy Changes: 1987-90 net debit cap is calculated as follows: In 1987, the Board issued an interim policy state- Net debit cap = cap multiple x capital measure.7 ment, pending re-evaluation of the Board's payment system risk-reduction program, that expanded on For example, an institution with a high net debit cap the 1985 statement.9 The 1987 policy statement could incur a single-day daylight overdraft of up to contained several provisions. Net debit caps were to three times its capital without breaching its single- be reduced by 25 percent in two phases: 15 percent in day net debit cap. January 1988 and 10 percent in May 1988. Deposi- The Federal Reserve implemented the higher tory institutions were exempted from performing a single-day net debit cap to limit excessive daylight self-assessment if their board of directors approved overdrafts on any day and to ensure that institutions a de minimis net debit cap, which was set at the developed internal controls that focused on daily lesser of $500,000 or 20 percent of adjusted priexposures. The purpose of the two-week average net mary capital.10 A $50 million limit was imposed on debit cap was to reduce the overall levels of over- individual government securities transfers. Finally, drafts while allowing for fluctuations in the value of interaffiliate Fedwire funds transfers were permitted daily payments. Overall, the Board expected that, provided certain safeguards were observed. because of the policy, there would be a reduction in Within a year after the Board reduced net debit aggregate daylight overdrafts and in the number of caps, daylight overdrafts as a percentage of dollars depository institutions consistently relying on day- transferred over Fedwire fell approximately 5.5 perlight credit. cent. Despite this decline, the Board noted that vir- In establishing net debit caps, however, the Board tually all depository institutions remained generally acknowledged that some intraday credit would be unconstrained relative to their reduced net debit necessary for the smooth operation of the payment caps; therefore, it sought to reduce the aggregate system, especially the U.S. government securities level of payment system risk further and to shift a market. U.S. government securities settle through higher proportion of risk to the private sector. Consedepository institutions' Federal Reserve accounts quently, the Board requested comment on proposed and, until the Federal Reserve began charging a changes to its payment system risk-reduction profee on daylight overdrafts, contributed to signifi- gram in mid-1989.11 Some of these changes included cant overdrafts at some banks. Specifically, when a (1) charging a fee for depository institutions' use depository institution receives a government secur- of Federal Reserve daylight credit, (2) modifying the ity over Fedwire, the institution's Federal Reserve criteria for measuring daylight overdrafts, (3) includaccount is automatically charged for the purchase ing overdrafts caused by government securities transprice of the security.8 The Board recognized that fers when measuring an institution's daylight overreceivers of government securities generally cannot drafts against its cap, and (4) adding an exempt-fromcontrol the timing of daylight overdrafts associated filing cap category.12 The Board's proposal presumed with these transfers (referred to as securities-related that CHIPS would revise its rules in the near future to overdrafts). As a result, the Board had concerns provide greater assurance of settlement-day finality that daylight overdraft restrictions might impair the and that other private-sector delivery-versus-payment smooth functioning of the U.S. government securities systems for securities, netting arrangements, and offmarket and, consequently, the Federal Reserve's shore dollar clearing systems would also adopt sysability to conduct monetary policy through open mar- temic risk-reducing policies.13 ket operations. Therefore, the Board exempted such securities-related overdrafts from net debit caps and other quantitative controls to avoid any potential market disruptions. 9. 52 Fed. Reg. 29255 (August 6, 1987). 10. The de minimis cap is intended for depository institutions that incur relatively small overdrafts and thus pose minimal risk to the Federal Reserve. 11. 54 Fed. Reg. 26094 (June 21, 1989). 12. The proposed filing exemption would apply to institutions that create only low-dollar risks for the Reserve Banks and that incur small 7. The capital measure used in calculating a depository institution's overdrafts relative to their capital. net debit cap depends upon its chartering authority and home-country 13. A delivery-versus-payment system is a mechanism that ensures supervisor. that the final transfer of one asset occurs if and only if the final 8. Transfers of government securities occur electronically among transfer of another asset occurs. Assets could include monetary assets, depository institutions over the Fedwire book-entry securities system. securities, or other financial instruments. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 71 After considering the comments received on its institution's Federal Reserve account balance (fundsmid-1989 proposal, the Board issued a revised policy related overdrafts), have the potential to become statement in May 1990. The revised policy statement overnight overdrafts. did not include daylight overdraft fees or a modified To protect the Federal Reserve Banks from the method for measuring daylight overdrafts. Because very large exposures that resulted from settling govnearly 75 percent of commenters opposed certain ernment securities transactions, the Board's 1990 polaspects of the pricing and measurement proposals, icy required collateral from depository institutions the Board decided to reevaluate these proposals with positive net debit caps that frequently exceeded before incorporating them into the policy. their caps by material amounts solely because of The 1990 statement incorporated the Board's other government securities transactions.15 Furthermore, proposed changes. First, depository institutions' the Board exempted collateralized securities-related credit exposures on CHIPS were excluded from the overdrafts from net debit cap limits because it did not cross-system net debit cap because CHIPS had imple- want to unduly disrupt the government securities mented loss-sharing and collateral agreements to market. The Board recognized that (1) collateralized improve settlement-day finality. Second, adjusted daylight overdrafts presented less risk to the Federal primary capital was replaced with "qualifying" (risk- Reserve Banks, (2) depository institutions could not based) capital for purposes of calculating net debit control the timing of the receipt of government secucaps. Third, an exempt-from-filing cap equal to the rities, and (3) the government securities market was lesser of $10 million or 20 percent of an institution's important for the Federal Reserve's implementation capital was incorporated. Fourth, the existing de mini- of monetary policy. mis cap multiple was changed to 20 percent of an institution's capital (table 2). Finally, uncollateralized daylight overdrafts caused by government securities Introduction of Daylight Overdraft Fees: transfers were to be included when measuring deposi- 1991-95 tory institutions' daylight overdrafts against their net debit caps.14 In January 1991, the Board again requested comment The Board ultimately decided to include uncollat- on assessing fees for daylight overdrafts incurred eralized securities-related daylight overdrafts when by depository institutions in their Federal Reserve determining an institution's compliance with its cap, accounts and on a proposed method for posting debits even though depository institutions could not control and credits to these accounts to measure daylight the timing of the receipt of government securities overdrafts for pricing.16 To facilitate the pricing of transfers. The Board was concerned that intraday daylight overdrafts, the Board's proposed method securities-related overdrafts, like intraday overdrafts of measuring them more closely reflected the timing resulting from all other payment activity affecting an of actual transactions affecting an institution's intraday Federal Reserve account balance.17 This mea- 14. 55 Fed. Reg. 22087 and 22092 (May 31, 1990). When the Board introduced daylight overdraft fees in 1994, it raised the de 15. To determine whether an institution exceeded its net debit cap minimis cap to 40 percent of capital. See 59 Fed. Reg. 54915 (Novem- solely because of government securities activity, the Reserve Bank ber 2, 1994). determined what activity in an institution's Federal Reserve account was attributable to funds transfers and other payment transactions and what activity was attributable to government securities transfers. For the purposes of the policy, "frequently" exceeding the cap meant 2. Multiples for net debit caps, 1985 and 1990 more than three occasions in two consecutive two-week reservemaintenance periods, and "material amounts" meant amounts in Single day Two-week average excess of 10 percent of the institution's cap. CCaapp ccllaassss 16. 56 Fed. Reg. 3098 (January 28, 1991). 1985 1990 1985 1990 17. At the time, Fedwire funds and government securities transfers were posted to institutions' Federal Reserve accounts as they were High 3.0 2.25 2.0 1.50 processed during the business day (as they still are today). The net of Above average 2.5 1.875 1.5 1.125 Average 1.5 1.125 1.0 .75 all automated clearinghouse (ACH) transactions was posted as if the De minimis .20 .20 transactions occurred at the opening of business, regardless of whether Exempt1 $10 million $10 million the net was a debit or credit balance. All other or "non-wire" activity or or was netted at the end of the business day, and if the net balance was a .20 .20 credit, the credit amount was added to the opening balance. If the net Zero 0 0 0 0 balance was a debit, the debit amount was deducted from the closing balance. Under this method, an institution could use all of its non-wire NOTE. See notes to table 1. net credits to offset any Fedwire funds or government securities debits 1. The exempt-from-filing cap is equal to the lesser of $10 million or during the day but postpone the need to cover non-wire net debits until 20 percent of the institution's capital measure. . . . Not applicable. the close of the day. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

72 Federal Reserve Bulletin • February 2002 surement method incorporated specific account post- that some increase in the rate charged on daylight ing times for different types of transactions and was overdrafts was needed to provide additional incenintended, in large part, to support the assessment tives for institutions to reduce daylight overdrafts of daylight overdraft fees. The Board expected that related to funds transfers and stated that it would pricing daylight credit would create an incentive for consider future fee increases. institutions to reduce overdrafts at Federal Reserve Banks, thereby reducing direct Federal Reserve risk and contributing to economic efficiency. Recent Review of the Board's Intraday Credit In October 1992, the Board announced that the Policies Federal Reserve Banks would begin using new criteria for measuring institutions' daylight overdraft lev- In early 2000, the Board recognized that significant els and charging a fee for the use of daylight credit. changes had occurred in the banking, payments, and The fee was to be phased in and was scheduled as regulatory environment in the past few years and, as an annual rate of 24 basis points in 1994, 48 basis a result, decided to conduct a broad review of its points in 1995, and 60 basis points in 1996.18 The daylight credit policies. (For a brief description of Board's goal was to induce behavior that would the issues covered in the policy review, see the box reduce risk and increase efficiency in the payment "Components of the Federal Reserve's Policy Statesystem. ment on Payments System Risk.") During its review, During the comment period in 1991, some deposi- the Board evaluated the effectiveness of the current tory institutions and securities dealers stated that they daylight credit policies and determined that these opposed a fee on securities-related overdrafts that policies are generally effective in controlling risk were collateralized. They argued that collateral pro- to the Federal Reserve and in creating incentives for tected the Federal Reserve against losses and that depository institutions to manage their intraday credit there are costs associated with pledging collateral. exposures. In addition, the Board determined that Thus, the combination of pricing and requiring collat- the industry understands the current policy and that eral for securities-related overdrafts would be unduly private-sector participants generally have benefited burdensome. In the 1992 policy, the Board stated, from the policy's risk controls. The Board also recoghowever, that allowing collateral to substitute for nized, however, that the policy has imposed costs on daylight overdraft fees would not provide a mean- the industry and is considered burdensome by some ingful incentive for depository institutions or their depository institutions. securities-dealer customers to change their settlement In conducting its review, the Board evaluated the practices and reduce daylight overdrafts. The Board impact of past policy actions on depository instialso stated that collateral is required for institutions tutions' behavior and on the markets generally. The with large government securities overdrafts as an Board also considered the effects of payment system exception that permits them to exceed their net initiatives on payment activity and the demand for debit caps because of the difficulty of controlling daylight credit. Although the Board believed that the securities-related overdrafts. current policy was generally effective, it identified In March 1995, the Board decided to raise the growing liquidity pressures among certain payment daylight overdraft fee to 36 basis points instead of system participants. Specifically, the Board learned 48 basis points.19 Because aggregate daylight over- that a small number of financially healthy institutions drafts had fallen about 40 percent after the introduc- regularly found their net debit caps to be constraintion of fees, the Board was concerned that raising the ing, a condition that caused them to delay sending fee to 48 basis points might produce undesirable payments and, in some cases, to turn away busimarket effects contrary to the objectives of its risk- ness.20 Furthermore, recent payment system initiacontrol program. The Board, nonetheless, believed tives, such as CHIPS with intraday finality (new CHIPS), the Continuous Linked Settlement (CLS) bank, and settlement-day finality for Federal Reserveprocessed ACH credit transactions, may exacerbate 18. In this article, the rate used to describe the calculation of daylight overdraft fees is expressed on a twenty-four-hour, annualized basis. When daylight overdraft fees are calculated, however, the annual rate is converted to an effective annual rate by multiplying it by the fraction of the day that Fedwire is scheduled to operate. For 20. Current net debit cap levels provide sufficient liquidity for example, the current effective annual rate is 27 basis points—36 basis the majority of depository institutions: Approximately 97 percent points multiplied by 18/24 because Fedwire is scheduled to operate of depository institutions with positive net debit caps use less than eighteen hours per day. 50 percent of their daylight overdraft capacity for their average daily 19. 60 Fed. Reg. 12559 (March 7, 1995). peak overdrafts. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 73 filing and de minimis net debit caps would have to Components of the Federal Reserve's Policy obtain a self-assessed net debit cap to access addi- Statement on Payments System Risk tional daylight overdraft capacity through pledging collateral. The Policy Statement on Payments System Risk com- At the same time, the Board also requested comprises three sections. The first section addresses the risks ment on a package of nearer-term proposals pertainto the Federal Reserve Banks in extending daylight credit ing to its daylight credit policies.23 One proposal was to depository institutions. The second section establishes to increase the percentage of capital used in calpolicies and procedures for private-sector payment culating net debit caps for most U.S. branches and systems and was updated in 1998 to integrate several agencies of foreign banks to recognize the current of the Board's policies on payment system risk into a more comprehensive and consistent framework.1 The supervisory environment and the need for intraday 1998 revisions were intended to provide a flexible, risk- liquidity. Another proposal was to modify the postbased approach to risk management in multilateral set- ing time of electronic check presentments (ECP) to tlement arrangements and not to mandate uniform, rigid depository institutions' Federal Reserve accounts for requirements for all systems. The last section of the purposes of measuring daylight overdrafts to remove policy describes the Board's support of market inno- an impediment to the greater use of ECP. The Board vations, such as rollovers or continuing contracts, that also proposed retaining the current $50 million govreduce daylight overdrafts in Federal Reserve accounts. ernment securities transfer limit to support process- The Board's recent review of its PSR policy focused ing efficiencies in the government securities market. solely on the first section of the policy and included the The Board also sought industry feedback on the following topics: benefits and drawbacks of several possible longer- • Daylight overdraft measurement (posting rules) term changes to the PSR policy.24 These changes • Pricing included lowering self-assessed, single-day net debit • U.S.-chartered institutions' capital caps, eliminating the two-week average caps, imple- • U.S. branches and agencies of foreign banks' capital menting differential pricing for collateralized and • Net debit caps uncollateralized daylight overdrafts, and rejecting • Book-entry government securities transactions (collatpayments with settlement-day finality that would eralization and transfer-size limit) cause an institution to exceed its total collateralized • Fedwire third-party access • Interaffiliate transfers2 and uncollateralized daylight overdraft capacity. • Real-time monitoring After considering commenters' responses to the • Ex post monitoring nearer-term proposals, the Board modified the PSR policy in December 2001 to reflect an increase in the 1. 63 Fed. Reg. 34888 (June 26, 1998). percentage of capital used in calculating net debit 2. As a result of its review, the Board rescinded the third-party access policy (66 Fed. Reg. 19165 [April 13, 2001]) and the interaffiliate transfer caps for most U.S. branches and agencies of foreign policy (66 Fed. Reg. 30198 [June 5, 2001]). banks (from 10 percent to as much as 35 percent), a modified posting time of 1:00 p.m. local time for electronic check presentments, and adoption of the these institutions' liquidity needs at specific times interim policy statement.25 In addition, in response to during the day.21 its analysis and the industry's comments, the Board As a result of the review, the Board requested decided to retain the $50 million limit on individual comment on an interim policy statement that allowed, government securities transfers. subject to Reserve Bank approval, certain depository The Board's adoption of a policy that allows some institutions with self-assessed net debit caps to pledge depository institutions to pledge collateral to access collateral to access additional daylight overdraft additional daylight overdraft capacity is a significapacity.22 Depository institutions with exempt-from- cant change from past policy actions. The Board's analysis of daylight overdraft levels, liquidity pat- 21. New CHIPS was implemented on January 22, 2001; CLS is 23. 66 Fed. Reg. 30205, 30195, and 30193 (June 5, 2001). scheduled to begin live operations in mid-2002; and Federal Reserve- Available on line at http://www.federalreserve.gov/boarddocs/press/ processed ACH credit transactions began receiving settlement-day boardacts/2001/20010530/default.htm. finality on June 25, 2001. Settlement-day finality for ACH credit 24. 66 Fed. Reg. 30208 (June 5, 2001). Available on line transactions may exacerbate liquidity pressures for credit originators at http: // www.federalreserve.gov / boarddocs / press / boardacts / 2001 / that must prefund the settlement amount for these transactions. 20010530/default.htm. 22. 66 Fed. Reg. 30199 (June 5, 2001). Available on line at 25. 66 Fed. Reg. 64419 (December 13, 2001). Available on line http://www.federalreserve.gov / boarddocs / press / boardacts / 2001 / at http: // www.federalreserve.gov / boarddocs / press / boardacts / 2001 / 20010530/default.htm. 20011211/default.htm. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

74 Federal Reserve Bulletin • February 2002 terns, and payment system developments revealed 3. Value and volume of payments processed by the that, although net debit caps provide sufficient liquid- Federal Reserve, by type of payment, 2000 ity for most institutions, some depository institutions Value Volume Payment type experience liquidity pressures. The Board believes (trillions of dollars) (millions of payments) that requiring collateral for additional daylight over- 333777999...888 111000888...333 draft capacity will allow the Federal Reserve to Government securities 111888000...111 111333...666 Automated clearinghouse .. 111444...000 444,,,666333888...000 protect the public sector from additional risk while Check 111333...888 111777,,,000000000...000 providing extra liquidity to the few institutions that might otherwise be unduly constrained. Furthermore, providing extra liquidity to constrained institutions 2000), many use Federal Reserve daylight credit to should help prevent liquidity-related market disrupcover their intraday debits. tions. The Board stated that the option to pledge collateral for additional daylight overdraft capacity Although the Federal Reserve processes 175 times would provide the private sector with the flexibility more checks and ACH transactions by volume than that it requested to relieve liquidity pressures that Fedwire funds and securities transfers, Fedwire transhave arisen or may arise from new CHIPS, CLS, fers represent almost 95 percent of the value of ACH finality, or other risk-reducing payment system transactions posted to institutions' Federal Reserve initiatives. accounts (table 3). Similarly, Fedwire funds and securities transfers are the major source of institutions' daylight overdrafts. Fedwire funds transfers in 2000 generated about 70 percent of the value of average TRENDS IN DAYLIGHT OVERDRAFT AND daylight overdrafts, and government securities trans- PAYMENT ACTIVITY fers represented just under 20 percent. "Other" activity (check, ACH, cash, net settlement, and so on) During the recent review, Federal Reserve staff memrepresented about 10 percent. bers assessed several measures of depository insti- The timing and value of payments processed by tutions' use of Federal Reserve intraday credit and the Federal Reserve and posted to depository institupayment activity to identify possible changes to the tions' accounts help to explain the timing and value policy that could improve its effectiveness. Speof daylight overdrafts (charts 1 and 2). The average cifically, they examined Federal Reserve payment value of government securities transfer activity peaks activity and related daylight overdrafts, historical when the book-entry securities system opens at and current daylight overdraft levels, the effects of 8:30 a.m. Eastern Time (ET); the average value of pricing overdrafts, and the distribution of daylight overdrafts.26 funds activity peaks around 4:30 p.m., most likely from settlement at the Depository Trust Company (DTC), and again around 5:15 p.m., presumably from institutions funding their end-of-day positions in Federal Reserve Payment Activity CHIPS. The Federal Reserve provides settlement serand Related Daylight Overdrafts vices to both of these entities. According to the PSR posting rules, the debit side The Federal Reserve Banks processed more than of a transaction should post, to the extent possible, at $2.4 trillion in payments per day in 2000, including the same time as the credit side—with the exception funds and securities transfers, net settlement transof check transactions.27 Because of the nature of actions, checks, ACH transactions, and cash deposits paper check processing, matching debits and credits and withdrawals. If an institution had insufficient on a transaction-by-transaction basis throughout the balances in its Federal Reserve account to cover any debits, the institution would have incurred daylight overdrafts unless the payment was rejected and not posted to its account. Because depository institutions 27. In developing the PSR posting rules, four general principles on average hold relatively small amounts overnight were established. First, the posting rules were designed so as not to in their Federal Reserve accounts (only $13 billion in generate intraday float. Second, they were to permit depository institutions to anticipate precisely when transactions would be posted to their account. Third, they were to be consistent with the legal rights and responsibilities of depository institutions. Under this principle, 26. Quarterly data presented in this article extend through the check debits would not be posted to an institution's account before second quarter of 2001. Although third-quarter data for 2001 were presentment of the checks. Finally, they were designed so as not to available, these data were not included because of anomalies resulting create a competitive advantage for the Federal Reserve Banks or for from the events of September 11. private-sector service providers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 75 1. Average value of Fedwire funds and book-entry securities activity, by time of day, August 2001 Billions of dollars Billions of dollars 70 — Book-entry securities Funds 60 — 50 — 40 — 30 — 18:00 18:30 NOTE. Monthly averages of daily data at one-minute intervals during scheduled Fedwire hours of operation. day is not practicable. As a result, debits for checks posting time, which enables an institution to have full presented to depository institutions are posted on the use of its check deposit credits, is 11:45 a.m. ET. next clock hour at least one hour after presentment, At 11:00 a.m. ET the Federal Reserve Banks beginning at 11:00 a.m. ET. Credits for check depos- debit institutions' accounts for almost $50 billion, on its are posted either (1) at a single, float-weighted average, for other payment activity, of which about posting time or (2) at multiple times throughout $20 billion represents checks. At the same time, they the day, beginning at 11:00 a.m. ET, using a set of credit institutions' accounts for just over $30 billion, fractions that are based upon Reserve Bank check of which only about $5 billion represents checks collection experience.28 The earliest float-weighted (chart 2). During most of the day, the check posting rules result in a minimal amount of intraday check float; however, they appear to be causing as much as 28. Institutions must choose one of two check credit posting $15 billion in intraday float between 11:00 a.m. and options, (1) all credits posted at a single, float-weighted posting time 11:45 a.m. ET. This float occurs because the Reserve or (2) fractional credits posted throughout the day. The first option Banks have posted debits to depository institutions' allows an institution to receive all of its check credits at a single time for each type of cash letter. This time may not necessarily fall on a accounts before providing corresponding credits on clock hour. The second option permits an institution to receive a check transactions to other institutions. These check portion of its available check credits on the clock hours between debits create a spike in daylight overdrafts that 11:00 a.m. and 6:00 p.m. ET. The option selected applies to all of an institution's check deposits. Reserve Banks calculate crediting frac- lasts approximately forty-five minutes, until the eartions and float-weighted posting times for each time zone based on liest float-weighted posting time of 11:45 a.m. ET surveys of the times at which they present checks to depository (chart 7). institutions for collection. 2. Value of all other payment activity, by time of day, August 2001 Billions of dollars • Debits 45 • Credits 40 — 35 — 30 — 25 — 20 — 15 — 10 — 5 LA riillf-iidli Ji _J 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 Eastern Time NOTE. Monthly averages of daily data at thirty-minute intervals. Debit and credit posting times are based on the PSR posting rules. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Federal Reserve Bulletin • February 2002 3. Peak daylight overdrafts, 1986:Q1-2001:Q2 Billions of dollars i i i I i i i 1 i! i i I i: i i I i i i I i i i I i i i I i i i I i i 2000 2001 NOTE. Quarterly averages of daily data. For definition of "peak" daylight 3. Securities-related overdrafts included in net debit caps. overdrafts, see box "Measuring Daylight Overdrafts: Peak and Average." 4. Fees introduced at an annual rate of 24 basis points. 1. First reduction in net debit caps. 5. Fees raised to an annnual rate of 36 basis points. 2. Second reduction in net debit caps. Effects of Fees Within one year of the implementation on April 14, on Daylight Overdraft Levels 1994, of daylight overdraft fees, total average daylight overdrafts had dropped 40 percent, mostly Between the implementation of net debit caps in because of decreases in securities-related overdrafts March 1986 and daylight overdraft pricing in April (chart 4).29 Funds-related overdrafts declined slightly 1994, peak and average daylight overdrafts in Fed- after the implementation of fees; however, they began eral Reserve accounts increased almost continuously to rise again even before the 1995 fee increase. (see charts 3 and 4 and the box "Measuring Daylight Within one year of the increase, average funds Overdrafts: Peak and Average"). Between 1986 and related overdrafts were up more than 15 percent 1988, peak and average daylight overdrafts grew just and continued to grow thereafter, while securitiesslightly. Between 1989 and 1993, however, daylight related overdrafts continued to trend down. The overdrafts increased dramatically, despite the 1988 reduction in net debit caps. Also, during the same period, securities-related overdrafts more than doubled, accounting for most of the growth in total 29. One year after the implementation of daylight overdraft fees, securities-related overdrafts had dropped more than 50 percent while daylight overdrafts. funds-related overdrafts had declined about 15 percent. 4. Average daylight overdrafts, 1986:Q1-2001 :Q2 NOTE. Quarterly averages of daily data. For definition of "average" daylight 3. Securities-related overdrafts included in net debit caps, overdrafts, see box "Measuring Daylight Overdrafts: Peak and Average." 4. Fees introduced at an annual rate of 24 basis points. 1. First reduction in net debit caps. 5. Fees raised to an annual rate of 36 basis points. 2. Second reduction in net debit caps. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 77 5. Annual transaction values for CHIPS and for Fedwire Measuring Daylight Overdrafts: funds and book-entry securities, 1987-2000 Peak and Average Trillions of dollars To determine an individual depository institution's compliance with certain Federal Reserve Board policies and to assess the aggregate amount of daylight credit it extends to the banking system, the Federal Reserve measures each depository institution's account balance at the end of each minute during the business day. An institution's average daily daylight overdraft is calculated by dividing the sum of its negative Federal Reserve account balances at the end of each minute of the scheduled Fedwire operating day (with positive balances set to zero) by the total number of minutes in the scheduled 1987 1989 1991 1993 1995 1997 1999 Fedwire operating day. NOTE. The decrease in CHIPS activity between 1997 and 1998 is likely a result of the decrease in Asian market activity, while the decline between 1998 and 1999 may be due to the introduction of the euro in January 1999. Individual Measures An institution's peak daylight overdraft for a given day is basis, the aggregate value of funds-related overdrafts its largest negative end-of-minute balance. Similarly, an has grown approximately 18 percent per year, a rate institution's average daylight overdraft for a given day is slightly higher than that of the aggregate value of calculated by summing any negative end-of-minute bal- Fedwire funds activity, which has been about 15 perances incurred during the standard operating day of the cent per year. The aggregate value of securities- Fedwire funds transfer system and dividing this amount by the number of minutes in the standard Fedwire operat- related overdrafts has decreased almost 10 percent ing day. per year, in contrast to the 5 percent yearly increase in the aggregate value of book-entry activity. The introduction of daylight overdraft fees likely Aggregate Measures affected securities-related overdrafts more signifi- The aggregate average daylight overdraft for a given day cantly than funds-related overdrafts for several is simply the sum of all depository institutions' average reasons. First, only a small number of depository daylight overdrafts on that day. The aggregate peak day- institutions (referred to as "clearing banks") clear light overdraft is determined by adding the account bal- government securities, so daylight overdraft fees ances of all depository institutions in a negative position resulting from government securities transfers were for each minute during the day and then selecting the highly concentrated among a few institutions. Seclargest negative end-of-minute balance. The composite ond, most clearing banks decided to pass on their peak daylight overdraft is determined by adding all instidaylight overdraft charges to their securities-dealer tutions' individual peak daylight overdrafts, regardless of whether those peaks occur at the same time. The Board customers. In doing so, they provided their cusdoes not generally use the composite peak measure in its analyses. 6. Average daylight overdrafts as a percentage of Fedwire transfers, 1994:Q2-2001 :Q2 Percent growth in funds-related overdrafts appears to be directly related to the growth in large-value funds transfers (chart 5). — 2.5 Book-entry securities Even though funds-related overdrafts have grown substantially since 1995, the ratio of the average — 2.0 value of funds-related overdrafts to Fedwire funds transfers has remained relatively constant at approximately 1.5 percent (chart 6). In contrast, the average value of securities-related overdrafts as a percentage of securities transfers has continued to decrease since the implementation of fees, from 2.5 percent to less than 1.0 percent. Furthermore, on an annual average NOTE. Quarterly averages of daily data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • February 2002 7. Total daylight overdrafts, by time of day, selected years, 1994-2001 Billions of dollars Eastern Time NOTE. Data are from a monthly sample of daily averages at one-minute intervals during scheduled Fedwire hours of operation. tomers with an economic incentive to modify their draft data by time of day show the considerable shift behavior. Finally, the Board's $50 million limit on in the timing and the decrease in the aggregate value the size of individual government securities trans- of securities-related overdrafts. Before daylight overactions prompted the industry to change its delivery draft fees, the peak daylight overdraft for the banking guidelines, which, before the limit, required dealers industry was approximately $125 billion. This peak to deliver trade obligations in full. By building the occurred between 11:00 a.m. and 12:00 p.m. ET necessary securities inventory to deliver trade obliga- (chart 7) and was mainly a result of securities-related tions in full, securities dealers incurred large daylight overdrafts (chart 8). Today, however, funds daylight overdrafts with their clearing banks. overdrafts represent the majority of the total, and Because government securities dealers tended to the peak of approximately $90 billion now occurs rely heavily on intraday credit to conduct their trans- around 4:30 p.m. ET (chart 9). The timing and size actions, the daylight overdraft fee provided a strong of the peak in funds daylight overdrafts may be due, incentive for dealers to send securities earlier in the in part, to the large growth in settlement volumes day. In addition, the limit required dealers' counter- at DTC, as settlement usually occurs around parties to accept (and pay for) partial deliveries of 4:30 p.m. ET on the books of the Federal Reserve very large orders in $50 million increments. In par- Bank of New York. ticular, after the Federal Reserve implemented day- Since the Board raised the daylight overdraft fee light overdraft fees, securities dealers modified their in 1995, total average daylight overdrafts have grown market practices by arranging financing and deliver- more than 35 percent. This change results from a ing securities used as collateral for repurchase agree- decrease in book-entry-related overdrafts of almost ments (repos) as early in the morning as possible.30 50 percent and an increase in funds-related overdrafts Because a significant portion of securities transfers is of 110 percent. More than one-third of the growth related to daily repo activity, securities-related over- in total average daylight overdrafts has occurred since drafts decreased substantially. In sum, fees provided early 2000. a strong incentive for securities dealers to adopt Growth in financial market activity may account practices that reduced the use of intraday credit and for the recent increase in overdrafts. The expansion thus reduced exposures and risks to the Federal of the global economy, the tremendous growth in Reserve; without fees they had little incentive to transaction levels in both domestic and cross-border change repo settlement practices. markets, and the emergence of electronic trading Fees also had a notable effect on the intraday vehicles in recent years greatly increased securitiespattern and composition of overdrafts. Daylight over- related payments.31 Because the Depository Trust & Clearing Corporation (DTCC) clears and settles almost all trades 30. For more information, see Heidi Willmann Richards, "Daylight Overdraft Fees and the Federal Reserve's Payment System Risk Policy," Federal Reserve Bulletin, vol. 81 (December 1995), 31. Securities Industry Association, "Institutional Transaction pp. 1065-77. Processing Committee White Paper" (December 1, 1999). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 79 8. Book-entry daylight overdrafts, by time of day, selected years, 1994-2001 Billions of dollars 90 80 70 60 50 40 30 20 10 8:30 9:00 9:30 10:00 10:30 11:00 11:30 16:30 17:00 17:30 18:00 18:30 NOTE. Data are from a monthly sample of daily averages at one-minute intervals during scheduled Fedwire hours of operation. of equities, corporate bonds, and municipal debt, actions processed by DTCC's subsidiaries grew to changes in trading activity can have a significant $421 billion in 2000, up from $280 billion in 1999 effect on the value of settlement payments made over (table 4). This increase in transactions may help to Fedwire by DTCC's members.32 For example, explain the tremendous growth in Fedwire funds DTCC's clearing corporations processed 11.1 million transfers and funds-related daylight overdrafts in transactions per day on average in 2000, a 76 percent 2000. increase over 1999 levels (table 4), while between 1999 and 2000, the daily average volume of trades 4. Value and volume of transactions processed by DTCC: on Nasdaq and on the New York Stock Exchange average, peak, and percent change, 1999-2000 grew approximately 62 percent and 28 percent Change respectively.33 The average daily value of trans- Item 1999 2000 (percent) DTCC transaction processing Value (billions of dollars) 32. The Depository Trust & Clearing Corporation oversees two Average1 280 421 50.4 principal subsidiaries, the Depository Trust Company and the National Peak2 498 722 45.0 Securities Clearing Corporation, which provide the primary infrastruc- Volume (millions of transactions) ture for the clearance and settlement of the vast majority of equity, Average1 6.3 11.1 76.2 corporate debt, and municipal bond transactions in the United States. Peak3 9.3 18.1 94.6 33. See the Depository Trust & Clearing Corporation, Annual 1. Annual average of daily figures. Report, 2000 (www.dtcc.com/2000annual/ns/clearance.htm) and The 2. Maximum daily value reached during the year. Nasdaq Stock Market, Inc. (http://www.marketdata.nasdaq.com/asp/ 3. Maximum daily volume reached during the year. Sec 1 Summary.asp). SOURCE. Depository Trust & Clearing Corporation, Annual Report, 2000. 9. Funds daylight overdrafts, by time of day, selected years, 1994-2001 Billions of dollars 1994 Before fees 1995 Before fee increase 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 Eastern Time NOTE. Data are from a monthly sample of daily averages at one-minute intervals during scheduled Fedwire hours of operation. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • February 2002 5. Number and percentage of Federal Reserve account vast majority of daylight overdrafts, approximately holders incurring overdrafts, 1994-2000 98 percent, have constituted less than 50 percent of the overdrafting institution's risk-based capital or Account holders incurring overdrafts YYeeaarr NNuummbbeerr ooff equivalent since 1994. In the mid-1980s when the aaccccoouunntt hhoollddeerrss Number Percent of total PSR policy was first adopted, about two-thirds of 1994 11,289 8,059 71 total daylight overdrafts were attributable to about 1995 10,755 7,768 72 twenty depository institutions that were continually 1996 10,023 7,522 75 1997 9,808 7,241 74 incurring overdrafts, which were often equal to two 1998 9,569 7,033 73 1999 9,299 6,902 74 or three times their capital. Today, however, less than 2000 9,025 6,747 75 1 percent of total daylight overdrafts are attributable to institutions that incur overdrafts exceeding their capital measures. Funds daylight overdrafts may now Distribution of Depository Institutions be at a level that cannot be reduced further without with Daylight Overdrafts imposing more costs on depository institutions. Although thousands of institutions use daylight The Board expected that its PSR policy would reduce credit throughout the year to support their payment aggregate daylight overdrafts and the number of activity (table 5), very few pay daylight overdraft depository institutions relying on intraday credit. fees. Since the Federal Reserve began pricing day- Available information seems to suggest that deposilight overdrafts in 1994, on average only about tory institutions have not met either of these expecta- 350 depository institutions have paid fees in a given tions relative to funds daylight overdrafts during the year. Most of these institutions pay less than past several years (table 5 and charts 3 and 4). As $1,000 per year, and the distribution of those that mentioned previously, funds-related overdrafts have pay more has not changed substantially since 1994 continued to grow since 1995. In addition, since 1994 (chart 10). Aggregate fees paid by depository instituthe percentage of Federal Reserve account holders tions dropped 20 percent between 1998 and 1999, that use daylight credit has not decreased signifilikely as a result of a few large institutions' efforts to cantly and, in fact, increased slightly after pricing was implemented in 1994 and again when the fee was raised in 1995 (table 5). Possibly the most compelling indication that 6. Daylight overdraft fees paid by depository institutions, 1994-2000 depository institutions have attempted to control their use of Federal Reserve daylight credit is the rela- Amount Year tively constant relationship between the average (millions of dollars) value of funds daylight overdrafts and the value 1994 13 0 of Fedwire funds transfers since 1994, as described 1995 24:? 1996 28.2 previously and shown in chart 6. Another compelling 1997 28.8 1998 32.8 indication of lower daylight overdraft risk is the 1999 26.2 2000 25.2 ratio of daylight overdrafts to risk-based capital. The 10. Distribution of depository institutions that pay daylight overdraft fees, by annual fee amount, 1994-2000 Number of institutions Less than $1,000 $1,001 to $10,000 $10,001 to $50,000 $50,001 to $100,000 More than $100,000 Annual fees Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 81 reduce their average daylight overdrafts and related attack, the Federal Reserve used primarily short-term fees and depository institutions' consolidation of open market operations and the discount window.37 multiple charters and their corresponding Federal In fact, Federal Reserve open market operations, Reserve accounts under interstate branch banking discount window lending, overnight overdrafts, and (table 6).34 float increased dramatically in the days immediately after September 11 as depository institutions sought liquidity. POSSIBLE FUTURE POLICY DIRECTION Although the Federal Reserve provided billions of dollars to depository institutions to alleviate liquidity During the review of the PSR policy, Federal Reserve concerns, connectivity problems and the closure of staff explored several options for changes that key markets made it difficult for some institutions might improve the policy's effectiveness. The policy to exchange payments and lend or borrow funds. As options considered were varied and comprised those a result, payments could not flow effectively through issued for comment in June 2001 and a few others— the banking system, and many depository instiincluding requiring all or a portion of an institution's tutions incurred larger-than-usual daylight overdaylight credit use to be collateralized, a requirement drafts. Between September 11 and September 21, of the payment system policies of many foreign peak and average daylight overdrafts that depository central banks.35 The Board may want to evaluate not institutions incurred were approximately 36 percent only the policy options described in the request for and 32 percent higher, respectively, than levels in comment but also other options in light of the liquid- August 2001 (table 7). Daylight overdrafts peaked at ity issues that resulted from operational difficulties $150 billion on September 14, their highest level ever caused by the events of September 11, 2001. and more than 60 percent higher than usual, despite Federal Reserve opening account balances of slightly more than $120 billion. Effect of September 11 Events on Payment As further evidence of institutions' connectivity Activity and Federal Reserve Credit Extensions and associated liquidity difficulties, the aggregate number of transfers processed over the Fedwire funds For several days after the terrorist attacks on the and securities transfer systems declined on Septem- World Trade Center, problems with telecommunicaber 11 and remained low for the rest of the week. In tions and connections among financial market particiaddition, the aggregate value of payments transferred pants and payment systems (connectivity) hindered over Fedwire on September 11 was $1.8 trillion, some institutions' ability to initiate or to act upon almost $1 trillion less than the average for August payment instructions, creating marketwide liquidity 2001 (table 8). Although the aggregate value of paydislocations. In particular, some institutions were ments over the Fedwire funds transfer system quickly unable to meet their daily payment obligations, returned to August 2001 levels and actually reached including covering their daylight overdraft positions, higher-than-average values for several days, the value through their normal channels.36 To inject funds of activity on the securities transfer system remained into the financial system in the days following the low into the week of September 17. Because of connectivity problems, depository institutions were unable to gain access to some of their 34. In January 1998, the Federal Reserve implemented a new usual sources of funding, causing delays in payaccount structure to support the account management and information needs of depository institutions in an interstate branching environ- ments and settlements. As a result, funds built up at ment. Under the new account structure, the Federal Reserve provides a few depository institutions that could not send separately chartered institutions with one master account and the option of establishing subaccounts that can be used to segregate transaction information according to certain criteria, such as type of 37. To further facilitate the functioning of financial markets and transaction. provide liquidity in dollars to foreign institutions, the Federal Reserve 35. The policy options identified in the Board's request for com- entered into swap arrangements with the European Central Bank ment on a possible longer-term policy direction (lowering self- (ECB), the Bank of Canada, and the Bank of England. The Federal assessed, single-day net debit caps, eliminating the two-week average Reserve and the ECB swap arrangement allowed the ECB to draw up caps, implementing differential pricing for collateralized and uncollat- to $50 billion in exchange for an equivalent amount of euro deposits. eralized daylight overdrafts, and rejecting payments with settlement- The Federal Reserve and the Bank of Canada agreed to a temporary day finality that would cause an institution to exceed its total collater- augmentation of their existing swap facility to facilitate the functionalized and uncollateralized daylight overdraft capacity) will require ing of financial markets and provide liquidity in U.S. dollars. Under additional analysis before final action can be taken. the terms of the augmented facility, the Bank of Canada was able to 36. The Federal Reserve waived daylight overdraft fees for the draw up to $10 billion in exchange for Canadian dollars. The terms period of Tuesday, September 11, through Friday, September 21, for of the facility with the Bank of England allowed it to draw up to all account holders. $30 billion in exchange for sterling. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 2002 7. Depository institutions' peak and average daylight overdrafts for September 10-21, 2001, compared with August 2001 Billions of dollars Total Funds Securities DDaattee Peak Average Peak Average Peak Average August 20011 92.9 32.8 85.7 25.3 31.9 7.5 2001—Sept. 10 98.7 37.0 87.0 29.4 27.1 7.6 Sept. 11 113.7 45.0 103.9 32.8 31.2 12.2 Sept. 12 113.9 36.7 90.3 27.7 37.2 9.0 Sept. 13 120.5 41.2 104.4 34.0 24.1 7.2 Sept. 14 150.1 54.6 116.1 45.3 36.9 9.3 Sept. 17 121.7 34.3 115.3 31.9 22.4 2.4 Sept. 18 125.0 38.1 115.5 33.3 16.0 4.8 Sept. 19 130.5 46.2 117.6 37.0 27.5 9.2 Sept. 20 127.6 44.7 116.5 35.0 42.3 9.7 Sept. 21 132.6 49.7 126.9 40.7 42.5 9.0 NOTE. For definition of "peak" and "average" daylight overdrafts, see box 1. Monthly averages of daily data. "Measuring Daylight Overdrafts: Peak and Average." out funds. Consequently, many institutions that did Reserve may want to reassess whether a full- or not receive expected funds had to cover their posi- partial-collateralization policy for intraday credit tions through Federal Reserve open market opera- could better facilitate the Federal Reserve Banks' tions, overnight overdrafts, or discount window actions during a crisis and protect the Banks from loans. Overnight overdrafts increased from an aver- risk. age of $9 million in August 2001 to more than $4 billion on September 12. Discount window loans Evaluation of a Full- or Partialrose from around $200 million to about $45 billion Collateralization Policy on September 12; later, when markets began to function better, Federal Reserve open market operations In assessing the effectiveness of certain options conincreased from $25 billion to nearly $100 billion. sidered during the PSR policy review, Federal The Federal Reserve moved quickly after Septem- Reserve staff evaluated the options against the objecber 11 to ensure financial market liquidity through tive of attaining an efficient balance among the record lending at the discount window and the injec- benefits and the costs and risks associated with the tion of funds through open market operations. Never- provision of Federal Reserve intraday credit. The theless, the Federal Reserve, in conjunction with comprehensive costs and risks to the private sector financial market participants, is evaluating its poli- of managing Federal Reserve account balances were cies and procedures regarding the payment system. also considered. To assess whether a full- or partial- In particular, as part of this evaluation, the Federal collateralization policy would more efficiently balance the costs and benefits associated with daylight credit than other policy options, Federal Reserve staff 8. Daily transaction values and volumes of attempted to quantify those costs and benefits. Spe- Fedwire funds and book-entry securities transfers for September 10-21, 2001, compared with August 2001 cifically, values were obtained for the amount of daylight credit that each depository institution used Funds Securities and the amount of collateral that each institution had Date Value Volume Value Volume pledged to the Federal Reserve. Although the major- (billions of (number of (billions of (number of ity of depository institutions' daylight overdrafts dollars) transactions) dollars) transactions) are not explicitly collateralized, some of the Federal August 20011 1,601 428,750 1,028 53,639 Reserve's intraday credit exposure is effectively 2001—Sept. 10 ... 1,591 436,312 951 44,423 secured by collateral already pledged.38 Sept. 11 ... 1,216 249,472 563 23,221 Sept. 12 ... 1,696 332,433 406 18,679 Sept. 13 ... 1,952 376,937 681 26,046 Sept. 14 ... 2,009 423,256 712 22,864 38. Depository institutions desiring to access the discount window Sept. 17 ... 2,312 462,522 1,024 170,658 must sign an agreement in the Federal Reserve's Operating Circular Sept. 18 ... 1,978 419,126 805 51,058 No. 10, which secures both intraday and overnight overdrafts with Sept. 19 ... 1,836 401,420 688 47,308 collateral pledged to the Federal Reserve. After executing the appro- Sept. 20 ... 1,921 433,771 808 71,534 priate borrowing documents, many institutions will immediately Sept. 21 ... 1,832 442,293 715 42,164 pledge collateral to the Federal Reserve to facilitate future requests for 1. Monthly averages of daily data. discount window loans. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

The Evolution of the Federal Reserve's Intraday Credit Policies 83 Federal Reserve staff then estimated the Federal 11. Distribution of depository institutions with daylight overdrafts and the value of daylight overdrafts incurred, Reserve's credit exposure and collateral coverage by asset size class, 2001 :Q2 by comparing, institution by institution, the dollar amount of credit used by institutions to the value of collateral they held at the Federal Reserve, mainly for • Institutions discount window purposes.39 Of about 8,500 deposi- 97.7 • Value 100 tory institutions that currently hold Federal Reserve accounts, more than 5,300 incurred daylight over- 80 drafts at least once during the third quarter of 2001, 60 and almost 2,000 had collateral pledged to the Federal Reserve. Although less than half of the deposi- 40 tory institutions that incur daylight overdrafts have pledged collateral to the Federal Reserve, these insti- 20 1I.U 1U.O tutions incur the vast majority of total average day- •Tl I - dl I ;?.I I I ^M I .,;?• light overdrafts (more than 90 percent) and have Less Greater sufficient collateral to cover most of their overdrafts. than 10 10 to 24 25 to 49 50 to 99 100 to 199 than 200 Asset size class (billions of dollars) In fact, in covering their respective daylight overdrafts with collateral, these institutions effectively NOTE. Quarterly averages of daily data. have collateralized 94 percent of the aggregate value of total average daylight overdrafts and 70 percent of In considering a policy that would require full the aggregate value of total peak daylight overdrafts. or partial collateralization of daylight credit use, the These institutions however, are able to cover only most relevant issue is likely whether individual insti- 30 percent of their aggregate net debit caps with tutions can effectively cover their net debit caps or collateral, likely because depository institutions peak daylight overdrafts with their balance sheet rarely use more than 50 percent of their single-day assets that are eligible as collateral at the Federal net debit caps for their peak daylight overdrafts. Reserve. Because many depository institutions do not Although more than 5,300 depository institutions have collateral pledged to the Federal Reserve, staff incurred daylight overdrafts in the third quarter of compared each depository institution's net debit cap 2001, the majority of the value was concentrated at a and peak daylight overdraft with its eligible balance small number of very large institutions. The largest sheet assets. The composition of institutional assets users of daylight credit are depository institutions used in the comparison of eligible assets to net debit with assets greater than $200 billion (chart 11). In caps and peak daylight overdrafts was restricted to addition, these large depository institutions generally be consistent with those assets typically included have self-assessed net debit caps, which provide for consideration as discount window loan collateral. substantially more intraday credit than the exempt- In addition, the estimated asset values were reduced from-filing and de minimis net debit cap categories (chart 12). To qualify for a self-assessed net debit 12. Distribution of depository institutions with daylight cap, however, depository institutions must implement overdrafts and the value of daylight overdrafts incurred, risk-management controls that are proportional to the by cap class, 2001 :Q2 nature and magnitude of the risks they present. Likely as part of their risk-management controls, institutions that frequently use large amounts of daylight credit • Institutions tend to have collateral at the Federal Reserve in the • Value 80 72.2 event operational problems or the lack of liquidity in the market late in the day causes their daylight over- 55.7 60 drafts to become overnight overdrafts. These institutions would presumably rather request a discount i—1 40 window loan than pay the overnight overdraft penalty rate (equal to the federal funds rate plus 400 basis 20 points). 7 1.0 | 11 De Above 39. Daylight overdraft levels are daily averages based on data from Zero Exempt minimis Average average High the third quarter of 2001, excluding September 11-21, and collateral Cap class values are based on September 10, 2001, data. As a result, coverage rates are approximations only. NOTE. Quarterly averages of daily data. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

84 Federal Reserve Bulletin • February 2002 (referred to as a "haircut") as described in the "Fed- rating financial condition to pledge collateral to cover eral Reserve Bank Discount and PSR Collateral Mar- potential daylight overdrafts. gins Table." 40 The asset data used most likely over- Federal Reserve staff assessed many of the costs estimate the amount of assets that would be available to depository institutions of a full- or partialto collateralize institutions' peak daylight overdrafts collateralization policy, including the opportunity because no method was readily available to deter- costs to depository institutions that would have to mine which assets, excluding government securities, acquire additional assets or shift assets away from were already pledged elsewhere. other uses to secure their daylight overdrafts; how- In its analysis, the staff found that only a small ever, the events of September 11 may provide new percentage of Federal Reserve account hold- perspectives on some additional benefits of such a ers have insufficient eligible balance sheet assets policy. For example, requiring the full or partial to meet a policy requiring the collateralization collateralization of an institution's daylight overof their net debit cap or peak daylight credit use. drafts could facilitate the Federal Reserve Banks' Some of these institutions, however, are those that lending through the discount window. Because collatincur the largest daylight overdrafts. Under a full- eral and the appropriate lending agreements would collateralization policy, these institutions could find likely be in place, depository institutions and the the level of their access to daylight credit dramati- Reserve Banks should be able to complete discount cally reduced or could incur additional costs to window loans more easily in the event of a severe acquire assets for collateral purposes. market disruption that creates liquidity dislocations. Although Federal Reserve staff concluded that a full- or partial-collateralization policy could significantly reduce and possibly eliminate credit risk to the CONCLUSION Federal Reserve, such a policy could be costly for those institutions that do not already have collateral Although the research and analyses conducted during pledged to the Federal Reserve or do not have suffi- the Board's review of its daylight credit policies cient eligible assets. In addition, the effects on deposi- provided much information, there are many issues tory institutions' other counterparties are unknown. that warrant further study. The events of Septem- Assessing the true effect of any reduction in credit ber 11 have changed the way the financial industry, risk to the Federal Reserve is also difficult because including bankers and regulators, views operational Reserve Banks already require institutions in deterio- contingency plans and could likely shape the future direction of the PSR policy. Because the payment system is dynamic, the Board must continually assess whether the policy is efficiently balancing the costs 40. Available on line at http://www.ny.frb.org/bankinfo/dwindow/ and benefits associated with daylight credit. • dscntmrgn.pdf. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

85 Announcements SWEARING-IN CEREMONY FOR GOVERNORS "Larry Meyer has made a major contribution to BIES AND OLSON the Board's monetary policy," said Chairman Alan Greenspan. "His thoughtful insights into difficult Susan Schmidt Bies and Mark W. Olson were for- issues and his technical expertise have materially mally sworn in as members of the Board of Gover- enhanced the deliberations of the Board and the nors of the Federal Reserve System at a ceremony Federal Open Market Committee. His influence will on January 3, 2002, in the atrium of the Board's carry on beyond his tenure as a Board member." main building in Washington. Friends, family, and Dr. Meyer, 57, was appointed to the Board by Board employees attended the ceremony, which President Clinton. During much of his tenure, he was presided over by Federal Reserve Chairman served as chairman of the Board's Committee on Alan Greenspan. Governor Bies and Governor Olson Supervisory and Regulatory Affairs. In that capacity, assumed their posts on December 7, following confir- he oversaw the Board's regulatory implementation mation by the Senate on December 6. of the Gramm-Leach-Bliley Act and its participation President Bush nominated Governor Bies to a in negotiations toward a new international capital vacant seat last held by Susan M. Phillips, whose accord. He also led the effort to encourage the develterm expired. Governor Bies's term expires January opment of sophisticated risk-management techniques 31, 2012. Governor Olson was nominated to the seat at the nation's large, complex banking organizations. vacated by the resignation of Alice M. Rivlin on Recognized as one of the nation's leading eco- July 16, 1999. The term expires January 31, 2010. nomic forecasters before becoming a member of the Biographies of Governor Bies and Governor Board, Meyer was president of Laurence H. Meyer Olson are available on the Board's website: and Associates, a St. Louis-based economic consultwww.federalreserve.gov/bios/. ing firm specializing in macroeconomic forecasting and policy analysis, and a professor of economics at Washington University. The text of his letter of resig- RESIGNATION OF nation appears below. GOVERNOR LAURENCE H. MEYER January 14, 2002 Laurence H. Meyer submitted his resignation on The Honorable George W. Bush January 14, 2002, as a member of the Board of The President of the United States Governors of the Federal Reserve System, effective The White House Washington, D.C. 20500 the last day of his term, January 31, 2002. Governor Meyer had been a member of the Board Dear Mr. President: since June 20, 1996. "During my term here, we have I respectfully tender my resignation as of January 31, 2002, when my term as a Governor of the Federal Reserve seen remarkable developments, both in the economy Board ends. and in the structure of financial market institutions," It has been a great privilege and honor to serve the he said in a letter to President Bush. country as a member of the Federal Reserve Board of "These developments have required the Federal Governors. I am grateful to President Clinton and the Reserve to adapt its monetary and regulatory policies Senate for the confidence they showed in me and for to help our economic system realize its full poten- providing me with this opportunity. I have had an extraordinarily rewarding experience as a member of the Board of tial," he wrote. "As an independent central bank, the Governors. I have valued the opportunity to work with Federal Reserve is well-structured to accomplish this Chairman Greenspan, my fellow governors, and the presigoal, and I hope I have been able to make a contribu- dents of the Reserve Banks. I have benefited during this tion to this effort." time from the superb support of the Board's outstanding staff. And I have enjoyed the opportunities to work with In view of his impending departure and in keeping members of the Council of Economic Advisers and offiwith Board practice, Dr. Meyer did not attend the cials of the Treasury, under two administrations, as part of January 29-30 meeting of the Federal Open Market the U.S. delegation to many international meetings and Committee. during collaborations on many regulatory issues. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • February 2002 During my term here, we have seen remarkable develop- James F. McKenna, president and chief executive officer, ments, both in the economy and in the structure of financial North Shore Bank, FSB, Brookfield, Wisconsin market institutions. These developments have required the Charles C. Pearson, Jr., co-chairman and chief executive Federal Reserve to adapt its monetary and regulatory poliofficer, Waypoint Bank, Harrisburg, Pennsylvania cies to help our economic system realize its full potential. As an independent central bank, the Federal Reserve is Herbert M. Sandler, chairman and chief executive officer, well structured to accomplish this goal, and I hope I have World Savings Bank, FSB, Oakland, California been able to make a contribution to this effort. Everett Stiles, president and chief executive officer, Macon Bank, Franklin, North Carolina Sincerely, Laurence H. Meyer APPOINTMENTS OF NEW MEMBERS AND THE CHAIR AND VICE CHAIR OF THE CONSUMER APPOINTMENTS OF NEW MEMBERS AND THE ADVISORY COUNCIL PRESIDENT AND VICE PRESIDENT OF THE THRIFT INSTITUTIONS ADVISORY COUNCIL The Federal Reserve Board on January 4, 2002, named eleven new members to its Consumer Advi- The Federal Reserve Board on December 14, 2002, sory Council for three-year terms and designated announced the names of four new members of its a new chair and vice chair of the council for 2002. Thrift Institutions Advisory Council and designated a The council advises the Board on the exercise of its new president and vice president of the council for responsibilities under the Consumer Credit Protec- 2002. tion Act and on other matters in the area of consumer The council is an advisory group made up of financial services. The council meets three times a twelve representatives from thrift institutions. The year in Washington, D.C. panel was established by the Board in 1980 and Dorothy Broadman was designated chair; her term includes savings and loan, savings bank, and credit runs through December 2002. Starting February 11, union representatives. The council meets three times Ms. Broadman will be director of corporate citieach year with the Board of Governors to discuss zenship at Capital One Financial Corporation in developments relating to thrift institutions, the hous- Northern Virginia. Previously, she held positions at ing industry, mortgage finance, and certain regulatory Cal Fed Bank/First Nationwide Bank, Citibank, and issues. Wells Fargo. The new president of the council for 2002 is Ronald Reiter was designated vice chair; his term Mark H. Wright, president and chief executive offion the council ends in December 2003. Mr. Reiter is cer, USAA Federal Savings Bank. The new vice supervising deputy attorney general for the Califorpresident is Karen L. McCormick, president and chief nia Department of Justice. executive officer, First Federal Savings and Loan The eleven new members are the following: Association, Port Angeles, Washington. The four new members, named for two-year terms Janie Barrera beginning January 1, 2002, are the following: San Antonio, Texas Ms. Barrera is president and chief executive officer of ACCION Texas. ACCION, the largest nonprofit micro- John B. Dicus, president, Capitol Federal Savings Bank, Topeka, Kansas lending organization in Texas, provides small loans and management training to micro-enterprises throughout Kevin E. Pietrini, president and chief executive officer, Texas. Ms. Barrera positioned the organization for three Queen City Federal Savings Bank, Virginia, Community Development Financial Institution awards Minnesota totaling more than $3 million. She received the 1997 Presidential Award for Excellence in Microenterprise William J. Small, chairman and chief executive officer, Development. Ms. Barrera has received recognition for her First Federal Bank, Defiance, Ohio accomplishments, including the Small Business Admin- David L. Vigren, president and chief executive officer, ESL istration Financial Services Advocate of the Year and the Federal Credit Union, Rochester, New York Minority Enterprise Development Consortium's Corporate Advocate of the Year. She also serves on JP Morgan Chase Council members whose terms continue through Bank's Advisory Board of Directors in San Antonio, JP Morgan Chase National Community Advisory Board, 2002 are the following: and Washington Mutual Bank's Texas Advisory Board. Ronald S. Eliason, president and chief executive officer, Kenneth P. Bordelon Utah Community Federal Credit Union, Provo, Utah Baton Rouge, Louisiana D. R. Grimes, vice chairman and chief executive officer, Mr. Bordelon has been chief executive officer of the E Fed- NetBank, Alpharetta, Georgia eral Credit Union since 1998. Previously, he was the credit Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 87 union's chief financial officer. He led the implementation law and has been involved in trial work, appeals, and of on-line ATM service, debit cards, on-line banking, elec- litigation on these issues. Ms. Maker has also been tronic bill payment, and two branch offices serving as involved in litigation on the Fair Debt Collection Practices shared outlets in the Credit Union Cooperative Branching Act and the Truth in Lending Act. She is a founding network (CUCB). In addition to his duties at E Federal, member of the Predatory Lending Advisory Task Force in Mr. Bordelon serves on the boards of CUCB and Southern Rochester convened by area banks with members repre- Financial Exchange, the electronic payment systems solu- senting banks, community groups, and city officials. tions network association for the south central United States. Patricia McCoy Cleveland, Ohio Robin Coffey Ms. McCoy is a professor of law at Cleveland-Marshall Chicago, Illinois College of Law, Cleveland State University. She teaches Ms. Coffey is vice president and community development courses on banking and securities regulation, and she is the manager for Harris Trust and Savings Bank, where her author of a major treatise on federal banking regulation responsibilities include setting benchmarks and monitor- that includes an extensive analysis of the Community Reining Community Reinvestment Act (CRA) compliance for vestment Act and fair lending laws. Ms. McCoy is chairtwenty-six banking charters. Previously, she managed the man of the Section on Financial Institutions and Consumer bank's community development lending, including both Financial Services of the Association of American Law affordable housing loans and small business loans in low- Schools and is a member of the Federal Reserve Bank of income neighborhoods. Ms. Coffey works with the Neigh- Cleveland's Strategic Alliance on Predatory Lending. She borhood Housing Services of Chicago. has written and spoken regularly on financial modernization and the Gramm-Leach-Bliley Act, predatory lending, the unbanked, consumer privacy, CRA reform, and fair Thomas P. FitzGibbon, Jr. lending. Chicago, Illinois Mr. FitzGibbon is president of MB Community Development Corporation and senior vice president of MB Finan- Debra S. Reyes cial Bank, N.A. He manages the delivery of community Tampa, Florida development equity and debt investments, economic devel- Ms. Reyes is the president of Neighborhood Lending opment, and housing finance programs. He is also in charge Partners, Inc. (NLP), a mortgage-lending consortium with of residential, consumer and small business lending pro- membership representing forty-three banks and thrifts. Her grams, Internet banking, and insured deposit product deliv- responsibilities include managing the lending program, ery systems. Previously, he was vice president of commu- conducting marketing and outreach, establishing a secondnity reinvestment and regulatory compliance for Comerica ary market for the organization's products, and overseeing Bank-Illinois. Mr. FitzGibbon serves on the board of the loan collection. Ms. Reyes helped to provide more than Woodstock Institute and on the faculty of the Federal $90 million in loan funds to construct or revitalize 4,000 Reserve Bank of San Francisco's National Community units of affordable housing. Before initiating NLP, she Development Lending School. served as Director of Compliance for several banks, including Barnett Bank, N.A. Ms. Reyes serves on Tampa's Partners in Homeownership organization and Fannie Mae's Larry Hawkins, Jr. Southeastern Regional Advisory Council. Houston, Texas Since 1990, Mr. Hawkins has been president and chief executive officer of Unity National Bank in Houston, a Benson Roberts minority-owned bank primarily serving a low-income Washington, District of Columbia population. He is knowledgeable about opportunities Mr. Roberts is vice president of policy for the Local and challenges facing small community banks and often Initiatives Support Corporation, the nation's largest nonspeaks at schools and community organization functions. profit community development support organization. The Mr. Hawkins's banking career began in 1970, and he has organization makes $600 million in investments, loans, and worked in many banking areas, including loan processing, grants annually. Mr. Roberts manages housing, urban and collections, small business, and personal lending. He has rural community development, finance, and economic been active in many community and banking organizations development policy issues. He is involved in Community and now serves as a board member for the Greater Houston Reinvestment Act policy at both the regulatory and legisla- Partnership and the Independent Bankers Association of tive levels. He played a major role in the enactment of the Texas. He also serves as chairman of the Disaster Services federal HOME housing block grant program and the New Committee of the American Red Cross. Markets Tax Credit legislation and is working on President Bush's "Renewing the Dream" tax credit to benefit lowincome homebuyers. Mr. Roberts is a board member of the Ruhi Maker Center for Community Change, the National Association Rochester, New York of Affordable Housing Lenders, and the National Housing Ms. Maker is a senior attorney with the Public Interest Law Conference. Office of Rochester. She provides advocacy on Community Reinvestment Act issues at the local, state, and national level. She has assisted Monroe County and the City of Agnes Bundy Scanlan Rochester on implementation of a Fair Housing Action Boston, Massachusetts Plan and has chaired the City's Real Estate and Lending Ms. Bundy Scanlan is managing director and chief privacy Team. She has expertise in private and subsidized housing officer for FleetBoston Financial. She established the Cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

88 Federal Reserve Bulletin • February 2002 porate Privacy Office and is responsible for development Frank Torres III, legislative counsel, Consumers Union, and implementation of corporate privacy policies. Pre- Washington, District of Columbia viously, Ms. Bundy Scanlan established Fleet Financial Group's Corporate Community Development Department and was responsible for all Community Reinvestment Act lending, investment, and services and for fair lending initia- INCREASE IN THE ASSET-SIZE EXEMPTION tives. She co-chairs the CRA subcommittee for the Con- THRESHOLD UNDER REGULATION C sumer Bankers Association. The Federal Reserve Board on December 19, 2001, Hubert Van Tol announced that the asset-size exemption threshold Sparta, Wisconsin for depository institutions under Regulation C (Home Mr. Van Tol is founder and co-director of Fairness in Rural Lending, which engages in research and advocacy on lend- Mortgage Disclosure) has been increased from ing issues in the rural Midwest. Previously, Mr. Van Tol $31 million to $32 million. founded and operated Bank Watchers, a firm specializing Depository institutions with assets of $32 million in information services and organizational development for or less as of December 31, 2001, are exempt from nonprofit organizations working with low- and moderatedata collection in 2002. However, an institution's income consumers. Mr. Van Tol also served for eleven years as the executive director of the Mid-South Peace exemption from collecting data in 2002 does not and Justice Center, which engages in education, advocacy, affect its responsibility to report the data it was community reinvestment, lending discrimination research, required to collect in 2001. and environmental justice. He serves on the executive The revision to the exemption threshold is based committee of the National Community Reinvestment on the annual percent change in the Consumer Price Coalition. Index for Urban Wage Earners and Clerical Workers for the twelve-month period ending in November Council members whose terms continue through 2001. The adjustment is effective January 1, 2002. 2002 are the following: The Home Mortgage Disclosure Act (HMDA) Teresa Bryce, general counsel, Nexstar Financial Corpora- requires most depository institutions and certain fortion, St. Louis, Missouri profit, nondepository institutions to collect, report, and disclose data about applications for, and origina- Robert M. Cheadle, legislative counsel, The Chickasaw Tribal Legislature, Ada, Oklahoma tions and purchases of, home mortgage loans, homeimprovement loans, and refinancings. Data reported Lester Firstenberger, attorney, Hopkinton, Massachusetts include the type, purpose, and amount of the loan; Jeremy Nowak, chief executive officer, The Reinvestment the race or national origin, sex, and income of the Fund, Philadelphia, Pennsylvania loan applicant; and the location of the property. The purposes of HMDA include helping to determine Council members whose terms continue through whether financial institutions are serving the housing 2003 are the following: needs of their communities and assisting in fair lending enforcement. Anthony Abbate, president and chief executive officer, Interchange Bank, Saddle Brook, New Jersey Manuel Casanova, Jr., executive vice president, Interna- PRELIMINARY FIGURES ON INCOME OF THE tional Bank of Commerce, Brownsville, Texas FEDERAL RESERVE BANKS Constance K. Chamberlin, president and chief executive officer, Housing Opportunities Made Equal, Rich- Preliminary figures indicate that the Federal Reserve mond, Virginia Banks distributed approximately $27.14 billion of Earl Jarolimek, vice president/corporate compliance offitheir $31.87 billion total income to the U.S. Treasury cer, Community First Bankshares, Fargo, North during 2001. Dakota Federal Reserve System income is derived prima- J. Patrick Liddy, director of compliance, Fifth Third rily from interest earned on U.S. government securi- Bancorp, Cincinnati, Ohio ties that the Federal Reserve has acquired through Oscar Marquis, attorney, Hunton and Williams, Park open market operations. This income amounted to Ridge, Illinois $30.54 billion. Additionally, revenues from fees for Elizabeth Renuart, staff attorney, National Consumer Law the provision of priced services to depository institu- Center, Boston, Massachusetts tions totaled $926 million. The remaining income of $402 million includes earnings on foreign currencies, Russell Schrader, senior vice president and assistant general counsel, Visa U.S.A., San Francisco, California earnings from loans, and other income. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Announcements 89 The operating expenses of the twelve Reserve cent of an organization's tier 1 capital. Equity invest- Banks totaled $1.78 billion, including the System's ments through SBICs will be exempt from the new pension cost credit. In addition, the cost of earnings charges to the extent such investments, in the aggrecredits granted to depository institutions amounted to gate, do not exceed 15 percent of the banking organi- $253 million. Assessments against Reserve Banks for zation's tier 1 capital. Board expenditures totaled $295 million, and the cost The new charges would not apply to individual of currency amounted to $339 million. investments made by banking organizations before Net deductions from income amounted to $1.12 bil- March 13, 2000. Grandfathered investments made by lion, resulting primarily from unrealized losses on state banks under section 24(f) of the Federal Deposit assets denominated in foreign currencies revalued to Insurance Act also are exempted from coverage. reflect current market exchange rates. The agencies also reiterated their intent to apply Total net income for the Federal Reserve Banks heightened supervision to banking organizations as amounted to $28.09 billion. Under the Board's pol- their level of concentration in equity investments icy, each Reserve Bank's net income after the statu- increases. tory dividend to member banks and the amount necessary to equate surplus to paid-in capital is trans- MINUTES OF THE BOARD DISCOUNT RATE ferred to the U.S. Treasury. The statutory dividends to MEETING member banks were $428 million. The Federal Reserve Board released on December 28, 2001, the minutes of its discount rate meet- AGENCIES ADOPT FINAL RULES CONCERNING ings from October 15 to November 6, 2001. THE REGULATORY CAPITAL TREATMENT OF NONFINANCIAL EQUITY INVESTMENTS ENFORCEMENT ACTIONS The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of The Federal Reserve Board on December 28, 2001, the Currency on January 8, 2002, announced the announced the execution of a written agreement by adoption of final rules governing the regulatory capi- and among the First State Bank of Warner, Warner, tal treatment of equity investments in nonfinancial South Dakota, the Federal Reserve Bank of Minnecompanies held by banks, bank holding companies, apolis, and the State of South Dakota Division of and financial holding companies. The agencies' final Banking. rules are substantially similar to the revised proposed rules jointly issued for public comment last year. The The Federal Reserve Board on January 14, 2002, final rules will become effective on April 1, 2002. announced the issuance of an order of assessment of The new capital requirements apply symmetrically a civil money penalty against Dexia, S.A., Brussels, to equity investments made by banks and their hold- Belgium; Dexia Bank Belgium, S.A., Brussels, ing companies in nonfinancial companies under the Belgium; and Dexia Credit Local de France, Paris, legal authorities specified in the final rules. Among France. others, these include the merchant banking authority The three related foreign banks, without admitting granted by the Gramm-Leach-Bliley Act and the to any allegations, consented to the issuance of the authority to invest in small business investment com- order for failure to comply with the provisions of panies (SBICs) granted by the Small Business Invest- the Board's Regulation Y and with the condition ment Act. imposed in writing in connection with the Board's Covered equity investments will be subject to a granting of the banks' request to become financial series of marginal tier 1 capital charges, with the size holding companies, requiring them to notify the of the charge increasing as the organization's level Board in a timely way if they fall out of compliance of concentration in equity investments increases. The with standards for being financial holding companies. highest marginal charge specified in the final rules The order requires Dexia, S.A., Dexia Bank Belrequires a 25 percent deduction from tier 1 capital for gium, S.A., and Dexia Credit Local de France to pay covered investments that aggregate more than 25 per- a civil money penalty of $50,000. • Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

91 Legal Developments FINAL RULE—AMENDMENT TO REGULATION A increased to $32 million. Thus, depository institutions with assets of $32 million or less as of December 31, 2001, are The Board of Governors is amending 12 C.F.R. Part 201, exempt from data collection in 2002. its Regulation A (Extensions of Credit by Federal Reserve Effective January 1, 2002, 12 C.F.R. Part 203 is amended Banks; Change in Discount Rate), to reflect its approval of as follows: a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Part 203—Home Mortgage Disclosure (Regula- Boards of Directors of the twelve Federal Reserve Banks. tion C) Effective December 11, 2001, 12 C.F.R. Part 201 is amended as follows: 1. The authority citation for Part 203 continues to read as follows: Part 201—Extensions of Credit by Federal Reserve Banks (Regulation A) Authority: 12 U.S.C. 2801-2810. 1. The authority citation for 12 C.F.R. Part 201 continues to 2. In Supplement I to Part 203, under Section 203.3— read as follows: Exempt Institutions, under 3(a) Exemption based on location, asset size, or number of home-purchase loans, para- Authority: 12 U.S.C. 343 et seq., 347a, 347b, 347c, 347d, graph 2 is revised to read as follows: 348 et seq., 357, 374, 374a and 461. Supplement I to Part 203—Staff Commentary 2. Section 201.51 is revised to read as follows: Section 201.51—Adjustment credit for depository institutions. The rates for adjustment credit provided to depository Section 203.3—Exempt Institutions institutions under section 201.3(a) are: 3(a) Exemption based on location, asset size, or number of home-purchase loans. Federal Reserve Bank Rate Effective Boston 1.25 December 11, 2001 2. Adjustment of exemption threshold for depository institu- New York 1.25 December 11, 2001 Philadelphia 1.25 December 11, 2001 tions. For data collection in 2002, the asset-size exemption Cleveland 1.25 December 13, 2001 threshold is $32 million. Depository institutions with assets Richmond 1.25 December 13, 2001 Atlanta 1.25 December 13, 2001 at or below $32 million are exempt from collecting data for Chicago 1.25 December 11, 2001 2002. St. Louis 1.25 December 12, 2001 Minneapolis 1.25 December 13, 2001 Kansas City 1.25 December 13, 2001 Dallas 1.25 December 13, 2001 San Francisco 1.25 December 11, 2001 FINAL RULE—CORRECTION TO AMENDMENT TO REGULATIONS H AND Y FINAL RULE—AMENDMENT TO REGULATION C The Board of Governors is issuing a correction to the The Board of Governors is amending 12 C.F.R. Part 203, regulatory text of a final rule published in the January 2002 its Regulation C (Home Mortgage Disclosure). The Board volume of the Federal Reserve Bulletin regarding the capiis required to adjust annually the asset-size exemption tal treatment of recourse, direct credit substitutes, and threshold for depository institutions based on the annual residual interests in asset securitizations. The correction percentage change in the Consumer Price Index for Urban rectifies errors made in Attachment II in Appendix A, Part Wage Earners and Clerical Workers. The present adjust- 208, and Appendix A, Part 225. ment reflects changes for the twelve-month period ending The following corrections are effective January 1, 2002: in November 2001. During this period, the index increased 1. In Appendix A to Part 208, Attachment II (88 Federal by 2.91 percent; as a result, the exemption threshold is Reserve Bulletin 39) (2002): Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

92 Federal Reserve Bulletin • February 2002 A. In the column for Components, in the fourth entry Subpart A—General under Supplementary Capital, replace the word "stocks" with the word "stock." 2. Section 226.1 is amended by: B. In the column for Minimum requirements, the a. Revising paragraph (b); and fourth entry is revised to read, "Banks should b. Revising paragraph (d)(5). avoid using minority interests to introduce elements not otherwise qualifying for tier 1 capital. '' C. In the column for Minimum requirements, remove Section 226.1—Authority, purpose, coverage, the eleventh entry beginning with "As a general organization, enforcement and liability. rule . . ." in its entirety. D. Remove footnote 3 following the table. 2. In Appendix A to Part 225, Attachment II (88 Federal Reserve Bulletin 53) (2002): (b) Purpose. The purpose of this regulation is to promote A. In the column for Minimum requirements, the sec- the informed use of consumer credit by requiring disond entry is revised to read "Organizations should closures about its terms and cost. The regulation also avoid using minority interests to introduce ele- gives consumers the right to cancel certain credit transments not otherwise qualifying for tier 1 capital." actions that involve a lien on a consumer's principal B. In the column for Minimum requirements, in the dwelling, regulates certain credit card practices, and eleventh entry of the table, replace the word provides a means for fair and timely resolution of "banks" with "organizations." credit billing disputes. The regulation does not govern charges for consumer credit. The regulation requires a maximum interest rate to be stated in variable-rate FINAL RULE—AMENDMENT TO REGULATION Z contracts secured by the consumer's dwelling. It also imposes limitations on home equity plans that are The Board of Governors is amending 12 C.F.R. Part 226, subject to the requirements of section 226.5b and mortits Regulation Z (Truth in Lending), implementing the gages that are subject to the requirements of section Home Ownership and Equity Protection Act (HOEPA). 226.32. The regulation prohibits certain acts or prac- HOEPA was enacted in 1994, in response to evidence of tices in connection with credit secured by a consumer's abusive lending practices in the home-equity lending marprincipal dwelling. ket. HOEPA imposes additional disclosure requirements and substantive limitations (for example, restricting short- ^ % term balloon notes) on home-equity loans bearing rates or fees above a certain percentage or amount. The Board's (d) Organization. * * * amendments to Regulation Z broaden the scope of mort- (5) Subpart E contains special rules for mortgage gage loans subject to HOEPA by adjusting the price trig- transactions. Section 226.32 requires certain disclogers used to determine coverage under the act. The rate- sures and provides limitations for loans that have based trigger is lowered by two percentage points for rates and fees above specified amounts. Section first-lien mortgage loans, with no change for subordinate- 226.33 requires disclosures, including the total annual loan cost rate, for reverse mortgage transaclien loans. The fee-based trigger is revised to include the tions. Section 226.34 prohibits specific acts and cost of optional credit insurance and similar debt protecpractices in connection with mortgage transactions. tion products paid at closing. The amendments restrict certain acts and practices in connection with home-secured loans. For example, creditors may not engage in repeated refinancings of their HOEPA loans over a short time period when the transactions are not in the borrower's interest. The amendments also strengthen HOEPA s prohibition Subpart E—Special Rules for Certain Home against extending credit without regard to consumers' re- Mortgage Transactions payment ability, and enhance disclosures received by consumers before closing for HOEPA-covered loans. 3. Section 226.32 is amended by: Effective December 20, 2001, 12 C.F.R. Part 226 is a. Republishing paragraph (a)(1) introductory text and amended as follows: revising paragraph (a)(l)(i); b. Republishing paragraph (b) introductory text and Part 226—Truth in Lending (Regulation Z) revising paragraph (b)(1); c. Revising paragraph (c) introductory text, revising 1. The authority citation for Part 226 continues to read as paragraph (c)(3), and adding paragraph (c)(5); follows: d. Revising paragraph (d) introductory text and adding paragraph (d)(8); and Authority: 12 U.S.C. 3806; 15 U.S.C. 1604 and 1637(c)(5). e. Removing paragraph (e). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 93 Section 226.32—Requirements for certain (5) Amount borrowed. For a mortgage refinancing, the closed-end home mortgages. total amount the consumer will borrow, as reflected by the face amount of the note; and where (a) Coverage. (1) Except as provided in paragraph (a)(2) the amount borrowed includes premiums or other of this section, the requirements of this section apply charges for optional credit insurance or debtto a consumer credit transaction that is secured by the cancellation coverage, that fact shall be stated, consumer's principal dwelling, and in which either: grouped together with the disclosure of the amount (i) The annual percentage rate at consummation will borrowed. The disclosure of the amount borrowed exceed by more than 8 percentage points for firstshall be treated as accurate if it is not more than lien loans, or by more than 10 percentage points $100 above or below the amount required to be for subordinate-lien loans, the yield on Treasury disclosed. securities having comparable periods of maturity to the loan maturity as of the fifteenth day of the (d) Limitations. A mortgage transaction subject to this month immediately preceding the month in which section shall not include the following terms: the application for the extension of credit is received by the creditor; or (8) Due-on-demand clause. A demand feature that permits the creditor to terminate the loan in advance of the original maturity date and to demand (b) Definitions. For purposes of this subpart, the following repayment of the entire outstanding balance, exdefinitions apply: cept in the following circumstances: (1) For purposes of paragraph (a)(l)(ii) of this section, points and fees means: (i) There is fraud or material misrepresentation (i) All items required to be disclosed under sec- by the consumer in connection with the loan; tion 226.4(a) and 226.4(b), except interest or (ii) The consumer fails to meet the repayment the time-price differential; terms of the agreement for any outstanding (ii) All compensation paid to mortgage brokers; balance; or (iii) All items listed in section 226.4(c)(7) (other (iii) There is any action or inaction by the conthan amounts held for future payment of sumer that adversely affects the creditor's taxes) unless the charge is reasonable, the security for the loan, or any right of the creditor receives no direct or indirect com- creditor in such security. pensation in connection with the charge, and 4. A new section 226.34 is added to Subpart E to read as the charge is not paid to an affiliate of the follows: creditor; and (iv) Premiums or other charges for credit life, Section 226.34—Prohibited acts or practices in accident, health, or loss-of-income insurance, connection with credit secured by a consumer's or debt-cancellation coverage (whether or not dwelling. the debt-cancellation coverage is insurance under applicable law) that provides for cancellation of all or part of the consumer's (a) Prohibited acts or practices for loans subject to secliability in the event of the loss of life, health, tion 226.32. A creditor extending mortgage credit subor income or in the case of accident, written ject to section 226.32 shall not— in connection with the credit transaction. (1) Home improvement contracts. Pay a contractor under a home improvement contract from the proceeds of a mortgage covered by section 226.32, (c) Disclosures. In addition to other disclosures required other than: by this part, in a mortgage subject to this section, the (i) By an instrument payable to the consumer or creditor shall disclose the following in conspicuous jointly to the consumer and the contractor; or type size: (ii) At the election of the consumer, through a third-party escrow agent in accordance with terms established in a written agreement (3) Regular payment; balloon payment. The amount signed by the consumer, the creditor, and the of the regular monthly (or other periodic) payment contractor prior to the disbursement. and the amount of any balloon payment. The regu- (2) Notice to assignee. Sell or otherwise assign a lar payment disclosed under this paragraph shall mortgage subject to section 226.32 without furbe treated as accurate if it is based on an amount nishing the following statement to the purchaser or borrowed that is deemed accurate and is disclosed assignee: "Notice: This is a mortgage subject to special rules under the federal Truth in Lending under paragraph (c)(5) of this section. Act. Purchasers or assignees of this mortgage could be liable for all claims and defenses with Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

94 Federal Reserve Bulletin • February 2002 respect to the mortgage that the borrower could assert against the creditor." (3) Refinancings within one-year period. Within one You are not required to complete this agreement year of having extended credit subject to section merely because you have received these disclosures 226.32, refinance any loan subject to section or have signed a loan application. 226.32 to the same borrower into another loan subject to section 226.32, unless the refinancing is If you obtain this loan, the lender will have a mortin the borrower's interest. An assignee holding or gage on your home. servicing an extension of mortgage credit subject to section 226.32, shall not, for the remainder of YOU COULD LOSE YOUR HOME, AND ANY the one-year period following the date of origina- MONEY YOU HAVE PUT INTO IT, IF YOU DO tion of the credit, refinance any loan subject to NOT MEET YOUR OBLIGATIONS UNDER THE section 226.32 to the same borrower into another LOAN. loan subject to section 226.32, unless the refinancing is in the borrower's interest. A creditor (or You are borrowing $ (optional credit assignee) is prohibited from engaging in acts or insurance is Q is not • included in this amount). practices to evade this provision, including a pattern or practice of arranging for the refinancing of The annual percentage rate on your loan will be: %. its own loans by affiliated or unaffiliated creditors, or modifying a loan agreement (whether or not the Your regular [frequency] payment will be: existing loan is satisfied and replaced by the new $ I loan) and charging a fee. [At the end of your loan, you will still owe us: (4) Repayment ability. Engage in a pattern or practice $ balloon amount!. 1 of extending credit subject to section 226.32 to a consumer based on the consumer's collateral with- [Your interest rate may increase. Increases in the interout regard to the consumer's repayment ability, est rate could increase your payment. The highest including the consumer's current and expected amount your payment could increase is to $. ] income, current obligations, and employment. There is a presumption that a creditor has violated this paragraph (a)(4) if the creditor engages in a Closed-End Home Mortgages, a new heading Paragraph pattern or practice of making loans subject to 32(b)(l)(iv) is added and a new paragraph 1. is added; section 226.32 without verifying and documenting d. Under Section 226.32—Requirements for Certain consumers' repayment ability. Closed-End Home Mortgages, under Paragraph 32(c)(3), the heading is revised, paragraph 1. is revised and para- (b) Prohibited acts or practices for dwelling-secured loans; graph 2. is removed; and a new heading Paraopen-end credit. In connection with credit secured by the consumer's dwelling that does not meet the definition in graph 32(c)(5) is added and a new paragraph 1. is added. section 226.2(a)(20), a creditor shall not structure a home- e. Under Section 226.32—Requirements for Certain secured loan as an open-end plan to evade the requirements Closed-End Home Mortgages, a new heading Paragraph of section 226.32. 32(d)(8) is added; a new heading Paragraph 32(d)(8)(ii) is added and a new paragraph 1. is added; and a new heading 5. Appendix H to Part 226 is amended by revising Model Paragraph 32(d)(8)(iii) is added and new paragraphs 1. Form H-16 to read as follows: and 2. are added. f. Under Section 226.32—Requirements for Certain Closed-End Home Mortgages, 32(e) Prohibited Acts and Appendix H to Part 226—Closed-End Model Forms Practices is removed; and Clauses g. Under Subpart E, a new Section 226.34—Prohibited Acts or Practices in Connection with Credit Secured by a Consumer's Dwelling; Open-end Credit is added; and H-16—Mortgage Sample h. Under Appendix H—Closed-End Model Forms and 6. In Supplement I to Part 226, the following amendments Clauses, paragraphs 20. through 23. are redesignated as paragraphs 21. through 24., and new paragraph 20. is are made: added. a. Under Section 226.31—General Rules, under Paragraph 31(c)(l)(i), paragraph 2. is added; The additions and revisions read as follows: b. Under Section 226.32—Requirements for Certain Closed-End Home Mortgages, under Paragraph Supplement I to Part 226—Official Staff 32(a)(l)(ii), paragraph 1. introductory text is revised and Interpretations 1 .iv. is added; c. Under Section 226.32—Requirements for Certain Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 95 Subpart E—Special Rules for Certain Home 32(b) Definitions. Mortgage Transactions Section 226.31—General Rules Paragraph 32(b)( 1)(iv). 1. Premium amount. In determining "points and fees" for purposes of this section, premiums paid at or 31(c) Timing of disclosure. before closing for credit insurance are included whether they are paid in cash or financed, and whether the amount represents the entire premium for the cov- Paragraph 31(c)(l)(i) Change in terms. erage or an initial payment. 2. Sale of optional products at consummation. If the con- 32(c) Disclosures. sumer finances the purchase of optional products such as credit insurance and as a result the monthly payment differs from what was previously disclosed under section 226.32, Paragraph 32(c)(3) Regular payment; balloon payment. redisclosure is required and a new three-day waiting period 1. General. The regular payment is the amount due from applies. (See comment 32(c)(3)-1 on when optional items the borrower at regular intervals, such as monthly, may be included in the regular payment disclosure.) bimonthly, quarterly, or annually. There must be at least two payments, and the payments must be in an amount and at such intervals that they fully amortize the amount owed. In disclosing the regular payment, Section 226.32—Requirements for Certain creditors may rely on the rules set forth in section Closed-End Home Mortgages 226.18(g); however, the amounts for voluntary items, such as credit life insurance, may be included in the 32(a) Coverage. regular payment disclosure only if the consumer has previously agreed to the amounts. Paragraph 32(a)( 1)(ii). 1. Total loan amount. For purposes of the "points and fees'' test, the total loan amount is calculated by taking Paragraph 32(c)(5) Amount borrowed. the amount financed, as determined according to sec- 1. Optional insurance; debt-cancellation coverage. This tion 226.18(b), and deducting any cost listed in section disclosure is required when the amount borrowed in a 226.32(b)(l)(iii) and section 226.32(b)(l)(iv) that is refinancing includes premiums or other charges for both included as points and fees under section credit life, accident, health, or loss-of-income insur- 226.32(b)(1) and financed by the creditor. Some exam- ance, or debt-cancellation coverage (whether or not the ples follow, each using a $10,000 amount borrowed, a debt-cancellation coverage is insurance under applica- $300 appraisal fee, and $400 in points. A $500 pre- ble law) that provides for cancellation of all or part of mium for optional credit life insurance is used in one the consumer's liability in the event of the loss of life, example. health, or income or in the case of accident. See comment 4(d)(3)-2 and comment app. G and H-2 regarding terminology for debt-cancellation coverage. iv. If the consumer finances a $300 fee for a creditorconducted appraisal and a $500 single premium 32(d) Limitations. for optional credit life insurance, and pays $400 in points at closing, the amount financed under section 226.18(b) is $10,400 ($10,000, plus the $300 32(d)(8) Due-on-demand clause. appraisal fee that is paid to and financed by the Paragraph 32(d)(8)(ii). creditor, plus the $500 insurance premium that is 1. Failure to meet repayment terms. A creditor may financed by the creditor, less $400 in prepaid terminate a loan and accelerate the balance when the finance charges). The $300 appraisal fee paid to consumer fails to meet the repayment terms provided the creditor is added to other points and fees under for in the agreement; a creditor may do so, however, section 226.32(b)(l)(iii), and the $500 insurance only if the consumer actually fails to make payments. premium is added under 226.32(b)(l)(iv). The For example, a creditor may not terminate and acceler- $300 and $500 costs are deducted from the amount ate if the consumer, in error, sends a payment to the financed ($10,400) to derive a total loan amount of wrong location, such as a branch rather than the main $9,600. office of the creditor. If a consumer files for or is placed in bankruptcy, the creditor may terminate and accelerate under this provision if the consumer fails to Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

96 Federal Reserve Bulletin • February 2002 meet the repayment terms of the agreement. Section 1. Joint payees. If a creditor pays a contractor with an 226.32(d)(8)(h) does not override any state or other instrument jointly payable to the contractor and the law that requires a creditor to notify a borrower of a consumer, the instrument must name as payee each right to cure, or otherwise places a duty on the creditor consumer who is primarily obligated on the note. before it can terminate a loan and accelerate the bal- Paragraph 34(a)(2) Notice to Assignee. ance. 1. Subsequent sellers or assignors. Any person, whether or not the original creditor, that sells or assigns a Paragraph 32(d)(8)(iii). mortgage subject to section 226.32 must furnish the 1. Impairment of security. A creditor may terminate a notice of potential liability to the purchaser or asloan and accelerate the balance if the consumer's ac- signee. tion or inaction adversely affects the creditor's security 2. Format. While the notice of potential liability need not for the loan, or any right of the creditor in that security. be in any particular format, the notice must be promi- Action or inaction by third parties does not, in itself, nent. Placing it on the face of the note, such as with a permit the creditor to terminate and accelerate. stamp, is one means of satisfying the prominence requirement. 2. Examples. 3. Assignee liability. Pursuant to section 131(d) of the i. A creditor may terminate and accelerate, for act, the act's general holder-in-due course protections example, if: do not apply to purchasers and assignees of loans A. The consumer transfers title to the property or covered by section 226.32. For such loans, a purchassells the property without the permission of er's or other assignee's liability for all claims and the creditor. defenses that the consumer could assert against the B. The consumer fails to maintain required increditor is not limited to violations of the act. surance on the dwelling. Paragraph 34(a)(3) Refinancings within one-year period. C. The consumer fails to pay taxes on the property. 1. In the borrower's interest. The determination of D. The consumer permits the filing of a lien whether or not a refinancing covered by section senior to that held by the creditor. 226.34(a)(3) is in the borrower's interest is based on E. The sole consumer obligated on the credit dies. the totality of the circumstances, at the time the credit F. The property is taken through eminent domain. is extended. A written statement by the borrower that G. A prior lienholder forecloses. ' 'this loan is in my interest'' alone does not meet this ii. By contrast, the filing of a judgment against the standard. consumer would permit termination and accelerai. A refinancing would be in the borrower's interest tion only if the amount of the judgment and collatif needed to meet the borrower's "bona fide pereral subject to the judgment is such that the credisonal financial emergency" (see generally section tor's security is adversely affected. If the consumer 226.23(e) and section 226.31 (c)( 1 )(iii)). commits waste or otherwise destructively uses or ii. In connection with a refinancing that provides fails to maintain the property such that the action additional funds to the borrower, in determining adversely affects the security, the loan may be whether a loan is in the borrower's interest considterminated and the balance accelerated. Illegal use eration should be given to whether the loan fees of the property by the consumer would permit and charges are commensurate with the amount of termination and acceleration if it subjects the propnew funds advanced, and whether the real estateerty to seizure. If one of two consumers obligated related charges are bona fide and reasonable in on a loan dies, the creditor may terminate the loan amount (see generally section 226.4(c)(7)). and accelerate the balance if the security is ad- 2. Application of the one-year refinancing prohibition to versely affected. If the consumer moves out of the creditors and assignees. The prohibition in section dwelling that secures the loan and that action 226.34(a)(3) applies where an extension of credit subadversely affects the security, the creditor may ject to section 226.32 is refinanced into another loan terminate a loan and accelerate the balance. subject to section 226.32. The prohibition is illustrated by the following examples. Assume that Creditor A makes a loan subject to section 226.32 on January 15, 2003, secured by a first lien; this loan is assigned to Section 226.34—Prohibited Acts or Practices in Creditor B on February 15, 2003: Connection with Credit Secured by a Consumer \s i. Creditor A is prohibited from refinancing the Jan- Dwelling; Open-end Credit uary 2003 loan (or any other loan subject to section 226.32 to the same borrower) into a loan 34(a) Prohibited acts or practices for loans subject to subject to section 226.32, until January 15, 2004. section 226.32. Creditor B is restricted until January 15, 2004, or such date prior to January 15, 2004 that Creditor B Paragraph 34(a)(1) Home-improvement contracts. ceases to hold or service the loan. During the Paragraph 34(a)(l)(i). prohibition period, Creditors A and B may make a Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 97 subordinate lien loan that does not refinance a loan tax returns, pension statements, and payment records subject to section 226.32. Assume that on April 1, for employment income. 2003, Creditor A makes but does not assign a Paragraph 34(b) Prohibited acts or practices for dwellingsecond-lien loan subject to section 226.32. In that secured loans; open-end credit. case, Creditor A would be prohibited from refi- 1. Amount of credit extended. Where a loan is docunancing either the first-lien or second-lien loans mented as open-end credit but the features and terms (or any other loans to that borrower subject to or other circumstances demonstrate that it does not section 226.32) into another loan subject to section meet the definition of open-end credit, the loan is 226.32 until April 1, 2004. subject to the rules for closed-end credit, including ii. The loan made by Creditor A on January 15, 2003 section 226.32 if the rate or fee trigger is met. In (and assigned to Creditor B) may be refinanced by applying the triggers under section 226.32, the Creditor C at any time. If Creditor C refinances "amount financed," including the "principal loan this loan on March 1, 2003 into a new loan subject amount'' must be determined. In making the determito section 226.32, Creditor A is prohibited from nation, the amount of credit that would have been refinancing the loan made by Creditor C (or any extended if the loan had been documented as a closedother loan subject to section 226.32 to the same end loan is a factual determination to be made in each borrower) into another loan subject to section case. Factors to be considered include the amount of 226.32 until January 15, 2004. Creditor C is simi- money the consumer originally requested, the amount larly prohibited from refinancing any loan subject of the first advance or the highest outstanding balance, to section 226.32 to that borrower into another or the amount of the credit line. The full amount of the until March 1, 2004. (The limitations of section credit line is considered only to the extent that it is 226.34(a)(3) no longer apply to Creditor B after reasonable to expect that the consumer might use the Creditor C refinanced the January 2003 loan and full amount of credit. Creditor B ceased to hold or service the loan.) Paragraph 34(a)(4) Repayment ability. 1. Income. Any expected income can be considered by Appendix H—Closed-End Model Forms and the creditor, except equity income that would be real- Clauses ized from collateral. For example, a creditor may use information about income other than regular salary or wages such as gifts, expected retirement payments, or 20. Sample H-16. This sample illustrates the disclosures income from self-employment, such as housecleaning required under section 226.32(c). The sample illusor childcare. trates the amount borrowed and the disclosures about 2. Pattern or practice of extending credit—repayment optional insurance that are required for mortgage refiability. Whether a creditor is engaging or has engaged nancings under section 226.32(c)(5). Creditors may, at in a pattern or practice of violations of this section their option, include these disclosures for all loans depends on the totality of the circumstances in the subject to section 226.32. The sample also includes particular case. While a pattern or practice is not disclosures required under section 226.32(c)(3) when established by isolated, random, or accidental acts, it the legal obligation includes a balloon payment. can be established without the use of a statistical process. In addition, a creditor might act under a lending policy (whether written or unwritten) and that action alone could establish a pattern or practice of making loans in violation of this section. ORDERS ISSUED UNDER BANK HOLDING COMPANY 3. Discounted introductory rates. In transactions where ACT the creditor sets an initial interest rate to be adjusted later (whether fixed or to be determined by an index or Orders Issued Under Section 3 of the Bank Holding formula), in determining repayment ability the creditor Company Act must consider the consumer's ability to make loan payments based on the non-discounted or fully- BNP Paribas indexed rate at the time of consummation. Paris, France 4. Verifying and documenting income and obligations. Creditors may verify and document a consumer's re- Order Approving the Acquisition of a Bank Holding payment ability in various ways. A creditor may verify Company and document a consumer's income and current obligations through any reliable source that provides the BNP Paribas ("BNPP") has requested the Board's apcreditor with a reasonable basis for believing that there proval under section 3 of the Bank Holding Company Act are sufficient funds to support the loan. Reliable ("BHC Act") (12 U.S.C. § 1842) ("BHC Act") to acsources include, but are not limited to, a credit report, quire 55 percent of the voting shares of BancWest Cor- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

98 Federal Reserve Bulletin • February 2002 poration, Honolulu, Hawaii ("BancWest"), which owns organization. In assessing the financial and managerial Bank of the West, San Francisco, California ("Bank of the strength of BNPP and its subsidiaries, the Board has re- West"), and First Hawaiian Bank, Honolulu, Hawaii viewed information provided by BNPP, confidential super- ("First Hawaiian"). BNPP currently owns 45 percent of visory and examination information, and publicly reported BancWest's voting shares, and would own all BancWest's and other financial information. In addition, the Board has outstanding voting shares on consummation of the pro- consulted with relevant supervisory authorities, including posal. those in France. Based on all the facts of record, the Board Notice of the proposal, affording interested persons an concludes that the financial and managerial resources and opportunity to submit comments, has been published in the future prospects of the organizations involved in the pro- Federal Register (66 Federal Register 37,686 (2001)). The posal are consistent with approval. time for filing comments has expired, and the Board has Section 3 of the BHC Act also provides that the Board considered the proposal and all comments received in light may not approve an application involving a foreign bankof the factors set forth in section 3 of the BHC Act. ing organization unless it is "subject to comprehensive BNPP, with total consolidated assets of $709.2 billion, is supervision or regulation on a consolidated basis by the the largest banking organization in France.1 BNPP operates appropriate authorities in the bank's home country."4 The branches in Chicago, Illinois; Los Angeles, California; home country supervisor of BNPP is the French Banking New York, New York; and San Francisco, California; Commission ("FBC"), which is responsible for the superagencies in Houston, Texas, and Miami, Florida; and repre- vision and regulation of French financial institutions. sentative offices in Dallas, Texas, and Atlanta, Georgia. In approving applications under the BHC Act, the Board With its 45-percent share of outstanding voting shares, previously has determined that French banks, including BNPP indirectly controls BancWest and its bank subsidiar- BNPP, were subject to comprehensive consolidated superies, Bank of the West and First Hawaiian. BNPP also vision by the FBC.5 In this case, the Board finds that the engages in a broad range of permissible nonbanking activi- FBC continues to supervise BNPP in substantially the ties in the United States through its subsidiaries. same manner as it supervised French banks at the time of BancWest, with total consolidated assets of $19.8 bil- those previous determinations. Based on this finding and lion, is the 35th largest banking organization in the United all the facts of record, the Board concludes that BNPP States, controlling less than 1 percent of total banking continues to be subject to comprehensive supervision on a assets of insured commercial banks in the United States.2 consolidated basis by its home country supervisor. BancWest operates Bank of the West and First Hawaiian. In addition, section 3 of the BHC Act requires the Board Bank of the West, with total assets of $12.3 billion, con- to determine that a foreign bank has provided adequate trols deposits of $7 billion in California, representing ap- assurances that it will make available to the Board such proximately 1.5 percent of total deposits of insured deposi- information on its operations and activities and those of its tory institutions in the state ("state deposits").3 Bank of affiliates that the Board deems appropriate to determine the West also operates branches in Oregon, New Mexico, and enforce compliance with the BHC Act.6 The Board has Nevada, Washington, and Idaho. First Hawaiian, with total reviewed the restrictions on disclosure in relevant jurisdicassets of $7.2 billion, controls deposits of $5.5 billion in tions in which BNPP operates and has communicated with Hawaii, representing approximately 30 percent of total relevant government authorities concerning access to inforstate deposits. First Hawaiian also operates branches in mation. In addition, BNPP previously has committed to Guam and Saipan; a branch in Grand Cayman, British make available to the Board such information on the oper- West Indies; and a representative office in Tokyo, Japan. ations of BNPP and its affiliates that the Board deems necessary to determine and enforce compliance with the Financial, Managerial and Supervisory Considerations BHC Act and other applicable federal law. BNPP also The BHC Act requires the Board to consider the financial and managerial resources and future prospects of the com- 4. 12 U.S.C. § 1842(c)(3)(B). Under Regulation Y, the Board uses panies and banks involved in a proposal and certain other the standards enumerated in Regulation K to determine whether a supervisory factors. BNPP's capital levels exceed the min- foreign bank that has applied under section 3 of the BHC Act is subject to consolidated home country supervision. See 12 C.F.R. imum levels that would be required under the Basel Capital 225.13(a)(4). Regulation K provides that a foreign bank will be Accord, and its capital levels are considered equivalent to considered to be subject to comprehensive supervision or regulation the capital levels that would be required of a U.S. banking on a consolidated basis if the Board determines that the bank is supervised and regulated in such a manner that its home country supervisor receives sufficient information on the worldwide operations of the bank, including its relationship to affiliates, to assess the bank's 1. Asset and ranking data for BNPP are as of September 30, 2001, overall financial conditions and its compliance with law and regulaand are based on the exchange rate then applicable. tions. See 12 C.F.R. 211.24(c)(1). 2. Asset and ranking data for BancWest are as of September 30, 5. See Banque Nationale de Paris, 81 Federal Reserve Bulletin 515 2001. (1995). Pursuant to delegated authority, the Federal Reserve Bank of 3. Asset and deposit data for Bank of the West and First Hawaiian San Francisco approved BNPP's application to establish offices in the are as of June 30, 2001. State deposit and ranking data are as of United States. Letter dated May 18, 2000, from the Federal Reserve June 30, 2000. In this context, depository institutions include commer- Bank of San Francisco to Paul Glotzer, Esq. cial banks, savings banks, and savings associations. 6. See 12 U.S.C. § 1842(c)(3)(A). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 99 previously has committed to cooperate with the Board to Board determines to be appropriate to determine and enobtain any waivers or exemptions that may be necessary to force compliance by BNPP and its affiliates with applicable enable BNPP and its affiliates to make such information federal statutes. If any restrictions on access to information available to the Board. In light of these commitments, the on the operations or activities of BNPP and its affiliates Board concludes that BNPP has provided adequate assur- subsequently interfere with the Board's ability to obtain ances of access to any appropriate information that the information to determine and enforce compliance by BNPP Board may request. Based on these and all the facts of or its affiliates with applicable federal statutes, the Board record, the Board concludes that the supervisory factors it may require termination of any of BNPP's direct or indiis required to consider are consistent with approval. rect activities in the United States. All the commitments and conditions on which the Board relied in granting its Other Considerations approval, including the commitments and conditions specifically described above, are deemed to be conditions Section 3 of the BHC Act prohibits the Board from approv- imposed in writing by the Board in connection with its ing a proposal that would result in a monopoly. The Board findings and decision and, as such, may be enforced in is also prohibited from approving a proposal that would proceedings under applicable law. substantially lessen competition or tend to create a monop- The acquisition of the BancWest shares may not be oly in any relevant banking market, unless the Board finds consummated before the fifteenth calendar day after the that the anticompetitive effects of the proposal are clearly effective date of this order, and the proposal may not be outweighed in the public interest by the probable effects of consummated later than three months after the effective the proposal in meeting the convenience and needs of the date of this order, unless such period is extended for good community to be served.7 cause by the Board, or by the Federal Reserve Bank of San Because BNPP already controls Banc West, the proposed Francisco, acting pursuant to delegated authority. transaction would have no anticompetitive effects in any By order of the Board of Governors, effective Decemrelevant markets. Accordingly, and based on all the facts of ber 4, 2001. record, the Board concludes that consummation of the proposal would not have a significantly adverse effect on Voting for this action: Chairman Greenspan, Vice Chairman Fergucompetition or on the concentration of banking resources son, and Governors Kelley, Meyer, and Gramlich. in any relevant banking market, and that competitive considerations are consistent with approval. Considerations ROBERT DEV. FRIERSON Deputy Secretary of the Board based on the convenience and needs of the communities to be served, including the records of performance of the U.S. subsidiary banks of the organizations under the Commu- Chickasaw Banc Holding Company nity Reinvestment Act (12 U.S.C. § 2901 et seq.) Yukon, Oklahoma ("CRA") also are consistent with approval.8 Order Approving the Formation of a Bank Holding Company and the Acquisition of a Bank Holding Conclusion Company and Bank and Unaffiliated Branch Based on the foregoing, the Board has determined that the Chickasaw Banc Holding Company ("Chickasaw")1 has acquisition by BNPP of the BancWest voting shares, requested the Board's approval under section 3(a)(1) of the should be, and hereby is, approved. In reaching its conclu- Bank Holding Company Act ("BHC Act") (12 U.S.C. sion, the Board has considered all the facts of record in § 1842(a)(1)) to become a bank holding company by aclight of the factors that the Board is required to consider quiring all the voting shares of First Bancorp in Davidson, under the BHC Act. Inc. ("First Bancorp") and its subsidiary, First State Bank The Board's approval is specifically conditioned on comin Davidson ("Bank"), both in Davidson, Oklahoma. In pliance by BNPP with all the commitments made in conaddition, Bank has requested the Board's approval under nection with this application, including the conditions set section 9 of the Federal Reserve Act ("FRA") (12 U.S.C. forth in the order and the above-noted Board regulations § 321) to become a member of the Federal Reserve System and orders. The Board's approval also specifically is condiand to operate Bank as a branch office. Bank also has tioned on BNPP's compliance with the commitments it sought Board approval under section 18(c) of Federal previously made regarding access to information, and on Deposit Insurance Act (the Bank Merger Act ("BMA")) the Board's receiving access to information on the opera- (12 U.S.C. § 1828(c)) to acquire certain assets and assume tions or activities of BNPP and any of its affiliates that the certain liabilities of a branch of First National Bank of 7. 12 U.S.C. § 1842(c). 8. Bank of the West received a "satisfactory" rating from the Federal Deposit Insurance Corporation ("FDIC") at its most recent CRA evaluation, as of May 1, 2000. First Hawaiian received an "outstanding" rating from the FDIC at its most recent CRA evalua- 1. Chickasaw Banc Holding Company is a wholly owned subsidiary tion, as of January 1, 2001. of the Chickasaw Nation, a Native American tribe. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

100 Federal Reserve Bulletin • February 2002 Oklahoma, Ponca City, at 909 South Meridian, Oklahoma under the Community Reinvestment Act (12 U.S.C. City, both in Oklahoma ("Meridian branch").2 § 2901 et seq.) ("CRA"). Bank received an "outstanding" Notice of the proposal, affording interested persons an CRA rating from its primary federal supervisor, the Federal opportunity to comment, has been published (66 Federal Deposit Insurance Corporation, as of January 11, 1999. Register 52,416 (2001)). The time for filing comments has First National Bank of Oklahoma received a "satisfactory" expired, and the Board has considered all the comments CRA rating from its primary federal supervisor, the Office received on the applications, in light of the factors enumer- of the Comptroller of the Currency, as of October 12, 1999. ated in section 3(c) of the BHC Act, the FRA, and the Bank has stated that it intends to retain its current retail BMA. banking activities in the Davidson community and to offer Chickasaw, a newly organized corporation that currently its products and services in the western Oklahoma City does not control any depository institution, has been banking market through the acquisition of the Meridian formed to acquire First Bancorp and Bank. Bank, which branch. In addition, Bank intends to offer retail banking has one branch in Davidson, Oklahoma, is the 266th larg- services to the Chickasaw Nation (the "Nation") and other est depository institution in Oklahoma,3 controlling Native American tribes. $7.5 million in deposits, representing less than 1 percent of After reviewing all the information submitted by Chickatotal deposits in the state.4 The Meridian branch controls saw and Bank related to the convenience and needs factor $7.7 million in deposits, representing less than 1 percent of and based on all the facts of record, the Board concludes total deposits in the state. On consummation of the that considerations relating to convenience and needs are proposal, Chickasaw would become the 247th largest com- consistent with approval. mercial banking organization in Oklahoma, controlling $15.2 million in deposits. Financial, Managerial, and Other Supervisory Factors Considerations Relating to Competition and Convenience Section 3 of the BHC Act and the BMA require the Board and Needs to consider the financial and managerial resources and future prospects of the companies and banks involved in a Section 3 of the BHC Act and the BMA prohibit the Board bank acquisition proposal.7 As part of this analysis, the from approving a proposal that would result in a monopoly Board has reviewed Bank's operating plan and the proor would be in furtherance of a monopoly in any relevant posed management of Chickasaw and Bank. In addition, banking market. The BHC Act and BMA also prohibit the the Board has taken into account Chickasaw's financial Board from approving a proposed bank acquisition that resources, including its capital levels and ability to serve as would substantially lessen competition in any relevant a source of strength to Bank. The Board also has reviewed banking market, unless the Board finds that the anticom- confidential supervisory and examination information petitive effects of the proposal clearly are outweighed in about Bank and publicly reported financial and other inforthe public interest by the probable effect of the proposal in mation about Bank and Chickasaw. meeting the convenience and needs of the community to be The Board also has considered that Chickasaw's voting served.5 shares are owned by the Nation.8 The Nation would own Bank and the Meridian branch do not compete in any and control Bank through Chickasaw, a registered bank relevant banking market. Based on all the facts of record, holding company. The Board has accepted commitments the Board has concluded that consummation of the pro- from the Nation to ensure that its status as a domestic posal would have no adverse effect on competition or on sovereign does not impede the ability of the federal bankthe concentration of banking resources in any relevant ing agencies to supervise and enforce banking laws against banking market. Accordingly, the Board has determined any entity related to or affiliated with Chickasaw and Bank. that competitive factors are consistent with approval of the The commitments recognize that the Nation and its affiliproposal. ates are subject to limitations imposed by sections 23A and Section 3 of the BHC Act and the BMA also require the 23B of the Federal Reserve Act and the Board's Regula- Board to consider the effect of the transaction on the tion O governing loans to insiders. The commitments also convenience and needs of the community to be served.6 In provide the Board with adequate assurances that the Nation evaluating this factor, the Board places particular emphasis on the ratings received by the depository institutions involved in a proposal at their most recent examinations 7. 12 U.S.C. § 1842(c)(2); 12 U.S.C. §1828(c)(5). 8. The stock of the applicant is owned by the Nation and would be voted by the Governor of the tribe in his official capacity. The Board 2. After consummation of the proposal, Bank would move its main previously has recognized that Native American tribes such as the office to the Meridian branch location and retain the Davidson, Okla- Nation are considered domestic sovereigns and are therefore excluded homa, office as a branch. from the BHC Act's definition of "company." E.g., Mille Lacs Ban- 3. In this context, the term "depository institution" includes com- corporation, 82 Federal Reserve Bulletin 336 (1996). Three bank mercial banks, savings banks, and savings associations. holding companies currently are wholly owned by Native American 4. The deposit and ranking data are as of June 30, 2001. tribes. See Bay Bancorporation, 81 Federal Reserve Bulletin 791 5. 12 U.S.C. § 1842(c)(1)(A) and (B); 12 U.S.C. § 1828(c)(5)(A) (1995); Mille Lacs Bancorporation, 82 Federal Reserve Bulletin 336 and (B). (1996); Native American Bancorporation, 87 Federal Reserve Bulle- 6. 12 U.S.C. § 1842(c)(2); 12 U.S.C. § 1828(c)(5). tin 1A1 (2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 101 and its affiliates will make available the information on Independence Bancshares, Inc. their operations and activities that is necessary for the Independence, Iowa Board to determine and enforce compliance with applicable federal banking laws. The Nation and affiliated entities Order Approving the Acquisition of a Bank Holding also acknowledge the jurisdiction of the Board to enforce Company compliance with banking laws and have agreed to the jurisdiction of the federal courts for purposes of enforcing Independence Bancshares, Inc. ("Independence"), a bank these laws. In light of the commitments, and after consider- holding company within the meaning of the Bank Holding ing all the facts of record, the Board concludes that the Company Act ("BHC Act"), has requested the Board's financial and managerial resources and future prospects of approval under section 3(a)(3) of the BHC Act (12 U.S.C. Chickasaw and Bank are consistent with approval, as are § 1842(a)(3)) to acquire all the voting shares of Fairbank other supervisory factors the Board is required to consider Bancshares Corporation ("Fairbank"), and thereby acquire under the BHC Act and the BMA. Fairbank's subsidiary bank, Fairbank State Bank ("Bank"), In addition, Bank has applied under Section 9 of the both in Fairbank, Iowa. FRA to become a member of the Federal Reserve System Notice of the proposal, affording interested persons an and to establish a branch at its current location. The Board opportunity to submit comments, has been published (66 has considered the factors it is required to consider when Federal Register 55,941 (2001)). The time for filing comreviewing applications pursuant to Section 9 of the FRA9 ments has expired, and the Board has considered the proand finds those factors to be consistent with approval. posal and all comments received in light of the factors set forth in section 3 of the BHC Act. Conclusion Independence, the 159th largest banking organization in Iowa, controls two subsidiary banks with total deposits of Based on the foregoing and after considering all the facts $63.5 million,' representing less than 1 percent of total of record, the Board has determined that the applications deposits in depository institutions in the state ("state deshould be, and hereby are, approved. In reaching its conclu- posits").2 Fairbank, the 332nd largest banking organization sion, the Board has considered all the facts of record in in Iowa, controls one subsidiary bank with total deposits of light of the factors required to consider under the BHC Act, $18.4 million, representing less than 1 percent of state the FRA and the BMA. The Board's approval is specifi- deposits. On consummation of the proposal, Independence cally conditioned on compliance by Chickasaw, the Na- would become the 117th largest banking organization in tion, and each affiliated entity with all the commitments Iowa, controlling deposits of $81.9 million. and representations made in connection with the applications, including the commitments described in this order, Competitive Considerations and the conditions set forth in this order and the abovenoted Board regulations and orders. These commitments Section 3 of the BHC Act prohibits the Board from approvand conditions are deemed to be conditions imposed in ing a proposal that would result in a monopoly or would be writing by the Board in connection with its findings and in furtherance of any attempt to monopolize the business of decision and, as such, may be enforced in proceedings banking. Section 3 also prohibits the Board from approving under applicable law. a proposed bank acquisition that would substantially lessen The acquisition of Bank may not be consummated be- competition in any relevant banking market, unless the fore the fifteenth calendar day after the effective date of anticompetitive effects of the proposal are clearly outthis order, and the proposal may not be consummated later weighed in the public interest by the probable effect of the than three months after the effective date of this order, proposal in meeting the convenience and needs of the unless such period is extended for good cause by the Board community to be served.3 or by the Federal Reserve Bank of Kansas City, acting Independence and Fairbank compete directly in the pursuant to delegated authority. Buchanan, Iowa, banking market ("Buchanan market").4 By order of the Board of Governors, effective Decem- The Board has reviewed carefully the competitive effects ber 14, 2001. of the proposal in the Buchanan market in light of all the facts of record. In particular, the Board has considered the Voting for this action: Chairman Greenspan, Vice Chairman Fergu- increase in the concentration of total deposits in depository son, and Governors Kelley, Meyer, Gramlich, Bies, and Olson. institutions in the market ("market deposits") as measured ROBERT DEV. FRIERSON Deputy Secretary of the Board 1. The subsidiary banks of Independence are Northeast Security Bank, Sumner, and Security State Bank, Independence, both in Iowa. 2 In this context, depository institutions include commercial banks, savings banks, and savings associations. Deposit data are as of June 30, 2001, and have been adjusted to reflect structural changes that have occurred since that time. 3. See 12 U.S.C. § 1842(c)(1). 9. 12 U.S.C. § 322. 4, The Buchanan market is defined as Buchanan County, Iowa. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

102 Federal Reserve Bulletin • February 2002 by the Herfindahl-Hirschman Index ("HHI") under the remain in the Buchanan market after consummation of the Department of Justice Merger Guidelines ("DOJ Guide- proposal, the structure and attractiveness of that market, lines"),5 the number of competitors that would remain in and other factors, mitigate the transaction's potential antithe market, and other characteristics of the market. competitive effects. The Board has also considered the Consummation of the proposal would exceed the DOJ views of the Department of Justice and the appropriate Guidelines in the Buchanan market. Independence is the banking agencies on the competitive effects of the proposal second largest of nine depository institutions in the market, in the Buchanan market. The Department of Justice has controlling $38 million in deposits, representing 14.7 per- advised the Board that consummation of the proposal is not cent of market deposits. Fairbank ranks fifth in the market, likely to have any significant adverse competitive effects in controlling $18.3 million in deposits, representing 7.1 per- the Buchanan market. The Federal Deposit Insurance Corcent of market deposits. After the proposed transaction, poration ("FDIC") was provided an opportunity to com- Independence would remain the second largest depository ment and did not object to consummation of the proposal. institution in the Buchanan market and control $56.3 mil- Based on these and all the facts of record, the Board lion in deposits, representing 21.8 percent of market depos- concludes that consummation of the proposal is not likely its. The HHI would increase 208 points to 2861.6 to result in any significantly adverse effects on competition In this case, several mitigating factors indicate that the or on the concentration of banking resources in the increase in market concentration, as measured by the HHI, Buchanan market or any other relevant banking market. On is not likely to reflect a significantly adverse effect on this basis, the Board has determined that the competitive competition. After consummation of the proposal, at least factors are consistent with approval of the proposal. eight competitors would remain in the Buchanan market. One competitor would control 46 percent of market Other Considerations deposits and another competitor would control more than 13 percent. The BHC Act requires the Board, in acting on an applica- The Buchanan market also appears to be attractive for tion, to consider the financial and managerial resources and entry. The averages for Buchanan County exceed the aver- future prospects of the companies and banks involved, the ages for all Iowa non-Metropolitan Statistical Area coun- convenience and needs of the communities to be served, ties in population per banking office, deposits per banking and certain other supervisory factors. The Board has reoffice, and increase in per capita income. Moreover, Iowa viewed these factors in light of the record, including superrecently amended its branching law to allow unlimited visory reports of examination assessing the financial and intrastate de novo branching by Iowa state-chartered banks, managerial resources of the organizations, and financial effective July 1, 2004.7 Until the new law becomes effec- information provided by Independence. Based on all the tive, a state bank may establish up to three new branches facts of record, the Board concludes that the financial and anywhere in the state.8 managerial resources and the future prospects of Indepen- The Board concludes that the foregoing considerations, dence, Fairbank, and their subsidiary banks are consistent including the number and size of competitors that would with approval, as are the other supervisory factors the Board must consider under the BHC Act. In considering the convenience and needs of the commu- 5. Under the DOJ Guidelines, 49 Federal Register 26,823 (June 29, nities to be served, the Board has reviewed the records of 1984), a market in which the post-merger HHI is more than 1800 is performance of the subsidiary banks of Independence considered to be highly concentrated. The Department of Justice has and Fairbank under the Community Reinvestment Act informed the Board that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticom- (12 U.S.C. § 2901 et seq.).9 Based on all the facts of petitive effects) unless the post-merger HHI is at least 1800 and the record, the Board concludes that convenience and needs merger increases the HHI by more than 200 points. The Department considerations, including the CRA performance records of of Justice has stated that the higher than normal HHI thresholds for the relevant institutions, are consistent with approval of the screening bank mergers for anticompetitive effects implicitly recogproposal. nize the competitive effects of limited-purpose lenders and other nondepository financial institutions. 6. Market share data for the Buchanan market are as of June 30, Conclusion 2001, and are based on calculations in which the deposits of thrift institutions are included at 50 percent. The Board previously has Based on the foregoing, and in light of all the facts of indicated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See WM Ban- record, the Board has determined that the application corp, 76 Federal Reserve Bulletin 788 (1990); National City Corpora- should be, and hereby is, approved. The Board's approval tion, 70 Federal Reserve Bulletin 743 (1984). Thus, the Board has regularly included thrift deposits in the calculation of market share on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 77 Federal Reserve Bulletin 52 (1991). 9. The subsidiary banks of Independence and Fairbank received the 7. See H.F. 222, 79th Gen. Assem., 1st Sess. (Ia. 2001). Before the following ratings at their most recent examinations for CRA perforamendment, Iowa law prohibited any state bank from establishing a mance by their primary federal supervisor: Northeast Security Bank bank office "outside the boundaries of the counties contiguous to or received an "outstanding" rating from the FDIC, as of July 1, 1997; cornering upon the county in which the principal place of business of Security State Bank received a "satisfactory" rating from the FDIC, the state bank is located." See Iowa Code § 524.1202 (2001). as of June 1, 1997; and Bank received a "satisfactory" rating from the 8. See H.F. 222, 79th Gen. Assem., 1st Sess. (Ia. 2001). FDIC, as of October 1, 1999. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 103 is specifically conditioned on compliance by Independence proval under sections 4(c)(8) and 4(j) of the BHC Act with all the commitments made in connection with the (12 U.S.C. §§ 1843(c)(8) and 1843(j)) to acquire Marquette proposal. For the purpose of this action, the commitments Financial Group, Inc., Minneapolis, Minnesota ("Marand conditions relied on by the Board in reaching its quette Financial"), a nonbanking subsidiary of Marquette decision are deemed to be conditions imposed in writing that engages in investment advisory and securities brokerby the Board in connection with its findings and decision age activities. and, as such, may be enforced in proceedings under appli- Notice of the proposal, affording interested persons an cable law. opportunity to submit comments, has been published The acquisition of Bank shall not be consummated be- (66 Federal Register 54,011 (2001)). The time for filing fore the fifteenth calendar day after the effective date of comments has expired, and the Board has considered the this order, or later than three months after the effective date proposal and all comments received during the comment of this order, unless such period is extended for good cause period in light of all the factors set forth in sections 3 and 4 by the Federal Reserve Bank of Chicago, acting pursuant of the BHC Act.3 to delegated authority. Wells Fargo, with total consolidated assets of By order of the Board of Governors, effective Decem- $298.1 billion, is the fifth largest commercial banking ber 21, 2001. organization in the United States, controlling approximately 4 percent of total banking assets of insured com- Voting for this action: Chairman Greenspan, Vice Chairman Fergu- mercial banks in the United States ("total U.S. banking son, and Governors Kelley, Meyer, Gramlich, Bies, and Olson. assets").4 Wells Fargo operates subsidiary banks in Alaska, Arizona, California, Colorado, Idaho, Illinois, Indiana, ROBERT DEV. FRIERSON Iowa, Michigan, Minnesota, Missouri, Montana, Nebraska, Deputy Secretary of the Board Nevada, New Mexico, New York, North Dakota, Ohio, Oregon, South Dakota, Texas, Utah, Washington, Wiscon- Orders Issued Under Sections 3 and 4 of the Bank sin, and Wyoming. Wells Fargo is the fourth largest com- Holding Company Act mercial banking organization in Texas, controlling deposits of $17.5 billion, representing approximately 7.2 percent of Wells Fargo & Company total deposits in insured depository institutions in the state San Francisco, California ("state deposits").5 Wells Fargo is the largest commercial banking organization in Minnesota, controlling deposits of Order Approving the Acquisition of Bank Holding $21.8 billion, representing approximately 28.8 percent of Companies Banks and a Nonbanking Subsidiary state deposits. Texas Financial has total consolidated assets of Wells Fargo & Company ("Wells Fargo"), a financial $2.9 billion and operates subsidiary depository institutions holding company within the meaning of the Bank Holding in Texas, Illinois, and New Mexico. Texas Financial is the Company Act ("BHC Act"), has requested the Board's twelfth largest commercial banking organization in Texas, approval under section 3 of the BHC Act (12 U.S.C. controlling deposits of $2.1 billion, representing less than § 1842) to acquire all the voting shares of Texas Financial 1 percent of state deposits. Bancorporation, Inc., Minneapolis, Minnesota ("Texas Fi- Marquette has consolidated assets of $3.2 billion and nancial"), and thereby acquire control of certain subsidiary operates subsidiary depository institutions in Minnesota, banks of Texas Financial;1 and to acquire from Marquette California, Illinois, Iowa, Nebraska, South Dakota, and Bancshares, Inc., Minneapolis, Minnesota ("Marquette"), Wisconsin. Marquette is the fifth largest commercial bankall the voting shares of certain subsidiary banks of Maring organization in Minnesota, controlling deposits of quette, including Marquette's lead bank, Marquette Bank, $1.4 billion, representing 1.9 percent of state deposits. National Association, Rogers, Minnesota ("Marquette Bank").2 Wells Fargo also has requested the Board's ap- On consummation of the proposal and after accounting for the proposed divestitures discussed in this order, Wells 1. The subsidiary banks of Texas Financial that Wells Fargo proposes to acquire (collectively, the "Texas Financial Banks") are First Minnesota; Meridian Capital Bank, Milwaukee, Wisconsin; and The State Bank of Texas, Denton, and the First National Bank of Texas, First National Bank & Trust Co. of Baraboo, Baraboo, Wisconsin. Decatur, both in Texas; Bank of Santa Fe, Santa Fe, New Mexico; and Wells Fargo would not acquire Marquette Bank of Illinois, Galesburg, Marquette Bank of Monmouth, Monmouth, Illinois. Wells Fargo does Illinois; Marquette Bank of Nebraska, O'Neill, Nebraska; or Business not propose to acquire Texas Financial's other two subsidiary banks, First National Bank, Santa Barbara, California, all subsidiary banks of Community Bank of Arizona, Wickenburg, Arizona, and Mercantile Marquette. National Bank, Los Angeles, California. As part of this transaction, 3. Thirty commenters opposed and/or expressed concerns about the Wells Fargo also proposes to acquire Delaware Financial, Inc., Wil- proposed transactions, generally citing potential anticompetitive efmington, Delaware, an intermediate holding company subsidiary. On fects of the proposal or the effects of the proposal on the convenience consummation of the proposal, Texas Financial and Delaware Finan- and needs of the affected communities. cial would be wholly owned subsidiaries of Wells Fargo. 4. Asset and national ranking data are as of September 30, 2001. 2. The other subsidiary banks of Marquette to be acquired by Wells 5. Asset, deposit, and state ranking data are as of June 30, 2001. In Fargo (collectively, the "Marquette Banks") are Marquette Bank of this context, depository institutions include commercial banks, sav- Morrison, Morrison, Illinois; Marquette Capital Bank, N.A., Wayzata, ings banks, and savings associations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

104 Federal Reserve Bulletin • February 2002 Fargo would remain the fifth largest commercial banking Competitive Considerations organization in the United States, with total consolidated assets of $304.2 billion, representing approximately 4 per- Section 3 of the BHC Act prohibits the Board from approvcent of total U.S. banking assets. Wells Fargo would re- ing a proposal that would result in a monopoly or would be main the fourth largest commercial banking organization in in furtherance of any attempt to monopolize the business of Texas, controlling deposits of $19.6 billion representing banking in any relevant banking market. The BHC Act also approximately 8 percent of state deposits. Wells Fargo prohibits the Board from approving a proposed bank acquiwould remain the largest commercial banking organization sition that would substantially lessen competition in any in Minnesota, controlling deposits of $23.2 billion, repre- relevant banking market, unless the Board finds that the senting approximately 30.7 percent of state deposits. anticompetitive effects of the proposal clearly are outweighed in the public interest by the probable effect of the Interstate Analysis proposal in meeting the convenience and needs of the community to be served.11 Section 3(d) of the BHC Act allows the Board to approve Wells Fargo competes directly with the Texas Financial an application by a bank holding company to acquire Banks and the Marquette Banks in twenty local banking control of a bank in a state other than the home state of the markets primarily in six states.12 The Board has reviewed bank holding company if certain conditions are met.6 For carefully the competitive effects of the proposal in each of purposes of the BHC Act, the home state of Wells Fargo is these banking markets in light of comments received and Minnesota, and the Texas Financial Banks and Marquette all the facts of record.13 In particular, the Board has consid- Banks are located in Illinois, Iowa, Minnesota, New Mex- ered the number of competitors that would remain in the ico, South Dakota, Texas, and Wisconsin.7 The Board has market, the relative share of total deposits in depository reviewed the interstate banking laws of each state in which institutions controlled by Wells Fargo and the relevant Wells Fargo would acquire banking operations and con- subsidiary banks of Texas Financial or Marquette in the sulted with the appropriate banking regulator in each of markets ("market deposits"),14 the concentration level of those states regarding the permissibility of the proposed market deposits and the increase in this level as measured transaction under applicable state law. by the Herfindahl-Hirschman Index ("HHI") under the All the conditions for an interstate acquisition enumer- Department of Justice Guidelines ("DOJ Guidelines"),15 ated in section 3(d) of the BHC Act are met in this case. and other characteristics of the markets. Wells Fargo is adequately capitalized and adequately managed, as defined by applicable law.8 In addition, the Texas A. Banking Markets With Divestitures Financial Banks and Marquette Banks have been in existence for the minimum period of time required by applica- To reduce the potential for adverse effects on competition ble law.9 On consummation of the proposal and after in four of the twenty banking markets in which Wells accounting for the proposed divestitures, Wells Fargo and Fargo and the Texas Financial Bank or Marquette Banks its affiliates would control less than 10 percent of the total compete directly, Wells Fargo has committed to divest nine amount of deposits of insured depository institutions in the United States and less than 30 percent, or the applicable percentage established by state law, of total deposits in 11. 12 U.S.C. § 1842(c)(1). 12. These markets are described in Appendix A. every state except Wells Fargo's home state of Minneso- 13. Nine commenters expressed concern that the proposal would ta.10 All other requirements of section 3(d) would be met have anticompetitive effects in certain banking markets. on consummation of the proposal. Accordingly, based on 14. Deposit and market share data are as of June 30, 2000, and are all the facts of record, the Board is permitted to approve based on calculations in which the deposits of thrift institutions, which the proposed transaction under section 3(d) of the BHC include savings banks and savings associations, are weighted at 50 percent, unless otherwise noted. The Board previously has indi- Act. cated that thrift institutions have become, or have the potential to become, significant competitors of commercial banks. See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 (1989); National City Corporation, 70 Federal Reserve Bulletin 743 (1984). Thus, the Board regularly has included thrift deposits in the market share calculation on a 50-percent weighted basis. See, e.g., First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991). 15. Under the DOJ Guidelines, 49 Federal Register 26,823 (1984), 6. See 12 U.S.C. § 1842(d). A bank holding company's home state a market is considered unconcentrated if the post-merger HHI is under is the state in which the total deposits of all banking subsidiaries of 1000, moderately concentrated if the post-merger HHI is between such company were the largest on the later of July 1, 1966. or the date 1000 and 1800, and highly concentrated if the post-merger HHI is on which the company became a bank holding company. 12 U.S.C. more than 1800. The Department of Justice has informed the Board § 1841(o)(4)(C). that a bank merger or acquisition generally will not be challenged (in 7. For purposes of section 3(d) of the BHC Act, the Board considers the absence of other factors indicating anticompetitive effects) unless a bank to be located in the states in which the bank is chartered, the post-merger HHI is at least 1800 and the merger increases the HHI headquartered, or operates a branch. by more than 200 points. The Department of Justice has stated that the 8. See 12 U.S.C. § 1842(d)(1)(A). higher than normal HHI thresholds for screening bank mergers for 9. See 12 U.S.C. § 1842(d)(1)(B). anticompetitive effects implicitly recognize the competitive effects of 10. See 12 U.S.C. § 1842(d)(2). limited-purpose lenders and other nondepository financial institutions. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 105 branches, which account for approximately $304 million in increase in the HHI would be within the thresholds levels deposits.16 In light of the proposed divestitures, consumma- established by the DOJ Guidelines and Board precedent. tion of the proposal would be consistent with Board prece- In the four remaining banking markets, consummation dent and the DO J Guidelines in these banking markets. In of the proposed acquisition would exceed the DOJ Guideaddition, numerous competitors would remain in each of lines. These banking markets are Cedar Rapids, Iowa; these banking markets.17 Santa Fe, New Mexico; and Washington County and Victoria, both in Texas. In each of these markets, the Board has B. Banking Markets Without Divestitures considered whether other factors either mitigate the competitive effects of the proposal in the market or indicate that Consummation of the proposal without divestitures would the proposal would have a significantly adverse effect on be consistent with Board precedent and the DOJ guidelines competition in the market.20 in twelve of the banking markets.18 After consummation of Minneapolis - St. Paul. Although the proposal would not the proposal, two of these banking markets would remain exceed the thresholds in the DOJ Guidelines, the Board unconcentrated, two markets would become moderately previously has recognized the unique structure of the concentrated, and seven markets would remain moderately Minneapolis-St. Paul banking market and has indicated concentrated as measured by the HHI.19 The Minneapolis- that mergers involving one of the two largest depository St. Paul banking market, which is discussed below, would institutions in the market warrant careful review because of be highly concentrated as measured by the HHI, but the the size of these institutions relative to other market competitors.21 In the Minneapolis-St. Paul banking market, Wells Fargo is the second largest competitor, controlling deposits of $13 billion, representing approximately 16. These banking markets are Chamberlain, Huron, and Water- 29.6 percent of market deposits.22 Marquette is the fifth town, South Dakota; and Rochester, Minnesota. The effects of the proposal on the concentration of banking resources in these markets largest competitor in the market, controlling deposits of are described in Appendix B. approximately $964 million, representing 2.2 percent of The Board has considered several comments that expressed concern market deposits. On consummation of the proposal, Wells over potential anticompetitive effects of the proposal and asserted that Fargo would continue to operate the second largest deposithe city of Chamberlain should not be considered part of the currently designated Mitchell, South Dakota, banking market. In reviewing tory institution in the market, controlling deposits of Chamberlain's inclusion in the Mitchell market, the Board has consid- approximately $14 billion, representing approximately ered worker commuting patterns (as indicated by census data), shop- 31.8 percent of market deposits. The HHI would increase ping patterns and other indicia of economic integration, relevant by 129 points to 2310 and, therefore, would not exceed the banking data, information provided by local chambers of commerce, thresholds in the DOJ Guidelines in the Minneapolisand the results of a telephone survey of households and small businesses in the Chamberlain area. Based on all the facts of record, the St. Paul banking market.23 Board concludes that the appropriate market for analyzing the compet- In this case, the Board believes that a number of factors itive effects of the proposal is a newly designated Chamberlain, South indicate that consummation of the proposed merger is not Dakota, banking market ("Chamberlain banking market"), defined as likely to have a significantly adverse effect on competition Brule and Buffalo Counties and the eastern half of Lyman County, including the communities of Kennebec and Lower Brule, all in South in the Minneapolis-St. Paul banking market. As a result of Dakota. the proposed acquisition, the combined relative strength of 17. With respect to each market in which Wells Fargo has commit- the two largest competitors in the Minneapolis-St. Paul ted to divest offices to mitigate the anticompetitive effects of the banking market would not increase significantly.24 In addiproposal, Wells Fargo has committed to execute, before consummation of the proposal, a sale agreement for the proposed divestiture with a purchaser determined by the Board to be competitively suitable and to complete the divestiture within 180 days after consummation of the 20. The number and strength of factors necessary to mitigate the proposal. Wells Fargo also has committed that, if it is unsuccessful in competitive effects of a proposal depend on the level and size of the completing any divestiture within 180 days of consummation, it will increase in market concentration. See NationsBank Corporation, transfer the unsold branch(es) to an independent trustee that is accept- 84 Federal Reserve Bulletin 129 (1998). able to the Board and will instruct the trustee to sell the branch(es) 21. See Firstar Corporation, 87 Federal Reserve Bulletin 236 promptly to one or more alternative purchasers acceptable to the (2001) ("Firstar"); see also, Norwest Corporation, 82 Federal Re- Board. See BankAmerica Corporation, 78 Federal Reserve Bulletin serve Bulletin 580 (1996); First Bank System, Inc., 79 Federal Re- 338 (1992); United New Mexico Financial Corporation, 77 Federal serve Bulletin 50 (1993). U.S. Bancorp is the largest competitor in the Reserve Bulletin 484 (1991). market, controlling deposits of approximately $15.6 billion, represent- 18. These markets are Hutchinson, Litchfield, Minneapolis-St. Paul, ing 35.2 percent of market deposits. and Red Wing, Minnesota; Aberdeen, Sioux Falls, and Yankton, 22. Deposit data are as of June 30, 2000, and have been adjusted to South Dakota; Austin, Dallas, Forth Worth, and Houston, Texas; and reflect subsequent mergers and acquisitions. Milwaukee, Wisconsin. The effects of the proposal on the concentra- 23. A commenter expressed concerns about the potential anticomtion of banking resources in these markets are described in Appen- petitive effects of the proposal in the Minneapolis-St. Paul banking dix C. market. 19. The unconcentrated banking markets are Sioux Falls, South 24. The combined market share percentage of U.S. Bancorp and Dakota, and Houston, Texas. The banking markets that would become Wells Fargo, the two largest competitors, would increase from moderately concentrated are Litchfield, Minnesota, and Fort Worth, 64.8 percent to 67 percent. As previously noted, the HHI in the Texas, and the banking markets that would remain moderately concen- Minneapolis-St. Paul market would increase by 129 points to 2310 on trated are Hutchinson, and Red Wing, Minnesota; Aberdeen and consummation. In Firstar, the Board approved a proposal by Firstar to Yankton, South Dakota; Austin and Dallas, Texas; and Milwaukee, acquire U.S. Bancorp, which increased the HHI in the Minneapolis- Wisconsin. St. Paul market by 187 points to 2308 and resulted in a combined Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

106 Federal Reserve Bulletin • February 2002 tion, the record of de novo entry into this banking market Several factors indicate that this increase in market conin the last five years has been unprecedented when com- centration in the Cedar Rapids banking market as meapared with other banking markets nationwide and confirms sured by the HHI does not reflect a significantly adverse the attractiveness of the Minneapolis-St. Paul banking mar- effect on competition in the market. One thrift institution ket to new entry. Since 1996, 39 depository institutions operating in the market serves as a significant source of have entered the market, including 23 de novo banks and commercial loans and provides a broad range of consumer, 16 banks headquartered outside the market that have estab- mortgage, and other banking products. Competition from lished branches in the market. Another bank has been this thrift institution closely approximates competition granted a charter in the market, but has not begun opera- from a commercial bank. Accordingly, the Board has contions. cluded that deposits controlled by the institution should be Other factors indicate that the Minneapolis-St. Paul weighted at 100 percent in market share calculations.28 banking market remains attractive for entry.25 From 1990 Accounting for the revised weighting of these deposits, to 2000, the average increase in population for the Wells Fargo would control 31.8 percent of market deposits Minneapolis-St. Paul Metropolitan Statistical Area and the HHI would increase by 343 points to 1817 on ("MSA") exceeded that of the State of Minnesota and the consummation of the proposal. national average.26 In addition, for each year during the The presence and competitive strength of other bank same period, the unemployment rate in the Minneapolis- competitors also is an important factor in this market. After St. Paul MSA was lower than that of Minnesota and the consummation of the proposal, 21 depository institutions national average. Moreover, for the one-year period ending besides Wells Fargo would compete in the market, includ- June 30, 1999, the percentage increase in deposits in the ing one large multistate banking organization. The second Minneapolis-St. Paul MSA was more than three times that largest competitor in the banking market would control of other MSAs in Minnesota and more than four times that more than 22 percent of market deposits, and another of the national average.27 commercial banking organization would control more than Based on all the facts of record and for the reasons 12 percent. discussed above, the Board believes that competitive con- The significant number of recent entries into the Cedar siderations in the Minneapolis-St. Paul banking market are Rapids banking market confirm that the market is attractive consistent with approval in this case. However, the Board for entry. Since 1996, six depository institutions have encontinues to have concerns about the structure of the tered the market de novo, including two in 2001. Minneapolis-St. Paul banking market and believes that The Board also has considered that the market has a future mergers involving either of the two largest competi- large and active credit union and six smaller credit unions tors in that banking market would warrant special consider- that each offer a full range of retail banking products. ation. The Board intends to scrutinize carefully any future These credit unions have street-level branches similar to acquisition proposal that would increase the market share those of local banks and thrifts, and their memberships are of one of the two largest competitors in the Minneapolis- open to all in market residents.29 St. Paul banking market. Santa Fe, New Mexico. Wells Fargo operates the third Cedar Rapids, Iowa. Wells Fargo operates the largest largest depository institution in the market, controlling depository institution in the Cedar Rapids banking market, deposits of $151.8 million, representing approximately controlling deposits of $537 million, representing approxi- 14.6 percent of market deposits. Texas Financial operates mately 25.1 percent of market deposits. Marquette Bank is the fourth largest depository institution in the market, the fourth largest depository institution operating in the controlling deposits of $120.1 million, representing apmarket, controlling deposits of $147.4 million, represent- proximately 11.6 percent of market deposits. On consuming approximately 6.9 percent of market deposits. On con- mation of the proposal, Wells Fargo would operate the summation of the proposal, Wells Fargo would continue to largest depository institution in the market, controlling operate the largest depository institution in the market, deposits of approximately $271.9 million, representing apcontrolling deposits of approximately $684.5 million, rep- proximately 26.2 percent of market deposits. The HHI resenting 32 percent of market deposits. The HHI would would increase by 338 points to 1832. increase by 346 points to 1835. Certain factors indicate that the increase in concentration in the Santa Fe banking market as measured by the HHI market share of 67 percent for Firstar and Wells Fargo. Since consummation of the Firstar transaction, the combined market share of the 28. The Board previously has indicated that it may consider the two largest competitors in the market has decreased. competitiveness of a thrift institution at a level greater than 50 percent 25. See Firstar, at 237. of the savings association's deposits, if appropriate. See, e.g., 26. The population of the Minneapolis-St. Paul MSA increased by Banknorth Group, Inc., 75 Federal Reserve Bulletin 703 (1989). The 13.4 percent, compared with an increase of 9.7 percent for the State of thrift in this case has a 16-percent ratio of commercial and industrial Minnesota and 10.9 percent for the entire United States. loans to assets, which is equivalent to the national average for all 27. Deposits in the Minneapolis-St. Paul MSA increased by commercial banks. See First Union Corporation, 84 Federal Reserve 16.9 percent, compared with an increase of 2 percent in the Duluth- Bulletin 489 (1998). Superior MSA, 3.3 percent in the St. Cloud MSA, and 5 percent in the 29. If the Board were to include the deposits of the seven credit Rochester MSA, all in Minnesota. Deposits nationwide increased by unions at 50 percent, the HHI would increase by 288 points to 1555 as 3.4 percent. a result of this transaction. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 107 does not reflect a significantly adverse effect on competi- tions besides Wells Fargo would compete in the Washingtion. In particular, one thrift institution operating in the ton County banking market.33 market is actively involved in providing a broad range of Victoria, Texas. Wells Fargo operates the second largest banking products, including commercial loans. Based on depository institution in the market, controlling deposits of the facts of record in this case, the Board has concluded $246.7 million, representing approximately 25.3 percent of that deposits controlled by this institution should be market deposits. Texas Financial operates the fifth largest weighted at 100 percent in market share calculations.30 depository institution in the market, controlling deposits of Accounting for the revised weighting of these deposits, $56.8 million, representing approximately 5.8 percent of Wells Fargo would control 24 percent of market deposits market deposits. On consummation of the proposal, Wells and the HHI would increase 282 points to 1750, which is Fargo would remain the second largest depository in the within the DOJ Guidelines. After consummation of this market, controlling deposits of approximately $303.5 milproposal, a significant number of depository institutions lion, representing approximately 31.1 percent of market besides Wells Fargo would compete in the Santa Fe bank- deposits. The HHI would increase 294 points to 2962. ing market.31 Several factors indicate that the increase in concentration Washington County, Texas. Wells Fargo operates the in the Victoria banking market as measured by the HHI third largest depository institution in the market, control- does not reflect a significantly adverse effect on competiling deposits of $77.9 million, representing approximately tion. Two thrift institutions operating in the market offer a 15.7 percent of market deposits. Texas Financial operates full range of banking products and services, including the fourth largest depository institution in the market, commercial loans. Based on a review of their activities, the controlling deposits of $55 million, representing approxi- Board has concluded that deposits controlled by these two mately 11.1 percent of market deposits. On consummation institutions should be weighted at 100 percent in market of the proposal, Wells Fargo would operate the largest share calculations.34 Accounting for the revised weighting depository institution in the market, controlling deposits of of these deposits, Wells Fargo would control approxiapproximately $133 million, representing approximately mately 28.3 percent of market deposits and the HHI would 26.7 percent of market deposits. The HHI would increase increase 242 points to 2580. by 347 points to 1961. After consummation of this proposal, nine depository Several factors indicate that the increase in concentration institutions besides Wells Fargo would compete in the in the Washington County banking market as measured by market, including a large multistate banking organization. the HHI does not reflect a significantly adverse effect on The largest competitor in the banking market would concompetition. In particular, two thrift institutions operating trol more than 38.6 percent of market deposits, and two in the market are actively involved in providing a broad other competitors would each control more than 10 perrange of banking products, including commercial loans. cent. Based on the facts of record in this case, the Board has The attractiveness of the Victoria banking market has concluded that deposits controlled by these institutions been confirmed by the entry since 1998 of three depository should be weighted at 100 percent in market share calcula- institutions through de novo branching. Other factors inditions.32 Accounting for the revised weighting of these cate that the Victoria banking market is attractive for entry. deposits, Wells Fargo would control 23 percent of market For example, from 1990 to 2000, the percentage increase deposits and the HHI would increase 257 points to 1759, in employment in the Victoria MSA exceeded the average which is within the DOJ Guidelines. After consummation percentage increase for all Texas MSAs and the percentage of this proposal, a significant number of depository institu- increase statewide.35 Moreover, in 2000, deposits per banking office and deposits per capita for the Victoria MSA 30. The thrift institution is the largest thrift operating in the Santa Fe banking market and has a 15-percent ratio of commercial and indus- 33. On consummation of the proposal, seven depository institutions trial loans to assets which compares favorably with the 16-percent besides Wells Fargo would compete in the market, including a large average ratio of commercial and industrial loans to assets for commer- multistate banking organization. The second largest competitor in the cial banks nationwide. banking market would control approximately 20.3 percent and three 31. On consummation of the proposal, eight depository institutions other competitors would each control more than 10 percent of market besides Wells Fargo would compete in the Santa Fe banking market, deposits. including a large multistate banking organization. The second largest 34. One of the institutions is the largest thrift in the market and has a competitor in the banking market would control more than 13-percent ratio of commercial and industrial loans to assets. The 20.8 percent and two other competitors would each control more than other thrift has aggressively pursued its commercial lending business 17 percent of market deposits. Two of the five other remaining in the last year, quadrupling to 4 percent its ratio of commercial and commercial banking organizations would each control more than industrial loans to assets. The Board has given 100 percent weight to 8 percent of market deposits. this thrift's deposits in a recent proposal. Texas Regional Bancshares, 32. One of the thrifts is the largest thrift in the market and has a Inc., 85 Federal Reserve Bulletin 683, 684 (1999). 14-percent ratio of commercial and industrial loans to assets. The 35. From 1990 to 2000, employment in the Victoria MSA increased other thrift has exhibited rapid growth in this ratio and has greatly approximately 20.2 percent compared with an average of 18.8 percent expanded its commercial lending business. for all Texas MSAs. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

108 Federal Reserve Bulletin • February 2002 exceeded the average for all Texas MSAs and for the entire the communities to be served by the organizations resultstate.36 ing from this proposal. Two community groups submitted comments opposing C. Views of Other Agencies and Conclusion the proposal and expressing concerns about the record of Wells Fargo in meeting the convenience and needs of the The Department of Justice also has conducted a detailed communities it serves. One of the commenters criticized review of the anticipated competitive effects of the pro- Wells Fargo's record of home mortgage lending to LMI posal. The Department has advised the Board that, in light and minority borrowers and in LMI and predominantly of the proposed divestitures, the Department believes that minority communities in the Minneapolis-St. Paul MSA. consummation of the proposal is not likely to have a This commenter also expressed concerns that the proposal significantly adverse effect on competition in any relevant would result in the loss of Marquette Bank's community banking market. The Office of the Comptroller of the development programs in this metropolitan area.38 Based Currency ("OCC") and the Federal Deposit Insurance on data submitted under the Home Mortgage Disclosure Corporation ("FDIC") have been afforded an opportunity Act ("HMDA"),39 the two commenters also alleged that to comment and have not objected to consummation of the Wells Fargo engaged in disparate treatment of minority proposal. applicants in certain markets with respect to home mort- After carefully reviewing all the facts of record, includ- gage loans. In addition, one of the commenters expressed ing public comments on the competitive factors, and for concern about the potential closure of branches and fourreasons discussed in this order, the Board has concluded teen commenters expressed concern about the loss of a that consummation of the proposal is not likely to result in particular branch of Marquette Bank in an LMI neighbora significantly adverse effect on competition or on the hood of Minneapolis.40 concentration of banking resources in any of the twenty banking markets in which Wells Fargo and the Texas A. CRA Performance Evaluations Financial Banks or Marquette Banks compete directly or in any other relevant banking market. Accordingly, based on As provided in the CRA, the Board has evaluated the all the facts of record and subject to completion of the convenience and needs factor in light of examinations by proposed divestitures, the Board has determined that com- the appropriate federal supervisors of the CRA perforpetitive factors are consistent with approval of the pro- mance records of the relevant insured depository instituposal. tions. An institution's most recent CRA performance evaluation is a particularly important consideration in the Convenience and Needs Considerations applications process because it represents a detailed, onsite evaluation of the institution's overall record of perfor- In acting on a proposal under section 3 of the BHC Act, the mance under the CRA by its appropriate federal supervi- Board is required to consider the effects of the proposal on sor.41 the convenience and needs of the communities to be served All the subsidiary banks of Wells Fargo received either and to take into account the records of the relevant insured "outstanding" or "satisfactory" ratings at their most redepository institutions under the Community Reinvestment cent CRA performance evaluations.42 In particular, Wells Act ("CRA").37 The CRA requires the federal financial Fargo's lead bank, Wells Fargo Bank, N.A., San Francisco, supervisory agencies to encourage financial institutions to California ("WF Bank"), which accounts for approxihelp meet the credit needs of local communities in which mately 43 percent of the total consolidated assets of Wells they operate, consistent with safe and sound operation, and requires the appropriate federal financial supervisory 38. In addition, the commenter also alleged that Wells Fargo has agency to take into account an institution's record of committed a smaller percentage of its resources to community develmeeting the credit needs of its entire community, including opment lending than other lenders in the Minneapolis-St. Paul MSA. low- and moderate-income ("LMI") neighborhoods, in 39. 12 U.S.C. § 2801 et seq. evaluating bank expansionary proposals. The Board has 40. Twenty commenters also expressed general concern about the carefully considered the convenience and needs factor and loss of Marquette's subsidiary banks in Minneapolis and Chamberlain. Several of these commenters also expressed concern that the the CRA performance records of the subsidiary depository proposal might result in the loss of jobs in Chamberlain. The factors institutions of Wells Fargo, Texas Financial, and Marquette that the Board can consider when reviewing an application or notice in light of all the facts of record, including public com- are limited by applicable law. The effect of a proposed transaction on ments received on the effect the proposal would have on employment in a community is not among the factors included in the acts administered by the Board. Moreover, the convenience and needs factor has been consistently interpreted by the federal financial supervisory agencies, the courts, and Congress to relate to the effects of a proposal on the availability and quality of banking services in the 36. In 2000, deposits per banking office and deposits per capita for community. See Wells Fargo & Company, 82 Federal Reserve Bullethe Victoria MSA totaled $71 million and $10,127, respectively, tin 455, 457 (1996). compared with an average of $53 million and $8,479, respectively, for 41. See Interagency Questions and Answers Regarding Community all MSAs in Texas and $49 million and $8,705, respectively, for the Reinvestment, 66 Federal Register 36,620 and 36,639 (2001). entire state. 42. See Appendix D for the CRA ratings of the subsidiary banks of 37. 12 U.S.C. § 2901 et seq. Wells Fargo. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 109 Fargo, received an "outstanding" rating at its most recent Texas Financial Banks and Marquette Banks or offer a CRA performance evaluation by the OCC, as of June 8, comparable product or program of Wells Fargo to ensure 1998. In addition, Wells Fargo Bank Minnesota, National that community banking needs are met in a manner consis- Association, Minneapolis, Minnesota ("WFB-MN"), re- tent with safe and sound lending, market demand, and local ceived an "outstanding" rating at its most recent CRA community credit needs. performance examination by the OCC, as of October 17, WF Bank. WF Bank received an examination rating of 1996.43 WF Bank and WFB-MN represent 58 percent of "outstanding" under the lending test in its most recent Wells Fargo's total consolidated assets. Each of the subsid- CRA performance evaluation. Examiners reported that iary banks of Texas Financial and Marquette to be acquired WF Bank's lending record during the review period demby Wells Fargo also received either "outstanding" or "sat- onstrated good penetration in LMI communities and among isfactory" ratings at their most recent CRA performance LMI borrowers in its assessment areas.45 In the aggregate, examinations.44 Examiners found no evidence of prohib- the bank made 25 percent by number and 27 percent by ited discrimination or other illegal credit practices at any of dollar volume amount of its residential mortgage, small the insured depository institutions involved in this proposal business, and community development loans in LMI and found no violations of the substantive provisions of the census tracts. WF Bank originated 36 percent of all its fair lending laws. residential mortgage loans, totaling $240 million, to LMI The Board has carefully reviewed the most recent CRA borrowers. performance examinations of each of the subsidiary banks Examiners noted that WF Bank had adopted a business of Wells Fargo, including those in Minnesota, Texas, strategy that concentrated on small business lending and New Mexico, Iowa, and Wisconsin, where the banks Wells de-emphasized residential lending 46 Since the last CRA Fargo proposes to acquire are located. In addition, the performance evaluation, Wells Fargo has increased its resi- Board has consulted with the OCC and has considered dential mortgage lending activity overall in WF Bank's confidential supervisory information on the CRA perfor- assessment areas. For example, in 1998 Wells Fargo's mance and fair lending records of Wells Fargo's subsidiary home mortgage lending in California totaled approxibanks since their last CRA performance examinations. The mately $5.2 billion and, by 2000, this amount had in- Board has considered the policies, practices, and data and creased to more than $11 billion.47 confidential supervisory information on the fair lending Through its mortgage subsidiary, WFHM, WF Bank record of Wells Fargo's affiliates, including its primary currently offers a number of affordable mortgage loan mortgage affiliate, Wells Fargo Home Mortgage, Inc., products designed to assist LMI borrowers and communi- Des Moines, Iowa ("WFHM"). WFHM is a wholly owned ties throughout its assessment areas, including loans guarsubsidiary of WFB-MN. anteed or sponsored by government agencies or government-sponsored enterprises, loans sponsored by var- B. CRA Performance Record of Wells Fargo ious state or local government agencies, and some proprietary loan products 48 Wells Fargo stated that, during 1999 In light of the relative size of WF Bank in Wells Fargo's through the third quarter of 2001, WFHM's funding of banking organization and the comments expressing con- such loan products and programs in California totaled cerns about the CRA performance of WFB-MN in Minne- approximately $1.6 billion. Wells Fargo also stated that, apolis, the discussion of Wells Fargo's CRA performance during this time period, its total home purchase lending to record below focuses on these two banks. In addition to LMI individuals and in LMI census tracts in California CRA evaluation reports, the Board has reviewed substan- totaled more than $2.7 billion and $2.5 billion, respectial information submitted by Wells Fargo concerning the tively. CRA performance of WF Bank and WFB-MN since their Examiners particularly commended the small business last performance evaluations. lending record of WF Bank and noted that its innovative Wells Fargo stated that the banks to be acquired would adopt Wells Fargo's community banking approach in evaluating and addressing credit needs and implementing their 45. The review period for WF Bank's CRA evaluation was Janu- CRA-related activities. Wells Fargo explained that this ary 1, 1996, through March 31, 1998. During the review period, WF Bank's assessment areas included Arizona, California, Colorado, approach recognizes local decisionmaking and outreach to Idaho, Nevada, New Mexico, Oregon, Utah, Washington, the all segments of its subsidiary banks' communities, includ- Las Vegas-Mohave Multistate MSA, and the Portland-Vancouver ing LMI neighborhoods. In addition, Wells Fargo stated Multistate MSA. Since this last CRA performance evaluation, Wells that it intends to continue to offer many of the lending and Fargo generally has reorganized its subsidiary banks into separate community development products and programs of the statewide charters, resulting in assessment areas for WF Bank that currently include California and several MS As outside California. 46. During the review period, the bank's residential lending in California decreased by $2.2 billion, while its small business lending 43. Norwest Bank Minnesota, National Association, Minneapolis, in the state increased by $2.7 billion. Minnesota, was renamed "Wells Fargo Bank of Minnesota, National 47. This summary of recent home mortgage lending volume is Association" on July 8, 2000, after the merger of Wells Fargo and based on data provided by Wells Fargo. Norwest Corporation, all in Minneapolis. 48. WFHM (formerly Norwest Mortgage, Inc.) offers housing- 44. See Appendix E for the CRA ratings for the Texas Financial related loan products and programs through the retail network of all Banks and Marquette Banks. Wells Fargo's subsidiary banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

110 Federal Reserve Bulletin • February 2002 underwriting of small business loans enabled the bank to WF Bank received a rating of "high satisfactory" for its penetrate most segments of the small business community retail banking services in its last CRA performance evaluain its assessment areas. Examiners commended WF Bank tion. Examiners stated that WF Bank's service delivery for developing new loan products, including a low- systems were reasonably accessible to individuals of differdocumentation small business loan, and marketing pro- ent income levels and often were in popular shopping areas grams focused on underserved groups of small business that were accessible by public transportation. In addition, customers, including small businesses owned by women examiners reported that the bank maintained branch hours and minorities. During the review period, WF Bank origi- that were reasonable and convenient to LMI communities nated small business loans totaling $9.3 billion, of which and individuals. Examiners also noted that WF Bank main- 92 percent were in amounts less than $100,000 and tained alternative delivery systems, including 24-hour tele- 26 percent were made to businesses in LMI census tracts.49 phone banking, internet banking, and banking by mail. Since the last CRA performance evaluation, Wells Fargo WF Bank has continued to offer products and services has continued its high level of small business lending. such as no-fee checking accounts for individuals, ATM- Wells Fargo stated that WF Bank made small business based international remittance services, and home mortloans totaling more than $2.5 billion to businesses in LMI gage loan centers in LMI communities. To increase its census tracts in California during 1998 through the third banking services in Hispanic communities, Wells Fargo quarter of 2001. This represented approximately 30 percent began in 2001 to accept the Mexican government's Maof the bank's total dollar amount of small business loans in tricula Consular Card (the Certificate of Consular Registrathe state during this time period. tion) as an acceptable form of primary identification for Examiners commended WF Bank for its excellent level opening new banking accounts and conducting over-theof community development lending during the review pe- counter transactions at its retail branches.51 riod, noting that the bank provided community develop- WFB-MN. As noted above, WFB-MN received an "outment loans totaling $651 million in its assessment area. In standing" rating for CRA performance in its most recent California, WF Bank originated approximately 100 com- evaluation. Examiners commended WFB-MN for offering munity development loans, totaling $469 million, includ- and originating a comprehensive array of loan products to ing 64 loans to affordable housing projects to build more meet community credit needs.52 Examiners reported that than 4,300 LMI housing units. the bank and WFHM were the leading originators of WF Bank has maintained a high level of community HMDA-reportable loans in LMI census tracts and to LMI development lending since its most recent CRA evaluation. borrowers in the Minneapolis-St. Paul MSA during the Wells Fargo stated that it made community development review period.53 Since the last CRA performance evalualoans totaling almost $1.3 billion in California during 1998 tion, WFB-MN has continued a high level of home mortthrough the third quarter of 2001. gage lending particularly to LMI borrowers. Wells Fargo WF Bank received an "outstanding" rating for invest- stated that, during 1997 through the third quarter of 2001, ment activities in its last CRA performance evaluation. its home mortgage loans in the Minneapolis-St. Paul MSA Examiners noted that, for many community development totaled more than $20 billion, of which approximately projects in California, WF Bank was either the first, the 24 percent were to LMI borrowers. largest, or the only investor. WF Bank funded more than Examiners particularly noted that WFB-MN offered flex- 6,500 housing units for LMI households through affordable ible real estate credit terms and conditions to LMI individhousing investments. Examiners reported that the bank uals through its Community Homeownership Program invested almost $26 million in regional and national orga- ("CHOP"). During 1994 and 1995, WFB-MN provided nizations addressing affordable housing and small business purchase money CHOP loans totaling $51 million in the credit needs in the bank's assessment areas. In addition, Minneapolis-St. Paul MSA, as well as down payment WF Bank contributed more than $21 million to assistance to 257 applicants. government-subsidized programs, nonprofit developers, and social service groups. Since the last CRA performance evaluation, Wells Fargo has maintained a high level of CRA investment activity. subsidiary banks. This CDC focuses particularly on affordable housing initiatives. In addition, the Wells Fargo Housing Foundation, Wells Fargo stated that it currently maintains an which is a division of WFHM, provides contributions to local housing $855 million portfolio of CRA-qualified investments and organizations that create affordable housing opportunities for LMI that it made CRA-qualified investments and grants totaling families. more than $262 million in California during 1998 through 51. The Mexican government issues the Matricula Consular card to the third quarter of 2001.50 Mexican nationals through its consular representatives in local offices throughout the United States. 52. A commenter expressed concern about the loss of Marquette Bank in Minneapolis, alleging that Marquette's record of home mort- 49. In this context, "small business loans" means loans in amounts gage lending to LMI and minority individuals and in LMI and less than $1 million. WF Bank also made 33 percent of its small predominantly minority census tracts in the Minneapolis-St. Paul business loans to businesses with gross annual revenues less than MSA is better than that of Wells Fargo. $1 million. 53. The review period for this CRA performance evaluation of 50. Wells Fargo has a community development corporation WFB-MN was 1994 and 1995. The evaluation included the lending of ("CDC") that makes CRA-qualified investments for all Wells Fargo's Norwest Mortgage, Inc., the predecessor of WFHM. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 111 In Minnesota, WFB-MN currently offers affordable in loans sponsored by FHA, VA, and other government mortgage loan products through its Community Homeown- agencies in the Minneapolis-St. Paul MSA, of which more ership Affordable Mortgage Program ("CHAMP") and than 50 percent were made to LMI borrowers. Neighborhood CHAMP programs, which feature low down Examiners also commended WFB-MN for its small busipayments, a waiver of private mortgage insurance require- ness lending performance, particularly for actively particiments, and flexible underwriting criteria that include lib- pating in government-related lending programs for small eral consideration of the borrower's employment history businesses. During 1994 and 1995, WFB-MN made more and credit experience, and higher total debt-to-income ra- than $46 million Small Business Administration ("SBA") tios. Wells Fargo stated that, during 2000 through the third loans. quarter of 2001, WFB-MN made loans totaling $49 million Since the last CRA performance evaluation of in Minnesota through the CHAMP program. WFB-MN, Wells Fargo has continued its high level of WFB-MN also participates in the Minnesota Housing small business lending in Minnesota. Wells Fargo stated Finance Agency ("MHFA") Purchase Mortgage Bond Pro- that it originated approximately $2 billion in total small grams that are designed for first-time LMI homebuyers and business loans in the Minneapolis-St. Paul MSA during feature below-market interest rates with conventional or 1997 through the third quarter of 2001. Wells Fargo was Federal Housing Authority ("FHA") underwriting guide- the largest SBA lender in both the number and dollar lines, and in MHFA's related Homeowner's Assistance amount of loans in Minnesota during fiscal year 2001. Fund Programs ("HAF") that provide financial assistance Examiners commended WFB-MN for actively particito borrowers under the agency's Purchase Mortgage Bond pating in community development and redevelopment pro- Programs.54 In addition, WFB-MN participates in the grams and providing leadership, technical expertise, and MHFA's Community Fix-Up Fund Program, a home im- financial support for community development throughout provement bond program designed for LMI borrowers that its assessment area during the review period. Examples of offers flexible underwriting criteria such as 100 percent such community development activity included a $3.3 milloan-to-value ratios and high debt-to-income ratios.55 lion investment in low-income housing projects and a WFB-MN also participates in neighborhood revitalization $1.2 million loan for a senior citizen condominium project programs ("NRP") that provide low interest rate loans for in a LMI census tract in Minneapolis. improvements on multifamily and single-family residences Since the last CRA performance evaluation of in LMI neighborhoods in Minneapolis.56 WFB-MN, Wells Fargo has continued a high level of Examiners noted that WFHM was the leading originator community development lending and investment activity of government-related home mortgage loans, including in the Minneapolis-St. Paul MSA and elsewhere in Minnethrough programs sponsored by the FHA, the Department sota. Wells Fargo stated that, during 2000 through the third of Veterans Affairs ("VA"), and the Farmers Home Admin- quarter of 2001, it made community development loans istration.57 During 1994 and 1995, WFHM originated al- totaling almost $34 million in the Minneapolis-St. Paul most 5,900 such loans, totaling approximately $492 mil- MSA and CRA-qualified investments and grants totaling lion, in WFB-MN's assessment areas. more than $56 million in this MSA and elsewhere in Since the last CRA performance evaluation of Minnesota. WFB-MN, WFHM has continued to actively participate in Examiners reported that WFB-MN's banking offices these government-related home mortgage programs. Dur- were readily accessible to all segments of its delineated ing 1999 and 2000, WFHM originated more than $1 billion community. Examiners noted that many branch locations had Spanish-speaking staff, and that other locations had staff fluent in certain Asian and African languages. Exam- 54. Marquette Bank also participates in various Community Activ- iners indicated that WFB-MN management regularly reity Set Aside ("CASA") Programs of the MHFA in Minneapolis and viewed service delivery and branch hours to ensure that other communities in Minnesota. Wells Fargo stated that it intends to local needs were met. honor any existing CASA Program commitments of Marquette Bank and would continue to participate in any existing CASA and HAF programs in the bank's assessment areas. C. HMDA Data and Fair Lending Record 55. Wells Fargo stated that it plans to expand its participation in this program to include all Marquette Bank's assessment areas. The Board also has carefully considered Wells Fargo's 56. Wells Fargo stated that it intends to honor the NRP commitlending record in light of comments on HMDA data rements of Marquette Bank, and that it would continue the bank's participation in existing NRPs in its assessment areas. ported by its subsidiaries.58 The HMDA data for 1999 and 57. A commenter alleged that Wells Fargo provides minority homebuyers with a disproportionate number of FHA or other governmentbacked mortgage loans compared with the number of such loans it provides to nonminority homebuyers. The Board notes that such 58. A commenter alleged that Wells Fargo's 1999 and 2000 HMDA mortgage loan products provide many homebuyers with opportunities data in 12 MS As indicated that Wells Fargo disproportionately exfor lower lending costs, and that the CRA does not require banks to cluded and denied African-American and Hispanic applicants for provide any particular types of loan products or programs to meet the home mortgage loans. The commenter noted that Wells Fargo's denial credit needs of their communities. As previously noted, examiners rates for minority applicants were higher than the denial rates for found no evidence of prohibited discrimination or other illegal credit nonminority applicants and that those alleged disparities compared practices at any subsidiary banks of Wells Fargo and found no unfavorably with those of the aggregate lenders in the MSAs. Wells violation of substantive provisions of the fair lending laws. Fargo stated that, in each of these MSAs, Wells Fargo had a higher Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

112 Federal Reserve Bulletin • February 2002 2000 indicate that the percentage of Wells Fargo's housing- ance programs for all laws and regulations applicable to related loans to African-American and Hispanic borrowers their business, including fair lending compliance programs. and in predominantly minority census tracts generally was The Law Department of Wells Fargo provides oversight for comparable with or lagged that of the aggregate of lenders and guidance on these compliance programs, and a corpoin many of the markets reviewed. In addition, this HMDA rate fair lending committee comprised of senior manager data show that Wells Fargo's denial disparity ratios for representatives from Wells Fargo's banking and nonbank- African-American or Hispanic applicants generally were ing subsidiaries meets regularly to identify and provide comparable with or higher than the denial disparity ratios guidance on best practices for fair lending compliance for the aggregate of lenders with respect to the total throughout the company. Wells Fargo's subsidiary banks HMDA-reportable loans in these markets.59 and home mortgage lending subsidiaries, including Although the HMDA data reflect certain disparities in WFHM, provide fair lending training for their employees; the rates of loan applications, originations, and denials conduct self-assessments, audits, and periodic comparative among members of different racial groups, the data do not file analyses to verify compliance and consistent underwritindicate that Wells Fargo is excluding any segment of the ing practices; and generally provide second-review propopulation or geographic areas on a prohibited basis. The grams for credit applications designated for denial. Board nevertheless is concerned when the record of an Moreover, the Board has consulted with the OCC, the institution indicates disparities in lending and believes that primary federal supervisory agency of the Wells Fargo all banks are obligated to ensure that their lending practices subsidiary banks, concerning the banks' fair lending comare based on criteria to ensure not only safe and sound pliance records since their most recent compliance examilending, but also equal access to credit by creditworthy nations.61 The Board also has consulted with the FTC, applicants regardless of their race or income level. The HUD, and Department of Justice concerning the fair lend- Board recognizes, however, that HMDA data alone provide ing records of Wells Fargo's nonbank lending subsidiaries. an incomplete measure of an institution's lending in its In addition, the Board has considered the HMDA data in community because these data cover only a few categories light of Wells Fargo's overall lending and community of housing-related lending. HMDA data, moreover, pro- development activities, which show that the Wells Fargo vide only limited information about covered loans.60 subsidiary banks significantly assist in helping to meet the HMDA data, therefore, have limitations that make them an credit needs of their entire communities.62 The Board beinadequate basis, absent other information, for concluding that an institution has not assisted adequately in meeting its community's credit needs or has engaged in illegal lending 61. A commenter argued that racial disparities in Wells Fargo's discrimination. home mortgage lending record is evidenced by a pending lawsuit in a Because of the limitations of HMDA data, the Board has federal court in Texas alleging that WFHM violated the Fair Housing considered these data carefully in light of other informa- Act by providing an insufficient number of home loans in predomition, including examination reports that provide an on-site nantly African-American communities in Dallas and using of racial classifications and stereotypes on the mortgage company's internet evaluation of compliance by the Wells Fargo bank subsidsite. WFHM has denied all allegations of the complaint. Wells Fargo iaries with fair lending laws. Examiners found no evidence stated that the allegedly offensive content was on the internet site of an of prohibited discrimination or other substantive violations unaffiliated company that was linked to the WFHM's internet site, and of the fair lending laws at any subsidiary depository institu- that WFHM has removed the link. Wells Fargo also noted that it has expanded its internal policies and procedures for ensuring that nothing tion of Wells Fargo. on any internet site associated with a Wells Fargo entity has content The record also indicates that Wells Fargo has taken a that might be considered offensive. The Board has forwarded the number of affirmative steps to ensure compliance with fair comment to the OCC, the primary federal supervisory agency of lending laws. Each of Wells Fargo's business units, WF Bank. In addition, the Board has forwarded the comment to the whether those units are separate companies or line-of- Federal Trade Commission ("FTC"), the Department of Housing and Urban Development ("HUD"), and the Department of Justice, the business departments in a subsidiary bank or nonbanking agencies responsible for enforcing the compliance with fair lending subsidiary, develop and maintain comprehensive compli- laws of nondepository institutions. 62. Two commenters expressed concern about Wells Fargo's subprime mortgage lending activities, alleging that Wells Fargo enapproval rate and a lower denial rate for conventional home purchase gages in subprime mortgage lending without sufficient standards and loans to minorities than that of the aggregate of lenders in the MSAs. questioning whether Wells Fargo may be focusing on LMI or minority Loans made by the aggregate of lenders refers to all HMDA-reportable individuals for subprime loan products. Wells Fargo originates loans made in a given market by all lenders required to report under subprime mortgage loans through two business units of WFHM, joint HMDA. ventures in which WFHM has a direct or indirect ownership interest, 59. The denial disparity ratio compares the denial rate for minority Wells Fargo Financial, Inc. ("WFFI") and its subsidiaries, and Island loan applicants with that for nonminority applicants. Finance. As previously noted, WFHM is a wholly owned subsidiary 60. The data, for example, do not account for the possibility that an of WF Bank. WFFI and Island Finance are nonbanking subsidiaries of institution's outreach efforts may attract a larger proportion of margin- Wells Fargo. ally qualified applicants than other institutions attract and do not The Board notes that subprime lending is a permissible activity that provide a basis for an independent assessment of whether an applicant provides needed credit to consumers who have difficulty meeting who was denied credit was, in fact, creditworthy. Credit history conventional underwriting criteria. The Board, however, expects bank problems and excessive debt levels relative to income (reasons most holding companies and their affiliates to conduct their subprime lendfrequently cited for a credit denial) are not available from HMDA ing operations without any abusive lending practices. See Citigroup data. Inc., 87 Federal Reserve Bulletin 600 (2001). Wells Fargo has pro- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 113 lieves that, viewed in light of the entire record, the HMDA Board consulted with the OCC concerning the banks' data indicate that Wells Fargo's record of performance in records of opening and closing branches since their last helping to serve the needs of its communities is consistent CRA performance examinations. with approval of the proposal.63 The Board expects that the subsidiary banks of Wells Fargo will continue to use a satisfactory branch closing policy for any branch closings that might result from the D. Branch Closings proposed transaction. The Board also has considered that federal banking law provides a specific mechanism for Commenters expressed concern about the effect of possible addressing branch closings. Federal law requires an inbranch closings that might result from this proposal. Wells sured depository institution to provide notice to the public Fargo has provided the Board with its branch closing and to the appropriate federal supervisory agency before policy, and the Board has considered the public comments closing a branch.65 The Board also notes that the appropriabout potential branch closings in light of all the facts of ate federal supervisor for each of Wells Fargo's subsidiary record. The Board has considered carefully Wells Fargo's banks will, in the course of conducting CRA performance branch closing policy, its record of opening and closing examinations, continue to review the branch closing record branches, and its preliminary review of potential branch of these banks. closures after consummation of the proposal. Wells Fargo stated that it has not made final decisions on any branches E. Conclusion on Convenience and Needs that might be closed as a result of the proposed transaction. Considerations The Board has forwarded to Wells Fargo the comments expressing concern about the possible closure of branches, including a branch in an LMI community in Minneapolis. In reviewing the effect of the proposal on the convenience Wells Fargo stated that its policy on branch closures, and needs of the communities to be served, the Board has consolidations, and relocations will apply to any such carefully considered the entire record; all the information actions at the subsidiary banks of Wells Fargo, Texas provided by the commenters and Wells Fargo; evaluations Financial, and Marquette after consummation of the pro- of the performance of the subsidiary banks of Wells Fargo, posal. In addition, Wells Fargo stated that any decisions to Texas Financial, and Marquette under the CRA; and conficlose or consolidate branches will be made in accordance dential supervisory information.66 Based on all the facts of with the interagency policy statement on branch closings record and for reasons discussed above, the Board conand will be attentive to the need for financial services in cludes that considerations relating to the convenience and LMI communities to be served by the combined organiza- needs factor, including the CRA performance records of tion.64 the relevant depository institutions, are consistent with The most recent CRA examinations of Wells Fargo's approval. subsidiary banks indicated that the banks had satisfactory records of opening and closing branches. In addition, the vided information about the policies and procedures of its subprime lenders to help ensure compliance with fair lending and other con- 65. Section 42 of the Federal Deposit Insurance Act (12 U.S.C. sumer protection laws and regulations. In addition, Wells Fargo has § 183 lr-1), as implemented by the Joint Policy Statement Regarding provided information about steps that WFHM and WFFI and its Branch Closings, requires that a bank provide the public with at least subsidiaries take to ensure that applicants who qualify for conven- 30 days' notice and the appropriate federal supervisory agency with at tional loans are given the opportunity to apply for prime credit least 90 days' notice before the date of the proposed branch closing. products. The Board has forwarded the comments to the OCC, the The bank also is required to provide reasons and other supporting data primary federal supervisory agency of WF Bank, and to the FTC, for the closing, consistent with the institution's written policy for HUD, and the Department of Justice. The Board also has consulted branch closings. with these agencies. 66. A commenter also expressed concern that Wells Fargo offers 63. Two commenters also expressed concern about Wells Fargo's payday advance programs to its customers and provides credit faciliindirect support of unaffiliated subprime lenders. Wells Fargo and its ties to unaffiliated entities engaged in payday lending and check affiliates have provided lending warehouse credit facilities and com- cashing activities. Wells Fargo stated that Wells Fargo Bank Nevada, mercial loans to unaffiliated subprime lenders and acted as custodian, National Association, Las Vegas, Nevada ("WFB Nevada"), provides servicer, and trustee for securitized assets, warehouse lines of credit, an open-end credit product to its checking account customers who and whole loans issued or originated by subprime lenders. have monthly direct deposits into their accounts. Under this product, The Board has considered all the facts of record, including the customers may obtain an advance on their directly deposited monthly relationships of Wells Fargo and its affiliates with unaffiliated income, subject to certain limitations, other terms, and disclosures. In subprime lenders. Wells Fargo stated that neither it nor its affiliates addition, Wells Fargo noted that it has provided credit facilities to participate or play any role in the lending practices or credit review unaffiliated entities whose activities include payday lending. Wells processes of the unaffiliated subprime lenders. Wells Fargo also noted Fargo stated that it does not participate in the lending practices or that it requires the unaffiliated subprime lender or issuer to represent credit review processes of these unaffiliated entities, but customarily and warrant in an agreement that such unaffiliated entity has complied requires them to represent and warrant in an agreement that they have and will comply with all applicable laws in the conduct of its opera- complied and will continue to comply with all applicable laws in the tions. conduct of their business. The Board has forwarded the comment to 64. Joint Policy Statement Regarding Branch Closings (64 Federal the OCC, the primary federal supervisory agency of WFB Nevada, Register 34,844 (1999). and consulted with the OCC regarding this matter. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

114 Federal Reserve Bulletin • February 2002 Financial, Managerial, and Other Supervisory Factors Based on all the facts of record, including confidential reports of examination and other supervisory information Section 3 of the BHC Act requires the Board to consider received from the primary federal banking agency that the financial and managerial resources and future prospects supervises each institution, the Board has concluded that of the companies and banks involved in the proposal and considerations relating to the financial and managerial recertain other supervisory factors. The Board has carefully sources and future prospects of Wells Fargo, Texas Financonsidered these factors in light of all the facts of record, cial, and the subsidiary banks to be acquired by Wells including public comments, reports of examination, and Fargo are consistent with approval, as are the other superviother confidential supervisory information assessing the sory factors that the Board must consider under section 3 financial and managerial resources of the organizations and of the BHC Act. other information provided by Wells Fargo.67 In evaluating financial factors in expansion proposals by Nonbanking Activities banking organizations, the Board consistently has considered capital adequacy to be especially important. The proposed acquisition of Texas Financial, Delaware Financial, Wells Fargo also has filed a notice under sections 4(c)(8) and the Texas Financial Banks is structured as an exchange and 4(j) of the BHC Act to acquire Marquette Financial, a of shares of Wells Fargo for shares of Texas Financial. nonbanking subsidiary of Marquette that engages in invest- Wells Fargo would purchase all the outstanding common ment advisory and securities brokerage activities. The stock of the Marquette Banks and Marquette Financial Board has determined by regulation that the types of activfrom Marquette. Funds to acquire the outstanding common ities for which notice has been provided are closely related stock of the Marquette Banks and Marquette Financial to banking for purposes of section 4(c)(8) of the BHC Act would come from the issuance of short-term debt. The and, therefore, permissible for bank holding companies.69 Board notes that Wells Fargo and its subsidiary banks, Wells Fargo has committed to conduct these activities in Texas Financial, and each of the subsidiary banks to be accordance with the Board's regulations and orders govacquired by Wells Fargo are, and on consummation of the erning these activities for bank holding companies. proposal would continue to be, well capitalized, as defined To approve this notice, the Board also must determine in the relevant regulations of federal banking agencies. that the acquisition of Marquette Financial and the perfor- The Board also has considered the managerial resources mance of the proposed activities by Wells Fargo can reaof Wells Fargo and Texas Financial and the examination sonably be expected to produce benefits to the public that records of those organizations and the subsidiary deposi- outweigh possible adverse effects, such as undue concentory institutions to be acquired, including their risk man- tration of resources, decreased or unfair competition, conagement systems and other policies.68 The Board also has flicts of interests, or unsound banking practices.70 considered the plans of Wells Fargo to implement the Wells Fargo has indicated that the proposal would enable proposed acquisition, including its available managerial it, through its bank and nonbank subsidiaries, to provide resources. In addition, the Board has considered that Wells Marquette Financial customers with access to many prod- Fargo recently acquired other bank holding companies and ucts and services, including commercial retail banking, that Wells Fargo's management successfully integrated the mortgage banking, investment banking, insurance agency, acquired institutions into its existing operations. venture capital, consumer finance, trust, international trade finance leasing, and asset-backed lending products and programs that Marquette Financial currently does not offer. Furthermore, customers of Marquette Financial would have 67. A commenter criticized Wells Fargo for lobbying against state an expanded service area, with numerous offices and and local efforts to enact antipredatory lending laws and ordinances. branches nationwide. The Board notes that this commenter's contention does not allege any The Board has carefully considered the competitive efillegal activity or other action that would affect the safety and soundness of the institutions. This matter also is outside the limited statutory fects of the proposed transaction under section 4 of the factors that the Board is authorized to consider when reviewing an BHC Act. To the extent that Wells Fargo and Marquette application under the BHC Act. See Western Bancshares, Inc. v. Board Financial offer different types of nonbanking products or of Governors, 480 F.2d 749 (10th Cir. 1973). services, the proposal would result in no loss of competi- 68. A commenter cited press reports of two lawsuits filed against tion. Marquette Financial and certain nonbanking subsid- WF Bank alleging prohibited discrimination in the refusal by a bank teller to cash a check presented by a minority individual and failure to iaries of Wells Fargo, however, compete in some areas for accommodate a branch employee's disability. The commenter also certain investment advisory and securities brokerage prodnoted a press report of a lawsuit filed by Mexican laborers who ucts or services. The markets for these nonbanking activiworked in the United States during the 1940s under a joint program of ties are regional or national and are unconcentrated. The the American and Mexican governments under which a portion of the laborers' wages were withheld and made available on their return to record in this case also indicates that there are numerous Mexico. The lawsuit claims that some laborers did not receive their providers of these services. Based on all the facts of record, withheld wages when they returned to Mexico and names the United States, Mexico, Wells Fargo, and three banks in Mexico as defendants. WF Bank has denied all the allegations in each of these lawsuits, and there has been no finding by a court that the bank has 69. See 12 C.F.R. 225.28(b)(6), and (7). violated any laws in connection with these matters. 70. See 12 U.S.C. § 1843(j)(2)(A). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 115 the Board concludes that consummation of the proposal require such modification or termination of the activities of would have a de minimis elfect on competition for the a bank holding company or any of its subsidiaries as the relevant nonbanking activities. Board finds necessary to ensure compliance with, and to The Board also concludes that the conduct of the pro- prevent evasion of, the provisions of the BHC Act and the posed nonbanking activities within the framework estab- Board's regulations and orders issued thereunder. These lished in this order and Regulation Y is not likely to result commitments are deemed to be conditions imposed in in adverse effects, such as undue concentration of re- writing by the Board in connection with its findings and sources, decreased or unfair competition, conflicts of inter- decision and, as such, may be enforced in proceedings ests, or unsound banking practices, that would not be under applicable law. outweighed by the public benefits of the proposal, such as The acquisition of the Texas Financial Banks and Marincreased customer convenience and gains in efficiency. quette Banks may not be consummated before the fifteenth Accordingly, based on all the facts of record, the Board has calendar day after the effective date of this order, and the determined that the balance of public interest factors that it proposal may not be consummated later than three months must consider under the standard of section 4(j) of the after the effective date of this order, unless such period is BHC Act is favorable and consistent with approval of the extended for good cause by the Board or the Federal proposal. Reserve Bank of San Francisco, acting pursuant to delegated authority. By order of the Board of Governors, effective Decem- Conclusion ber 20, 2001. Based on the foregoing and all the facts of record, the Voting for this action: Chairman Greenspan, Vice Chairman Fergu- Board has determined that the proposed transaction should son, and Governors Kelley, Meyer, Gramlich, Bies, and Olson. be, and hereby is approved.71 In reaching its conclusion, the Board has considered all the facts of record in light of ROBERT DEV. FRIERSON Deputy Secretary of the Board the factors that it is required to consider under the BHC Act and other applicable statutes. The Board's approval is specifically conditioned on compliance by Wells Fargo with all commitments made in connection with the applica- Appendix A tion and notice, including the divestiture commitments discussed in this order. The Board's approval of the non- Banking Markets in which Wells Fargo Competes banking aspects of the proposal also is subject to all the Directly with the Texas Financial Banks or Marquette conditions set forth in Regulation Y, including those in Banks sections 225.7 and 225.25(c) of Regulation Y (12 C.F.R. 225.7 and 225.25(c)), and to the Board's authority to A. Iowa Banking Markets Cedar Rapids Linn County; and Jefferson Township in 71. A commenter requested that the Board hold a public meeting or Johnson County. hearing on the proposal. Section 3(b) of the BHC Act does not require the Board to hold a public hearing on an application unless the appropriate supervisory authority for the banks to be acquired, makes a timely written recommendation of denial of the application. The B. Minnesota Banking Markets Board has not received such a recommendation from the appropriate supervisory authorities. Under its rule, the Board also may, in its discretion, hold a public Hutchinson McLeod County, excluding Round Grove meeting or hearing on an application to acquire a bank if a meeting or and Penn Townships; and Brookfield, hearing is necessary or appropriate to clarify factual issues related to Boon Lake, Hector, and Preston Lake the application and to provide an opportunity for testimony. 12 C.F.R. Townships in Renville County. 225.16(e). Section 4 of the BHC Act and the Board's rule thereunder provide for a hearing on a notice to acquire nonbanking companies if Litchfield Meeker County; and Wright County, exthere are disputed issues of material fact that cannot be resolved in cluding Monticello, Ostego, Buffalo, some other manner. 12 U.S.C. § 1843(c)(8); 12 C.F.R. 225.25(a)(2). Frankfort, Rockford, and Franklin Town- The Board has considered carefully the commenter's request in light ships. of all the facts of record. In the Board's view, commenters have had ample opportunity to submit their views, and they submitted written Rochester Olmsted and Fillmore Counties; Wanacomments that have been considered carefully by the Board in acting migo, Minneola, Zumbrota, Cherry on the proposal. The commenter's request fails to demonstrate why its written comments do not present its evidence adequately and fails to Grove, Roscoe, and Pine Island Townidentify disputed issues of fact that are material to the Board's ships in Goodhue County; Wabasha decision that would be clarified by a public meeting or hearing. For County, excluding Mount Pleasant, Lake, these reasons, and based on all the facts of record, the Board has Pepin, Glasgow, Greenfield, Watopa, and determined that a public meeting or hearing is not required or warranted in this case. Accordingly, the request for a public meeting or Minneiska Townships and the City of hearing on the proposal is denied. Wabasha; Dodge County, excluding Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

116 Federal Reserve Bulletin • February 2002 Ellington, Claremon, Ripley, and West- Watertown Roberts, Clark, Codington, Grant, Hamfield Townships. lin, and Deuel Counties, South Dakota; Traverse and Big Stone Counties, in Min- C. Banking Markets in Minnesota and Wisconsin nesota; and Lac qui Parle County, Minnesota, excluding Riverside, Baxter, Camp Minneapolis- Release, Maxwell, and Ten Mile Lake St. Paul Anoka, Hennepin, Ramsey, Washington, Townships. Carver, Scott, and Dakota Counties; Lent, Chisago Lake, Shafer, Wyoming, and G. Banking Markets in South Dakota and Nebraska Franconia Townships in Chisago County; Blue Hill, Baldwin, Orrock, Livonia, and Big Lake Townships and the City of Elk Yankton Bon Homme and Yankton Counties, River in Sherburne County; Monticello, South Dakota; Knox County, Nebraska; Otsego, Buffalo, Frankfort, Rockford, and and Cedar County, Nebraska, excluding Franklin Townships in Wright County; Precincts 19 and 20. Lanesburgh Township in Le Sueur County, all in Minnesota; and the Town of Hud- H. Banking Markets in South Dakota and North Dakota son in St. Croix County, Wisconsin. Red Wing Goodhue County, Minnesota, excluding Warsaw, Holden, Wanamingo, Minneola, Aberdeen McPherson, Edmunds, Faulk, Brown, Zumbrota, Kenyon, Cherry Grove, Spink, Marshall, and Day Counties, South Roscoe, and Pine Island Townships; Dakota; Albertha, Lorraine, Elm, Ellen- Mount Pleasant and Lake Townships in dale, Van Meter, and Ada Townships in Wabasha County, Minnesota; the Towns Dickey County, North Dakota. of Stockholm and Pepin in Pepin County, Wisconsin; and Pierce County, Wiscon- I. Texas Banking Markets sin, excluding the Towns of Clifton, River Falls, Martell, Gilman, and Spring Lake. Austin Austin MSA. D. New Mexico Banking Markets Dallas Dallas and Rockwall Counties; the southeastern quadrant of Denton County, in- Santa Fe Santa Fe Ranally Metro Area ("RMA"). cluding the communities of Denton and Lewisville; the southwestern quadrant of E. South Dakota Banking Markets Collin County, including the communities of McKinney and Piano; the communities Chamberlain Brule and Buffalo Counties; and the east- of Forney and Terrell in Kaufman ern half of Lyman County, including the County; the communities of Midlothian, communities of Kennebec and Lower Waxahachie, and Ferris in Ellis County, Brule. and the communities of Grapevine and Huron Hand, Beadle, Jerauld, and Sanborn Arlington in Tarrant County. Counties; Le Sueur, Spirit Lake, Iroquois, Fort Worth Johnson and Parker Counties; Tarrant Manchester, De Smet, Esmond, and Mat- County excluding the communities of Arthews Townships in Kingsbury County; lington and Grapevine; the communities Redstone, Carthage, Miner, Green Valley, of Boyd, Newark, and Rhome in Wise Clinton, Roswell, Beaver, and Rock County, and the southwestern quadrant of Creek Townships in Miner County. Denton County including the communities of Roanoke and Justin. F. Banking Markets in South Dakota and Minnesota Houston Houston RMA. Sioux Falls Moody, McCook, Minnehaha, Turner, Victoria Victoria MSA. and Lincoln Counties; Pleasant, Silver Lake, Wolf Creek, Grandview, Kassel, Washington Valley, Sweet, and Molan Townships in County Washington County. Hutchinson County; Star, Riverside, and Glenwood Townships in Clay County; J. Wisconsin Banking Markets Prairie, Elcester, and Virginia Townships in Union County, all in South Dakota; and Rock County in Minnesota. Milwaukee Milwaukee RMA. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 117 Appendix B 2000. Wells Fargo has committed to divest no less $50 million in deposit liabili- Banking Markets with Divestitures ties. After the proposed divestiture, Wells Fargo would operate the largest deposi- South Dakota tory institution in the market, controlling deposits of approximately $96.5 million, Chamberlain1 Wells Fargo operates the second largest representing approximately 20.6 percent depository institution in the market, of market deposits. The HHI would incontrolling deposits of approximately crease by not more than 411 points to $50.1 million, representing approximately 1787. At least eight commercial banking 39.8 percent of market deposits. Mar- organizations besides Wells Fargo would quette Bank is the largest depository insti- remain in the market. tution in the market, controlling deposits Watertown Wells Fargo operates the third largest of approximately $54 million, represent- depository institution in the market, coning approximately 42.8 percent of market trolling deposits of approximately deposits. Wells Fargo proposes to divest $138.5 million, representing approxithe two Marquette Bank branches in the mately 12 percent of market deposits. The market to an out-of-market competitor. Marquette Bank is the fourth largest These branches had deposits of $54 mil- depository institution in the market, lion as of June 30, 2000. Wells Fargo has controlling deposits of approximately committed to divest no less than $131.1 million, representing approxi- $41.5 million in deposit liabilities. After mately 11.4 percent of market deposits. the proposed divestiture, Wells Fargo Wells Fargo proposes to divest two would continue to operate the second branches in the market, with deposits of largest depository institution in the mar- $41.6 million. After the proposed divestiket, controlling deposits of $50.1 million, ture, Wells Fargo would continue to operrepresenting approximately 39.8 percent ate the second largest depository instituof market deposits. The HHI would re- tion in the market, controlling deposits of main unchanged at 3478. At least three $228 million, representing approximately other commercial banking organizations 19.8 percent of market deposits. The besides Wells Fargo would remain in the HHI would increase by not more than market. 225 points to 976. At least 24 commercial Huron Wells Fargo operates the second largest banking organizations besides Wells depository institution in the market, con- Fargo would remain in the market. trolling deposits of approximately $84 million, representing approximately Minnesota 17.9 percent of market deposits. Marquette Bank is the largest depository insti- Rochester Wells Fargo operates the largest depositution in the market, controlling deposits tory institution in the market, controlling of approximately $94.3 million, represent- deposits of approximately $416 million, ing approximately 20.1 percent of market representing approximately 21.6 percent deposits. Wells Fargo proposes to divest of market deposits. Marquette Bank is the two branches in the market to an out-of- third largest depository institution in the market competitor or an in-market com- market, controlling deposits of approxipetitor besides the banking organization mately $174.6 million, representing apthat currently has the third largest share of proximately 9.1 percent of market deposmarket deposits. These branches had de- its. Wells Fargo proposes to divest three posits of $81.8 million as of June 30, branches in the market, with deposits of $126.6 million. After the proposed divestiture, Wells Fargo would continue to op- 1. The designations for three banking markets have been amended erate the largest depository institution in to account for the formation of the Chamberlain banking market. the market, controlling deposits of ap- These markets are the Mitchell, Pierre, and Huron banking markets, proximately $464.1 million, representing all in South Dakota. The Mitchell market is now defined as Aurora, Davison, Hanson, Charles Mix, and Douglas Counties; and Hutchin- approximately 24.1 percent of market deson County, excluding Pleasant, Silver Lake, Wolf Creek, Grandview, posits. The HHI would increase by not Kassel, Valley, Sweet, and Molan Townships. The Pierre banking more than 197 points to 1014. At least 30 market is now defined as Sully, Hyde, Stanley, Hughes, and Jones other commercial banking organizations County; the southern half of Potter County; and the Western half of besides Wells Fargo would remain in the Lyman County, including Presho Township. The revised Huron banking market is described in Appendix A. market. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

118 Federal Reserve Bulletin • February 2002 Appendix C South Dakota/North Dakota Aberdeen Wells Fargo operates the largest deposi- Certain Banking Markets without Divestitures tory institution in the market, controlling deposits of approximately $226.3 million, Minnesota representing approximately 23 percent of market deposits. Marquette Bank is the fifteenth largest depository institution in Hutchinson Wells Fargo operates the tenth largest dethe market, controlling deposits of appository institution in the market, conproximately $17 million, representing aptrolling deposits of approximately proximately 1.7 percent of market depos- $12.2 million, representing approximately its. On consummation of the proposal, 2.2 percent of market deposits. Marquette Wells Fargo would continue to operate Bank is the fifth largest depository instituthe largest depository institution in the tion in the market, controlling deposits of market, controlling deposits of approxiapproximately $41.2 million, representing mately $243.3 million, representing apapproximately 7.4 percent of market deproximately 24.7 percent of market posits. On consummation of the proposal, deposits. The HHI would increase by Wells Fargo would operate the fifth larg- 80 points to 1199. est depository institution in the market, controlling deposits of approximately South Dakota/Minnesota $53.4 million, representing approximately 9.6 percent of market deposits. The HHI would increase by 32 points to 1500. Sioux Falls Wells Fargo operates the second largest depository institution in the market, con- Litchfield Wells Fargo operates the fifth largest de- trolling deposits of approximately pository institution in the market, control- $582.1 million, representing approxiling deposits of approximately $41.4 mately 10.9 percent of market deposits. million, representing approximately One of the Marquette Banks is the tenth 9.1 percent of market deposits. Marquette largest depository institution in the mar- Bank is the twelfth largest depository in- ket, controlling deposits of approximately stitution in the market, controlling depos- $104.8 million, representing approxiits of approximately $14.5 million, repre- mately 2 percent of market deposits. On senting approximately 3.2 percent of consummation of the proposal, Wells market deposits. On consummation of the Fargo would continue to operate the secproposal, Wells Fargo would operate ond largest depository institution in the the third largest depository institution in market, controlling deposits of approxithe market, controlling deposits of ap- mately $686.9 million, representing proximately $55.9 million, representing approximately 12.9 percent of market approximately 12.3 percent of market deposits. The HHI would increase by deposits. The HHI would increase by 88 points to 871. 57 points to 1032. Red Wing Wells Fargo operates the second largest South Dakota/Nebraska depository institution in the market, controlling deposits of approximately Yankton Wells Fargo operates the ninth largest $93.9 million, representing approximately depository institution in the market, con- 13.6 percent of market deposits. Mar- trolling deposits of approximately quette Bank is the seventh largest deposi- $26.4 million, representing approximately tory institution in the market, controlling 3.2 percent of market deposits. Marquette deposits of approximately $30.9 million, Bank is the sixteenth largest depository representing approximately 4.5 percent of institution in the market, controlling demarket deposits. On consummation of the posits of approximately $10 million, repproposal, Wells Fargo would continue to resenting approximately 1.2 percent of operate the second largest depository in- market deposits. On consummation of the stitution in the market, controlling depos- proposal, Wells Fargo would operate the its of approximately $124.8 million, rep- seventh largest depository institution in resenting approximately 18.1 percent of the market, controlling deposits of apmarket deposits. The HHI would increase proximately $36.4 million, representing by 123 points to 1384. approximately 4.4 percent of market de- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 119 posits. The HHI would increase by $369.6 million, representing approxi- 8 points to 1250. mately 3.6 percent of market deposits. On consummation of the proposal, Wells Texas Fargo would operate the second largest depository institution in the market, Austin Wells Fargo operates the second largest controlling deposits of approximately depository institution in the market, con- $1.8 billion, representing approximately trolling deposits of approximately 17.4 percent of market deposits. The HHI $1.6 billion, representing approximately would increase by 99 points to 1002. 15.7 percent of market deposits. Texas Houston Wells Fargo operates the third largest de- Financial operates the eighteenth largest pository institution in the market, controldepository institution in the market, ling deposits of approximately $4.6 bilcontrolling deposits of approximately lion, representing approximately $66.9 million, representing less than 10.3 percent of market deposits. Texas 1 percent of market deposits. On consum- Financial operates the twenty-sixth largmation of the proposal, Wells Fargo est depository institution in the market, would continue to operate the second controlling deposits of approximately largest depository institution in the mar- $194 million, representing less than 1 perket, controlling deposits of approximately cent of market deposits. On consumma- $1.6 billion, representing approximately tion of the proposal, Wells Fargo would 16.4 percent of market deposits. The HHI continue to operate the third largest dewould increase by 21 points to 1140. pository institution in the market, control- Dallas Wells Fargo operates the seventh largest ling deposits of approximately $4.8 bildepository institution in the market, lion, representing approximately controlling deposits of approximately 10.7 percent of market deposits. The HHI $938.6 million, representing approxi- would increase by 9 points to 897. mately 2.3 percent of market deposits. Texas Financial operates the eighth larg- Wisconsin est depository institution in the market, controlling deposits of approximately $808.5 million, representing approxi- Milwaukee Wells Fargo operates the eighth largest mately 2 percent of market deposits. On depository institution in the market, consummation of the proposal, Wells controlling deposits of approximately Fargo would operate the sixth largest $487.8 million, representing approxidepository institution in the market, mately 1.9 percent of market deposits. controlling deposits of approximately One of the Marquette Banks is the forty- $1.7 billion, representing approximately eighth largest depository institution in the 4.3 percent of market deposits. The HHI market, controlling deposits of approxiwould increase by 9 points to 1197. mately $16 million, representing less than Fort Worth Wells Fargo operates the third largest de- 1 percent of market deposits. On consumpository institution in the market, control- mation of the proposal, Wells Fargo ling deposits of approximately $1.4 bil- would continue to operate the eighth larglion, representing approximately est depository institution in the market, 13.8 percent of market deposits. Texas controlling deposits of approximately $503.8 million, representing approxi- Financial operates the eighth largest mately 2 percent of market deposits. The depository institution in the market, HHI would remain unchanged at 1340. controlling deposits of approximately Appendix D CRA Performance Evaluations of Wells Fargo Subsidiary Bank CRA Rating Date Supervisor Wells Fargo 1. Wells Fargo Bank, N.A., Outstanding June 1998 OCC San Francisco, California Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

120 Federal Reserve Bulletin • February 2002 Appendix D—Continued Subsidiary Bank CRA Rating Date Supervisor 2. Wells Fargo Bank Alaska, N.A. Outstanding March 1999 OCC Anchorage, Alaska (formerly National Bank of Alaska) 3. Wells Fargo Bank Satisfactory August 1999 OCC Arizona, N.A., Phoenix, Arizona (formerly Norwest Bank Arizona, N.A.) 4. Wells Fargo Financial Bank, Outstanding June 1999 OCC Sioux Falls, South Dakota (formerly Dial Bank) Wells Fargo Financial Outstanding March 1997 OCC National Bank, N.A., Las Vegas, Nevada (formerly Dial National Bank, Des Moines, Iowa) 6. Wells Fargo Bank Satisfactory May 1997 OCC Illinois, N.A., Galesburg, Illinois (formerly Norwest Bank Illinois, N.A.) 7. Wells Fargo Bank Outstanding June 2000 OCC Indiana, N.A., Fort Wayne, Indiana (formerly Norwest Bank Indiana, N.A.) Wells Fargo Bank Iowa, N.A., Outstanding July 1996 OCC Des Moines, Iowa (formerly Norwest Bank Iowa, N.A.) 9. Wells Fargo Bank Outstanding April 1999 OCC Michigan, N.A., Marquette, Michigan (formerly MFC First National Bank) 10. Wells Fargo Bank Outstanding October 1996 OCC Minnesota, N.A., Minneapolis, Minnesota (formerly Norwest Bank Minnesota, N.A.) 11. Wells Fargo Bank Outstanding October 1997 OCC Montana, N.A., Billings, Montana (formerly Norwest Bank Montana, N.A.) 12. Wells Fargo Bank Outstanding May 1996 OCC Nebraska, N.A., Omaha, Nebraska (formerly Norwest Bank Nebraska, N.A.) 13. Wells Fargo Bank Satisfactory August 1999 OCC Nevada, N.A., Las Vegas, Nevada (formerly Norwest Bank Nevada, N.A.) 14. Wells Fargo Bank Satisfactory September 1997 OCC New Mexico, N.A., Albuquerque, New Mexico Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 121 Appendix D—Continued Subsidiary Bank CRA Rating Date Supervisor (formerly Norwest Bank New Mexico, N.A.) 15. Wells Fargo Bank Outstanding September 1996 OCC North Dakota, N.A., Fargo, North Dakota (formerly Norwest Bank North Dakota, N.A.) 16. Wells Fargo Bank Outstanding May 1999 OCC Northwest, N.A., Ogden, Utah (formerly First Security Bank, N.A., Salt Lake City, Utah) 17. Wells Fargo Bank Ohio, N.A., Satisfactory February 1996 OCC Van Wert, Ohio (formerly Norwest Bank Ohio, N.A.) 18. Wells Fargo Bank Outstanding December 1996 OCC South Dakota, N.A., Sioux Falls, South Dakota (formerly Norwest Bank South Dakota, N.A.) 19. Wells Fargo Bank Texas, N.A., Satisfactory November 1999 OCC San Antonio, Texas 20. Wells Fargo Bank West, N.A., Satisfactory November 1999 OCC Denver, Colorado (formerly Norwest Bank Colorado, N.A.) 21. Wells Fargo Bank Outstanding November 1996 OCC Wisconsin, N.A., Milwaukee, Wisconsin (formerly Norwest Bank Wisconsin, N.A.) 22. Wells Fargo Bank Satisfactory October 1997 OCC Wyoming, N.A., Casper, Wyoming (formerly Norwest Bank Wyoming, N.A.) 23. Wells Fargo HSBC Satisfactory February 1996 OCC Trade Bank, N.A., San Francisco, California Appendix E CRA Performance Evaluations for the Marquette Banks and Texas Financial Banks Subsidiary Bank CRA Rating Date Supervisor Marquette 1. Marquette Bank, N.A., Satisfactory October 1999 OCC Rogers, Minnesota 2. Marquette Bank of Morrison, Outstanding August 1999 FDIC Morrison, Illinois 3. Marquette Capital Bank, N.A., Satisfactory October 1999 OCC Wayzata, Minnesota Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

122 Federal Reserve Bulletin • February 2002 Appendix E—Continued Subsidiary Bank CRA Rating Date Supervisor 4. Meridian Capital Bank, Outstanding December 1995 FDIC Milwaukee, Wisconsin (formerly State Bank of Edgar, Edgar, Wisconsin) 5. The First National Bank Satisfactory March 1998 OCC & Trust Co. of Baraboo, Baraboo, Wisconsin Texas Financial 1. First State Bank of Texas, Outstanding April 1999 FDIC Denton, Texas 2. First National Bank of Texas, Satisfactory July 1998 OCC Decatur, Texas 3. Bank of Santa Fe, Satisfactory February 1999 FDIC Santa Fe, New Mexico 4. Marquette Bank of Monmouth, Satisfactory March 1999 FDIC Monmouth, Illinois ORDERS ISSUED UNDER BANK MERGER ACT SunTrust Bank the factors set forth in the Bank Merger Act and section 9 Atlanta, Georgia of the FRA. SunTrust is the twelfth largest banking organization in Order Approving the Acquisition and Establishment of the United States, with $103 billion in total assets.2 Bank is Branches the third largest depository institution in Florida, controlling deposits of $20.9 billion, representing 10.1 percent of SunTrust Bank ("Bank"), a state member bank and a the total deposits in depository institutions in the state wholly owned subsidiary of SunTrust Banks, Inc., Atlanta, ("state deposits"). Huntington is the eighth largest deposi- Georgia ("SunTrust"), has applied under section 18(c) of tory institution in Florida, controlling deposits of the Federal Deposit Insurance Act (12 U.S.C. § 1828(c)) $4.3 billion, representing 2.1 percent of state deposits.3 ("Bank Merger Act") to acquire the Florida operations of Following consummation, Bank would remain the third The Huntington National Bank, Columbus, Ohio ("Hun- largest depository institution in Florida, controlling depostington").1 Bank also has applied under section 9 of the its of approximately $25.3 billion, representing 12.2 per- Federal Reserve Act (12 U.S.C. § 321) ("FRA") to estab- cent of state deposits. lish branches at the Florida locations of Huntington described in Appendix A. Interstate Analysis Notice of the transaction, affording interested persons an opportunity to submit comments, has been given in accor- Section 102 of the Riegle-Neal Interstate Banking and dance with the Bank Merger Act and the Board's Rules of Branching Efficiency Act of 1994 ("Riegle-Neal Act") Procedure (12 C.F.R. 262.3(b)). As required by the Bank authorizes a bank to merge with another bank under certain Merger Act, reports on the competitive effects of the conditions unless, before June 1, 1997, the home state of merger were requested from the United States Attorney one of the banks involved in the transaction adopted a law General and the other federal banking agencies. The time expressly prohibiting merger transactions involving out-offor filing comments has expired, and the Board has consid- state banks.4 For the purposes of the Riegle-Neal Act, the ered the application and all the facts of record in light of home state of Bank is Georgia, and the home state of the 1. The Florida operations of Huntington include 106 branches and 5 Private Client Services offices. Bank also is acquiring the deposits 2. Asset data are as of September 30, 2001. associated with Huntington's 35 supermarket branches in Florida, 3. In this context, depository institutions include commercial banks, although it would not establish branches or any other physical pres- savings banks, and savings associations. Deposit and market share ence at those locations. The deposits associated with the supermarket data are as of June 30, 2000, and have been adjusted to reflect mergers branches would be reassigned to the nearest branch of Bank after the and acquisitions that have occurred since that time. proposed transaction. 4. 12 U.S.C. § 1831u. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 123 Huntington branches is Florida.5 Florida and Georgia have ("HHI") under the Department of Justice Guidelines enacted legislation allowing interstate mergers between ("DOJ Guidelines"),11 the size and likely effect of the banks in their states and out-of-state banks pursuant to the proposed divestiture in relevant banking markets, and other provisions of the Riegle-Neal Act. Bank has provided a characteristics of the markets.12 copy of its Bank Merger Act application to all the relevant To reduce the possibility that the proposal would have state agencies. The proposal also complies with all the adverse effects on competition, Bank has committed to other requirements of the Riegle-Neal Act.6 Accordingly, divest seven branches, which account for approximately the Riegle-Neal Act authorizes the proposed transaction. $168 million in deposits, in three banking markets ("divestiture markets").13 After accounting for the proposed dives- Competitive Considerations titures, the proposal would be consistent with the DOJ Guidelines in all twelve banking markets in which Bank The Bank Merger Act prohibits the Board from approving and Huntington compete. an application if the proposal would result in a monopoly After consummation of the proposal in the markets withor would be in furtherance of any attempt to monopolize out divestitures, six banking markets would remain moderthe business of banking.7 The Bank Merger Act also pro- ately concentrated as measured by the HHI,14 and three hibits the Board from approving a proposal that would banking markets would be highly concentrated as measubstantially lessen competition or tend to create a monop- sured by the HHI.15 In each of these markets, the increase oly in any relevant market, unless the Board finds that the in the HHI would be consistent with the DOJ Guidelines anticompetitive effects of the proposed transaction are and Board precedent. In addition, numerous competitors clearly outweighed in the public interest by the probable would remain in all these markets. effects of the transaction in meeting the convenience and As noted, Bank has proposed divestitures in the remainneeds of the communities to be served.8 ing three banking markets affected by the proposal: High- Bank and Huntington compete with each other in twelve lands County, North Lake-Sumter Area, and Polk County, banking markets in Florida.9 The Board has reviewed carefully the competitive effects of the proposal in each of the banking markets in which Bank and Huntington compete in light of all the facts of record, including the number of competitors that would remain in the market, the relative 11. 49 Federal Register 26,823 (1984). Under the DOJ Guidelines, share of the total deposits in depository institutions in the a market is considered unconcentrated if the post-merger HHI is under market ("market deposits") that Bank would control,10 the 1000, moderately concentrated if the post-merger HHI is between 1000 and 1800, and highly concentrated if the post-merger HHI is concentration level of market deposits and the increase in more than 1800. The Department of Justice has informed the Board this level as measured by the Herfindahl-Hirschman Index that a bank merger or acquisition generally will not be challenged (in the absence of other factors indicating anticompetitive effects) unless the post-merger HHI is at least 1800 and the merger increases the HHI by more than 200 points. The Department of Justice has stated that the 5. See 12 U.S.C. § 1831u(a)(4) and (g)(4). higher than normal HHI thresholds for screening bank mergers for 6. See 12 U.S.C. § 1831u. Bank is adequately capitalized and anticompetitive effects implicitly recognize the competitive effects of adequately managed, as defined in the Riegle-Neal Act. The Florida limited-purpose lenders and other nondepository financial institutions. Department of Banking has indicated that this transaction would 12. One commenter argued that the proposal would be anticompeticomply with applicable Florida law, and the Georgia Department of tive. In particular, the commenter claimed that Bank's divestiture Banking and Finance approved Bank's application to establish proposal in three markets would not be sufficient to alleviate the branches at the locations of the Huntington branches on November 2, negative competitive effects of the proposal. 2001. See Fla. Stat. Ann. § 658.2953; Ga. Code Ann. §§ 7-1-601 and 13. Bank has committed that before consummating the proposed 7-1-628. Florida law only imposes an age requirement for mergers merger, it will execute an agreement consistent with this order to sell involving Florida-chartered banks and national banks with their main the divestiture branches with total deposits in the three divestiture office in Florida. In this case, Huntington is a national bank with its markets of at least $125 million to a banking organization, in a main office in Ohio. On consummation of the proposal, Bank would transaction in which the change in and resulting HHI levels are within control less than 10 percent of the total amount of deposits in insured the DOJ Guidelines. Bank further has committed that, if it is unsucinstitutions in the United States, and less than 30 percent of the total cessful in completing the proposed divestiture with a purchaser deteramount of deposits in insured institutions in Florida. All other require- mined by the Board to be competitively suitable within 180 days after ments of section 102 of the Riegle-Neal Act would also be met on consummation of the acquisition of the Huntington branches, Bank consummation of the proposal. will transfer the unsold branches to an independent trustee that will be 7. 12 U.S.C. § 1828(c)(5)(A). instructed to sell such branches to an alternate purchaser or purchasers 8. 12 U.S.C. § 1828(c)(5)(B). in accordance with the terms of this order and without regard to price. 9. Banking market definitions are discussed in Appendix B. Both the trustee and any alternate purchaser must be deemed suitable 10. Unless otherwise noted, market share data are based on calcula- by the Board. See BankAmerica Corporation, 78 Federal Reserve tions in which the deposits of thrift institutions, which include savings Bulletin 338 (1992); United New Mexico Financial Corporation, 11 banks and savings associations, are weighted at 50 percent. The Board Federal Reserve Bulletin 484 (1991). has previously indicated that thrift institutions have become, or have 14. The moderately concentrated banking markets would be the Fort the potential to become, significant competitors of commercial banks. Myers Area, Indian River County, Ocala Area, Orlando Area, Sara- See, e.g., Midwest Financial Group, 75 Federal Reserve Bulletin 386 sota Area, and Tampa Bay Area banking markets, all in Florida. The (1989); National City Corporation, 70 Federal Reserve Bulletin 743 effects of the proposal on the concentration of banking resources in the (1984). Thus, the Board regularly has included thrift deposits in the nine markets without divestitures are described in Appendix C. market share calculation on a 50-percent weighted basis. See, e.g., 15. The highly concentrated markets are Brevard County, Daytona First Hawaiian, Inc., 11 Federal Reserve Bulletin 52 (1991). Beach Area, and Punta Gorda Area, all in Florida. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

124 Federal Reserve Bulletin • February 2002 all in Florida.16 After accounting for the proposed divesti- capitalized on consummation of the proposal. Based on all tures, consummation of the merger would be consistent the facts of record, the Board concludes that the financial with the DO J Guidelines in each of these banking markets. and managerial resources and future prospects of the insti- There are numerous competitors in each market, several tutions involved and other supervisory factors are consiswith market share of at least 5 percent. tent with approval of the proposal. The Department of Justice also has conducted a detailed review of the anticipated competitive effects of the pro- Convenience and Needs Considerations posal. The Department has advised the Board that, in light of the proposed divestitures, consummation of the proposal The Bank Merger Act also requires the Board to consider is not likely to have a significantly adverse effect on the convenience and needs of the communities to be served competition in any relevant banking market. The Office of and to take into account the records of the relevant deposithe Comptroller of the Currency ("OCC") and the Federal tory institutions under the Community Reinvestment Act Deposit Insurance Corporation ("FDIC") have been af- ("CRA").18 The CRA requires the federal financial superforded an opportunity to comment and have not objected to visory agencies to encourage financial institutions to help consummation of the proposal. meet the credit needs of the local communities in which The Board has reviewed carefully all the facts of record, they operate, consistent with safe and sound operation, and including the public comment on the competitive effects of requires the appropriate federal financial supervisory the proposal, and for the reasons discussed in this order has agency to take into account an institution's record of concluded that consummation of the proposal is not likely meeting the credit needs of its entire community, including to affect competition or the concentration of resources in a low- and moderate-income ("LMI") neighborhoods, in significantly adverse manner in any of the twelve banking evaluating bank acquisition proposals. markets in which Bank and Huntington directly compete in Accordingly, the Board has carefully considered the Florida or in any other relevant banking market. Accord- convenience and needs factor and the CRA performance ingly, based on all the facts of record and subject to records of Bank and Huntington in light of all the facts of completion of the proposed divestitures, the Board has record, including public comments received on the effect determined that competitive factors are consistent with the proposal would have on the communities to be served approval of the proposal. by the combined organization. The Board received one public comment on the proposal. The commenter ex- Financial, Managerial, and Other Supervisory Factors pressed concerns, among others, that Bank does not meet the needs of the communities it serves, particularly in In reviewing this proposal under the Bank Merger Act and predominantly minority census tracts. Based on data filed section 9 of the FRA, the Board has considered the finan- under the Home Mortgage Disclosure Act ("HMDA"),19 cial and managerial resources and future prospects of the the commenter criticized Bank's mortgage lending record institutions involved. The Board has reviewed these factors to minority individuals and individuals in census tracts in light of all the facts of record, including supervisory with predominantly minority populations ("minority reports of examination assessing the financial and manage- tracts") and certain metropolitan areas. rial resources of Bank, and information provided by Bank.17 The Board notes that Bank would remain well A. CRA Performance Examinations As provided in the CRA, the Board has evaluated the 16. These banking markets are discussed in Appendix D. HHI convenience and needs factor in light of examinations by calculations in the divestiture markets are based on the sale of the the appropriate federal supervisors of Bank and Huntingbranches to a competitively suitable buyer. Bank has signed an agree- ton. An institution's most recent CRA performance evaluament for the sale of the divestiture branches to a thrift that is an tion is a particularly important consideration in the applicain-market competitor in the Polk County banking market and would tions process because it represents a detailed on-site be a new entrant into the Highlands County and North Lake-Sumter Area banking markets. The Board has weighted the deposits of this evaluation of the institution's overall record of perforthrift at 100 percent for purposes of the Board's competitive analysis. mance under the CRA by its appropriate federal supervi- In making this decision, the Board took into account the thrift's sor.20 current commercial lending program and level of lending, and its Bank received an overall rating of "satisfactory" at its ability to expand its level of commercial lending through this acquisition. Accordingly, competition from the thrift more closely approxi- most recent CRA performance examination by the Federal mates competition from a commercial bank. The Board previously has Reserve Bank of Atlanta ("Reserve Bank"), as of Novemindicated that it may consider the competitiveness of a thrift institu- ber 2000 ("2000 Examination"). Huntington received an tion at a level greater than 50 percent of the thrift's deposits when appropriate. See Banknorth Group, Inc., 75 Federal Reserve Bulletin 703 (1989). 17. As part of this review, the Board has considered comments by a volve persons on the lists maintained by the Office of Foreign Assets commenter that provide news reports suggesting that individuals Control. believed to be involved in the attacks of September 11 might have had 18. 12 U.S.C. § 2901 etseq. accounts at a Florida office of Bank and might have received foreign 19. 12 U.S.C. § 2801 etseq. wire transfers there. Bank has been cooperating with federal law 20. See Interagency Questions and Answers Regarding Community enforcement authorities regarding accounts and transactions that in- Reinvestment, 66 Federal Register 36,620 and 36,640 (2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 125 overall rating of "satisfactory" from the OCC at its most down payment assistance that the borrower does not have recent evaluation for CRA performance, as of June 30, to repay if the borrower stays in the property for five years. 1999. Examiners found no evidence of prohibited discrim- Examiners found that Bank's investment activity reination or other illegal credit practices by the insured flected an outstanding level of responsiveness to commudepository institutions involved in this proposal and found nity needs, with qualified investments totaling approxino violations of the substantive provisions of the fair mately $334.4 million, based on the September 1999 Call lending laws. Examiners also reviewed the assessment Report. During the review period, Bank made $14.9 milareas delineated by Bank and Huntington and did not lion in contributions to charities with community developreport that these areas were either unreasonable or reflected ment purposes, including approximately $7 million in Floran arbitrary exclusion of LMI areas. ida. Examiners commended Bank's excellent level of In the 2000 Examination, examiners were generally sat- community development investments and high level of isfied with Bank's efforts to meet the credit needs of its awareness concerning opportunities for community develentire community. From June 30, 1998, through June 30, opment throughout its assessment area. 2000 (the "review period"), Bank, together with its affili- Examiners also found that Bank provided a "high satisate lenders (collectively, "SunTrust"), originated 212,460 factory" level of service, with 21 percent of its branches small business, HMDA-related, and small farm loans, total- serving LMI census tracts. Examiners noted that this pering $22.9 billion. Examiners found that Bank demonstrated centage compared favorably to the fact that 22 percent of an adequate level of HMDA-related, small farm, and small families and 23 percent of businesses in Bank's assessment business lending, with a net loan-to-deposit ratio of 165.2 area were in LMI census tracts. Examiners noted that Bank percent, as of September 30, 2000. Examiners noted that a participated in a relatively high level of community develsubstantial majority of the bank's loans, by number and opment services that were responsive to the housing needs dollar volume of loans, was originated in its assessment in the bank's combined assessment area. Examiners conarea. Examiners concluded that Bank's concentration of cluded that Bank's employees, officers, and board memlending in its assessment area indicated the bank's willing- bers have used their financial expertise to assist communiness to serve the credit needs of its assessment area. ties in developing affordable housing programs throughout Examiners determined that Bank's overall distribution of the combined assessment area. lending to geographies and individuals with different income levels and businesses of different sizes was adequate. B. HMDA Data Approximately 27 percent of Bank's HMDA-reportable loans were made to LMI borrowers, and 10 percent of The Board has also carefully considered the lending record HMDA-reportable loans were made in LMI areas. Addi- of Bank in light of the comment on its reported HMDA tionally, approximately 22 percent of Bank's reportable data.21 The data generally indicate that SunTrust's housingsmall business loans were made in LMI areas. Examiners related lending to minority and LMI individuals and in commended the bank's use of flexible lending practices in minority and LMI census tracts were below the average serving the credit needs of its entire community, including lending levels of the HMDA-reporting lenders in the aggrethe offering of fourteen different kinds of affordable hous- gate in the majority of the states and MSAs identified by ing programs, with ten offered in specific cities or regions the commenter. In some areas, however, SunTrust's and four offered throughout the bank's combined assess- HMDA-reportable lending activity has been very strong. ment area. Since the 2000 Examination, Bank has in- For example, 1999 and 2000 data indicate that Bank has a creased the number of affordable housing programs it strong record of making HMDA-reportable loans in the offers to 21, including eight programs that are offered Washington, D.C., assessment area. throughout its combined assessment area. The Board is concerned when an institution's record In addition to its affordable housing programs, Bank indicates disparities in lending, and believes that all banks represents that it has encouraged the development of loan are obligated to ensure that their lending practices are products at the community level to meet the credit needs of based on criteria that ensure not only safe and sound specific communities. Examples of these loan products lending, but also equal access to credit by creditworthy include the Piggyback Mortgage offered in Savannah, applicants regardless of their race or income level. The Georgia, a loan product designed to supplement the Sun- Board recognizes that HMDA data alone provide an incom- Trust Affordable Mortgage by providing down payment or plete measure of an institution's lending in its community closing cost assistance that amortizes over 60 months on a because these data cover only a few categories of housingcustomer's primary residence; the Housing and Education related lending. HMDA data, moreover, provide only lim- Loan Program offered in the Miami/Dade, Florida Metropolitan Statistical Area ("MSA"), a 30-year fixed rate fully amortizing loan designed to finance the purchase of homes by LMI families and individuals that also offers flexible 21. The commenter criticized the number and volume of HMDAunderwriting and reduced rates; and the Head Start to related loans originated by Bank to minority borrowers and in minor- Home Ownership program offered in Jacksonville, Florida, ity tracts. The commenter, citing SunTrust's ratio of minority loan application denials to non-minority loan application denials, claimed a partnership with the City of Jacksonville that focuses on that SunTrust provided insufficient HMDA-reportable loans to minor- LMI borrowers by offering a "soft" second mortgage for ities in Florida and throughout the United States. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

126 Federal Reserve Bulletin • February 2002 ited information about the covered loans.22 HMD A data, be in compliance with federal law. The Board expects that therefore, have limitations that make them an inadequate Bank would continue to use a satisfactory branch closing basis, absent other information, for concluding that an policy for any branch closings that result from the proinstitution has not adequately assisted in meeting its com- posed transaction.24 munity's credit needs or has engaged in illegal lending The Board also has considered that federal banking law discrimination. provides a specific mechanism for addressing branch clos- Because of the limitations of HMD A data, the Board has ings. Federal law requires an insured depository institution considered these data carefully in light of other informa- to provide notice to the public and to the appropriate tion. For example, Bank has been examined for compli- federal supervisor before closing a branch.25 The law does ance with fair lending laws. The Board has considered not authorize federal supervisory agencies to prevent the these examinations, as well as periodic and other examina- closing of any branch. Any branch closings resulting from tion reports that provide an on- site evaluation of the the proposal will be considered by the appropriate federal compliance by Bank with fair lending laws and its overall banking agency at Bank's next CRA examination. lending and community development activities. In particular, the Board notes that examiners found no evidence of D. Conclusion on Convenience and Needs prohibited discriminatory practices or substantive violations of fair lending laws at the most recent examinations In reviewing the effect of the proposal on the convenience of Bank or Huntington. In addition, Bank has many lend- and needs of the communities to be served, the Board has ing programs, including those mentioned above, that dem- carefully considered all the facts of record, including the onstrate Bank's significant efforts towards and success in comment received and responses to the comment, evaluaachieving equal access to credit by creditworthy applicants tions of the performance of Bank and Huntington under the regardless of their race or income level. CRA, other information provided by SunTrust, and confidential supervisory information. C. Branch Closings Based on all the facts of record and for the reasons discussed above, the Board concludes that considerations The commenter expressed concerns that consummation of relating to the convenience and needs factor, including the the proposal would result in branch closings. Bank has CRA performance records of the relevant depository instiindicated that it intends to close approximately 45 branches tutions, are consistent with approval of the proposal. as a result of the merger, and that at consummation it would consolidate the deposits of Huntington's supermar- E. Branch Application ket branches into neighboring stand-alone branches of Bank. However, Bank has made no determination on spe- As mentioned above, Bank has also applied under section 9 cific branches that would be closed or consolidated as a of the FRA to establish branches at the acquired offices of result of the proposed transaction.23 Huntington. The Board has considered the factors it is The Board has carefully considered the branch closing required to consider when reviewing application for estabpolicy of Bank and Bank's record of opening and closing lishing branches pursuant to section 9 of the FRA,26 and branches. The branch closing policy provides that local for the reasons discussed in this order, finds those factors to branch management in the areas of proposed branch clos- be consistent with approval. ings must review the impact that each branch closing would have on the community. Reserve Bank examiners Conclusion have reviewed the branch closing policy of Bank, most recently as a part of the 2000 Examination, and found it to Based on the foregoing and all the facts of record, the Board has determined that the applications should be, and hereby are, approved.27 Approval of the applications is 22. The data, for example, do not account for the possibility that an institution's outreach efforts may attract a larger proportion of marginally qualified applicants than other institutions attract, and do not 24. In the 2000 Examination, examiners rated Bank "high satisfacprovide a basis for an independent assessment of whether an applicant tory" in the service test, and noted that the bank had adopted a branch who was denied credit was, in fact, creditworthy. Credit history closing policy in accordance with federal law. problems and excessive debt levels relative to income (reasons most 25. Section 42 of the Federal Deposit Insurance Act, 12 U.S.C. frequently cited for a credit denial) are not available from HMDA § 1831r-l, as implemented by the Joint Policy Statement Regarding data. Branch Closing, 64 Federal Register 34,844 (1999)), requires that a 23. The commenter was critical of Bank for closing branches bank provide the public with at least 30 days' notice and the approprilocated in low-income census tracts in Fort Belvoir and Petersburg, ate federal supervisory agency with at least 90 days' notice before the Virginia, and in moderate-income census tracts in Melbourne and date of the proposed branch closing. The bank also is required to Brooksville, Florida, in 2001. The closed Ft. Belvoir, Virginia, branch provide reasons and other supporting data for the closure, consistent was in Ft. Belvoir's military base commissary, which is across the with the institution's written policy for branch closings. street from a full-service branch of Bank. The Brooksville branch was 26. See 12 U.S.C. § 322. relocated, not closed, less than one-tenth of a mile from its original 27. The commenter requested that the Board hold a public meeting location, and the Melbourne office was consolidated into another Bank or hearing on the proposal. The Bank Merger Act does not require the branch on the same street, approximately three-tenths of a mile from Board to hold a public hearing on an application. Under its rules, the the closed location. Board may, in its discretion, hold a public meeting or hearing on an Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 127 specifically conditioned on compliance by Bank with all 18. 7625 Sand Lake Rd., Orlando 32819 the commitments made in connection with this proposal, 19. 5645 Hansel Ave., Orlando 32809 including the branch divestiture commitments discussed in 20. 4000 Central Florida Blvd., Orlando 32816 this order, and the conditions set forth in this order and the 21. 997 W. Broadway, Oviedo 32762 above-noted Board regulations and orders. For purposes of 22. 4600 Dixie Hwy. N.E., Palm Bay 32905 this action, the commitments and conditions relied on in 23. 234 Barton Blvd., Rockledge 32955 reaching this decision are conditions imposed in writing by 24. 210 N. Park Ave., Sanford 32771 the Board and, as such, may be enforced in proceedings 25. 359 E. Burleigh Blvd., Tavares 32778 under applicable law. 26. 1250 Lee Rd., Winter Park 32789 The merger may not be consummated before the fif- 27. 2006 Aloma Ave., Winter Park 32792 teenth calendar day after the effective date of this order, or 28. 200 S. Palmetto Rd., Daytona Beach 32114 later than three months after the effective date of this order, 29. Ill N. Causeway, New Smyrna Beach 32169 unless such period is extended for good cause by the Board 30. 884 Saxon Blvd., Orange City 32763 or by the Federal Reserve Bank of Atlanta, acting pursuant 31. 1058 Dunlawton Ave., Port Orange 32127 to delegated authority. 32. 100 Flagler Plaza Dr., Palm Coast 32137 By order of the Board of Governors, effective Decem- 33. 4303 First Street, Bradenton 34208 ber 17, 2001. 34. 1001 Third Avenue West, Bradenton 34205 35. 7459 Manatee Ave. West, Bradenton 34209 Voting for this action: Chairman Greenspan, Vice Chairman Fergu- 36. 6102 U.S. Hwy. 301 N„ Ellenton 34222 son, and Governors Kelley, Meyer, Gramlich, Bies, and Olson. 37. 333 South Indiana Avenue, Englewood 34223 38. 10 Avenue of the Flowers, Longboat Key 34228 ROBERT DEV. FRIERSON 39. 1099 North Tamiami Trail, Nokomis 34275 Deputy Secretary of the Board 40. 1801 Shreve Street, Punta Gorda 33950 41. 8055 South Beneva Road, Sarasota 34238 Appendix A 42. 3550 South Tamiami Trail, Sarasota 34239 43. 3300 North Tamiami Trail, Sarasota 34234 Branch Locations in Florida 44. 240 South Pineapple Avenue, Sarasota 34236 45. 2090 South Tamiami Trail, Venice 34293 1. 360 W. State Hwy. 436, Altamonte Springs 32714 46. 1670 South Venice Bypass, Venice 34293 2. 150 Galleria Center, Cocoa Beach 32931 47. 825 W. Main St., Avon Park 33825 3. 200 E. Orange Ave., Eustis 32726 48. 1 U.S. 27 North, Lake Placid 33862 4. 33290 U.S. Hwy. 27, Fruitland Park 34731 49. 1075 Carpenters Way, Lakeland 33809 5. 7836 W. U.S. Hwy. 192, Kissimmee 34747 50. 435 S. Combee Rd., Lakeland 33801 6. 100 Park Place Blvd., Kissimmee 34741 51. 2150 E. Edgewood Dr., Lakeland 33803 7. 101 La Grande Blvd., Lady Lake 32159 52. 1515 Harden Blvd., Lakeland 33803 8. 3505 W. Lake Mary Blvd., Lake Mary 32746 53. 115 S. Missouri Ave., Lakeland 33801 9. 10415 S. U.S. Hwy 441, Leesburg 34788 54. 6711 U.S. Hwy. 98 North, Lakeland 33809 10. 1211 North Blvd., Leesburg 34748 55. 1215 Drane Field Rd., Lakeland 33813 11. 1400 W. S.R. 434, Longwood 32779 56. 4828 S. Florida Ave., Lakeland 33813 12. 253 N. Orlando Ave., Maitland 32751 57. 126 W. Center Ave., Sebring 33870 13. 1109 E. New Haven Ave., Melbourne 32951 58. 2631 U.S. Hwy. 27 South, Sebring 33872 14. 325 Eau Gallie Causeway, Melbourne 32937 59. 6225 U.S. Hwy. 98, Sebring 33870 15. 2116 South Babcock, Melbourne 32901 60. 702 S. Broad St., Brooksville 34601 16. 3303 Suntree Blvd., Melbourne 32940 61. 2865 U.S. Hwy. 19, Holiday 34691 17. 8226 N. Wickham, Melbourne 32940 62. 14207 Fivay Road, Hudson 34567 63. 6128 U.S. Hwy. 19, New Port Richey 34652 64. 4041 Rowan Rd., New Port Richey 34653 application if a meeting or hearing is necessary or appropriate to 65. 10220 U.S. Hwy. 19 North, Port Richey 34668 clarify factual issues related to the application and to provide an opportunity for testimony, if appropriate. See 12 C.F.R. 262.3(i). The 66. 7165 Mariner Blvd., Spring Hill 34606 Board has carefully considered the commenter's request in light of all 67. 7539 Spring Hill Dr., Spring Hill 34605 the facts of record. Commenter has had ample opportunity to submit 68. 300 S. Main St., Wildwood 34785 his views, and has submitted written comments that have been consid- 69. 7344 Gall Blvd., Zephyrhills 33541 ered carefully by the Board in acting on the proposal. The comment- 70. 1025 E. Silver Springs Blvd., Ocala 30470 er's request for a public meeting fails to demonstrate why written comments would not adequately present his evidence. Commenter's 71. 1601 S. W. College Rd., Ocala 34474 request also fails to identify disputed issues of fact that are material to 72. 17801 S.E. 109th Ave., Summerfield 34491 the Board's decision and that would be clarified by a public meeting 73. 1533 Cape Coral Pkwy. West, Cape Coral 33990 or hearing. For these reasons, and based on all the facts of record, the 74. 2000 S. Main St., Fort Myers 33902 Board has determined that a public meeting or hearing is not required or warranted in this case. Accordingly, the request for a public 75. 1390 N. Cleveland Ave., Fort Myers 33903 meeting on the proposal is denied. 76. 14490 S. Palm Beach Blvd. North, Fort Myers 33905 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

128 Federal Reserve Bulletin • February 2002 77. 18875 S. Tamiami Trail, Fort Myers 33912 Ocala Area Marion County and the town of 78. 12381 S. Tamiami Trail, Fort Myers 33907 Citrus Springs in Citrus 79. 9820 Stringfellow Rd., St. James City 33856 County. 80. 15201 Roosevelt Blvd., Clearwater 34620 Orlando Area Orange, Osceola, and Seminole 81. 423 Mandalay Ave., Clearwater 34630 Counties; the western half of 82. 26627 US Hwy. 19 North, Clearwater 34641 Volusia County; and the towns 83. 2150 Cleveland St., Clearwater 34625 of Clermont and Groveland in 84. 13075 Walsingham Rd., Largo 33774 Lake County. 85. 200 Oakleaf Blvd., Oldsmar 34677 Polk County Polk County. 86. 1300 S.R. 584, Palm Harbor 34683 Punta Gorda Area The portion of Charlotte 87. 36105 East Lake Rd., Palm Harbor 34685 County that is east of both the 88. 7694 49th St., Pinellas Park 33781 harbor and the Myakka River, 89. 105 S. Wheeler St., Plant City 33566 and the portion of Sarasota 90. 502 US Hwy. 41 North, Ruskin 33570 County that is both east of the 91. 9130 Oakhurst Rd., Seminole 34646 Myakka River and south of In- 92. 7405 Seminole Blvd., Seminole 34642 terstate 75 (currently the town 93. 3100 Central Ave., St. Petersburg 33712 of Northport). 94. 4250 6th St. S„ St. Petersburg 33705 Sarasota Area Manatee and Sarasota Counties 95. 2116 4th St. N., St. Petersburg 33704 excluding the portion of Sara- 96. 6925 N. 56th St., Tampa 33617 sota County that is both east of 97. 601 N. Ashley, Tampa 33602 the Myakka River and south of 98. 13502 N. Florida Ave., Tampa 33613 Interstate 75 (currently the 99. 601 W. Piatt St., Tampa 33606 town of Northport), and the 100. 9601 Martin Luther King Jr Blvd., Tampa 33610 portion of Charlotte County 101. 4005 S. Dale Mabry Hwy., Tampa 33611 that is west of both the harbor 102. 4545 N. Himes Ave., Tampa 33614 and the Myakka River (current- 103. 2208 E. Fowler Ave., Tampa 33612 ly the towns of Englewood, 104. 5370 Ehrlich Rd., Tampa 33625 Englewood Beach, New Point 105. 1701 E. 7th Ave., Tampa 33605 Comfort, Grove City, Cape 106. 203 E. Tarpon Ave., Tarpon Springs 34689 Haze, Rotonda, Rotonda West, and Placida), and Gasparilla Island (the town of Boca Grande) Appendix B in Lee County. Tampa Bay Area Hernando, Hillsborough, Pinel- Florida Banking Markets in which SunTrust Bank and las, and Pasco Counties. Huntington Compete Directly Appendix C Brevard County Brevard County. Daytona Beach Area Flagler County and the towns Certain Banking Markets without Divestitures of Allandale, Daytona Beach, Daytona Beach Shores, Edge- Brevard County Bank is the third largest deposwater, Holly Hill, New Smyrna itory institution in the market, Beach, Ormond Beach, controlling deposits of approxi- Ormond-by-the-Sea, Pierson, mately $541 million, represent- Port Orange, and South Day- ing 13.3 percent of market detona in Volusia County, and the posits. Huntington is the fifth town of Astor in Lake County. largest depository institution in Fort Myers Area Lee County, excluding the the market, controlling deposits of $282 million, representtowns located on Gasparilla Ising 6.9 percent of market deland; and the town of Imposits. On consummation of mokalee in Collier County. the proposal, Bank would re- Highlands County Highlands County. main the third largest deposi- Indian River County Indian River County. tory institution in the market, controlling deposits of approxi- North Lakemately $824 million, represent- Sumter Area Sumter County and Lake ing approximately 20.2 percent County excluding the towns of of market deposits. The HHI Astor, Clermont, and Grovewould increase 184 points to land. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 129 1936, and 20 competitors deposits of approximately would remain in the market. $135 million, representing ap- Daytona Beach Area Bank is the third largest depos- proximately 6.7 percent of itory institution in the market, market deposits. The HHI controlling deposits of approxi- would increase 2 points to mately $883 million, represent- 1273, and 16 competitors ing 19.3 percent of market de- would remain in the market. posits. Huntington is the eighth Ocala Area Bank is the second largest delargest depository institution in pository institution in the marthe market, controlling depos- ket, controlling deposits of its of $147 million, represent- $554 million, representing ing 3.2 percent of market de- 21.3 percent of market deposposits. On consummation of its. Huntington is the sixth largthe proposal, Bank would be- est depository institution in the come the second largest depos- market, controlling deposits itory institution in the market, of $107 million, representing controlling deposits of approxi- 4.1 percent of market deposits. mately $1 billion, representing On consummation of the proapproximately 22.5 percent of posal, Bank would become the market deposits. The HHI largest depository institution in would increase 125 points to the market, controlling depos- 1854, and 19 competitors its of $661 million, representwould remain in the market. ing 25.4 percent of market Fort Myers Area Bank is the third largest de- deposits. The HHI would inpository institution in the mar- crease 176 points to 1574, and ket, controlling deposits of 17 competitors would remain $644 million, representing in the market. 11.2 percent of market depos- Orlando Area Bank is the largest depository its. Huntington is the sixth larg- institution in the market, conest depository institution in the trolling deposits of $3.9 billion, market, controlling deposits representing 26.7 percent of of $276 million, representing market deposits. Huntington is 4.8 percent of market deposits. the seventh largest depository On consummation of the pro- institution in the market, conposal, Bank would remain the trolling deposits of $346 milthird largest depository institu- lion, representing 2.3 percent tion in the market, controlling of market deposits. On condeposits of approximately summation of the proposal, $920 million, representing Bank would remain the largest 16 percent of market deposits. depository institution in the The HHI would increase market, controlling deposits 108 points to 1582, and of $4.3 billion, representing 22 competitors would remain 29 percent of market deposits. in the market. The HHI would increase Indian River County Bank is the eighth largest de- 125 points to 1798, and pository institution in the mar- 37 competitors would remain ket, controlling deposits of in the market. $133 million, representing 6.6 Punta Gorda Area Bank is the third largest depospercent of market deposits. itory institution in the mar- Huntington is the seventeenth ket, controlling deposits of largest depository institution in $156 million, representing the market, controlling depos- 19.3 percent of market deposits of approximately $2 mil- its. Huntington is the tenth lion, representing less than 1 largest depository institution in percent of market deposits. On the market, controlling deposconsummation of the proposal, its of $5 million, representing Bank would become the sev- less than 1 percent of market enth largest depository institu- deposits. On consummation of tion in the market, controlling the proposal, Bank would Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

130 Federal Reserve Bulletin • February 2002 remain the third largest de- $124 million, representing pository institution in the mar- 11.9 percent of market deposket, controlling deposits of its. Huntington is the third larg- $161 million, representing ap- est depository institution in the proximately 20 percent of mar- market, controlling deposits ket deposits. The HHI would of $192 million, representing increase 24 points to 1813, and 18.3 percent of market deposeight competitors would re- its. Bank proposes to divest to main in the market. a suitable competitor two Sarasota Area Bank is the second largest de- branches in the market, with pository institution in the mar- deposits of $60 million, repreket, controlling deposits of ap- senting 5.7 percent of market proximately $1.5 billion deposits. After the proposed representing 14.1 percent of merger and divestiture, Bank market deposits. Huntington is would become the second largthe fifth largest depository in- est depository institution in the stitution in the market, control- market, controlling deposits ling deposits of $578 million, of $256 million, representing representing 5.5 percent of 24.5 percent of market deposmarket deposits. On consum- its. The HHI would increase mation of the proposal, Bank 155 points to 2041, and eight would remain the second larg- competitors would remain in est depository institution in the market. the market, controlling depos- North Lakeits of approximately $2 billion, Sumter Area Bank is the largest depository representing approximately institution in the market, con- 19.6 percent of market depos- trolling deposits of $452 milits. The HHI would increase lion, representing 18.5 percent 156 points to 1371, and of market deposits. Huntington 45 competitors would remain is the second largest depository in the market. institution in the market, con- Tampa Bay Area Bank is the third largest depos- trolling deposits of $420 militory institution in the market, lion, representing 17.2 percent controlling deposits of $2.9 bil- of market deposits. Bank prolion, representing 9.8 percent poses to divest to a suitable of market deposits. Huntington competitor one branch in the is the sixth largest depository market, with deposits of institution in the market, con- $17 million, representing less trolling deposits of $1.5 billion, than 1 percent of market deposrepresenting 5.2 percent of its. After the proposed merger market deposits. On consum- and divestiture, Bank would remation of the proposal, Bank main the largest depository inwould become the second larg- stitution in the market, controlest depository institution in the ling deposits of $856 million, market, controlling deposits representing 35 percent of of $4.4 billion, representing market deposits. The HHI 15 percent of market deposits. would increase 588 points to The HHI would increase 1755, and 16 competitors 102 points to 1451, and would remain in the market. 59 competitors would remain Polk County Bank is the third largest deposin the market. itory institution in the market, controlling deposits of $670 million, representing Appendix D 17.7 percent of market depos- Certain Markets with Divestitures its. Huntington is the fourth largest depository institution in the market, controlling depos- Highlands County Bank is the fourth largest deits of $361 million, representpository institution in the maring 9.6 percent of market deket, controlling deposits of Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 131 posits. Bank proposes to divest the local communities in which they operate, consistent to a suitable competitor four with their safe and sound operation, and requires the approbranches in the market, with priate federal supervisory authority to assess the institudeposits of $91 million, repre- tion's record of meeting the credit needs of its entire senting 2.3 percent of market community, including low- and moderate-income ("LMI") deposits. After the proposed neighborhoods, in evaluating branch applications. merger and divestiture, Bank would become the largest de- A. CRA Performance Examination pository institution in the market, controlling deposits of $941 million, representing As provided in the CRA, the Board evaluates the perfor- 23.8 percent of market de- mance of an institution in light of examinations by the posits. The HHI would in- appropriate federal supervisors of the CRA performance crease 164 points to 1671, and record of the institution. An institution's most recent CRA 15 competitors would remain performance evaluation is a particularly important considin the market. eration in the applications process because it represents a detailed, on-site evaluation of the institution's overall record of performance under the CRA by its appropriate ORDERS ISSUED UNDER FEDERAL RESERVE ACT federal supervisor.3 Bank received a "satisfactory" rating at its most recent CRA examination by the Federal Reserve The Annapolis Banking and Trust Company Bank of Richmond as of April 2001. Annapolis, Maryland Order Approving Operation of Mobile Branch B. CRA Performance Record The Annapolis Banking and Trust Company ("Bank"), a Bank operates eleven full-service branches in Anne Arunstate member bank, has given notice under section 9 of the del County. Examiners found that Bank offered a full range Federal Reserve Act ("Act") (12 U.S.C. § 321 et seq.) of of credit services, including consumer, small business, its intention to operate a mobile branch by providing a residential mortgage, home improvement, and commercial courier service to collect noncash deposits from business loans. The majority of Bank's loans by number and dollar customers in Annapolis and Anne Arundel County, all in amount were to residents in Bank's assessment area, and Maryland. examiners assessed Bank's lending activities as responsive Notice of the proposal, affording interested persons an to local credit demand. Examiners concluded that the geoopportunity to submit comments, has been published in graphic distribution of Bank's lending indicated adequate accordance with the Board's Rules of Procedure (12 C.F.R. penetration in LMI census tracts. Bank also has formed 262.3(b)). The time for filing comments has expired, and partnerships with other area banks and provided $200,000 the Board has considered the notice and all comments toward a $3.4 million line of credit to the Anne Arundel received in light of the factors specified in the Act. Economic Development Corporation ("AAEDC"). The Bank is a wholly owned subsidiary of Mercantile Bank- line of credit funded direct loans to local businesses and shares Corporation, Baltimore, Maryland. Mercantile is the supported loan guarantees by AAEDC to repay the bank third largest banking organization in Maryland, controlling debt of local businesses. deposits of approximately $6.7 billion, representing Examiners considered Bank's level of participation in 9.8 percent of banking deposits in the state. If Bank were a community development investment activities adequate to stand-alone institution, it would rank as the 26th largest serve the needs of its assessment area. Bank purchased four banking organization in Maryland, controlling deposits Maryland Community Development Administration bonds, of approximately $282.4 million, representing less than which provided funds to finance the purchase of or refi- 1 percent of banking deposits in the state.1 nance owner-occupied, single-family residences in Maryland by borrowers with limited income. Since its previous Community Reinvestment Act Considerations examination, Bank also has made $18,900 in qualifying grants and donations to local organizations that serve pri- In acting on an application to establish a branch, the Board marily LMI individuals or areas. is required to take into account the Bank's record under the Examiners considered Bank's branch locations and busi- Community Reinvestment Act ("CRA").2 The CRA reness hours to be convenient and to meet the needs of quires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of 1. Deposit and state ranking data are as of June 30, 2001. 3. See Interagency Questions and Answers Regarding Community 2. 12 U.S.C. § 2901 et seq. Reinvestment, 66 Federal Register 36,620 and 36,639 (2001). Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

132 Federal Reserve Bulletin • February 2002 residents and businesses in its assessment area.4 Nine tions imposed in writing in connection with its findings and ATMs are available to local residents and provide 24-hour decision and, as such, may be enforced in proceedings nationwide network access. Telephone banking services under applicable law. and a bank-by-mail program are offered. Examiners noted Approval of this notice is subject to the establishment of that Bank offered low-cost checking and savings accounts the proposed branch within one year of the date of this that featured a low opening balance and low monthly fees. order, unless such period is extended by the Board or the The Bank also offered direct deposit for payroll, Social Federal Reserve Bank of Richmond, acting pursuant to Security, or other recurring payments. Examiners com- delegated authority, and to approval of the proposal by the mented favorably on Bank's systems for delivering retail appropriate state authorities. banking services, which were found to be available to all By order of the Board of Governors, effective Decemportions of the assessment area, including moderate- ber 26, 2001. income census tracts. Furthermore, examiners determined that Bank offered a level of community development ser- Voting for this action: Chairman Greenspan, Vice Chairman Ferguvices that was adequate for the institution's size, location, son, and Governors Kelley, Meyer, Gramlich, Bies, and Olson. and financial capacity. Accordingly, Bank received a "high satisfactory" rating under the service test component of its JENNIFER J. JOHNSON Secretary of the Board CRA performance evaluation. C. Conclusion on CRA Performance ORDERS ISSUED UNDER INTERNATIONAL BANKING ACT The Board has considered carefully the entire record of Bank's CRA performance, including the comment letter Caixa de Aforros de Vigo, Ourense e Pontevedra and Bank's most recent CRA performance examination. Vigo, Spain Based on all the facts of record, the Board concludes that CRA considerations are consistent with approval of the Order Approving Establishment of an Agency proposal. Caixa de Aforros de Vigo, Ourense e Pontevedra Other Considerations ("Bank"), Vigo, Spain, a foreign bank within the meaning of the International Banking Act ("IBA"), has applied The Board also has concluded that the factors it is required under section 7(d) of the IBA (12 U.S.C. § 3105(d)) to to consider under section 9 of the Act, including Bank's establish an agency in Miami, Florida. The Foreign Bank financial condition, the general character of its manage- Supervision Enhancement Act of 1991, which amended the ment, and the proposed exercise of corporate powers, are IBA, provides that a foreign bank must obtain the approval consistent with approval of the notice.5 of the Board to establish an agency in the United States. Notice of the application, affording interested persons an Conclusion opportunity to comment, has been published in a newspaper of general circulation in Miami, Florida (Miami Her- Based on the foregoing and all the facts of record, the ald, July 12, 2001). The time for filing comments has Board has determined that this notice should be, and hereby expired, and all comments have been considered. is, approved. The Board's approval is specifically condi- Bank, with consolidated assets of approximately tioned on Bank's compliance with all commitments made $9.2 billion,1 is a not-for-profit savings bank2 offering retail in connection with the proposal. The commitments and and commercial banking services, primarily in the Galicia conditions relied on by the Board are deemed to be condi- Region of Spain.3 Bank also engages in securities, insurance, asset management, venture capital, food distribution, 4. A commenter suggested that the courier service, currently proposed to be provided only to business customers of Bank, be extended to provide services to local senior citizens and disabled individuals 1. Asset data are as of September 30, 2001. and, in particular, to senior-citizen residences. She also proposed that 2. As a savings bank, Bank is required to channel part of its annual these extended services be publicly funded if necessary. The Board profits to social and cultural projects in the communities in which it has considered these comments in light of all the facts of record, operates. There is no minimum legal requirement for such contribuincluding Bank's response. tions. The Board notes that the CRA does not require financial institutions 3. Bank does not have shareholders. Its operations are controlled to provide any particular type of product or service to its customers. and governed by three bodies: a general assembly, a board of direc- As discussed, Bank offers several programs that examiners found to tors, and a control commission. The 160-member general assembly be effective in providing banking services in its assessment area. includes representatives of the municipalities in which Bank operates These services included a checking account with no service charge or (25 percent), Bank's depositors (40 percent), the Bank's "founding minimum balance requirement for customers 62 years and older and a institutions" (i.e., the municipal governments of Vigo, Ourense, and checking account with no service charges for customers 55 years and Pontevedra Regions of Spain) (25 percent), and Bank's employees older. (10 percent). Bank's board of directors is composed of 27 members, 5. 12 U.S.C. § 322. proportionally representing the groups comprising the general assem- Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 133 real estate development, telecommunications, and informa- Spain on substantially the same terms and conditions as tion management activities through a number of domestic those other banks. subsidiaries. Outside Spain, Bank operates two branches in Based on all the facts of record, including the above Portugal and has representative offices in Venezuela, Mex- information, it has been determined that Bank is subject to ico, and Switzerland. Bank currently does not have any comprehensive supervision on a consolidated basis by its operations in the United States. home country supervisor. The proposed agency would offer deposit, trade finance, The additional standards set forth in section 7 of the IBA project finance, corporate loan, personal banking, and in- and Regulation K (see 12 U.S.C. § 3105(d)(3)-(4); vestment management services to Bank's existing and po- 12 C.F.R. 211.24(c)(2)) have also been taken into account. tential customers in the Americas and the Carribean. The Bank of Spain has no objection to the establishment of In order to approve an application by a foreign bank to the proposed agency. establish an agency in the United States, the IBA and Spain has enacted laws, and the Bank of Spain has Regulation K require the Board to determine that the promulgated implementing regulations, designed to preforeign bank applicant engages directly in the business of vent money laundering. The laws and regulations require banking outside of the United States, and has furnished to financial institutions, including savings banks, to establish the Board the information it needs to assess the application and implement policies, procedures, and controls for the adequately. The Board also shall take into account whether purpose of preventing and detecting money laundering, the foreign bank and any foreign bank parent is subject to and to report certain cash transactions and suspicious transcomprehensive supervision or regulation on a consolidated actions to appropriate authorities. An institution's complibasis by its home country supervisor (12 U.S.C. ance with applicable laws and regulations is monitored by § 3105(d)(2); 12 C.F.R. 211.24).4 The Board may also take the Bank of Spain and the institution's external auditors. into account additional standards as set forth in the IBA Bank has policies and procedures to comply with these and Regulation K (12 U.S.C. § 3105(d)(3)-(4); 12 C.F.R. laws and regulations. 211.24(c)(2)). Spain's risk-based capital standards conform to the Euro- As noted above, Bank engages directly in the business of pean Union capital standards, which are consistent with banking outside the United States. Bank also has provided those established by the Basel Capital Accord. Bank's the Board with information necessary to assess the applica- capital is in excess of the minimum levels that would be tion through submissions that address the relevant issues. required by the Basel Capital Accord and is considered With respect to supervision by home country authorities, equivalent to capital that would be required of a U.S. the Board previously has determined, in connection with banking organization. Managerial and other financial reapplications involving other banks in Spain, that those sources of Bank also are considered consistent with apbanks were subject to home country supervision on a proval, and Bank appears to have the experience and capacity consolidated basis.5 Bank is supervised by the Bank of to support the proposed agency. In addition, Bank has established controls and procedures for the proposed agency to ensure compliance with U.S. law, as well as controls and procedures for its worldwide operations generally. bly. The control commission is composed of 11 members elected by With respect to access to information about Bank's the general assembly. operations, the restrictions on disclosure in relevant juris- 4. In assessing this standard, the Board considers, among other dictions in which Bank operates have been reviewed and factors, the extent to which the home country supervisors: the relevant government authorities have been communi- (i) Ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide; cated with regarding access to information. Bank has com- (ii) Obtain information on the condition of the bank and its subsidiar- mitted to make available to the Board such information on ies and offices through regular examination reports, audit reports, the operations of Bank and any of its affiliates that the or otherwise; Board deems necessary to determine and enforce compli- (iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic; ance with the IBA, the Bank Holding Company Act, and (iv) Receive from the bank financial reports that are consolidated on a other applicable federal law. To the extent that the proviworldwide basis or comparable information that permits analysis sion of such information to the Board may be prohibited by of the bank's financial condition on a worldwide consolidated law or otherwise, Bank has committed to cooperate with basis; the Board to obtain any necessary consents or waivers that (v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. might be required from third parties for disclosure of such These are indicia of comprehensive, consolidated supervision. No information. In addition, subject to certain conditions, the single factor is essential, and other elements may inform the Board's Bank of Spain may share information on Bank's operations determination. with other supervisors, including the Board. In light of 5. See Caja de Ahorros y Monte de Piedad de Madrid, 87 Federal these commitments and other facts of record, and subject to Reserve Bulletin 785 (2001); Banco Pastor, S.A., 87 Federal Reserve Bulletin 555 (2001); Caja de Ahorros de Valencia, Castellon y Ali- the condition described below, it has been determined that cante, 84 Federal Reserve Bulletin 231 (1998); Banco Exterior de Bank has provided adequate assurances of access to any Espafia S.A., 81 Federal Reserve Bulletin 616 (1995); Corporacion necessary information that the Board may request. Bancaria de Espaha, 81 Federal Reserve Bulletin 598 (1995); Banco Santander S.A., 79 Federal Reserve Bulletin 622 (1993); Banco de On the basis of all the facts of record, and subject to the Sabadell S.A., 79 Federal Reserve Bulletin 366 (1993). commitments made by Bank as well as the terms and Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

134 Federal Reserve Bulletin • February 2002 conditions set forth in this order, Bank's application to cation and with the conditions in this order.7 The commitestablish an agency is hereby approved.6 Should any re- ments and conditions referred to above are conditions strictions on access to information on the operations or imposed in writing by the Board in connection with this activities of Bank and its affiliates subsequently interfere decision and may be enforced in proceedings under with the Board's ability to obtain information to determine 12 U.S.C. § 1818 against Bank and its affiliates. and enforce compliance by Bank or its affiliates with By order, approved pursuant to authority delegated by applicable federal statutes, the Board may require or rec- the Board, effective December 20, 2001. ommend termination of any of Bank's direct or indirect activities in the United States. Approval of this application ROBERT DEV. FRIERSON also is specifically conditioned on compliance by Bank Deputy Secretary of the Board with the commitments made in connection with this appli- 7. The authority to approve the establishment of the proposed agency parallels the continuing authority of the State of Florida to license offices of a foreign bank. The approval of this application does not supplant the authority of the State of Florida or its agent, the 6. Approved by the Director of the Division of Banking Supervision Florida Department of Banking and Finance ("Department"), to liand Regulation, with the concurrence of the General Counsel, pursu- cense the proposed office of Bank in accordance with any terms or ant to authority delegated by the Board. 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 Bancfirst Ohio Corp., UNB Corp., Cleveland November 15, 2001 Zanesville, Ohio Canton, Ohio Bancshares Holding Corp., The Bank of Commerce, Chicago December 20, 2001 Downers Grove, Illinois Downers Grove, Illinois Bedias Financial Corporation, First State Bank of Bedias, Dallas December 12, 2001 Bedias, Texas Bedias, Texas Bedias Holdings, Inc., Wilmington, Delaware Capital Bank Corporation, First Community Financial Corporation, Richmond November 28, 2001 Raleigh, North Carolina Burlington, North Carolina Cavalry Bancorp, Inc., Cavalry Banking, Atlanta December 14, 2001 Murfreesboro, Tennessee Murfreesboro, Tennessee Central Financial Corporation, NorthStar Bancshares, Inc., Kansas City December 21, 2001 Hutchinson, Kansas Kansas City, Missouri Central Texas Bankshare Holdings, Hill Bancshares Holdings, Inc., Dallas December 18, 2001 Inc., Weimar, Texas Columbus, Texas Hill Bank & Trust Company, Colorado County Investment Weimar, Texas Holdings, Inc., Wilmington, Delaware CFB Holding Company, Citizens First Bank, Chicago December 19, 2001 Clinton, Iowa Clinton, Iowa Community State Bancshares, Inc., The Bradley Corporation, St. Louis December 20, 2001 Bradley, Arkansas Bradley, Arkansas The Bank of Bradley, Bradley, Arkansas Firstate Bancorp, Inc., 1st State Bank of Mason City, Chicago November 16, 2001 Mason City, Illinois Mason City, Illinois First Banks, Inc., Plains Financial Corporation, St. Louis November 20, 2001 St. Louis, Missouri Des Plains, Illinois PlainsBank of Illinois, N.A., Digitized for FRASER Des Plains, Illinois http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 135 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date First Columbia Bancorp, Inc., Columbia County Bank, Atlanta December 24, 2001 Lake City, Florida Lake City, Florida First Sentry Bancshares, Inc., First Sentry Bank, Inc., Richmond November 16, 2001 Huntington, West Virginia Huntington, West Virginia First Southern Bancorp, First Southern National Bank, Atlanta December 14, 2001 Statesboro, Georgia Statesboro, Georgia Flatlrons Bank Holding Company, Flatlrons Bank, Kansas City December 7, 2001 Loveland, Colorado Boulder, Colorado FNB Corporation, Salem Community Bankshares, Inc., Richmond November 15, 2001 Christiansburg, Virginia Salem, Virginia Grand Bankshares, Inc., Grand Bank & Trust of Florida, Atlanta December 11, 2001 West Palm Beach, Florida West Palm Beach, Florida H2H Bancshares, Inc., Farmers State Bank, Minneapolis November 28, 2001 Hosmer, South Dakota Hosmer, South Dakota Krum Bancshares, Inc., Farmers and Merchants State Bank, Dallas December 19, 2001 Krum, Texas Krum, Texas Krum Bancshares of Delaware, Inc., Dover, Delaware Malvern Bancshares, Inc., Malvern Trust & Savings Bank, Chicago December 6, 2001 Malvern, Iowa Malvern, Iowa McLaughlin Bancshares, Inc., First Hale Center, Inc., Dallas December 3, 2001 Ralls, Texas Hale Center, Texas McLaughlin Delaware Bancshares, Inc., FNB West Texas, Dover, Delaware Plain view, Texas Mesaba Bancshares, Inc., Bovey Financial Corporation, Minneapolis December 3, 2001 Grand Rapids, Minnesota Bovey, Minnesota The First National Bank of Bovey, Bovey, Minnesota NB&T Financial Group, Inc., NB&T Financial Group, Cleveland December 13, 2001 Employee Stock Ownership Plan, Wilmington, Ohio Wilmington, Ohio Northwest Bancshares, Inc., Northwest Bank, Dallas December 5, 2001 Roanoke, Texas Roanoke, Texas Northwest Delaware, Inc., Wilmington, Delaware PHSB Financial Corporation, Peoples Home Savings Bank, Cleveland November 13, 2001 Beaver Falls, Pennsylvania Beaver Falls, Pennsylvania Plainville Bancshares, Inc., Farmers Bancshares, Inc., Kansas City December 5, 2001 Plainville, Kansas Lincoln, Kansas Premier Holdings, Ltd., Premier Bank, Chicago December 17, 2001 Rock Valley, Iowa Rock Valley, Iowa Riverside Central Florida Banking Riverside Bank of Central Florida, Atlanta December 7, 2001 Company, Winter Park, Florida Winter Park, Florida South Group Bancshares, Inc., South Georgia Bank, Atlanta December 14, 2001 Glennville, Georgia Glennville, Georgia Spector Properties, Inc., Andalusia Community Bank, Chicago December 27, 2001 Chicago, Illinois Andalusia, Illinois Superior National Bank Holding Superior National Bank, Minneapolis November 14, 2001 Company, Superior, Wisconsin Superior, Wisconsin Tri-County Bancorp, Inc., West Union Bank, Richmond December 4, 2001 West Union, West Virginia West Union, West Virginia Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

136 Federal Reserve Bulletin • February 2002 Section 3—Continued Applicant(s) Bank(s) Reserve Bank Effective Date UNB Corp., Bancfirst Ohio Corp., Cleveland November 15, 2001 Canton, Ohio Zanesville, Ohio United Bancor, Ltd., Bismarck Bancshares, Inc., Minneapolis December 21, 2001 Dickenson, North Dakota Bismarck, North Dakota Valley View Bancshares, Inc., Guaranty Bancshares, Kansas City December 27, 2001 Overland Park, Kansas Kansas City, Kansas Westfield Financial, Inc., Westfield Savings Bank, Boston November 19, 2001 Westfield, Massachusetts Westfield, Massachusetts Westfield Mutual Holding Company, Westfield Financial, Inc., Boston November 19, 2001 Westfield, Massachusetts Westfield, Massachusetts West Point Bancorp, Inc., Town & Country Bank, Inc. Kansas City December 7, 2001 West Point, Nebraska Las Vegas, Nevada Section 4 Applicant(s) Nonbanking Activity/Company Reserve Bank Effective Date Community First Financial Group, Inc.. Harrington Bank, St. Louis December 17, 2001 Corydon, Indiana Chapel Hills, North Carolina FBOP Corporation, Bank Plus Corporation, Chicago December 28, 2001 Oak Park, Illinois Los Angeles, California Landesbank Baden-Wurttemberg, BW Capital Markets, Inc., New York December 20, 2001 Stuttgart, Germany New York, New York Sparkassenverband Baden-Wurttemberg, Stuttgart, Germany Mainline Bankshares of Portland, Inc., To engage in certain lending activities St. Louis December 5, 2001 Portland, Arkansas limited to the purchase of loans from its subsidiary bank Marshall & Ilsley Corporation, 401kservices.com, inc., Chicago December 14, 2001 Milwaukee, Wisconsin Appleton, Wisconsin Metavante Corporation, Milwaukee, Wisconsin Midwest Banc Holdings, Inc., Service 1st Financial Corporation, Chicago December 19, 2001 Melrose Park, Illinois Elmwood Park, Illinois Midwest Financial and Investment Services, Inc., Elmwood Park, Illinois APPLICATIONS APPROVED UNDER BANK MERGER ACT By Federal Reserve Banks Recent applications have been approved by the Federal Reserve Banks as listed below. Copies are available upon request to the Reserve Banks. Applicant(s) Bank(s) Reserve Bank Effective Date Comerica Bank-California, Progress Bank, Chicago December 27, 2001 San Jose, California Blue Bell, Pennsylvania Fifth Third Bank, Indiana, Fifth Third Bank, Southwest, F.S.B., Cleveland December 13, 2001 Indianapolis, Indiana Scottsdale, Arizona Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Legal Developments 137 Applications Approved Under Bank Merger Act—Continued Applicant(s) Bank(s) Reserve Bank Effective Date First Bank, PlainsBank of Illinois, National St. Louis December 26, 2001 Creve Coeur, Missouri Association, Des Plaines, Illinois The First Bank and Trust Company, First Bank and Trust Company of Richmond December 13, 2001 Lebanon, Virginia Tennessee, Johnson City, Tennessee Florida Keys Bank, Gulf Coast National Bank, Atlanta December 7, 2001 Marathon, Florida Naples, Florida Iowa State Bank, Iowa State Bank, Chicago December 14, 2001 Sheldon, Iowa Orange City, Iowa Potomac Valley Bank, South Branch Valley National Bank, Richmond December 12, 2001 Petersburg, West Virginia Moorefield, West Virginia Security Bank, FNB West Texas, Dallas December 3, 2001 Ralls, Texas Plainview, Texas Southern Security Bank, PanAmerican Bank, Atlanta December 14, 2001 Hollywood, Florida Miami, Florida PENDING CASES INVOLVING THE BOARD OF GOVERNORS This list of pending cases does not include suits against the Artis v. Greenspan, No. 01-CV-0400(ESG) (D.D.C., complaint Federal Reserve Banks in which the Board of Governors is not filed February 22, 2001. Employment discrimination action. named a party. On August 15, 2001, the district court consolidated the action with Artis v. Greenspan, No. 99-CV-2073 (EGS) Community Bank & Trust v. United States, No. 01-571C (D.D.C., filed August 3, 1999), also an employment dis- (Ct. Fed. CI., filed October 3, 2001). Action challenging crimination action. failure to pay interest on reserve accounts held at Federal Howe v. Bank for International Settlements, No. 00CV12485 Reserve Bank. RCL (D. Mass., filed December 7, 2000). Action seeking Emran v. Greenspan, No. 1:01CV1992 (PLF) (D.D.C., filed damages in connection with gold market activities and the September 20, 2001). Employment discrimination claim. repurchase of privately-owned shares of the Bank for Inter- On December 21, 2001, the case was dismissed by stipula- national Settlements. tion of the parties. Trans Union LLC v. Federal Trade Commission, et al., Bettersworth v. Board of Governors, No. 01-444 (United No. 01-5202 (D.C. Cir., filed June 4, 2001). Appeal of States Supreme Court, docketed September 14, 2001). Peti- district court order entered April 30, 2001, upholding an tion for certiorari seeking review of denial of petitioner's interagency rule regarding Privacy of Consumer Finance Privacy Act claims. On November 13, 2001, the Supreme Information. Court denied the petition. Albrecht v. Board of Governors, No. 00-CV-317 (CKK) Laredo National Bancshares, Inc. v. Whalen v. Board of Gov- (D.D.C., filed February 18, 2000). Action challenging the ernors, No. 01-CV-134 (S.D. Tex., removed on September method of funding of the retirement plan for certain Board 5, 2001, from No. 99CVQ00940-D3 (District Court, 341st employees. On March 30, 2001, the district court granted in Judicial District, Webb County, Texas, originally filed part and denied in part the Board's motion to dismiss. July 26, 2001). Third-party petition seeking indemnification Guerrero v. United States, No. CV-F-99-6771(OWW) (E.D. or contribution from the Board in connection with a claim Cal., filed November 29, 1999). Prisoner suit. asserted against defendant Whalen alleging tortious interfer- Fraternal Order of Police v. Board of Governors, ence with a contract. No. 1:98CV03116 (WBB)(D.D.C., filed December 22, Radfar v. United States, No. 1:01CV1292 (PLF) (D.D.C., 1998). Declaratory judgment action challenging Board lacomplaint filed June 11, 2001). Action under the Federal bor practices. On February 26, 1999, the Board filed a Tort Claims Act for injury on Board premises. motion to dismiss the action. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

138 Membership of the Board of Governors of the Federal Reserve System, 1913-2002 APPOINTIVE MEMBERS 1 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Charles S. Hamlin ...Boston AAuugg.. 1100,, 11991144 Reappointed in 1916 and 1926. Served until Feb. 3, 1936.3 Paul M. Warburg .. .New York ...Aug. 10, 1914 Term expired Aug. 9, 1918. Frederic A. Delano ...Chicago ...Aug. 10, 1914 Resigned July 21, 1918. W.P.G. Harding ...Atlanta ...Aug. 10, 1914 Term expired Aug. 9, 1922. Adolph C. Miller ...San Francisco ...Aug. 10, 1914 Reappointed in 1924. Reappointed in 1934 from the Richmond District. Served until Feb. 3, 1936.3 Albert Strauss ... .New York ...Oct. 26, 1918 Resigned Mar. 15, 1920. Henry A. Moehlenpah ...Chicago ...Nov. 10, 1919 Term expired Aug. 9, 1920. Edmund Piatt ...New York ...June 8, 1920 Reappointed in 1928. Resigned Sept. 14, 1930. David C. Wills ...Cleveland ...Sept. 29, 1920 Term expired Mar. 4, 1921. John R. Mitchell ...Minneapolis ...May 12, 1921 Resigned May 12, 1923. Milo D. Campbell ...Chicago ...Mar. 14, 1923 Died Mar. 22, 1923. Daniel R. Crissinger ...Cleveland ...May 1, 1923 Resigned Sept. 15, 1927. George R. James ...St. Louis ...May 14, 1923 Reappointed in 1931. Served until Feb. 3, 1936.4 Edward H. Cunningham .. ...Chicago ...May 14, 1923 Died Nov. 28, 1930. Roy A. Young ....Minneapolis ...Oct. 4, 1927 Resigned Aug. 31, 1930. Eugene Meyer ....New York ...Sept. 16, 1930 Resigned May 10, 1933. Wayland W. Magee ... .Kansas City ...May 18, 1931 Term expired Jan. 24, 1933. Eugene R. Black ....Atlanta ...May 19, 1933 Resigned Aug. 15, 1934. M.S. Szymczak ...Chicago ...June 14, 1933 Reappointed in 1936 and 1948. Resigned May 31, 1961. J.J. Thomas ...Kansas City ...June 14, 1933 Served until Feb. 10, 1936.3 Marriner S. Eccles ... .San Francisco ...Nov. 15, 1934 Reappointed in 1936, 1940, and 1944. Resigned July 14, 1951. Joseph A. Broderick ... .New York ...Feb. 3, 1936 Resigned Sept. 30, 1937. John K. McKee ....Cleveland ...Feb. 3, 1936 Served until Apr. 4, 1946.3 Ronald Ransom ....Atlanta ...Feb. 3, 1936 Reappointed in 1942. Died Dec. 2, 1947. Ralph W. Morrison ....Dallas ...Feb. 10, 1936 Resigned July 9, 1936. Chester C. Davis ...Richmond ...June 25, 1936 Reappointed in 1940. Resigned Apr. 15, 1941. Ernest G. Draper ....New York ...Mar. 30, 1938 Served until Sept. 1, 1950.3 Rudolph M. Evans ....Richmond ...Mar. 14, 1942 Served until Aug. 13, 1954.3 James K. Vardaman, Jr. ....St. Louis ...Apr. 4, 1946 Resigned Nov. 30, 1958. Lawrence Clayton ...Boston ...Feb. 14, 1947 Died Dec. 4, 1949. Thomas B. McCabe ....Philadelphia ...Apr. 15, 1948 Resigned Mar. 31, 1951. Edward L. Norton ....Atlanta ...Sept. 1, 1950 Resigned Jan. 31, 1952. Oliver S. Powell ....Minneapolis ...Sept. 1, 1950 Resigned June 30, 1952. Wm. McC. Martin, Jr. ... ....New York ...April 2, 1951 Reappointed in 1956. Term expired Jan. 31, 1970. A.L. Mills, Jr. ....San Francisco ...Feb. 18, 1952 Reappointed in 1958. Resigned Feb. 28, 1965. J.L. Robertson ....Kansas City ...Feb. 18, 1952 Reappointed in 1964. Resigned Apr. 30, 1973. C. Canby Balderston ....Philadelphia ...Aug. 12, 1954 Served through Feb. 28, 1966. Paul E. Miller ....Minneapolis ...Aug. 13, 1954 Died Oct. 21, 1954. Chas. N. Shepardson ....Dallas ...Mar. 17, 1955 Retired Apr. 30, 1967. G.H. King, Jr ....Atlanta ...Mar. 25, 1959 Reappointed in 1960. Resigned Sept. 18, 1963. George W. Mitchell ....Chicago ...Aug. 31, 1961 Reappointed in 1962. Served until Feb. 13, 1976.3 J. Dewey Daane ... .Richmond ...Nov. 29, 1963 Served until Mar. 8, 1974.3 Sherman J. Maisel ... .San Francisco ...Apr. 30, 1965 Served through May 31, 1972. Andrew F. Brimmer ....Philadelphia ...Mar. 9, 1966 Resigned Aug. 31, 1974. William W. Sherrill ....Dallas ...May 1, 1967 Reappointed in 1968. Resigned Nov. 15, 1971. Arthur F. Burns ... .New York ...Jan. 31, 1970 Term began Feb. 1, 1970. Resigned Mar. 31, 1978. John E. Sheehan ....St. Louis ...Jan. 4, 1972 Resigned June 1, 1975. Jeffrey M. Bucher ... .San Francisco ...June 5, 1972 Resigned Jan. 2, 1976. Robert C. Holland ... .Kansas City ...June 11, 1973 Resigned May 15, 1976. Henry C. Wallich ....Boston ...Mar. 8, 1974 Resigned Dec. 15, 1986. Philip E. Coldwell ....Dallas ...Oct. 29, 1974 Served through Feb. 29, 1980. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

139 Federal Reserve Date of initial Other dates and information relating Name District oath of office to membership2 Philip C. Jackson, Jr. . Atlanta July 14, 1975 Resigned Nov. 17, 1978. J. Charles Partee Richmond Jan. 5, 1976 Served until Feb. 7, 1986.3 Stephen S. Gardner ... Philadelphia Feb. 13, 1976 Died Nov. 19, 1978. David M. Lilly Minneapolis June 1, 1976 Resigned Feb. 24, 1978. G. William Miller San Francisco Mar. 8, 1978 Resigned Aug. 6, 1979. Nancy H. Teeters Chicago Sept. 18, 1978 Served through June 27, 1984. Emmett J. Rice New York June 20, 1979 Resigned Dec. 31, 1986. Frederick H. Schultz . Atlanta July 27, 1979 Served through Feb. 11, 1982. Paul A. Volcker Philadelphia Aug. 6, 1979 Resigned August 11, 1987. Lyle E. Gramley Kansas City May 28, 1980 Resigned Sept. 1, 1985. Preston Martin San Francisco Mar. 31, 1982 Resigned April 30, 1986. Martha R. Seger Chicago July 2, 1984 Resigned March 11, 1991. Wayne D. Angell Kansas City Feb. 7, 1986 Served through Feb. 9, 1994. Manuel H. Johnson ... Richmond Feb. 7, 1986 Resigned August 3, 1990. H. Robert Heller San Francisco Aug. 19, 1986 Resigned July 31, 1989. Edward W. Kelley, Jr. Dallas May 26, 1987 Reappointed in 1990; resigned Dec. 31, 2001. Alan Greenspan New York Aug. 11, 1987 Reappointed in 1992. John P. LaWare Boston Aug. 15, 1988 Resigned April 30, 1995. David W. Mullins, Jr. St. Louis May 21, 1990 Resigned Feb. 14, 1994. Lawrence B. Lindsey . Richmond Nov. 26, 1991 Resigned Feb. 5, 1997. Susan M. Phillips Chicago Dec. 2, 1991 Served through June 30, 1998. Alan S. Blinder Philadelphia June 27, 1994 Term expired Jan. 31, 1996. Janet L. Yellen San Francisco Aug. 12, 1994 Resigned Feb. 17, 1997. Laurence H. Meyer ... St. Louis June 24, 1996 Term expired Jan. 31, 2002. Alice M. Rivlin Philadelphia June 25, 1996 Resigned July 16, 1999. Roger W. Ferguson, Jr Boston Nov. 5, 1997 Reappointed in 2001. Edward M. Gramlich . Richmond Nov. 5, 1997 Susan S. Bies Chicago Dec. 7, 2001 Mark W. Olson Minneapolis Dec. 7, 2001 Chairmen 4 Vice Chairmen4 Charles S. Hamlin Aug. 10, 1914-Aug. 9, 1916 Frederic A. Delano Aug. 10, 1914-Aug. 9, 1916 W.P.G. Harding Aug. 10, 1916-Aug. 9, 1922 Paul M. Warburg Aug. 10, 1916-Aug. 9, 1918 Daniel R. Crissinger May 1, 1923-Sept. 15, 1927 Albert Strauss Oct. 26, 1918-Mar. 15, 1920 Roy A. Young Oct. 4, 1927-Aug. 31, 1930 Edmund Piatt July 23, 1920-Sept. 14, 1930 Eugene Meyer Sept. 16, 1930-May 10, 1933 J.J. Thomas Aug. 21, 1934-Feb. 10, 1936 Eugene R. Black May 19, 1933-Aug. 15, 1934 Ronald Ransom Aug. 6, 1936-Dec. 2, 1947 Marriner S. Eccles Nov. 15, 1934-Jan. 31, 19485 C. Canby Balderston Mar. 11, 1955-Feb. 28, 1966 Thomas B. McCabe Apr. 15, 1948-Mar. 31, 1951 J.L. Robertson Mar. 1, 1966-Apr. 30, 1973 Wm. McC. Martin, Jr Apr. 2, 1951-Jan. 31, 1970 George W. Mitchell May 1, 1973-Feb. 13, 1976 Arthur F. Burns Feb. 1, 1970-Jan. 31, 1978 Stephen S. Gardner Feb. 13, 1976-Nov. 19, 1978 G. William Miller Mar. 8, 1978-Aug. 6, 1979 Frederick H. Schultz July 27, 1979-Feb. 11, 1982 Paul A. Volcker Aug. 6, 1979-Aug. 11, 1987 Preston Martin Mar. 31, 1982-Apr. 30, 1986 Alan Greenspan Aug. 11, 1987—6 Manuel H. Johnson Aug. 4, 1986-Aug. 3, 1990 David W. Mullins, Jr July 24, 1991-Feb. 14, 1994 Alan S. Blinder June 27, 1994-Jan. 31, 1996 Alice M. Rivlin June 25, 1996-July 16, 1999 Roger W. Ferguson, Jr. ....Oct. 5, 1999- Ex-OFFICIO MEMBERS1 Secretaries of the Treasury Comptrollers of the Currency W.G. McAdoo Dec. 23, 1913-Dec. 15, 1918 John Skelton Williams Feb. 2, 1914-Mar. 2, 1921 Carter Glass Dec. 16, 1918-Feb. 1, 1920 Daniel R. Crissinger Mar. 17, 1921-Apr. 30, 1923 David F. Houston Feb. 2, 1920-Mar. 3, 1921 Henry M. Dawes May 1, 1923-Dec. 17, 1924 Andrew W. Mellon Mar. 4, 1921-Feb. 12, 1932 Joseph W. Mcintosh Dec. 20, 1924-Nov. 20, 1928 Ogden L. Mills Feb. 12, 1932-Mar. 4, 1933 J.W. Pole Nov. 21, 1928-Sept. 20, 1932 William H. Woodin Mar. 4, 1933-Dec. 31, 1933 J.F.T. O'Connor May 11, 1933-Feb. 1, 1936 Henry Morgenthau, Jr Jan. 1, 1934-Feb. 1, 1936 1. Under the provisions of the original Federal Reserve Act, the Federal members in office on the date of that act should continue to serve until Feb. 1, Reserve Board was composed of seven members, including five appointive 1936, or until their successors were appointed and had qualified; and that members, the Secretary of the Treasury, who was ex-officio chairman of the thereafter the terms of members should be fourteen years and that the designa- Board, and the Comptroller of the Currency. The original term of office was ten tion of Chairman and Vice Chairman of the Board should be for a term of four years, and the five original appointive members had terms of two, four, six, years. eight, and ten years respectively. In 1922 the number of appointive members was 2. Date after words "Resigned" and "Retired" denotes final day of service. increased to six, and in 1933 the term of office was increased to twelve years. 3. Successor took office on this date. The Banking Act of 1935, approved Aug. 23, 1935, changed the name of the 4. Chairman and Vice Chairman were designated Governor and Vice Federal Reserve Board to the Board of Governors of the Federal Reserve System Governor before Aug. 23, 1935. and provided that the Board should be composed of seven appointive mem- 5. Served as Chairman Pro Tempore from February 3, 1948, to April 15, bers; that the Secretary of the Treasury and the Comptroller of the Currency 1948. should continue to serve as members until Feb. 1, 1936; that the appointive 6. Served as Chairman Pro Tempore from March 3, 1996, to June 20, 1996. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1 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 A3 2 Open-end investment companies—Net sales A9 Federal Reserve open market transactions and assets A32 Corporate profits and their distribution A32 Domestic finance companies—Assets and liabilities Federal Reserve Banks A33 Domestic finance companies—Owned and managed A10 Condition and Federal Reserve note statements receivables All Maturity distribution of loan and security holding Real Estate A34 Mortgage markets—New homes Monetary and Credit Aggregates A3 5 Mortgage debt outstanding A12 Aggregate reserves of depository institutions and monetary base A13 Money stock and debt measures Consumer Credit A36 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 A37 Funds raised in U.S. credit markets A17 Large domestically chartered commercial banks A3 9 Summary of financial transactions A19 Small domestically chartered commercial banks A40 Summary of credit market debt outstanding A20 Foreign-related institutions A41 Summary of financial assets and liabilities Financial Markets DOMESTIC NONFINANCIAL STATISTICS A22 Commercial paper outstanding A22 Prime rate charged by banks on short-term Selected Measures business loans A23 Interest rates—Money and capital markets A42 Nonfinancial business activity A24 Stock market—Selected statistics A42 Labor force, employment, and unemployment A43 Output, capacity, and capacity utilization A44 Industrial production—Indexes and gross value Federal Finance A46 Housing and construction A25 Federal fiscal and financing operations A47 Consumer and producer prices A26 US. budget receipts and outlays A48 Gross domestic product and income A27 Federal debt subject to statutory limitation A49 Personal income and saving Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

2 Federal Reserve Bulletin • February 2002 INTERNATIONAL STATISTICS Securities Holdings and Transactions A60 Foreign transactions in securities Summary Statistics A61 Marketable U.S. Treasury bonds and A50 U.S. international transactions notes—Foreign transactions A51 U.S. foreign trade A51 U.S. reserve assets Interest and Exchange Rates A51 Foreign official assets held at Federal Reserve A62 Foreign exchange rates Banks A52 Selected U.S. liabilities to foreign official A63 GUIDE TO SPECIAL TABLES AND institutions STATISTICAL RELEASES Reported by Banks in the United States SPECIAL TABLES A52 Liabilities to, and claims on, foreigners A53 Liabilities to foreigners A64 Assets and liabilities of commercial banks, A55 Banks' own claims on foreigners December 31, 2001 A56 Banks' own and domestic customers' claims on A66 Terms of lending at commercial banks, foreigners November 2001 A56 Banks' own claims on unaffiliated foreigners A72 Assets and liabilities of U.S. branches and A57 Claims on foreign countries—Combined agencies of foreign banks, June 30, 2001 domestic offices and foreign branches A76 INDEX TO STATISTICAL TABLES Reported by Nonbanking Business Enterprises in the United States A58 Liabilities to unaffiliated foreigners A59 Claims on unaffiliated foreigners Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3 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 NonfinancialS tatistics • February 2002 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 July Aug. Sept. Oct. Nov. Reserves of depository institutions2 1 Total -9.0 -2.1 1.9 71.7 25.8 8.7 540.1 -266.0 -119.2 2 Required -11.3 -3.6 4.3 10.4 26.1 14.4 4.4 160.2 -134.2 3 Nonborrowed -6.7 .4 .9 60.4 24.3 11.8 445.8 -210.8 -118.3 4 Monetary base1 2.8 6.4 5.4 14.7 11.6 15.4 47.2 -19.1 -.9 Concepts of money and debt1 5 Ml -3.3 5.0 5.5 14.5 13.8 8.6 58.1 -41.3 -.2 6 M2 6.0 9.8 9.7 10.7 9.1 8.2 26.7 -1.5 9.2 7 M3 7.3 13.1 14.7 9.7 6.9 .8 25.0 10.6 16.1 8 Debt 4.4 4.8 5.9 5.8 3.7r 6.7 8.0 4.7 n.a. Nontransaction components 9 In M25 8.8 11.2 10.9 9.6 7.8 8.1 18.0 9.9 11.9 10 In M3 only6 10.4 20.7 25.9 7.6 2.2 -14.8 21.1 37.0 30.5 Time and savings deposits Commercial banks 11 Savings, including MMDAs 12.1 17.4 20.4 19.8 12.4 24.5 32.9 12.4 29.1 12 Smalltime7 5.6 2.5 -7.8 -10.3 -13.9 -7.5 -8.6 -11.2 -17.9 13 Large time8-9 4.1 -1.3 -.2 -4.0 -11.4 -19.4 6.9r 23.5r 18.4 Thrift institutions 14 Savings, including MMDAs .4 6.5 22.3 25.3 23.1 24.3 22.9 33.4 26.7 15 Smalltime7 9.3 6.5 4.0 ^1.8 -8.2 -9.9 -4.5 -14.9 -16.9 16 Large time8 10.6 11.1 12.8 16.0 20.7 31.1 13.6 1.0 -21.7 Money market mutual funds 17 Retail 10.4 12.2 7.0 4.9 13.4 -9.6 17.1 16.2 4.3 18 Institution-only 20.5 50.8 55.1 21.9 9.7 -20.1 53.0 76.4 30.0 Repurchase agreements and eurodollars 19 Repurchase agreements10 2.1 -7.1 21.0 -9.6 -12.4 -11.5 -40.8 -11.1 62.6 20 Eurodollars10 10.3 38.6 8.1 6.4 28.5 -4.9 26.8 -12.3 47.6 Debt components4 21 Federal -8.0 -5.2 -7.0 3.1 4.5 7.6 12.3 .0 n.a. 22 Nonfederal 7.4 7.1 8.7 6.3 3.6 6.5 7.1 5.7 n.a. 1. Unless otherwise noted, rates of change are calculated from average amounts outstand- depository institutions, and (4) eurodollars (overnight and term) held by U.S. residents at ing during preceding month or quarter. foreign branches of U.S. banks worldwide and at all banking offices in the United Kingdom 2. Figures incorporate adjustments for discontinuities, or "breaks," associated with 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 Sept. Oct. Nov. Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 628.193 613,448 616.947 616,686 606,617 617,176 609,341 616,000 619,203 621,108 U.S. government securities2 2 Bought outright—System account3 533,581 541.533 547,415 541,322 543,577 543,435 544,264 546,037 549,068 549,494 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 44,704 33.035 32.049 33,154 27,405 37,843 26,704 31,004 34,257 35,243 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 3,344 9 50 7 10 10 77 90 33 9 9 Seasonal credit 89 68 33 67 64 54 39 31 30 33 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 7.551 490 479 915 -38 -146 -14 71 578 679 13 Other Federal Reserve assets 38,914 38,302 36,911 41,213 35,589 35,968 38,261 38,757 35,227 35,639 14 Gold stock 11,044 11,045 11,045 11,045 11,045 11,045 11,045 11,045 11,045 11.045 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 32,984 33,045 33.104 33,041 33,055 33,069 33,083 33,097 33,111 33,113 ABSORBING RESERVE FUNDS 17 Currency in circulation 613,474 615,444 622,206 616,113 614,807 614,653 617,406 621,370 622,985 626,232 18 Reverse repurchase agreements—triparty4 ... 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 424 438 435 442 451 438 436 438 436 429 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 6.644 5,234 5,131 4,722 5.321 5,121 4,987 4,690 5.603 5,074 2\ Foreign 292 505 213 632 579 112 96 149 172 327 22 Service-related balances and adjustments . . 7,796 8,160 8,012 8,096 8.057 8,223 7,724 7,788 8,237 8.151 23 Other 342 262 267 257 262 236 280 256 274 263 24 Other Federal Reserve liabilities and capital . . 19,081 17,892 17,910 17,958 17,844 17,879 18,054 17,967 17,766 17,815 25 Reserve balances with Federal Reserve Banks5 26.368 11,802 9.123 14,752' 5,595 16,827 6.687 9,684 10,087 9,175 End-of-month figures Wednesday figures Sept. Oct. Nov. Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 SUPPLYING RESERVE FUNDS 1 Reserve Bank credit outstanding 619,548 625,350 624,228 624,125 610,745 625,350 611,452 627.260 623,368 627,136 U.S. government securities2 2 Bought outright—System account3 534,136 544.287 550,314 544.024 544,190 544,287 545.603 547.300 549,166 550,765 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 47,880 45,050 36,500 37.045 30.050 45,050 27,925 37,755 36,250 39,350 7 Acceptances 0 0 0 0 0 0 0 0 0 0 Loans to depository institutions 8 Adjustment credit 7 15 3 1 42 15 61 1 4 3 9 Seasonal credit 81 40 35 64 60 40 37 28 31 33 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 -549 244 1,523 1.640 646 244 -681 3,283 2,369 1,001 13 Other Federal Reserve assets 37,983 35,703 35,842 41,342 35,747 35,703 38,498 38.882 35,539 35,974 14 Gold stock 11,045 11,045 11,045 11.045 11,045 11,045 11,045 11,045 11,045 11.045 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 33.013 33,069 33.139 33.041 33,055 33,069 33,083 33,097 33,111 33,111 ABSORBING RESERVE FUNDS 17 Currency in circulation 612.069 616.853 624,672 616,220 615,437 616,853 619,660 623,072 626,282 626,851 18 Reverse repurchase agreements—triparty4 ... 0 0 0 0 0 0 0 0 0 0 19 Treasury cash holdings 422 435 434 453 439 435 438 437 428 434 Deposits, other than reserve balances, with Federal Reserve Banks 20 Treasury 9.796 5,112 6.219 5,038 4.297 5,112 5,183 5,347 4.627 4,313 21 Foreign 609 75 528 744 282 75 124 471 163 351 22 Service-related balances and adjustments . 8,016 8,223 8,525 8,096 8,057 8,223 7,724 7,788 8,237 8.151 23 Other 191 271 236 256 251 271 278 262 257 272 24 Other Federal Reserve liabilities and capital . 17,875 17,773 18,101 17,734 17,597 17,773 17,822 17,604 17,606 17,858 25 Reserve balances with Federal Reserve Banks: 16.829 22.922r 11.896 21.872 10,685 22,922r 6,551 18,622 12,125 15,261 1. Amounts of cash held as reserves are shown in table 1.12, line 2. 4. Cash value of agreements arranged through third-party custodial banks. These agree- 2. Includes securities loaned—fully guaranteed by U.S. government securities pledged ments are collateralized by U.S. government and federal agency securities. with Federal Reserve Banks—and excludes securities sold and scheduled to be bought back 5. Excludes required clearing balances and adjustments to compensate for float, under matched sale-purchase transactions. 3. Includes compensation that adjusts for the effects of inflation on the principal of inflation-indexed securities. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A6 Domestic Nonfinancial Statistics • February 2002 1.12 RESERVES AND BORROWINGS Depository Institutions1 Millions of dollars Prorated monthly averages of biweekly averages RReesseerrvvee ccllaassssiiffiiccaattiioonn 1998 1999 2000 2001 Dec. Dec. Dec. May June July Aug. Sept. Oct. Nov. 1 Reserve balances with Reserve Banks2 9,026 5,262 7,022 7,604 7,041 7,665 7,552 25,564 12,127 8,943 7 Total vault cash3 44,294 60,619 45,245 43,267 43,139 43,911 44,007 43,436 45,022 43,067 3 Applied vault cash4 36,183 36,392 31,451 31,771 31,174 31,619 32,051 31,940 32,476r 31,216 4 Surplus vault cash5 8,111 24,227 13.794 11,497 11,966 12,291 11,956 11,496 12,546 11,851 5 Total reserves6 45,209 41,654 38,473 39,374 38,215 39,285 39.603 57,504 44,604 40,159 6 Required reserves 43,695 40,357 37,046 38,355 36,855 37,904 38,397 38,491 43,589' 38,696 7 Excess reserve balances at Reserve Banks7 1,514 1,297 1,427 1,019 1,360 1,380 1,206 19,013 1,014' 1,463 8 Total borrowing at Reserve Banks 117 320 210 213 229 283 183 3,385 127 84 9 Adjustment 101 179 99 134 110 109 19 3,292 60 51 10 Seasonal 15 67 111 79 120 174 164 93 67 33 11 Special Liquidity Facility8 0 74 0 12 Extended credit' 0 0 0 0 0 0 0 0 0 0 Biweekly averages of daily figures for two-week periods ending on dates indicated 2001 Aug. 8 Aug. 22 Sept. 5 Sept. 19 Oct. 3 Oct. 17 Oct. 31 Nov. 14 Nov. 28 Dec. 12 1 Reserve balances with Reserve Banks2 7,642 7,029 8,287 44,460 9,368 13,635 11,212 8,317 9,625 8,556 2 Total vault cash1 44,716 44,326 42,883 42,992 44,254 45,739 44,471 43,506 42,769 42,084 3 Applied vault cash4 32,298 32,111 31,739 30,976 33,260 32,392 32,393' 30,971 31,531 30,729 4 Surplus vault cash5 12,418 12,215 11,145 12,016 10,994 13,347 12,078' 12,535 11,238 11,355 5 Total reserves6 39,940 39,140 40,026 75,436 42,628 46,027 43,605' 39,288 41,156 39,284 6 Required reserves 38,799 38,088 38,523 37,301 39,992 45,187 42,763 37,848 39,653 37.941 7 Excess reserve balances at Reserve Banks7 1,141 1,052 1,502 38,134 2,635 839 842 1,440 1,503 1,343 8 Total borrowing at Reserve Banks 214 184 156 6,717 613 82 69 119 53 60 9 Adjustment 27 9 29 6,622 538 8 10 84 22 26 10 Seasonal 188 175 127 95 75 74 59 35 32 34 11 Special Liquidity Facility8 12 Extended credit 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 credit' Seasonal credit2 Extended credit3 On On On 1/11/02 1/11/02 1/11/02 12/11/01 12/11/01 12/11/01 12/13/01 12/13/01 12/13/01 12/11/01 12/12/01 12/13/01 12/13/01 12/13/01 12/11/01 Range of rates for adjustment credit in recent years4 Range(or F.R. Bank Range (or F.R. Bank Range(or F.R. Bank level)—All of level)—All of Effective date level)—All of F.R. Banks N.Y. F.R. Banks N.Y. F.R. Banks N.Y. In effect Dec. 31, 1981 12 12 1991—Sept. 13 5-5.5 5 2001—May 15 3.50^1.00 3.50 17 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 Sept. 17 2.50-3.00 2.50 27 10-10.5 10 1992—July 2 3-3.5 3 18 2.50 2.50 30 10 10 7 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 18 3.5 3.5 8 1.50 1.50 26 9 9 Aug. 16 3.5-4 4 Dec. 11 1.25-1.50 1.25 Dec. 14 8.5-9 9 18 4 4 13 1.25 1.25 15 8.5-9 8.5 Nov. 15 4^1.75 4.75 17 8.5 8.5 17 4.75 4.75 In effect Jan. 11, 2002 1.25 1.25 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 1999—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 2000—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 2001—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. I 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 NonfinancialS tatistics • February 2002 1.15 RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS1 Requirement TTyyppee ooff ddeeppoossiitt Percentage of Effective date deposits Net transaction accounts2 1 $0 million-$42.8 million3 33333 1111122222/////3333300000/////9999999999 2 More than $42 8 million4 1111100000 1111122222/////3333300000/////9999999999 00000 1111122222/////2222277777/////9999900000 00000 1111122222/////2222277777/////9999900000 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. Effective 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 institutions 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, determined 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 TTyypp aa ee nn dd oo ff mm ttrr aa aa tt nn uu ss rrii aa tt cc yy tt iioonn 11999988 11999999 22000000 Apr. May June July Aug. Sept. Oct. U.S. TREASURY SECURITIES2 Outright transactions (excluding matched transactions) Treasury bills 1 Gross purchases 3,550 0 8,676 308 624 2,165 718 2,899 348 772 2 Gross sales 0 0 0 0 0 0 0 0 0 0 Exchanges 450,835 464,218 477,904 38,317 47,112 40,363 42,001 55,231 42,268 50,274 4 For new bills 450,835 464,218 477,904 38,317 47,112 40,363 42,001 55,231 42,268 50,274 5 Redemptions 2,000 0 24,522 3,537 3,939 0 0 0 1,543 473 Others within one year 6 Gross purchases 6,297 11,895 8,809 3,027 2,174 1,410 235 1,385 0 1.411 7 Gross sales 0 0 0 0 0 0 0 0 0 0 8 Maturity shifts 46,062 50,590 62,025 12,204 8,117 0 7,088 9,379 0 6,535 9 Exchanges -49,434 -53,315 -54,656 -7,000 -8,965 0 -7,667 -6,873 0 -11,809 10 Redemptions 2,676 1,429 3,779 4,368 2,287 0 4,668 1,055 0 0 One to five years 11 Gross purchases 12,901 19,731 14,482 4,480 2,685 1,428 4,193 810 851 22 12 Gross sales 0 0 0 0 0 0 0 0 0 0 13 Maturity shifts -37,777 -44,032 -52,068 -12,204 -1,913 0 1,838 -9,379 0 -2,164 14 Exchanges 37,154 42,604 46.177 7,000 6,508 0 7,667 5,290 0 11,809 Five to ten years 15 Gross purchases 2,294 4,303 5,871 1,390 657 0 756 935 0 422 16 Gross sales 0 0 0 0 0 0 0 0 0 0 17 Maturity shifts -5,908 -5,841 -6,801 0 -5,130 0 -8,926 1,043 0 -4,372 18 Exchanges 7,439 7,583 6,585 0 2,457 0 0 1,043 0 0 More than ten years 19 Gross purchases 4,884 9,428 5,833 913 1,241 1,419 815 720 0 1,184 20 Gross sales 0 0 0 0 0 0 0 0 0 0 21 Maturity shifts -2,377 -717 -3,155 0 -1,074 0 0 -1,043 0 0 22 Exchanges 4,842 3,139 1,894 0 0 0 0 540 0 0 All maturities 23 Gross purchases 29,926 45,357 43,670 10,118 7,380 6,422 6,716 6,749 1,199 3,811 24 Gross sales 0 0 0 0 0 0 0 0 0 0 25 Redemptions 4,676 1,429 28,301 7,905 6,226 0 4,668 1,055 1,543 473 Matched transactions 26 Gross purchases 4,430,457 4,413,430 4,399,257 381,667 398,039 367,462 392,721 406,143 508,129 431,887 27 Gross sales 4,434,358 4,431,685 4,381,188 381,895 397,600 366,411 394,381 405,627 515,429 425,110 Repurchase agreements 28 Gross purchases 512,671 281,599 0 0 0 0 0 0 0 0 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 1,984 1,592 7,472 388 6,211 -7,645 10,114 FEDERAL AGENCY OBLIGATIONS Outright transactions 31 Gross purchases 0 0 0 0 0 0 0 0 0 0 32 Gross sales 25 0 0 0 0 0 0 0 0 0 33 Redemptions 322 157 51 0 0 0 0 0 0 0 Repurchase agreements 34 Gross purchases 284,316 360,069 0 0 0 0 0 0 0 0 35 Gross sales 276,266 370,772 0 0 0 0 0 0 0 0 36 Net change in federal agency obligations 7,703 -10,859 -51 0 0 0 0 0 0 0 Reverse repurchase agreements 37 Gross purchases 0 0 0 0 0 0 0 0 0 0 38 Gross sales 0 0 0 0 0 0 0 0 0 0 Repurchase agreements 39 Gross purchases 0 304,989 890,236 85,166 120,135 65,005 106,355 103,255 406,930 110,885 40 Gross sales 0 164,349 987,501 82,154 114,832 72,065 103,255 99,850 388,805 113,715 41 Net change in triparty obligations 0 140,640 -97,265 3,012 5,303 -7,060 3,100 3,405 18,125 -2.830 42 Total net change in System Open Market Account . . 27,538 135,780 -63,877 4,996 6,895 412 3,488 9,616 10,480 7,284 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 Nonfinancial Statistics • February 2002 1.18 FEDERAL RESERVE BANKS Condition and Federal Note Statements1 Millions of dollars Wednesday End of month AAAccccccooouuunnnttt 2001 2001 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Sept. Oct. Nov. Consolidated condition statement ASSETS 1 Gold certificate account 11,045 11,045 11,045 11,045 11,045 11,045 11,045 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 1,123 1,116 1,107 1,074 1,046 1,141 1,123 1,064 Loans 4 To depository institutions 55 97 30 35 35 88 55 38 5 Other 0 0 0 0 0 0 0 0 6 Acceptances held under repurchase agreements 0 0 0 0 0 0 0 0 Tripartv obligations 7 Repurchase agreements—triparty2 45,050 27,925 37,755 36,250 39,350 47,880 45,050 36,500 Federal agency obligations3 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 544,287 545,603 547,300 549,166 550,765 534,136 544,287 550,314 11 Bought outright4 544,287 545,603 547,300 549,166 550,765 534,136 544,287 550,314 12 Bills 182,652 183,958 183,506 184,655 185,299 175,104 182,652 184,845 13 Notes 258,389 258,395 260,540 261,475 262,376 257,030 258,389 262,378 14 Bonds 103,246 103,250 103,254 103,035 103,090 102,002 103,246 103,091 15 Held under repurchase agreements 0 0 0 0 0 0 0 0 16 Total loans and securities 589,403 573,635 585,095 585,460 590,161 582,114 589,403 586,862 17 Items in process of collection 7,676 8,746 14,671 9,608 8,037 5,089 7,676 7,168 18 Bank premises 1,513 1,518 1,518 1,519 1,519 1,508 1,513 1,517 Other assets 19 Denominated in foreign currencies5 15,090 15,196 15,021 14,892 14,958 15,366 15,090 15,042 20 All other6 21,633 22,035 22,611 19,333 19,821 20,947 21,633 19,267 21 Total assets 649,682 635,490 653,268 645,131 648,787 639,410 649,682 644,165 LIABILITIES 22 Federal Reserve notes 585,342 588,131 591,519 594,673 595,220 580,619 585,342 593,031 23 Reverse repurchase agreements—triparty2 0 0 0 0 0 0 0 0 24 Total deposits 38,735 21,194 32,904 24,674 28,219 35,532 38,735 27,342 25 Depository institutions 33,278 15,609 26,825 19,627 23,283 24,937 33,278 20,359 26 U.S. Treasury—General account 5,112 5,183 5,347 4,627 4,313 9,796 5,112 6,219 27 Foreign—Official accounts 75 124 471 163 351 609 75 528 28 Other 271 278 262 257 272 191 271 236 29 Deferred credit items 7,833 8,343 11,241 8,178 7,490 5,384 7,833 5,690 30 Other liabilities and accrued dividends7 2,773 2,752 2,744 2,696 2,687 2,971 2,773 2,745 31 Total liabilities 634,683 620,420 638,409 630,221 633,616 624,506 634,683 628,809 CAPITAL ACCOUNTS 32 Capital paid in 7,269 7,274 7,277 7,281 7,370 7,266 7,269 7,354 33 Surplus 6,738 6,742 6,735 6,730 6,733 6,741 6,738 6,732 34 Other capital accounts 993 1,054 848 899 1,069 896 993 1,270 35 Total liabilities and capital accounts 649,682 635,490 653,268 645,131 648,787 639,410 649,682 644,165 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) 741,957 743,635 746,080 746,713 746,906 742,539 741,957 746,821 38 LESS: Held by Federal Reserve Banks 156,615 155,505 154,561 152,040 151,686 161,920 156,615 153,790 39 Federal Reserve notes, net 585,342 588,131 591,519 594,673 595,220 580,619 585,342 593,031 Collateral held against notes, net 40 Gold certificate account 11,045 11,045 11,045 11,045 11,045 11,045 11,045 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 1,348 0 0 0 0 0 0 43 U.S. Treasury and agency securities 572,097 573,538 578,274 581,428 581,975 567,374 572,097 579,786 44 Total collateral 585,342 588,131 591,519 594,673 595,220 580,619 585,342 593,031 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 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 Sept. Oct. Nov. 1 Total loans 55 97 30 35 35 88 55 38 2 Within fifteen days' 44 73 8 31 31 69 44 32 3 Sixteen days to ninety days 11 24 22 4 5 19 11 7 4 91 days to 1 year 0 0 0 0 0 0 0 0 5 Total U.S. Treasury securities2 544,287 545,603 547,300 549,166 550,765 534,137 544,287 550,314 6 Within fifteen days' 19,638 16,085 22,735 21,887 23,947 10,737 19,638 4,477 7 Sixteen days to ninety days 113,438 123,672 117,379 115,019 113,309 117,454 113,438 135,090 8 Ninety-one days to one year 134,127 128,752 129,352 130,027 130,323 129,491 134,127 127,556 9 One year to five years 147,078 147,078 147,808 150,147 151,091 142,304 147,078 151,093 10 Five years to ten years 50,204 50,209 50,214 53,245 53,251 55,571 50,204 53,252 11 More than ten years 79,802 79,806 79,811 78,840 78,845 78,581 79,802 78,846 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 NonfinancialS tatistics • February 2002 1.20 AGGREGATE RESERVES OF DEPOSITORY INSTITUTIONS AND MONETARY BASE1 Billions of dollars, averages of daily figures 2001 1997 1998 1999 2000 IItteemm Dec. Dec. Dec. Dec. Apr. May June July Aug. Sept. Oct. Nov. Seasonally adjusted ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS2 1 Total reserves3 46.85 45.18 41.78 38.44 38.79 38.88 38.76 39.59 39.88 57.82 45.01 40.54 2 Nonborrowed reserves4 46.52 45.07 41.46 38.23 38.74 38.67 38.53 39.31 39.69 54.44 44.88 40.45 3 Nonborrowed reserves plus extended credit5 46.52 45.07 41.46 38.23 38.74 38.67 38.53 39.31 39.69 54.44 44.88 40.45 4 Required reserves 45.16 43.67 40.48 37.01 37.51 37.86 37.40 38.21 38.67 38.81 43.99 39.07 5 Monetary base6 479.47 513.49 593.09 583.82 595.93 599.08 601.87 607.67 615.48 639.71 629.51 629.06 Not seasonally adjusted 6 Total reserves7 48.01 45.31 41.89 38.53 38.65 39.46 38.31 39.40 39.73 57.66 44.79 40.34 7 Nonborrowed reserves 47.69 45.19 41.57 38.32 38.60 39.24 38.08 39.12 39.55 54.28 44.66 40.26 8 Nonborrowed reserves plus extended credit5 47.69 45.19 41.57 38.32 38.60 39.24 38.08 39.12 39.55 54.28 44.66 40.26 9 Required reserves8 46.33 43.80 40.59 37.10 37.38 38.44 36.95 38.02 38.53 38.65 43.77 38.88 10 Monetary base9 484.98 518.27 600.72 590.06 594.92 598.57 601.67 608.22 614.51 637.94 627.86 629.90 NOT ADJUSTED FOR CHANGES IN RESERVE REQUIREMENTS10 11 Total reserves" 47.92 45.21 41.65 38.47 38.59 39.37 38.22 39.29 39.60 57.50 44.60 40.16 12 Nonborrowed reserves 47.60 45.09 41.33 38.26 38.54 39.16 37.99 39.00 39.42 54.12 44.48 40.08 13 Nonborrowed reserves plus extended credit5 47.60 45.09 41.33 38.26 38.54 39.16 37.99 39.00 39.42 54.12 44.48 40.08 14 Required reserves 46.24 43.70 40.36 37.05 37.31 38.36 36.86 37.90 38.40 38.49 43.59 38.70 15 Monetary base12 491.79 525.06 608.02 596.98 601.84 605.48 608.81 615.55 621.99 645.68 635.96 637.87 16 Excess reserves13 1.69 1.51 1.30 1.43 1.28 1.02 1.36 1.38 1.21 19.01 1.01' 1.46 17 Borrowings from the Federal Reserve .32 .12 .32 .21 .05 .21 .23 .28 .18 3.39 .13 .08 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 1997 1998 1999 2000 IItteemm Dec. Dec. Dec. Dec. Aug. Sept. Oct. Nov. Seasonally adjusted Measures2 1 Ml 1,073.4 1,097.0 1,124.8 1,088.1 1,144.1 1,199.5 1,158.2 1,158.0 2 M2 4,030.0 4,384.1 4.651.8 4,937.4 5,261.2 5,378.4 5,371.7 5,413.1 3 M3 5,432.3 6,029.7 6,531.0 7,114.3 7,679.9 7,839.7 7,908.9 8,014.8 4 Debt 15,227.9 16,279.9 17,363.5 18,282.5 18.947.21" 19,073.2 19,147.7 n.a. Ml components 5 Currency3 424.3 459.2 516.7 529.9 562.6 568.0 571.5 557755..00 6 Travelers checks4 8.1 8.2 8.2 8.0 8.8 8.4 8.1 7.8 7 Demand deposits5 395.4 379.4 356.2 311.2 315.2 365.6 327.3' 323.8 8 Other checkable deposits6 245.7 250.1 243.6 239.0 257.4 257.4 251.2 251.4 Nontransaction components 9 In M27 2,956.6 3,287.1 3,527.0 3,849.3 4,117.1 4,178.9 4,213.5 4,255.2 10 In M3 only8 1,402.3 1,645.6 1,879.2 2,176.9 2,418.7 2,461.3 2,537.2 2,601.7 Commercial banks 11 Savings deposits, including MMDAs 1,021.1 1,185.8 1,287.2 1,422.2 1,613.5 1,657.7 1,674.8 1,715.4 12 Small time deposits9 625.5 626.4 635.5 699.8 668.7 663.9 657.7 647.9 13 Large time deposits10 " 517.3 575.1 648.4 726.3 694.7 698.7r 712.4 723.3 Thrift institutions 14 Savings deposits, including MMDAs 376.8 414.1 449.0 451.6 518.3 528.2 542.9 555.0 15 Small time deposits9 342.9 325.8 320.6 344.8 347.4 346.1 341.8 337.0 16 Large time deposits'0 85.5 88.7 91.3 103.1 114.7 116.0 116.1 114.0 Money market mutual funds 17 Retail 590.2 735.1 834.7 930.9 969.2 983.0 996.3 999.9 18 Institution-only 395.2 535.5 628.1 783.1 1,019.4 1,064.4 1,132.2 1,160.5 Repurchase agreements and eurodollars 19 Repurchase agreements'2 254.3 294.5 338.2 367.3 370.6 358.0 354.7 373.2 20 Eurodollars'2 150.0 151.8 173.3 197.1 219.3 224.2 221.9 230.7 Debt components 21 Federal debt 3,800.4 3,751.1 3,660.1 3,400.4 3,339.0 3,373.2 3,373.2 n.a. 22 Nonfederal debt 11,427.5 12,528.9 13,703.4 14,882.1 15,608.2 15,700.0r 15,774.5 n.a. Not seasonally adjusted Measures1 23 Ml 1,096.9 1,120.4 1,148.3 1,112.3 1,141.3 1,194.3 1,155.5 1,164.8 24 M2 4,051.4 4,406.4 4,675.9 4,966.0 5,240.8 5,363.0 5,343.7 5,402.3 25 M3 5,457.7 6,061.9 6,568.6 7,159.7 7,637.8 7,791.7 7,855.9 8,006.7 26 Debt 15,222.4 16,267.5 17,355.0 18,273.5 18,862.6r 18,990. lr 19,067.3 n.a. Ml components 27 Currency3 428.1 463.3 521.5 535.2 561.9 566.3 569.9 575.8 28 Travelers checks4 8.3 8.4 8.4 8.1 8.4 8.3 8.1 7.9 29 Demand deposits5 412.4 395.9 371.8 326.5 315.5 364.6 327.4r 329.3 30 Other checkable deposits6 248.2 252.8 246.6 242.5 255.5 255.2 249.9 251.7 Nontransaction components 31 In M27 2,954.5 3,286.0 3,527.6 3,853.7 4,099.5 4,168.8 4,188.2 4,237.5 32 In M3 only8 1,406.3 1,655.5 1,892.8 2,193.7 2,397.0 2,428.6 2,512.2 2,604.5 Commercial banks 33 Savings deposits, including MMDAs 1,020.4 1,186.0 1,288.8 1.426.9 1,607.4 1,655.7 1,662.4 1,709.9 34 Small time deposits9 625.3 626.5 635.7 700.0 667.9 664.1 658.7 649.2 35 Large time deposits'0 " 516.7 574.5 647.7 725.6 690.7 693.9 708.5 723.6 Thrift institutions 36 Savings deposits, including MMDAs 376.5 414.2 449.6 453.1 516.3 527.5 538.8 553.2 37 Small time deposits9 342.8 325.8 320.7 345.0 347.0 346.2 342.3 337.6 38 Large time deposits'0 85.4 88.6 91.2 103.0 114.0 115.2 115.5 114.1 Money market mutual funds 39 Retail 589.5 733.5 832.8 928.7 960.8 975.2 986.0 987.5 40 Institution-only 402.3 547.5 643.2 801.4 1,005.2 1,042.4 1,117.8 1.165.2 Repurchase agreements and eurodollars 41 Repurchase agreements'2 249.5 290.4 334.7 364.2 370.1 355.3 349.9 371.6 42 Eurodollars'2 152.3 154.5 176.0 199.5 217.0 221.8 220.5 230.0 Debt components 43 Federal debt 3,805.8 3,754.9 3,663.2 3,403.5 3,281.0 3,319.1 3,318.2 n.a. 44 Nonfederal debt 11,416.6 12,512.5 13,691.8 14,870.0 15,581.6r 15,671.1 15,749.1 n.a. Footnotes appear on following page. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A14 Domestic Nonfinancial Statistics • February 2002 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 Nov.r Mayr June' July' Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Seasonally adjusted Assets 1 Bank credit 5,165.5 5,331.6 5,328.3 5,328.9 5,346.2 5,419.6 5,400.2 5,427.8 5,442.7 5,434.1 5,430.8 5,403.0 7 Securities in bank credit 1,310.4 1,370.7 1,380.5 1,386.4 1,417.7 1,438.1 1,465.6 1,477.4 1,505.5 1,477.0 1,475.0 1,452.9 U.S. government securities 786.2 766.8 764.4 770.1 783.5 795.0 814.7 824.6 832.9 813.9 819.5 825.7 4 Other securities 524.3 603.9 616.1 616.2 634.2 643.2 651.0 652.7 672.6 663.1 655.5 627.2 Loans and leases in bank credit2 .... 3,855.1 3,960.9 3,947.8 3,942.5 3,928.5 3,981.5 3,934.6 3,950.4 3,937.2 3,957.1 3,955.9 3,950.2 6 Commercial and industrial 1,083.6 1,097.6 1,080.9 1,070.4 1,063.8 1,067.7 1,051.5 1,039.7 1,042.3 1,041.8 1,042.0 1,034.2 7 Real estate 1,651.9 1,705.0 1,708.3 1,717.5 1,715.9 1,723.3 1,733.1 1,748.6 1,745.3 1,748.2 1,746.9 1,750.0 8 Revolving home equity 127.5 135.3 136.3 137.5 139.4 142.1 147.4 149.9 149.3 149.4 150.0 150.4 9 Other 1,524.4 1.569.7 1,572.0 1,580.0 1,576.5 1,581.2 1,585.7 1,598.7 1,595.9 1,598.8 1,596.9 1,599.6 in Consumer 536.4 553.4 551.8 549.9 547.9 548.4 552.6 559.6 556.0 556.3 561.6 564.1 11 Security3 165.3 168.2 172.1 170.2 171.1 181.4 149.9 150.2 144.0 158.0 150.9 149.7 1? Other loans and leases 418.0 436.8 434.7 434.5 429.8 460.8 447.4 452.3 449.6 452.7 454.5 452.1 n Interbank loans 245.1 283.0 267.7 273.0 287.8 355.8 315.8 306.9 317.4 306.7 305.1 304.3 14 Cash assets4 274.1 282.3 275.5 288.8 284.1 329.2 300.2 292.4 284.6 320.0 296.6 269.6 15 Other assets5 384.9 416.7 408.8 419.1 432.7 470.7 490.4 479.1 474.6 474.5 478.1 489.6 16 Total assets6 6,006.9 6,247.8 6,214.3 6,243.3 6,283.5 6,507.4 6,436.7 6,435.7 6,448.9 6,464.8 6,440.2 6,395.8 Liabilities 17 Deposits 3,782.2 4,011.5 4,045.5 4,071.4 4,083.7 4,208.9 4,164.3 4,184.5 4,158.0 4,226.9 4,189.5 4.158.5 18 Transaction 601.0 613.1 601.0 606.1 611.0 689.2 637.2 631.5 599.8 652.5 642.8 633.7 19 Nontransaction 3,181.2 3,398.4 3,444.4 3.465.3 3,472.7 3,519.8 3,527.0 3,553.0 3.558.2 3,574.4 3,546.7 3,524.8 ?0 Large time 915.8 967.0 980.0 975.2 965.1 964.6 976.5 976.0 973.2 982.2 973.6 976.3 71 Other 2,265.5 2,431.4 2,464.4 2,490.1 2,507.6 2,555.2 2,550.6 2,577.0 2,584.9 2,592.2 2,573.1 2,548.5 72 Borrowings 1,188.5 1.238.8 1,205.4 1,217.4 1,228.2 1,282.1 1,261.0 1,237.2 1,245.6 1,233.0 1,227.2 1,246.0 73 From banks in the U.S 365.7 384.1 382.0 390.0 398.1 443.6 421.6 402.8 423.8 404.6 392.4 390.7 74 From others 822.9 854.7 823.4 827.4 830.1 838.5 839.4 834.4 821.8 828.3 834.8 855.3 75 Net due to related foreign offices 244.3 207.4 184.5 191.0 194.4 170.8 176.6 161.1 163.3 152.1 169.7 157.9 26 Other liabilities 357.8 350.5 362.6 342.6 356.1 409.6 382.2 415.7 451.2 431.4 420.6 375.7 27 Total liabilities 5,572.8 5,808.2 5,797.9 5,822.5 5,862.5 6,071.4 5,984.0 5,998.6 6,018.1 6,043.4 6,007.0 5,938.1 28 Residual (assets less liabilities)7 434.2 439.6 416.4 420.9 421.0 436.0 452.7 437.1 430.8 421.5 433.1 457.7 Not seasonally adjusted Assets 79 Bank credit 5,184.7 5,320.9 5,321.1 5,308.2 5,328.8 5,414.0 5,408.1 5,448.3 5,467.1 5,454.3 5,442.7 5,426.8 30 Securities in bank credit 1,314.4 1,369.9 1,379.9 1,377.3 1,410.9 1,434.4 1,463.4 1,481.3 1,508.9 1.480.0 1,477.7 1,457.7 31 U.S. government securities 787.3 767.7 764.8 766.1 778.9 791.9 809.7 825.0 833.2 814.3 819.3 825.9 37 Other securities 527.1 602.2 615.1 611.3 632.0 642.4 653.7 656.3 675.8 665.7 658.3 631.8 33 Loans and leases in bank credit2 .... 3,870.3 3,950.9 3,941.3 3,930.9 3,918.0 3,979.6 3,944.6 3,967.0 3,958.2 3,974.4 3,965.0 3,969.1 34 Commercial and industrial 1,084.6 1,099.9 1,083.2 1,069.6 1,057.7 1,064.4 1,051.0 1,040.8 1,044.8 1,042.7 1,042.7 1,035.1 35 Real estate 1,657.4 1,705.4 1,707.6 1,716.6 1,719.0 1,726.9 1,736.8 1,754.5 1,752.5 1,755.3 1,751.0 1,755.5 36 Revolving home equity 128.1 135.3 136.4 137.9 140.2 143.4 148.6 150.7 150.2 150.3 150.7 151.0 37 Other • 1,529.3 1,570.0 1,571.2 1,578.6 1,578.8 1,583.5 1,588.2 1,603.9 1,602.3 1,605.0 1,600.3 1,604.4 38 Consumer 536.8 551.2 549.1 547.4 548.9 550.6 552.4 560.0 555.1 556.1 562.5 565.9 39 Credit cards and related plans . . 208.7 218.9 217.2 216.8 218.0 217.1 218.3 226.2 220.6 222.3 229.3 232.1 40 Other 328.1 332.3 331.9 330.6 331.0 333.5 334.0 333.8 334.5 333.8 333.2 333.8 41 Security3 171.3 162.2 167.6 162.5 162.6 175.2 156.2 156.9 153.8 164.8 153.1 157.5 47 Other loans and leases 420.1 432.4 433.8 434.9 429.7 462.6 448.2 454.8 451.9 455.5 455.8 455.2 43 Interbank loans 251.8 276.4 265.5 265.3 276.4 343.9 309.3 315.3 327.8 318.4 308.1 310.2 44 Cash assets4 282.0 280.0 271.6 279.7 272.3 324.5 300.7 301.2 283.5 339.7 298.4 284.9 45 Other assets5 384.5 417.1 409.7 417.7 429.8 470.7 485.9 478.6 475.9 474.4 473.0 490.0 46 Total assets6 6,040.2 6,228.4 6,201.9 6,204.5 6,239.8 6,485.0 6,434.3 6,472.7 6,483.9 6,516.2 6,451.5 6,441.0 Liabilities 47 Deposits 3,804.2 3,999.5 4,026.5 4,039.7 4,043.1 4,183.4 4,151.7 4,207.8 4,176.9 4,259.9 4,199.1 4,184.6 48 Transaction 607.1 603.4 600.7 599.8 597.2 683.1 631.4 637.7 596.1 667.2 641.6 647.9 49 Nontransaction 3,197.0 3,396.1 3,425.8 3,439.9 3,445.9 3,500.3 3,520.3 3,570.1 3,580.8 3,592.7 3,557.5 3,536.7 50 Large time 923.2 965.7 970.4 961.3 951.6 953.2 970.3 983.8 977.5 988.2 981.6 987.9 51 Other 2,273.9 2,430.4 2,455.4 2,478.6 2.494.3 2,547.2 2,550.0 2,586.3 2,603.3 2,604.5 2,575.9 2,548.8 52 Borrowings 1,196.8 1,243.8 1,206.2 1,208.2 1,206.7 1,276.8 1,258.6 1,245.6 1,256.1 1,245.0 1,232.0 1,253.0 53 From banks in the U.S 366.5 387.3 382.8 386.7 389.9 433.8 416.4 403.6 425.4 406.7 391.8 390.8 54 From others 830.3 856.6 823.4 821.4 816.8 843.0 842.3 841.9 830.7 838.3 840.2 862.2 55 Net due to related foreign offices 246.5 206.6 180.7 184.7 193.5 172.7 177.1 163.1 166.0 153.0 170.6 160.3 56 Other liabilities 359.9 351.3 360.4 338.1 356.0 410.0 382.3 418.2 453.3 432.2 423.5 379.8 57 Total liabilities 5,607.4 5,801.2 5,773.9 5,770.6 5,799.3 6,042.8 5,969.6 6,034.6 6,052.3 6,090.2 6,025.2 5,977.7 58 Residual (assets less liabilities)7 432.9 427.2 428.0 433.9 440.6 442.1 464.7 438.1 431.6 426.1 426.3 463.3 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A16 Domestic Financial Statistics • February 2002 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 Nov.1" May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Seasonally adjusted Assets 1 Bank credit 4,576.0 4,718.6 4,723.1 4,732.2 4,750.8 4,827.2 4,813.2 4,835.3 4,846.2 4.836.3 4,839.1 4,818.5 2 Securities in bank credit 1,112.9 1,155.0 1,162.6 1,166.3 1,197.4 1,215.8 1,239.4 1,249.9 1,271.8 1,245.9 1,249.3 1,232.5 3 U.S. government securities 718.4 698.6 698.6 706.2 720.2 728.3 742.5 750.1 755.6 736.7 745.7 755.3 4 Other securities 394.5 456.4 464.0 460.1 477.2 487.5 496.9 499.8 516.2 509.2 503.6 477.2 5 Loans and leases in bank credit2 .... 3,463.1 3,563.6 3,560.5 3,565.9 3,553.4 3,611.3 3.573.8 3,585.4 3,574.3 3,590.4 3,589.8 3.586.0 6 Commercial and industrial 877.4 879.5 869.8 864.5 859.0 862.6 850.8 838.9 841.9 840.4 839.9 834.7 7 Real estate 1,633.6 1,686.8 1,690.1 1.699.3 1,697.5 1,704.5 1.714.3 1,729.6 1,726.3 1,729.1 1,727.8 1,731.1 8 Revolving home equity 127.5 135.3 136.3 137.5 139.4 142.1 147.4 149.9 149.3 149.4 150.0 150.4 y Other 1,506.1 1,551.5 1,553.9 1,561.8 1.558.1 1,562.5 1,566.9 1,579.7 1,576.9 1.579.8 1,577.9 1,580.7 10 Consumer 536.4 553.4 551.8 549.9 547.9 548.4 552.6 559.6 556.0 556.3 561.6 564.1 ii Security3 65.3 75.2 80.8 83.5 86.5 102.4 77.2 73.3 69.0 79.4 72.9 73.8 12 Other loans and leases 350.4 368.8 368.0 368.7 362.5 393.5 378.8 384.0 381.1 385.2 387.5 382.4 13 Interbank loans 218.1 253.9 246.4 251.8 267.6 329.8 291.7 281.3 293.9 280.6 281.7 276.0 14 Cash assets4 235.6 244.9 239.1 252.0 246.6 283.7 260.9 254.9 246.7 281.7 258.9 233.3 15 Other assets5 349.4 379.3 371.7 388.8 402.6 437.6 458.2 444.7 443.4 439.0 445.2 450.8 16 Total assets6 5,316.9 5,531.3 5,514.8 5,558.5 5,600.6 5,810.7 5,754.5 5,746.1 5,760.3 5,767.5 5,754.8 5,708.2 Liabilities 17 3,400.3 3,602.9 3,626.7 3,657.7 3,676.8 3,799.5 3,742.0 3,756.0 3,738.5 3,797.5 3,759.2 3,724.3 18 Transaction 590.1 602.5 591.6 596.9 601.5 676.9 626.5 620.8 588.9 641.8 632.3 623.1 19 Nontransaction 2,810.2 3,000.4 3,035.1 3,060.7 3.075.3 3,122.6 3,115.5 3,135.3 3,149.6 3,155.7 3,126.9 3,101.2 20 Large time 546.9 571.3 573.1 573.0 570.1 569.8 567.7 560.6 567.1 565.8 556.2 555.0 21 Other 2,263.3 2,429.1 2,462.1 2,487.8 2,505.2 2,552.8 2.547.8 2,574.7 2,582.6 2,589.9 2,570.7 2.546.2 22 Borrowings 965.0 1,019.5 989.3 1,006.2 1,017.6 1.060.1 1,052.6 1,025.0 1.028.6 1,011.9 1,025.6 1,035.6 23 From banks in the U.S 347.1 363.8 359.5 367.7 377.4 412.9 398.1 378.6 397.2 375.3 371.8 369.6 24 From others 617.9 655.7 629.8 638.5 640.1 647.2 654.5 646.4 631.5 636.6 653.8 666.0 25 Net due to related foreign offices 237.0 211.8 204.1 207.1 205.7 188.5 193.8 191.9 190.9 185.5 195.4 193.4 26 Other liabilities 284.6 264.0 277.7 263.2 277.6 329.2 307.2 338.1 369.8 352.1 345.4 299.7 27 Total liabilities 4,886.9 5,098.2 5,097.7 5,134.2 5,177.7 5,377.2 5,295.5 5,311.0 5,327.9 5,347.0 5,325.6 5,253.0 28 Residual (assets less liabilities)7 429.9 433.1 417.0 424.3 422.9 433.4 459.0 435.1 432.4 420.5 429.2 455.3 Not seasonally adjusted Assets 29 Bank credit 4,592.4 4,712.6 4,719.7 4.716.0 4.739.8 4,823.3 4,818.2 4,853.0 4.864.8 4,853.6 4.852.5 4,838.3 30 Securities in bank credit 1,116.9 1,154.2 1,161.9 1,157.3 1,190.6 1,212.1 1,237.2 1,253.8 1,275.3 1.248.8 1,252.0 1,237.3 31 U.S. government securities 719.5 699.5 699.0 702.2 715.6 725.3 737.6 750.5 755.9 737.1 745.5 755.5 32 Other securities 397.4 454.8 462.9 455.1 475.0 486.8 499.6 503.3 519.4 511.7 506.5 481.8 33 Loans and leases in bank credit2 .... 3,475.5 3,558.3 3,557.7 3,558.7 3.549.2 3,611.2 3,581.0 3,599.2 3,589.5 3,604.8 3,600.4 3.600.9 34 Commercial and industrial 877.8 884.8 873.2 864.4 854.2 859.7 850.1 839.3 843.6 840.7 839.9 834.7 35 Real estate 1,639.2 1,687.2 1,689.5 1,698.3 1,700.6 1,708.1 1,718.0 1,735.5 1.733.5 1,736.2 1,732.0 1,736.5 36 Revolving home equity 128.1 135.3 136.4 137.9 140.2 143.4 148.6 150.7 150.2 150.3 150.7 151.0 37 Other 1,511.0 1,551.8 1,553.1 1,560.4 1,560.4 1,564.7 1.569.4 1,584.8 1,583.3 1.585.9 1,581.3 1,585.5 38 Consumer 536.8 551.2 549.1 547.4 548.9 550.6 552.4 560.0 555.1 556.1 562.5 565.9 39 Credit cards and related plans . . 208.7 218.9 217.2 216.8 218.0 217.1 218.3 226.2 220.6 222.3 229.3 232.1 40 Other 328.1 332.3 331.9 330.6 331.0 333.5 334.0 333.8 334.5 333.8 333.2 333.8 41 Security3 69.8 70.0 78.2 78.6 81.8 97.3 80.4 78.4 74.1 84.2 77.8 79.2 42 Other loans and leases 352.0 365.2 367.7 370.1 363.7 395.4 380.1 386.0 383.1 387.5 388.3 384.6 43 Interbank loans 224.8 247.4 244.2 244.0 256.2 317.9 285.2 289.7 304.4 292.3 284.7 281.9 44 Cash assets4 241.5 243.5 236.4 244.2 236.0 280.0 260.6 261.6 244.1 298.9 258.7 246.3 45 Other assets5 349.0 380.2 373.9 388.1 399.9 437.8 454.2 444.2 444.9 439.4 440.2 450.7 46 Total assets6 5,345.4 5,518.1 5,508.5 5,526.3 5,564.8 5,791.2 5,748.9 5,778.2 5,788.1 5,814.0 5,765.8 5,746.7 Liabilities 47 Deposits 3,419.6 3,589.7 3,614.8 3.636.2 3,647.9 3,781.9 3,736.8 3,776.1 3.758.2 3,828.5 3,765.2 3,743.2 48 Transaction 596.1 593.2 591.3 590.5 587.6 670.4 620.5 626.8 585.1 656.2 630.9 637.0 49 Nontransaction 2,823.5 2,996.5 3,023.5 3.045.7 3,060.3 3,111.5 3,116.3 3.149.3 3.173.0 3,172.3 3,134.3 3,106.2 50 Large time 551.8 568.4 570.4 569.3 568.3 566.8 569.1 565.4 572.1 570.2 560.8 559.7 51 Other 2,271.7 2,428.1 2,453.1 2,476.3 2.492.0 2,544.8 2.547.2 2.583.9 2,600.9 2,602.1 2,573.5 2,546.5 52 Borrowings 973.3 1,024.5 990.1 997.0 996.0 1,054.8 1,050.3 1,033.3 1,039.2 1,024.0 1,030.4 1,042.5 53 From banks in the U.S 347.9 366.9 360.3 364.5 369.2 403.2 392.9 379.4 398.7 377.4 371.2 369.7 54 From others 625.4 657.6 629.8 632.5 626.8 651.6 657.3 653.9 640.4 646.6 659.2 672.8 55 Net due to related foreign offices 238.9 214.1 203.4 204.0 206.1 188.0 193.9 193.7 191.7 185.9 198.2 197.3 56 Other liabilities 286.5 266.3 277.1 260.1 278.0 328.4 307.1 340.5 371.2 352.8 349.0 304.3 57 Total liabilities 4,918.3 5,094.7 5,085.4 5,097.3 5,128.1 5,353.1 5,288.1 5,343.6 5,360.2 5,391.2 5,342.7 5,287.3 58 Residual (assets less liabilities)7 427.1 423.4 423.0 429.0 436.8 438.2 460.8 434.5 428.0 422.8 423.1 459.4 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 Nov.' Mayr Juner Julyr Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Seasonally adjusted Assets 1 Bank credit 2,556.4 2,635.7 2,632.9 2,625.3 2,625.5 2,688.9 2,630.8 2,634.3 2,649.7 2,639.3 2,637.6 2,613.6 2 Securities in bank credit 576.7 610.0 613.1 609.9 631.1 642.2 649.7 654.0 677.7 651.3 654.2 635.5 3 U.S. government securities 354.8 355.1 352.4 352.1 359.4 362.5 363.9 367.7 374.7 355.8 363.8 371.0 4 Trading account 21.6 35.3 35.1 38.3 36.3 37.9 35.7- 40.3 35.9 38.4 40.1 45.7 5 Investment account 333.2 319.9 317.3 313.8 323.2 324.5 328.2 327.4 338.8 317.4 323.7 325.3 6 Other securities 221.9 254.8 260.7 257.8 271.7 279.8 285.9 286.4 303.0 295.5 290.3 264.5 7 Trading account 114.5 137.0 143.5 140.8 153.1 160.9 165.4 163.9 180.8 172.8 167.2 142.3 8 Investment account 107.4 117.8 117.2 117.1 118.5 118.8 120.4 122.5 122.2 122.6 123.1 122.2 9 State and local government . . 26.3 28.1 27.9 27.8 27.6 27.5 26.8 27.1 27.1 27.2 27.3 27.1 in Other 81.1 89.7 89.4 89.3 91.0 91.4 93.7 95.4 95.1 95.4 95.9 95.1 ii Loans and leases in bank credit2 .... 1,979.7 2,025.8 2,019.7 2,015.4 1,994.4 2,046.7 1,981.0 1,980.2 1,972.0 1,988.0 1,983.4 1,978.0 12 Commercial and industrial 591.9 583.2 571.2 562.1 557.0 561.3 548.4 538.4 540.3 539.8 539.6 535.4 13 Bankers acceptances 1.0 .8 .7 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 14 Other 590.9 582.4 570.5 562.1 557.0 561.3 548.4 538.4 540.3 539.8 539.6 535.4 15 Real estate 828.5 856.2 854.9 855.7 846.3 845.7 839.4 848.1 846.7 849.1 846.3 847.8 16 Revolving home equity 82.4 87.0 87.1 87.0 87.6 89.3 92.4 94.3 93.9 94.0 94.4 94.6 17 Other 746.1 769.1 767.9 768.7 758.7 756.4 747.1 753.8 752.8 755.2 751.9 753.3 18 Consumer 241.6 252.4 254.3 254.0 251.1 252.7 243.8 244.6 243.2 243.5 244.7 246.4 19 Security3 58.9 66.8 72.6 75.2 78.0 93.7 69.4 65.5 61.2 71.5 65.0 66.0 20 Federal funds sold to and repurchase agreements with broker-dealers 42.4 49.4 54.8 59.6 63.5 66.3 56.6 52.2 47.8 58.5 52.5 52.0 21 Other 16.5 17.4 17.8 15.5 14.5 27.4 12.8 13.2 13.4 13.0 12.6 13.9 22 State and local government 12.8 13.0 13.4 14.2 14.2 14.4 15.3 15.6 15.7 15.7 15.6 15.6 23 Agricultural 9.8 10.6 10.3 10.0 9.4 9.2 9.2 9.3 9.2 9.4 9.4 9.3 24 Federal funds sold to and repurchase agreements with others 19.2 23.7 25.6 30.9 31.9 32.6 28.7 30.6 29.6 31.7 30.0 30.8 25 All other loans 86.6 85.5 84.8 81.6 75.6 107.2 92.9 92.6 91.0 92.2 96.5 90.7 26 Lease-financing receivables 130.4 134.4 132.6 131.7 131.0 129.9 134.0 135.6 135.1 135.2 136.1 136.0 27 Interbank loans 140.7 134.8 131.4 136.2 150.5 208.7 188.2 177.1 193.5 175.2 173.9 172.1 28 Federal funds sold to and repurchase agreements with commercial banks 64.2 73.4 72.7 71.3 80.1 132.9 106.7 103.0 106.8 106.0 102.0 102.3 29 Other 76.6 61.4 58.7 64.9 70.4 75.8 81.5 74.0 86.7 69.2 71.9 69.8 30 Cash assets4 140.0 140.1 135.8 146.3 140.3 173.9 151.5 148.2 142.6 170.2 149.5 131.7 31 Other assets5 261.1 274.1 261.8 269.5 281.4 309.4 328.7 316.2 317.7 309.0 316.9 322.1 32 Total assets6 3,062.3 3,147.0 3,124.2 3,139.3 3,159.5 3,342.8 3,259.8 3,236.1 3,264.1 3,254.1 3,238.4 3,199.7 Liabilities 33 Deposits 1,660.7 1,734.8 1,739.4 1,751.6 1,753.9 1,858.9 1,793.9 1,798.3 1,790.7 1,833.9 1,794.8 1,774.1 34 Transaction 299.0 304.8 300.3 306.7 304.3 375.6 322.5 321.1 302.7 344.9 323.7 314.3 35 Nontransaction 1,361.8 1,430.0 1,439.1 1,444.9 1,449.6 1,483.3 1,471.4 1,477.2 1,487.9 1,489.0 1,471.0 1,459.8 36 Large time 258.3 271.1 274.5 271.5 264.8 264.7 259.9 251.0 255.8 254.6 246.7 247.4 37 Other 1,103.5 1,159.0 1,164.6 1,173.4 1,184.8 1,218.6 1,211.5 1,226.2 1,232.1 1,234.4 1,224.3 1,212.4 38 Borrowings 646.0 683.4 655.2 668.7 674.0 705.1 688.5 658.7 667.3 644.1 659.8 665.5 39 From banks in the U.S 196.8 213.5 211.1 218.9 226.5 257.4 232.5 213.0 231.5 207.8 206.9 205.0 40 From others 449.2 469.9 444.1 449.7 447.4 447.8 456.0 445.7 435.8 436.3 452.9 460.4 41 Net due to related foreign offices 213.3 195.2 190.9 192.4 190.3 178.0 184.3 181.7 180.0 177.9 184.1 182.4 42 Other liabilities 233.9 208.9 221.3 204.3 217.2 266.9 243.0 272.9 305.1 286.8 280.2 234.4 43 Total liabilities 2,754.0 2,822.3 2,806.8 2,816.9 2,835.4 3,008.9 2,909.7 2,911.7 2,943.0 2,942.7 2,918.8 2,856.4 44 Residual (assets less liabilities)7 308.3 324.6 317.4 322.4 324.1 333.9 350.1 324.4 321.0 311.4 319.7 343.3 Footnotes appear on p. A21 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A18 DomesticN onfinancial Statistics • February 2002 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 Nov.r May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Not seasonally adjusted Assets 45 Bank credit 2,572.1 2,629.2 2,627.5 2,609.0 2,611.3 2,679.4 2,633.9 2,650.8 2,666.4 2,655.1 2,650.9 2,631.8 46 Securities in bank credit 582.4 607.6 610.8 601.0 624.9 638.6 649.9 659.8 683.1 656.0 658.8 642.0 47 U.S. government securities 357.6 354.4 351.1 348.1 355.5 359.6 361.4 369.9 376.9 358.0 365.6 372.8 48 Trading account 21.8 35.2 35.0 37.9 35.9 37.6 35.4 40.5 36.1 38.6 40.3 45.9 49 Investment account 335.8 319.3 316.1 310.3 319.6 321.9 325.9 329.4 340.8 319.4 325.3 326.9 50 Mortgage-backed securities . 216.2 234.2 229.7 229.0 241.7 247.2 257.5 255.8 270.0 247.1 250.4 251.3 51 Other 119.6 85.0 86.4 81.2 77.9 74.8 68.5 73.6 70.8 72.3 74.9 75.6 52 One year or less 33.1 27.0 25.5 21.1 20.1 20.1 18.4 27.4 23.8 26.9 28.6 29.8 53 One to five years 50.5 31.3 34.4 34.3 33.8 34.6 32.7 31.4 30.8 30.5 31.7 31.7 54 More than five years .... 36.0 26.7 26.6 25.9 24.0 20.1 17.4 14.8 16.2 14.9 14.5 14.1 55 Other securities 224.8 253.2 259.7 252.9 269.5 279.0 288.6 289.9 306.2 298.0 293.2 269.1 56 Trading account 116.0 136.1 142.9 138.1 151.9 160.5 167.0 165.9 182.7 174.3 168.8 144.8 57 Investment account 108.8 117.1 116.8 114.8 117.6 118.5 121.6 124.1 123.4 123.7 124.4 124.3 58 State and local government . 26.6 28.0 27.8 27.3 27.3 27.4 27.0 27.5 27.4 27.5 27.5 27.5 59 Other 82.2 89.1 89.0 87.6 90.2 91.1 94.5 96.6 96.1 96.2 96.8 96.8 60 Loans and leases in bank credit2 . . . 1,989.7 2,021.6 2,016.7 2,008.0 1,986.4 2,040.8 1,983.9 1,991.0 1,983.3 1,999.1 1,992.0 1,989.8 61 Commercial and industrial 593.0 585.9 572.8 562.1 553.8 559.9 548.0 539.4 542.5 541.0 540.6 535.9 62 Bankers acceptances 1.0 .8 .7 .0 .0 .0 .0 .0 n.a. n.a. n.a. n.a. 63 Other 592.1 585.1 572.1 562.1 553.8 559.9 548.0 539.4 542.5 541.0 540.6 535.9 64 Real estate 833.7 855.7 853.6 854.2 847.6 847.6 842.0 853.6 852.8 855.3 850.7 852.8 65 Revolving home equity 82.8 87.0 87.3 87.6 88.6 90.5 93.3 94.8 94.5 94.5 94.9 95.0 66 Other 454.7 469.0 465.4 465.7 458.7 455.9 441.5 450.4 451.0 452.4 446.9 449.0 67 Commercial 296.2 299.8 300.9 300.9 300.3 301.2 307.2 308.3 307.3 308.4 309.0 308.8 68 Consumer 240.0 252.9 253.8 252.3 249.9 251.5 241.4 243.0 241.0 241.4 243.0 245.5 69 Credit cards and related plans . 78.1 87.0 88.0 87.3 85.1 84.6 75.7 76.4 74.7 75.3 76.5 78.6 70 Other 161.9 165.9 165.8 165.0 164.8 166.9 165.6 166.6 166.4 166.2 166.5 166.9 71 Security3 63.0 62.0 70.2 70.5 73.6 88.7 72.5 70.1 65.7 75.9 69.6 71.3 72 Federal funds sold to and repurchase agreements with broker-dealers 45.4 45.8 53.0 55.9 59.9 62.9 59.1 56.0 51.3 62.1 56.2 56.2 73 Other 17.6 16.2 17.3 14.6 13.7 25.9 13.4 14.2 14.4 13.8 13.4 15.1 74 State and local government 12.8 13.0 13.4 14.2 14.2 14.4 15.3 15.6 15.7 15.7 15.6 15.6 75 Agricultural 9.8 10.5 10.4 10.1 9.6 9.3 9.3 9.4 9.3 9.4 9.4 9.3 76 Federal funds sold to and repurchase agreements with others 19.2 23.7 25.6 30.9 31.9 32.6 28.7 30.6 29.6 31.7 30.0 30.8 77 All other loans 87.9 84.1 84.8 82.4 75.7 108.4 93.1 93.8 91.6 93.6 97.1 93.0 78 Lease-financing receivables 130.1 133.7 132.2 131.2 130.2 128.5 133.8 135.5 135.1 135.1 135.9 135.7 79 Interbank loans 141.6 137.1 135.9 136.0 145.0 200.9 180.6 178.1 192.1 178.7 171.8 175.8 80 Federal funds sold to and repurchase agreements with commercial banks 64.6 74.6 75.1 71.2 77.2 127.9 102.3 103.7 106.0 108.1 100.7 104.5 81 Other 77.0 62.5 60.7 64.8 67.8 73.0 78.2 74.5 86.1 70.6 71.0 71.3 82 Cash assets4 141.1 140.2 134.3 139.9 132.5 169.6 150.6 149.6 138.7 178.8 145.6 136.7 83 Other assets5 260.8 275.0 264.0 268.8 278.8 309.7 324.7 315.7 319.2 309.4 311.9 322.0 84 Total assets6 3,079.4 3,143.7 3,123.8 3,115.8 3,129.2 3,321.1 3,250.5 3,254.4 3,276.7 3,282.3 3,240.5 3,226.4 Liabilities 85 Deposits 1,667.9 1,728.1 1,739.0 1,743.4 1,737.9 1,847.7 1,787.3 1,805.5 1,795.1 1,849.7 1,793.7 1,781.7 86 Transaction 301.3 300.6 300.4 301.9 293.2 369.2 316.9 323.6 296.1 353.8 321.9 323.4 87 Nontransaction 1,366.6 1,427.5 1,438.5 1,441.5 1,444.7 1,478.5 1,470.4 1,482.0 1,499.0 1,495.9 1,471.8 1,458.3 88 Large time 263.1 268.2 271.9 267.9 263.0 261.6 261.2 255.8 260.8 259.0 251.3 252.1 89 Other 1,103.5 1,159.3 1,166.6 1,173.6 1,181.7 1,216.8 1,209.2 1,226.2 1,238.2 1,236.9 1,220.5 1,206.2 90 Borrowings 654.3 688.5 656.0 659.4 652.4 699.8 686.2 667.1 677.8 656.2 664.5 672.4 91 From banks in the U.S 197.7 216.7 211.9 215.6 218.3 247.6 227.3 213.8 233.0 209.9 206.3 205.1 92 From nonbanks in the U.S 456.6 471.8 444.1 443.8 434.1 452.2 458.9 453.2 444.8 446.3 458.3 467.3 93 Net due to related foreign offices 215.3 197.5 190.3 189.2 190.6 177.4 184.5 183.5 180.8 178.3 186.8 186.3 94 Other liabilities 235.8 211.2 220.7 201.2 217.6 266.1 242.9 275.3 306.5 287.4 283.8 239.1 95 Total liabilities 2,773.3 2,825.3 2,806.0 2,793.2 2,798.6 2,991.1 2,900.9 2,931.5 2,960.1 2,971.6 2,928.9 2,879.5 96 Residual (assets less liabilities)7 306.1 318.4 317.8 322.6 330.6 330.1 349.7 323.0 316.5 310.7 311.6 346.9 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Commercial Banking Institutions—Assets and Liabilities A19 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities1—Continued D. Small domestically chartered commercial banks Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Nov.1" Mayr June' July' Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Seasonally adjusted Assets 1 Bank credit 2,019.6 2,082.9 2,090.2 2,106.9 2,125.3 2,138.3 2,182.5 2,201.0 2,196.5 2,197.0 2,201.5 2,204.9 7 Securities in bank credit 536.3 545.1 549.4 556.4 566.3 573.6 589.7 595.8 594.1 594.6 595.2 597.0 U.S. government securities 363.6 343.5 346.2 354.2 360.8 365.8 378.6 382.4 380.9 380.9 381.9 384.3 4 Other securities 172.6 201.6 203.2 202.2 205.5 207.8 211.1 213.4 213.2 213.7 213.3 212.7 Loans and leases in bank credit2 .... 1,483.3 1,537.8 1,540.8 1,550.5 1,559.0 1,564.7 1,592.8 1,605.2 1,602.3 1,602.4 1,606.3 1,608.0 6 Commercial and industrial 285.5 296.3 298.6 302.4 302.1 301.3 302.5 300.6 301.6 300.6 300.3 299.3 7 Real estate 805.1 830.6 835.2 843.6 851.2 858.8 874.9 881.5 879.6 880.0 881.5 883.2 Revolving home equity 45.1 48.3 49.2 50.5 51.8 52.8 55.0 55.6 55.4 55.4 55.6 55.8 9 Other 760.0 782.3 786.0 793.1 799.4 806.1 819.9 825.9 824.2 824.6 825.9 827.4 in Consumer 294.9 300.9 297.5 295.9 296.8 295.6 308.8 315.0 312.9 312.9 316.9 317.7 11 Security3 6.4 8.4 8.2 8.3 8.4 8.7 7.8 7.8 7.8 7.9 7.8 7.8 1? Other loans and leases 91.6 101.6 101.3 100.3 100.5 100.3 98.8 100.3 100.5 101.0 99.8 100.0 n Interbank loans 77.4 119.1 114.9 115.5 117.0 121.1 103.5 104.2 100.4 105.4 107.8 103.9 14 Cash assets4 95.7 104.8 103.3 105.6 106.4 109.8 109.4 106.7 104.0 111.5 109.4 101.6 15 Other assets5 88.3 105.3 109.9 119.3 121.2 128.1 129.5 128.5 125.7 130.0 128.3 128.7 16 Total assets6 2,254.6 2,384.3 2,390.6 2,419.2 2,441.0 2,467.8 2,494.7 2,510.0 2,496.2 2,513.4 2,516.4 2,508.5 Liabilities 17 Deposits 1,739.6 1.868.1 1,887.3 1,906.1 1,922.8 1,940.5 1,948.1 1,957.7 1,947.9 1,963.6 1,964.4 1,950.2 18 Transaction 291.1 297.7 291.2 290.2 297.2 301.2 303.9 299.6 286.2 296.9 308.6 308.8 19 Nontransaction 1,448.4 1.570.4 1,596.1 1,615.9 1,625.7 1,639.3 1,644.2 1,658.1 1,661.7 1,666.7 1,655.9 1,641.4 70 Large time 288.7 300.2 298.5 301.5 305.3 305.1 307.9 309.6 311.3 311.2 309.5 307.6 7.1 Other 1,159.8 1,270.1 1,297.5 1,314.4 1,320.4 1,334.2 1.336.3 1,348.5 1,350.5 1,355.5 1,346.3 1,333.8 77 Borrowings 319.0 336.1 334.1 337.6 343.6 355.0 364.1 366.2 361.3 367.8 365.8 370.1 73 From banks in the U.S 150.3 150.3 148.4 148.8 150.9 155.6 165.7 165.6 165.7 167.5 164.9 164.6 74 From others 168.7 185.8 185.7 188.7 192.7 199.4 198.4 200.6 195.6 200.3 200.9 205.5 75 Net due to related foreign offices 23.7 16.6 13.1 14.7 15.5 10.5 9.5 10.2 10.9 7.6 11.3 11.0 26 Other liabilities 50.7 55.1 56.4 58.9 60.4 62.3 64.2 65.2 64.7 65.3 65.2 65.3 27 Total liabilities 2,132.9 2,275.9 2,290.9 2,317.3 2,342.3 2,368.3 2,385.8 2,399.3 2,384.8 2,404.3 2,406.8 2,396.5 28 Residual (assets less liabilities)7 121.7 108.4 99.7 101.9 98.7 99.5 108.9 110.6 111.4 109.1 109.5 112.0 Not seasonally adjusted Assets 79 Bank credit 2,020.4 2,083.4 2,092.2 2,107.0 2,128.5 2,143.9 2,184.3 2,202.2 2,198.4 2,198.5 2,201.6 2,206.5 3(1 Securities in bank credit 534.5 546.6 551.1 556.2 565.6 573.5 587.3 594.0 592.2 592.8 593.2 595.4 31 U.S. government securities 361.9 345.0 347.8 354.0 360.1 365.7 376.2 380.6 379.0 379.2 379.9 382.7 37 Other securities 172.6 201.6 203.2 202.2 205.5 207.8 211.1 213.4 213.2 213.7 213.3 212.7 33 Loans and leases in bank credit2 .... 1,485.9 1,536.8 1,541.1 1,550.7 1,562.9 1,570.4 1,597.0 1,608.2 1,606.2 1,605.7 1,608.4 1,611.1 34 Commercial and industrial 284.8 298.9 300.4 302.3 300.4 299.8 302.1 299.9 301.1 299.7 299.2 298.9 35 Real estate 805.4 831.4 835.9 844.1 853.0 860.6 876.0 881.9 880.7 880.9 881.3 883.7 36 Revolving home equity 45.3 48.4 49.2 50.3 51.6 53.0 55.3 55.9 55.7 55.8 55.8 56.1 37 Other 760.1 783.0 786.8 793.8 801.4 807.6 820.7 826.1 825.0 825.1 825.4 827.7 38 Consumer 296.8 298.3 295.3 295.1 299.1 299.2 311.0 317.0 314.1 314.7 319.5 320.4 39 Credit cards and related plans . . 130.6 131.9 129.3 129.5 132.9 132.5 142.6 149.8 145.9 147.1 152.7 153.5 40 Other 166.2 166.3 166.0 165.6 166.2 166.6 168.4 167.3 168.2 167.6 166.7 166.9 41 Security3 6.7 8.0 8.0 8.1 8.2 8.6 7.9 8.2 8.4 8.4 8.2 8.0 47 Other loans and leases 92.1 100.2 101.4 101.2 102.2 102.3 100.0 101.1 101.9 102.0 100.3 100.2 43 Interbank loans 83.2 110.2 108.3 108.0 111.2 117.0 104.6 111.5 112.3 113.6 112.9 106.1 44 Cash assets4 100.4 103.3 102.1 104.3 103.6 110.5 110.1 112.1 105.4 120.1 113.2 109.6 45 Other assets5 88.3 105.3 109.9 119.3 121.2 128.1 129.5 128.5 125.7 130.0 128.3 128.7 46 Total assets6 2,266.0 2,374.4 2,384.7 2,410.5 2,435.6 2,470.1 2,498.4 2,523.7 2,511.4 2,531.7 2,525.3 2,520.3 Liabilities 47 Deposits 1,751.6 1,861.7 1,875.9 1,892.8 1,910.0 1,934.2 1,949.5 1,970.5 1,963.1 1,978.8 1,971.5 1,961.4 48 Transaction 294.8 292.6 290.9 288.7 294.4 301.2 303.6 303.2 289.0 302.4 309.0 313.6 49 Nontransaction 1,456.9 1,569.1 1,585.0 1,604.2 1,615.6 1,633.0 1,645.9 1,667.3 1,674.0 1,676.4 1,662.5 1,647.9 5n Large time 288.7 300.2 298.5 301.5 305.3 305.1 307.9 309.6 311.3 311.2 309.5 307.6 51 Other 1,168.2 1,268.8 1,286.5 1,302.7 1,310.3 1,327.9 1,338.0 1,357.8 1,362.8 1,365.2 1,353.0 1,340.3 57 Borrowings 319.0 336.1 334.1 337.6 343.6 355.0 364.1 366.2 361.3 367.8 365.8 370.1 53 From banks in the U.S 150.3 150.3 148.4 148.8 150.9 155.6 165.7 165.6 165.7 167.5 164.9 164.6 54 From others 168.7 185.8 185.7 188.7 192.7 199.4 198.4 200.6 195.6 200.3 200.9 205.5 55 Net due to related foreign offices 23.7 16.6 13.1 14.7 15.5 10.5 9.5 10.2 10.9 7.6 11.3 11.0 56 Other liabilities 50.7 55.1 56.4 58.9 60.4 62.3 64.2 65.2 64.7 65.3 65.2 65.3 57 Total liabilities 2,145.0 2,269.4 2,279.5 2,304.1 2,329.4 2,362.0 2,387.2 2,412.1 2,400.0 2,419.6 2,413.8 2,407.8 58 Residual (assets less liabilities)7 121.0 104.9 105.2 106.4 106.2 108.1 111.2 111.6 111.4 112.1 111.5 112.5 Footnotes appear on p. A21. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A20 Domestic NonfinancialS tatistics • February 2002 1.26 COMMERCIAL BANKS IN THE UNITED STATES Assets and Liabilities'—Continued E. Foreign-related institutions Billions of dollars Monthly averages Wednesday figures Account 2000 2001 2001 Nov. May' June' July' Aug.' Sept.' Oct/ Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Seasonally adjusted Assets 1 Bank credit 589.6 613.0 605.2 596.7 595.5 592.5 587.0 592.5 596.5 597.8 591.7 584.5 2 Securities in bank credit 197.5 215.7 217.9 220.1 220.3 222.3 226.2 227.5 233.6 231.1 225.6 220.3 3 U.S. government securities 67.8r 68.2 65.8 63.9 63.3 66.7 72.2 74.6 77.3 77.2 73.8 70.4 4 Other securities 129.7' 147.5 152.2 156.1 157.0 155.6 154.1 152.9 156.3 154.0 151.8 150.0 5 Loans and leases in bank credit2 .... 392.1 397.3 387.3 376.6 375.2 370.2 360.7 365.0 362.9 366.7 366.1 364.1 6 Commercial and industrial 206.2 218.2 211.1 205.9 204.8 205.1 200.7 200.8 200.4 201.5 202.1 199.5 7 Real estate 18.3 18.2 18.1 18.2 18.4 18.7 18.8 19.0 19.0 19.1 19.0 19.0 8 Security3 100.0 93.0 91.3 86.7 84.7 79.0 72.7 76.9 75.0 78.6 78.1 76.0 y Other loans and leases 67.6 68.0 66.7 65.8 67.3 67.4 68.5 68.2 68.5 67.6 66.9 69.7 10 Interbank loans 27.0 29.1 21.3 21.2 20.2 26.0 24.1 25.6 23.4 26.1 23.4 28.3 n Cash assets4 38.4r 37.4 36.3 36.8 37.5 45.5 39.3 37.5 37.9 38.3 37.7 36.3 12 Other assets5 35.4 37.4 37.1 30.4 30.1 33.2 32.2 34.4 31.2 35.5 32.9 38.8 13 Total assets6 690.1 716.5 699.6 684.8 682.9 696.7 682.1 689.6 688.6 697.3 685.4 687.6 Liabilities 14 Deposits 381.9' 408.6 418.8 413.7 407.0 409.5 422.3 428.5 419.4 429.4 430.3 434.2 15 Transaction 10.8 10.6 9.5 9.2 9.5 12.3 10.8 10.7 10.9 10.7 10.5 10.6 16 Nontransaction 371.0 398.0 409.3 404.6 397.4 397.2 411.5 417.8 408.5 418.7 419.8 423.6 17 Borrowings 223.5 219.3 216.1 211.2 210.6 222.0 208.3 212.3 217.0 221.0 201.6 210.5 18 From banks in the U.S 18.6 20.3 22.5 22.3 20.7 30.6 23.4 24.2 26.7 29.3 20.6 21.1 19 From others 204.9 199.0 193.7 188.9 190.0 191.4 184.9 188.0 190.3 191.7 181.0 189.4 20 Net due to related foreign offices 7.3 -4.3 -19.6 -16.1 -11.3 -17.7 -17.2 -30.8 -27.6 -33.4 -25.6 -35.5 21 Other liabilities 73.2 86.5 84.9 79.4 78.5 80.4 75.0 77.6 81.4 79.3 75.2 76.0 22 Total liabilities 685.9r 710.0 700.2 688.2 684.8 694.1 688.4 687.6 690.2 696.3 681.5 685.2 23 Residual (assets less liabilities)7 4.2' 6.5 -.6 -3.4 -1.9 2.6 -6.3 2.0 -1.6 1.0 3.9 2.4 Not seasonally adjusted Assets 24 Bank credit 592.2' 608.3 601.4 592.2 589.0 590.7 589.9 595.3 602.3 600.7 590.2 588.5 25 Securities in bank credit 197.5 215.7 217.9 220.1 220.3 222.3 226.2 227.5 233.6 231.1 225.6 220.3 26 U.S. government securities 67.8' 68.2 65.8 63.9 63.3 66.7 72.2 74.6 77.3 77.2 73.8 70.4 27 Trading account 10.9 13.8 13.8 13.0 12.3 14.0 15.3 14.1 14.6 14.8 14.1 12.9 28 Investment account 56.9' 54.4 52.0 50.9 51.0 52.6 56.8 60.5 62.7 62.3 59.7 57.5 29 Other securities 129.7' 147.5 152.2 156.1 157.0 155.6 154.1 152.9 156.3 154.0 151.8 150.0 30 Trading account 89.6 99.9 106.4 108.1 111.0 110.1 108.7 107.9 109.8 108.9 107.9 105.3 31 Investment account 40.1' 47.6 45.8 48.1 46.0 45.6 45.4 45.0 46.6 45.1 43.9 44.7 32 Loans and leases in bank credit2 .... 394.7' 392.6 383.5 372.1 368.7 368.4 363.7 367.8 368.7 369.6 364.6 368.2 33 Commercial and industrial 206.8 215.1 210.0 205.2 203.5 204.7 200.9 201.5 201.2 201.9 202.8 200.3 34 Real estate 18.3 18.2 18.1 18.2 18.4 18.7 18.8 19.0 19.0 19.1 19.0 19.0 35 Security3 101.5 92.2 89.4 83.9 80.8 77.9 75.9 78.5 79.7 80.5 75.3 78.2 36 Other loans and leases 68.1 67.2 66.1 64.8 66.0 67.1 68.1 68.8 68.8 68.0 67.5 70.6 37 Interbank loans 27.0 29.1 21.3 21.2 20.2 26.0 24.1 25.6 23.4 26.1 23.4 28.3 38 Cash assets4 40.5 36.5 35.2 35.5 36.3 44.5 40.1 39.6 39.5 40.8 39.6 38.6 39 Other assets5 35.5 36.8 35.8 29.6 29.8 32.9 31.7 34.4 31.0 35.0 32.8 39.4 40 Total assets6 694.8r 710.4 693.4 678.2 675.0 693.7 685.3 694.6 695.8 702.2 685.7 694.4 Liabilities 41 Deposits 384.6' 409.7 411.6 403.5 395.1 401.4 414.9 431.8 418.7 431.4 433.9 441.4 42 Transaction 11.0 10.2 9.4 9.3 9.5 12.6 10.9 10.9 10.9 11.0 10.7 10.9 43 Nontransaction 373.6' 399.5 402.3 394.3 385.6 388.8 403.9 420.8 407.8 420.4 423.2 430.5 44 Borrowings 223.5 219.3 216.1 211.2 210.6 222.0 208.3 212.3 217.0 221.0 201.6 210.5 45 From banks in the U.S 18.6 20.3 22.5 22.3 20.7 30.6 23.4 24.2 26.7 29.3 20.6 21.1 46 From others 204.9 199.0 193.7 188.9 190.0 191.4 184.9 188.0 190.3 191.7 181.0 189.4 47 Net due to related foreign offices 7.6 -7.5 -22.7 -19.3 -12.6 -15.2 -16.9 -30.7 -25.7 -32.9 -27.5 -36.9 48 Other liabilities 73.4 85.0 83.4 78.0 78.0 81.5 75.2 77.7 82.2 79.5 74.5 75.5 49 Total liabilities 689.1 706.5 688.4 673.4 671.2 689.7 681.5 691.0 692.2 699.0 682.4 690.4 50 Residual (assets less liabilities)7 5.8 3.8 5.0 4.9 3.8 4.0 3.8 3.5 3.7 3.3 3.3 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 Nov. May' June' July' Aug.' Sept.' Oct.' Nov. Nov. 7 Nov. 14 Nov. 21 Nov. 28 Not seasonally adjusted MEMO Large domestically chartered banks, adjusted for mergers 1 Revaluation gains on off-balance-sheet items8 68.1 82.0 87.5 79.8 89.8 97.9 100.3 103.0 117.0 105.3 108.1 87.1 2 Revaluation losses on off-balancesheet items8 72.6 74.7 81.9 71.8 78.4 84.8 85.6 85.1 98.5 88.1 89.1 68.2 3 Mortgage-backed securities'1 245.3' 265.8 262.2 261.8 274.0 279.8 289.3 290.1 303.0 282.0 285.4 285.8 4 Pass-through 177.5 200.7 200.8 200.2 212.3 218.1 222.2 206.3 219.8 200.1 203.9 203.0 5 CMO. REMIC. and other 67.7 65.1 61.4 61.7 61.7 61.6 67.1 83.8 83.2 82.0 81.5 82.9 6 Net unrealized gains (losses) on available-for-sale securities10 .7 4.9 4.2 2.6 5.0 7.0 9.4 10.1 11.6 10.7 9.6 9.8 7 Off-shore credit to U.S. residents" .... 23.1 21.0 20.6 20.2 19.6 20.2 20.0 19.2 19.6 19.4 19.3 18.6 8 Securitized consumer loans12 77.4 80.3 81.7 96.2 96.1 97.1 98.1 99.6 100.1 100.2 99.6 99.0 9 Credit cards and related plans 68.0 71.1 72.8 86.1 85.6 86.8 87.8 88.3 88.7 88.7 88.3 87.8 10 Other 9.4 9.2 9.0 10.1 10.5 10.3 10.3 11.3 11.4 11.4 11.4 11.2 11 Securitized business loans12 14.2 14.2 14.7 14.8 15.0 15.1 15.4 14.9 15.2 15.2 15.1 14.3 Small domestically chartered commercial banks, adjusted for mergers 12 Mortgage-backed securities9 208.8' 229.2 232.8 240.0 245.0 251.2 258.2 263.4 264.0 263.5 262.4 262.7 13 Securitized consumer loans12 227.3' 236.8 240.3 228.8 231.7 234.9 238.4 241.3 241.7 242.1 239.8 241.3 14 Credit cards and related plans 218.0' 228.6 232.0 220.1 223.1 226.3 230.2 232.7 233.1 233.5 231.2 232.8 15 Other 9.4' 8.2 8.3 8.7 8,6 8.5 8.2 8.6 8.6 8.6 8.6 8.5 Foreign-related institutions 16 Revaluation gains on off-balancesheet items8 46.4 56.8 57.7 54.9 57.6 57.3 58.2 56.6 61.1 57.0 54.8 53.7 17 Revaluation losses on off-balancesheet items8 42.5 52.3 52.4 49.7 52.1 51.4 49.3 49.3 53.7 49.4 47.6 47.1 18 Securitized business loans12 34.3 30.8 29.6 27.4 26.6 26.5 26.6 25.2 26.0 25.6 25.2 7,4.1 NOTE. Tables 1.26, 1.27, and 1.28 have been revised to reflect changes in the Board's H.8 acquiring bank. Balance sheet data for acquired banks are obtained from Call Reports, and a statistical release, "Assets and Liabilities of Commercial Banks in the United States." Table ratio procedure is used to adjust past levels. 1.27, "Assets and Liabilities of Large Weekly Reporting Commercial Banks," and table 1.28, 2. Excludes federal funds sold to, reverse RPs with, and loans made to commercial banks "Large Weekly Reporting U.S. Branches and Agencies of Foreign Banks." are no longer in the United States, all of which are included in "Interbank loans." being published in the Bulletin. Instead, abbreviated balance sheets for both large and small 3. Consists of reverse RPs with brokers and dealers and loans to purchase and carry domestically chartered banks have been included in table 1.26, parts C and D. Data are both securities. merger-adjusted and break-adjusted. In addition, data from large weekly reporting U.S. 4. Includes vault cash, cash items in process of collection, balances due from depository branches and agencies of foreign banks have been replaced by balance sheet estimates of all institutions, and balances due from Federal Reserve Banks. foreign-related institutions and are included in table 1.26, part E. These data are break- 5. Excludes the due-from position with related foreign offices, which is included in "Net adjusted. due to related foreign offices." The not-seasonally-adjusted data for all tables now contain additional balance sheet items, 6. Excludes unearned income, reserves for losses on loans and leases, and reserves for which were available as of October 2, 1996. transfer risk. Loans are reported gross of these items. 1. Covers the following types of institutions in the fifty states and the District of 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 Nonfinancial Statistics • February 2002 1.32 COMMERCIAL PAPER AND BANKERS DOLLAR ACCEPTANCES OUTSTANDING Millions of dollars, seasonally adjusted, end of period Year ending December 2001 IItteemm 1996 1997 1998 1999 2000 May June July Aug. Sept. Oct. 1 All issuers 775,371 966,699 1,163,303 1,403,023 1,615,341 1,501,113 1,468,919 1,453,770 1,434,238 1,423,004 1,436,254 Financial companies' 2 Dealer-placed paper, total2 361,147 513,307 614,142 786,643 973,060 986,369 982,216 958,911 957,792 950,346 984,996 3 Directly placed paper, total3 229,662 252,536 322,030 337,240 298,848 245,768 244,520 265,824 248,974 255,122 232,407 4 Nonfinancial companies4 184,563 200,857 227,132 279,140 343,433 268,976 242,183 229,035 227,473 217,537 218,851 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. 1.33 PRIME RATE CHARGED BY BANKS Short-Term Business Loans1 Percent per year Average Average Average Date of change Period rate rate rate 1999—Jan. 1 7.75 1999 .... 8.00 2000—Jan. 8.50 2001—Jan. . 9.05 July 1 8.00 2000 .... 9.23 Feb. 8.73 Feb. . 8.50 Aug. 25 8.25 2001 .... 6.91 Mar. 8.83 Mar. . 8.32 Nov. 17 8.50 9.00 Apr. . 7.80 1999—Jan. 7.75 May 9.24 May . 7.24 2000—Feb. 3 8.75 Feb. 7.75 June 9.50 June . 6.98 Mar. 22 9.00 Mar. 7.75 July 9.50 July . 6.75 May 17 9.50 Apr. 7.75 Aug. 9.50 Aug. . 6.67 May 7.75 Sept. 9.50 Sept. 6.28 2001—Jan. 4 9.00 June 7.75 Oct. 9.50 Oct. . 5.53 Feb. 1 8.50 July 8.00 Nov. 9.50 Nov. . 5.10 Mar. 21 8.00 Aug. 8.06 Dec. 9.50 Dec. 4.84 Apr. 19 7.50 Sept. 8.25 May 16 7.00 Oct. 8.25 June 28 6.75 Nov. 8.37 Aug. 22 6.50 Dec. 8.50 Sept. 18 6.00 Oct. 3 5.50 Nov. 7 5.00 Dec. 12 4.75 1. The prime rate is one of several base rates that banks use to price short-term business Report. Data in this table also appear in the Board's H.15 (519) weekly and G.13 (415) loans. The table shows the date on which a new rate came to be the predominant one quoted monthly statistical releases. For ordering address, see inside front cover. by a majority of the twenty-five largest banks by asset size, based on the most recent Call Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A23 1.35 INTEREST RATES Money and Capital Markets Percent per year; figures are averages of business day data unless otherwise noted 2001 2001, week ending IItteemm 11999988 11999999 22000000 Aug. Sept. Oct. Nov. Nov. 2 Nov. 9 Nov. 16 Nov. 23 Nov. 30 MONEY MARKET INSTRUMENTS 1 Federal funds1,23 5.35 4.97 6.24 3.65 3.07 2.49 2.09 2.55 2.36 2.03 2.01 1.95 2 Discount window borrowing2 4 4.92 4.62 5.73 3.16 2.77 2.02 1.58 2.00 1.86 1.50 1.50 1.50 Commercial paper3-5 6 Nonfinancial 3 1 -month 5.40 5.09 6.27 3.54 2.96 2.40 2.03 2.23 2.02 2.00 2.02 1.99 4 2-month 5.38 5.14 6.29 3.47 2.87 2.30 2.00 2.15 1.98 1.96 2.03 1.99 5 3-month 5.34 5.18 6.31 3.42 2.81 2.28 1.97 2.11 1.93 1.93 2.02 1.98 Financial 6 1 -month 5.42 5.11 6.28 3.57 2.97 2.42 2.04 2.24 2.06 2.01 2.04 1.99 7 2-month 5.40 5.16 6.30 3.48 2.87 2.31 2.02 2.13 1.98 1.99 2.04 2.03 8 3-month 5.37 5.22 6.33 3.44 2.84 2.29 2.00 2.11 1.97 1.96 2.02 2.00 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 market3-'0 17 1-month 5.49 5.19 6.35 3.59 2.99 2.43 2.08 2.22 2.07 2.05 2.07 2.06 18 3-month 5.47 5.33 6.46 3.48 2.87 2.31 2.03 2.11 1.96 1.99 2.06 2.07 19 6-month 5.44 5.46 6.59 3.49 2.84 2.26 2.03 2.08 1.94 2.00 2.11 2.08 20 Eurodollar deposits, 3-month'11 5.45 5.31 6.45 3.47 2.85 2.31 2.03 2.14 1.98 2.00 2.07 2.03 U.S. Treasury bills Secondary market3 5 21 3-month 4.78 4.64 5.82 3.36 2.64 2.16 1.87 2.01 1.83 1.86 1.91 1.84 22 6-month 4.83 4.75 5.90 3.29 2.63 2.12 1.88 1.93 1.79 1.91 1.97 1.87 23 1-year 4.80 4.81 5.78 3.26 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Auction high3 512 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 maturities'3 27 1-year 5.05 5.08 6.11 3.47 2.82 2.33 2.18 2.11 1.99 2.24 2.35 2.23 28 2-year 5.13 5.43 6.26 3.76 3.12 2.73 2.78 2.49 2.40 2.83 3.05 3.03 29 3-year 5.14 5.49 6.22 4.04 3.45 3.14 3.22 2.92 2.81 3.26 3.51 3.50 30 5-vear 5.15 5.55 6.16 4.57 4.12 3.91 3.97 3.73 3.58 3.97 4.25 4.25 31 7-year 5.28 5.79 6.20 4.84 4.51 4.31 4.42 4.10 4.04 4.45 4.71 4.70 32 10-year 5.26 5.65 6.03 4.97 4.73 4.57 4.65 4.37 4.30 4.66 4.93 4.92 33 20-year 5.72 6.20 6.23 5.58 5.53 5.34 5.33 5.13 5.03 5.31 5.54 5.60 34 30-year 5.58 5.87 5.94 5.48 5.48 5.32 5.12 5.02 4.85 5.12 5.32 5.33 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 Aaa 4.93 5.28 5.58 4.89 4.93 4.89 4.85 4.81 4.76 4.82 4.90 4.97 37 Baa 5.14 5.70 6.19 5.55 5.62 5.55 5.53 5.45 5.41 5.52 5.60 5.65 38 Bond Buyer series15 5.09 5.43 5.71 5.03 5.09 5.05 5.04 4.96 4.91 5.02 5.14 5.15 CORPORATE BONDS 39 Seasoned issues, all industries16 6.87 7.45 7.98 7.37 7.54 7.41 7.32 7.22 7.11 7.32 7.49 7.46 Rating group 4(1 Aaa 6.53 7.05 7.62 7.02 7.17 7.03 6.97 6.86 6.75 6.97 7.16 7.10 41 Aa 6.80 7.36 7.83 7.11 7.28 7.13 7.01 6.92 6.79 7.02 7.19 7.15 42 A 6.93 7.53 8.11 7.48 7.67 7.59 7.49 7.38 7.27 7.48 7.66 7.64 43 Baa 7.22 7.88 8.37' 7.85 8.03 7.91 7.81 7.73 7.62 7.81 7.96 7.95 MEMO Dividend-price ratio17 44 Common stocks 1.49 1.25 1.15 1.34 1.48 1.45 1.38 1.47 1.40 1.37 1.37 1.38 NOTE. Some of the data in this table also appear in the Board's H.15 (519) weekly 9. Representative closing yields for acceptances of the highest-rated money center banks. statistical release. 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 Nonfinancial Statistics • February 2002 1.36 STOCK MARKET Selected Statistics 2001 IInnddiiccaattoorr 11999988 11999999 22000000 Mar. Apr. May June July Aug. Sept. Oct. Nov. Prices and trading volume (averages of daily figures) CCCCCCCooooooommmmmmmmmmmmmmooooooonnnnnnn ssssssstttttttoooooooccccccckkkkkkk ppppppprrrrrrriiiiiiiccccccceeeeeeesssssss (((((((iiiiiiinnnnnnndddddddeeeeeeexxxxxxxeeeeeeesssssss))))))) 1111111 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((DDDDDDDeeeeeeeccccccc....... 33333331111111,,,,,,, 1111111999999966666665555555 -------55555550000000))))))) 550.65 619.52 643.71 603.44 607.06 644.44 630.86 613.36 604.52 544.39 556.04 575.31 2222222 IIIIIIInnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll 684.35 775.29 809.40 744.21 747.48 798.94 782.73 756.04 748.65 672.89 688.35 715.98 3333333 TTTTTTTrrrrrrraaaaaaannnnnnnssssssspppppppooooooorrrrrrrtttttttaaaaaaatttttttiiiiiiiooooooonnnnnnn 468.61 491.62 414.73 452.36 455.22 477.21 458.60 469.80 458.35 382.68 371.56 410.05 4444444 UUUUUUUtttttttiiiiiiillllllliiiiiiitttttttyyyyyyy 190.52 284.82 478.99 395.34 400.49 414.69 382.98 374.11 357.76 339.72 341.51 330.78 5555555 FFFFFFFiiiiiiinnnnnnnaaaaaaannnnnnnccccccceeeeeee 516.65 530.97 552.48 583.38 587.88 618.74 622.17 614.54 605.59 538.01 553.16 577.85 6666666 SSSSSSStttttttaaaaaaannnnnnndddddddaaaaaaarrrrrrrddddddd &&&&&&& PPPPPPPoooooooooooooorrrrrrr'''''''sssssss CCCCCCCooooooorrrrrrrpppppppooooooorrrrrrraaaaaaatttttttiiiiiiiooooooonnnnnnn (((((((1111111999999944444441111111 44444443333333 ------- 11111110000000)))))))''''''' 1,085.50 1,327.33 1,427.22 1,185.85 1.189.84 1,270.37 1,238.71 1,204.45 1,178.51 1,044.64 1,076.59 1,129.68 7777777 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee (((((((AAAAAAAuuuuuuuggggggg....... 33333331111111,,,,,,, 1111111999999977777773333333 ======= 55555550000000)))))))2222222 682.69 770.90 922.22 891.22 891.18 940.73 923.06 892.74 883.01 823.78 825.91 814.78 VVVVVVVooooooollllllluuuuuuummmmmmmeeeeeee ooooooofffffff tttttttrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg (((((((ttttttthhhhhhhooooooouuuuuuusssssssaaaaaaannnnnnndddddddsssssss ooooooofffffff ssssssshhhhhhhaaaaaaarrrrrrreeeeeeesssssss ))))))) 8888888 NNNNNNNeeeeeeewwwwwww YYYYYYYooooooorrrrrrrkkkkkkk SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 666.534 799,554 1,026,867 1,251,569 1,247,382 1,091,366 1,152,193 1,120,074 1,012,907 1,666,980 1,293,019 1,242,965 9999999 AAAAAAAmmmmmmmeeeeeeerrrrrrriiiiiiicccccccaaaaaaannnnnnn SSSSSSStttttttoooooooccccccckkkkkkk EEEEEEExxxxxxxccccccchhhhhhhaaaaaaannnnnnngggggggeeeeeee 28,870 32,629 51,437 81,666 77,612 66,103 62,395 56,735 48,304 72,319 66,765 88,694 Customer financing (millions of dollars, end-of-period balances) 11111110000000 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrr-------dddddddeeeeeeeaaaaaaallllllleeeeeeerrrrrrrsssssss3333333 140,980 228,530 198,790 165,350 166,940 174,180 170,000 165,250 161,130 144,670 144,010r 148,650 FFFFFFFrrrrrrreeeeeeeeeeeeee cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss aaaaaaattttttt bbbbbbbrrrrrrroooooookkkkkkkeeeeeeerrrrrrrsssssss4444444 11111111111111 MMMMMMMaaaaaaarrrrrrrgggggggiiiiiiinnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss5555555 40,250 55,130 100.680 106,300 97,470 91,990 98,430 97,950 103,990 115,450 101,850' 98,330 11111112222222 CCCCCCCaaaaaaassssssshhhhhhh aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss 62,450 79,070 84,400 77,520 77,460 76,260 75,270 73,490 73,710 74,220 69,550' 72,090 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 June July Aug. Sept. Oct. Nov. U.S. budget1 1 Receipts, total 1,827,302 2,025,218 l,990,930r 202,887 127,842 122,559 158,496 157,163 121,233 2 On-budget 1,382,986 1,544,634 1,483,41 lr 151,482 89,473 84,011 116,598 122,004 83,375 3 Off-budget 444,468 480,584 507,519 51,405 38,369 38,548 41,898 35,159 37,858 4 Outlays, total 1,702,875 1,788,826 l,863,909r 171,025 125,022 202,549 123,250 166,548 175,500 5 On-budget 1,382,097 1,458,061 1,517,071' 167,796 92,145 138,167 111,255 134,014 140,388 6 Off-budget 320,778 330,765 346,838 3,229 32,877 64,382 11,996 32,534 35,112 7 Surplus or deficit (-), total 124,579 236,392 127,021 31,862 2,820 -79,990 35,245 -9,385 -54,267 8 On-budget 889 86,573 -33,660 -16,314 -2,672 -54,156 5,343 -12,010 -57,013 9 Off-budget 123,690 149,819 160,682 48,176 5,492 -25,834 29,902 2,625 2,746 Source of financing (total) 10 Borrowing from the public -88,674 -222,807 -90,118 -1,212 -7,460 74,101 1,996 -3,695 72,036 11 Operating cash (decrease, or increase [-]) -17,580 3,799 8,440 -37,413 20,589 16,769 -37,890 16,612 -2,908 12 Other2 -18,325 -17,384 -45,343 6,763 -15,949 -10,880 649 -3,532 -14,861 MEMO 13 Treasury operating balance (level, end of period) 56,458 52,659 44,219 43,687 23,098 6,329 44,219 27,607 30,515 14 Federal Reserve Banks 6,641 8,459 9,796 7,188 5,592 5,533 9,796 5,112 6,219 15 Tax and loan accounts 49,817 44,199 34,423 36,498 17,506 795 34,423 22,495 24,295 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 DomesticN onfinancialS tatistics • February 2002 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 Sept. Oct. Nov. RECEIPTS 1 All sources 2,025,218 l,990,930r 892,266 1,089,763 953,667r 1,120,040 158,496 157,163 121,233 2 Individual income taxes, net 1,004,462 994,339 425,451 550,208 458,679 580,632 81,277 77,772 56,534 3 Withheld 780,397 793,386 372,012 388,526 395,572 402,417 49,679 69,963 59,818 4 Nonwithheld 358,049 383,146 68,302 281,103 77,732 308,418 45,676 9,858 2,729 5 Refunds 134,046 182,251 14,841 119,477 14,628 130,256 14,078 2,049 6,013 Corporation income taxes 6 Gross receipts 235,655 186,732 110,111 119,166 123,962 102,947 9,533 30,134 3,411 7 Refunds 28,367 35,657 13,996 13,781 15,776 20,262 2,057 10,388 3,450 8 Social insurance taxes and contributions, net .... 652,852 693,967 292,551 353,514 310,122 379,878 56,147 48,794 53,263 9 Employment taxes and contributions2 620,451 661,442 280,059 333,584 297,665 359,648 55,433 46,887 50,494 10 Unemployment insurance 27,640 27,812 10,173 17,562 10,097 17,842 349 1,529 2,356 11 Other net receipts3 4,761 4,712 2,319 2,368 2,360 2,387 365 378 413 12 Excise taxes 68,865 66,232 34,262 33,532 35,501 32,490 6,443 3,657 4,842 13 Customs deposits 19,914 19,616 10,287 9,218 10,676 9,370 1,563 1,920 1,571 14 Estate and gift taxes 29,010 28,400 14,001 15,073 13,216 15,471 1,761 2,488 2,204 15 Miscellaneous receipts4 42,826 36,576 19,569 22,831 17,286r 19,517 3,828 2,786 2,857 OUTLAYS 16 All types 1,788,826 l,863,909r 882,465 892,947 895,630r 948,750 123,250 166,548 175,500 17 National defense 294,494 304,486 149,573 143,476 147,651 153,154 23,987 26,373 30,983 18 International affairs 17,216 16,522 8,530 7,250 11,902 6,522 1,350 2,519 2,606 19 General science, space, and technology 18,637 20,715 10,089 9,601 10,389 10,073 1,668 2,025 1,781 20 Energy -1,060 48r -90 -893 130r -244 697 -355 145 21 Natural resources and environment 25,031 23,738 12,100 10,814 12,907 11,059 2,521 2,248 2,518 22 Agriculture 36,641 28,339 20,887 11,164 20,977 10,832 -1,149 5,288 4,576 23 Commerce and housing credit 3,211 5,801 7,353 -2,497 4,408 -1,539 15,844 1,194 218 24 Transportation 46,854 53,882 23,199 21,054 25,841 23,810 7,358 5,423 5,885 25 Community and regional development 10,629 12,827 6,806 5,050 5,962 5,265 1,347 1,509 1,110 2b Education, training, employment, and social services 59,201 62,869 27,532 31,234 29,263 35,698 4,927 6,113 5,370 27 Health 154,534 171,912 74,490 75,871 81,413 87,427 14,088 17,549 15,216 28 Social security and Medicare 606,549 650,407 295,030 306,966 307,473 328,072 26,044 53,444 58,302 29 Income security 247,895 263,274 113,504 133,915 113,212 146,913 15,738 21,664 24,281 30 Veterans benefits and services 47,083 45,029 23,412 23,174 22,615 23,171 2,123 4,294 5,941 31 Administration of justice 27,820 29,754 13,459 13,981 14,635 14,694 2,428 3,230 2,834 32 General government 13,454 15,084 7,010 6,198 6,461 8,887 1,733 1,581 1,365 33 Net interest5 223,218 206,088 112,420 115,545 104,685 107,824 9,113 16,157 15,928 34 Undistributed offsetting receipts6 -42,581 -47,011 -22,850 -19,346 -24,070 -22,865 -6,711 -3,727 -3,560 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 All 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 5,950.0 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 Ql 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 bonds' 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 2,249.0' 2,249.0' 2,357.0 2,469.1 2,493.7 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 2,779.7 19 Depository institutions 300.3 237.3 246.5 199.2' 199.2' 187.9' 190.1' 189.0 20 Mutual funds 321.6r 343.3r 335.4' 312.6' 312.6' 322.8' 333.2' 362.7 21 Insurance companies 176.6 141.7r 123.4' 110.2r 110.2' 101.9 94.8' 88.5 22 State and local treasuries7 239.3 269.3 266.8 236.2' 236.2' 224.0 216.5 188.9 Individuals 23 Savings bonds 186.5 186.6 186.4 184.8 184.8 184.8 185.5' 186.4 24 Pension funds 360.5 356.9' 349.7' 333.4' 333.4' 326.5 324.6' 314.7 25 Private 143.5 139.1' 138.5' 137.7' 137.7' 131.2 127.5' 122.7 26 State and Local 216.9 217.7 211.2 195.7' 195.7' 195.3 197.1' 192.0 27 Foreign and international8 1,241.6 1,278.7 1,268.7 1,201.3' 1,201.3' 1,196.1 1,167.1 1,170.0 28 Other miscellaneous investors7,9 589.5 517.5' 444.1' 276.9' 276.9' 323.6' 195.8 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 Financial Statistics • February 2002 1.42 U.S. GOVERNMENT SECURITIES DEALERS Transactions' Millions of dollars, daily averages 2001 2001, week ending Aug. Sept. Oct. Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 Nov. 28 By type of security 1 U.S. Treasury bills 35,361 29,627 28,935 27,408 26,555 24,338 32,937 32,351 46,129 38,720 41,919 41,112 Treasury coupon securities by maturity 2 Three years or less 90,953 96,124 106,558 112,694 85,341 103,453 119,295 110,220 135,164 121,476 133,713 114422,,885599 3 More than three but less than or equal to six years 69,717 76,258 83,732 82,377 85,233 84,124 78,869 87,813 141,908 109,895 107,670 83,813 4 More than six but less than or equal to eleven years 65,251 60,808 59,295 65,974 63,938 52,884 50,928 66,353 89,839 70,506 90,672 66,402 5 More than eleven 16,847 18,764 24,268 27,558 19,610 16,814 22,759 34,983 40,584 27,110 28,648 23,938 6 Inflation-indexed2 1,491 1,653 2,565 1,505 4,143 2,141 2,760 2,168 3,405 1,994 1,969 1,952 Federal agency and governmentsponsored enterprises 7 Discount notes 57,141 70,486 61,756 63,505 60,364 61,487 60,286 63,560 62,391 61,257 60,314 57,674 Coupon securities by maturity 8 Three years or less 11,514 11,891 11,551 15,321 9,685 11,484 10,921 11,480 11,691 13,475 16,350 11,290 9 More than three years but less than or equal to six years 8,769 8,913 11,860 10,876 9,624 12,414 16,332 9,211 8,492 13,461 10,164 5,747 10 More than six years but less than or equal to eleven years .... 6,502 10,595 8,487 9,629 7,447 8,780 7,344 9,484 12,092 10,308 13,725 7,828 11 More than eleven years 1,332 1,010 1,451 1,353 1,604 856 1,443 1,989 2,274 2,854 1,093 1,143 12 Mortgage-backed 106,708 129,615 130,025 130,802 182,422 158,842 96,765 92,084 166,493 181,741 140,520 91,673 Corporate securities 13 One year or less 79,388 95,488 79,349 82,169 92,566 81,955 76,528 67,299 76,073 84,847 83,253 63,122 14 More than one year 17,259 14,825 20,690 16,829 20,319 18,470 23,482 22,731 21,754 24,765 25,170 17,712 By type of counterparty With interdealer broker 15 U.S. Treasury 133,598 125,189 139,549 136,037 130,368 133,046 144,839 150,216 204,851 170,365 179,261 166,102 16 Federal agency and governmentsponsored enterprises 11,532 11,668 11,878 11,222 10,412 11,344 13,737 12,120 12,741 14,406 14,167 11,317 17 Mortgage-backed 32,160 33,296 36,435 35,009 47,825 45,799 29,636 25,614 38,520 47,633 32,056 27,251 18 Corporate 813 793 666 563 1,042 612 590 558 625 672 613 462 With other 19 U.S. Treasury 146,023 158,044 165,804 181,478 154,452 150,708 162,709 183,672 252,179 199,336 225,330 193,975 20 Federal agency and governmentsponsored enterprises 73,725 91,226 83,227 89,462 78,313 83,677 82,589 83,603 84,198 86,949 87,479 72,366 21 Mortgage-backed 74,548 96,318 93,590 95,793 134,598 113,044 67,129 66,470 127,973 134,108 108,464 64,422 22 Corporate 95,833 109,520 99,373 98,435 111,842 99,814 99,420 89,471 97,202 108,940 107,810 80,373 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 Aug. Sept. Oct. Oct. 3 Oct. 10 Oct. 17 Oct. 24 Oct. 31 Nov. 7 Nov. 14 Nov. 21 NET OUTRIGHT POSITIONS2 By type of security 1 U.S. Treasury bills 22,281 29,542 21,414 23,605 22,438 22,590 18,336 21,354 5,491 1100,,770000 2200,,331144 Treasury coupon securities by maturity 2 Three years or less -17,171 -13,889 -21,698 -15,222 -17,728 -20,821 -21,452 -29,568 -27,897 -26,296 -31,734 3 More than three years but less than or equal to six years -11,233 -10,010 -19,650 -13,247 -19,193 -18,954 -21,775 -21,421 -24,026 -22,704 -23,811 4 More than six but less than or equal to eleven years -14,383 -13,631 -8,478 -13,756 -7,642 -8,694 -6,976 -8,339 -8,587 -7,486 -11,358 5 More than eleven 8,486 10,701 10,868 11,769 11,197 9,745 9,651 12,495 13,586 13,700 11,113 6 Inflation-indexed 3,202 3,918 4,541 3,867 5,290 4,437 4,333 4,392 5,117 4,365 4,152 Federal agency and governmentsponsored enterprises 7 Discount notes 56,726 58,480 50,870 51,113 58,372 57,327 44,499 43,180 45,104 5555..996677 50,853 Coupon securities, by maturity 8 Three years or less 18,353 14,089 14,742 15,247 15,847 16,680 14,959 11.265 9,833 1122,,222266 11,510 9 More than three years but less than or equal to six years -1,895 -1,937 1,395 -933 2,786 695 1,728 1,370 1,023 1,582 897 10 More than six but less than or equal to eleven years 3,486 2,516 1,889 2,676 1,826 2,511 2.525 357 739 1,045 3,361 11 More than eleven 3,686 3,231 3,733 3,643 3.426 3,556 4,000 3,988 4,232 4,718 4,655 12 Mortgage-backed 12,198 7,506 12,233 7,914 9,534 8,753 18,528 13,967 28,015 25,172 19,937 Corporate securities 13 One year or less 15,756 18,108 18,969 21,033 19,301 19,157 17,640 18.895 22,512 24,956 21,561 14 More than one year 29,747 29,098 31,904 27,089 32,273 30,689 33,218 33,500 36,262 34,767 33,033 FINANCING3 Securities in U.S. Treasury 15 Overnight and continuing 555,619 536,941 565,640 564,986 572,274 558,485 559,013 573,068 584,875 581,145 507,774 16 Term 688,830 660,031 660,095 587,017 611,781 665,616 687,012 707,291 728,636 743,640 750,444 Federal agency and governmentsponsored enterprises 17 Overnight and continuing 116,534 112,778 120,632 123,630 117,524 121,157 121,265 121,299 145,788 113333,,559977 111199..442255 18 Term 177,889 171,037 176,742 165,236 168,441 172,761 182,881 187,817 205,840 197,372 232.333 Mortgage-backed securities 19 Overnight and continuing 24,844 24,748 26,548 27,948 27,742 30,203 22.371 25,276 32,415 28,176 23,420 20 Term 220,176 208,146 216,423 203,982 202,805 211,124 226,802 230,291 222,660 225,519 229,877 Corporate securities 21 Overnight and continuing 33,956 34,799 37,072 38,602 36,535 36,767 36,433 37,898 38,817 38,851 38,980 22 Term 13,216 12,781 14,101 14,247 14,199 14,557 13,777 13,808 14,528 13,984 16,727 MEMO: Reverse repurchase agreements 23 Overnight and continuing 366,386 338,279 362,499 360,601 357,363 348,798 354,913 389,737 406,008 382,523 297.926 24 Term 976,454 929,665 936,892 848,766 871,048 937,926 981,485 994,875 1,051,851 1,057,706 1,099,430 Securities out U.S. Treasury 25 Overnight and continuing 565,431 556,068 580,816 593,206 592,422 578,417 561,541 585,572 561,390 578,587 487,138 26 Term 620,092 596,767 589,529 527,418 540,399 583,625 624,158 636,553 666,574 671,469 688,687 Federal agency and governmentsponsored enterprises 27 Overnight and continuing 213,057 200,899 218,541 218,018 217,125 225,136 224,837 207,288 231,218 222233,,114400 205,545 28 Term 144,850 131,482 130,511 119,215 121,235 127,938 134,711 143,002 159,821 152,423 198,903 Mortgage-backed securities 29 Overnight and continuing 277,441 258,259 271,700 265,276 251,548 284,640 297,432 255,932 261,857 305,406 245,344 30 Term 110,410 112,292 134,317 i 10,038 121,481 138,676 147,547 139,969 132,790 134,053 193,704 Corporate securities 31 Overnight and continuing 82,922 80,776 92,074 91,730 91,857 91,312 93,083 92,193 95,076 103,381 95,421 32 Term 11,698 8,333 10,158 9,009 9,458 9,595 9,826 12,244 9,508 8,320 14,041 MEMO: Repurchase agreements 33 Overnight and continuing 1,006,856 965,270 1,019,698 1,016,816 1,003,565 1,033,208 1,037,783 1,005,472 1,008,405 1,059,874 888.904 34 Term 865,731 832,229 846,123 747,151 773,130 843,261 897,956 912,562 948.335 946,450 1,075,887 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 NonfinancialS tatistics • February 2002 1.44 FEDERAL AND FEDERALLY SPONSORED CREDIT AGENCIES Debt Outstanding Millions of dollars, end of period 2001 AAggeennccyy 11999977 11999988 11999999 22000000 May June July Aug. Sept. 1 Federal and federally sponsored agencies 1,022,609 1,296,477 1,616,492 1,851,632 1,967,515 1,986,146 2,009,746 2,028,562 2,071,164 2 Federal agencies 27,792 26,502 26,376 25,666 25.070 25,495 25,325 26,623 27,017 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 102 205 126 255 201 204 210 224 231 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 25,064 25,489 25,319 26,617 27,011 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 1,942,445 1,960,651 1,984,421 2.001,939 2,044.147 11 Federal Home Loan Banks 313,919 382,131 529,005 594,404 592,406 595,148 601.490 599,070 614,325 12 Federal Home Loan Mortgage Corporation 169,200 287,396 360,711 426,899 490,442 496,711 508,944 515,671 534,434 13 Federal National Mortgage Association 369.774 460,291 547,619 642,700 693,600 702,300 706,800 718,000 727,000 14 Farm Credit Banks8 63.517 63,488 68,883 74,181 75,363 76,330 76,307 76,264 76,385 15 Student Loan Marketing Association9 37,717 35,399 41,988 45,375 48,255 47,687 48,427 50,356 49,404 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 Corporation12 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 29,996 MEMO 19 Federal Financing Bank debt13 49,090 44,129 42,152 40,575 42,837 38,235 37,510 37,789 42,825 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 5,540 5,155 5,155 5,155 4,375 76 Rural Electrification Administration 14,898 14,091 14,085 13,126 12,989 13.381 13,483 13,602 13,599 27 Other 20,110 20,538 21,402 22,174 24,308 19,699 18,872 19,032 30,851 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 ii oo ss rr ss uu uu ee ss ee oo rr iissssuueerr,, 11999988 11999999 22000000 Apr. May June July Aug. Sept. Oct. Nov. 1 All issues, new and refunding1 262,342 215,427 180,403 16,985 26,248 29,298 19,232 21,152 13,159 30,446 30,105 By type of issue 2 General obligation 87,015 73,308 64,475 6,890 8,385 9,691 5,836 8,796 3,926 14,302 10,163 3 Revenue 175,327 142,120 115,928 10,094 17,863 19,606 13,396 12,356 9,233 16,144 19,942 By type of issuer 4 State 23,506 16,376 19,944 1,900 3,123 2,905 2,029 2,713 1,504 6,008 2,271 5 Special district or statutory authority2 178,421 152,418 111,695 113,344 17,281 20,672 11,784 12,351 9,137 17,382 21,601 6 Municipality, county, or township 60,173 46,634 39,273 3,740 5,845 5,721 5,419 6,088 2,518 7,056 6,233 7 Issues for new capital 160,568 161,065 154,257 12,264 20,002 20,044 15,015 13,550 10,110 21,249 21,009 By use of proceeds 8 Education 36,904 36,563 38,665 3,731 5,714 6,460 3,379 2,950 3,017 4,279 4,475 9 Transportation 19,926 17,394 19,730 1,381 2,522 1,258 3,160 1,669 1,195 1,587 2,882 10 Utilities and conservation 21,037 15,098 11,917 1,447 2,969 3,191 1,055 1,228 1,025 2,324 2,429 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 7,122 436 422 443 508 708 663 688 359 13 Other purposes 42,450 47,896 47,309 3,010 4,736 5,047 3,803 4,524 1,732 9,158 5,281 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 iissssuuee,, ooffffeerriinngg,, 11999988 11999999 22000000 oorr iissssuueerr Mar. Apr. May June July Aug. Sept. Oct. 1 All issues' 1,128,491 1,072,866 942,198 139,267 92,778 164,563 122,773 93,451 97,944 89,855 139,181 2 Bonds2 1,001,736 941,298 807,281 127,956 86,274 154,623 102,476 84,872 89,990 84,509 123,346 By type of offering 3 Sold in the United States 923,771 818,683 684,484 118,779 81,156 146,164 96,382 79,508 86,759 80,223 120,162 4 Sold abroad 77,965 122,615 122,798 9,177 5,117 8,459 6,094 5,364 3,231 4,286 3,185 MEMO 5 Private placements, domestic n.a. n.a. n.a. 652 0 2,563 3,146 12 48 0 224 By industry group 6 Nonfinancial 307,711 293,963 242,452 44,385 33,549 67,142 34,996 18,904 28,546 31,920 43,830 7 Financial 694,025 647,335 564,829 83,571 52,725 87,481 67,480 65,968 61,443 52,589 79,517 8 Stocks3 182,055 223,968 283,717 11,311 6,504 9,940 20,297 8,579 7,954 5,346 15,835 By type of offering 9 Public 126,755 131,568 134,917 11,311 6,504 9,940 20,297 8,579 7,954 5,346 15,835 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 7,718 4,822 6,809 16,630 4,237 5,487 81 7,611 12 Financial 52,642 21,284 16,548 3,593 1,682 3,131 3,667 4,342 2,467 5,265 8,224 1. Figures represent gross proceeds of issues maturing in more than one year; they are the 2. Monthly data include 144(a) offerings. principal amount or number of units calculated by multiplying by the offering price. Figures 3. Monthly data cover only public offerings. exclude secondary offerings, employee stock plans, investment companies other than closed- 4. Data are not available. end, intracorporate transactions, and Yankee bonds. Stock data include ownership securities SOURCE. Securities Data Company and the Board of Governors of the Federal Reserve issued by limited partnerships. System. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A32 Domestic NonfinancialS tatistics • February 2002 1.47 OPEN-END INVESTMENT COMPANIES Net Sales and Assets1 Millions of dollars 2001 IItteemm 11999999 22000000 Apr. May June July Aug. Sept. Oct/ Nov. 1 Sales of own shares2 1,791,894 2,279,315 152,327 158,361 139,270 138,428 142,577 105,038 153,827 146,636 ~> Redemptions of own shares 1.621.987 2.057.277 130.454 132.574 125,097 129.021 131,408 127.995 137.837 124.141 3 Net sales' 169.906 222,038 21,873 25,787 14,173 9,407 11,169 -22,957 15.990 22,495 4 Assets4 5,233,191 5,123,747 4,910,568 4,956,982 4,888,874 4,825,144 4,635,477 4,253,850 4,376,923 4,625,117 5 Cash^ 219.189 277,386 247,169 237.487 240.199 240,392 240,329 223,077 229.576 240.142 6 Other 5,014,002 4.846,361 4.663.399 4,719,495 4,648,675 4,584.752 4.395.148 4,030,773 4.147.347 4,384,975 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 Q4 Qi Q2 Q3 Q4 Ql Q2 Q3 1 Profits with inventory valuation and capital consumption adjustment 777.4 825.2 876.4 857.6 870.3 892.8 895.0 847.6 789.8 759.8 697.0 2 Profits before taxes 721.1 776.3 845.4 825.0 844.9 862.0 858.3 816.5 755.7 738.3 680.6 3 Profits-tax liability 238.8 253.0 271.5 267.3 277.0 280.4 274.9 253.5 236.8 228.0 204.9 4 Profits after tax 482.3 523.3 573.9 557.7 567.8 581.6 583.4 563.0 518.9 510.3 475.6 5 Dividends 348.7 343.5 379.6 349.6 361.5 373.7 386.2 397.0 405.2 412.3 420.4 6 Undistributed profits 133.6 179.8 194.3 208.1 206.3 207.9 197.2 165.9 113.7 98.0 55.2 7 Inventory valuation 18.3 -2.9 -12.4 -21.0 -23.8 -14.8 -3.6 -7.3 -1.9 -8.8 3.1 8 Capital consumption adjustment 38.0 51.7 43.4 53.6 49.2 45.5 40.4 38.4 36.0 30.3 13.4' 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 Ql 02 Q3 Q4 01 02 Q3 ASSEIS 1 Accounts receivable, gross2 742.1 845.4 958.6 883.2 921.5 939.9 958.6 954.4 988.7 967.7 2 Consumer 280.0 304.4 327.9 311.4 321.8 331.5 327.9 319.2 324.5 329.2 3 Business 340.9 .395.1 458.4 422.7 441.9 443.0 458.4 459.1 481.9 451.1 4 Real estate 121.2 145.8 172.3 149.1 157.7 165.4 172.3 176.1 182.3 187.4 5 LESS: Reserves for unearned income 62.7 61.4 69.7 62.4 66.1 68.3 69.7 69.9 61.5 60.8 6 Reserves for losses 14.7 14.7 16.7 15.2 15.7 15.6 16.7 17.2 17.4 18.0 7 Accounts receivable, net 664.7 769.3 872.2 805.6 839.6 856.1 872.2 867.3 909.7 888.9 8 All other 335.8 406.6 461.5 413.8 419.4 442.3 461.5 474.8 459.0 478.2 9 Total assets 1,000.5 1.175.9 1.333.7 1,219.4 1,259.0 1,298.4 1,333.7 1,342.1 1,368.7 1,367.1 LIABILITIES AND CAPITAL. 10 Bank loans 26.5 35.4 35.9 28.8 32.8 35.7 35.9 41.6 45.3 44.5 11 Commercial paper 233.3 230.4 238.8 233.0 224.3 218.8 238.8 180.9 181.6 171.0 Debt 12 Owed to parent 34.3 87.8 102.5 107.2 95.1 100.0 102.5 97.2 93.4 90.8 13 Not elsewhere classified 365.6 429.9 502.2 446.6 483.7 507.3 502.2 533.8 542.1 555.9 14 All other liabilities 216.0 237.8 301.8 264.4 277.5 288.1 301.8 325.1 336.3 327.7 15 Capital, surplus, and undivided profits 124.7 154.5 152.5 139.4 145.7 148.5 152.5 163.5 170.0 177.3 16 Total liabilities and capital 1,000.5 1,175.9 1,333.7 1,219.4 1,259.0 1,298.4 1,333.7 1,342.1 1,368.7 1,367.1 1. Includes finance company subsidiaries of bank holding companies but not of retailers 2. Before deduction for unearned income and losses. Excludes pools of securitized assets, and banks. Data are amounts carried 011 the balance sheets of finance companies; securitized pools arc 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 A3 3 1.52 DOMESTIC FINANCE COMPANIES Owned and Managed Receivables' Billions of dollars, amounts outstanding 2001 TTyyppee ooff ccrreeddiitt 11999988 11999999 22000000 May June July Aug. Sept. Oct. Seasonally adjusted 1 Total 904.4 1,027.0 1,181.3 1,221.7 1,235.7 1,242.4 1,244.1 1,244.3 1,236.9 2 Consumer 369.1 409.0 464.0 485.9 490.4 491.6 497.9 496.0 492.8 3 Real estate 150.3 174.0 198.9 210.0 208.5 212.7 214.9 213.1 217.8 4 Business . 385.0 444.0 518.4 525.7 536.8 538.1 531.2 535.2 526.3 Not seasonally adjusted 5 Total 912.7 1,036.4 1,192.1 1,224.6 1,241.8 1,237.2 1,238.3 1,239.5 1,235.7 6 Consumer 372.5 412.7 468.3 483.3 491.3 493.6 499.5 498.0 495.8 7 Motor vehicle loans 113.5 129.2 141.6 148.0 144.6 146.1 153.6 151.5 159.6 8 Motor vehicle leases 96.6 102.9 108.2 106.8 110.2 110.0 110.3 108.3 107.3 9 Revolving2 31.9 32.5 37.6 37.0 36.8 36.9 37.1 35.9 28.0 10 Other3 37.9 39.8 40.7 32.7 32.8 33.2 33.7 33.4 31.3 Securitized assets4 11 Motor vehicle loans 54.8 73.1 97.1 107.7 114.6 115.8 113.6 117.5 124.4 12 Motor vehicle leases 12.7 9.7 6.6 6.9 7.6 7.4 7.2 7.0 6.9 13 Revolving 5.5 6.7 19.6 28.4 29.1 29.1 28.9 29.3 23.5 14 Other 19.6 18.8 17.1 15.7 15.5 15.2 15.2 15.0 14.8 15 Real estate 150.3 174.0 198.9 210.0 208.5 212.7 214.9 213.1 217.8 16 One- to four-family 90.0 108.2 130.6 141.5 140.1 144.7 146.9 144.8 150.2 17 Other 31.2 37.6 41.7 42.4 42.2 42.0 42.2 42.6 42.1 Securitized real estate assets4 18 One- to four-family 29.0 28.0 24.7 23.6 23.4 23.2 23.0 22.8 22.7 19 Other .1 .2 1.9 2.6 2.8 2.8 2.8 2.9 2.9 20 Business 389.9 449.6 525.0 531.3 542.0 531.0 523.9 528.4 522.0 21 Motor vehicles 64.8 69.4 75.5 70.8 83.9 79.7 56.9 57.8 52.7 22 Retail loans 19.5 21.1 18.3 17.4 16.6 16.6 16.7 16.7 16.8 23 Wholesale loans5 32.8 34.8 39.7 35.3 49.3 45.0 22.2 23.6 18.7 24 Leases 12.5 13.6 17.6 18.1 18.1 18.0 18.0 17.5 17.2 25 Equipment 212.2 238.7 283.5 291.4 292.6 288.0 290.0 288.2 290.6 26 Loans 59.2 64.5 70.2 73.1 76.1 74.0 75.2 76.8 79.9 27 Leases 153.0 174.2 213.3 218.3 216.4 214.0 214.8 211.4 210.7 28 Other business receivables6 63.9 87.0 99.4 101.8 105.4 103.7 102.9 105.1 104.8 Securitized assets4 29 Motor vehicles 29.2 31.5 37.8 40.0 31.4 30.6 45.2 48.0 45.3 30 Retail loans 2.6 2.9 3.2 3.0 3.1 2.9 2.8 2.6 2.4 31 Wholesale loans 24.7 26.4 32.5 34.3 25.8 25.1 39.8 42.8 40.3 32 Leases 1.9 2.1 2.2 2.7 2.6 2.6 2.6 2.7 2.7 33 Equipment 13.0 14.6 23.1 21.6 22.6 23.0 22.7 23.1 22.5 34 Loans 6.6 7.9 15.5 13.9 15.2 15.2 14.8 15.1 14.5 35 Leases 6.4 6.7 7.6 7.7 7.5 7.8 7.9 8.0 8.0 36 Other business receivables6 6.8 8.4 5.6 5.7 6.0 6.0 6.2 6.1 6.1 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 reclassification of receivables among the three major categories (consumer, consumer goods, such as appliances, apparel, boats, and recreation vehicles. real estate, and business) and in discontinuities in some component series between May and 4. Outstanding balances of pools upon which securities have been issued; these balances June 1996. are no longer carried on the balance sheets of the loan originator. Includes finance company subsidiaries of bank holding companies but not of retailers and 5. Credit arising from transactions between manufacturers and dealers, that is, floor plan banks. Data in this table also appear in the Board's G.20 (422) monthly statistical release. For financing. ordering address, see inside front cover. 6. Includes loans on commercial accounts receivable, factored commercial accounts, and 1. Owned receivables are those carried on the balance sheet of the institution. Managed receivable dealer capital; small loans used primarily for business or farm purposes; and receivables are outstanding balances of pools upon which securities have been issued; these wholesale and lease paper for mobile homes, campers, and travel trailers. balances are no longer carried on the balance sheets of the loan originator. Data are shown Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A34 Domestic NonfinancialS tatistics • February 2002 1.53 MORTGAGE MARKETS Mortgages on New Homes Millions of dollars except as noted 2001 May June July Aug. Sept. Oct. Nov. Terms and yields in primary and secondary markets PRIMARY MARKETS Terms' 1 Purchase price (thousands of dollars) 195.2 210.7 234.5 241.4 250.6 242.9 241.5 246.6 242.9 252.2 2 Amount of loan (thousands of dollars) 151.1 161.7 177.0 181.4 188.7 182.7 181.3 184.3 181.2 189.1 3 Loan-to-price ratio (percent) 80.0 78.7 77.4 77.6 77.3 77.3 76.6 77.1 76.9 77.2 4 Maturity (years) 28.4 28.8 29.2 28.6 28.7 28.8 28.7 29.0 28.5 28.6 5 Fees and charges (percent of loan amount)2 .89 .77 .70 .69 .66 .66 .61 .61 .67 .63 Yield (percent per year) 6 Contract rate' 6.95 6.94 7.41 7.02 7.02 7.01 7.06 6.80 6.63 6.54 7 Effective rate'-3 7.08 7.06 7.52 7.12 7.12 7.11 7.15 6.89 6.73 6.63 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 6.61 6.55 6.49 6.29 6.03 5.86 5.96 Activity in secondary markets FEDERAL NATIONAL MORTGAGE ASSOCIATION Mortgage holdings (end of period) 1 1T otal 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 16,825 24,430 26,082 22,111 16,016 20,020 25,389 Mortgage commitments (during period) 15 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 255,010 324,443 385,693 437,582 443,810 454,485 465,553 470,850 477,588 483,911 18 FHA/VA insured 785 1,836 3,332 2,785 2,738 2,689 2,643 2,597 2,553 3,562 19 Conventional 254,225 322,607 382,361 434,797 441,072 451,796 462,910 468,253 475,035 480,349 Mortgage transactions (during period) ;o Purchases 267,402 239,793 174,043 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 Sales 250,565 233,031 166,901 33,670 38,133 44,574 33,933 32,666 31,646 38,958 22 Mortgage commitments contracted (during period)9 281,899 228,432 169,231 39,897 37,312 43,788 34,087 31,140 41,346 42,619 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 5,203,854r 5,726,058r 6,363,297r 6,637,220r 6,790,900r 6,938,109r 7,061,571r 7,281,487 By type of property 2 One- to four-family residences 3,975,197' 4,365,761' 4,800,174' 4,993,038' 5,120,042' 5,226,585' 5,319,959' 5,480,513 3 Multifamily residences 301,700' 333,677' 376,466' 395,est/ 403,925' 414,386' 423,557' 438,827 4 Nonfarm, nonresidential 836,657' 930,113' 1,083,695' 1,142,082' 1,158,976' 1,188,302' 1,208,182' 1,249,096 5 Farm 90,300 96,506 102,962 106,451 107,957 108,836 109,873 113,050 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 2,716,269 7 Commercial banks2 1,245,334 1,338,273 1,496,844 1,615,794 1,650,294 1,661,411 1,688,673 1,727,463 8 One- to four-family 745,777 798,009 880,208 949,223 968,831 966,502 978,144 999,396 9 Multifamily 50,705 54,174 67,666 75,795 77,031 77,821 79,890 80,542 in Nonfarm, nonresidential 421,865 457,054 517,130 557,059 570,513 583,071 596,405 612,366 n 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 206,840 213,640 230,787 232,615 234,735 235,941 235,050 237,146 18 One- to four-family 7,187 6,590 5,934 5,242 4,907 4,903 4,877 5,003 19 Multifamily 30,402 31,522 32,818 33,150 33,478 33,681 33,557 33,842 ?o Nonfarm, nonresidential 158,779 164,004 179,048 180,856 182,646 183,757 183,078 184,634 21 Farm 10,472 11,524 12,987 13,367 13,704 13,600 13,538 13,667 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 26 Farmers Home Administration4 41,195 40,851 73,871 72,896 73,009 73,323 73,361 73,206 27 One- to four-family 17,253 16,895 16,506 16,435 16,444 16,372 16,297 16,153 28 Multifamily 11,720 11,739 11,741 11,729 11,734 11,733 11,725 11,720 29 Nonfarm, nonresidential 7,370 7,705 41,355 40,554 40,665 41,070 41,247 41,262 3n 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 3,303,731' 3,450,243 54 Government National Mortgage Association 536,879 537,446 582,263 590,708 602,628 611,553 601,523' 598,075 55 One- to four-family 523,225 522,498 565,189 572,661 584,152 592,624 581,743' 577,284 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 600,812' 654,617' 697,140' 718,705' 731,552' 740,923' 746,727' 759,758 74 One- to four-family 389,294' 433,542' 467,503' 485,316' 503,266' 511,887' 516,580' 529,296 75 Multifamily 71,146' 77,421' 80,588' 82,997' 84,237' 84,544' 85,263' 86,129 76 Nonfarm, nonresidential 121,593' 123,679' 127,832' 128,503' 121,871' 122,144' 122,336' 121,174 77 Farm 18,779 19,974 21,217 21,889 22,179 22,348 22,547 23,160 1. Multifamily debt refers to loans on structures of five or more units. 6. Includes securitized home equity loans. 2. Includes loans held by nondeposit trust companies but not loans held by bank trust 7. Other holders include mortgage companies, real estate investment trusts, state and local departments. credit agencies, state and local retirement funds, noninsured pension funds, credit unions, and 3. Includes savings banks and savings and loan associations. finance companies. 4. FmHA-guaranteed securities sold to the Federal Financing Bank were reallocated from SOURCE. Based on data from various institutional and government sources. Separation of FmHA mortgage pools to FmHA mortgage holdings in 1986:Q4 because of accounting nonfarm mortgage debt by type of property, if not reported directly, and interpolations and changes by the Farmers Home Administration. extrapolations, when required for some quarters, are estimated in part by the Federal Reserve. 5. Outstanding principal balances of mortgage-backed securities insured or guaranteed by Line 69 from Inside Mortgage Securities and other sources. the agency indicated. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A36 Domestic NonfinancialS tatistics • February 2002 1.55 CONSUMER CREDIT1 Millions of dollars, amounts outstanding, end of period 2001 HHoollddeerr aanndd ttyyppee ooff ccrreeddiitt 11999988 11999999 22000000 May June July Aug. Sept. Oct. Seasonally adjusted 11 TToottaall 1,315,797 1,413,564 1,557,931 1,617,041 1,616,293 1,615,308 1,619,629 1,621,615 1,628,649 22 RReevvoollvviinngg 560,155 594,339 663,170 698,536 699,651 694,785 693,486 692,732 689,032 33 NNoonnrreevvoollvviinngg22 755,642 819,225 894,761 918,505 916,642 920,524 926,143 928,882 939,617 Not seasonally adjusted 4 Total 1,346,596 1,446,127 1,593,051 1,602,128 1,608,104 1,607,705 1,621,982 1,622,820 1,631,729 By major holder 5 Commercial banks 508,932 499,758 541,470 543,048 540,213 535,459 537,724 535,255 539,758 6 Finance companies 183,345 201,549 219,783 217,697 214,271 216,191 224,310 220,849 218,953 / Credit unions 155,406 167,921 184,434 185,683 186,357 185,081 186,274 185,732 186,120 8 Savings institutions 51,611 61,527 64,557 65,396 65,340 66,584 67,828 69,072 68,275 9 Nonfinancial business 74,877 80,311 82,662 69,963 68,013 65,228 63,310 60,212 58,719 10 Pools of securitized assets3 372,425 435,061 500,145 520,340 533,911 539,164 542,536 551,700 559,904 By major type of credit* 11 Revolving 586,163 621,914 692,955 691,141 693,662 687,439 689,874 688,512 685,626 12 Commercial banks 210,346 189,352 218,063 216,268 213,014 208,852 206,279 203,126 208,591 13 Finance companies 31,944 32,483 37,561 37,033 36,848 36,949 37,082 35,901 27,999 14 Credit unions 19,930 20,641 22,226 21,207 21,268 21,799 22,195 21,879 21,490 15 Savings institutions 12,450 15,838 16,560 16,589 16,389 16,568 16,746 16,925 16,862 16 Nonfinancial business 39,166 42,783 42,430 32,690 31,366 29,314 27,603 25,207 23,709 17 Pools of securitized assets3 272,327 320,817 356,114 367,354 374,776 373,958 379,968 385,474 386,975 18 Nonrevolving 760,433 824,213 900,095 910,987 914,442 920,267 932,108 934,308 946,103 19 Commercial banks 298,586 310,406 323,407 326,780 327,199 326,607 331,445 332,129 331,168 20 Finance companies 151,401 169,066 182,221 180,664 177,422 179,242 187,228 184,948 190,954 21 Credit unions 135,476 147,280 162,208 164,476 165,089 163,282 164,079 163,853 164,630 22 Savings institutions 39,161 45,689 47,997 48,807 48,951 50,016 51,082 52,147 51,413 23 Nonfinancial business 35,711 37,528 40,232 37,274 36,647 35,914 35,707 35,005 35,010 24 Pools of securitized assets3 100,098 114,244 144,031 152,986 159,134 165,207 162,567 166,226 172,929 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 Apr. May June July Aug. Sept. Oct. INTEREST RATES Commercial banks2 1 48-month new car 8.72 8.44 9.34 n.a. 8.67 n.a. n.a. 8.31 n.a. n.a. 2 24-month personal 13.74 13.39 13.90 n.a. 13.28 n.a. n.a. 13.25 n.a. n.a. Credit card plan 3 All accounts 15.71 15.21 15.71 n.a. 15.07 n.a. n.a. 14.60 n.a. n.a. 4 Accounts assessed interest 15.59 14.81 14.91 n.a. 14.63 n.a. n.a. 14.64 n.a. n.a. Auto finance companies 5 New car 6.30 6.66 6.61 6.80 6.56 6.15 6.20 6.41 5.42 2.71 6 Used car 12.64 12.60 13.55 12.82 12.57 12.05 11.79 12.06 12.01 11.41 OTHER TERMS3 Maturity (months) 1 New car 52.1 52.7 54.9 56.3 57.0 57.2 57.3 57.7 57.2 53.7 8 Used car 53.5 55.9 57.0 57.9 57.8 57.6 57.6 57.6 57.6 57.2 Loan-to-value ratio 9 New car 92 92 92 91 92 91 91 91 92 94 10 Used car 99 99 99 100 100 100 100 100 101 100 Amount financed (dollars) 11 New car 19,083 19,880 20,923 21,914 21,871 22,124 22,687 22,591 23,049 24,443 12 Used car 12,691 13,642 14,058 14,347 14,350 14,586 14,571 14,321 14,408 14,627 1. The Board's series on amounts of credit covers most short- and intermediate-term credit 2. Data are available for only the second month of each quarter, extended to individuals. Data in this table also appear in the Board's G.19 (421) monthly 3. At auto finance companies, statistical release. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A37 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS1 Billions of dollars; quarterly data at seasonally adjusted annual rates 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 1999 Ql Q2 Q3 Q4 Ql' Q2' Q3 Nonfinancial sectors 1 Total net borrowing by domestic nonfinancial sectors . . 705.9 733.6r 805.5' l,048.8r l,099.8r 951.r 978.2r 792.0r 772.1r 1,006.5 1,018.6 1,275.5 By sector and instrument ? Federal government 144.4 145.0 23.1 -52.6 -71.2 -217.2 -408.7 -226.2 -331.3 -4.3 -256.0 255.7 3 Treasury securities 142.9 146.6 23.2 -54.6 -71.0 -215.2 -410.5 -223.8 -330.2 -2.1 -257.1 256.0 4 Budget agency securities and mortgages 1.5 -1.6 -.1 2.0 -.2 -2.1 1.8 -2.4 -1.2 -2.2 1.1 -.4 5 Nonfederal 561.5 588.6' 782.4' 1,101.5' 1.171.1' 1,168.4' 1,386.9' 1,018.2' 1,103.5' 1,010.9 1,274.6 1,019.8 BY instrument 6 Commercial paper 18.1 -.9 13.7 24.4 37.4 29.8 110.4 56.1 -4.0 -207.2 -141.5 -74.1 7 Municipal securities and loans —48.2 2.6 71.4 96.8 68.2 20.0 30.1 31.0 60.1 110.7 112.4 56.0 8 Corporate bonds 91.1 116.3 150.5 218.7 229.9 186.2 153.8 168.8' 175.6 400.9 428.0 187.7 9 Bank loans n.e.c 103.7 70.4' 106.4' 108.1' 82.6' 139.5 166.5' 47.0' 59.3' -5.9 -153.2 -9.9 in Other loans and advances 67.2 28.7' 59.5' 82.1' 57.1' 140.1' 124.2' 16.5' 125.2 -12.0 117.7 78.4 ii Mortgages 190.6 280.4' 323.3' 496.4' 596.3' 502.9' 659.6' 570.7' 551.6' 564.6 837.7 760.6 l? Home 179.1 245.7' 258.3' 389.9' 435.2' 361.9' 490.3' 441.9' 395.9' 434.3 622.9 544.7 13 Multifamily residential 4.5 9.4' 7.5' 23.8 40.5' 29.2' 48.0' 28.8' 41.7 39.3 55.5 57.7 14 Commercial 5.7 22.5 54.4' 76.1' 114.8' 104.4' 111.2' 93.4' 112.0' 86.8 146.8 151.6 15 Farm 1.4 2.7 3.1 6.5 5.8 7.4 10.1 6.5 2.0' 4.2 12.4 6.5 16 Consumer credit 138.9 91.3' 57.5' 75.0' 99.5' 149.9' 142.1' 128.2' 135.6' 159.9 73.6 21.3 BY borrowing sector 17 Household 339.3 343.8' 332.7' 467.2' 517.1' 526.9' 624.3' 554.5' 514.0' 554.4 671.2 616.2 18 Nonfinancial business 273.7 251.6' 393.6' 554.0' 601.6' 628.5' 744.4' 440.0' 535.8' 352.6 494.7 360.6 19 Corporate 224.9 179.4' 292.7' 406.3' 440.8' 479.7' 550.2' 303.7' 388.8' 225.2 354.3 248.9 20 Nonfarm noncorporate 46.1 67.3' 94.7' 139.7' 155.4' 135.0' 184.5' 129.1' 134.2 121.3 130.6 108.6 71 Farm 2.7 4.9 6.2 8.0 5.5 13.8 9.7 7.2 12.8' 6.0 9.8 3.1 22 State and local government -51.5 -6.8 56.1 80.3 52.3 12.9 18.2 23.8 53.7 103.9 108.7 43.0 23 Foreign net borrowing in United States 78.5 88.4 71.8 43.4 27.9 120.3' -7.9' 88.6' 66.8' -6.9 -57.2 -126.8 24 Commercial paper 13.5 11.3 3.7 7.8 16.3 57.8 12.0 7.0 50.1 -25.4 -5.6 -26.5 75 Bonds 57.1 67.0 61.4 34.9 16.8 47.6' -27.3' 71.4' 9.0' 17.1 -15.9 -101.4 2.6 Bank loans n.e.c 8.5 9.1 8.5 6.7 .5 15.4 5.7 11.9 12.2 13.0 -31.0 4.4 27 Other loans and advances -.5 1.0 -1.8 -6.0 -5.7 -.5 1.7 -1.7 -4.6 -11.6 -4.7 -3.4 28 Total domestic plus foreign 784.5 822.0r 877.3' l,092.2r l,127.8r l,071.4r 970.3r 880.6' 838.9r 999.6 961.5 1,148.7 Financial sectors 29 Total net borrowing by financial sectors 454.0 550.1r 662.2r l,087.2r l,084.4r 608.0r 897.1r 794.0r 963.1' 864.2 795.7 1,086.3 Bx instrument 30 Federal government-related 204.2 231.4 212.9 470.9 592.0 224.4 381.1 514.8 613.6 432.6 674.8 820.6 31 Government-sponsored enterprise securities 105.9 90.4 98.4 278.3 318.2 104.9 248.9 278.1 304.5 262.3 268.3 328.0 32 Mortgage pool securities 98.3 141.0 114.6 192.6 273.8 119.5 132.2 236.7 309.1 170.3 406.5 492.6 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 249.8 318.7' 449.3' 616.3' 492.5' 383.6' 516.1' 279.2' 349.5' 431.7 120.9 265.7 35 Open market paper 42.7 92.2 166.7 161.0 176.2 114.6 136.7 106.5 153.2 -134.6 -85.4 -85.6 36 Corporate bonds 195.9 178.1' 218.9' 310.1' 218.2' 171.8' 243.3' 205.0' 203.7' 438.9 186.8 309.6 37 Bank loans n.e.c 2.5 12.6 13.3' 30.1 -14.2' 3.2' 6.9' -6.7' -4.4 27.1 14.3 -8.1 38 Other loans and advances 3.4 27.9 35.6 90.2 107.1 87.0 119.2 -31.6 -4.8 107.8 -11.0 58.0 39 Mortgages 5.3 7.9 14.9 24.8 5.1 7.0 10.0 6.0 1.8 -7.5 16.2 -8.2 BY borrowing sector 40 Commercial banking 22.5 13.0 46.1 72.9 67.2 78.3 99.3 43.4 18.8 148.3 -15.8 69.8 41 Savings institutions 2.6 25.5 19.7 52.2 48.0 57.5 69.0 -37.9 20.4 62.5 16.1 12.6 42 Credit unions -.1 .1 .1 .6 2.2 -2.9 .9 1.1 1.0 -.6 .8 1.5 43 Life insurance companies -.1 1.1 .2 .7 .7 -.7 -1.1 -.3 -.7 -2.4 .1 3.5 44 Government-sponsored enterprises 105.9 90.4 98.4 278.3 318.2 104.9 248.9 278.1 304.5 262.3 268.3 328.0 45 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 119.5 132.2 236.7 309.1 170.3 406.5 492.6 46 Issuers of asset-backed securities (ABSs) 142.4 150.8 202.2 321.4 223.4 175.0 146.0 156.2 307.9 295.8 172.3 303.2 47 Finance companies 50.2 50.6' 57.8' 57.1' 70.3' 61.1' 139.4' 98.1' 26.1' -72.8 64.1 22.1 48 Mortgage companies -2.2 4.1 -4.6 1.6 .2 -3.0 2.7 -.3 1.0 .7 .6 .8 49 Real estate investment trusts (REITs) 4.5 11.9 39.6 62.7 6.3 11.5 9.8 -2.4 -8.1 -6.1 10.5 -10.2 50 Brokers and dealers -5.0 -2.0 8.1 7.2 -17.2 44.4 -.7 25.4 -6.6 -23.9 35.7 12.3 51 Funding corporations 34.9 63.8' 79.9' 40.0' 91.5' -37.5' 50.6' -4.2' -10.4' 30.1 -163.6 -150.0 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A38 Domestic Nonfinancial Statistics • February 2002 1.57 FUNDS RAISED IN U.S. CREDIT MARKETS'—Continued Billions of dollars; quarterly data at seasonally adjusted annual rates 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966rr 11999977rr 11999988rr 11999999'' Qlr Q2r Q3r Q4r Qlr Q2r Q3 All sectors 5522 TToottaall nneett bboorrrroowwiinngg,, aallll sseeccttoorrss 1,238.5 1,372.1 1,539.5 2,179.4 2,212.2 1,679.4 1,867.4 1,674.6 1,802.0 1,863.8 1,757.2 2,235.0 5533 OOppeenn mmaarrkkeett ppaappeerr 74.3 102.6 184.1 193.1 229.9 202.1 259.1 169.7 199.3 -367.2 -232.5 -186.3 5544 UU..SS.. ggoovveerrnnmmeenntt sseeccuurriittiieess 348.6 376.4 236.0 418.3 520.7 7.2 -27.6 288.6 282.2 428.2 418.8 1,076.3 5555 MMuunniicciippaall sseeccuurriittiieess -48.2 2.6 71.4 96.8 68.2 20.0 30.1 31.0 60.1 110.7 112.4 56.0 5566 CCooiippoorraattee aanndd ffoorreeiiggnn bboonnddss 344.1 361.3 430.8 563.7 465.0 405.6 369.8 445.2 388.3 856.9 598.9 395.9 5577 BBaannkk llooaannss nn..ee..cc 114.7 92.1 128.2 145.0 68.9 158.0 179.2 52.2 67.1 34.1 -170.0 -13.6 5588 OOtthheerr llooaannss aanndd aaddvvaanncceess 70.1 57.7 93.2 166.3 158.5 226.6 245.1 -16.8 115.8 84.2 102.0 133.0 5599 MMoorrttggaaggeess 196.0 288.2 338.2 521.2 601.4 509.9 669.6 576.7 553.5 557.1 853.9 752.3 6600 CCoonnssuummeerr ccrreeddiitt 138.9 91.3 57.5 75.0 99.5 149.9 142.1 128.2 135.6 159.9 73.6 21.3 Funds raised through mutual funds and corporate equities 61 Total net issues 147.2r 232.9 185.2 108.8 153.7 390.1 209.9 245.6 -14.8 233.7 387.5 88.9 62 Corporate equities -,2r -4.7 -79.9 -165.8 -34.6 82.8 -22.2 -33.8 -171.5 137.3 119.5 -80.9 63 Nonfinancial corporations -58.3 -69.5 -114.4 -267.0 -143.5 61.2 -245.2 -67.6 -350.8 -25.6 -72.6 -118.5 64 Foreign shares purchased by U.S. residents 65.4 82.8 57.6 101.3 114.4 62.6 185.9 61.1 89.4 109.2 208.8 10.9 65 Financial corporations -7.3r -18.1 -23.1 -.1 -5.6 -41.0 37.2 -27.3 89.8 53.7 -16.7 26.7 66 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 307.3 232.0 279.4 156.7 96.4 268.0 169.8 1. Data in this table also appear in the Board's Z. 1 (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 A39 1.58 SUMMARY OF FINANCIAL TRANSACTIONS1 Billions of dollars except as noted; quarterly data at seasonally adjusted annual rates 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr 11999955 11999966 11999977 11999988 11999999 QL Q2 Q3 Q4 QL Q2' Q3 NET LENDING IN CREDIT MARKETS2 1 Total net lending in credit markets 1,238.5 l,372.1r l,539.5r 2,179.4r 2,212.2r l,679.4r l,867.4r l,674.6r l,802.0r l,863.8r 1,757.2 2,235.0 2 Domestic nonfederal nonfinancial sectors -79.3 74.0' -21.3' 99.5' 196.3' -218.5' 90.3' -255.1' -227.2' -171.6' -153.8 -178.8 Household 16.5 113.7' -11.8' -37.1' 148.6' -274.4' -10.4' -183.3' -212.1' -172.5' -140.5 -118.5 4 Nonfinancial corporate business -8.8 -10.2 -12.7 -16.0 -2.8 56.8' 60.4' -51.4' -24.5' 4.1' 16.6 -23.7 5 Nonfarm noncorporate business 4.4 4.2 3.0 18.1 7.1 -2.1 .4 -4.0 -2.7 -4.8 -5.2 -6.2 6 State and local governments -91.4 -33.7 .1 134.5 43.4 1.2 39.9 -16.4 12.1 1.5 -24.8 -30.4 7 Federal government -.5 -7.2 5.1 13.5 5.8 6.5 7.7 4.5 10.6 4.6 4.0 1.0 8 Rest of the world 273.9 414.4 311.3 254.2 208.8 315.2 197.9 216.2 387.8 411.2' 349.6 381.9 9 Financial sectors 1,044.4 890.9' 1,244.5' 1,812.1' 1,801.3' 1,576.1' 1,571.4' 1,709.0' 1,630.7' 1,619.7' 1,557.4 2,030.9 10 Monetary authority 12.7 12.3 38.3 21.1 25.7 102.0 -5.4 39.1 -.9 53.7 26.4 8.7 11 Commercial banking 265.9 187.5 324.3 305.2 308.2 415.8 497.4 363.2 157.0 152.8 133.9 234.8 17 U.S.-chartered banks 186.5 119.6 274.9 312.0 317.6 448.2 510.9 324.8 75.3 107.9 179.7 215.4 13 Foreign banking offices in United States 75.4 63.3 40.2 -11.9 -20.1 4.5 -22.3 32.8 81.1 41.3 ^18.6 16.5 14 Bank holding companies -.3 3.9 5.4 -.9 6.2 -42.2 3.5 -6.7 -3.2 7.3 -2.8 -1.4 15 Banks in U.S.-affiliated areas 4.2 .7 3.7 6.0 4.4 5.4 5.4 12.3 3.8 -3.6 5.6 4.2 16 Savings institutions -7.6 19.9 -4.7 36.1 68.6 55.6 65.0 62.7 42.5 52.5 57.3 -6.0 17 Credit unions 16.2 25.5 16.8 19.0 27.5 35.7 31.6 21.2 33.6 23.2' 7.6 61.7 18 Bank personal trusts and estates -8.3 -7.7 -25.0 -12.8 27.8 18.9 13.8 17.6 18.1 10.7 13.4 8.8 19 Life insurance companies 100.0 69.6 104.8 76.9 53.5 65.0 52.9 74.8 38.8 95.3 124.9 162.4 20 Other insurance companies 21.5 22.5 25.2 5.8 -3.0 -11.2 -18.1 6.2 -11.7 2.1 .1 9.0 21 Private pension funds 19.9 -4.1 47.6 56.4 45.0 46.8 24.7 64.9 28.7 26.1 -7.1 -.9 22 State and local government retirement funds 38.3 35.8 67.1 72.1 46.9 63.3 31.5 37.6 86.1' -70.7' 53.4 18.5 73 Money market mutual funds 86.5 88.8 87.5 244.0 182.0 161.5 -118.2 256.1 296.0 303.4 166.2 379.1 74 Mutual funds 52.5 48.9 80.9 124.8 47.2 -66.9 63.1 50.1 60.8 69.4 165.1 123.9 75 Closed-end funds 10.2 4.6 -2.6 5.5 7.4 -8.4 -8.4 -8.4 -8.4 -8.4 -8.4 -8.4 26 Government-sponsored enterprises 95.4 97.4 106.6 314.6 291.7 205.4 250.9 188.6 318.8 347.8 296.2 267.7 77 Federally related mortgage pools 98.3 141.0 114.6 192.6 273.8 119.5 132.2 236.7 309.1 170.3 406.5 492.6 28 Asset-backed securities issuers (ABSs) 120.6 120.5 163.8 281.7 205.2 154.2 111.4 120.9 278.9 269.8 150.0 276.4 29 Finance companies 49.9 18.9' 23.1' 77.3' 97.0' 145.4' 147.6' 102.8' 36.2' -.9' 126.7 -42.1 30 Mortgage companies -3.4 8.2 -9.1 3.2 .3 -6.0 5.5 -.5 2.0 1.4 1.1 1.7 31 Real estate investment trusts (REITs) 1.4 4.4 20.2 -5.1 -2.6 -16.3 -2.5 -3.6 -2.8 4.0 1.1 7.7 37 Brokers and dealers 90.1 -15.7 14.9 6.8 -34.7 102.9' 89.8' 152.1' -69.0 289.5' 35.4 250.1 33 Funding corporations -15.7 12.6 50.4 -12.9 133.8 -7.2 206.8' -73.0' 17.0' -172.5' -192.4 -214.6 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Net flows through credit markets 1,238.5 l,372.1r l,539.5r 2,179.4r 2,212.2r l,679.4r l,867.4r 1,674.6' l,802.0r l,863.8r 1,757.2 2,235.0 Other financial sources 35 Official foreign exchange 8.8 -6.3 .7 6.6 -8.7 1.5 -8.8 .7 44..99 --11..55 44..77 1199..11 36 Special drawing rights certificates 2.2 -.5 -.5 .0 -3.0 .0 -8.0 -4.0 -4.0 .0 .0 .0 37 Treasury currency .7 .5 .5 .6 1.0 2.2 3.2 4.2 -0.0 -1.1 1.1 -0.0 38 Foreign deposits 35.3 85.9 107.7 6.5 61.0 313.3 3.4 -40.8 207.4 235.5 -146.5 15.4 39 Net interbank transactions 10.0 -51.6 -19.7 -32.3 17.6 -72.9 151.9 -170.6 10.6 -45.7' 19.3 19.7 40 Checkable deposits and currency -12.8 15.7 41.2 47.4 151.4 -206.8 -33.8 5.0 -50.2 90.3 100.8 245.3 41 Small time and savings deposits 96.6 97.2 97.1 152.4 44.7 104.6 123.0 224.5 310.8 288.3 194.2 229.2 47 Large time deposits 65.6 114.0 122.5 92.1 130.6 154.1 101.2 152.9 65.2 130.6 51.9 14.9 43 Money market fund shares 141.2 145.4 155.9 287.2 249.1 239.7 71.5 250.9 371.1 621.4 322.5 367.7 44 Security repurchase agreements 110.5 41.4 120.9 91.3 169.7 275.8' 155.1' 277.1' -265.4' -12.8' 177.7 262.2 45 Corporate equities -.2' -4.7' -79.9' -165.8' -34.6' 82.8' -22.2' -33.8' -171.5' 137.3' 119.5 -80.9 46 Mutual fund shares 147.4 237.6 265.1 274.6 188.3 307.3 232.0 279.4 156.7 96.4 268.0 169.8 47 Trade payables 133.7 123.3 139.7 109.2 222.3 193.6' 212.9' 138.5' 119.3' -16.2' -100.0 -81.4 48 Security credit 26.7 52.4 111.0 103.3 104.3 507.8' -95.3' 97.5' 74.4' -140.9' -28.5 485.8 49 Life insurance reserves 45.8 44.5 59.3 48.0 50.8 54.9 45.6 53.0 47.3 52.7 53.2 56.5 50 Pension fund reserves 158.8 148.3 201.4 202.1 184.4' 206.9' 260.7' 227.0' 168.8' 255.5' 168.7 192.9 51 Taxes payable 7.8 19.5 22.3 21.3 22.3 31.0' 26.5' 3.3' 26.0' 3.3' 16.3 114.4 52 Investment in bank personal trusts 6.4 -5.3 ^19.9 -41.8 -6.5 -28.4 -33.1 -29.2 -28.0 -26.1 -22.7 -28.2 53 Noncorporate proprietors' equity -.2 -31.1' -70.9' -80.6' -64.8' -63.4' -45.0' -26.7' -49.7' -48.5' -25.1 -60.2 54 Miscellaneous 496.9 526.1' 492.8' 986.8' 749.8' 904.3' 1,084.0' 1,399.2' 733.1' 500.7' 789.8 571.8 55 Total financial sources 2,719.7r 2,924.5r 3,256.8r 4,288.2r 4,441,8r 4,687.7r 4,092.3r 4,482.8r 3,528.8r 3,983. lr 3,722.3 4,749.2 Liabilities not identified as assets (—) 56 Treasury currency -.3 -.4 -.2 -.1 -.7 -1.8 -.7 .9 -3.3 -3.6 -.5 -.7 57 Foreign deposits 25.0' 59.4' 106.2 -8.5 45.8 263.1' -82.2' -100.2' 200.3' 181.5' -121.2 24.8 58 Net interbank liabilities -3.1 -3.3 -19.9 3.4 3.5 25.3 5.4 -12.1 51.1 16.7 13.6 8.3 59 Security repurchase agreements 25.7 2.4 63.2 60.6 30.0 567.2' 51.9' 126.5' -301.4' -161.7' 171.9 36.6 60 Taxes payable 21.1 23.1 28.0 19.7 6.5 9.5' 4.8' -2.6' 44.6' 4.4' -9.7 12.9 61 Miscellaneous -198.7' -173.7' -245.5' -127.4' -418.9' -501.0' -353.3' -232.2' -390.1' 27.3' -All A -87.0 Floats not included in assets (-) 62 Federal government checkable deposits -6.0 .5 -2.7 2.6 -7.4 18.7 16.3 3.0 -2.1 -29.8 10.1 18.5 63 Other checkable deposits -3.8 -4.0 -3.9 -3.1 -.8 1.0 1.4 1.9 2.4 3.8 3.9 5.1 64 Trade credit 17.4 -25.4 -29.2 -51.3 42.9 -71.8' -36.5' -51.9' 24.3' 2.0' 32.3 -10.7 65 Total identified to sectors as assets 2,842.5r 3,046.2r 3,360.7r 4,392.3r 4,740.8r 4,377.5r 4,485.3r 4,749.6r 3,903. lr 3,942.5r 4,099.7 4,741.5 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 Domestic Nonfinancial Statistics • February 2002 1.59 SUMMARY OF CREDIT MARKET DEBT OUTSTANDING1 Billions of dollars, end of period 2000 2001 Qi Q2 Q3 Q4 Ql' Q2' Q3 Nonfinancial sectors 1 Total credit market debt owed by domestic nonfinancial sectors 14,441.1r 15,245.1' 16,293.9' 17,428.5' 17,658.2' 17,839.9' 18,038.3' 18,320.9' 18,563.5 18,746.8 19,054.8 By sector and instrument 2 Federal government 3,781.8 3,804.9 3,752.2 3,681.0 3,653.5 3,464.0 3,410.2 3,385.2 3,408.8 3,251.4 3,320.1 Treasury securities 3,755.1 3,778.3 3,723.7 3,652.8 3.625.8 3,435.7 3,382.6 3,357.8 3,382.1 3,224.4 3,293.1 4 Budget agency securities and mortgages 26.6 26.5 28.5 28.3 27.8 28.2 27.6 27.3 26.8 27.0 27.0 5 Nonfederal 10,659.4' 11,440.2' 12,541.7' 13,747.4' 14.004.7' 14,376.0' 14,628.1' 14,935.7' 15,154.7 15.495.3 15,734.8 Bv instrument 6 Commercial paper 156.4 168.6 193.0 230.3 260.8 296.8 307.0 278.4 253.2 223.3 201.3 7 Municipal securities and loans 1,296.0 1,367.5 1,464.3 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 1,597.5 1,629.8 1.635.3 8 Corporate bonds 1,460.4 1.610.9 1.829.6 2,059.5 2,106.0 2,144.5 2,186.7' 2.230.6' 2,330.8 2,437.8 2,484.7 9 Bank loans n.e.c 934.0' 1.040.4' 1,148.5' 1,231.2' 1,258.7' 1,306.9' 1,311.3' 1,334.2' 1,323.9 1,292.9 1,282.9 10 Other loans and advances 765.6r 825.1' 907.2' 964.5' 1,008.3' 1,037.2' 1.039.5' 1,077.1' 1,083.4 1,110.6 1,116.0 11 Mortgages 4.832.9' 5.156.2' 5.652.6' 6,283.3' 6.394.6' 6,562.6' 6,713.9' 6.854.5' 6,980.6 7,192.8 7,391.9 12 Home 3,720.0' 3,978.3' 4,368.2' 4,803.4' 4.879.4' 5,005.1' 5,124.3' 5.225.9' 5.319.5 5,477.9 5,623.1 13 Multifamily residential 278.2 285.7' 309.5' 350.2' 357.5' 369.5' 376.7' 387.2' 397.0 410.9 425.3 14 Commercial 747.8 802.2' 878.3' 1.027.3' 1,053.4' 1,081.2' 1,104.5' 1,132.5' 1,154.2 1.190.9 1,228.9 15 Farm 86.9 90.0 96.6 102.3 104.2 106.8 108.3 108.8' 109.9 113.1 114.6 16 Consumer credit 1,214.1' 1.271.6' 1,346.6' 1.446.1' 1,437.0' 1,476.5' 1,519.6' 1,593.1' 1,585.3 1,608.1 1,622.8 B\ borrowing sector 17 Households 5,223.9' 5,556.9' 6,024.1' 6,541.5' 6,608.3' 6,772.9' 6,938.9' 7,115.5' 7.186.3 7,362.9 7,531.7 18 Nonfinancial business 4,372.0' 4,763.8' 5.317.8' 5,953.8' 6,139.1' 6,337.4' 6,426.2' 6,540.9' 6,660.9 6,794.6 6,862.4 19 Corporate 3.093.0' 3.383.9' 3.790.2' 4.265.3' 4,415.3' 4.562.2' 4,618.0' 4,695.9' 4,785.7 4,881.5 4,922.8 20 Nonfarm noncorporate 1,129.3' 1,224.0' 1,363.7' 1.519.1' 1.553.1' 1,599.1' 1,630.3' 1,664.8' 1,695.5 1,727.9 1,753.9 21 Farm 149.7 155.9 163.9 169.4 170.7 176.2 177.9 180.2' 179.7 185.2 185.8 22 State and local government 1.063.4 1,119.5 1.199.8 1.252.1 1,257.3 1.265.7 1,263.1 1,279.3 1,307.5 1,337.8 1,340.6 23 Foreign credit market debt held in United States 542.2 608.0 651.5 679.6 707.9' 702.5' 731.0' 746.7' 743.4 727.8 698.5 24 Commercial paper 67.5 65.1 72.9 89.2 101.6 101.2 109.8 120.9 112.8 110.1 106.3 25 366.3 427.7 462.6 479.4 491.3' 484.5' 502.4' 504.6' 508.9 504.9 479.6 26 Bank loans n.e.c 43.7 52.1 58.9 59.4 63.3 64.7 67.7 70.7 73.9 66.2 67.3 27 Other loans and advances 64.7 63.0 57.2 51.7 51.7 52.1 51.2 50.5 47.7 46.6 45.3 28 Total credit market debt owed by nonfinancial sectors, domestic and foreign 14,983.3' 15,853.1' 16,945.4' 18,108.1' 18,366.1' 18,542.5' 18,769.3r 19,067.6' 19,306.9 19,474.6 19,753.3 Financial sectors 29 Total credit market debt owed by financial sectors 4,828.8' 5,458.0r 6,545.2r 7,629.6' 7,769.2' 7,993.5' 8,190.8' 8,457.1' 8,657.3 8,856.2 9,121.0 By instrument 30 Federal government-related 2.608.2 2.821.1 3,292.0 3,884.0 3.940.1 4,035.3 4,164.0 4.317.4 4,422.9 4,591.6 4,796.8 31 Government-sponsored enterprise securities . . . 896.9 995.3 1,273.6 1,591.7 1,618.0 1,680.2 1,749.7 1,825.8 1,888.7 1,955.8 2,037.8 32 Mortgage pool securities 1.711.3 1,825.8 2.018.4 2,292.2 2,322.1 2.355.2 2,414.3 2,491.6 2,534.2 2.635.8 2,759.0 33 Loans from U.S. government .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 .0 34 Private 2,220.6' 2.636.9' 3.253.2' 3,745.6' 3,829.1' 3,958.1' 4,026.7' 4.139.7' 4,234.4 4,264.6 4.324.3 35 Open market paper 579.1 745.7 906.7 1,082.9 1,115.7 1.135.2 1,151.6 1.210.7 1,180.8 1.144.5 1,110.2 36 Corporate bonds 1,382.7' 1.568.6' 1.878.7' 2.096.9' 2.138.8' 2.212.0' 2,269.7' 2.314.8' 2,424.3 2,483.9 2,563.8 37 Bank loans n.e.c 64.0 77.3' 107.5' 93.2' 91.8' 93.1' 92.8' 93.0' 97.3 100.4 100.0 38 Other loans and advances 162.9 198.5 288.7 395.8 404.4 436.9 430.2 438.3 450.9 450.7 467.2 39 Mortgages 31.9 46.8 71.6 76.7 78.5 81.0 82.5 82.9 81.1 85.1 83.0 By borrowing sector 40 Commercial banks 113.6 140.6 188.6 230.0 242.2 265.4 265.2 266.7 273.8 274.7 283.0 41 Bank holding companies 150.0 168.6 193.5 219.3 221.4 229.3 236.9 242.5 266.5 269.0 273.8 42 Savings institutions 140.5 160.3 212.4 260.4 266.9 280.7 276.0 287.7 295.1 294.4 303.9 43 Credit unions .4 .6 1.1 3.4 2.6 2.9 3.1 3.4 3.2 3.5 3.8 44 Life insurance companies 1.6 1.8 2.5 3.2 3.0 2.7 2.7 2.5 1.9 1.9 2.8 45 Government-sponsored enterprises 896.9 995.3 1.273.6 1,591.7 1,618.0 1,680.2 1,749.7 1,825.8 1,888.7 1,955.8 2,037.8 46 Federally related mortgage pools 1,711.3 1.825.8 2.018.4 2,292.2 2.322.1 2,355.2 2,414.3 2,491.6 2,534.2 2,635.8 2,759.0 4/ Issuers of asset-backed securities (ABSs) 863.3 1.076.6 1,398.0 1,621.4 1.655.8 1,697.0 1,742.3 1.829.6 1,893.7 1,942.4 2,020.2 48 Brokers and dealers 27.3 35.3 42.5 25.3 36.4 36.2 42.6 40.9 35.0 43.9 47.0 49 Finance companies 534.5' 568.3' 625.5' 695.7' 708.4' 740.8' 761.8' 776.9' 756.2 769.0 771.3 50 Mortgage companies 20.6 16.0 17.7 17.8 17.1 17.8 17.7 17.9 18.1 18.2 18.5 51 Real estate investment trusts (REITs) 56.5 96.1 158.8 165.1 167.9 170.4 169.8 167.8 166.2 168.9 166.3 52 Funding corporations 312.4' 372.6' 412.6' 504.0' 507.4' 515.0' 508.7' 503.7' 524.7 478.6 433.6 All sectors 53 Total credit market debt, domestic and foreign . 19,812.1' 21,311.1' 23,490.6' 25,737.7' 26,135.3' 26,535.9' 26,960.1' 27,524.7' 27,964.2 28,330.8 28,874.3 54 Open market paper 803.0 979.4 1,172.6 1,402.4 1,478.1 1.533.3 1,568.3 1,610.0 1,546.8 1,477.9 1,417.8 55 U.S. government securities 6,389.9 6,626.0 7,044.3 7,565.0 7,593.6 7,499.3 7,574.2 7,702.6 7,831.7 7,843.0 8,116.8 56 Municipal securities 1,296.0 1,367.5 1,464.3 1,532.5 1,539.2 1,551.6 1,550.3 1,567.8 1,597.5 1,629.8 1,635.3 57 Corporate and foreign bonds 3,209.4' 3,607.2' 4.170.8' 4,635.8' 4,736.1' 4,841.0' 4,958.7' 5,050.0' 5,264.0 5,426.6 5,528.1 58 Bank loans n.e.c 1,041.7 1,169.8 1.314.9 1.383.8 1,413.7 1,464.6 1,471.7 1,497.9 1,495.1 1,459.5 1,450.2 59 Other loans and advances 993.2' 1.086.6' 1,253.0' 1,412.0' 1,464.4' 1,526.2' 1.520.9' 1,565.9' 1,582.0 1,607.9 1,628.5 60 Mortgages 4,864.8' 5,203.0' 5.724.2' 6,360.0' 6,473.1' 6,643.5' 6,796.4' 6,937.4' 7,061.7 7,277.9 7,474.9 61 Consumer credit 1,214.1' 1,271.6' 1,346.6' 1,446.1' 1,437.0' 1,476.5' 1,519.6' 1,593.1' 1,585.3 1,608.1 1,622.8 1. Data in this table appear in the Board's Z. 1 (780) quarterly statistical release, tables L.2 through L.4. For ordering address, see inside front cover. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Flow of Funds A41 1.60 SUMMARY OF FINANCIAL ASSETS AND LIABILITIES1 Billions of dollars except as noted, end of period 2000 2001 TTrraannssaaccttiioonn ccaatteeggoorryy oorr sseeccttoorr Q1 Q2 Q3 Q4 Qi Q2' Q3 CREDIT MARKET DEBT OUTSTANDING2 1 19,812.1r 21,311.1r 23,490.6r 25,737.7r 26,135.3r 26,535.9r 26,960.1r 27,524.7r 27,964.2r 28,330.8 28,874.3 2 Domestic nonfederal nonfinancial sectors 3,011.5' 2,946.5' 3,017.7' 3,284.1' 3,205.6' 3,209.3' 3,144.7' 3,094.4' 3,021.4' 2,964.3 2,914.0 Household 2,086.8r 2,031.3' 1,967.7' 2,184.5' 2,114.4' 2,089.7' 2,040.3' 1,977.4' 1,928.0' 1,869.6 1,832.7 4 Nonfinancial corporate business 270.2 257.5 241.5 238.7 230.8 246.1' 239.0' 249.1' 226.3' 232.1 231.1 5 Nonfarm noncorporate business 49.7 52.7 69.1 78.0 77.5 77.6 76.6 75.9 74.7 73.4 71.9 6 State and local governments 604.8 605.0 739.4 782.8 782.9 795.8 788.7 792.0 792.4 789.1 778.3 7 Federal government 200.2 205.4 219.1 258.0 259.6 261.6 262.7 265.4 266.6 267.6 267.8 8 Rest of the world 1,926.6 2,257.3 2,539.8 2,676.2 2,760.7 2,809.9 2,861.7 3,004.6 3,113.0' 3,200.4 3,293.2 9 Financial sectors 14,673.8' 15,901.8' 17,714.0' 19,519.4' 19,909.4' 20,255.2' 20,691.0' 21,160.3' 21,563.2' 21,898.6 22,399.3 10 Monetary authority 393.1 431.4 452.5 478.1 501.9 505.1 511.5 511.8 523.9 535.1 534.1 11 Commercial banking 3,707.7 4,031.9 4,335.7 4,643.9 4,725.0 4,847.4 4,931.0 5,002.3 5,015.7 5,044.4 5,096.5 12 U.S.-chartered banks 3,175.8 3,450.7 3,761.2 4,078.9 4,171.3 4,295.4 4,368.2 4,418.7 4,424.4 4,463.2 4,508.8 13 Foreign banking offices in United States 475.8 516.1 504.2 484.1 482.0 478.1 487.5 508.1 515.0 504.2 509.9 14 Bank holding companies 22.0 27.4 26.5 32.7 22.1 23.0 21.3 20.5 22.3 21.6 21.3 15 Banks in U.S.-afliliated areas 34.1 37.8 43.8 48.3 49.6 51.0 54.0 55.0 54.1 55.5 56.5 16 Savings institutions 933.2 928.5 964.6 1,033.2 1,045.8 1,062.5 1,082.2 1,089.7 1,101.6 1,116.4 1,119.0 17 Credit unions 288.5 305.3 324.2 351.7 359.0 370.1 376.0 382.2 386.5' 391.8 407.8 18 Bank personal trusts and estates 232.0 207.0 194.1 222.0 226.7 230.2 234.6 239.1 241.8 245.1 247.3 19 Life insurance companies 1,657.0 1,751.1 1,828.0 1,886.0 1,902.2 1,914.1 1,935.1 1,943.9 1,967.2 1,996.9 2,040.0 20 Other insurance companies 491.2 515.3 521.1 518.2 515.4 510.8 512.4 509.4 510.0 510.0 512.3 21 Private pension funds 627.0 674.6 731.0 775.9 787.6 793.8 810.0 817.2 823.7 822.0 821.7 22 State and local government retirement funds 565.4 632.5 704.6 751.4 767.2 775.1 784.5 806.0' 788.3' 801.7 806.3 23 Money market mutual funds 634.3 721.9 965.9 1,147.8 1,217.1 1,159.4 1,212.5 1,296.7 1,403.8 1,414.6 1,498.0 24 Mutual funds 820.2 901.1 1,025.9 1,073.1 1,053.7 1,073.9 1,088.5 1,099.9 1,113.8 1,160.1 1,193.0 25 Closed-end funds 100.8 98.3 103.7 111.1 109.0 106.9 104.8 102.7 100.6 98.5 96.4 26 Government-sponsored enterprises 832.8 939.4 1,253.9 1,545.6 1,584.0 1,649.2 1,704.3 1,793.7 1,864.7' 1,941.1 2,009.5 27 Federally related mortgage pools 1,711.3 1,825.8 2,018.4 2,292.2 2,322.1 2,355.2 2,414.3 2,491.6 2,534.2 2,635.8 2,759.0 28 Asset-backed securities (ABSs) issuers 773.9 937.7 1,219.4 1,424.6 1,453.8 1,486.3 1,522.9 1,602.9 1,660.5 1,703.7 1,774.7 29 Finance companies 545.1' 568.2' 645.5' 742.5' 776.6' 812.3' 830.0' 850.5' 848.0' 878.5 859.4 30 Mortgage companies 41.2 32.1 35.3 35.6 34.1 35.5 35.4 35.9 36.2 36.5 36.9 31 Real estate investment trusts (REITs) 30.4 50.6 45.5 42.9 38.8 38.2 37.3 36.6 37.6 37.9 39.8 32 Brokers and dealers 167.7 182.6 189.4 154.7 194.8' 188.2' 243.3 223.6 312.3' 288.4 369.9 33 Funding corporations 121.0 166.7 155.3 288.8 294.5 341.0' 320.4' 324.7' 292.7' 240.1 177.8 RELATION OF LIABILITIES TO FINANCIAL ASSETS 34 Total credit market debt 19,812.1r 2i,3ii.r 23,490.6r 25,737.7r 26,135.3r 26,535.9r 26,960. lr 27,524.7r 27,964.2r 28,330.8 28,874.3 Other liabilities 35 Official foreign exchange 53.7 48.9 60.1 50.1 46.6' 46.0' 44.9 46.1' 42.8' 43.4 49.0 .36 Special drawing rights certificates 9.7 9.2 9.2 6.2 6.2 4.2 3.2 2.2 2.2 2.2 2.2 37 Treasury currency 18.9 19.3 19.9 20.9 21.4 22.1 23.2 23.2 22.9 23.2 23.2 38 Foreign deposits 521.7 618.5 642.3 703.6 781.9 782.8 772.6 824.5 883.4 846.8 850.6 39 Net interbank liabilities 240.8 219.4 189.0 204.5 169.7 210.6 173.2 188.0 155.1' 163.1 176.8 40 Checkable deposits and currency 1,244.8 1,286.1 1,333.4 1,484.8 1,392.9 1,409.7 1,385.7 1,413.3 1,385.2 1,416.8 1,453.0 41 Small time and savings deposits 2,377.0 2,474.1 2,626.5 2,671.2 2,728.0 2,738.8 2,790.9 2,861.9 2,965.3 2,992.3 3,047.1 42 Large time deposits 590.9 713.4 805.5 936.1 966.5 987.4 1,025.9 1,054.5 1,078.0 1,087.1 1,090.4 43 Money market fund shares 886.7 1,042.5 1,329.7 1,578.8 1,666.0 1,627.1 1,697.8 1,812.1 1,994.7 2,014.8 2,116.1 44 Security repurchase agreements 701.5 822.4 913.7 1,083.4 1,149.4' 1,185.2' 1,238.6' 1,194.1' 1,199.7' 1,240.5 1,287.8 45 Mutual fund shares 2,342.4 2,989.4 3,610.5 4,553.4 4,863.3 4,759.6 4,814.4 4,457.2 3,999.8 4,275.3 3,705.2 46 Security credit 358.1 469.1 572.3 676.6 801.1' 780.3' 805.8' 822.7' 785.4' 781.5 904.6 47 Life insurance reserves 610.6 665.0 718.3 783.9 801.0 806.5 818.7 819.1 823.0 840.3 841.5 48 Pension fund reserves 6,325.1 7,323.4 8,193.7 9,041.7 9,237.9 9,166.7 9,307.9 9,054.8 8,588.9' 8,849.7 8,281.0 49 Trade payables 1,827.6 1,967.3 2,076.5 2,298.8 2,321.7 2,371.6' 2,418.2' 2,464.9' 2,436.3' 2,406.9 2,412.2 50 Taxes payable 128.8 151.1 172.4 194.7 210.1 211.4' 214.7' 216.4 224.8' 224.0 254.9 51 Investment in bank personal trusts 871.3 942.5 1,001.0 1,130.4 1,158.0 1,114.4 1,106.7 1,019.4 929.1 964.4 859.6 52 Miscellaneous 6,387.1' 6,730.7' 7,692.9' 8,269.8' 8,464.3' 8,731.9' 9,221.0' 9,104.9' 9,536.4' 9,763.7 10,222.5 53 Total liabilities 4S308.7r 49,803.3r 55,457.6r 61,426.6r 62,921.3r 63,492.5r 64,823.6r 64,903.9r 65,017.3r 66,266.6 66,452.1 Financial assets not included in liabilities (+) 54 Gold and special drawing rights 21.4 21.1 21.6 21.4 21.4 21.5 21.4 21.6' 21.4' 21.5 22.0 55 Corporate equities 10,281.6' 13,301.7' 15,577.3' 19,581.2' 20,276.3' 19,395.9' 19,249.0' 17,566.4' 15,311.6' 16,239.1 13,625.2 56 Household equity in noncorporate business 3,786.6' 4,051.0' 4,394.1' 4,623.6' 4,652.1' 4,745.9' 4,782.7' 4,850.2' 4,882.4' 4,893.8 4,897.1 Liabilities not identified as assets (-) 57 Treasury currency -6.1 -6.3 -6.4 -7.1 -7.6 -7.9 -7.6 -8.5 -9.4 -9.5 -9.7 58 Foreign deposits 434.9' 535.0' 542.8' 588.9' 654.7' 634.2' 609.1' 659.3' 704.6' 674.3 680.5 59 Net interbank transactions -10.6 -32.2 -27.0 -25.5 -13.9 -11.6 -17.6 -4.3 1.7 5.5 6.3 60 Security repurchase agreements 109.8 172.9 233.5 263.6 410.5' 423.0' 446.0 374.6' 353.7' 396.2 394.1 61 Taxes payable 81.9 104.2 122.9 122.7 118.7' 134.5' 124.4 128.4' 113.3' 133.2 152.1 62 Miscellaneous -1,226.5' -1,548.9' -2,323.1' -2,740.5' -2,908.3' -2,939.4' -2,727.8' -3,224.6' -3,066.2' -3,040.8 -2,760.7 Floats not included in assets (-) 63 Federal government checkable deposits -1.6 -8.1 -3.9 -9.9 -9.2' -5.6' -7.8 -2.3' -22.3' -40.1 -38.4 64 Other checkable deposits 30.1 26.2 23.1 22.3 18.7 22.5 15.5 24.0 21.1 25.5 19.2 65 Trade credit 165.7 126.8 76.6 120.9 50.2' 16.5' 6.0' 91.6' 38.4' 21.8 35.7 66 Totals identified to sectors as assets 59,820.7r 67,807.3r 76,812.0r 87,317.3r 89,557.3r 89,389.6r 90,436.5r 89,303.8r 87,097.8r 89,254.8 86,517.1 1. Data in this table also appear in the Board's Z.l (780) quarterly statistica lrelease, 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 • February 2002 2.10 NONFINANCIAL BUSINESS ACTIVITY Selected Measures Monthly data seasonally adjusted, and indexes 1992=100, except as noted 2001 MMeeaassuurree 11999988 11999999 22000000 Mar. Apr. May June July Aug. Sept.' Oct.' Nov.P 1 Industrial production1 134.5 139.4 145.7 142.9 142.0 141.6 140.3 140.4 140.0r 138.8 137.6 137.1 Market groups 2 Products, total 126.8 129.6 133.5 132.1 131.0 130.9 130.0 130.3 129.4' 128.1 126.7 126.5 3 Final, total 128.9 131.8 135.8 135.1 134.0 133.9 132.9 133.2 132.0' 130.4 129.1 129.2 4 Consumer goods 118.3 119.9 121.9 121.8 121.3 121.4 121.1 122.2 121.4' 120.6 119.6 120.1 5 Equipment 148.1 153.5 161.8 159.6 157.3 156.5 154.1 152.7 150.5' 147.3 145.1 144.1 6 Intermediate 120.2 123.2 126.4 123.4 122.2 122.2 121.4 121.4 121.6' 120.9 119.5 118.7 7 Materials 146.9 155.6 166.4 160.9 160.3 159.4 157.4 157.2 157.6' 156.8 155.7 154.8 Industry groups 8 Manufacturing 138.8 144.7 151.6 147.9 146.7 146.4 145.0 145.2 144.5' 143.2 142.0 141.7 9 Capacity utilization, manufacturing (percent)2 . . 81.4 80.6 80.7 76.7 76.0 75.8 75.0 75.1 74.6 73.9 73.2 73.0 10 Construction contracts3 122.7r 135.2 142.3' 141.0 144.0 149.0' 151.0 143.0 143.0' 152.0 148.0 144.0 11 Nonagricultural employment, total4 115.9 118.6 121.0 122.2 122.0 122.0 122.0 122.0 121.9 121.8 121.3 121.0 12 Goods-producing, total 109.4 109.7 110.5 110.2 109.4 109.0 108.4 108.1 107.5 107.1 106.5 105.8 13 Manufacturing, total 103.9 102.4 101.8 100.1 99.5 98.7 98.1 97.7 96.8 96.4 95.7 94.8 14 Manufacturing, production workers 105.4 103.7 102.9 99.7 99.0 98.2 97.3 96.8 95.9 95.3 94.6 93.6 15 Service-producing 117.7 121.0 123.9 125.4 125.4 125.6 125.6 125.7 125.9 125.8 125.4 125.2 16 Personal income, total 137.8 144.3 154.3 161.0 161.3 161.6 162.1 162.7 162.8 162.7 162.5 162.4 17 Wages and salary disbursements 140.6 149.9 162.2 170.1 170.8 170.7 171.5 171.8 171.8 171.7 171.3 171.3 18 Manufacturing 129.7 134.0 142.3 146.3 146.8 145.4 144.9 144.9 144.1 143.4 142.0 140.8 19 Disposable personal income5 133.7 139.2 147.9 154.1 154.5 154.8 155.2 157.9' 161.0 159.1 156.3 156.2 20 Retail sales5 142.8 155.1 167.0 169.6 172.2 172.4 172.3 172.6 172.9 169.2 181.0 173.6 Prices6 21 Consumer (1982-84-100) 163.0 166.6 172.2 176.2 176.9 177.7 178.0 177.5 177.5 178.3 177.7 177.4 22 Producer finished goods (1982=100) 130.7 133.0 138.0 140.9 141.8 142.7 142.2 140.5' 141.1 141.7 139.6 138.4 1. Data in this table appear in the Board's G.17 (419) monthly statistical release. The data 3. Index of dollar value of total construction contracts, including residential, nonresidenare also available on the Board's web site, http://www.federalreserve.gov/releases/gl7. The tial, and heavy engineering, from McGraw-Hill Information Systems Company, F.W. Dodge latest historical revision of the industrial production index and the capacity utilization rates Division. was released in November 2001. The recent annual revision will be described in an article in 4. Based on data from the U.S. Department of Labor, Employment and Earnings. Series an upcoming 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 Apr. May June July Aug. Sept.' Oct.' Nov. HOUSEHOLD SURVEY DATA1 1 Civilian labor force2 137,673 139,368 140,863 141,757 141,272 141,354 141,774 141,350 142,190 142,303 114422,,224444 Employment 2 Nonagricultural industries3 128,085 130,207 131,903 132,162 131,910 131,937 132,334 131,276 131,961 131,362 130,975 3 Agriculture 3,378 3,281 3,305 3,192 3,193 2,995 3,045 3,117 3,220 3,200 3,109 Unemployment 4 Number 6,210 5,880 5,655 6,402 6,169 6,422 6,395 6,957 7,009 7,741 8,160 5 Rate (percent of civilian labor force) 4.5 4.2 4.0 4.5 4.4 4.5 4.5 4.9 4.9 5.4 5.7 ESTABLISHMENT SURVEY DATA 6 Nonagricultural payroll employment4 125,865 128,786 131,417 132,489 132,530 132,431 132,449 132,395 132,230 131,762 131,431 7 Manufacturing 18,805 18,543 18,437 18,009 17,879 17,757 17,688 17,533 17,448 17,324 17,161 8 Mining 590 535 538 560 564 565 567 569 569 569 567 9 Contract construction 6,020 6,404 6,687 6,852 6,881 6,864 6,867 6,861 6,871 6,854 6,852 10 Transportation and public utilities 6,611 6,826 6,993 7,119 7,130 7,118 7,108 7,082 7,070 7,017 6,959 11 Trade 29,095 29,712 30,191 30,583 30,584 30,583 30,623 30,593 30,524 30,388 30,349 12 Finance 7,389 7,569 7,618 7,626 7,644 7,631 7,618 7,623 7,633 7.627 7,636 13 Service 37,533 39,027 40,384 40,993 41,078 41,085 41,046 41,129 41,134 40,983 40,913 14 Government 19,823 20,170 20,570 20,747 20,770 20,828 20,932 21,005 20,981 21,000 20,994 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 Ql Q2 Q3' Q4 Ql Q2 Q3 Q4 Ql Q2 Q3r Output (1992=100) Capacity (percent of 1992 output) Capacity utilization rate (percent)2 1 Total industry 145.7 143.5 141.3 139.7 180.6 181.8 182.6 183.2 80.7 78.9 77.4 76.3 2 Manufacturing 151.1 148.4 146.0 144.3 191.0 192.3 193.2 193.6 79.1 77.2 75.6 74.5 3 Primary processing3 177.2 172.0 168.9 167.2 218.6 221.4 223.0 223.8 81.1 77.7 75.8 74.7 4 Advanced processing4 136.7 135.3 133.3 131.6 175.6 176.2 176.6 176.9 77.9 76.8 75.5 74.4 Durable goods 189.7 185.0 181.9 178.4 241.3 244.4 246.3 247.5 78.6 75.7 73.8 72.1 6 Lumber and products 114.1 110.2 113.2 115.7 147.6 148.2 148.5 148.8 77.3 74.4 76.2 77.7 7 Primary metals 126.5 120.8 120.5 117.6 151.2 151.0 150.8 150.6 83.6 80.0 79.9 78.1 8 Iron and steel 119.6 113.7 117.3 115.9 148.4 147.9 147.4 146.8 80.6 76.9 79.6 78.9 9 Nonferrous 134.9 129.5 124.6 120.0 155.0 155.1 155.3 155.6 87.0 83.5 80.2 77.1 10 Industrial machinery and equipment 229.1 226.9 217.0 208.9 292.2 295.3 297.3 298.8 78.4 76.8 73.0 69.9 11 Electrical machinery 566.8 544.2 509.2 485.8 684.9 716.8 735.6 745.4 82.8 75.9 69.2 65.2 12 Motor vehicles and parts 165.7 155.2 166.8 169.5 217.2 218.7 220.1 221.5 76.3 71.0 75.8 76.5 1.3 Aerospace and miscellaneous transportation equipment 100.1 100.2 99.0 95.9 135.4 135.4 135.3 135.2 74.0 74.0 73.2 71.0 14 Nondurable goods 114.2 113.2 111.5 111.1 143.1 143.1 143.0 142.9 79.8 79.1 77.9 77.7 15 Textile mill products 92.4 91.4 88.0 85.4 119.4 118.4 117.4 116.4 77.4 77.2 74.9 73.4 16 Paper and products 112.6 109.2 108.9 108.4 138.2 138.5 138.7 138.8 81.5 78.9 78.5 78.1 17 Chemicals and products 122.7 121.6 119.6 121.2 157.9 158.1 158.3 158.5 77.7 76.9 75.6 76.5 18 Plastics materials 115.7 121.0 116.4 117.4 151.5 152.0 152.5 153.0 76.4 79.6 76.3 76.7 19 Petroleum products 115.1 114.8 115.5 113.2 121.9 122.0 122.2 122.4 94.5 94.1 94.5 92.5 ?0 Mining 101.1 102.0 102.9 101.8 111.9 111.9 112.0 112.2 90.3 91.1 91.8 90.7 ?l Utilities 124.6 123.5 120.0 119.5 133.1 134.6 136.2 138.1 93.6 91.8 88.1 86.5 22 Electric 126.2 125.6 123.6 122.6 131.3 133.1 135.1 137.4 96.1 94.4 91.5 89.2 1973 1975 Previous cycle5 Latest cycle6 2000 2001 High Low High Low High Low Nov. June July Aug/ Sept/ Oct/ NOV.p Capacity utilization rate (percent)2 1 Total industry 89.2 72.6 87.3 71.1 85.4 78.1 80.7 76.7 76.7 76.4 75.7 75.0 74.7 2 Manufacturing 88.5 70.5 86.9 69.0 85.7 76.6 79.2 75.0 75.1 74.6 73.9 73.2 73.0 3 Primary processing3 91.8 67.3 88.6 65.7 88.3 76.7 81.0 74.9 74.9 74.8 74.5 73.8 73.3 4 Advanced processing4 86.5 72.5 86.3 71.0 84.2 76.6 78.0 75.0 75.1 74.5 73.5 72.8 72.8 5 Durable goods 89.2 68.9 87.7 63.9 84.6 73.1 78.6 73.0 72.8 72.3 71.2 70.0 69.8 6 Lumber and products 88.7 61.2 87.9 60.8 93.6 75.5 77.5 76.8 76.6 78.1 78.5 76.3 76.6 7 Primary metals 100.2 65.9 94.2 45.1 92.7 73.7 83.2 79.3 79.3 78.0 76.9 75.8 73.6 8 Iron and steel 105.8 66.6 95.8 37.0 95.2 71.8 80.4 79.9 80.8 78.8 77.2 76.4 74.0 9 Nonferrous 90.8 59.8 91.1 60.1 89.3 74.2 86.2 78.5 77.7 77.1 76.6 75.3 73.0 10 Industrial machinery and equipment 96.0 74.3 93.2 64.0 85.4 72.3 78.3 71.8 70.5 70.6 68.7 67.6 67.2 11 Electrical machinery 89.2 64.7 89.4 71.6 84.0 75.0 82.6 67.3 65.4 65.1 65.0 64.6 63.8 12 Motor vehicles and parts 93.4 51.3 95.0 45.5 89.1 55.9 75.9 76.0 79.0 76.7 74.0 70.7 75.1 13 Aerospace and miscellaneous transportation equipment. . . 78.4 67.6 81.9 66.6 87.3 79.2 74.4 72.7 71.8 70.8 70.3 69.5 67.5 14 Nondurable goods 87.8 71.7 87.5 76.4 87.3 80.7 80.0 77.7 78.0 77.7 77.5 77.4 77.2 15 Textile mill products 91.4 60.0 91.2 72.3 90.4 77.7 77.3 74.1 72.2 73.7 74.3 72.9 73.4 16 Paper and products 97.1 69.2 96.1 80.6 93.5 85.0 81.7 77.2 77.9 77.6 78.8 77.7 77.0 17 Chemicals and products 87.6 69.7 84.6 69.9 86.2 79.3 78.2 75.5 76.5 76.5 76.5 76.7 77.0 18 Plastics materials 102.0 50.6 90.9 63.4 97.0 74.8 77.5 76.3 76.9 77.6 75.8 75.6 75.0 19 Petroleum products 96.7 81.1 90.0 66.8 88.5 85.1 95.1 94.5 93.6 92.2 91.6 93.6 91.7 ?0 Mining 94.3 88.2 96.0 80.3 88.0 87.0 90.4 91.4 90.9 90.4 90.9 89.0 89.2 ?1 Utilities 96.2 82.9 89.1 75.9 92.6 83.4 93.3 87.0 86.0 87.7 85.9 85.2 83.1 22 Electric 99.0 82.7 88.2 78.9 95.0 87.1 96.1 90.4 88.5 90.6 88.4 88.6 86.9 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 November 2001. The recent annual revision will be described in an 4. Advanced processing includes foods, tobacco, apparel, furniture and fixtures, printing article in an upcoming issue of the Bulletin. For a description of the methods of estimating and publishing, chemical products such as drugs and toiletries, agricultural chemicals, leather industrial production and capacity utilization, see "Industrial Production and Capacity and products, machinery, transportation equipment, instruments, and miscellaneous manufac- Utilization: Historical Revision and Recent Developments," Federal Reserve Bulletin, vol. 83 turing. (February 1997), pp. 67-92, and the references cited therein. For details about the construc- 5. Monthly highs, 1978-80; monthly lows, 1982. tion of individual industrial production series, see "Industrial Production: 1989 Develop- 6. Monthly highs, 1988-89; monthly lows, 1990-91. ments and Historical Revision," Federal Reserve Bulletin, vol. 76 (April 1990), pp. 187-204. 2. Capacity utilization is calculated as the ratio of the Federal Reserve's seasonally adjusted index of industrial production to the corresponding index of capacity. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A44 Domestic Nonfinancial Statistics • February 2002 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1 Monthly data seasonally adjusted 1992 2000 2001 up p po ro r- - 2 a 0 v 0 g 0 . tion Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug.r Sept.' Oct.' NOV.P Index(1992= 100) MAJOR MARKETS 1 Total index 100.0 145.7 145.8 145.1 143.9 143.5 142.9 142.0 141.6 140.3 140.4 140.0 138.8 137.6 137.1 2 Products 60.5 133.5 133.8 133.6 132.7 132.2 132.1 131.0 130.9 130.0 130.3 129.4 128.1 126.7 126.5 3 Final products 46.3 135.8 136.3 136.3 135.2 134.7 135.1 134.0 133.9 132.9 133.2 132.0 130.4 129.1 129.2 4 Consumer goods, total 29.1 121.9 122.1 122.5 121.0 121.2 121.8 121.3 121.4 121.1 122.2 121.4 120.6 119.6 120.1 Durable consumer goods 6.1 161.2 154.7 153.2 147.3 149.1 152.9 152.2 154.2 153.2 157.0 154.1 152.0 146.9 151.8 6 Automotive products 2.6 157.0 148.2 145.3 138.5 141.8 149.8 149.6 152.8 152.3 161.1 155.6 152.5 145.7 155.0 7 Autos and trucks 1.7 169.8 157.6 150.2 142.2 147.8 159.6 160.1 165.7 163.4 178.3 169.1 163.9 154.5 169.5 8 Autos, consumer .9 104.4 96.0 89.3 93.4 93.3 97.0 96.0 97.9 97.2 97.5 90.6 92.7 86.9 94.6 9 Trucks, consumer .7 239.5 223.4 215.1 194.4 206.0 226.3 228.4 237.9 234.0 264.3 252.6 239.8 226.5 249.2 10 Auto parts and allied goods .9 137.2 133.7 138.2 133.3 132.8 134.7 133.5 132.5 135.1 133.9 134.5 134.7 132.2 132.2 11 Other 3.5 164.6 160.6 160.9 155.9 156.1 155.1 153.9 154.5 152.9 151.0 151.0 150.1 147.0 146.7 12 Appliances, televisions, and air conditioners 1.0 304.9 300.8 306.4 289.5 284.4 284.0 284.0 292.1 285.0 271.7 289.5 288.7 279.0 283.7 13 Carpeting and furniture .8 128.8 123.4 125.5 119.8 124.7 123.1 119.9 117.7 118.6 116.2 117.6 119.2 116.2 116.9 14 Miscellaneous home goods 1.6 125.0 122.5 120.5 119.5 118.3 117.7 117.4 117.7 116.2 117.7 112.7 110.5 109.4 107.5 15 Nondurable consumer goods 23.0 112.7 114.3 115.1 114.5 114.4 114.3 113.9 113.6 113.4 113.9 113.6 113.0 113.0 112.5 16 Foods and tobacco 10.3 109.4 109.3 110.3 109.4 109.5 109.3 108.9 108.6 108.9 109.3 108.7 108.1 108.1 108.0 17 Clothing 2.4 86.4 83.8 82.2 83.0 82.6 82.8 82.0 80.6 78.2 79.0 76.4 75.3 74.7 73.3 18 Chemical products 4.5 134.8 140.9 140.1 139.4 141.7 143.8 143.4 145.2 145.7 147.5 146.7 146.5 147.4 148.8 19 Paper products 2.9 106.3 107.5 107.9 109.2 107.3 106.9 107.4 106.7 106.6 106.0 105.7 105.7 104.2 103.9 20 Energy 2.9 117.0 121.9 125.8 124.0 122.1 119.8 118.7 116.9 115.8 116.0 117.8 117.2 117.4 114.2 21 Fuels .8 112.9 115.4 112.3 112.9 114.2 113.9 114.6 115.6 115.2 114.3 112.2 113.9 117.2 115.1 22 Residential utilities 2.1 118.7 125.1 133.2 130.0 126.2 122.8 120.7 117.2 115.8 116.5 120.5 118.6 117.2 113.3 23 Equipment 17.2 161.8 163.0 162.0 161.8 159.8 159.6 157.3 156.5 154.1 152.7 150.5 147.3 145.1 144.1 24 Business equipment 13.2 188.9 190.6 189.3 188.7 186.1 185.4 182.1 181.3 177.8 176.1 173.3 168.6 166.0 164.9 25 Information processing 5.4 290.8 302.1 303.4 304.1 297.5 294.1 288.4 286.8 279.6 275.2 271.9 265.9 264.3 262.6 26 Computer and office equipment 1.1 914.2 1,001.7 1,012.9 1,017.4 1,012.6 996.5 970.9 950.6 948.7 934.2 925.5 902.0 897.3 902.4 27 Industrial 4.0 138.3 138.1 135.9 137.2 132.4 132.6 129.1 129.0 125.2 123.1 122.2 119.9 118.9 116.1 28 Transit 2.5 143.4 138.5 134.0 131.0 131.6 135.6 133.8 134.5 133.1 133.8 128.7 124.6 119.3 120.0 29 Autos and trucks 1.2 170.1 155.5 145.9 140.0 142.5 151.1 148.0 152.5 150.5 157.1 149.6 143.6 136.2 145.4 30 Other 1.3 143.2 144.3 148.5 145.4 151.6 143.3 143.1 139.1 140.7 140.8 139.8 132.5 130.7 132.6 31 Defense and space equipment 3.3 74.4 74.8 75.2 75.5 74.1 74.5 74.4 73.5 73.4 73.6 73.5 73.8 74.1 74.4 32 Oil and gas well drilling .6 132.0 139.0 139.9 146.7 147.7 151.0 152.2 151.9 150.4 147.1 143.1 140.4 133.5 129.5 33 Manufactured homes .2 120.6 95.8 86.0 79.6 87.1 87.3 88.6 91.7 96.0 95.4 97.9 102.9 100.2 96.4 34 Intermediate products, total 14.2 126.4 126.2 125.3 125.0 124.4 123.4 122.2 122.2 121.4 121.4 121.6 120.9 119.5 118.7 35 Construction supplies 5.3 141.5 140.3 139.5 138.8 138.6 139.4 139.0 138.7 138.0 137.3 138.8 138.9 135.3 135.2 36 Business supplies 8.9 117.5 117.8 116.9 116.9 116.0 113.8 112.2 112.4 111.6 112.0 111.3 110.1 110.2 108.9 37 Materials 39.5 166.4 166.0 164.5 162.8 162.5 160.9 160.3 159.4 157.4 157.2 157.6 156.8 155.7 154.8 38 Durable goods materials 20.8 225.4 225.4 223.9 220.3 219.7 218.0 216.4 216.2 212.9 212.6 212.0 209.8 208.2 206.4 39 Durable consumer parts 4.0 167.2 160.0 157.6 149.0 154.6 155.0 155.1 159.6 157.7 160.2 160.8 155.7 152.8 155.1 40 Equipment parts 7.6 459.6 483.4 482.4 474.0 470.1 464.3 452.9 446.5 436.1 429.9 429.6 431.3 431.6 425.7 41 Other 9.2 134.7 130.8 129.8 130.3 128.2 127.2 127.9 127.5 126.2 126.4 125.4 123.9 122.7 120.8 42 Basic metal materials 3.1 127.7 122.7 123.5 121.4 118.1 114.5 117.6 116.7 115.5 115.7 113.6 112.4 111.3 107.9 43 Nondurable goods materials 8.9 113.0 109.6 107.1 108.4 107.9 104.9 104.7 103.0 102.2 102.7 104.0 104.1 103.8 103.4 44 Textile materials 1.1 106.3 98.0 95.0 99.3 95.8 95.3 95.0 90.9 90.8 87.6 90.1 89.3 89.4 89.5 45 Paper materials 1.8 115.6 113.3 109.7 112.2 112.1 106.0 110.2 108.3 104.8 107.7 109.5 110.0 111.5 110.1 46 Chemical materials 3.9 113.4 110.1 106.3 107.8 108.0 104.8 101.8 100.5 100.3 100.9 102.2 102.1 101.7 101.4 47 Other 2.1 112.8 111.1 112.7 110.5 109.9 108.7 110.6 109.4 109.3 109.7 109.8 110.3 108.5 108.4 48 Energy materials 9.7 104.6 106.0 105.8 104.3 104.6 104.5 104.9 103.8 103.1 102.3 103.0 103.5 102.4 102.5 49 Primary energy 6.3 98.9 99.5 99.5 99.4 98.9 99.1 99.5 99.0 99.5 98.5 98.4 99.2 97.6 98.3 50 Converted fuel materials 3.3 116.2 119.8 118.9 113.6 116.1 115.5 115.7 113.1 109.1 109.0 111.4 111.4 111.7 110.3 SPECIAL AGGREGATES 51 Total excluding autos and trucks 97.1 145.1 145.6 145.2 144.1 143.6 142.6 141.7 141.1 139.9 139.5 139.4 138.4 137.4 136.5 52 Total excluding motor vehicles and parts 95.1 144.2 144.9 144.6 144.0 143.1 142.0 141.0 140.2 139.0 138.7 138.5 137.6 136.6 135.6 53 Total excluding computer and office equipment 98.2 139.8 139.6 139.0 137.8 137.4 136.9 136.0 135.7 134.4 134.6 134.1 133.1 131.9 131.5 54 Consumer goods excluding autos and trucks . . 27.4 119.3 120.2 121.2 120.0 119.9 119.8 119.3 119.0 118.8 119.1 118.8 118.2 117.8 117.4 55 Consumer goods excluding energy 26.2 122.5 122.0 122.0 120.5 121.0 122.0 121.6 122.0 121.8 122.9 121.8 121.0 119.9 120.9 56 Business equipment excluding autos and trucks 12.0 191.2 195.1 194.9 195.0 191.8 189.8 186.4 184.9 181.3 178.4 176.2 171.8 169.8 167.3 57 Business equipment excluding computer and office equipment 12.1 159.6 159.5 158.0 157.4 155.1 154.7 152.1 151.7 148.5 147.2 144.7 140.8 138.5 137.4 58 Materials excluding energy 29.8 187.2 185.9 183.9 182.2 181.6 179.3 178.2 177.4 175.0 175.0 175.2 173.9 172.8 171.5 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Selected Measures A45 2.13 INDUSTRIAL PRODUCTION Indexes and Gross Value1—Continued Monthly data seasonally adjusted 1992 Group c S o I d C e ^ 2 p po ro r- - 2 a 0 v 0 g 0 . tion Feb. Mar. Apr. May June July Aug.r Sept.' Oct.r Nov. Index(1992=100) MAJOR INDUSTRIES 59 Total index 100.0 145.7 145.8 145.1 143.9 143.5 142.9 142.0 141.6 140.3 140.4 140.0 138.8 137.6 137.1 60 Manufacturing 85.4 151.6 151.2 150.1 148.9 148.4 147.9 146.7 146.4 145.0 145.2 144.5 143.2 142.0 141.7 61 Primary processing 26.5 178.2 177.1 174.8 172.9 172.4 170.7 170.1 169.4 167.3 167.4 167.3 166.8 165.5 164.6 62 Advanced processing 58.9 136.9 136.9 136.4 135.5 135.1 135.1 133.7 133.6 132.5 132.9 131.7 130.1 129.0 129.0 63 Durable goods 45.0 190.0 189.6 188.5 185.6 184.6 184.7 182.9 182.7 180.1 180.0 178.9 176.4 173.7 173.6 64 Lumber and products ' ' 24 2.0 118.8 114.4 112.1 109.3 109.5 111.8 111.8 113.7 114.2 114.0 116.2 116.9 113.7 114.1 65 Furniture and fixtures 25 1.4 146.3 144.9 146.4 143.1 144.4 142.5 141.8 140.4 138.3 138.4 138.7 136.2 134.8 132.5 66 Stone, clay, and glass products 32 2.1 133.9 131.8 130.4 132.5 132.4 132.9 133.1 133.0 130.0 130.0 130.8 130.9 129.7 130.1 67 Primary metals 33 3.1 131.9 125.8 125.8 123.9 121.0 117.5 121.2 120.8 119.5 119.5 117.5 115.8 114.1 110.6 68 Iron and steel 331,2 1.7 127.3 119.4 117.8 115.4 114.4 111.3 115.8 118.4 117.7 118.8 115.7 113.1 111.8 108.2 69 Raw steel 331PT .1 117.9 106.4 104.3 106.6 106.9 107.0 99.2 106.2 107.8 108.3 106.2 105.8 99.5 96.5 70 Nonferrous 333-6,9 1.4 137.7 133.6 135.5 134.3 128.9 125.1 127.8 124.0 122.0 120.8 119.9 119.3 117.2 113.8 71 Fabricated metal products . . 34 5.0 137.2 136.8 136.0 136.2 133.2 132.2 131.0 131.0 129.5 131.1 131.0 129.1 127.1 125.9 72 Industrial machinery and equipment 35 8.0 227.1 228.9 228.2 228.1 227.0 225.5 220.2 217.0 213.8 210.2 211.0 205.5 202.6 201.6 73 Computer and office equipment 357 1.8 1,070.0 1,165.3 1,167.3 1,163.4 1,153.5 1,137.1 1,112.9 1,095.1 1,095.4 1,074.6 1,064.8 1,037.6 1,033.2 1,038.9 74 Electrical machinery 36 7.3 536.6 566.3 569.5 555.4 543.6 533.6 518.8 511.4 497.6 485.9 485.5 486.1 485.0 480.4 75 Transportation equipment . . 37 9.5 137.1 131.8 128.8 123.1 126.4 131.0 130.5 133.2 131.9 134.6 131.6 128.5 124.6 128.0 76 Motor vehicles and parts . 371 4.9 177.6 164.8 158.6 146.9 154.9 163.7 163.2 169.7 167.7 174.6 169.9 164.2 157.3 167.3 77 Autos and light trucks . 371PT 2.6 164.6 152.9 145.2 138.8 143.5 154.2 154.4 159.5 157.2 170.2 160.9 156.6 147.4 161.6 78 Aerospace and miscellaneous transportation equipment 372-6,9 4.6 99.1 100.8 100.7 100.7 99.5 100.4 99.9 98.9 98.3 97.1 95.7 95.0 93.9 91.2 79 Instruments 38 5.4 118.6 119.0 118.8 119.7 118.4 117.7 117.2 116.8 114.5 115.0 113.9 112.8 112.2 111.5 80 Miscellaneous 39 1.3 124.9 123.5 123.6 122.7 120.2 119.9 120.4 119.0 119.8 120.7 116.7 114.5 113.4 110.8 81 Nondurable goods 40.4 114.8 114.5 113.5 113.5 113.5 112.5 111.8 111.5 111.1 111.5 111.1 110.8 110.6 110.3 82 Foods 20 9.4 113.8 114.0 113.5 113.0 113.5 113.6 112.6 112.8 112.9 113.1 113.0 112.2 112.2 112.1 83 Tobacco products 21 1.6 93.0 91.7 98.7 96.2 94.8 93.3 94.8 92.9 93.8 95.0 93.2 92.7 92.8 92.7 84 Textile mill products 22 1.8 98.9 92.2 90.5 92.4 90.9 91.0 90.4 86.7 86.8 84.3 85.8 86.2 84.4 84.7 85 Apparel products 23 2.2 101.9 99.1 97.8 97.7 97.6 97.4 97.0 96.5 94.0 95.1 91.2 89.7 88.2 87.1 86 Paper and products 26 3.6 113.9 112.9 110.6 111.0 110.8 106.0 110.6 108.8 107.1 108.1 107.7 109.4 108.0 107.0 87 Printing and publishing .... 27 6.7 106.9 107.4 106.5 106.9 105.9 104.3 102.5 102.3 101.3 101.1 100.7 100.3 100.5 99.9 88 Chemicals and products .... 28 9.9 122.0 123.5 121.1 121.2 122.2 121.4 119.5 119.9 119.5 121.2 121.2 121.3 121.6 122.1 89 Petroleum products 29 1.4 115.0 115.8 114.1 114.5 115.3 114.7 115.4 115.6 115.5 114.6 112.9 112.2 114.7 112.5 90 Rubber and plastics 30 3.5 144.9 141.5 139.5 140.4 139.5 138.8 137.9 137.1 137.7 138.0 137.3 136.8 135.5 134.2 91 Leather and products 31 .3 71.4 70.2 67.6 67.8 67.9 67.5 65.7 63.6 62.2 62.1 62.8 61.5 60.3 58.4 92 Mining 6.9 100.7 101.2 100.9 101.3 102.2 102.5 103.1 103.0 102.5 101.9 101.4 102.1 100.0 100.2 93 Metal 10 .5 97.2 90.6 98.7 96.5 91.6 87.9 92.1 91.3 88.6 88.8 87.9 89.5 87.7 86.6 94 Coal 12 1.0 107.1 108.3 107.1 113.8 113.4 115.5 114.9 113.9 115.9 111.9 111.7 111.7 106.5 106.6 95 Oil and gas extraction 13 4.8 95.6 96.7 96.2 95.7 96.6 97.1 97.6 97.4 97.0 97.0 96.3 97.0 94.8 95.2 96 Stone and earth minerals 14 .6 130.4 126.7 125.3 130.0 135.0 133.0 134.3 137.1 133.7 130.6 132.2 133.6 136.3 135.2 97 Utilities 7.7 120.7 124.2 127.7 125.2 123.4 121.8 121.3 119.7 119.1 118.2 121.1 119.1 118.7 116.4 98 Electric 491.3PT 6.2 123.3 126.1 128.7 127.1 125.0 124.7 125.2 122.8 122.9 121.0 124.5 122.2 123.2 121.5 99 Gas 492,3PT 1.6 109.9 115.7 122.4 117.0 116.2 110.3 107.1 107.8 105.2 107.4 108.1 107.4 102.5 98.1 SPECIAL AGGREGATES 100 Manufacturing excluding motor vehicles and parts 80.5 150.1 150.6 149.8 149.3 148.2 147.0 145.8 145.1 143.7 143.5 143.0 142.0 141.2 140.2 101 Manufacturing excluding computers and office equipment 83.6 144.6 144.0 142.9 141.7 141.3 140.8 139.8 139.5 138.1 138.4 137.7 136.5 135.4 135.1 102 Computers, communications equipment, and semiconductors 5.9 1,101.2 1,191.1 1,193.6 1,166.2 1,146.7 1,127.5 1.089.4 1,065.4 1,036.7 1,006.7 999.5 995.5 997.8 992.2 103 Manufacturing excluding computers and semiconductors 81.1 127.2 125.8 124.8 124.0 123.7 123.3 122.6 122.6 121.5 122.0 121.3 120.2 119.0 118.8 104 Manufacturing excluding computers, communications equipment, and semiconductors 79.5 123.9 122.4 121.3 120.5 120.4 120.0 119.4 119.4 118.5 119.0 118.4 117.3 116.2 116.0 Gross value (billions of 1992 dollars, annual rates) MAJOR MARKETS 105 Products, total 2,001.9 2,821.5 2,813.8 2,800.7 2,771.7 2,768.2 2,776.5 2,754.8 2,759.1 2,741.6 2,753.0 2,732.0 2,701.6 2,668.3 2,674.3 106 Final 1,552.1 2,176.4 2,170.5 2.161.0 2,134.6 2,133.7 2,145.9 2,129.3 2,133.0 2,118.1 2,129.7 2,107.0 2,081.8 2,057.0 2,067.8 107 Consumer goods 1,049.6 1,323.8 1,318.2 1.316.7 1,296.7 1,301.7 1,311.5 1,307.1 1,312.4 1,307.9 1,322.5 1,312.1 1,304.1 1,292.8 1,303.1 108 Equipment 502.5 859.5 859.5 850.5 845.0 837.7 839.5 825.8 823.3 811.6 806.5 793.3 773.8 759.1 758.6 109 Intermediate 449.9 645.2 643.4 639.8 637.1 634.5 630.8 625.7 626.3 623.7 623.5 625.0 619.9 611.3 606.7 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 November 2001. The recent annual revision will be described in an article in Historical Revision," Federal Resent Bulletin, vol. 76 (April 1990), pp. 187-204. an upcoming issue of the Bulletin. For a description of the methods of estimating industrial 2. Standard Industrial Classification. production and capacity utilization, see "Industrial Production and Capacity Utilization: Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A46 Domestic Nonfinancial Statistics • February 2002 2.14 HOUSING AND CONSTRUCTION Monthly figures at seasonally adjusted annual rates except as noted 2001 IItteemm 11999988 11999999 22000000 Jan. Feb. Mar. Apr. May June July Aug.' Sept.' Oct. Private residential real estate activity (thousands of units except as noted) NEW UNITS 1 Permits authorized 1,612 1,664 1,592 1,724 1,663 1,627 1,587 1,621 1,587 1,571 1,571 1,528 1,485 2 One-family 1,188 1,247 1,198 1,283 1,228 1,209 1,218 1,205 1,225 1,211 1,210 1,164 1,140 3 Two-family or more 425 417 394 441 435 418 369 416 362 360 361 364 345 4 Started 1,617 1,641 1,569 1,666 1,623 1,592 1,626 1,610 1,634 1,660 1,559 1,585 1,521 5 One-family 1,271 1,302 1,231 1,336 1,288 1,208 1,295 1,285 1,292 1,290 1,271 1,265 1,222 6 Two-family or more 346 339 338 330 335 384 331 325 342 370 288 320 299 7 Under construction at end of period1 .... 971 953 934 985 989 1,002 1,006 1,016 1,012 1,019 1,009 1,015 1,012 8 One-family 659 648 623 669 675 676 682 688 688 693 691 691 685 9 Two-family or more 312 305 310 316 314 326 324 328 324 326 318 324 327 10 Completed 1,474 1,605 1,574 1,424 1,531 1,478 1,569 1,499 1,643 1,583 1,620 1,543 1,543 11 One-family 1,160 1,270 1,242 1,090 1,201 1,207 1,232 1,225 1,275 1,269 1,276 1,258 1,300 12 Two-family or more 315 335 332 334 330 271 337 274 368 314 344 285 243 13 Mobile homes shipped 374 348 250 171 180 179 184 186 198 193 199 206 207 Merchant builder activity in one-family units 14 Number sold 886 880 877 938 959 953 899 882 889 877R 871 863 878 15 Number for sale at end of period1 300 315 301 295 295 289 293 296 301 307' 309 310 308 Price of units sold (thousands of dollars)2 16 Median 152.5 161.0 169.0 171.3 169.1 166.3 175.2 175.3 179.4 175.0' 173.7 166.8 172.2 17 Average 181.9 195.6 207.0 209.0 211.0 210.2 205.5 211.4 211.7 209.3' 207.5 203.1 207.4 EXISTING UNITS (one-family) 18 Number sold 4,970 5,205 5,113 5,200 5,190 5,430 5,220 5,360 5,330 5,200 5,540 4,900 5,180 Price of units sold (thousands of dollars)2 19 Median 128.4 133.3 139.0 137.1 138.6 143.4 143.1 145.0 152.2 151.7 153.7 147.4 145.4 20 Average 159.1 168.3 176.2 175.8 174.6 179.5 179.9 183.6 191.1 190.6 193.5 185.2 181.8 Value of new construction (millions of dollars)1 CONSTRUCTION 21 Total put in place 703,533 763,914 817,130 859,815 869,334 869,140 870,826 869,574 861,571 863,742r 856,629 851,883 858,557 22 Private 550,754 595,667 641,269 673,715 681,826 681,176 677,429 670,838 665,322 667,765' 663,108 660,249 652,991 23 Residential 314,514 349,560 375,268 386,088 398,863 395,080 392,160 394,330 391,508 395,668' 399,558 398,136 398,289 24 Nonresidential 236,240 246,107 266,001 287,627 282.963 286,096 285,269 276,508 273,814 272,097' 263,550 262,113 254,702 25 Industrial buildings 40,547 32,794 31,984 35,878 33,386 34,823 34,662 31,943 32,966 34,645' 31,884 31,291 25,644 26 Commercial buildings 95,760 104,531 116.988 125,402 124,568 128,792 124,935 118,601 116,842 115,894' 110,860 111,249 111,546 27 Other buildings 39,609 40,906 44,505 46,567 46,264 47,117 46,080 46,643 46,020 45,549' 44,851 44,829 45,991 28 Public utilities and other 60,324 67,876 72,523 79,780 78,745 75.364 79,592 79,321 77,986 76,009' 75,955 74,744 71,521 29 Public 152,779 168.247 175,861 186,100 187.508 187,964 193,397 198,736 196,249 195,977' 193,521 191,635 205,566 30 Military 2,539 2,142 2,334 2.270 2,342 2.131 2,530 2,274 2,477 2,375' 2.539 2,362 2,337 31 Highway 45,251 52,024 52,851 55,368 56,204 57.443 57,717 60,437 61,534 60,470' 55,667 53,534 56,749 32 Conservation and development 5.415 5,995 6,043 7.381 7,838 7.573 6,332 7,216 6,592 6,063 7,265 7.344 7,333 33 Other 99,575 108,086 114.634 121,081 121,124 120.817 126,818 128.809 125.646 127,069' 128,050 128,395 139,147 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) Index lleevveell,, Item 2000 2001 2001 NNoovv.. 2000 2001 2200001111 Nov. Nov. Dec. Mar. June Sept. July Aug. Sept. Oct. Nov. CONSUMER PRICES2 (1982-84=100) 1 3.4 1.9 2.3 4.0 3.7 .7 -.3 .1 .4 -.3 .0 177.4 T 2.2 3.4 2.1 4.1 3.3 2.8 .3 .2 .2 .5 -.1 174.6 16.0 -10.1 3.8 6.0 16.8 -18.2 -5.6 -1.9 2.6 -6.3 ^1.4 116.0 4 2.6 2.8 2.0 3.5 2.6 2.4 .2 .2 .2 .2 .4 188.1 .7 .0 .0 1.4 -1.6 .3 .1 -.4 .3 -.1 .2 146.0 6 33..44 44..00 3.2 4.2 44..55 3.1 .2 .5 .1 .2 .5 212.3 PRODUCER PRICES (1982=100) 7 3.8 -1.1 2.9 4.7 .9 -1.4 -1.2' .5' .4 -1.6 -.6 138.4 8 2.1 1.7 2.7 10.5 .9 2.0 -.4' .7' .2 -.4 -.8 140.5 9 18.3 -13.5 12.0 9.5 -4.2 -16.3 -7.6' 2.6' .9 -7.7 -3.8 85.5 in 1.3 1.5 1.0 2.3 2.8 1.3 .1' -.2' ..44 -.4 .3 157.8 llii 11..22 ..00 .3 .0 .6 1.7 .3' .0' ..11 -.7 .1 139.9 Intermediate materials P 4.4 -3.2 1.2 1.5 -1.2 -5.6 -1.2' -.3' .1 -1.5 -.5 127.3 1133 11..88 --11..44 -.3 11..55 --..99 -3.7 -.5' -.3' -.1 -.4 -.2 134.9 Crude materials 14 .9 -2.1 36.5 15.6 -6.8 4.2 .4' -.5' 1.1 -2.6 -5.9 98.3 15 42.5 -31.5 102.6 ^12.4 -52.0 -61.6 -12.4' .6' -10.7 -19.2 28.3 96.5 1166 Other --33..44 --99..77 -9.2 --1100..88 --1155..00 -4.5 .8' -2.1' .2 -1.7 -.8 124.5 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 • February 2002 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 Q3 Q4 Ql Q2 Q3r GROSS DOMESTIC PRODUCT 1 Total 8,781.5 9,268.6 9,872.9 9,937.5 10,027.9 10,141.7 10,202.6 10,224.9 By source 2 Personal consumption expenditures 5,856.0 6,250.2 6.728.4 6,785.5 6,871.4 6,977.6 7,044.6 7.057.6 3 Durable goods 693.2 760.9 819.6 825.4 818.7 838.1 844.7 840.6 4 Nondurable goods 1,708.5 1,831.3 1.989.6 2,012.4 2.025.1 2,047.1 2,062.3 2.057.5 5 Services 3,454.3 3,658.0 3,919.2 3.947.7 4,027.5 4,092.4 4,137.6 4,159.4 6 Gross private domestic investment 1,538.7 1,636.7 1,767.5 1,788.4 1,780.3 1,722.8 1,669.9 1.624.8 V Fixed investment 1,465.6 1,578.2 1,718.1 1,735.9 1.741.6 1,748.3 1.706.5 1,682.6 8 Nonresidential 1,101.2 1,174.6 1,293.1 1,314.9 1,318.2 1,311.2 1,260.2 1.231.0 9 Structures 282.4 283.5 313.6 321.1 330.9 345.8 338.6 334.3 10 Producers' durable equipment 818.9 891.1 979.5 993.8 987.3 965.4 921.7 896.8 11 Residential structures 364.4 403.5 425.1 421.0 423.4 437.0 446.2 451.6 12 Change in business inventories 73.1 58.6 49.4 52.5 38.7 -25.5 -36.6 -57.8 13 Nonfarm 72.3 60.1 51.1 55.3 37.8 -26.2 -35.3 -55.9 14 Net exports of goods and services -151.7 -250.9 -364.0 -380.6 -390.6 -363.8 -347.4 -294.4 15 Exports 964.9 989.8 1,102.9 1.131.1 1,121.0 1,117.4 1,079.6 1,020.6 16 Imports 1,116.7 1,240.6 1,466.9 1,511.8 1,511.6 1,481.2 1,427.0 1,315.0 17 Government consumption expenditures and gross investment 1,538.5 1,632.5 1,741.0 1,744.2 1,766.8 1.805.2 1,835.4 1,836.9 18 Federal 539.2 564.0 590.2 587.0 594.2 605.3 609.9 615.7 19 State and local 999.3 1,068.5 1,150.8 1,157.2 1,172.6 1,199.8 1,225.5 1,221.2 By major type of product 20 Final sales, total 8,708.4 9,210.0 9,823.6 9,884.9 9,989.2 10,167.2 10,239.1 10,282.7 21 Goods 3,232.3 3,418.6 3,644.8 3,677.2 3.670.6 3,718.8 3.715.0 3,690.3 22 Durable 1,524.4 1,618.8 1,735.2 1,753.8 1,740.7 1,755.8 1,737.2 1,704.9 23 Nondurable 1,707.9 1,799.8 1,909.7 1,923.5 1,929.9 1,963.1 1,977.8 1,985.4 24 Services 4,678.6 4,939.1 5,268.5 5,296.1 5,393.0 5,482.8 5,545.7 5,626.5 25 Structures 797.5 852.4 910.3 911.6 925.6 965.6 978.4 965.9 26 Change in business inventories 73.1 58.6 49.4 52.5 38.7 -25.5 -36.6 -57.8 27 Durable goods 44.7 35.3 34.7 33.0 31.5 -31.0 -42.3 -55.3 28 Nondurable goods 28.5 23.3 14.7 19.5 7.2 5.5 5.8 -2.5 MEMO 29 Total GDP in chained 1996 dollars 8,508.9 8,856.5 9,224.0 9,260.1 9,303.9 9,334.5 9,341.7 9,310.4 NATIONAL INCOME 30 Total 7,041.4 7,462.1 7,980.9 8,047.2 8,124.0 8,169.7 8,207.9 8,189.6 31 Compensation of employees 4,989.6 5,310.7 5,715.2 5,759.3 5,868.9 5,955.7 6,010.8 6.037.7 32 Wages and salaries 4,192.1 4,477.4 4,837.2 4.875.8 4.973.2 5,049.4 5,099.8 5,123.4 33 Government and government enterprises 692.7 724.3 768.4 772.6 776.6 788.8 799.6 812.5 34 Other 3,499.4 3,753.1 4,068.8 4,103.2 4,196.6 4,260.6 4,300.2 4,311.0 35 Supplement to wages and salaries 797.5 833.4 878.0 883.5 895.7 906.3 911.0 914.2 36 Employer contributions for social insurance 306.9 323.6 343.8 345.6 350.8 357.1 358.8 358.8 37 Other labor income 490.6 509.7 534.2 537.9 544.9 549.3 552.2 555.4 38 Proprietors' income1 623.8 672.0 715.0 719.3 725.2 735.2 745.3 752.7 39 Business and professional1 598.2 645.4 684.4 687.6 693.5 705.4 716.6 720.5 40 Farm1 25.6 26.6 30.6 31.6 31.7 29.8 28.7 32.3 41 Rental income of persons2 138.6 147.7 141.6 138.3 141.7 139.6 139.0 144.0 42 Corporate profits' 777.4 825.2 876.4 895.0 847.6 789.8 759.8 697.0 43 Profits before tax3 721.1 776.3 845.4 858.3 816.5 755.7 738.3 680.6 44 Inventory valuation adjustment 18.3 -2.9 -12.4 -3.6 -7.3 -1.9 -8.8 3.1 45 Capital consumption adjustment 38.0 51.7 43.4 40.4 38.4 36.0 30.3 13.4 46 Net interest 511.9 506.5 532.7 535.3 540.6 549.4 553.0 558.3 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. Suney 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 Q3 Q4 QI Q2 Q3' PERSONAL INCOME AND SAVING 1 Total personal income 7,426.0 7,777.3 8,319.2 8,381.5 8,519.6 8,640.2 8,714.6 8,771.8 2 Wage and salary disbursements 4,192.8 4,472.2 4,837.2 4,875.8 4,973.2 5,049.4 5,099.8 5,123.4 3 Commodity-producing industries 1,038.5 1,088.7 1,163.7 1,173.2 1,195.5 1,206.3 1,204.4 1,197.5 4 Manufacturing 756.6 782.0 830.1 838.0 852.2 853.3 850.2 841.1 Distributive industries 948.9 1,021.0 1,095.6 1,102.4 1,125.9 1,140.3 1,148.2 1,148.1 6 Service industries 1,512.7 1,638.2 1,809.5 1,827.6 1,875.2 1,914.0 1,947.6 1,965.4 7 Government and government enterprises 692.7 724.3 768.4 772.6 776.6 788.8 799.6 812.5 S Other labor income 490.6 509.7 534.2 537.9 544.9 549.3 552.2 555.4 9 Proprietors' income1 623.8 672.0 715.0 719.3 725.2 735.2 745.3 752.7 10 Business and professional1 598.2 645.4 684.4 687.6 693.5 705.4 716.6 720.5 11 Farm1 25.6 26.6 30.6 31.6 31.7 29.8 28.7 32.3 12 Rental income of persons2 138.6 147.7 141.6 138.3 141.7 139.6 139.0 144.0 N Dividends 348.3 343.1 379.2 385.8 396.6 404.8 411.9 420.0 14 Personal interest income 964.4 950.0 1,000.6 1,009.2 1,013.1 1,010.9 1,001.0 991.5 15 Transfer payments 983.7 1,019.6 1,069.1 1,074.6 1,089.0 1,123.1 1,139.4 1,159.0 16 Old-age survivors, disability, and health insurance benefits 578.1 588.0 617.3 620.9 626.5 651.4 660.1 670.8 17 LESS: Personal contributions for social insurance 316.3 337.1 357.7 359.4 364.1 372.1 374.0 374.2 18 EQUALS: Personal income 7,426.0 7,777.3 8,319.2 8,381.5 8,519.6 8,640.2 8,714.6 8,771.8 19 LESS: Personal tax and nontax payments 1,070.4 1,159.2 1,288.2 1,300.2 1,329.8 1,345.2 1,351.4 1,195.5 20 EQUALS: Disposable personal income 6,355.6 6,618.0 7,031.0 7,081.3 7,189.8 7,295.0 7,363.2 7,576.4 21 LESS: Personal outlays 6,054.1 6,457.2 6,963.3 7,026.9 7,115.1 7,216.2 7,281.7 7,291.0 22 EQUALS: Personal saving 301.5 160.9 67.7 54.5 74.7 78.8 81.5 285.3 MEMO Per capita (chained 1996 dollars) 7.3 Gross domestic product 31,449.2 32,441.9 33,490.3 32,732.7' 32,783.4' 32,798.6' 32,732.1' 32,508.4 24 Personal consumption expenditures 21,007.2 21,862.6 22,720.7 22,241.5' 22,343.5' 22,447.3' 22,524.2' 22,499.5 25 Disposable personal income 22,800.0 23,150.0 23,742.0 23,209.0' 23,376.0' 23,470.0' 23,541.0' 24,157.0 26 Saving rate (percent) 4.7 2.4 1.0 .8 1.0 1.1 1.1 3.8 GROSS SAVING 27 Gross saving 1,647.2 1,707.4 1,785.7 1,807.4 1,799.7 1,754.0 1,750.5 1,751.9 28 Gross private saving 1,375.0 1,348.0 1,323.0 1,329.6 1,332.7 1,307.9 1,321.2 1,534.4 29 Personal saving 301.5 160.9 67.7 54.5 74.7 78.8 81.5 285.3 .30 Undistributed corporate profits' 189.9 228.7 225.3 233.9 197.0 147.8 119.5 71.7 31 Corporate inventory valuation adjustment 18.3 -2.9 -12.4 -3.6 -7.3 -1.9 -8.8 3.1 Capital consumption allowances 3? Corporate 620.2 669.2 727.1 736.0 749.7 763.8 778855..66 884477..00 33 Noncorporate 264.2 284.1 302.8 305.2 311.3 317.5 334.6 330.4 34 Gross government saving 272.2 359.4 462.8 477.8 467.1 446.1 429.3 217.6 35 Federal 132.0 210.9 315.0 326.9 320.5 303.7 286.2 86.2 36 Consumption of fixed capital 88.2 91.7 96.4 97.0 97.9 98.4 99.4 99.8 37 Current surplus or deficit (-), national accounts 43.8 119.2 218.6 229.9 222.5 205.3 186.7 -13.6 38 State and local 140.2 148.5 147.8 150.9 146.6 142.5 143.2 131.4 39 Consumption of fixed capital 99.5 106.4 114.9 116.1 118.0 120.2 121.9 129.5 40 Current surplus or deficit (-), national accounts 40.7 42.1 32.8 34.8 28.6 22.3 21.3 1.9 41 Gross investment 1,616.2 1,634.7 1,655.3 1,651.1 1,649.7 1,633.5 1,607.3 1,602.3 42 Gross private domestic investment 1,538.7 1,636.7 1,767.5 1,788.4 1,780.3 1,722.8 1,669.9 1,624.8 43 Gross government investment 277.1 304.6 318.3 314.0 322.8 330.9 344.0 331.9 44 Net foreign investment -199.7 -306.6 ^130.5 -451.3 -453.4 -420.2 -406.6 -354.5 45 Statistical discrepancy -31.0 -72.7 -130.4 -156.3 -150.0 -120.5 -143.2 -149.7 1. With inventory valuation and capital consumption adjustments. SOURCE. U.S. Department of Commerce, Survey of Current Business. 2. With capital consumption adjustment. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A50 International Statistics • February 2002 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 Q3 Q4 Ql Q2 Q3 1 Balance on current account -217,457 -324,364 -444,667 -115,305 -116,324 -111,778 -107,576 -94,980 2 Balance on goods and services -166,828 -261,838 -375,739 -97,340 -100,293 -95,023 -90,543 -77,587 3 Exports 932,694 957,353 1,065,702 272,497 270,131 269,092 259,315 243,391 4 Imports -1,099,522 -1,219,191 -1,441,441 -369,837 -370,424 -364,115 -349,858 -320,978 5 Income, net -6,202 -13,613 -14,792 -4,885 642 -5,021 -4,995 -5,038 6 Investment, net -1,211 -8,511 -9,621 -3,620 1,971 -3,661 -3,658 -3,716 7 Direct 66,253 67,044 81,231 21,049 25,703 22,673 23,426 24,045 8 Portfolio -67,464 -75,555 -90,852 -24,669 -23,732 -26,334 -27,084 -27,761 9 Compensation of employees ^1,991 -5,102 -5,171 -1,265 -1,329 -1,360 -1,337 -1,322 10 Unilateral current transfers, net -44,427 ^18,913 -54,136 -13,080 -16,673 -11,734 -12,038 -12,355 11 Change in U.S. government assets other than official reserve assets, net (increase, -) -422 2,751 -944 114 -359 21 -786 23 12 Change in U.S. official reserve assets (increase, —) -6,783 8,747 -290 -346 -1,410 190 -1,343 -3,559 13 Gold 0 0 0 0 0 0 0 0 14 Special drawing rights (SDRs) -147 10 -722 -182 -180 -189 -156 -145 15 Reserve position in International Monetary Fund -5,119 5,484 2,308 1,300 -1,083 574 -1,015 -3,242 16 Foreign currencies -1,517 3,253 -1,876 -1,464 -147 -195 -172 -172 17 Change in U.S. private assets abroad (increase, -) -352,427 -448,565 -579,718 -107,495 -179,779 -243,331 -70,046 -11,847 18 Bank-reported claims2 -35,572 -76,263 -138,500 -18,147 -71,574 -109,789 -105 56,025 19 Nonbank-reported claims -38,204 -85,700 -163,846 -14,585 -44,514 -61,011 22,232 -29,773 20 U.S. purchase of foreign securities, net -136,135 -131,217 -124,935 -33,129 -24,621 -31,591 -51,109 13,963 21 U.S. direct investments abroad, net -142,516 -155,385 -152,437 -41,634 -39,070 -40,940 -4 1,064 -52,062 22 Change in foreign official assets in United States (increase, +) -19,948 43,551 37,619 12,247 -3,573 4,898 -20,879 16,814 23 U.S. Treasury securities -9,921 12,177 -10,233 -9,001 -13,436 -1,027 -20,783 15,810 24 Other U.S. government obligations 6,332 20,350 40,909 14,272 8,196 3,574 9,932 -216 25 Other U.S. government liabilities2 -3,371 -2,855 -1,987 -220 -293 -1,246 -926 113 26 Other U.S. liabilities reported by U.S. banks2 -9,501 12,964 5,803 6,884 980 2,594 -10,130 -874 27 Other foreign official assets3 -3,487 915 3,127 312 980 1,003 1,028 1,981 28 Change in foreign private assets in United States (increase, +) 524,412 770,193 986,599 209,861 298,894 341,762 247,460 35,297 29 U.S. bank-reported liabilities4 39,769 54,232 87,953 -1,910 43,365 6,890 44,271 -54,015 30 U.S. nonbank-reported liabilities 23,140 69,075 177,010 19,078 48,344 130,624 3,375 -13,298 31 Foreign private purchases of U.S. Treasury securities, net 48,581 -20,490 -52,792 -12,503 -10,395 656 -8,678 -9,436 32 U.S. currency flows 16,622 22,407 1,129 757 6,230 2,311 2,772 8,203 33 Foreign purchases of other U.S. securities, net 218,091 343,963 485,644 128,393 126,643 148,809 140,512 77,455 34 Foreign direct investments in United States, net 178,209 301,006 287,655 76,046 84,707 52,472 65,208 26,388 .35 Capital account transactions, net5 678 -3,491 705 175 184 173 177 182 36 Discrepancy 71,947 -48,822 696 749 2,367 8,065 -47,007 58,070 37 Due to seasonal adjustment -9,977 3,856 8,821 -1,835 -8,617 38 Before seasonal adjustment 71,947 -48,822 696 10,726 -1,489 -756 ^15,172 66,687 MEMO Changes in official assets 39 U.S. official reserve assets (increase, —) -6,783 8,747 -290 -346 -1,410 190 -1,343 -3,559 40 Foreign official assets in United States, excluding line 25 (increase, +) -16,577 46,406 39,606 12,467 -3,280 6,144 -19,953 16,701 41 Change in Organization of Petroleum Exporting Countries official assets in United States (part of line 22) -11,531 1,621 11,582 3,636 164 589 -1,743 -4,057 1. Seasonal factors are not calculated for lines 11-16, 18-20, 22-35, and 38^tl. 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 Apr.r May' Juner Julyr Aug.r Sept.' Oct.p 1 Goods and services, balance -166,686 -261,838 -375,739 -31,841 -28,876 -29,827 -30,166 -28,017 -19,019 -29,325 2 Merchandise -246,855 -345,434 -452,207 -37,656 -34,449 -35,553 -35,838 -34,073 -35,531 -35,045 3 Services 79,868 83,596 76,468 5,815 5,573 5,726 5,672 6,056 16,512 5,720 4 Goods and services, exports 933,053 957,353 1,065,702 86,848 87,155 85,312 82,822 83,837 76,775 77,640 5 Merchandise 670,324 684,553 772,210 62,170 62,846 60,848 58,688 59,533 55,597 56,590 6 Services 262,729 272,800 293,492 24,678 24,309 24,464 24,134 24,304 21,178 21,050 7 Goods and services, imports -1,099,739 -1,219,191 -1,441,441 -118,689 -116,031 -115,139 -112,988 -111,854 -95,794 -106,965 8 Merchandise -917,179 -1,029,987 -1,224,417 -99,826 -97,295 -96,401 -94,526 -93,606 -91,128 -91,635 9 Services -182,560 -189,204 -217,024 -18,863 -18,736 -18,738 -18,462 -18,248 -4,666 -15,330 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 May June July Aug. Sept. Oct. Nov. Dec.P 1 Total 81,761 71,516 67,647 65,254 64,847 65,736 67,852 70,963 69,707 69,158 68,654 2 Gold stock1 11,046 11,048 11,046 11,044 11,044 11,044 11,044 11,045 11,045 11,045 11,045 3 Special drawing rights2'3 10,603 10,336 10,539 10,481 10,409 10,518 10,913 10,919 10,827 10,864 10,774 4 Reserve position in International Monetary Fund2 24,111 17,950 14,824 14,283 14,619 14,965 15,297 18,404 17,787 17,293 17,854 5 Foreign currencies4 36,001 32,182 31,238 29,446 28,775 29,209 30,598 30,595 30,048 29,956 28,981 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 May June July Aug. Sept. Oct. Nov. Dec.p 1 Deposits 167 71 215 86 102 84 80 608 75 528 61 Held in custody 2 U.S. Treasury securities2 607,574 632,482 594,094 583,655 586,607 578,573 590,820 587,566 599,043 600,129 592,630 3 Earmarked gold3 10,343 9,933 9,451 9,154 9,100 9,100 9,100 9,100 9,099 9,099 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 • February 2002 3.15 SELECTED U.S. LIABILITIES TO FOREIGN OFFICIAL INSTITUTIONS Millions of dollars, end of period 2001 IItteemm 11999999 22000000 Apr. May June July Aug. Sept. Oct.p 1 Total1 806,318 845,869 855,083' 836,962' 835,417' 845,155 839,457 852,175 858,074 By type 2 Liabilities reported by banks in the United States2 138,847 144,593 158,372' 143,616r 144,414' 151,858 137,621 143,597 140,126 3 U.S. Treasury bills and certificates3 156,177 153,010 144,158 137,933 139,195 143,288 151,850 153,899 158,572 U.S. Treasury bonds and notes 4 Marketable 422,266 415,964 410,066 410,979 407,736 406,995 407,338 409,887 412,126 5 Nonmarketable4 6,111 5,348 5,017 5,049 5,081 4,846 4,805 4,036 3,520 6 U.S. securities other than U.S. Treasury securities5 82,917 126,954 137,470 139,385 138,991 138,168 137,843 140,756 143,730 By area 7 244,805 253,592 247,128 251,505 252,391 262,830 260,593 262,568 262,989 8 12,503 12,394 10,474 10,967 11,573 11,727 12,033 11,299 11,780 9 Latin America and Caribbean 73,518 76,753 79,395r 75,861' 79,068' 79,359 76,251 75,751 75,503 10 Asia 463,703 488,170 501,085 482,959' 478,253' 475,475 474,650 488,358 491,339 11 7,523 9,165 9,341 9,272 9,054 10,574 9,864 10,249 10,337 12 Other countries 4,266 5,795 7,660 6,398 5,078 5,190 6,066 3,950 6,126 1. Includes the Bank for International Settlements. Venezuela, beginning December 1990, 30-year maturity issue; Argentina, beginning April 2. Principally demand deposits, time deposits, bankers acceptances, commercial paper, 1993, 30-year maturity issue. negotiable time certificates of deposit, and borrowings under repurchase agreements. 5. Debt securities of U.S. government corporations and federally sponsored agencies, and 3. Includes nonmarketable certificates of indebtedness and Treasury bills issued to official U.S. corporate stocks and bonds. institutions of foreign countries. SOURCE. Based on U.S. Department of the Treasury data and on data reported to the 4. Excludes notes issued to foreign official nonreserve agencies. Includes current value of department by banks (including Federal Reserve Banks) and securities dealers in the United zero-coupon Treasury bond issues to foreign governments as follows: Mexico, beginning States, and on the 1994 benchmark survey of foreign portfolio investment in the United March 1988, 20-year maturity issue, and beginning March 1990, 30-year maturity issue; States. 3.16 LIABILITIES TO, AND CLAIMS ON, FOREIGNERS Reported by Banks in the United States1 Payable in Foreign Currencies Millions of dollars, end of period 2000 2001 IItteemm 11999977 11999988 11999999 Dec.' Mar. June' Sept. 1 Banks' liabilities 117,524 101,125 88,537 77,779 89,394 108,418 93,194 2 Banks' claims 83,038 78,162 67,365 56,912 73,179 77,400 68,703 3 Deposits 28,661 45,985 34,426 23,315 29,902 32,765 36,895 4 Other claims 54,377 32,177 32,939 33,597 43,277 44,635 31,808 5 Claims of banks' domestic customers2 8,191 20,718 20,826 24,411 21,105 21,144 20,844 1. Data on claims exclude foreign currencies held by US. monetary authorities . 2. Assets owned by customers of the reporting bank located in the United States that represent claims on foreigners held by reporting banks for the accounts of the domestic customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A53 3.17 LIABILITIES TO FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2001 IItteemm 11999988 11999999 22000000 Apr. May June July Aug. Sept. Oct.? BY HOLDER AND TYPE OF LIABILITY 1 Total, all foreigners 1,347,837 1,408,740 1,511,380 l,530,045r 1,532,049r l,518,559r 1,519,184' l,508,339r l,489,444r 1,556,311 2 Banks' own liabilities 884,939 971,536 1,077,606 1,092,745' 1,113,858' 1,095,004' 1,098,872' 1,077,567' 1,057,601' 1,111,723 3 Demand deposits 29,558 42,884 33,365 30,213' 29,123 32,833 29,949' 33,668' 34,258' 28,235 4 Time deposits2 151,761 163,620 187,883 187,974' 180,063' 179,380' 174,456' 174,196' 178,502' 168,511 5 Other1 140,752 155,853 171,401 201,904' 206,146' 212,071' 225,276 206,037 196,294 212,013 6 Own foreign offices4 562,868 609,179 684,957 672,654' 698,526' 670,720' 669,191' 663,666' 648,547' 702,964 7 Banks' custodial liabilities5 462,898 437,204 433,774 437,300 418,191 423,555 420,312 430,772 431,843 444,588 8 U.S. Treasury bills and certificates6 183,494 185,676 177,846 160,702 156,022 156,525 160,847 170,605 173,115 179,264 9 Short-term agency securities7 n.a. n.a. n.a. 69,543 62,425 60,081 61,471 62,801 62,114 62,126 10 Other negotiable and readily transferable instruments8 141,699 132,617 145,840 78,258 80,917 78,790 76,503 76,676 74,698 76,832 11 Other 137,705 118,911 110,088 128,797 118,827 128,159 121,491 120,690 121,916 126,366 12 Nonmonetary international and regional organizations9 11,883 15,276 12,542 12,952' 14,668 13,818 11,255 13,214 13,309 15,004 13 Banks' own liabilities 10,850 14,357 12,140 12,463' 14,342 13,479 11,020 12,983 13,075 14,441 14 Demand deposits 172 98 41 14 15 28 50 21 36 40 15 Time deposits2 5,793 10,349 6,246 5,301 3,532 4,228 2,896 2,738 2,299 2,627 16 Other3 4,885 3,910 5,853 7,148' 10,795 9,223 8,074 10,224 10,740 11,774 17 Banks' custodial liabilities5 1,033 919 402 489 326 339 235 231 234 563 18 U.S. Treasury bills and certificates6 636 680 252 170 105 68 78 92 118 521 19 Short-term agency securities7 n.a. n.a. n.a. 144 132 134 132 117 102 18 20 Other negotiable and readily transferable instruments8 397 233 149 175 87 137 25 21 13 13 21 Other 0 6 1 0 2 0 0 1 1 11 22 Official institutions10 260,060 295,024 297,603 302,530' 281,549' 283,609' 295,146 289,471 297,496 298,698 23 Banks' own liabilities 80,256 97,615 96,989 103,439' 96,391' 99,996' 108,991 94,150 101,385 96,187 24 Demand deposits 3,003 3,341 3,952 2,552 2,522 2,465 2,169 2,934 3,042 2,507 25 Time deposits2 29,506 28,942 35,573 31,985 26,625 32,752 28,121 26,441 31,971 25,248 26 Other3 47,747 65,332 57,464 68,902' 67,244' 64,779' 78,701 64,775 66,372 68,432 27 Banks' custodial liabilities5 179,804 197,409 200,614 199,091 185,158 183,613 186,155 195,321 196,111 202,511 2.8 U.S. Treasury bills and certificates6 134,177 156,177 153,010 144,158 137,933 139,195 143,288 151,850 153,899 158,572 29 Short-term agency securities7 n.a. n.a. n.a. 51,107 43,193 40,301 39,971 40,727 39,961 40,542 30 Other negotiable and readily transferable instruments8 44,953 41,182 47,366 3,325 3,509 3,647 2,686 2,558 2,230 2,561 31 Other 674 50 238 501 523 470 210 186 21 836 32 Banks" 885,336 900,379 972,902 965,864' 989,545' 969,095' 957,696 955,544 929,462' 986,040 33 Banks' own liabilities 676,057 728,492 821,276 816,257' 844,991' 815,951' 811,173 809,835 787,760' 838,537 34 Unaffiliated foreign banks 113,189 119,313 136,319 143,603' 146,465' 145,231' 141,982' 146,169' 139,213 135,573 35 Demand deposits 14,071 17,583 15,522 13,030 12,143 15,211 12,548 14,585 14,928 10,144 36 Time deposits2 45,904 48,140 66,904 71,200' 69,365' 63,199' 62,794' 64,252' 64,816 61,308 37 Other3 53,214 53,590 53,893 59,373' 64,957' 66,821' 66,640 67,332 59,469 64,121 38 Own foreign offices4 562,868 609,179 684,957 672,654' 698,526' 670,720' 669,191' 663,666' 648,547' 702,964 39 Banks' custodial liabilities5 209,279 171,887 151,626 149,607 144,554 153,144 146,523 145,709 141,702 147,503 40 US. Treasury bills and certificates6 35,359 16,796 16,023 7,233 8,535 8,455 9,093 9,582 8,781 9,497 41 Short-term agency securities7 n.a. n.a. n.a. 2,824 3,772 3,169 2,535 2,421 2,628 2,655 42 Other negotiable and readily transferable instruments8 45,332 45,695 36,036 25,738 28,319 27,836 27,097 27,042 23,889 25,115 43 Other 128,588 109,396 99,567 113,812 103,928 113,684 107,798 106,664 106,404 110,236 44 Other foreigners 190,558 198,061 228,333 248,699' 246,287' 252,037' 255,087' 250,110' 249,177' 256,569 45 Banks' own liabilities 117,776 131,072 147,201 160,586' 158,134' 165,578' 167,688' 160,599' 155,381' 162,558 46 Demand deposits 12,312 21,862 13,850 14,617' 14,443 15,129 15,182' 16,128' 16,252' 15,544 47 Time deposits2 70,558 76,189 79,160 79,488' 80,541' 79,201' 80,645' 80,765' 79,416' 79,328 48 Other3 34,906 33,021 54,191 66,481' 63,150' 71,248' 71,861 63,706 59,713 67,686 49 Banks' custodial liabilities5 72,782 66,989 81,132 88,113 88,153 86,459 87,399 89,511 93,796 94,011 50 U.S. Treasury bills and certificates6 13,322 12,023 8,561 9,141 9,449 8,807 8,388 9,081 10,317 10,674 51 Short-term agency securities7 n.a. n.a. n.a. 15,468 15,328 16,477 18,833 19,536 19,423 18,911 52 Other negotiable and readily transferable instruments8 51,017 45,507 62,289 49,020 49,002 47,170 46,695 47,055 48,566 49,143 53 Other 8,443 9,459 10,282 14,484 14,374 14,005 13,483 13,839 15,490 15,283 MEMO 54 Negotiable time certificates of deposits in custody for foreigners 27,026 30,345 34,217 26,238 25,912 24,884 22,640 24,442 23,228 23,632 55 Repurchase agreements7 n.a. n.a. n.a. 119,577 119,901 126,508 138,328 132,705 111,109 127,516 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 for foreign customers. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A54 International Statistics • February 2002 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 Apr. May June July Aug. Sept. Oct.p AREA 56 Total, all foreigners 1,347,837 1,408,740 1,511,380 1,530,045r l,532,049r 1,518,559' 1,519,184' 1,508,339' 1,489,444' 1,556,311 57 Foreign countries 1,335,954 1,393,464 1,498,837 l,517,092r 1,517,380' 1,504,740' 1,507,928' 1,495,125' 1,476,135' 1,541,306 58 Europe 427,375 441,810 446,788 431,205' 464,032' 457,405' 449,629' 431,158' 414,091' 429,532 59 Austria 3,178 2,789 2,692 2,771 2,593 2,026 2,040 2,370 2,398 2,136 60 Belgium12 42,818 44,692 33,399 5,309 5,895 6,270 7,058 6,624 6,424 6,961 61 Denmark 1,437 2,196 3,000 3,412 2,910 3,063 2,596 3,294 3,243 3,542 62 Finland 1,862 1,658 1,411 1,769 1,144 2,395 1,574 1,003 1,267 1,137 63 France 44,616 49,790 37,833 38,757' 40,209 40,076' 42,709' 39,661' 38,263' 48,465 64 Germany 21,357 24,753 35,519 29,591 30,341 32,358 32,336 27,764 20,385 23,103 65 Greece 2,066 3,748 2,011 1,336 1,525 1,653 2,288 2,607 2,440 2,416 66 Italy 7,103 6,775 5,072 5,272 5,534 6,767 5,877 4,761 5,803 5,424 67 Luxembourg12 n.a. n.a. n.a. 14,455' 14,961' 14,876' 14,568 14,411 15,065 14,681 68 Netherlands 10,793 8,143 7,047 10,146 10,772 9,621 11,372 11,537 11,145 12,173 69 Norway 710 1,327 2,305 4,807 2,573 4,584 3,540 3,961 3,565 3,145 70 Portugal 3,236 2,228 2,403 1,949 2,041 2,287 2,662 2,490 2,594 2,764 71 Russia 2,439 5,475 19,018 19,917 21,357 22,839 23,966 22,687 22,942 23,716 72 Spain 15,781 10,426 7,787 7,750 7,886 7,412 6,974 7,286 8,927 9,812 73 Sweden 3,027 4,652 6,497 6,025 5,284 5,507 4,111 3,233 3,760 3,482 74 Switzerland 50,654 63,485 74,635 65,967' 93,170' 73,078' 65,942 53,148 39,576 39,535 75 Turkey 4,286 7,842 7,548 4,556 7,171 5,487 6,194 7,068 6,203 6,769 76 United Kingdom 181,554 172,687 167,757 138,324' 139,007' 145,667' 137,207 138,121 139,218 142,678 77 Channel Islands and Isle of Man13 n.a. n.a. n.a. 36,013 34,742 34,994 35,018 35,745 36,072 36,392 78 Yugoslavia14 233 286 276 303 301 297 395 297 321 313 79 Other Europe and other former U.S.S.R.15 30,225 28,858 30,578 32,776 34,616 36,148' 41,202 43,090 44,480 40,888 80 Canada 30,212 34,214 30,982 27,964 25,984 25,973 26,378 28,098 26,117 25,684 81 Latin America 121,327 117,495 120,041 117,379' 113,213' 117,457' 118,565' 120,738' 119,268' 119,772 82 Argentina 19,014 18,633 19,451 14,67(Y 12,390' 16,458' 13,296' 11,260' 15,139' 13,001 83 Brazil 15,815 12,865 10,852 10,858' 11,264' 12,586' 14,369' 16,142' 16,979' 16,343 84 Chile 5,015 7,008 5,892 5,450 5,702 5,491 5,443 5,322 5,740 5,403 85 Colombia 4,624 5,669 4,542 4,620 4,746 4,631 4,397 4,582 4,449 4,590 86 Ecuador 1,572 1,956 2,112 2,187 2,140 1,981 2,145 2,170 2,117 2,100 87 Guatemala 1,336 1,626 1,601 1,564 1,594 1,515 1,530 1,466 1,442 1,479 88 Mexico 37,157 30,717 32,166 34,048' 33,080' 33,239' 34,591' 37,836' 37,338' 38,053 89 Panama 3,864 4,415 4,240 3,487' 3,648' 3,520' 3,700' 3,678' 3,768' 3,807 90 Peru 840 1,142 1,427 1,770 1,535 1,614 1,599 1,526 1,466 1,520 91 Uruguay 2,486 2,386 3,003 3,411 3,333 3,026 2,980 2,993 2,684 3,118 92 Venezuela 19,894 20,192 24,730 27,892 26,920 26,940 27,604 26,969 21,768 23,538 93 Other Latin America16 9,710 10,886 10,025 7,422' 6,861' 6,456 6,911 6,794 6,378 6,820 94 Caribbean 433,539 461,200 573,337 605,579' 600,228' 598,071' 608,416' 613,570' 596,849' 645,768 95 Bahamas 118,085 135,811 189,298 177,506 190,142 187,469 183,844 184,763 178,257 212,427 96 Bermuda 6,846 7,874 9,636 8,317 7,020 7,816 8,230 7,419 7,533 9,359 97 British West Indies17 302,486 312,278 367,197 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 98 Cayman Islands17 n.a. n.a. n.a. 401,527' 385,606' 384,259' 400,553' 406,070' 393,331' 403,237 99 Cuba 62 75 90 83 84 85 88 45 154 86 100 Jamaica 577 520 794 867 1,101 963 975 967 958 869 101 Netherlands Antilles 5,010 4,047 5,428 4,523 3,402 3,892 3,207 3,270 4,505 6,006 102 Trinidad and Tobago 473 595 894 1,114 1,237 1,272 1,253 1,428 1,410 1,508 103 Other Caribbean16 n.a. n.a. n.a. 11,642 11,636 12,315 10,266 9,608' 10,701' 12,276 104 307,960 319,489 305,524 311,663' 291,775' 284,030' 228833,,666611'' 279,093' 330000,,552233'' 229988,,883300 China 105 Mainland 13,441 12,325 16,531 34,689 23,156 15,390 15,586 16,023 16,886 17,991 106 Taiwan 12,708 13,603 17,352 19,946' 18,102' 19,844' 23,063' 22,756' 22,233' 19,123 107 Hong Kong 20,900 27,701 26,462 26,580' 27,347' 29,179' 26,841' 23,837' 24,585' 23,130 108 India 5,250 7,367 4,530 4,113 4,281 4,043 4,413 4,076 4,024 3,879 109 Indonesia 8,282 6,567 8,514 10,726' 10,600' 10,565' 11,629' 11,987' 11,926' 12,340 110 Israel 7,749 7,488 8,053 7,095 8,282 8,696 8,710 7,715 8,818 7,327 111 Japan 168,563 159,075 150,415 144,863 141,250 137,072 134,252 132,305 149,610' 157,321 112 Korea (South) 12,524 12,988 7,955 5,879 5,854 6,746 7,366 7,046 7,723 7,757 113 Philippines 3,324 3,268 2,316 1,669 1,684 1,478 1,657 1,791 1,884 1,835 114 Thailand 7,359 6,050 3,117 2,936 3,306 3,316 3,381 3,763 3,347 3,610 115 Middle Eastern oil-exporting countries18 15,609 21,314 23,733 20,517' 19,646' 20,520' 19,190 20,542 20,844 18,799 116 Other 32,251 41,743 36,546 32,650' 28,267' 27,181' 27,573 27,252 28,643 25,718 117 8,905 9,468 10,824 10,662 10,622 10,584 12,178 12,194 11,609 12,143 118 Egypt 1,339 2,022 2,621 2,213 2,220 2,267 3,526 3,647 3,014 2,912 119 Morocco 97 179 139 139 116 102 118 165 235 333 120 South Africa 1,522 1,495 1,010 794 707 693 839 1,324 810 944 121 Congo (formerly Zaire) 5 14 4 5 2 14 5 5 2 3 122 Oil-exporting countries" 3,088 2,914 4,052 4,752 4,740 4,645 4,349 3,839 4,431 4,969 123 Other 2,854 2,844 2,998 2,759 2,837 2,863 3,341 3,214 3,117 2,982 124 Other countries 6,636 9,788 11,341 12,640 11,526 11,220 9,101 10,274 7,678 9,577 125 Australia 5,495 8,377 10,070 11,391 10,419 9,855 8,058 9,290 6,822 8,633 126 New Zealand20 n.a. n.a. n.a. 503 437 862 501 517 437 503 127 All other 1,141 1,411 1,271 746 670 503 542 467 419 441 128 Nonmonetary international and regional organizations 11,883 15,276 12,543 12,953' 14,669 13,819 11,256 13,214 13,309 15,005 129 International21 10,221 12,876 11,270 11,174' 12,705' 12,549' 10,241 12,090 12,224 13,652 130 Latin American regional22 594 1,150 740 607' 1,146' 705' 441 509 569 480 131 Other regional23 1,068 1,250 533 620 518 523 502 558 476 822 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

Bank-Reported Data A55 3.18 BANKS' OWN CLAIMS ON FOREIGNERS Reported by Banks in the United States1 Payable in U.S. dollars Millions of dollars, end of period 2001 AArreeaa oorr ccoouunnttrryy 11999988 11999999 22000000 Apr. May June July Aug. Sept.' Oct.p 1 Total, all foreigners 734,995 793,139 904,697 990,194r 996,741r 990,763r 975,363 948,839 958,006 993,758 2 Foreign countries 731,378 788,576 900,011 987,439r 992,831r 986,065r 970,509 944,288 953,530 988,854 3 Europe 233,321 311,686 378,115 443,051 461,025 452,076' 441,780 413,717 406,726 413,867 4 Austria 1,043 2,643 2,926 3,728 3,364 2,870 2,714 3,130 3,116 3,847 Belgium2 7,187 10,193 5,399 4,375 5,627 4,254 9,184 4,451 4,780 6,005 6 Denmark 2,383 1,669 3,272 2,954 2,505 2,268 1,345 1,570 1,672 939 7 Finland 1,070 2,020 7,382 8,901 8,800 8,460 8,666 8,350 10,917 12,065 8 France 15,251 29,142 40,035 46,378 42,189 48,835 56,997 56,342 51,709 60,768 9 Germany 15,923 29,205 36,834 49,062 55,063 51,242 47,378 47,744 37,802 39,576 10 Greece 575 806 646 265 285 313 369 278 288 338 11 Italy 7,284 8,496 7,629 7,274 6,867 8,111 5,466 6,227 6,639 7,728 P Luxembourg2 n.a. n.a. n.a. 2,012 1,876 1,285 914 1,010 910 1,087 13 Netherlands 5,697 11,810 17,043 22,692 16,488 16,993 16,875 16,309 18,408 17,258 14 Norway 827 1,000 5,012 5,296 2,915 6,502 4,379 3,851 4,835 3,663 15 Portugal 669 1,571 1,382 1,535 1,173 1,304 1,050 1,232 1,285 1,169 16 Russia 789 713 517 813 715 911 589 877 676 876 17 Spain 5,735 3,796 2,603 3,445 4,275 3,654' 3,955 3,431 4,662 3,837 18 Sweden 4,223 3,264 9,226 11,934 10,986 11,049 11,507 11,651 12,216 11,950 19 Switzerland 46,874 79,158 82,085 104,816 137,273 111,492 96,036 79,942 72,545 71,932 70 Turkey 1,982 2,617 3,059 2,770 2,596 2,530 2,499 2,407 2,307 2,294 71 United Kingdom 106,349 115,971 144,938 156,161 149,064 161,720 161,232 157,531 163,164 158,469 22 Channel Islands and Isle of Man3 n.a. n.a. n.a. 3,151 3,838 3,275 3,417 3,162 3,900 3,779 23 Yugoslavia4 53 50 50 49 59 49 4 4 4 4 24 Other Europe and other former U.S.S.R.5 9,407 7,562 8,077 5,440 5,067 4,959' 7,204 4,218 4,891 6,283 25 Canada 47,037 37,206 39,858 45,094 44,583 50,153 43,308 42,847 50,293 48,772 26 Latin America 79,976 74,040 76,588 73,864r 73,855' 73,767' 73,432 76,376 74,694 74,231 27 Argentina 9,552 10,894 11,546 11,548r 11 11,923 12,344 13,103 12,120 11,665 ?8 Brazil 16,184 16,987 20,567 20,298r 20,728' 21,538 20,941 22,152 22,481 21,481 29 Chile 8,250 6,607 5,815 5,630' 5,444' 5,451 5,217 5,379 5,240 5,382 30 Colombia 6,507 4,524 4,370 3,720 3,740 3,641 3,625 3,720 3,604 3,560 31 Ecuador 1,400 760 635 526 482 523 515 505 508 507 32 Guatemala 1,127 1,135 1,244 1,179' 1,234' 1,199 1,148 1,276 1,262 1,565 33 Mexico 21,212 17,899 17,415 18,014' 17,961' 17,385 17,476 17,582 16,947 17,277 34 Panama 3,584 3,387 2,933 3,158 2,872 3,086 3,190 3,199 3,212 3,447 35 Peru 3,275 2,529 2,807 2,773' 2,535' 2,570' 2,516 2,422 2,440 2,441 36 Uruguay 1,126 801 673 367 366 398 410 453 459 492 37 Venezuela 3,089 3,494 3,518 3,154 3,109 2,982 2,913 3,417 3,225 3,222 38 Other Latin America6 4,670 5,023 5,065 3,497' 3,644' 3,071 3,137 3,168 3,196 3,192 39 Caribbean 262,678 281,128 319,410 333,138' 324,718' 322,561' 317,635 326,668 334,309 357,467 40 Bahamas 96,455 99,066 114,090 112,424 112,802 105,772 100,133 99,046 114,763 124,583 41 Bermuda 5,011 8,007 9,260 6,781 5,507 5,802 7,236 6,803 6,974 11,408 4? 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. 200,022 195,790 200,151' 198,918 204,760 198,079 208,899 44 Cuba 0 0 0 1 n.a. n.a. n.a. n.a. n.a. n.a. 45 Jamaica 239 295 355 336 396 301 326 367 369 380 46 Netherlands Antilles 6,779 5,982 5,801 9,384 5,738 5,749 5,617 10,228 9,818 7,647 47 Trinidad and Tobago 445 589 608 783 804 946 989 1,086 959 890 48 Other Caribbean6 n.a. n.a. n.a. 3,407' 3,681' 3,840 4,416 4,378 3,347 3,660 49 98,607 75,143 77,829 83,546 81,217 80,927 86,714 77,445 80,734 86,992 China 50 Mainland 1,261 2,110 1,606 3,171 2,252 4,387 3,785 2,191 3,462 4,124 51 Taiwan 1,041 1,390 2,247 2,258 1,985 2,524 2,906 2,780 3,276 4,277 57 Hong Kong 9,080 5,903 6,669 10,462 9,127 9,249 7,488 5,743 6,432 5,156 53 India 1,440 1,738 2,178 1,675 1,648 1,634 1,576 1,622 1,576 1,545 54 Indonesia 1,942 1,776 1,914 2,033 2,015 1,932 2,011 1,975 1,944 1,965 55 Israel 1,166 1,875 2,729 2,526 2,715 2,417 4,483 3,621 3,622 3,981 56 Japan 46,713 28,641 34,974 32,908 34,442 32,338 36,953 34,922 32,349 39,922 57 Korea (South) 8,289 9,426 7,776 13,971 11,673 11,258 12,803 10,701 11,788 10,986 58 Philippines 1,465 1,410 1,784 1,835 1,788 1,831 2,333 1,740 2,151 1,537 59 Thailand 1,807 1,515 1,381 1,062 1,380 1,541 1,119 1,440 1,172 1,471 60 Middle Eastern oil-exporting countries8 16,130 14,267 9,346 7,936 9,926 8,621 8,531 8,267 7,953 8,257 61 Other 8,273 5,092 5,225 3,709 2,266 3,195 2,726 2,443 5,009 3,771 6? Africa 3,122 2,268 2,094 2,035 1,904 2,132 2,038 2,052 1,872 1,841 63 Egypt 257 258 201 308 466 530 391 389 397 345 64 Morocco 372 352 204 185 185 175 173 151 154 150 65 South Africa 643 622 309 444 289 528 608 661 493 449 66 Congo (formerly Zaire) 0 24 0 n.a. n.a. n.a. n.a. 2 n.a. n.a. 67 Oil-exporting countries9 936 276 471 267 197 142 130 128 148 169 68 Other 914 736 909 831 767 757 736 721 680 728 69 Other countries 6,637 7,105 6,117 6,711 5,529 4,449 5,602 5,183 4,902 5,684 70 Australia 6,173 6,824 5,868 6,261 5,215 4,121 5,143 4,807 3,982 5,350 71 New Zealand10 n.a. n.a. n.a. 269 136 279 360 264 329 275 72 All other 464 281 249 181 178 49 99 112 591 59 73 Nonmonetary international and regional organizations" .. 3,617 4,563 4,686 2,755 4,535 4,848 4,854 4,551 4,476 4,904 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 • February 2002 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 Apr. Mayr June' July' Aug.' Sept.' Oct.1' 1 Total 875,891 944,937 l,095,924r 1,181,701 1,133,186 2 Banks' claims 734,995 793,139 904,697 990,194R 996,741 990,763 975,363 948,839 958,006 993,758 3 Foreign public borrowers 23,542 35,090 37,907 52,357 49,533 52,193 55,762 47,156 45,777 49,252 4 Own foreign offices2 484,535 529,682 630,137 683,103R 709,123 686,065 660,538 652,434 658,644 679,716 5 Unaffiliated foreign banks 106,206 97,186 95,277 95,291R 79,976 91,486 94,632 84,584 92,216 92,467 6 Deposits 27,230 34,538 23,886 21,533 19,717 20,155 24,399 15,590 19,803 22,577 7 Other 78,976 62,648 71,391 73,758R 60,259 71,331 70,233 68,994 72,413 69,890 8 All other foreigners 120,712 131,181 141,376 159,443' 158,109 161,019 164,431 164,665 161,369 172,323 9 Claims of banks' domestic customers' 140,896 151,798 191,227R 190,938 175,180 10 Deposits 79,363 88,006 100,352R 93,656 89,478 11 Negotiable and readily transferable instruments4 47,914 51,161 78,147 81,034 75,868 12 Outstanding collections and other claims 13,619 12,631 12,728 16,248 9,834 MEMO 13 Customer liability on acceptances 4,520 4,553 4,257R 3,054 2,468 14 Banks' loans under resale agreements5 n.a. n.a. n.a. 126,871 116,938 129,693 131,731 117,224 111,844 144,250 15 Dollar deposits in banks abroad, reported by nonbanking business enterprises in the United States6 39,978 31,125 53,153 60,796 58,137 66,155 60,152 60,299 54,932 57,698 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 Dec. Mar.' June' Sept." 1 Total 276,550 250,418 267,082 274,009r 307,613 302,109 298,548 By borrower 2 Maturity of one year or less 205,781 186,526 187,894 186,103' 195,032 191,827 180,117 3 Foreign public borrowers 12,081 13,671 22,811 21,399 23,741 26,656 20,259 4 All other foreigners 193,700 172,855 165,083 164,704' 171,291 165,171 159,858 5 Maturity of more than one year 70,769 63,892 79,188 87,906 112,581 110,282 118,431 6 Foreign public borrowers 8,499 9,839 12,013 15,838 24,951 24,978 24,863 7 All other foreigners 62,270 54,053 67,175 72,068 87,630 85,304 93,568 By area Maturity of one year or less X Europe 58,294 68,679 80,842 142,464' 89,553 80,682 71,271 9 Canada 9,917 10,968 7,859 8,323 7,065 8,639 7,890 10 Latin America and Caribbean 97,207 81,766 69,498 151,840' 72,316 72,922 75,927 11 Asia 33,964 18,007 21,802 43,371' 20,730 24,124 20,049 12 Africa 2,211 1,835 1,122 2,263 970 971 831 13 All other3 4,188 5,271 6,771 11,717 4,398 4,489 4,149 Maturity of more than one year 14 Europe 13,240 14,923 22,951 57,770 38,259 39,944 41,171 15 Canada 2,525 3,140 3,192 3,174 3,252 3,995 4,250 16 Latin America and Caribbean 42,049 33,442 39,051 82,684 50,111 47,028 51,859 17 Asia 10,235 10,018 11,257 19,536 17,187 15,240 16,822 18 Africa 1,236 1,232 1,065 1,567 763 774 692 19 All other3 1,484 1,137 1,672 5,954 3,009 3,301 3,637 1. Reporting banks include all types of depository institutions as well as some brokers and 2. Maturity is time remaining until maturity, dealers. 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Bank-Reported Data A57 3.21 CLAIMS ON FOREIGN COUNTRIES Held by U.S. and Foreign Offices of U.S. Banks1 Billions of dollars, end of period 1999 2000 2001 AArreeaa oorr ccoouunnttrryy 11999977 11999988 Sept. Dec. Mar. June Sept. Dec. Mar. June Sept.P 1 Total 721.8 1,051.6 941.6 945.5 955.0 991.0 954.4 1,027.3 1,140.9 l,136.2r 1,278.8 7 G-10 countries and Switzerland 242.8 217.7 219.4 243.4 272.4 313.6 280.3 300.7 333.0 335.0 296.8 3 Belgium and Luxembourg 11.0 10.7 15.7 14.3 14.2 13.9 13.0 14.2 15.3 13.0 14.3 4 France 15.4 18.4 20.0 29.0 27.1 32.6 29.0 29.6 30.0 35.9 34.4 .5 Germany 28.6 30.9 37.4 38.7 37.3 31.5 37.6 45.1 45.2 51.6 41.1 6 Italy 15.5 11.5 15.0 18.1 19.9 20.5 18.6 21.3 20.4 23.7 22.8 7 Netherlands 6.2 7.8 11.7 12.3 17.0 16.0 17.5 18.4 18.8 15.3 16.8 8 Sweden 3.3 2.3 3.6 3.0 3.9 3.5 4.3 3.6 4.7 4.7 5.3 9 Switzerland 7.2 8.5 8.8 10.3 10.1 13.8 10.9 13.2 13.9 13.5 13.0 10 United Kingdom 113.4 85.4 63.5 79.3 101.9 138.2 112.8 115.6 141.3 127.5 100.9 11 Canada 13.7 16.8 17.9 16.3 17.3 18.2 18.5 16.7 15.4 21.4 21.4 12 Japan 28.6 25.4 25.7 22.1 23.5 25.4 18.1 23.0 28.0 28.3 26.8 13 Other industrialized countries 65.5 69.0 71.7 68.4 62.7 75.3 73.7 74.5 75.7 70.2r 69.4 14 Austria 1.5 1.4 3.0 3.5 2.6 2.8 3.5 4.1 3.8 3.6 4.4 15 Denmark 2.4 2.2 2.1 2.6 1.5 1.2 1.8 1.9 3.1 2.7 2.6 16 Finland 1.3 1.4 .9 .9 .8 1.2 2.8 1.5 1.4 1.2 1.3 17 Greece 5.1 5.9 6.6 6.0 5.7 6.7 6.4 8.3 4.1 3.6 3.6 18 Norway 3.6 3.2 3.8 3.3 3.0 4.6 8.5 8.3 10.2 7.9 6.1 19 Portugal .9 1.4 1.2 1.0 1.0 2.0 1.5 2.0 1.9 1.4 1.4 2.0 Spain 12.6 13.7 15.1 12.1 11.3 12.2 10.5 10.3 12.6 12.4 13.2 21 Turkey 4.5 4.8 4.7 4.8 5.1 5.6 5.6 5.9 5.1 4.5 4.1 22 Other Western Europe 8.3 10.4 9.2 6.8 8.4 7.9 8.3 6.5 7.3 6.9 6.8 73 South Africa 2.2 4.4 4.0 3.8 4.8 4.6 4.2 3.6 4.1 3.8 4.4 24 Australia 23.1 20.3 21.1 23.5 18.6 26.3 20.5 22.1 21.9 22.1 21.6 75 OPEC2 26.0 27.1 30.1 31.4 28.9 32.1 31.4 28.9 28.2 27.0 27.5 26 Ecuador 1.3 1.3 .9 .8 .7 .7 .6 .6 .6 .6 .6 77 Venezuela 2.5 3.2 3.0 2.8 3.0 2.9 2.9 2.5 2.7 2.6 2.6 78 Indonesia 6.7 4.7 4.4 4.2 3.9 4.1 4.4 4.6 4.4 4.1 3.9 29 Middle East countries 14.4 17.0 21.4 23.1 21.1 23.8 22.4 20.3 20.1 19.3 20.1 30 African countries 1.2 1.0 .5 .5 .2 .7 1.2 .8 .5 .4 .4 31 Non-OPEC developing countries 139.2 143.4 144.6 149.4 154.6 158.1 149.5 145.5 144.5r 152.6 195.5 Latin America 32 Argentina 18.4 23.1 22.8 23.2 22.4 21.6 21.4 21.4 20.9r 19.7 19.2 33 Brazil 28.6 24.7 23.5 27.7 28.1 28.3 28.5 28.8 29.3 30.8 30.9 34 Chile 8.7 8.3 7.7 7.4 8.2 8.1 7.3 7.6 7.3 7.0 6.4 35 Colombia 3.4 3.2 2.7 2.5 2.5 2.4 2.4 2.4 2.4 2.4 2.5 36 Mexico 17.4 18.9 19.4 18.7 18.3 20.4 17.5 15.7 16.7 16.3 58.3 37 Peru 2.0 2.2 1.8 1.7 1.9 2.1 2.1 2.0 2.0 2.0 1.9 38 Other 4.1 5.4 5.5 5.9 6.5 6.7 6.2 6.3 8.5 8.2 8.0 Asia China 39 Mainland 3.2 3.0 3.3 3.6 4.6 3.8 3.4 2.9 3.4 6.8 6.1 40 Taiwan 9.5 13.3 12.3 12.0 12.6 12.6 12.8 10.8 11.1 10.7 10.8 41 India 4.9 5.5 7.0 7.7 7.9 8.2 5.8 9.1 6.5 11.8 14.1 47 Israel .7 1.1 1.0 1.8 3.3 1.5 1.1 2.7 2.2 2.0 3.2 43 Korea (South) 15.6 13.7 16.0 15.2 17.7 21.7 21.4 15.5 19.8 19.2 19.4 44 Malaysia 5.1 5.6 6.1 6.1 6.5 6.8 6.9 7.1 6.5 6.7 6.1 45 Philippines 5.7 5.1 5.8 6.2 5.3 5.3 4.7 5.1 5.2 5.4 5.3 46 Thailand 5.4 4.7 4.0 4.1 4.3 4.0 3.9 4.0 4.2 4.2 3.9 47 Other Asia 4.3 2.9 2.9 2.9 2.0 1.9 1.7 1.9 1.7 1.8 1.6 Africa 48 Egypt .9 1.3 1.3 1.4 1.4 1.3 1.1 1.1 1.2 1.2 1.4 49 Morocco .6 .5 .5 .4 .3 .3 .4 .3 .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 .9 .9 .8 .7 .7 .7 .7 57 Eastern Europe 9.1 5.5 5.4 5.2 6.3 9.4 9.0 10.1 9.5 9.5 9.8 53 Russia4 5.1 2.2 2.0 1.6 1.7 1.5 1.4 1.0 1.5 1.5 1.4 54 Other 4.0 3.3 3.4 3.6 4.7 7.9 7.6 9.1 8.0 8.0 8.5 55 Offshore banking centers 155.1 134.4 122.5 114.5 53.9 55.5 53.5 61.7 57.9 46.2 51.0 56 Bahamas 24.2 35.4 18.2 13.7 14.4 8.8 9.3 13.5 7.0 .0 1.0 57 Bermuda 9.8 4.6 8.2 8.0 7.3 6.3 6.3 9.0 7.9 5.7 7.6 58 Cayman Islands and other British West Indies 43.4 12.8 6.3 1.3 .0 5.1 5.9 14.6 14.3 12.6 20.7 59 Netherlands Antilles 14.6 2.6 9.1 1.7 2.5 2.6 1.9 1.9 2.9 1.7 5.8 60 Panama5 3.1 3.9 3.9 3.9 3.4 3.3 2.5 3.2 3.8 3.4 3.4 61 Lebanon .1 .1 .2 .1 .1 .1 .1 .1 .1 .1 .1 62 Hong Kong, China 32.2 23.3 22.4 21.0 22.2 20.7 20.6 18.7 21.7 22.4 17.9 63 Singapore 12.7 11.1 10.6 10.1 4.1 13.6 12.6 15.2 14.5 12.9 15.2 64 Other .1 .2 .2 .1 .1 .1 .1 .2 .1 .1 .0 65 Miscellaneous and unallocated7 99.1 495.1 391.2 387.9 376.1 342.1 351.1 391.2 472.4 478.4 603.4 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 • February 2002 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.r June 1 Total 57,382 46,570 53,044 53,489 70,534 76,644 73,904 73,805 68,501 2 Payable in dollars 41,543 36,668 37,605 35,614 47,864 51,451 48,931 46,676 42,207 3 Payable in foreign currencies 15,839 9,902 15,415 17,875 22,670 25,193 24,973 27,129 26,294 By type 4 Financial liabilities 26,877 19,255 27,980 29,180 44,068 49,895 47,419 47,958 42,296 5 Payable in dollars 12,630 10,371 13,883 12,858 22,803 26,159 25,246 23,351 18,043 6 Payable in foreign currencies 14,247 8,884 14,097 16,322 21,265 23,736 22,173 24,607 24,253 7 Commercial liabilities 30,505 27,315 25,064 24,309 26,466 26,749 26,485 25,847 26,205 8 Trade payables 10,904 10,978 12,857 12,401 13,764 13,918 14,293 12,481 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 23,325 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 37,572 3333,,117733 13 Belgium and Luxembourg 186 79 31 4 163 169 147 112 9988 14 France 1,425 1,097 1,659 1,849 1,702 1,299 1,480 1,553 1,222 15 Germany 1,958 2,063 1,974 1,880 1,671 2,132 2,168 2,624 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 97 137 178 104 103 93 18 United Kingdom 11,667 5,980 16,521 16,579 21,463 28,601 26,362 28,962 25,751 19 Canada 2,374 693 284 313 714 249 411 718 628 20 Latin America and Caribbean 1,386 1,495 892 846 2,874 3,447 4,125 3,632 2,100 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 1,657 1,508 25 Mexico 26 59 25 22 26 35 26 31 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 5,324 5,639 28 Japan 4,102 3,612 3,142 2,985 6,024 4,782 6,216 4,757 33,,229977 29 Middle Eastern oil-exporting countries' 27 0 4 4 5 7 11 15 88 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 8,792 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 3/ Netherlands 439 429 507 648 562 424 300 349 343 38 Switzerland 375 499 626 536 565 647 502 623 697 39 United Kingdom 4,086 3,697 3,071 2,661 2,982 2,951 2,847 2,542 2,706 40 Canada 1,175 1,390 1,775 2,024 2,053 1,889 1,933 1,625 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 4b 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 11,542 11,384 49 Japan 4,500 3,827 2,609 2,274 2,200 1,998 2,757 2,431 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.' June 1 Total 68,128 77,462 76,669 84,266 80,731 94,803 90,157 107,705 98,023r 2 Payable in dollars 62,173 72,171 69,170 74,331 72,300 82,872 79,558 94,932 88,243' 3 Payable in foreign currencies 5,955 5,291 7,472 9,935 8,431 11,931 10,599 12,773 9,780 By type 4 Financial claims 36,959 46,260 40,231 47,798 44,303 58,303 53,031 74,255 61,907' 5 Deposits 22,909 30,199 18,566 23,316 17,462 30,928 23,374 25,419 25,381' 6 Payable in dollars 21,060 28,549 16,373 21,442 15,361 27,974 21,015 23,244 23,174' 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 48,836 36,526' 9 Payable in dollars 11,806 14,049 18,593 19,659 22,384 20,541 25,142 41,417 32,054' 10 Payable in foreign currencies 2,244 2,012 3,072 4,823 4,457 6,834 4,515 7,419 4,472 11 Commercial claims 31,169 31,202 36,438 36,468 36,428 36,500 37,126 33,450 36,116' 12 Trade receivables 27,536 27,202 32,629 31,443 31,283 31,530 33,104 28,958 31,168' 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 30,271 33,015' 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 31,855 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 3,142 1,376 19 Germany 427 304 504 669 576 696 848 1,401 1,163 20 Netherlands 677 875 1,229 1,981 1,984 2,486 1,396 2,313 1,072 21 Switzerland 434 414 643 612 624 626 699 613 653 22 United Kingdom 10,337 7,766 7,561 9,044 11,668 16,191 15,900 20,938 15,913 23 Canada 3,313 2,503 2,553 3,175 5,799 7,517 4,576 4,847 4,787 24 Latin America and Caribbean 15,543 27,714 18,206 21,945 14,874 21,691 19,317 28,791 24,419' 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 1,648 1,877 28 British West Indies 10,462 24,388 12,099 15,814 7,751 15,722 12,596 21,227 16,515' 29 Mexico 537 1,245 1,798 1,979 2,048 2,280 2,448 2,461 2,633 30 Venezuela 36 55 48 65 78 101 87 38 66 31 Asia 2,133 3,027 5,457 4,430 3,923 4,002 4,697 7,215 6,829 32 Japan 823 1,194 3,262 2,021 1,410 1,726 1,631 3,867 1,698 33 Middle Eastern oil-exporting countries 11 9 23 29 42 85 80 86 76 34 Africa 319 159 286 232 320 284 411 430 476 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 13,775 14,602' 37 Europe 328 238 316 271 425 393 452 395 408' 38 Belgium and Luxembourg 1,796 2,171 2,236 2,520 2,693 2,921 3,095 3,479 3,194' 39 France 1,614 1,822 1,960 2,034 1,905 2,159 1,982 1,586 1,995' 40 Germany 597 467 1,429 1,337 1,242 1,310 1,729 757 864' 41 Netherlands 554 483 610 611 562 684 763 634 472 42 Switzerland 3,660 4,769 5,827 5,354 4,937 5,193 4,502 3,562 3,826' 43 United Kingdom 44 Canada 2,660 2,617 2,757 3,088 3,250 2,953 3,502 3,392 3,498' 45 Latin America and Caribbean 5,750 6,296 5,959 5,899 5,792 5,788 5,851 5,144 6,127' 46 Bahamas 27 24 20 15 48 75 37 20 39 47 Bermuda 244 536 390 404 381 387 376 407 650 48 Brazil 1,162 1,024 905 849 894 981 957 975 1,377' 49 British West Indies 109 104 181 95 51 55 137 130 135 50 Mexico 1,392 1,545 1,678 1,529 1,565 1,612 1,507 1,350 1,421' 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 8,985 9,707' 53 Japan 1,976 1,681 2,074 2,082 1,881 2,074 2,796 2,560 3,157' 54 Middle Eastern oil-exporting countries 1,107 1,135 1,625 1,533 1,241 1,199 1,024 966 1,054 55 Africa 680 711 631 716 766 895 672 773 673' 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 1,381 1,509' 1. Comprises Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab 2. Comprises Algeria, Gabon, Libya, and Nigeria. Emirates (Trucial States). 3. Includes nonmonetary international and regional organizations. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A60 International Statistics • February 2002 3.24 FOREIGN TRANSACTIONS IN SECURITIES Millions of dollars 2001 2001 TTrraannssaaccttiioonn,, aanndd aarreeaa oorr ccoouunnttrryy 11999999 22000000 J O an ct . . - Apr. May June July Aug.' Sept.' Oct.P U.S. corporate securities STOCKS 1 Foreign purchases 2,340,659 3,605,196 2,565,480 249,747 276,934 259,635 244,897 241,950 193,478 255,685 2 Foreign sales 2,233,137 3,430,306 2,475,617 243,122 259,604 249,196 233,422 234,337 204,994 248,438 3 Net purchases, or sales (-) 107,522 174,890 89,863 6,625 17,330 10,439 11,475 7,613 -11,516 7,247 4 Foreign countries 107,578 174,903 89,688 6,647 17,315 10,418 11,460 7,614 -11,505 7,224 5 Europe 98,060 164,656 72,948 3,694 9,805 9,307 6,704 9,258 -7,316 7,471 6 France 3,813 5,727 6,674 105 338 3,044 35 635 -2,605 1,969 7 Germany 13,410 31,752 7,072 199 1,025 133 1,048 489 -418 825 8 Netherlands 8,083 4,915 8,526 1,112 573 334 654 568 358 552 9 Switzerland 5,650 11,960 2,262 139 448 298 -228 -140 -688 351 10 United Kingdom 42,902 58,736 33,294 598 4,501 4,006 3,750 6,238 -575 3,312 11 Channel Islands and Isle of Man1 n.a. n.a. -514 -144 59 -168 -42 32 -73 -23 12 Canada -335 5,956 8,779 1,567 628 130 948 -246 1,137 193 13 Latin America and Caribbean 5,187 -17,812 -11,051 -1,168 3,436 -1,038 65 -3,062 -4,119 -1,507 14 Middle East2 -1,066 9,189 1,652 -56 -173 234 513 830 668 -514 15 Other Asia 4,445 12,494 18,307 2,966 3,532 1,724 3,220 614 -879 1,551 16 Japan 5,723 2,070 6,302 2,048 1,088 1,000 1,956 51 -806 1,148 17 372 415 -350 -44 9 -82 -20 72 -37 -31 18 Other countries 915 5 -597 -312 78 143 30 148 -299 61 19 Nonmonetary international and regional organizations -56 -11 175 -22 15 21 15 -1 -11 23 BONDS3 20 Foreign purchases 854,692 1,208,386 1,577,707 148,930 169,528 158,157 138,841 157,635 156,454 192,441 21 Foreign sales 602,100 871,416 1,237,232 111,505 129,146 125,693 111,998 132,936 137,718 144,773 22 Net purchases, or sales (-) 252,592 336,970 340,475 37,425 40,382 32,464 26,843 24,699 18,736 47,668 23 Foreign countries 252,994 337,074 340,184 37,399 40,370 32,445 26,951 24,501 18,581 47,840 24 Europe 140,674 180,917 178,664 18,169 26,116 14,740 11,904 9,625 9,788 22,352 2b France 1,870 2,216 4,428 519 817 618 1,154 -1,035 -573 601 26 Germany 7,723 4,067 10,373 1,639 1,500 114 -185 472 454 1,666 27 Netherlands 2,446 1,130 2,329 -41 509 576 -210 -297 457 83 28 Switzerland 4,553 3,973 5,229 709 399 294 291 628 -51 292 29 United Kingdom 106,344 141,223 141,360 12,477 21,489 12,575 9,507 8,759 9,801 17,261 30 Channel Islands and Isle of Man1 n.a. n.a. 1,527 318 -218 330 203 106 93 355 31 Canada 6,043 13,287 3,676 1,158 240 822 485 -1,434 -646 1,335 32 Latin America and Caribbean 58,783 59,444 63,613 7,546 9,167 7,387 6,222 8,961 22,,551188 2,270 33 Middle East1 1,979 2,076 1,451 129 -395 -24 -345 -22 88 307 34 Other Asia 42,817 78,794 92,498 10,329 5,412 9,646 8,815 7,569 7,281 21,043 35 Japan 17,541 39,356 33,805 344 -480 5,187 3,452 1,641 1,066 15,243 36 1,411 938 735 -33 14 160 79 136 -6 272 37 Other countries 1,287 1,618 -453 101 -184 -286 -209 -334 -362 261 38 Nonmonetary international and regional organizations —402 -70 292 26 12 19 -108 198 155 -172 Foreign securities 39 Stocks, net purchases, or sales (-) 15,640 -13,088 -46,366 -4,675 -8,098 -5,292 -5,031 -1,780 4,239 -3,172 40 Foreign purchases 1,177,303 1,802,185 1,209,935 121,345 136,046 122,243 115,956 96,370 101,518 105,817 41 Foreign sales 1,161,663 1,815,273 1,256,301 126,020 144,144 127,535 120,987 98,150 97,279 108,989 42 Bonds, net purchases, or sales (-) -5,676 -4,054 31,501 5,487 2,267 1,048 5,629 9,405 10,319 -677 43 Foreign purchases 798,267 958,932 991,664 93,828 101,383 101,950 91,585 87,584 87,076 93,404 44 Foreign sales 803,943 962,986 960,163 88,341 99,116 100,902 85,956 78,179 76,757 94,081 45 Net purchases, or sales (-), of stocks and bonds 9,964 -17,142 -14,865 812 -5,831 -4,244 598 7,625 14,558 -3,849 46 Foreign countries 9,679 -17,278 -14,351 824 -5,976 -4,241 630 7,485 14,560 -3,655 47 Europe 59,247 -25,386 -9,186 3,616 -4,803 3,392 1,026 6,532 6,033 -4,085 48 Canada -999 -3,888 2,011 -1,535 931 405 299 -1,778 1,295 -804 49 Latin America and Caribbean -4,726 -15,688 1,678 1,295 3,047 -6,662 -444 759 2,658 -575 50 -42,961 24,488 -6,071 -1,928 -4,379 -485 69 1,601 4,403 2,462 51 Japan -43,637 20,970 -11,466 -3,494 -3,670 -44 118 596 1,477 1,447 52 710 943 -881 93 -132 -47 -111 -24 -34 -565 53 Other countries -1,592 2,253 -1,902 -717 -640 -844 -209 395 205 -88 54 Nonmonetary international and regional organizations 285 150 -513 -12 145 -3 -32 140 -2 -194 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 Transactions1 Millions of dollars; net purchases, or sales (-) during period 2001 2001 AArreeaa oorr ccoouunnttrryy 11999999 22000000 Jan- Apr. May June July Aug. Sept. Oct.? Oct. 1 Total estimated -9,953 -54,032 -4,664 -13,711 3,076 -3,445 -11,494 4,410 -l,922r 14,969 2 Foreign countries -10,518 -53,571 -4,238 -13,517 2,831 -3,237 -11,668 4,590 -2,070r 14,884 3 Europe -38,228 -50,704 -14,860 -5,599 -498 -2,522 -8,223 321 -704r 2,339 4 Belgium2 -81 73 -791 240 -216 -25 -343 42 174 -146 Germany 2,285 -7,304 -2,797 1,769 1,176 -1,517 -970 67 -113 -392 6 Luxembourg2 n.a. n.a. 501 204 92 145 168 -64 -348 285 7 Netherlands 2,122 2,140 -5,079 -2,488 -1,730 1,117 1,263 2,437 -2,653 -1,336 8 Sweden 1,699 1,082 -1,261 195 -386 -663 -114 593 1,037 -109 9 Switzerland -1,761 -10,326 863 116 -912 -3 270 -44 979 -339 10 United Kingdom -20,232 -33,669 -1,741 -4,736 1,120 -3,180 -7,844 -4,610 2,070' 7,359 11 Channel Islands and Isle of Man3 n.a. n.a. -50 -31 -9 22 -64 11 -1 -34 1? Other Europe and former U.S.S.R -22,260 -2,700 -4,505 -868 367 1,582 -589 1,889 -1,849 -2,949 13 Canada 7,348 -550 -6,683 1,248 745 161 -1,653 -356 -947 -3,091 14 Latin America and Caribbean -7,523 -4,914 5,148 -7,095 140 -3,812 1,893 3,711 -541 3,998 15 Venezuela 362 1,288 184 -148 51 -126 248 -128 39 -129 16 Other Latin America and Caribbean 1,661 -11,581 11,091 -3,228 1,587 -545 -880 67 -524 4,065 17 Netherlands Antilles -9,546 5,379 -6,127 -3,719 -1,498 -3,141 2,525 3,772 -56 62 18 Asia 29,359 1,639 11,707 -2,928 2,704 3,464 -3,940 576 -160 11,755 19 Japan 20,102 10,580 11,648 3,099 4,658 -3,920 -2,126 324 -3,339 16,640 20 Africa -3,021 -414 -640 27 -6 -12 -65 -120 47 -396 21 Other 1,547 1,372 1,090 830 -254 -516 320 458 235 279 22 Nonmonetary international and regional organizations 565 —461 -426 -194 245 -208 174 -180 148 85 23 International 190 -483 -396 -213 393 -52 -90 103 -65 8 24 Latin American Caribbean regional 666 76 23 25 -4 -2 -1 -3 0 1 MEMO 7*5 Foreign countries -10,518 -53,571 -4,238 -13,517 2,831 -3,237 -11,668 4,590 -2,070' 14,884 76 Official institutions -9,861 -6,302 -3,838 -9,040 913 -3,243 -741 343 2,549 2,239 27 Other foreign -657 -47,269 -400 -4,477 1,918 6 -10,927 4,247 -4,619' 12,645 Oil-exporting countries 78 Middle Easr 2,207 3,483 -3,794 -383 -120 316 -590 -308 -586 12 29 Africa5 0 0 -2 0 1 3 2 -2 -2 0 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 International Statistics • February 2002 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 July Aug. Sept. Oct. Nov. Dec. Exchange rates COUNTRY/CURRENCY UNIT 1 Australia/dollar2 64.54 58.15 51.69 50.89 52.46 50.36 50.42 51.65 51.38 2 Austria/schilling n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 3 Belgium/franc n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 4 Brazil/real 1.8207 1.8301 2.3527 2.4731 2.5122 2.6767 2.7408 2.5481 2.3635 5 Canada/dollar 1.4858 1.4855 1.5487 1.5308 1.5399 1.5679 1.5717 1.5922 1.5788 6 China, P.R./yuan 8.2783 8.2784 8.2770 8.2769 8.2770 8.2768 8.2768 8.2769 8.2761 7 Denmark/krone 6.9900 8.0953 8.3323 8.6442 8.2632 8.1654 8.2186 8.3832 8.3526 8 European Monetary Union/euro3 1.0653 0.9232 0.8952 0.8615 0.9014 0.9114 0.9050 0.8883 0.8912 9 Finland/markka n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 France/franc n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 11 Germany/deutsche mark n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 Greece/drachma 306.30 365.92 n.a. n.a. n.a. n.a. n.a. n.a. n.a. 13 Hong Kong/dollar 7.7594 7.7924 7.7997 7.7999 7.7997 7.7997 7.7999 7.7996 7.7989 14 India/rupee 43.13 45.00 47.22 47.18 47.17 47.75 48.05 48.04 47.93 15 Ireland/pound2 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 16 Italy/lira n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 17 Japan/yen 113.73 107.80 121.57 124.50 121.37 118.61 121.45 122.41 127.59 18 Malaysia/ringgit 3.8000 3.8000 3.8000 3.8000 3.8000 3.8000 3.8001 3.8000 3.8000 19 Mexico/peso 9.553 9.459 9.337 9.168 9.133 9.425 9.339 9.225 9.157 20 Netherlands/guilder n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 21 New Zealand/dollar2 52.94 45.68 42.02 40.81 43.14 41.73 41.39 41.58 41.57 22 Norway/krone 7.8071 8.8131 8.9964 9.2566 8.9427 8.7691 8.8329 8.9296 8.9713 23 Portugal/escudo n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 24 Singapore/dollar 1.6951 1.7250 1.7930 1.8233 1.7613 1.7494 1.8113 1.8295 1.8382 25 South Africa/rand 6.1191 6.9468 8.6093 8.2094 8.3115 8.6756 9.2804 9.7388 11.6761 26 South Korea/won 1,189.84 1,130.90 1,292.01 1,305.24 1,285.65 1,293.83 1,302.36 1,282.10 1,292.29 27 Spain/peseta n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 28 Sri Lanka/rupee 70.868 76.964 89.602 90.314 89.994 90.157 90.954 92.670 93.194 29 Sweden/krona 8.2740 9.1735 10.3425 10.7603 10.3329 10.6353 10.5661 10.6117 10.5753 30 Switzerland/franc 1.5045 1.6904 1.6891 1.7570 1.6808 1.6338 1.6357 1.6509 1.6566 31 Taiwan/dollar 32.322 31.260 33.824 34.821 34.639 34.575 34.583 34.498 34.682 32 Thailand/baht 37.887 40.210 44.532 45.641 44.907 44.331 44.750 44.411 43.952 33 United Kingdom/pound2 161.72 151.56 143.96 141.48 143.72 146.38 145.01 143.56 144.13 34 Venezuela/bolivar 606.82 680.52 724.10 722.72 731.97 743.46 743.22 745.10 753.64 Indexes4 NOMINAL 35 Broad (January 1997-100)5 116.87 119.67 126.09 127.65' 125.62' 125.97' 126.86' 127.33' 127.52 36 Major currencies (March 1973=100)® 94.07 98.32 104.32 106.11' 103.84' 103.40' 104.37' 105.64' 106.30 37 Other important trading partners (January 1997=100)7 129.94 130.33 136.34 137.2a 135.95' 137.49' 138.08' 137.19' 136.62 REAL 38 Broad (March 1973-100)5 99.37 102.85 108.88 110.41' 108.49' 108.97' 109.26' 109.65' 109.82 39 Major currencies (March 1973-100)6 97.07 103.18 110.78 112.62' 110.07' 109.94' 110.84' 112.53' 113.39 40 Other important trading partners (March 1973—100)7 109.61 109.88 114.34 114.32' 115.58' 115.13' 113.94' 113.30 1. Averages of certified noon buying rates in New York for cable transfers. Data in this 4. Starting with the February 2002 Bulletin, revised index values resulting from the table also appear in the Board's G.5 (405) monthly statistical release. For ordering address, periodic revision of data that underlie the calculated trade weights are reported. For more see inside front cover. information on the indexes of the foreign exchange value of the dollar, see Federal Reserve 2. U.S. cents per currency unit. Bulletin, vol. 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 1,936.27 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

63 Guide to Special Tables and Statistical Releases SPECIAL TABLES—Data Published Irregularly, with Latest Bulletin Reference Title and Date Issue Page Assets and liabilities of commercial banks December 31, 2000 May 2001 A64 March 31, 2001 August 2001 A64 June 30, 2001 November 2001 A64 September 30, 2001 February 2002 A64 Terms of lending at commercial banks February 2001 May 2001 A66 May 2001 August 2001 A66 August 2001 November 2001 A66 November 2001 February 2002 A66 Assets and liabilities of U.S. branches and agencies of foreign banks September 30, 2000 February 2001 A72 December 31,2000 May 2001 A72 March 31, 2001 August 2001 A72 June 30, 2001 February 2002 A72 Pro forma financial statements for Federal Reserve priced services March 31,2001 August 2001 A76 June 30,2001 October 2001 A64 September 30,2001 January 2002 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 STATISTICAL RELEASES—A List of Statistical Releases Published by the Federal Reserve Is Printed Semiannually in the Bulletin Issue Page Schedule of anticipated release dates for periodic releases December 2001 A72 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A64 Special Tables • February 2002 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities Consolidated Report of Condition, September 30, 2001 Millions of dollars except as noted Banks with Banks with foreign offices' domestic Domestic offices only2 IItteemm TToottaall total Total Domestic Total 1 6,472,303 5,703,669 4,398,796 3,630,162 2,073,507 2 Cash and balances due from depository institutions 390,901 256,274 298,543 163,916 92,358 3 Cash items in process of collection, unposted debits, and currency and coin n.a. n.a. 115,441 112,970 n.a. 4 Cash items in process of collection and unposted debits n.a. n.a. n.a. 91,485 n.a. 5 n.a. n.a. n.a. 21,485 n.a. 6 Balances due from depository institutions in the United States n.a. n.a. 41,431 27,194 n.a. 7 Balances due from banks in foreign countries and foreign central banks n.a. n.a. 122,792 4,972 n.a. 8 Balances due from Federal Reserve Banks n.a. n.a. 18,879 18,780 n.a. 9 Total securities, held-to-maturity (amortized cost) and available-for-sale (fair value) 1,087,437 n.a. 613,898 n.a. 473,539 10 US. Treasury securities 46,786 n.a. 25,587 n.a. 21,199 11 U.S. government agency and corporation obligations (excludes mortgage-backed 117766,,998899 n.a. 6633,,116699 n.a. 111133,,882211 12 Issued by U.S. government agencies 4,126 n.a. 1,625 n.a. 2,501 13 Issued by U.S. government-sponsored agencies 172,864 n.a. 61,544 n.a. 111,320 14 Securities issued by states and political subdivisions in the United States 95,359 n.a. 32,539 n.a. 62,820 15 550,765 n.a. 370,151 n.a. 180,614 16 Pass-through securities 359,849 n.a. 261,346 n.a. 98,503 17 93,880 n.a. 61,261 n.a. 32,619 18 Issued by FNMA and FHLMC 259,379 n.a. 194,867 n.a. 64,512 19 6,591 n.a. 5,218 n.a. 1,372 20 Other mortgage-backed securities (includes CMOs, REMICs, and stripped MBS) 190,916 n.a. 108,804 n.a. 82,112 21 Issued or guaranteed by FNMA, FHLMC or GNMA 132,793 n.a. 78,653 n.a. 54,140 22 Collateralized by MBS issued or guaranteed by FNMA, FHLMC, or GNMA 4,585 n.a. 3,089 n.a. 1,495 23 All other mortgage-backed securities 53,538 n.a. 27,062 n.a. 26,476 24 Asset-backed securities 94,246 n.a. 33,098 n.a. 61,148 25 Credit card receivables 32,614 n.a. 6,976 n.a. 25,638 26 28,773 n.a. 15,423 n.a. 13,350 27 13,873 n.a. 2,754 n.a. 11,119 28 1,129 n.a. 571 n.a. 559 79 Commercial and industrial loans 5,471 n.a. 3,221 n.a. 2,249 30 12,386 n.a. 4,152 n.a. 8,233 31 Other debt securities 104,916 n.a. 77,670 n.a. 27,246 32 36,592 n.a. 13,723 n.a. 22,870 33 68,324 n.a. 63,948 n.a. 4,377 34 Investments in mutual funds and other equity securities with readily determinable 18,376 n.a. 11,684 n.a. 6,691 35 Federal funds sold and securities purchased under agreements to resell 344,197 277,578 260,586 193,967 83,611 36 Total loans and leases (gross) and lease-financing receivables (net) 3,809,027 3,521,949 2,492,991 2,205,913 1,316,036 37 2,590 1,983 1,353 746 1,237 38 146,958 n.a. 120,023 n.a. 26,934 39 Total loans and leases (net of unearned income) 3,659,479 n.a. 2,371,616 n.a. 1,287,864 40 LESS: Allowance for loan and lease losses 67,094 n.a. 44,947 n.a. 22,147 41 Loans and leases, net of unearned income and allowance 3,592,385 n.a. 2,326,668 n.a. 1,265,717 Total loans and leases, gross, by category 42 1,733,363 1,701,977 984,672 995533,,228877 748,691 43 Construction and land development n.a. 188,647 n.a. 96,167 92,481 44 n.a. 35,433 n.a. 7,080 28,353 45 One- to four-family residential properties n.a. 924,386 n.a. 580,246 344,141 46 Revolving, open-end loans, extended under lines of credit n.a. 145,729 n.a. 102,097 43,632 Closed-end loans secured by one- to four-family residential properties 47 n.a. 667722,,223344 n.a. 441144,,114455 225588,,008888 48 n.a. 106,424 n.a. 64,004 42,420 49 Multifamily (five or more) residential properties n.a. 63,283 n.a. 34,437 28,845 50 n.a. 490,227 n.a. 235,357 254,870 51 Loans to depository institutions and acceptances of other banks 114,750 98,156 102,408 85,813 12,343 52 Commercial banks in the United States n.a. n.a. 68,423 67,730 n.a. 53 Other depository institutions in the United States n.a. n.a. 8,959 8,952 n.a. 54 Banks in foreign countries n.a. n.a. 25,026 9,131 n.a. 55 Loans to finance agricultural production and other loans to farmers 47,978 47,155 11,738 10,916 36,240 56 Commercial and industrial loans 1,003,242 846,925 767,491 611,174 235,752 57 n.a. n.a. 618,676 600,834 n.a. 58 n.a. n.a. 148,814 10,340 n.a. 59 Loans to individuals for household, family, and other personal expenditures (includes 581,484 536,188 335,669 229900,,337733 245,815 60 197,445 180,064 107,801 90,420 89,644 61 25,507 23,056 20,659 18,209 4,847 62 Other consumer loans (including single-payment, installment, and all student loans) 358,532 333,068 207,209 181,745 151,323 63 Obligations (other than securities) of states and political subdivisions in the United States (includes nonrated industrial development obligations) 2233,,551122 2233,,449999 1155,,663355 1155,,662211 77,,887777 64 140,622 110,720 129,599 99,697 11,023 65 Loans to foreign governments and official institutions 5,878 2,394 5,865 2,381 14 66 134,743 108,326 123,734 97,317 11,009 67 n.a. n.a. n.a. 21,120 n.a. 68 n.a. n.a. n.a. 76,197 n.a. 69 164,076 157,329 145,779 139,033 18,297 70 351,875 n.a. 343,889 n.a. 7,986 71 Premises and fixed assets (including capitalized leases) 76,462 n.a. 46,160 n.a. 30,301 72 3,664 n.a. 1,835 n.a. 1,828 73 Investments in unconsolidated subsidiaries and associated companies 9,107 n.a. 7,949 n.a. 1,158 74 Customers' liability on acceptances outstanding 5,902 n.a. 5,680 n.a. 221 75 Net due form own foreign offices. Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 35,726 n.a. 76 109,008 n.a. 91,593 n.a. 17,415 77 70,920 n.a. 59,112 n.a. 11,808 78 Other intangible assets 38,088 n.a. 32,481 n.a. 5,607 79 354,409 n.a. 281,971 n.a. 72,438 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A65 4.20 DOMESTIC AND FOREIGN OFFICES Insured Commercial Bank Assets and Liabilities—Continued Consolidated Report of Condition, September 30, 2001 Millions of dollars except as noted Banks with Banks with foreign offices' domestic IItteemm TToottaall DDoo tt mm oott ee aa ss ll tt iicc offices only2 Total Domestic Total 80 Total liabilities, minority interest, and equity capital 6,472,303 n.a. 4,398,796 n.a. 2,073,507 81 Total liabilities 5,889,029 5,120,395 4,016,858 3,248,223 1,872,171 82 Total deposits 4,261,612 3,580,959 2,736,857 2,056,203 1,524,756 83 Individuals, partnerships, and corporations (include all certified and official checks) 3,839,416 3,358,002 2,423,097 1,941,683 1,416,319 84 U.S. government n.a. 13,634 n.a. 12,598 1,036 85 States and political subdivisions in the United States n.a. 155,919 n.a. 65,637 90,282 86 Commercial banks and other depository institutions in the United States 125,724 44,319 109,432 28,027 16,292 87 Banks in foreign countries 93,052 8,208 92,249 7,405 803 88 Foreign governments and official institutions (including foreign central banks) 33,537 877 33,513 853 24 89 Total transaction accounts n.a. 644,244 n.a. 353,938 290,306 90 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 558,477 n.a. 302,549 255,928 91 U.S. government n.a. 1,949 n.a. 1,370 579 92 States and political subidivisions in the United States n.a. 46,680 n.a. 21,082 25,597 93 Commercial banks and other depository institutions in the United States n.a. 29,754 n.a. 21,923 7,831 94 Banks in foreign countries n.a. 6,756 n.a. 6,398 359 95 Foreign governments and official institutions (including foreign central banks) n.a. 627 n.a. 615 12 96 Total demand deposits n.a. 494,232 n.a. 307,310 186,922 97 Total nontransaction accounts n.a. 2,936,716 n.a. 1,702,266 1,234,450 98 Individuals, partnerships, and corporations (include all certified and official checks) n.a. 2,799,525 n.a. 1,639,134 1,160,391 99 U.S. government n.a. 11,685 n.a. 11,228 457 100 States and political subdivisions in the United States n.a. 109,240 n.a. 44,555 64,685 101 Commercial banks and other depository institutions in the United States n.a. 14,565 n.a. 6,105 8,461 102 Banks in foreign countries n.a. 1,452 n.a. 1,008 444 103 Foreign governments and official institutions (including foreign central banks) n.a. 250 n.a. 237 12 104 Federal funds purchased and securities sold under agreements to repurchase 538,773 482,830 430,872 374,929 107,901 105 Trading liabilities 210,672 n.a. 209,969 n.a. 703 106 Other borrowed money (includes mortgage indebtedness and obligations under capitalized leases) 523,148 485,587 337,233 299,672 185,914 107 Banks' liability on acceptances executed and outstanding 6,049 4,086 5,827 3,865 221 108 Subordinated notes and debentures to deposits 91,813 n.a. 82,783 n.a. 9,030 109 Net due to own foreign offices, Edge Act and agreement subsidiaries, and IBFs n.a. n.a. n.a. 140,020 n.a. 110 All other liabilities 256,962 n.a. 213,316 n.a. 43,646 111 Minority interest in consolidated subsidiaries 8,109 n.a. 7,359 n.a. 750 112 Total equity capital 575,165 n.a. 374,579 n.a. 200,586 MEMO 113 Trading assets at large banks2 345,884 191,404 343,860 189,380 2,024 114 U.S. Treasury securities (domestic offices) n.a. 19,681 n.a. 19,663 18 115 U.S. government agency obligations (excluding MBS) n.a. 9,569 n.a. 9,022 547 116 Securities issued by states and political subdivisions in the United States n.a. 1,721 n.a. 1,484 237 117 Mortgage-backed securities n.a. 7,251 n.a. 6,796 455 118 Other debt securities n.a. 41,248 n.a. 41,074 174 119 Other trading assets n.a. 21,309 n.a. 21,198 111 120 Trading assets in foreign offices 82,659 0 82,659 0 0 121 Revaluation gains on interest rate, foreign exchange rate, and other commodity and equity contracts 162,445 90,624 161,964 90,143 481 122 Total individual retirement (IRA) and Keogh plan accounts n.a. 160,369 n.a. 75,522 84,847 123 Total brokered deposits n.a. 219,928 n.a. 100,763 119,165 124 Fully insured brokered deposits n.a. 165,066 n.a. 68,287 96,779 125 Issued in denominations of less than $100,000 n.a. 81,515 n.a. 25,121 56,395 126 Issued in denominations of $100,000, or in denominations greater than $100,000 and participated out by the broker in shares of $100,000 or less n.a. 83,551 n.a. 43,167 40,384 127 Money market deposit accounts (MMDAs) n.a. 1,144,584 n.a. 748,817 395,767 128 Other savings deposits (excluding MMDAs) n.a. 466,432 n.a. 288,185 178,247 129 Total time deposits of less than $100,000 n.a. 761,513 n.a. 346,771 414,742 130 Total time deposits of $100,000 or more n.a. 564,182 n.a. 318,493 245,690 131 Number of banks 8,124 8,124 142 n.a. 7,982 NOTE. The notation "n.a." indicates the lesser detail available from banks that do not have Foreign offices include branches in foreign countries, Puerto Rico, and US.-affiliated foreign offices, the inapplicability of certain items to banks that have only domestic offices, or insular areas; subsidiaries in foreign countries; all offices of Edge Act and agreement the absence of detail on a fully consolidated basis for banks that have foreign offices. corporations wherever located; and international banking facility (IBF). 1. All transactions between domestic and foreign offices of a bank are reported in "net due 2. Components of "Trading Assets at Large Banks" are reported only by banks that from" and "net due to" lines. All other lines represent transactions with parties other than the reported trading assets of $2 million or more any quarter of the preceding calendar year. domestic and foreign offices of each bank. Because these intra-office transactions are nullified by consolidation, total assets and total liabilities for the entire bank may not equal the sum of assets and liabilities respectively of the domestic and foreign offices. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A66 Special Tables • February 2002 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 2001 A. Commercial and industrial loans made by all commercial banks1 W ( e l p a o f e e v a f i r e e n g c r c h e a t r t n i g a e v t t e d ) e e 2 - A o ( f m m l d o o il o a u l l i n n l o s a t n r o s s ) f ( A th v o d e u r o s a s l i g l a z a e n e r d s l ) s o a o n f W m a e v a D i t e g u a r h r y a i t g s t e y e d 3 - S c e o c l u la re te d r a b l y Amount of loan p s S re ( p u p p e b e a n j r e y a c c m l e t t y n e t t o n ) t c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 3.89 87,548 347 30.9 10.2 32.6 72.2 2 Minimal risk 2.97 3,639 186 9.4 18.3 7.2 45.7 3 Low risk 3.08 19,152 1,268 317 15.1 8.9 39.3 81.1 4 Moderate risk 4.25 30,622 597 480 38.7 12.6 33.3 83.4 5 Other 4.31 22,811 445 280 35.1 8.0 28.6 By maturity/repricing interval6 6 Zero interval 4.49 10,590 262 319 49.2 12.5 24.0 88.3 7 Minimal risk 4.33 361 313 244 54.5 59.9 21.3 99.7 8 Low risk 3.28 2,837 985 185 13.3 3.9 72.0 93.6 9 Moderate risk 4.79 3,262 211 460 50.3 14.5 6.6 77.8 10 Other 5.76 2,558 145 475 63.8 16.8 8.1 94.9 11 Daily 3.67 34,181 645 237 26.0 10.4 27.2 59.8 12 Minimal risk 2.83 1,990 1,615 128 2.9 10.2 3.5 12.8 13 Low risk 2.95 7,102 2,717 245 9.3 13.7 35.5 60.4 14 Moderate risk 3.85 10,164 569 361 28.5 14.2 23.7 78.9 15 Other 4.20 9,041 458 162 41.1 5.9 16.5 62.8 16 2 to 30 days 3.66 26,895 1,568 327 23.3 12.1 38.1 80.9 17 Minimal risk 2.59 1,127 2,164 258 2.8 19.3 6.8 79.6 18 Low risk 2.96 7,201 2,122 365 14.2 7.3 29.8 94.1 19 Moderate risk 4.18 9,798 1,743 354 33.1 16.7 46.2 90.1 20 Other 4.02 5,993 994 291 23.5 11.0 40.4 72.8 21 31 to 365 days 3.94 12,513 633 390 33.7 3.0 50.6 79.0 22 Minimal risk 3.20 120 136 82 15.3 2.5 32.8 91.8 23 Low risk 3.34 1,664 409 295 38.4 1.2 47.1 94.9 24 Moderate risk 4.14 5,258 721 570 47.6 3.0 56.5 97.6 25 Other 3.87 4,595 1,264 254 16.4 1.4 51.2 60.4 26 More than 365 days 6.09 2,855 239 5.0 6.3 46.3 27 Minimal risk 8.10 31 65 54.9 .4 98.0 28 Low risk 5.62 303 146 60.8 12.3 11.7 61.3 28 Moderate risk .. 5.92 1,767 483 83.0 .9 4.4 38.7 30 Other 6.29 547 164 77.3 11.5 10.6 69.5 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 6.28 2,567 3.4 159 83.6 27.8 3.4 83.9 32 100-999 5.43 9,379 3.4 142 70.9 17.0 8.5 86.9 33 1,000-9,999 4.10 25,546 3.2 72 35.3 10.8 30.6 34 10,000 or more 3.38 50,056 2.9 49 18.5 7.8 39.7 BASE RATE OF LOAN4 35 Prime7 5.71 17,557 3.3 141 67.0 24.8 1.7 85.7 36 Fed funds 2.96 15,986 3.0 24 7.2 2.6 24.6 37.5 37 Other domestic 3.19 11,788 2.5 6.2 22.1 66.0 53.1 38 Foreign 3.51 26,526 2.9 41 24.9 2.2 54.0 93.8 39 Other 4.00 15,690 3.2 126 43.4 6.3 14.4 70.4 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A67 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 2001—Continued B. Commercial and industrial loans made by all domestic banks' Weighted- Weighted- Amount of loans (percent) ( e l p a o f e v a f r e e n c r c e a t r n i g a v t t e ) e e 2 A o ( f m m l d o o il o a u l l i n n l o s a t n r o s s ) f ( A th v o d e u o r s a s l i g l a z a e n e r d s l ) s o a o n f m av a D t e u a r r y a i g s t y e 3 S c e o c l u la re te d r a b l y p S re p u p e b a n je y a c m lt t y e t n o t c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 4.25 52,128 378 519 40.1 13.9 21.9 82.8 2 Minimal risk 3.11 2,255 543 270 14.8 29.5 6.6 60.5 3 Low risk 3.27 11,142 779 399 21.9 13.3 48.4 87.9 4 Moderate risk 4.40 21,520 440 649 43.2 13.5 21.9 82.2 5 Other 5.04 11,809 243 456 54.9 11.1 9.6 90.0 By maturity/repricing interval6 6 Zero interval 4.55 9,065 232 325 45.3 14.4 27.9 88.5 7 Minimal risk 4.29 355 310 225 55.4 61.0 21.6 99.7 8 Low risk 3.15 2,647 940 121 13.8 4.0 77.1 93.2 9 Moderate risk 4.77 3,106 208 456 50.2 15.2 6.7 76.8 10 Other 5.72 2,389 139 452 65.4 18.0 8.4 94.6 11 Daily 4.10 20,745 403 393 34.9 17.1 21.2 82.3 12 Minimal risk 2.94 858 713 302 6.8 23.6 8.0 23.9 13 Low risk 3.09 4,397 1,832 393 14.9 22.1 41.3 83.9 14 Moderate risk 4.11 7,985 455 464 36.1 18.0 27.7 85.0 15 Other 4.91 5,263 274 274 49.2 10.1 4.7 84.9 16 2 to 30 days 3.82 13,238 479 32.9 12.1 26.5 84.9 17 Minimal risk 2.60 953 2,090 245 2.4 22.8 .0 75.8 18 Low risk 3.28 2,716 891 477 23.6 10.9 45.5 90.0 19 Moderate risk 4.03 5,753 1,248 515 35.0 12.0 31.7 88.6 20 Other 4.76 2,133 406 557 58.0 7.7 21.0 98.6 21 31 to 365 days 4.26 5,765 317 736 48.3 6.5 15.3 88.5 22 Minimal risk 4.08 48 57 144 38.4 6.4 4.1 86.2 23 Low risk 3.60 1,036 265 404 55.1 2.0 25.8 93.3 24 Moderate risk 4.41 2,559 376 1,114 51.0 6.2 15.9 95.4 25 Other 4.29 1,432 510 539 42.3 4.6 14.2 95.8 26 More than 365 days 6.13 2,804 236 5.1 4.6 45.3 27 Minimal risk 8.10 31 65 54.9 .4 98.0 28 Low risk 5.62 303 146 60.8 12.3 11.7 61.3 28 Moderate risk . . 5.94 1,744 478 82.7 .9 3.1 37.8 30 Other 6.41 519 157 79.9 12.1 5.9 67.9 Weighted- Weighted- average average risk maturity/ rating5 repricing interval Days SIZE OF LOAN (thousands of dollars) 31 1-99 6.29 2,535 3.4 161 83.9 27.9 3.2 83.9 32 100-999 5.54 8,359 3.4 156 74.8 17.7 4.9 87.3 33 1,000-9,999 4.40 16,113 3.1 100 44.5 13.2 15.6 34 10,000 or more 3.51 25,121 2.7 81 21.4 11.6 33.6 BASE RATE OF LOAN4 35 Prime7 5.73 14,918 3.4 164 73.6 17.7 1.7 84.2 36 Fed funds 3.11 4,940 2.8 58 18.0 8.3 18.3 54.7 37 Other domestic 3.18 7,754 2.5 6.5 33.7 48.3 80.4 38 Foreign 3.65 12,063 2.9 49 34.1 4.8 36.7 97.3 39 Other 4.17 12,454 3.0 157 35.6 7.9 17.0 79.8 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A68 Special Tables • February 2002 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 2001—Continued C. Commercial and industrial loans made by large domestic banks1 W e a f e v f i e e g r c h a t t i g e v e d e - AAAmmm lllooo ooo aaa uuu nnn nnn sss ttt ooofff AAAvvveeerrr sss aaa iii ggg zzz eee eee llloooaaannn WW mm aa ee vv aa ii tt ee gg uu rr hh rr aa ii tt gg tt ee yy ee dd 33 -- Amount of loans (percent) ( l p o e a r n c e r n a t t ) e 2 ooo ((( fff mmm ddd iiilll ooo lll lll iii lll ooo aaa nnn rrr sss sss ))) (((ttthhhooo ddd uuu ooo sss llllll aaa aaa nnn rrr ddd sss sss ))) ooofff Days S c e o c l u la re te d r a b l y CCaallllaabbllee pp SS rree pp uu pp ee bb aa nn jjee yy aa cc mm lltt tt yy ee tt nn oo tt c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 3.99 45,266 653 469 34.2 12.4 24.2 83.7 2 Minimal risk 2.76 1,770 2,407 255 8.2 23.7 6.5 58.9 3 Low risk 3.04 10,239 1,926 340 17.6 12.9 52.1 89.4 4 Moderate risk 4.19 19,472 777 580 38.2 13.3 23.1 82.8 5 Other 4.83 10,008 373 400 48.9 8.3 9.4 91.3 By maturity/repricing interval6 6 Zero interval 4.18 6,722 452 322 33.8 9.1 36.1 88.8 7 Minimal risk 3.72 142 619 390 65.6 18.9 46.2 99.1 8 Low risk 2.91 2,418 5,631 90 7.6 1.7 84.1 95.8 9 Moderate risk 4.52 2,493 371 444 41.0 11.9 6.5 76.8 10 Other 5.53 1,651 223 501 58.3 14.8 10.1 95.6 11 Daily 3.97 19,349 496 375 31.1 16.8 22.1 82.0 12 Minimal risk 2.75 811 2,515 194 2.3 20.6 6.1 19.6 13 Low risk 3.00 4,233 3,309 381 13.3 22.7 42.8 83.6 14 Moderate risk 3.96 7,378 567 455 31.5 18.4 29.8 84.9 15 Other 4.82 4,822 334 238 45.1 8.3 3.2 85.3 16 2 to 30 days 3.72 12,134 1,312 487 30.5 10.7 28.6 85.0 17 Minimi risk 2.56 787 6,297 291 2.1 27.3 * 90.7 18 Low risk 3.23 2,619 979 468 22.0 9.9 46.4 89.7 19 Moderate risk 3.98 5,611 1,906 496 33.7 11.8 32.5 88.6 20 Other 4.65 1,876 665 548 53.1 4.3 22.6 98.5 21 31 to 365 days 3.71 4,712 1,748 609 42.2 4.3 15.7 93.6 22 Minimal risk 2.74 15 541 94 48.4 1.9 .1 98.1 23 Low risk 2.94 828 1,306 372 52.9 1.6 30.9 97.7 24 Moderate risk 3.82 2,214 2,183 767 44.8 6.4 13.1 97.5 25 Other 4.16 1,322 1,799 545 39.9 2.7 14.3 98.7 Months 26 More than 365 days 5.59 1,877 1,033 46 72.2 .4 2.6 46.1 27 Minimal risk * * * * * * * * 28 Low risk 3.68 98 415 37 21.0 .5 15.6 98.7 28 Moderate risk ... 5.70 1,439 1,871 47 80.1 .1 1.4 35.3 30 Other 5.34 265 501 31 62.0 1.7 2.4 86.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.68 1,279 3.5 45 83.3 29.2 1.5 89.3 32 100-999 5.21 5,548 3.5 53 68.7 16.0 4.0 93.9 33 1,000-9,999 4.23 13,856 3.2 74 39.3 12.3 16.4 91.2 34 10,000 or more 3.49 24,583 2.7 82 21.1 10.8 34.3 76.8 BASE RATE OF LOAN4 35 Prime7 5.58 10,690 3.4 148 69.1 15.5 .2 86.0 36 Fed funds 3.06 4,860 2.8 17 17.1 8.0 18.6 54.7 37 Other domestic 3.17 7,703 2.5 5 5.9 33.8 48.6 80.5 38 Foreign 3.62 11,134 2.9 44 33.1 4.1 39.4 97.8 39 Other 3.81 10,880 3.1 109 28.9 4.7 17.3 82.1 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A69 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 2001—Continued D. Commercial and industrial loans made by small domestic banks' W ( e l p a o f e e v a f i r e e n g c r c h e a r t n t i g a e v t t e d ) e e 2 - A o ( f m m l d o o i o l a u l l i n n l o a s t n r o s s ) f ( A th v o d e u r o s a s l i g l a z a e n e r d s l ) s o a o n f W m a e v a D i t e g u a r h y r a i t s g t e y e d 3 - S c e o c l u la re te d r a b l y A C m al o l u a n b t l e o f loan p s S r e ( p u p p e b e a n j r e y a c c m l e t t y n e t t n o ) t c M om ad m e i u tm nd e e n r t LOAN RISK5 1 All commercial and industrial loans 5.94 6,862 100 852 78.8 23.3 7.2 77.1 2 Minimal risk 4.40 485 142 324 38.6 50.9 6.7 66.2 3 Low risk 5.90 903 100 1,109 70.3 17.6 7.0 71.1 4 Moderate risk 6.45 2,047 86 1,333 90.8 15.9 10.3 76.3 5 Other 6.19 1,801 83 771 88.0 26.9 10.2 82.4 By maturity/repricing interval6 6 Zero interval 5.63 2,343 97 337 78.4 29.5 4.3 87.6 7 Minimal risk 4.67 213 233 114 48.7 89.0 5.2 100.0 8 Low risk 5.64 228 96 547 78.9 28.6 3.8 64.9 9 Moderate risk 5.77 613 75 509 87.7 28.4 7.5 76.6 10 Other 6.15 738 76 347 81.3 25.1 4.6 92.5 11 Daily 5.89 1,397 112 642 86.8 20.4 9.2 86.2 12 Minimal risk 6.34 46 53 2,270 85.4 76.4 41.5 100.0 13 Low risk 5.68 164 146 684 56.1 7.5 2.8 91.6 14 Moderate risk 5.97 607 134 586 92.0 12.8 2.2 85.8 15 Other 5.90 441 93 650 94.1 28.8 20.5 80.8 16 2 to 30 days 4.87 1,104 200 397 59.8 27.3 3.8 84.1 17 Minimal risk 2.81 166 503 28 3.7 1.2 .0 5.5 18 Low risk 4.85 97 260 722 67.3 38.7 19.6 99.4 19 Moderate risk 5.84 143 86 1,303 87.6 20.5 .4 90.2 20 Other 5.60 256 105 628 93.9 32.5 8.7 98.9 21 31 to 365 days 6.71 1,053 68 1,299 75.7 16.2 13.6 65.5 22 Minimal risk 4.72 33 40 168 33.7 8.5 6.0 80.6 23 Low risk 6.23 209 64 528 64.0 3.5 5.3 76.1 24 Moderate risk 8.15 344 59 3,299 90.7 4.6 33.9 82.0 25 Other 5.86 110 53 468 71.7 27.7 11.8 61.0 Months 26 More than 365 days 7.21 927 92 93.4 14.6 8.6 43.6 27 Minimal risk 8.52 27 56 100.0 63.8 .4 97.6 28 Low risk 6.55 205 111 79.8 17.9 9.8 43.4 28 Moderate risk .. 7.08 305 106 95.3 4.4 11.6 50.1 30 Other 7.52 254 92 98.7 23.0 9.5 49.0 Weighted- Weighted- average average risk maturity/ rating5 repricing interval" Days SIZE OF LOAN (thousands of dollars) 31 1-99 6.92 1,257 3.2 277 84.4 26.7 5.0 78.3 32 100-999 6.19 2,811 3.2 359 86.7 21.1 6.7 74.1 33 1,000-9,999 5.47 2,257 2.8 264 76.4 19.1 10.7 74.5 34 10,000 or more BASE RATE OF LOAN4 35 Prime7 6.10 4,227 3.2 206 85.0 23.3 5.5 79.5 36 Fed funds 5.92 81 2.5 2,411 73.2 27.1 2.2 57.3 37 Other domestic 6.05 51 2.6 461 99.3 12.6 63.8 38 Foreign 3.97 929 2.5 110 45.5 12.9 3.2 91.3 39 Other 6.68 1,574 2.6 490 81.6 29.7 14.4 63.5 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A70 Special Tables • February 2002 4.23 TERMS OF LENDING AT COMMERCIAL BANKS Survey of Loans Made, November 5-9, 2001—Continued E. Commercial and industrial loans made by U.S. branches and agencies of foreign banks1 Weighted- Weighted- Amount of loans (percent) average loans size m av at e u r r a i g ty e 3 common ( l p o e a r n c e r n a t t ) e 2 o ( f m d il o l l i l o a n r s s ) (tho d u o s ll a a n r d s) s of S c e o c l u la re te d r a b l y Callable p SS re uu p bb a jjee y cc m tt e ttoo n t c M om ad m e i u tm nd e e n r t base r a p t r e i 4 c ing Days penalty LOAN RISK5 1 All commercial and industrial loans 3.38 35,420 5,225 94 17.4 4.9 48.4 56.7 Foreign 2 Minimal risk 2.73 1,384 9,583 51 .7 * 8.2 21.5 Fed funds 3 Low risk 2.82 8,010 10,095 201 5.8 2.9 26.6 71.7 Foreign 4 Moderate risk 3.90 9,102 3,819 52 27.9 10.5 60.3 86.1 Foreign 5 Other 3.53 11,002 4,222 95 13.8 4.6 49.1 46.2 Fed funds By maturity/repricing interval 6 Zero interval 4.11 1,525 1,187 277 72.0 1.7 .8 87.5 Other 7 Minimal risk * * * * * * * * * 8 Low risk 5.08 191 2,946 1,287 6.2 2.5 * 99.6 Prime 9 Moderate risk 5.30 156 287 678 51.5 1.0 3.6 99.0 Prime 10 Other 6.26 169 404 924 41.0 * 3.7 99.2 Prime 11 Daily 3.01 13,436 9,125 11 12.4 .2 36.4 25.2 Fed funds 12 Minimal risk * * * * * * * * * 13 Low risk 2.72 2,705 12,635 14 .1 * 25.9 22.3 Fed funds 14 Moderate risk 2.90 2,179 6,468 4 .7 .3 8.7 56.8 Fed funds 15 Other 3.20 3,778 6,774 15 29.7 * 33.0 32.1 Fed funds 16 2 to 30 days 3.50 13,658 5,746 165 14.0 12.2 49.4 76.9 Foreign 17 Minimal risk 2.53 174 2,686 331 5.2 * 44.0 100.0 Foreign 18 Low risk 2.76 4,486 12,930 295 8.5 5.1 20.3 96.7 Foreign 19 Moderate risk 4.39 4,045 4.001 61 30.3 23.3 66.8 92.3 Foreign 20 Other 3.60 3,860 5,012 131 4.4 12.9 51.1 58.6 Foreign 21 31 to 365 days 3.66 6,748 4,217 97 21.2 * 80.7 71.0 Foreign 22 Minimal risk * * * * * * * * * 23 Low risk 2.92 628 3,746 113 10.8 * 82.2 97.5 Foreign 24 Moderate risk 3.88 2,699 5,588 66 44.5 * 95.0 99.7 Foreign 25 Other 3.68 3,163 3,834 124 4.6 * 68.0 44.4 Foreign Months 26 More than 365 days * * * * * * * * * 27 Minimal risk * * * * * * * * * 28 Low risk * * * * * * * * * 28 Moderate risk . .. * * * * * * * * * 30 Other * * * * * * * * * Weighted- Weighted- average average risk maturity/ rating5 repricing interval6 Days SIZE OF LOAN (thousands of dollars) 31 1-99 5.39 32 3.4 22 65.6 17.5 20.8 85.8 Prime 32 100-999 4.55 1,020 3.5 29 39.4 11.2 38.2 83.3 Prime 33 1,000-9,999 3.58 9,432 3.4 23 19.6 6.7 56.3 67.1 Foreign 34 10,000 or more 3.25 24,935 3.0 17 15.6 3.9 45.8 51.6 Foreign Average size (thousands of dollars) BASE RATE OF LOAN4 35 Prime7 5.63 2,640 3.2 11 29.5 65.0 1.4 94.5 1,342 36 Fed funds 2.89 11,045 3.1 9 2.4 * 27.4 29.8 8,586 37 Other domestic 3.21 4,035 4.2 9 5.5 * 100.0 .7 7,716 38 Foreign 3.39 14,464 2.9 34 17.3 * 68.5 90.9 6,026 39 Other 3.32 3,237 4.3 5 73.5 .3 4.4 34.4 5,372 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

Financial Markets A71 NOTES TO TABLE 4.23 NOTE. The Survey of Terms of Business Lending collects data on gross loan extensions 5. A complete description of these risk categories is available from the Banking Analysis made during the first full business week in the mid-month of each quarter. The authorized Section, Mail Stop 81, Board of Governors of the Federal Reserve System, Washington, DC panel size for the survey is 348 domestically chartered commercial banks and 50 US. 20551. The category "Moderate risk" includes the average loan, under average economic branches and agencies of foreign banks. The sample data are used to estimate the terms of conditions, at the typical lender. The category "Other" includes loans rated "acceptable" as loans extended during that week at all domestic commercial banks and all U.S. branches and well as special mention or classified loans. The weighted-average risk rating published for agencies of foreign banks. Note that the terms on loans extended during the survey week may loans in rows 31-39 are calculated by assigning a value of " 1" to minimal risk loans; "2" to differ from those extended during other weeks of the quarter. The estimates reported here are low risk loans; "3" to moderate risk loans, "4" to acceptable risk loans; and "5" to special not intended to measure the average terms on all business loans in bank portfolios. mention and classified loans. These values are weighted by loan amount and exclude loans 1. As of March 31, 2001, assets of the large banks were at least $4 billion. Median total with no risk rating. Some of the loans in lines 1, 6, 11, 16, 21, 26, and 31-39 are not rated for assets for all insured banks were roughly $80 million. Assets at all U.S. branches and agencies risk. averaged $2.7 billion. 6. The maturity/repricing interval measures the period from the date the loan is made until 2. Effective (compounded) annual interest rates are calculated from the stated rate and it first may reprice or it matures. For floating-rate loans that are subject to repricing at any other terms of the loans and weighted by loan amount. The standard error of the loan rate for time—such as many prime-based loans—the maturity/repricing interval is zero. For floatingall commercial and industrial loans in the current survey (line 1, column 1) is 0.17 percentage rate loans that have a scheduled repricing interval, the maturity/repricing interval measures point. The chances are about two out of three that the average rate shown would differ by less the number of days between the date the loan is made and the date on which it is next than this amount from the average rate that would be found by a complete survey of the scheduled to reprice. For loans having rates that remain fixed until the loan matures universe of all banks. (fixed-rate loans), the matuirty/repricing interval measures the number of days between the 3. Average maturities are weighted by loan amount and exclude loans with no stated date the loan is made and the date on which it matures. Loans that reprice daily mature or maturities. reprice on the business day after they are made. Owing to weekends and holidays, such loans 4. The most common base pricing rate is that used to price the largest dollar volume of may have maturity/repricing intervals in excess of one day; such loans are not included in the loans. Base pricing rates include the prime rate (sometimes referred to as a bank's "base" or "2 to 30 day" category. "reference" rate); the federal funds rate; domestic money market rates other than the prime 7. For the current survey, the average reported prime rate, weighted by the amount of loans rate and the federal funds rate; foreign money market rates; and other base rates not included priced relative to a prime base rate, was 5.28 percent for all banks; 5.26 percent for large in the foregoing classifications. domestic banks, 5.42 percent for small domestic banks; and 5.13 percent for U.S. branches and agencies of foreign banks. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A72 Special Tables • February 2002 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A73 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 20011 Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s 1 Total assets4 989,106 191384 841,532 163,170 20,031 4,897 43,883 5,306 2 Claims on nonrelated parties 753,396 76,061 625,722 70,732 19,383 1,227 43,032 52 3 Cash and balances due from depository institutions 63,376 30,888 61,603 30,672 513 113 543 13 4 Cash items in process of collection and unposted debits 1,446 0 1,383 0 3 0 16 0 5 Currency and coin (U.S. and foreign) 13 n.a. 9 n.a. 1 n.a. 0 n.a. 6 Balances with depository institutions in United States 41,859 13,583 40,394 13,452 417 45 511 13 7 U.S. branches and agencies of other foreign banks (including their IBFs) 36,795 12,792 35,687 12,695 269 24 442 13 8 Other depository institutions in United States (including their IBFs) 5,064 791 4,707 757 148 21 69 0 9 Balances with banks in foreign countries and with foreign central banks 19,710 17,305 19,536 17,220 70 68 5 0 10 Foreign branches of U.S. banks 611 369 571 329 40 40 0 0 11 Banks in home country and home-country central banks 5,947 5,055 5,938 5,047 8 8 1 0 12 All other banks in foreign countries and foreign central banks 13,152 11,880 13,027 11,843 22 20 4 0 13 Balances with Federal Reserve Banks 349 n.a. 280 n.a. 23 n.a. 11 n.a. 14 Total securities and loans 437,695 36,445 358,903 31,547 18,243 1,082 27,637 39 15 Total securities, book value 108,119 5,304 99,754 4,839 1,221 416 4,310 11 16 U.S. Treasury 11,079 n.a. 10,739 n.a. 44 n.a. 273 n.a. 17 Obligations of U.S. government agencies and corporations 27,428 n.a. 25,588 n.a. 48 n.a. 1,679 n.a. 18 Other bonds, notes, debentures, and corporate stock (including state and local securities) 69,613 5,304 63,428 4,839 1,128 416 2,358 11 19 Securities of foreign governmental units 11,180 3,316 11,006 3,267 135 32 11 11 20 Mortgage-backed securities 16,734 33 16,579 33 135 0 0 0 21 Other asset-backed securities 9,498 13 7,643 13 0 0 0 0 22 All other 32,201 1,942 28,201 1,526 858 383 2,346 0 23 Federal funds sold and securities purchased under agreements to resell 98,543 6,679 90,789 6,554 226 14 6,484 0 24 Depository institutions in the United States 19,271 3,274 18,369 3,157 226 14 12 0 25 Other 79,272 3,406 72,419 3,397 0 0 6,473 0 76 Total loans, gross 329,901 31,172 259,403 26,737 17,054 667 23,337 28 77 LESS: Unearned income on loans 325 31 254 29 32 1 10 0 28 EQUALS: Loans, net 329,576 31,141 259,149 26,708 17,022 666 23,327 28 Total loans, gross, by category 79 Real estate loans 16,782 51 12,244 51 2,878 0 131 00 30 Loans to depository institutions and acceptances of other banks 77,515 15,984 63,802 13,001 2,041 513 5,411 25 31 Commercial banks in United States (including their IBFs) 9,210 2,468 7,589 2,029 838 345 389 0 32 U.S. branches and agencies of other foreign banks 5,486 2,303 4,108 1,864 783 345 361 0 33 Other commercial banks in United States 3,725 165 3,481 165 55 0 28 0 .34 Other depository institutions in United States (including their IBFs) . . . 14 0 0 0 0 0 0 0 35 Banks in foreign countries 17,506 12,312 13,839 9,878 214 168 249 25 36 Foreign branches of U.S. banks 381 330 342 300 30 30 0 0 37 Other banks in foreign countries 17,125 11,982 13,498 9,578 184 138 249 25 38 Loans to other financial institutions 50,784 1,205 42,373 1,094 988 0 4,773 0 39 Commercial and industrial loans 212,769 12,969 162,922 11,661 11,579 132 16,724 0 40 U.S. addressees (domicile) 174,237 57 134,487 55 10,760 0 14,529 0 41 Non-U.S. addressees (domicile) 38,532 12,912 28,435 11,606 820 132 2,195 0 42 Loans to foreign governments and official institutions (including foreign central banks) 3,420 2,095 2,908 1,965 127 22 227 3 43 Loans for purchasing or carrying securities (secured and unsecured) .... 13,066 0 12,617 0 0 0 252 0 44 All other loans 5,760 72 4,654 58 430 0 260 0 45 Lease financing receivables (net of unearned income) 588 0 256 0 0 0 332 0 46 U.S. addressees (domicile) 588 0 256 0 0 0 332 0 47 Non-U.S. addressees (domicile) 0 0 0 0 0 0 0 0 48 Trading assets 121,141 819 85,833 819 74 0 5,963 0 49 All other assets 32,641 1,230 28,594 1,140 327 18 2,404 1 50 Customers' liabilities on acceptances outstanding 1,094 n.a. 763 n.a. 84 n.a. 214 n.a. 51 U.S. addressees (domicile) 353 n.a. 266 n.a. 80 n.a. 5 n.a. 52 Non-U.S. addressees (domicile) 742 n.a. 497 n.a. 4 n.a. 209 n.a. 53 Other assets including other claims on nonrelated parties 31,547 1,230 27,831 1,140 243 18 2,190 1 54 Net due from related depository institutions5 235,710 115,322 215,811 92,437 648 3,670 851 5,254 55 Net due from head office and other related depository institutions5 .... 235,710 n.a. 215,811 n.a. 648 n.a. 851 n.a. 56 Net due from establishing entity, head office, and other related depository institutions5 n.a. 115,322 n.a. 92,437 n.a. 3,670 n.a. 5,254 57 Total liabilities4 989,106 191,384 841,532 163,170 20,031 4,897 43,883 5,306 58 Liabilities to nonrelated parties 877,554 177,157 764,765 149,616 8,213 4,818 37,915 5,273 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

A74 Special Tables • February 2002 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 2001 "—Continued Millions of dollars except as noted All states2 New York California Illinois Item ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 ex T c IB l o u F t d a s i l n g I o B n F ly s ex T c IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s 59 Total deposits and credit balances 399,698 130,244 346,479 114,151 2,610 834 12,202 4,549 60 Individuals, partnerships, and corporations (including certified and official checks) 310,707 10,298 261,315 5,331 22,,225577 116655 1111,,331100 5533 61 US. addressees (domicile) 293,680 6 250,871 5 596 0 11,049 0 62 Non-U.S. addressees (domicile) 17,027 10,292 10,445 5,326 1,661 165 261 53 63 Commercial banks in United States (including their IBFs) 46,586 13,061 44,204 12,759 310 20 883 67 64 U.S. branches and agencies of other foreign banks 18,760 12,098 17,700 11,824 10 20 50 67 65 Other commercial banks in United States 27,825 963 26,504 935 300 0 833 0 66 Banks in foreign countries 12,025 71,374 11,822 67,728 10 77 88 1,654 67 Foreign branches of U.S. banks 1,709 4,539 1,708 4,359 0 0 00 120 68 Other banks in foreign countries 10,316 66,835 10,114 63,369 10 77 8 1,534 69 Foreign governments and official institutions (including foreign central banks) 10,753 35,480 1100,,331144 2288,,330011 6 557722 11 22,,777755 70 All other deposits and credit balances 19,628 31 18,823 31 27 0 00 0 71 Transaction accounts and credit balances (excluding IBFs) 7,532 n.a. 6,002 n.a. 260 n.a. 158 n.a. 72 Individuals, partnerships, and corporations (including certified and official checks) 6,352 n.a. 55,,000055 n.a. 224466 n.a. 115566 n.a. 73 U.S. addressees (domicile) 4,303 n.a. 3,793 n.a. 119 n.a. 154 n.a. 74 Non-U.S. addressees (domicile) 2,049 n.a. 1,212 n.a. 126 n.a. 2 n.a. 75 Commercial banks in United States (including their IBFs) 60 n.a. 58 n.a. 0 n.a. 0 n.a. 76 U.S. branches and agencies of other foreign banks 33 n.a. 32 n.a. 0 n.a. 0 n.a. 77 Other commercial banks in United States 27 n.a. 26 n.a. 0 n.a. 0 n.a. 78 Banks in foreign countries 611 n.a. 477 n.a. 10 n.a. 0 n.a. 79 Foreign branches of U.S. banks 2 n.a. 2 n.a. 0 n.a. 0 n.a. 80 Other banks in foreign countries 609 n.a. 476 n.a. 10 n.a. 0 n.a. 81 Foreign governments and official institutions (including foreign central banks) 331133 n.a. 227722 n.a. 2 n.a. 00 n.a. 82 All other deposits and credit balances 196 n.a. 190 n.a. 2 n.a. 0 n.a. 83 Nontransaction accounts (including MMDAs, excluding IBFs) 392,166 n.a. 340,477 n.a. 2,350 n.a. 12,044 n.a. 84 Individuals, partnerships, and corporations (including certified and official checks) 304,355 n.a. 256,311 n.a. 22,,001111 n.a. 1111,,115533 n.a. 85 U.S. addressees (domicile) 289,378 n.a. 247,078 n.a. 476 n.a. 10,894 n.a. 86 Non-U.S. addressees (domicile) 14,978 n.a. 9,233 n.a. 1,535 n.a. 259 n.a. 87 Commercial banks in United States (including their IBFs) 46,526 n.a. 44,145 n.a. 310 n.a. 883 n.a. 88 U.S. branches and agencies of other foreign banks 18,728 n.a. 17,668 n.a. 10 n.a. 50 n.a. 89 Other commercial banks in United States 27,798 n.a. 26,478 n.a. 300 n.a. 833 n.a. 90 Banks in foreign countries 11,414 n.a. 11,345 n.a. 0 n.a. 88 n.a. 91 Foreign branches of U.S. banks 1,707 n.a. 1,707 n.a. 0 n.a. 00 n.a. 92 Other banks in foreign countries 9,707 n.a. 9,638 n.a. 0 n.a. 8 n.a. 93 Foreign governments and official institutions (including foreign central banks) 10,440 n.a. 1100,,004433 n.a. 4 n.a. 00 n.a. 94 All other deposits and credit balances 19,432 n.a. 18,634 n.a. 25 n.a. 0 n.a. 95 IBF deposit liabilities n.a. 130,244 n.a. 114,151 n.a. 834 n.a. 4,549 96 Individuals, partnerships, and corporations (including certified and official checks) n.a. 10,298 n.a. 55,,333311 n.a. 116655 n.a. 5533 97 U.S. addressees (domicile) n.a. 6 n.a. 5 n.a. 0 n.a. 0 98 Non-U.S. addressees (domicile) n.a. 10,292 n.a. 5,326 n.a. 165 n.a. 53 99 Commercial banks in United States (including their IBFs) n.a. 13,061 n.a. 12,759 n.a. 20 n.a. 67 100 U.S. branches and agencies of other foreign banks n.a. 12,098 n.a. 11,824 n.a. 20 n.a. 67 101 Other commercial banks in United States n.a. 963 n.a. 935 n.a. 0 n.a. 0 102 Banks in foreign countries n.a. 71,374 n.a. 67,728 n.a. 77 n.a. 1,654 103 Foreign branches of US. banks n.a. 4,539 n.a. 4,359 n.a. 0 n.a. 120 104 Other banks in foreign countries n.a. 66,835 n.a. 63,369 n.a. 77 n.a. 1,534 105 Foreign governments and official institutions (including foreign central banks) n.a. 3355,,448800 n.a. 2288,,330011 n.a. 557722 n.a. 22,,777755 106 All other deposits and credit balances n.a. 31 n.a. 31 n.a. 0 n.a. 0 Footnotes appear at end of table. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

U.S. Branches and Agencies A75 4.30 ASSETS AND LIABILITIES of U.S. Branches and Agencies of Foreign Banks, June 30, 2001 '—Continued Millions of dollars except as noted All states2 New York California Illinois IItteemm in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s 111111100000007777777 FFFFFFFeeeeeeedddddddeeeeeeerrrrrrraaaaaaalllllll fffffffuuuuuuunnnnnnndddddddsssssss pppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeeeddddddd aaaaaaannnnnnnddddddd ssssssseeeeeeecccccccuuuuuuurrrrrrriiiiiiitttttttiiiiiiieeeeeeesssssss sssssssooooooolllllllddddddd uuuuuuunnnnnnndddddddeeeeeeerrrrrrr aaaaaaagggggggrrrrrrreeeeeeeeeeeeeemmmmmmmeeeeeeennnnnnntttttttsssssss tttttttooooooo rrrrrrreeeeeeepppppppuuuuuuurrrrrrrccccccchhhhhhhaaaaaaassssssseeeeeee 166,653 22,315 156,623 16,807 981 455 3,378 302 111111100000008888888 DDDDDDDeeeeeeepppppppooooooosssssssiiiiiiitttttttooooooorrrrrrryyyyyyy iiiiiiinnnnnnnssssssstttttttiiiiiiitttttttuuuuuuutttttttiiiiiiiooooooonnnnnnnsssssss iiiiiiinnnnnnn ttttttthhhhhhheeeeeee UUUUUUUnnnnnnniiiiiiittttttteeeeeeeddddddd SSSSSSStttttttaaaaaaattttttteeeeeeesssssss 33,693 5,677 28,683 2,635 681 275 1,416 0 111111100000009999999 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr 132,960 16,638 127,939 14,173 301 180 1,962 302 111111111111110000000 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr bbbbbbbooooooorrrrrrrrrrrrrrooooooowwwwwwweeeeeeeddddddd mmmmmmmooooooonnnnnnneeeeeeeyyyyyyy 77,596 22,847 62,485 17,001 3,562 3,501 5,476 414 111111111111111111111 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd cccccccooooooommmmmmmmmmmmmmeeeeeeerrrrrrrccccccciiiiiiiaaaaaaalllllll bbbbbbbaaaaaaannnnnnnkkkkkkksssssss iiiiiiinnnnnnn UUUUUUUnnnnnnniiiiiiittttttteeeeeeeddddddd SSSSSSStttttttaaaaaaattttttteeeeeeesssssss (((((((iiiiiiinnnnnnncccccccllllllluuuuuuudddddddiiiiiiinnnnnnnggggggg ttttttthhhhhhheeeeeeeiiiiiiirrrrrrr IIIIIIIBBBBBBBFFFFFFFsssssss))))))) 13,703 4,829 11,468 3,754 508 470 511 65 111111111111112222222 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo UUUUUUUSSSSSSS....... oooooooffffffffffffffiiiiiiiccccccceeeeeeesssssss ooooooofffffff nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd UUUUUUU.......SSSSSSS....... bbbbbbbaaaaaaannnnnnnkkkkkkksssssss 7,536 1,557 6,605 1,116 60 30 186 0 111111111111113333333 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo UUUUUUU.......SSSSSSS....... bbbbbbbrrrrrrraaaaaaannnnnnnccccccchhhhhhheeeeeeesssssss aaaaaaannnnnnnddddddd aaaaaaagggggggeeeeeeennnnnnnccccccciiiiiiieeeeeeesssssss ooooooofffffff nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn bbbbbbbaaaaaaannnnnnnkkkkkkksssssss 6,167 3,272 4,863 2,638 447 440 325 65 111111111111114444444 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd bbbbbbbaaaaaaannnnnnnkkkkkkksssssss iiiiiiinnnnnnn fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn cccccccooooooouuuuuuunnnnnnntttttttrrrrrrriiiiiiieeeeeeesssssss 16,346 14,343 11,948 10,037 2,667 2,643 353 349 111111111111115555555 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn bbbbbbbrrrrrrraaaaaaannnnnnnccccccchhhhhhheeeeeeesssssss ooooooofffffff nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd UUUUUUU.......SSSSSSS....... bbbbbbbaaaaaaannnnnnnkkkkkkksssssss 677 594 533 452 133 133 0 0 111111111111116666666 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn oooooooffffffffffffffiiiiiiiccccccceeeeeeesssssss ooooooofffffff nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd fffffffooooooorrrrrrreeeeeeeiiiiiiigggggggnnnnnnn bbbbbbbaaaaaaannnnnnnkkkkkkksssssss 15,669 13,749 11,415 9,586 2,534 2,510 353 349 111111111111117777777 OOOOOOOwwwwwwweeeeeeeddddddd tttttttooooooo ooooooottttttthhhhhhheeeeeeerrrrrrrsssssss 47,547 3,675 39,069 3,211 387 387 4,613 0 111111111111118888888 AAAAAAAllllllllllllll ooooooottttttthhhhhhheeeeeeerrrrrrr llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss 103,363 1,750 85,028 1,656 225 28 12,310 8 111111111111119999999 BBBBBBBrrrrrrraaaaaaannnnnnnccccccchhhhhhh ooooooorrrrrrr aaaaaaagggggggeeeeeeennnnnnncccccccyyyyyyy llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttyyyyyyy ooooooonnnnnnn aaaaaaacccccccccccccceeeeeeeppppppptttttttaaaaaaannnnnnnccccccceeeeeeesssssss eeeeeeexxxxxxxeeeeeeecccccccuuuuuuuttttttteeeeeeeddddddd aaaaaaannnnnnnddddddd ooooooouuuuuuutttttttssssssstttttttaaaaaaannnnnnndddddddiiiiiiinnnnnnnggggggg 1,252 n.a. 855 n.a. 84 n.a. 276 n.a. 111111122222220000000 TTTTTTTrrrrrrraaaaaaadddddddiiiiiiinnnnnnnggggggg llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss 72,123 86 57,305 85 34 0 11,032 1 111111122222221111111 OOOOOOOttttttthhhhhhheeeeeeerrrrrrr llllllliiiiiiiaaaaaaabbbbbbbiiiiiiillllllliiiiiiitttttttiiiiiiieeeeeeesssssss tttttttooooooo nnnnnnnooooooonnnnnnnrrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd pppppppaaaaaaarrrrrrrtttttttiiiiiiieeeeeeesssssss 29,988 1,664 26,867 1,571 107 28 1,002 7 111111122222222222222 NNNNNNNeeeeeeettttttt ddddddduuuuuuueeeeeee tttttttooooooo rrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd dddddddeeeeeeepppppppooooooosssssssiiiiiiitttttttooooooorrrrrrryyyyyyy iiiiiiinnnnnnnssssssstttttttiiiiiiitttttttuuuuuuutttttttiiiiiiiooooooonnnnnnnsssssss5555555 111,552 14,227 76,767 13,554 11,818 79 5,968 33 111111122222223333333 NNNNNNNeeeeeeettttttt ddddddduuuuuuueeeeeee tttttttooooooo hhhhhhheeeeeeeaaaaaaaddddddd oooooooffffffffffffffiiiiiiiccccccceeeeeee aaaaaaannnnnnnddddddd ooooooottttttthhhhhhheeeeeeerrrrrrr rrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd dddddddeeeeeeepppppppooooooosssssssiiiiiiitttttttooooooorrrrrrryyyyyyy iiiiiiinnnnnnnssssssstttttttiiiiiiitttttttuuuuuuutttttttiiiiiiiooooooonnnnnnnsssssss5555555 111,552 n.a. 76,767 n.a. 11,818 n.a. 5,968 n.a. 111111122222224444444 NNNNNNNeeeeeeettttttt ddddddduuuuuuueeeeeee tttttttooooooo eeeeeeessssssstttttttaaaaaaabbbbbbbllllllliiiiiiissssssshhhhhhhiiiiiiinnnnnnnggggggg eeeeeeennnnnnntttttttiiiiiiitttttttyyyyyyy,,,,,,, hhhhhhheeeeeeeaaaaaaaddddddd oooooooffffffffffffffiiiiiiiccccccceeeeeee,,,,,,, aaaaaaannnnnnnddddddd ooooooottttttthhhhhhheeeeeeerrrrrrr rrrrrrreeeeeeelllllllaaaaaaattttttteeeeeeeddddddd dddddddeeeeeeepppppppooooooosssssssiiiiiiitttttttooooooorrrrrrryyyyyyy iiiiiiinnnnnnnssssssstttttttiiiiiiitttttttuuuuuuutttttttiiiiiiiooooooonnnnnnnsssssss5555555 n.a. 14,227 n.a. 13,554 n.a. 79 n.a. 33 MMMMMMMEEEEEEEMMMMMMMOOOOOOO 111111122222225555555 HHHHHHHooooooollllllldddddddiiiiiiinnnnnnngggggggsssssss ooooooofffffff ooooooowwwwwwwnnnnnnn aaaaaaacccccccccccccceeeeeeeppppppptttttttaaaaaaannnnnnnccccccceeeeeeesssssss iiiiiiinnnnnnncccccccllllllluuuuuuudddddddeeeeeeeddddddd iiiiiiinnnnnnn cccccccooooooommmmmmmmmmmmmmeeeeeeerrrrrrrccccccciiiiiiiaaaaaaalllllll aaaaaaannnnnnnddddddd iiiiiiinnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll llllllloooooooaaaaaaannnnnnnsssssss 1,362 n.a. 1,008 n.a. 9 n.a. 249 n.a. 111111122222226666666 CCCCCCCooooooommmmmmmmmmmmmmeeeeeeerrrrrrrccccccciiiiiiiaaaaaaalllllll aaaaaaannnnnnnddddddd iiiiiiinnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll llllllloooooooaaaaaaannnnnnnsssssss wwwwwwwiiiiiiittttttthhhhhhh rrrrrrreeeeeeemmmmmmmaaaaaaaiiiiiiinnnnnnniiiiiiinnnnnnnggggggg mmmmmmmaaaaaaatttttttuuuuuuurrrrrrriiiiiiitttttttyyyyyyy ooooooofffffff ooooooonnnnnnneeeeeee yyyyyyyeeeeeeeaaaaaaarrrrrrr ooooooorrrrrrr llllllleeeeeeessssssssssssss (((((((eeeeeeexxxxxxxcccccccllllllluuuuuuudddddddiiiiiiinnnnnnnggggggg ttttttthhhhhhhooooooossssssseeeeeee iiiiiiinnnnnnn nnnnnnnooooooonnnnnnnaaaaaaaccccccccccccccrrrrrrruuuuuuuaaaaaaalllllll ssssssstttttttaaaaaaatttttttuuuuuuusssssss))))))) 105,743 n.a. 74,857 n.a. 6,458 n.a. 12,116 n.a. 111111122222227777777 PPPPPPPrrrrrrreeeeeeedddddddeeeeeeettttttteeeeeeerrrrrrrmmmmmmmiiiiiiinnnnnnneeeeeeeddddddd iiiiiiinnnnnnnttttttteeeeeeerrrrrrreeeeeeesssssssttttttt rrrrrrraaaaaaattttttteeeeeeesssssss 55,334 n.a. 35,669 n.a. 3,479 n.a. 9,420 n.a. 111111122222228888888 FFFFFFFllllllloooooooaaaaaaatttttttiiiiiiinnnnnnnggggggg iiiiiiinnnnnnnttttttteeeeeeerrrrrrreeeeeeesssssssttttttt rrrrrrraaaaaaattttttteeeeeeesssssss 50,409 n.a. 39,188 n.a. 2,978 n.a. 2,696 n.a. 111111122222229999999 CCCCCCCooooooommmmmmmmmmmmmmeeeeeeerrrrrrrccccccciiiiiiiaaaaaaalllllll aaaaaaannnnnnnddddddd iiiiiiinnnnnnnddddddduuuuuuussssssstttttttrrrrrrriiiiiiiaaaaaaalllllll llllllloooooooaaaaaaannnnnnnsssssss wwwwwwwiiiiiiittttttthhhhhhh rrrrrrreeeeeeemmmmmmmaaaaaaaiiiiiiinnnnnnniiiiiiinnnnnnnggggggg mmmmmmmaaaaaaatttttttuuuuuuurrrrrrriiiiiiitttttttyyyyyyy ooooooofffffff mmmmmmmooooooorrrrrrreeeeeee ttttttthhhhhhhaaaaaaannnnnnn ooooooonnnnnnneeeeeee yyyyyyyeeeeeeeaaaaaaarrrrrrr (((((((eeeeeeexxxxxxxcccccccllllllluuuuuuudddddddiiiiiiinnnnnnnggggggg ttttttthhhhhhhooooooossssssseeeeeee iiiiiiinnnnnnn nnnnnnnooooooonnnnnnnaaaaaaaccccccccccccccrrrrrrruuuuuuuaaaaaaalllllll ssssssstttttttaaaaaaatttttttuuuuuuusssssss))))))) 102,806 n.a. 84,607 n.a. 4,969 n.a. 4,226 n.a. 111111133333330000000 PPPPPPPrrrrrrreeeeeeedddddddeeeeeeettttttteeeeeeerrrrrrrmmmmmmmiiiiiiinnnnnnneeeeeeeddddddd iiiiiiinnnnnnnttttttteeeeeeerrrrrrreeeeeeesssssssttttttt rrrrrrraaaaaaattttttteeeeeeesssssss 21,761 n.a. 18,559 n.a. 565 n.a. 636 n.a. 111111133333331111111 FFFFFFFllllllloooooooaaaaaaatttttttiiiiiiinnnnnnnggggggg iiiiiiinnnnnnnttttttteeeeeeerrrrrrreeeeeeesssssssttttttt rrrrrrraaaaaaattttttteeeeeeesssssss 81,045 n.a. 66,047 n.a. 4,403 n.a. 3,590 n.a. All states2 New York California Illinois ex I T c B l o u F t d a s i l 3 n g o IB nl F y s 3 exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n F ly s exc T IB l o u F t d a s i l n g I o B n p ly s 111111133333332222222 CCCCCCCooooooommmmmmmpppppppooooooonnnnnnneeeeeeennnnnnntttttttsssssss ooooooofffffff tttttttoooooootttttttaaaaaaalllllll nnnnnnnooooooonnnnnnntttttttrrrrrrraaaaaaannnnnnnsssssssaaaaaaaccccccctttttttiiiiiiiooooooonnnnnnn aaaaaaaccccccccccccccooooooouuuuuuunnnnnnntttttttsssssss,,,,,,, iiiiiiinnnnnnncccccccllllllluuuuuuudddddddeeeeeeeddddddd iiiiiiinnnnnnn tttttttoooooootttttttaaaaaaalllllll dddddddeeeeeeepppppppooooooosssssssiiiiiiitttttttsssssss aaaaaaannnnnnnddddddd cccccccrrrrrrreeeeeeedddddddiiiiiiittttttt bbbbbbbaaaaaaalllllllaaaaaaannnnnnnccccccceeeeeeesssssss (((((((eeeeeeexxxxxxxcccccccllllllluuuuuuudddddddiiiiiiinnnnnnnggggggg IIIIIIIBBBBBBBFFFFFFFsssssss))))))) 396,105 n.a. 345,322 n.a. 2,157 n.a. 11,975 n.a. 111111133333333333333 TTTTTTTiiiiiiimmmmmmmeeeeeee dddddddeeeeeeepppppppooooooosssssssiiiiiiitttttttsssssss ooooooofffffff $$$$$$$111111100000000000000,,,,,,,000000000000000000000 ooooooorrrrrrr mmmmmmmooooooorrrrrrreeeeeee 381,527 n.a. 331,247 n.a. 2,156 n.a. 11,972 n.a. 111111133333334444444 TTTTTTTiiiiiiimmmmmmmeeeeeee CCCCCCCDDDDDDDsssssss iiiiiiinnnnnnn dddddddeeeeeeennnnnnnooooooommmmmmmiiiiiiinnnnnnnaaaaaaatttttttiiiiiiiooooooonnnnnnnsssssss ooooooofffffff $$$$$$$111111100000000000000,,,,,,,000000000000000000000 ooooooorrrrrrr mmmmmmmooooooorrrrrrreeeeeee wwwwwwwiiiiiiittttttthhhhhhh rrrrrrreeeeeeemmmmmmmaaaaaaaiiiiiiinnnnnnniiiiiiinnnnnnnggggggg mmmmmmmaaaaaaatttttttuuuuuuurrrrrrriiiiiiitttttttyyyyyyy ooooooofffffff mmmmmmmooooooorrrrrrreeeeeee ttttttthhhhhhhaaaaaaannnnnnn 11111112222222 mmmmmmmooooooonnnnnnnttttttthhhhhhhsssssss 14,578 n.a. 14,076 n.a. 2 n.a. 3 n.a. All states2 New York California Illinois in I c T B l o u F t d a s i l 3 n g o IB nl F y s 3 inc T I l B o u F t d a i s l n g I o B n F ly s inc T I l B o u F t d a s i l n g I o B n F ly s inc T I l B o u F t d a i s l n g I o B n F ly s 111111133333335555555 IIIIIIImmmmmmmmmmmmmmeeeeeeedddddddiiiiiiiaaaaaaattttttteeeeeeelllllllyyyyyyy aaaaaaavvvvvvvaaaaaaaiiiiiiilllllllaaaaaaabbbbbbbllllllleeeeeee fffffffuuuuuuunnnnnnndddddddsssssss wwwwwwwiiiiiiittttttthhhhhhh aaaaaaa mmmmmmmaaaaaaatttttttuuuuuuurrrrrrriiiiiiitttttttyyyyyyy gggggggrrrrrrreeeeeeeaaaaaaattttttteeeeeeerrrrrrr ttttttthhhhhhhaaaaaaannnnnnn ooooooonnnnnnneeeeeee dddddddaaaaaaayyyyyyy iiiiiiinnnnnnncccccccllllllluuuuuuudddddddeeeeeeeddddddd iiiiiiinnnnnnn ooooooottttttthhhhhhheeeeeeerrrrrrr bbbbbbbooooooorrrrrrrrrrrrrrooooooowwwwwwweeeeeeeddddddd mmmmmmmooooooonnnnnnneeeeeeeyyyyyyy 28,632 n.a. 25,546 n.a. 1,488 n.a. 484 n.a. 111111133333336666666 NNNNNNNuuuuuuummmmmmmbbbbbbbeeeeeeerrrrrrr ooooooofffffff rrrrrrreeeeeeepppppppooooooorrrrrrrtttttttsssssss fffffffiiiiiiillllllleeeeeeeddddddd6666666 324 0 170 0 63 0 25 0 1. Data are aggregates of categories reported on the quarterly form FFIEC 002, "Report of either because the item is not an eligible IBF asset or liability or because that level of detail is Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks." The form was first not reported for IBFs. From December 1981 through September 1985, IBF data were used for reporting data as of June 30, 1980, and was revised as of December 31, 1985. From included in all applicable items reported. November 1972 through May 1980, U.S. branches and agencies of foreign banks had filed a 4. Total assets and total liabilities include net balances, if any, due from or owed to related monthly FR 886a report. Aggregate data from that report were available through the Federal banking institutions in the United States and in foreign countries (see note 5). On the former Reserve monthly statistical release G. 11, last issued on July 10, 1980. Data in this table and in monthly branch and agency report, available through the G. 11 monthly statistica lrelease, the G. 11 tables are not strictly comparable because of differences in reporting panels and in gross balances were included in total assets and total liabilities. Therefore, total asset and total definitions of balance sheet items. liability figures in this table are not comparable to those in the G.l 1 tables. 2. Includes the District of Columbia. 5. Related depository institutions includes the foreign head office and other U.S. and 3. Effective December 1981, the Federal Reserve Board amended Regulations D and Q to foreign branches and agencies of a bank, a bank's parent holding company, and majoritypermit banking offices located in the United States to operate international banking facilities owned banking subsidiaries of the bank and of its parent holding company (including (IBFs). Since December 31, 1985, data for IBFs have been reported in a separate column. subsidiaries owned both directly and indirectly). These data are either included in or excluded from the total columns as indicated in the 6. In some cases, two or more offices of a foreign bank within the same metropolitan area headings. The notation "n.a." indicates that no IBF data have been reported for that item, file a consolidated report. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

76 Federal Reserve Bulletin • February 2002 Index to Statistical Tables References are to pages A3-A75, 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, 64-65 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 banks, U.S. branches and agencies, 73-5 Treasury operating balance, 25 Foreign-related institutions, 20 Federal Financing Bank, 30 Automobiles Federal funds, 23, 25 Consumer credit, 36 Federal Home Loan Banks, 30 Production, 44, 45 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, 73-5 (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 Federally sponsored credit agencies, 30 CAPACITY utilization, 43 Finance companies Capital accounts Assets and liabilities, 32 Commercial banks, 15-21, 64-65 Business credit, 33 Federal Reserve Banks, 10 Loans, 36 Certificates of deposit, 23 Paper, 22, 23 Commercial and industrial loans Float, 5 Commercial banks, 15-21, 64-65, 66-71 W|ekly reporting banks, 17, 18 Flow of funds, 37-41 Commercial banks Foreign banks, U.S. branches and agencies, 73-5 Assets and liabilities, 15-21, 64-65 Foreign currency operations, 10 Commercial and industrial loans, 15-21, 64-65, 66-71 Foreign deposits in U.S. banks, 5 Consumer loans held, by type and terms, 36, 66-71 Foreign exchange rates, 62 Real estate mortgages held, by holder and property, 35 Foreign-related institutions, 20 Terms of lending, 64-65 Foreign trade, 51 Time and savings deposits, 4 Foreigners Commercial paper, 22, 23, 32 Claims on, 52, 55-7, 59 Condition statements (See Assets and liabilities) Liabilities to, 51^4, 58, 60, 61 Construction, 42, 46 Consumer credit, 36 GOLD Consumer prices, 42 Certificate account, 10 Consumption expenditures, 48, 49 Stock, 5, 51 Corporations Government National Mortgage Association, 30, 34, 35 Profits and their distribution, 32 Gross domestic product, 48, 49 Security issues, 31, 61 Cost of living (See Consumer prices) HOUSING, new and existing units, 46 Credit unions, 36 Currency in circulation, 5, 13 INCOME, personal and national, 42, 48, 49 Customer credit, stock market, 24 Industrial production, 42, 44 Insurance companies, 27, 35 DEBT (See specific types of debt or securities) Interest rates Demand deposits, 15-21 Bonds, 23 Depository institutions Commercial banks, 66-71 Reserve requirements, 8 Consumer credit, 36 Reserves and related items, 4-6, 12, 64-65 Federal Reserve Banks, 7 Deposits (See also specific types) Money and capital markets, 23 Commercial banks, 4, 15-21, 64-65 Mortgages, 34 Federal Reserve Banks, 5, 10 Prime rate, 22, 66-71 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, 66-71 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

77 Loans (See also specific types) Savings deposits (See Time and savings deposits) Commercial banks, 15-21, 64-65, 66-71 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 Foreign banks, U.S. branches and agencies, 73-5 Foreign transactions, 60 Insured or guaranteed by United States, 34, 35 New issues, 31 Prices, 24 MANUFACTURING Special drawing rights, 5, 10, 50, 51 Capacity utilization, 43 State and local governments Production, 43, 45 Holdings of U.S. government securities, 27 Margin requirements, 24 New security issues, 31 Member banks, reserve requirements, 8 Rates on securities, 23 Mining production, 45 Stock market, selected statistics, 24 Mobile homes shipped, 46 Stocks (See also Securities) Monetary and credit aggregates, 4, 12 New issues, 31 Money and capital market rates, 23 Prices, 24 Money stock measures and components, 4, 13 Mortgages (See Real estate loans) Student Loan Marketing Association, 30 Mutual funds, 13, 32 Mutual savings banks (See Thrift institutions) TAX receipts, federal, 26 Thrift institutions, 4 (See also Credit unions and Savings NATIONAL defense outlays, 26 institutions) National income, 48 Time and savings deposits, 4, 13, 15-21, 64-65 Trade, foreign, 51 OPEN market transactions, 9 Treasury cash, Treasury currency, 5 Treasury deposits, 5, 10, 25 PERSONAL income, 49 Treasury operating balance, 25 Prices UNEMPLOYMENT, 42 Consumer and producer, 42, 47 U.S. government balances Stock market, 24 Commercial bank holdings, 15-21 Prime rate, 22, 66-71 Treasury deposits at Reserve Banks, 5, 10, 25 Producer prices, 42, 47 U.S. government securities Production, 42, 44 Bank holdings, 15-21, 27 Profits, corporate, 32 Dealer transactions, positions, and financing, 29 Federal Reserve Bank holdings, 5, 10, 11, 27 REAL estate loans Foreign and international holdings and transactions, 10, 27, 61 Banks, 15-21, 35 Open market transactions, 9 Terms, yields, and activity, 34 Outstanding, by type and holder, 27, 28 Type and holder and property mortgaged, 35 Rates, 23 Reserve requirements, 8 U.S. international transactions, 50-62 Reserves Utilities, production, 45 Commercial banks, 15-21 Depository institutions, 4-6, 12 VETERANS Affairs, Department of, 34, 35 Federal Reserve Banks, 10 U.S. reserve assets, 51 WEEKLY reporting banks, 17, 18 Residential mortgage loans, 34, 35 Wholesale (producer) prices, 42, 47 Retail credit and retail sales, 36, 42 YIELDS (See Interest rates) SAVING Flow of funds, 37-41 National income accounts, 48 Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

78 Federal Reserve Bulletin • February 2002 Federal Reserve Board of Governors and Official Staff ALAN GREENSPAN, Chairman EDWARD M. GRAMLICH ROGER W. FERGUSON, JR., Vice Chairman SUSAN SCHMIDT BIES OFFICE OF BOARD MEMBERS DIVISION OF BANKING SUPERVISION DONALD J. WINN, Director AND REGULATION—Continued LYNN S. FOX, Assistant to the Board DAVID M. WRIGHT, Assistant Director MICHELLE A. SMITH, Assistant to the Board WILLIAM C. SCHNEIDER, JR., Project Director, DONALD L. KOHN, Adviser to the Board National Information Center WINTHROP P. HAMBLEY, Deputy Congressional Liaison NORMAND R. V. BERNARD, Special Assistant to the Board DIVISION OF INTERNATIONAL FINANCE JOHN LOPEZ, Special Assistant to the Board KAREN H. JOHNSON, Director R B D O O A B S V A I S D N T N W A A H . L S P Y K IA I M D N M O A O L O T R R O E E , , - C S S A p p M e e c E c i R i a a O l l N A A , s s S s s i p i s s e t t a c a n i n a t t l t t A o o s t s t h h i e s e t B a B n o o t a a t r r o d d t he Board D T D H A A O V LE M ID A W H S . . A H H . E O C N W O D A N E R N R D S O , O R D N S, , e A p A u s s s t s y o o c D c ia i i a r te t e e c D t D o ir r ir e e c c to to r r LEGAL DIVISION RICHARD T. FREEMAN, Deputy Associate Director WILLIAM L. HELKIE, Deputy Associate Director J. VIRGIL MATTINGLY, JR., General Counsel STEVEN B. KAMIN, Deputy Associate Director SCOTT G. ALVAREZ, Associate General Counsel JON W. FAUST, Assistant Director RICHARD M. ASHTON, Associate General Counsel JOSEPH E. GAGNON, Assistant Director KATHLEEN M. O'DAY, Associate General Counsel MICHAEL P. LEAHY, Assistant Director STEPHANIE MARTIN, Assistant General Counsel D. NATHAN SHEETS, Assistant Director ANN E. MISBACK, Assistant General Counsel RALPH W. TRYON, Assistant Director STEPHEN L. SICILIANO, Assistant General Counsel KATHERINE H. WHEATLEY, Assistant General Counsel DIVISION OF RESEARCH AND STATISTICS CARY K. WILLIAMS, Assistant General Counsel DAVID J. STOCKTON, Director OFFICE OF THE SECRETARY EDWARD C. ETTIN, Deputy Director JENNIFER J. JOHNSON, Secretary DAVID W. WILCOX, Deputy Director ROBERT DEV. FRIERSON, Deputy Secretary MYRON L. KWAST, Associate Director MARGARET M. SHANKS, Assistant Secretary STEPHEN D. OLINER, Associate Director SHARON L. MOWRY, Visiting Assistant Secretary PATRICK M. PARKINSON, Associate Director LAWRENCE SLIFMAN, Associate Director DIVISION OF BANKING SUPERVISION CHARLES S. STRUCKMEYER, Associate Director AND REGULATION MARTHA S. SCANLON, Deputy Associate Director RICHARD SPILLENKOTHEN, Director JOYCE K. ZICKLER, Deputy Associate Director STEPHEN C. SCHEMERING, Deputy Director J. NELLIE LIANG, Assistant Director HERBERT A. BIERN, Senior Associate Director S. WAYNE PASSMORE, Assistant Director ROGER T. COLE, Senior Associate Director DAVID L. REIFSCHNEIDER, Assistant Director WILLIAM A. RYBACK, Senior Associate Director JANICE SHACK-MARQUEZ, Assistant Director GERALD A. EDWARDS, JR., Associate Director WILLIAM L. WASCHER, Assistant Director STEPHEN M. HOFFMAN, JR., Associate Director ALICE PATRICIA WHITE, Assistant Director JAMES V. HOUPT, Associate Director GLENN B. CANNER, Senior Adviser JACK P. JENNINGS, Associate Director DAVID S. JONES, Senior Adviser MICHAEL G. MARTINSON, Associate Director THOMAS D. SIMPSON, Senior Adviser MOLLY S. WASSOM, Associate Director HOWARD A. AMER, Deputy Associate Director DIVISION OF MONETARY AFFAIRS NORAH M. BARGER, Deputy Associate Director VINCENT R. REINHART, Director BETSY CROSS, Deputy Associate Director DAVID E. LINDSEY, Deputy Director DEBORAH P. BAILEY, Assistant Director BRIAN F. MADIGAN, Deputy Director BARBARA J. BOUCHARD, Assistant Director WILLIAM C. WHITESELL, Deputy Associate Director ANGELA DESMOND, Assistant Director JAMES A. CLOUSE, Assistant Director JAMES A. EMBERSIT, Assistant Director WILLIAM B. ENGLISH, Assistant Director C H H EI A D R I L W ES I L H L . M H A O N L N M , R A IC s H s A is R ta D n S, t A D s i s r i e s c ta to n r t Director RICHARD D. PORTER, Senior Adviser WILLIAM G. SPANIEL, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

79 MARK W. OLSON 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 JOSEPH H. HAYES, JR., Assistant Director IRENE SHAWN MCNULTY, Assistant Director EDGAR A. MARTINDALE III, Assistant Director MARSHA W. REIDHILL, Assistant Director OFFICE OF JEFF J. STEHM, Assistant Director STAFF DIRECTOR FOR MANAGEMENT JACK K. WALTON, Assistant Director STEPHEN R. MALPHRUS, Staff Director OFFICE OF THE INSPECTOR GENERAL SHEILA CLARK, EEO Programs Director BARRY R. SNYDER, Inspector General MANAGEMENT DIVISION DONALD L. ROBINSON, Deputy Inspector General WILLIAM R. JONES, Director STEPHEN J. CLARK, Associate Director DARRELL R. PAULEY, Associate Director DAVID L. WILLIAMS, Associate Director CHRISTINE M. FIELDS, Assistant Director DIVISION OF INFORMATION TECHNOLOGY RICHARD C. STEVENS, Director MARIANNE M. EMERSON, Deputy Director MAUREEN T. HANNAN, Associate Director TILLENA G. CLARK, Assistant Director GEARY L. CUNNINGHAM, Assistant Director WAYNE A. EDMONDSON, Assistant Director Po KYUNG KIM, Assistant Director SUSAN F. MARYCZ, Assistant Director DAY W. RADEBAUGH, JR., Assistant Director ROBERT F. TAYLOR, Assistant Director Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

80 Federal Reserve Bulletin • February 2002 Federal Open Market Committee and Advisory Councils FEDERAL OPEN MARKET COMMITTEE MEMBERS ALAN GREENSPAN, Chairman WILLIAM J. MCDONOUGH, Vice Chairman SUSAN SCHMIDT BIES JERRY L. JORDAN MARK W. OLSON ROGER W. FERGUSON, JR. ROBERT D. MCTEER, JR. ANTHONY M. SANTOMERO EDWARD M. GRAMLICH LAURENCE H. MEYER GARY H. STERN ALTERNATE MEMBERS J. ALFRED BROADDUS, JR. MICHAEL H. MOSKOW JAMIE B. STEWART, JR. JACK GUYNN ROBERT T. PARRY 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 W. WILCOX, Associate Economist DINO KOS, Manager, System Open Market Account FEDERAL ADVISORY COUNCIL DAVID A. SPINA, First District ALAN G. MCNALLY, Seventh District DAVID A. COULTER, Second District DAVID W. KEMPER, Eighth District RUFUS A. FULTON, JR., 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

81 CONSUMER ADVISORY COUNCIL DOROTHY BROADMAN, Falls Church, Virginia, Chairman RONALD A. REITER, 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 MANUEL CASANOVA, JR., Brownsville, Texas JEREMY NOWAK, Philadelphia, Pennsylvania CONSTANCE K. CHAMBERLIN, Richmond, Virginia ELIZABETH RENUART, Boston, Massachusetts ROBERT M. CHEADLE, Ada, Oklahoma RUSSELL W. SCHRADER, San Francisco, California LESTER W. FIRSTENBERGER, Hopkinton, Massachusetts FRANK TORRES, JR., Washington, District of Columbia EARL JAROLIMEK, Fargo, North Dakota THRIFT INSTITUTIONS ADVISORY COUNCIL MARK H. WRIGHT, San Antonio, Texas, President KAREN L. MCCORMICK, Port Angeles, Washington, Vice President JOHN B. DICUS, Topeka, Kansas KEVIN E. PIETRINI, Virginia, Minnesota RONALD S. ELIASON, Provo, Utah HERBERT M. SANDLER, Oakland, California D. R. GRIMES, Alpharetta, Georgia WILLIAM J. SMALL, Defiance, Ohio JAMES F. MCKENNA, Brookfield, Wisconsin EVERETT STILES, Franklin, North Carolina CHARLES C. PEARSON, JR., Harrisburg, Pennsylvania DAVID L. VIGREN, Rochester, New York Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

82 Federal Reserve Bulletin • February 2002 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

83 STAFF STUDIES: Only Summaries Printed in the 167. A SUMMARY OF MERGER PERFORMANCE STUDIES IN BANK- BULLETIN ING, 1980-93, AND AN ASSESSMENT OF THE "OPERATING Studies and papers on economic and financial subjects that are of PERFORMANCE" AND "EVENT STUDY" METHODOLOGIES, by Stephen A. Rhoades. July 1994. 37 pp. general interest. Staff Studies 1-158, 161, 163, 165, 166, 168, and 169 are out of print, but photocopies of them are available. Staff 170. THE COST OF IMPLEMENTING CONSUMER FINANCIAL REGU- Studies 165-174 are available on line at www.federalreserve.gov/ LATIONS: AN ANALYSIS OF EXPERIENCE WITH THE TRUTH pubs/staffstudies. Requests to obtain single copies of any paper or IN SAVINGS ACT, by Gregory Elliehausen and Barbara R. Lowrey. December 1997. 17 pp. to be added to the mailing list for the series may be sent to Publications Services. 171. THE COST OF BANK REGULATION: A REVIEW OF THE EVI- 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

84 Federal Reserve Bulletin • February 2002 Maps of the Federal Reserve System 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

85 1-A ^ 2-B 3-C 4-D Pittsburgh % / VMTCINNATI Buffalo / f WNj Y DE » F ^ ^ RI BOSTON NEW YORK PHILADELPHIA CLEVELAND RICHMOND 7-G 8-H 6-F WMFFLM JL KY JFLB^R^Psville TN HT ^Memphis •H New Orleans •H ATLANTA CHICAGO ST. LOUIS MINNEAPOLIS 10-J _ 1122--LL % KJ ^NSAS CITY 11-K ^ ' T' HHAAWWAAIIII ^^ DALLAS SSAANN FFRRAANNCCIISSCCOO Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

86 Federal Reserve Bulletin • February 2002 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 O. Taylor Cathy E. Minehan James J. Norton Paul M. Connolly NEW YORK* 10045 Peter G. Peterson William J. McDonough Gerald M. Levin Jamie B. Stewart, Jr. Buffalo 14240 Patrick P. Lee 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 V. Larkin Martin Lee C. Jones Jacksonville 32231 Marsha G. Rydberg Robert J. Slack1 Miami 33152 Rosa Sugranes James T. Curry III Nashville 37203 Beth Dortch Franklin Melvyn K. Purcell1 New Orleans 70161 R. Glenn Pumpelly Robert J. Musso1 CHICAGO* 60690 Robert J. Darnall Michael H. Moskow W. James Farrell 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 A. Rogers Yarnell, II Robert A. Hopkins Louisville 40232 J. Stephen Barger Thomas A. Boone Memphis 38101 Russell Gwatney Martha Perine Beard MINNEAPOLIS 55480 Ronald N. Zwieg Gary H. Stern Linda Hall Whitman James M. Lyon Helena 59601 Thomas O. Markle Samuel H. Gane KANSAS CITY 64198 Terrence P. Dunn Thomas M. Hoenig Richard H. Bard Richard K. Rasdall Denver 80217 Robert M. Murphy Maryann Hunter1 Oklahoma City 73125 Patricia B. Fennell Dwayne E. Boggs Omaha 68102 Bob L. Gottsch Steven D. Evans DALLAS 75201 H. B. Zachry, Jr. Robert D. McTeer, Jr. Patricia M. Patterson Helen E. Holcomb El Paso 79999 To be announced Sammie C. Clay Houston 77252 Edward O. Gaylord Robert Smith III1 San Antonio 78295 To be announced James L. Stull1 SAN FRANCISCO 94120 Nelson C. Rising Robert T. Parry George M. Scalise John F. Moore Los Angeles 90051 William D. Jones Mark L. Mullinix2 Portland 97208 Nancy Wilgenbusch Richard B. Hornsby Salt Lake City 84125 H. Roger Boyer Andrea P. Wolcott Seattle 98124 Boyd E. Givan 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

87 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

88 Federal Reserve Bulletin • February 2002 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